Regulatory Impact Assessment of the Potential Costs, Benefits, and Other Impacts of the Final Hazardous Waste Generator Improvements Rule

                                 Prepared for
                  U.S. Environmental Protection Agency (EPA)
              Office of Resource Conservation and Recovery (ORCR)
                 1200 Pennsylvania Avenue NW (Mailstop 5305P)
                           Washington DC, 20460 USA

                                      September 2016

ACKNOWLEDGEMENTS
The U.S. Environmental Protection Agency (EPA) recognizes Industrial Economics, Inc. (IEc), for the overall organization and development of this report.  IEc was contracted to perform this work by the Economics and Risk Analysis Staff of EPA's Office of Resource Conservation and Recovery under EPA Contract Number EP-W-12-013.  Chris McMinimy, Laura Stanley, Rachel Horton, and Jim O'Leary provided guidance and review.
TABLE OF CONTENTS
EXECUTIVE SUMMARY

Chapter 1  |  INTRODUCTION
1.1  Overview  1-1
1.2  Background and Need for Regulatory Action  1-1
1.3  Summary of the Final Rule  1-2
1.4  Report Organization  1-5

Chapter 2  |  POTENTIALLY IMPACTED UNIVERSE
2.1  Introduction  2-1
2.2  Universe of Facilities Affected by the Final Rule  2-1
	2.2.1  Estimating the Number of LQGs  2-2
	2.2.2  Estimating the Number of SQGs  2-3
	2.2.3  Estimating the Number of VSQGs  2-4
2.3  Hazardous Waste Generation of Potentially Affected Facilities  2-9
	2.3.1  LQG Hazardous Waste Generation  2-9
	2.3.2  SQG Hazardous Waste Generation  2-16
	2.3.3  VSQG Hazardous Waste Generation  2-17
	2.3.4  Aggregate Generation of Hazardous Waste Among Facilities Potentially Affected by the Rule  2-18
2.4  Management of Hazardous Waste  2-19

Chapter 3  |  ASSESSMENT OF COSTS
3.1  Introduction  3-1
3.2  Estimating Costs as a Range  3-1
3.3  Cost Methodology  3-3
	3.3.1  General Assumptions  3-3
	3.3.2  Re-Notification  3-6
	3.3.3  Labeling/Marketing  3-9
	3.3.4  Closure  3-11
	3.3.5  Emergency Response Preparedness  3-15
	3.3.6  Transfer Facility Requirements  3-19
	3.3.7  BR Requirements  3-22
	3.3.8  BR Requirements for Recycling Facilities  3-23
	3.3.9  Prohibitions on Storage of Restricted Waste for TSDFs  3-24
	3.3.10  Drip Pad and Containment Building Requirements  3-25
	3.3.11  Intra-Organizational Transfers (Voluntary)  3-26
	3.3.12  Episodic Generation (Voluntary)  3-30
	3.3.13  Special Requirements for Ignitable and Reactive Wastes (Voluntary)  3-36
3.4  Results  3-38
3.5  Analytic Limitations  3-45

Chapter 4  |  ASSESSMENT OF BENEFITS
4.1  Introduction  4-1
4.2  Monetized Benefits  4-1
	4.2.1  Drip Pad and Containment Building Requirements for SQGs  4-1
	4.2.2  Intra-organizational Transfers of Hazardous Waste from VSQGs to LQGs  4-5
	4.2.3  Generators that Temporarily Change Generator Status Due to an Episodic Event  4-12
4.3  Non-Quantified Benefits  4-16
	4.3.1  SQG Re-Notification  4-16
     4.3.2  Marking and Labeling of Containers for SQGs and LQGs  4-17
     4.3.3  LQG Closure Conditions  4-17
     4.3.4  Strengthening of the Preparedness, Prevention, and Emergency Response Conditions for LQGs  4-18
     4.3.5  Transfer Facility Requirements  4-18
     4.3.6  Biennial Reporting Requirements  4-18
     4.3.7  Prohibitions on Storage of Restricted Waste  4-18
	4.3.8  Intra-organization Transfers of Hazardous Waste from VSQGs to LQGs (Voluntary)  4-19
	4.3.9  Generators that Temporarily Change Generator Status Due to an Episodic Event (Voluntary) 4-20
	4.3.10 Special Requirements for Ignitable and Reactive Wastes (Voluntary) 4-20

Chapter 5  |  SUMMARY OF REGULATORY BENEFITS and COSTS

Chapter 6  |  EQUITY CONSIDERATIoNS AND OTHER IMPACTS
6.1  Regulatory Planning and Review  6-1
6.2  Regulatory Flexibility  6-2
6.3  Employment Impact Analysis  6-8
6.4  Unfunded Mandates Analysis  6-9
6.5  Federalism Analysis  6-10
6.6  Tribal Governments Analysis  6-10
6.7  Energy Impact Analysis  6-11
6.8  Environmental Justice Analysis  6-11
6.9  Children's Health Protection Analysis  6-12

APPENDIX a  |  DETAILED COST AND BENEFIT IMPACTS BY YEAR

APPENDIX B  |  Summary of 2013 BR Data

EXECUTIVE SUMMARY
This document presents EPA's analysis of the costs, benefits, and economic impacts of the final Hazardous Waste Generator Improvements Rule.  This final rule has the dual purposes of enhancing protection of human health and the environment and improving the efficiency of the hazardous waste generator standards.  EPA is publishing this Regulatory Impact Assessment (RIA) in conjunction with the final rule.  The net benefits of the final rule are summarized in Exhibit ES-1.
exhibit ES-1:  Net Benefits of the proposed rule (annualized over 20 years)
                            REGULATORY REQUIREMENTS
                            3 PERCENT DISCOUNT RATE
                               ($2015, MILLIONS)
                            7 PERCENT DISCOUNT RATE
                               ($2015, MILLIONS)
                               ANNUALIZED COSTS
                             ANNUALIZED BENEFITS
                                 NET BENEFITS
                               ANNUALIZED COSTS
                        ANNUALIZED BENEFITSNET BENEFITS
Mandatory Provisions of the Final Rule
                                  $3.8 - $9.1
                                  $0.9 - $0.9
                               ($2.9)  -  ($8.3)
                                  $4.0 - $8.7
                                  $0.9 - $0.9
                               ($3.1)  -  ($7.9)
Voluntary Provisions of the Final Rule
                                  $1.9 - $4.5
                                 $7.4 - $13.5
                                  $5.5 - $9.0
                                  $1.9 - $4.6
                                 $7.4 - $13.5
                                  $5.5 - $8.9
Mandatory and Voluntary Provisions of the Final Rule Combined
                                 $5.7 - $13.6
                                 $8.3 - $14.3
                                 $2.6  -  $0.7
                                 $5.9 - $13.3
                                 $8.3 - $14.4
                                 $2.4  -  $1.1
Notes:
 Due to limitations in the available data, benefits associated with several provisions of the final rule (mandatory and voluntary) could not be monetized. Net benefits for these provisions are therefore presented as negative. These negative values, however, do not reflect the benefits that EPA was unable to monetize. EPA provides a qualitative discussion of the non-quantified benefits in Chapter 4. In excluding these benefits, the negative values in the exhibits underestimate the net benefits associated with the rule's mandatory and voluntary provisions.
Ranges are presented to reflect the low-end and high-end scenarios described later in this report. Numbers in parentheses indicate a net cost, as opposed to a net benefit.
ES.1 Summary of the Final Rule
EPA is promulgating several changes to the hazardous waste generator regulations.  Specifically, EPA is  (1) revising different components of the hazardous waste regulatory program; (2) addressing gaps in the current regulations; (3) providing greater flexibility for hazardous waste generators to manage their hazardous waste in a cost-effective manner; (4) reorganizing the hazardous waste generator regulations to improve their usability among regulated facilities; and (5) making technical corrections and conforming changes to address inadvertent errors, remove obsolete programs, and improve the readability of the regulations. These specific provisions are summarized below.  While the majority of the requirements are mandatory, three provisions of the rule are intended to provide greater flexibility to certain classes of hazardous waste generators and are thus voluntary.  For a detailed discussion of all the changes to the generator regulations that EPA is promulgating, please refer to the Preamble to the final rule.
 SQG re-notification:  To ensure that regulatory agencies have information on facilities generating hazardous waste, EPA is requiring that SQGs re-notify EPA of their hazardous waste generation activities every four years.  For each re-notification, a facility need only review its previous notification and either make changes if necessary or confirm that the information remains accurate.
 Marking and labeling of containers, tanks, and containment buildings for SQGs and LQGs:  Current regulation requires that SQGs and LQGs label containers and tanks with the words, "Hazardous Waste."  While this wording provides some information regarding a container's contents, it does not indicate the specific hazards associated with these contents or the risks that a waste may pose to human health and the environment.  EPA is therefore requiring that SQGs and LQGs mark containers and tanks with (1) the words "Hazardous Waste" and (2) an indication of the hazards of a container's contents (e.g., the applicable hazardous waste characteristics).  Similarly, EPA is also requiring that SQGs and LQGs mark containment buildings with (1) the words "Hazardous Waste" and (2) an indication of the associated hazards (e.g., the applicable hazardous waste characteristics).
 LQG closure conditions:  EPA is strengthening the closure regulations for LQGs that accumulate hazardous wastes in containers in central accumulation areas (CAAs).  Specifically, EPA is requiring that if the generator cannot demonstrate that any contaminated soils can be practicably removed or decontaminated, then the generator must close the waste accumulation unit(s) and perform post-closure care in accordance with the closure and post-closure care requirements that apply to landfills (§ 265.310).  In addition, for the purposes of closure, post-closure, and financial responsibility, such a waste accumulation unit is then considered to be a landfill, and the generator must meet all of the requirements for landfills specified in subparts G and H of part 265.
Also related to closure, EPA is requiring LQGs to notify EPA or their authorized state within 30 days prior to closure.  EPA is also requiring that such generators subsequently notify within 90 days after closure that they have either clean closed or -- if they cannot clean close -- that they have closed as a landfill.  LQGs must also document in their operating record if they close any waste accumulation units prior to the facility closure.
 Strengthening of the preparedness, prevention, and emergency response conditions for LQGs:  To improve the ability of emergency response teams to respond to an emergency, EPA is requiring any that all new LQGs submit a quick reference guide to their contingency plan to emergency management authorities.  In addition, EPA is requiring any LQG that makes a change to its existing contingency plan to prepare and submit a quick reference guide to emergency responders.
 Transfer facility requirements:  Transporters that store manifested shipments of hazardous waste in containers at a transfer facility for a period of ten days or less are not subject to the regulation under parts 264, 265, 267, 268, and 270.  However, EPA is changing the marking and labeling requirements for transporters using a transfer facility when consolidating the contents of two or more containers with the same hazardous waste into a new container, or when combining and consolidating two different hazardous wastes that are compatible with each other.  In this case, the transporter must label all containers with (1) the words "Hazardous Waste" and (2) the applicable EPA hazardous waste codes.
 Biennial reporting requirements:  EPA is requiring that LQGs report all of the hazardous waste that they generate for the entire reporting year, not just waste for the month(s) during which they were LQGs.  Current regulation at the Federal level is unclear on this issue, and a limited number of states currently require LQGs to report the amount of hazardous waste generated for only those months that they were LQGs.
 Recycling facility reporting requirements:  Under the existing regulations in CFR 261.6, which identifies the requirements for recyclable materials, certain classes of recycling facilities are exempt from the BR reporting requirements so long as they are not required to be permitted as a TSDF.  The final rulemaking adds the BR reporting requirements to CFR 261.6 (c) (2).
 Prohibitions on storage of restricted waste for hazardous waste treatment, storage, and disposal facilities (TSDFs):  Consistent with the marking and labeling requirements for SQGs and LQGs, EPA is requiring that TSDFs mark containers holding hazardous waste with (1) the words "Hazardous Waste" and (2) an indication of the hazards of a container's contents.  Under existing regulations, TSDFs must already mark containers holding hazardous waste with a description of the contents of the container.
 Drip pad and containment building requirements:  Under the existing regulations, EPA has consistently interpreted the requirements for LQGs that accumulate hazardous waste on drip pads or in containment buildings for 90 days or less without a permit or interim status to also apply to SQGs.  Therefore, SQGs that use drip pads or containment buildings must comply with the LQG 90-day accumulation limit (as opposed to the SQG 180-day accumulation limit) as well as the requirements that apply to LQGs for personnel training, development of a full contingency plan, and biennial reporting.  Under the final rule, EPA believes a more effective and efficient approach is to require SQGs that accumulate hazardous waste in containment buildings to comply with the 90-day accumulation limit and SQGs that accumulate hazardous waste on drip pads to comply with the 180-day accumulation limit, but to otherwise comply with the less stringent requirements for SQGs.
 Intra-organization transfers of hazardous waste from VSQGs to LQGs (voluntary):  To afford greater flexibility to VSQGs, EPA is allowing VSQGs to send their hazardous waste voluntarily to an LQG under the control of the same person, provided that both the VSQG(s) and LQG comply with certain conditions.  The VSQG conditions are as follows:
 A participating VSQG must label containers with the words "VSQG Hazardous Waste" and an indication of the hazards of a container's contents.
 VSQGs must comply with all applicable Department of Transportation regulations when sending their hazardous waste to an LQG.
      The conditions for LQGs receiving hazardous waste from one or more VSQGs controlled by the same person include the following:
 LQGs must submit a notification to EPA or their authorized state identifying the names, addresses, and contact information for the VSQGs that will be transferring hazardous waste to the LQG.
 LQGs must maintain records of all hazardous waste received from VSQGs that include the name, address, and contact information for each VSQG, as well as information on the quantity of each waste shipment received.
 LQGs must mark shipments from VSQGs with the date the hazardous waste was received from the VSQG.
 LQGs must manage all incoming VSQG hazardous waste in compliance with the regulations applicable to their LQG status.
 Hazardous waste received from VSQGs must be included in the receiving LQG's BR submissions.
 Generators that temporarily change generator status due to an episodic event (voluntary):  To provide greater flexibility to VSQGs and SQGs that generate much of their hazardous waste on an episodic basis, EPA is allowing a VSQG or an SQG to voluntarily maintain its existing regulatory status in the event of a planned or unplanned episodic event in which the facility generates a quantity of hazardous waste in a calendar month that would otherwise elevate the facility to a more stringent regulatory status.  To take advantage of this provision, an SQG or VSQG is subject to the following conditions:
 Limit of no more than one planned and one unplanned episodic event per calendar year (each lasting no more than 60 days);
 Notify EPA or the authorized state at least 30 calendar days prior to initiating a planned episodic event or within 72 hours after an unplanned episodic event;
 VSQGs must obtain a RCRA ID number;
 Accumulation standards: VSQGs must mark containers with the date the episodic event began; label containers "Episodic Hazardous Waste"; manage hazardous waste in a manner that minimizes the possibility of a fire, explosion, or release of hazardous waste; ensure that tanks are in good condition and compatible with the hazardous waste stored within; and identify an emergency coordinator for the duration of the event.  SQGs must mark the container or tank log book with the date the episodic event began; label the container or write in the tank log book "Episodic Hazardous Waste"; mark the container or write in the tank log book words that indicate the hazards of the contents; and comply with the applicable accumulation conditions in §262, subpart L.
 Hazardous waste generated from the episodic event must be managed on-site or shipped off-site via hazardous waste manifest to a permitted TSDF.  For purposes of analysis, this RIA assumes that VSQGs and SQGs will not seek to obtain a RCRA storage or treatment permit, but will instead ship their hazardous waste off-site to a permitted TSDF.
 Complete and maintain records that include (1) the beginning and end dates of the event, (2) a description of the event, (3) the types and quantities of hazardous wastes generated at the event, (4) a description of how the hazardous waste was managed, and (5) name(s) of hazardous waste transporters that transported the waste to a permitted TSDF.
 Special requirements for ignitable and reactive wastes (voluntary):  Current regulation requires that LQGs must locate containers holding ignitable or reactive waste at least 15 meters from the facility's property line.  In urban environments, LQGs may find it impossible to meet this requirement due to the relatively small footprint of many properties in these areas.  To provide flexibility to LQGs, EPA will allow LQGs to voluntarily apply for a facility-specific waiver from their primary emergency authority if they are unable to meet the hazardous waste accumulation property line requirement.
ES.2 Universe of Facilities Affected by the Final Rule
The final rule may affect a wide range of facility types across a number of industries.  For an individual facility, the cost impact of the final rule will depend, in part, on its generator status under RCRA (i.e., LQG, SQG, or VSQGs).  Based on data from EPA's BR database, the Agency's RCRAInfo database, and a limited number of states, Exhibit ES-2 describes the total number of LQGs, SQGs, and VSQGs by state.  As indicated in the exhibit, EPA estimates that the combined total number of hazardous waste generators is between approximately 424,000 and 677,000.  For the facilities represented in Exhibit ES-2, the impacts of the rule will depend, in part, on the amount of hazardous waste that they generate on an annual basis.  Based on data from the 2013 BR database and select states, Exhibit ES-3 presents the average generation of hazardous waste on a per-facility level for LQGs, SQGs, and VSQGs.  For both the tonnage of hazardous waste generated and number of waste streams generated, the exhibit presents both the median and mean values from the available data.
EXHIBIT ES-2:  UNIVERSE OF FACILITIES POTENTIALLY AFFECTED BY THE Final RULE BY STATE AND GENERATOR STATUS
                                   STATE[A]
                                Number of LQGs
                                      [B]
                                Number of SQGs
                                Number of VSQGs
                          TOTAL NUMBER OF GENERATORS
LOW-END
                                      [C]
                                   High-End
                                      [D]
                                    Low-End
                                      [E]
                                   High-End
                                      [F]
                                    Low-End
                                      [G]
                                   High-End
                                      [H]
Alabama
                                                                             27
                                                                             95
                                                                            148
                                                                            692
                                                                          1,078
                                                                            814
                                                                          1,253
Alaska
                                                                            386
                                                                            625
                                                                            674
                                                                          4,554
                                                                          9,998
                                                                          5,565
                                                                         11,058
Arizona
                                                                            101
                                                                            275
                                                                            275
                                                                          1,383
                                                                          1,383
                                                                          1,759
                                                                          1,759
Arkansas
                                                                            210
                                                                            582
                                                                            860
                                                                          4,241
                                                                          6,267
                                                                          5,033
                                                                          7,337
California
                                                                          2,775
                                                                          7,031
                                                                         11,722
                                                                         51,233
                                                                         85,415
                                                                         61,039
                                                                         99,912
Colorado
                                                                            108
                                                                            428
                                                                            453
                                                                          2,797
                                                                          3,301
                                                                          3,333
                                                                          3,862
Connecticut
                                                                            416
                                                                            726
                                                                          1,026
                                                                          5,290
                                                                         10,775
                                                                          6,432
                                                                         12,217
Delaware
                                                                             36
                                                                             65
                                                                             67
                                                                            474
                                                                            932
                                                                            575
                                                                          1,035
District of Columbia
                                                                             60
                                                                            168
                                                                            214
                                                                          1,224
                                                                          1,559
                                                                          1,452
                                                                          1,833
Florida
                                                                            386
                                                                          3,700
                                                                          3,700
                                                                         16,800
                                                                         16,800
                                                                         20,886
                                                                         20,886
Georgia
                                                                            517
                                                                          1,017
                                                                          1,161
                                                                          7,411
                                                                         13,391
                                                                          8,945
                                                                         15,069
Guam
                                                                              9
                                                                              7
                                                                             13
                                                                             51
                                                                            233
                                                                             67
                                                                            255
Hawaii
                                                                             23
                                                                            138
                                                                            191
                                                                            596
                                                                          1,392
                                                                            757
                                                                          1,606
Idaho
                                                                            144
                                                                            694
                                                                            767
                                                                          3,730
                                                                          5,589
                                                                          4,568
                                                                          6,500
Illinois
                                                                             23
                                                                            101
                                                                            104
                                                                            596
                                                                            758
                                                                            720
                                                                            885
Indiana
                                                                            836
                                                                          3,036
                                                                          4,787
                                                                         21,654
                                                                         34,882
                                                                         25,526
                                                                         40,505
Iowa
                                                                            710
                                                                            966
                                                                            975
                                                                          7,039
                                                                         18,390
                                                                          8,715
                                                                         20,075
Kansas
                                                                            213
                                                                            569
                                                                            572
                                                                          4,146
                                                                          5,517
                                                                          4,928
                                                                          6,302
Kentucky
                                                                            297
                                                                            427
                                                                            427
                                                                          3,111
                                                                          7,693
                                                                          3,835
                                                                          8,417
Louisiana
                                                                            368
                                                                            855
                                                                          1,239
                                                                          6,230
                                                                          9,532
                                                                          7,453
                                                                         11,139
Maine
                                                                            415
                                                                          2,596
                                                                          2,596
                                                                         15,426
                                                                         15,426
                                                                         18,437
                                                                         18,437
Maryland
                                                                            469
                                                                            921
                                                                          1,590
                                                                          6,711
                                                                         12,148
                                                                          8,101
                                                                         14,207
Massachusetts
                                                                             87
                                                                            319
                                                                            319
                                                                          3,804
                                                                          3,804
                                                                          4,210
                                                                          4,210
Michigan
                                                                            493
                                                                          1,856
                                                                          1,991
                                                                         12,770
                                                                         14,508
                                                                         15,119
                                                                         16,992
Minnesota
                                                                            340
                                                                          1,437
                                                                          1,437
                                                                         20,910
                                                                         20,910
                                                                         22,687
                                                                         22,687
Mississippi
                                                                            330
                                                                          1,385
                                                                          1,663
                                                                          8,548
                                                                         12,118
                                                                         10,263
                                                                         14,111
Missouri
                                                                            164
                                                                            252
                                                                            272
                                                                          1,836
                                                                          4,248
                                                                          2,252
                                                                          4,684
Montana
                                                                             62
                                                                             92
                                                                             97
                                                                            670
                                                                          1,606
                                                                            824
                                                                          1,765
Navajo Nation
                                                                            675
                                                                          1,343
                                                                          1,616
                                                                          9,786
                                                                         17,484
                                                                         11,804
                                                                         19,775
Nebraska
                                                                             26
                                                                             77
                                                                             83
                                                                            561
                                                                            673
                                                                            664
                                                                            782
Nevada
                                                                              0
                                                                              3
                                                                              4
                                                                             22
                                                                             29
                                                                             25
                                                                             33
New Hampshire
                                                                             69
                                                                            226
                                                                            296
                                                                          1,647
                                                                          2,157
                                                                          1,942
                                                                          2,522
New Jersey
                                                                            134
                                                                            201
                                                                            201
                                                                          1,940
                                                                          1,940
                                                                          2,275
                                                                          2,275
New Mexico
                                                                            711
                                                                            631
                                                                            631
                                                                          6,859
                                                                          6,859
                                                                          8,201
                                                                          8,201
New York
                                                                             41
                                                                            200
                                                                            250
                                                                          1,062
                                                                          1,822
                                                                          1,303
                                                                          2,113
North Carolina
                                                                              1
                                                                              7
                                                                             10
                                                                             26
                                                                             73
                                                                             34
                                                                             84
North Dakota
                                                                             94
                                                                            233
                                                                            279
                                                                          1,698
                                                                          2,435
                                                                          2,025
                                                                          2,808
Northern Marianas
                                                                          3,095
                                                                          2,998
                                                                          4,063
                                                                         21,846
                                                                         80,167
                                                                         27,939
                                                                         87,325
Ohio
                                                                            975
                                                                          1,978
                                                                          3,082
                                                                         14,413
                                                                         25,255
                                                                         17,366
                                                                         29,312
Oklahoma
                                                                            170
                                                                            382
                                                                            458
                                                                          2,784
                                                                          4,403
                                                                          3,336
                                                                          5,031
Oregon
                                                                            210
                                                                            270
                                                                            271
                                                                          1,967
                                                                          5,439
                                                                          2,447
                                                                          5,920
Pennsylvania
                                                                          1,004
                                                                          2,777
                                                                          4,157
                                                                         20,235
                                                                         30,291
                                                                         24,016
                                                                         35,452
Puerto Rico
                                                                             94
                                                                            134
                                                                            167
                                                                            976
                                                                          2,435
                                                                          1,204
                                                                          2,696
Rhode Island
                                                                            103
                                                                            930
                                                                          1,445
                                                                          2,668
                                                                         10,529
                                                                          3,701
                                                                         12,077
South Carolina
                                                                            386
                                                                            636
                                                                            648
                                                                          4,634
                                                                          9,998
                                                                          5,656
                                                                         11,032
South Dakota
                                                                             31
                                                                            151
                                                                            246
                                                                            803
                                                                          1,793
                                                                            985
                                                                          2,070
Tennessee
                                                                            363
                                                                            638
                                                                            677
                                                                          4,649
                                                                          9,402
                                                                          5,650
                                                                         10,442
Texas
                                                                              0
                                                                              2
                                                                              2
                                                                             15
                                                                             15
                                                                             17
                                                                             17
Trust Territories
                                                                            970
                                                                          1,836
                                                                          2,041
                                                                         13,378
                                                                         25,125
                                                                         16,184
                                                                         28,136
Utah
                                                                            127
                                                                            226
                                                                            247
                                                                          1,647
                                                                          3,290
                                                                          2,000
                                                                          3,664
Vermont
                                                                            397
                                                                          1,312
                                                                          1,671
                                                                          9,560
                                                                         12,176
                                                                         11,269
                                                                         14,244
Virgin Islands
                                                                              1
                                                                              6
                                                                             13
                                                                             26
                                                                             95
                                                                             33
                                                                            109
Virginia
                                                                             43
                                                                            175
                                                                            233
                                                                          1,114
                                                                          1,698
                                                                          1,332
                                                                          1,974
Washington
                                                                            456
                                                                            617
                                                                            617
                                                                          1,541
                                                                          1,541
                                                                          2,614
                                                                          2,614
West Virginia
                                                                            424
                                                                          1,080
                                                                          1,080
                                                                         10,442
                                                                         10,442
                                                                         11,946
                                                                         11,946
Wisconsin
                                                                            144
                                                                            363
                                                                            364
                                                                          2,645
                                                                          3,730
                                                                          3,152
                                                                          4,238
Wyoming
                                                                             22
                                                                             92
                                                                            118
                                                                            570
                                                                            860
                                                                            684
                                                                          1,000
TOTAL
                                                                         20,771
                                                                         49,887
                                                                         64,310
                                                                        353,441
                                                                        591,809
                                                                        424,099
                                                                        676,890

EXHIBIT ES-3:  PER FACILITY GENERATION OF HAZARDOUS WASTE, BY FACILITY TYPE
                                GENERATOR TYPE
                 HAZARDOUS WASTE GENERATED PER FACILITY (TONS)
                 AVERAGE NUMBER OF WASTE STREAMS PER FACILITY
LQG
                           Median: 7.6
Mean: 1,692.3
                              Median: 6
Mean: 13
SQG
                                 Median: 1.32
                                  Mean: 2.19
                                   Median: 6
                                    Mean: 7
VSQG
                           Median: 0.13
Mean: 0.25
                                   Median: 5
                                    Mean: 6
Sources:
LQG estimates derived from the 2013 Biennial Report (BR) database.  SQG estimates reflect data from the States of Maine and Washington, as well as the limited SQG-specific data included in the 2013 BR database.  VSQG estimates are based on data from Maine, New Jersey, and Washington, as well as data from the 2013 BR database.

Exhibit ES-4 reports the aggregate hazardous waste generation of facilities potentially affected by the rulemaking.  In total, this RIA estimates that between approximately 424,000 and 677,000 facilities may be affected by the final rule.  Due to uncertainty regarding the hazardous waste generation of SQGs and VSQGs, this RIA bounds these generation quantities using the median and mean values reported above.  Using this approach, facilities in the affected universe, in aggregate, generate between 35.2 and 35.4 million tons of hazardous waste per year.  While there is uncertainty about the actual number of SQG and VSQG facilities as well as their hazardous waste generation, the vast majority of hazardous waste (approximately 99 percent) is generated by LQGs.  Therefore, in terms of volume, the difference between the low-end and high-end scenarios contemplated in this RIA is approximately 178,000 tons of hazardous waste or less than 1 percent of all hazardous waste managed by facilities in the affected universe.
ES.3 Assessment of Costs
To assess the costs of the final rule, this RIA estimates the unit costs (e.g., disposal cost per ton of waste) associated with each provision of the rule and applies these values to the number of facilities affected by each rule provision.  To address uncertainty regarding the number of facilities in the regulated universe, the amount of hazardous waste that they generate, and several of the cost-related inputs used in the analysis, this RIA presents both low-end and high-end estimates of the costs associated with the final rule.  The low-end cost estimates reflect low-end estimates of (1) the number of facilities in the regulated universe, (2) the number of waste streams per facility, and (3) the annual generation of hazardous waste among regulated facilities.  The low-end estimates also reflect the low-end assumptions regarding any cost-related inputs for which a range of data inputs were available, such as the number of labor hours required for compliance activities.  Similarly, the high-end cost estimates developed in this RIA reflect the high-end estimates for these variables.
Exhibit ES-5 reports the total annualized costs of the final rule by provision for both the mandatory and voluntary provisions of the rule.  These costs are reported using discount rates of both 3 percent and 7 percent.  As the exhibit shows, the most significant costs under the mandatory requirements of the final rule are associated with the marking/labeling requirements.  Among the voluntary provisions, the estimated costs are highest for the intra-organizational transfer provision.
Exhibit ES-6 presents the distribution of the total costs of the rule across the three RCRA generator categories (i.e., LQGs, SQGs, and VSQGs) for the mandatory and voluntary provisions combined using discount rates of 3 percent and 7 percent.  On a per-facility basis, the average annualized incremental costs of the rule are between $2 and $3 for VSQGs, between $57 and $94 for SQGs, and between $119 and $268 for LQGs (using a 7 percent discount rate).  While all generators are subject to the final rule, only a subset will incur costs for a given rule provision.  Therefore, the average costs reported may not be reflective of the actual costs that an individual facility may experience.

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

                            NUMBER OF FACILITIES[B]
                   TOTAL HAZARDOUS WASTE GENERATED(TONS)[C]
                            NUMBER OF FACILITIES[D]
                   TOTAL HAZARDOUS WASTE GENERATED(TONS)[E]
                            NUMBER OF FACILITIES[F]
                   TOTAL HAZARDOUS WASTE GENERATED(TONS)[G]
                            NUMBER OF FACILITIES[H]
                   TOTAL HAZARDOUS WASTE GENERATED(TONS)[I]
Low-end Estimate
                                    20,771
                                  35,151,000
                                    49,887
                                    66,000
                                    353,441
                                    46,000
                                    424,099
                                  35,263,000
High-end Estimate

                                    64,310
                                    141,000
                                    591,809
                                    148,000
                                    676,890
                                  35,441,000
Notes:
 For SQGs, the low-end estimate assumes each facility generates, on average, approximately 1.32 tons/year of hazardous waste. The high-end estimate assumes that SQGs generate, on average, approximately 2.19 tons/year of hazardous waste.
 For VSQGs, the low-end estimate assumes each facility generates, on average, approximately 0.13 tons/year of hazardous waste. The high-end estimate assumes that VSQGs generate, on average, approximately 0.25 tons/year of hazardous waste.

EXHIBIT ES-5:  TOTAL ANNUALIZED COSTS OF THE FINAL RULE BY REQUIREMENT ($2015 ANNUALIZED OVER 20 YEARS)
                                  REQUIREMENT
                              LOW IMPACT SCENARIO
                             HIGH IMPACT SCENARIO

                        ANNUALIZED COSTS(UNDISCOUNTED)
                  ANNUALIZED COSTS(USING A 3% DISCOUNT RATE)
                  ANNUALIZED COSTS(USING A 7% DISCOUNT RATE)
                        ANNUALIZED COSTS(UNDISCOUNTED)
                  ANNUALIZED COSTS(USING A 3% DISCOUNT RATE)
                  ANNUALIZED COSTS(USING A 7% DISCOUNT RATE)
MANDATORY PROVISIONS OF THE FINAL RULE
Re-notification
                                                                       $459,000
                                                                       $480,000
                                                                       $507,000
                                                                       $594,000
                                                                       $621,000
                                                                       $656,000
Labeling
                                                                     $2,640,000
                                                                     $2,750,000
                                                                     $2,920,000
                                                                     $5,340,000
                                                                     $5,450,000
                                                                     $5,610,000
Closure
                                                                        $44,500
                                                                        $44,500
                                                                        $44,500
                                                                     $3,200,000
                                                                     $2,330,000
                                                                     $1,710,000
Emergency Response Preparedness
                                                                       $471,000
                                                                       $475,000
                                                                       $481,000
                                                                       $661,000
                                                                       $666,000
                                                                       $672,000
Transfer Facility
                                                                         $4,470
                                                                         $4,470
                                                                         $4,470
                                                                         $8,280
                                                                         $8,280
                                                                         $8,280
BR Requirements
                                                                         $7,000
                                                                         $7,100
                                                                         $7,240
                                                                        $68,800
                                                                        $69,800
                                                                        $71,100
Recycling
                                                                         $2,060
                                                                         $2,090
                                                                         $2,130
                                                                         $5,590
                                                                         $5,670
                                                                         $5,780
Prohibitions on Storage
                                                                             $0
                                                                             $0
                                                                             $0
                                                                             $0
                                                                             $0
                                                                             $0
Drip Pads and Containment Buildings
                                                                             $0
                                                                             $0
                                                                             $0
                                                                             $0
                                                                             $0
                                                                             $0
SUB-TOTAL: Mandatory Rule Provisions
                                                                     $3,630,000
                                                                     $3,760,000
                                                                     $3,960,000
                                                                     $9,870,000
                                                                     $9,150,000
                                                                     $8,740,000
VOLUNTARY PROVISIONS OF THE FINAL RULE
Intra-organizational Transfers
                                                                     $1,610,000
                                                                     $1,640,000
                                                                     $1,680,000
                                                                     $2,930,000
                                                                     $2,980,000
                                                                     $3,050,000
Episodic Generation
                                                                       $260,000
                                                                       $260,000
                                                                       $260,000
                                                                     $1,390,000
                                                                     $1,390,000
                                                                     $1,390,000
Ignitable and Reactive Waste
                                                                            $50
                                                                            $60
                                                                            $60
                                                                        $97,000
                                                                       $105,000
                                                                       $118,000
SUB-TOTAL: Voluntary Rule Provisions
                                                                     $1,870,000
                                                                     $1,900,000
                                                                     $1,940,000
                                                                     $4,420,000
                                                                     $4,480,000
                                                                     $4,560,000
MANDATORY AND VOLUNTARY PROVISIONS OF THE FINAL RULE COMBINED
TOTAL: Mandatory and Voluntary Provisions Combined
                                                                     $5,500,000
                                                                     $5,660,000
                                                                     $5,900,000
                                                                    $14,300,000
                                                                    $13,600,000
                                                                    $13,300,000
Notes:
All cost estimates are rounded to three significant digits and may not sum due to rounding.
EXHIBIT ES-6:  TOTAL ANNUALIZED COSTS OF THE FINAL RULE BY GENERATOR STATUS ($2015 ANNUALIZED OVER 20 YEARS)
                               GENERATOR STATUS
                              LOW IMPACT SCENARIO
                             HIGH IMPACT SCENARIO
                         NUMBER OF AFFECTED FACILITIES
                        ANNUALIZED COSTS(UNDISCOUNTED)
                  ANNUALIZED COSTS(USING A 3% DISCOUNT RATE)
                  ANNUALIZED COSTS(USING A 7% DISCOUNT RATE)
                         NUMBER OF AFFECTED FACILITIES
                        ANNUALIZED COSTS(UNDISCOUNTED)
                  ANNUALIZED COSTS(USING A 3% DISCOUNT RATE)
                  ANNUALIZED COSTS(USING A 7% DISCOUNT RATE)
MANDATORY PROVISIONS OF THE FINAL RULE
LQG
                                                                         20,771
                                                                       $872,000
                                                                       $983,000
                                                                     $1,150,000
                                                                         20,771
                                                                     $4,280,000
                                                                     $3,520,000
                                                                     $1,150,000
SQG
                                                                         49,887
                                                                     $2,760,000
                                                                     $2,780,000
                                                                     $2,810,000
                                                                         64,310
                                                                     $5,590,000
                                                                     $5,620,000
                                                                     $5,660,000
VSQG
                                                                        353,441
                                                                           $370
                                                                           $370
                                                                           $380
                                                                        591,809
                                                                         $2,540
                                                                         $2,580
                                                                         $2,630
Recycling Facility
                                                                             10
                                                                         $2,060
                                                                         $2,090
                                                                         $2,130
                                                                             20
                                                                         $5,590
                                                                         $5,670
                                                                         $5,780
SUB-TOTAL
                                                                        424,109
                                                                     $3,630,000
                                                                     $3,760,000
                                                                     $3,960,000
                                                                        676,910
                                                                     $9,870,000
                                                                     $9,150,000
                                                                     $8,740,000
VOLUNTARY PROVISIONS OF THE FINAL RULE
LQG
                                                                         20,771
                                                                     $1,250,000
                                                                     $1,280,000
                                                                     $1,320,000
                                                                         20,771
                                                                     $2,350,000
                                                                     $2,410,000
                                                                     $2,500,000
SQG
                                                                         49,887
                                                                        $36,100
                                                                        $36,100
                                                                        $36,100
                                                                         64,310
                                                                       $403,000
                                                                       $403,000
                                                                       $403,000
VSQG
                                                                        353,441
                                                                       $585,000
                                                                       $585,000
                                                                       $585,000
                                                                        591,809
                                                                     $1,660,000
                                                                     $1,660,000
                                                                     $1,660,000
Recycling Facility
                                                                             10
                                                                             $0
                                                                             $0
                                                                             $0
                                                                             20
                                                                             $0
                                                                             $0
                                                                             $0
SUB-TOTAL
                                                                        424,109
                                                                     $1,870,000
                                                                     $1,900,000
                                                                     $1,940,000
                                                                        676,910
                                                                     $4,420,000
                                                                     $4,480,000
                                                                     $4,560,000
MANDATORY AND VOLUNTARY PROVISIONS OF THE FINAL RULE COMBINED
LQG
                                                                         20,771
                                                                     $2,120,000
                                                                     $2,260,000
                                                                     $2,470,000
                                                                         20,771
                                                                     $6,630,000
                                                                     $5,930,000
                                                                     $5,570,000
SQG
                                                                         49,887
                                                                     $2,790,000
                                                                     $2,820,000
                                                                     $2,850,000
                                                                         64,310
                                                                     $5,990,000
                                                                     $6,020,000
                                                                     $6,060,000
VSQG
                                                                        353,441
                                                                       $586,000
                                                                       $586,000
                                                                       $586,000
                                                                        591,809
                                                                     $1,660,000
                                                                     $1,660,000
                                                                     $1,660,000
Recycling Facility
                                                                             10
                                                                         $2,060
                                                                         $2,090
                                                                         $2,130
                                                                             20
                                                                         $5,590
                                                                         $5,670
                                                                         $5,780
TOTAL
                                                                        424,109
                                                                     $5,500,000
                                                                     $5,660,000
                                                                     $5,900,000
                                                                        676,910
                                                                    $14,300,000
                                                                    $13,600,000
                                                                    $13,300,000
Notes:
All annualized cost estimates are rounded to three significant digits and may not sum due to rounding.
     ES.4 Assessment of Benefits
The final Hazardous Waste Generator Improvements Rule may yield a variety of benefits as generators change several of their waste management practices to comply with the final rule requirements.  These benefits reflect the rule's focus on enhancing protection of human health and the environment and improving the efficiency of the RCRA hazardous waste generator standards.  Ideally, this RIA would quantify and monetize each of the rule's benefits.  However, only some categories of benefits are quantifiable.  For the majority of benefits, sufficient data are not available to support a detailed quantitative analysis.  For example, quantifying benefits associated with improved emergency response due to more detailed container labeling would require data on the annual number of emergencies at generator sites, the current risks associated with these incidents, the extent to which more detailed labeling would affect the procedures of emergency responders, and the reduction in risk associated with these changes.  Detailed data on these items are not readily available.
For those benefit categories for which detailed data are available, this RIA quantifies and monetizes benefits.  In instances where quantitative data are not available, this RIA provides a qualitative characterization of benefits.
ES.4.1 Monetized Benefits
The available data support the monetization of benefits for one mandatory provision (drip pad and containment building requirements for SQGs) and two voluntary provisions of the final rule (the intra-organizational consolidation of VSQG waste at an LQG and the flexibility afforded SQGs and VSQGs that cross the threshold to a more stringent regulatory status due to episodic generation events).  The benefits associated with each of these provisions are as follows:
Drip Pad and Containment Building Requirements for SQGs:  Under existing regulations, SQGs that accumulate hazardous waste on drip pads or in containment buildings for 90 days or less without a permit or interim status must comply with all of the LQG conditions associated with the accumulation of hazardous waste or else obtain a Part B permit for their drip pads or containment buildings.  The additional flexibility afforded SQGs to comply with the LQG 90-day accumulation limit for hazardous waste accumulated in containment buildings (as opposed to the SQG 180-day accumulation limit) and the 180-day accumulation limit for hazardous waste accumulated on drip pads, but to otherwise comply with the less stringent requirements for SQGs, will result in a cost savings associated with no longer being subject to the LQG requirements for personnel training, emergency response preparedness, and biennial reporting.
Intra-organizational Transfers:  Allowing VSQGs to send their hazardous waste to an LQG under the control of the same person may result in a net cost savings from reduced management costs related to both disposal and transportation.  With respect to disposal, organizations will realize a cost-savings associated with managing waste quantities in bulk.  Specifically, industry sources estimate that stand-alone VSQG facilities incur an average cost premium of approximately 10 percent to dispose of their hazardous waste relative to LQGs.  Organizations consolidating VSQG waste to LQGs may also reduce the costs they incur shipping hazardous waste to treatment, storage, and disposal facilities (TSDFs) due to the higher transport costs typically incurred by VSQGs on a per-ton basis compared to LQGs.
This provision of the final rule will also lead to cost savings for the limited number of organizations that currently transfer hazardous waste from VSQGs that they own and/or operate to LQGs within the organization.  Under the final rule, LQGs owned by these organizations will no longer need to obtain a RCRA storage permit or financial assurance (assuming that they do not receive hazardous waste from SQGs, other LQGs, or VSQG facilities owned by other organizations) and will avoid the costs associated with these items.
Episodic Generation:  As noted above, EPA will allow a VSQG or SQG to retain its existing regulatory status in the event of a planned or unplanned episodic event that would otherwise elevate the facility to a more stringent status.  This provision will result in a cost savings for VSQGs and SQGs that avoid the cost increase associated with such a change in generator status.  These costs are related to the RCRA generator requirements for training, inspections, manifests, contingency plan updating, and biennial reporting.
Using both 3 percent and 7 percent discount rates, Exhibit ES-7 reports the estimated monetized benefits of the final rule for the provisions outlined above for which the monetization of benefits was feasible.  Due to limitations in the available data, benefits associated with several mandatory provisions and one voluntary provision of the rule could not be monetized.  As indicated in the exhibit, the estimated quantifiable benefits of the final rule range from $8.3 to $14.4 million per year using a 7 percent discount rate.  Of the provisions for which benefits are monetized, benefits are greatest for the intra-organizational transfer provision of the rule.  The benefits realized by individual organizations under this provision, however, will vary depending on the number of facilities that are able to consolidate their wastes.
Exhibit ES-7:   Summary of monetized benefits ($2015 annualized over 20 years)
                                  REQUIREMENT
                              ANNUALIZED BENEFITS
                                (UNDISCOUNTED)
                              ANNUALIZED BENEFITS
                          (USING A 3% DISCOUNT RATE)
                              ANNUALIZED BENEFITS
                          (USING A 7% DISCOUNT RATE)
LOW IMPACT ESTIMATE
Drip Pads and Containment Buildings (Mandatory)
                                                                       $855,000
                                                                       $856,000
                                                                       $857,000
Intra-organizational Transfers (Voluntary)
                                                                     $4,210,000
                                                                     $4,210,000
                                                                     $4,210,000
Episodic Generation (Voluntary)
                                                                     $3,220,000
                                                                     $3,230,000
                                                                     $3,230,000
TOTAL
                                                                     $8,290,000
                                                                     $8,300,000
                                                                     $8,300,000
HIGH IMPACT ESTIMATE
Drip Pads and Containment Buildings (Mandatory)
                                                                       $858,000
                                                                       $859,000
                                                                       $860,000
Intra-organizational Transfers (Voluntary)
                                                                     $6,940,000
                                                                     $6,940,000
                                                                     $6,940,000
Episodic Generation (Voluntary)
                                                                     $6,540,000
                                                                     $6,550,000
                                                                     $6,560,000
TOTAL
                                                                    $14,300,000
                                                                    $14,300,000
                                                                    $14,400,000

ES.4.2 Non-Monetized Benefits
In addition to the monetized benefits presented above, the final rule may yield a variety of other non-quantifiable benefits.  By rule provision, these benefits include the following:
SQG and LQG re-notification: The data made available to EPA through re-notification will be more accurate and up-to-date than EPA's current generator data, allowing the Agency to observe changes in facilities' operations over time.  Using this information, EPA can conduct more precise and meaningful reviews of waste generation activity.  Similarly, the information collected through re-notification will help EPA and the states target their outreach, enforcement, and compliance assistance efforts.
Marking and labeling of containers for SQGs and LQGs: Including more detailed information on container labels will help increase awareness of the hazards of a container's contents among the various individuals in the waste management chain, which may in turn prevent improper treatment, transportation, and disposal of hazardous waste.  The more detailed information that EPA requires for display on container labels will also enhance the ability of emergency responders to limit adverse impacts from exposure to hazardous materials.
LQG Closure: The final closure requirements for LQGs will ensure the containment of any contaminants left in place after the closure of an LQG storing waste in containers. In addition, the final notification requirements for LQG closure will (1) provide regulatory authorities with information about the location and specifics of hazardous waste sites planned for closure; (2) allow the authorities to confirm that the unit is properly closed in compliance with the applicable closure regulations; and (3) allow the authorities to monitor the unit during the post-closure period, alerting regulators in cases where generators may have abandoned the site or closed it improperly, or where other complications may have developed at the site.
Strengthening of the preparedness, prevention, and emergency response conditions for LQGs. EPA's requirement that new LQGs submit a quick reference guide to their contingency plan to emergency management authorities and that any LQG that makes a change to its existing contingency plan prepare and submit a quick reference guide to emergency responders will allow first responders to more easily discern the layout of a facility, the location of hazardous wastes, what those wastes are, and what chemicals to use (or not use) near those wastes.  To the extent that first responders are able to respond more quickly and effectively based on this information, this provision of the final rule may prevent lethal outcomes and injuries among fire fighters, other first responders, and facility employees, and may also reduce exposure risk for local populations and ecosystems.
Transfer facility requirements: EPA is changing the marking and labeling requirements for transporters storing bulk/mixed hazardous wastes at a transfer facility to be consistent with the final requirements for generators.  As discussed above, including this information on the container will alert facility workers of the hazards of a container's contents, which may help prevent the improper treatment of this material.  Displaying this information on the containers may also help first responders limit exposure to local populations and ecosystems in the event of a fire or other emergency.
Biennial reporting requirements: The enhanced requirements that EPA is requiring for biennial reporting will make the BR more complete and consistent, allowing the Agency and the states to base their policy, programmatic, and enforcement decisions on more reliable hazardous waste generation and management data.
Prohibitions on storage of restricted waste for TSDFs: The final labeling requirements for TSDFs will result in benefits similar to those described above for generator labeling.
VSQG consolidation: Because LQGs are subject to more stringent waste handling requirements than VSQGs, transferring waste from VSQGs to LQGs under the control of the same person will improve the oversight and management of hazardous waste generated by VSQGs.  In addition, to the extent that consolidating VSQGs currently dispose of their hazardous waste in Subtitle D landfills, the consolidation of VSQG waste to an LQG will divert the waste to more environmentally protective disposal at a Subtitle C facility.
Episodic generation: In addition to the cost savings associated with avoided SQG- or LQG-specific activities (as estimated above), this provision of the rule may result in additional cost savings associated with facilities maintaining a more consistent RCRA generator status over time.  Changing status from one month to the next imposes an administrative burden on facilities as they re-visit the requirements for different generator status categories and implement measures to ensure compliance.  If facilities are able to maintain a more consistent generator status over time, they will not need to re-visit the generator requirements as frequently or make as many changes to their internal controls to ensure compliance with RCRA.
Special requirements for ignitable and reactive wastes: Facilities able to obtain a waiver from the prohibition on locating containers holding ignitable or reactive waste less than 15 meters (50 feet) from a facility's property line may avoid costs associated with relocation or the reconfiguration of their facilities.
ES.5 Comparison of Costs and Benefits
Exhibits ES-8 and ES-9 present the net benefits of the final rule based on discount rates of 3 percent and 7 percent, respectively.  The exhibits present net benefits separately for the mandatory and voluntary provisions of the rule and also examine net benefits for the mandatory and voluntary provisions combined.  As indicated above, benefits could not be monetized for many of the rule's mandatory provisions.  Net benefits for these provisions are therefore presented as negative.  These negative values, however, do not reflect the benefits presented in Chapter 4 that EPA was unable to monetize.  In excluding these benefits, the negative values in the exhibits represent underestimates of the net benefits associated with the rule's mandatory provisions.
For the voluntary provisions of the rule, this RIA estimates positive net benefits ranging from $5.5 to $8.9 million per year using a discount rate of 7 percent.  For both the low impact and high impact scenarios, the positive net benefits for these provisions reflect the net benefits associated with the intra-organizational transfers and episodic generation provisions.  As discussed above, organizations that opt into the former are expected to experience cost savings associated with reduced transportation and hazardous waste disposal costs.  The net benefits of the episodic generation provision are also expected to be much higher under the high impact scenario than the low impact scenario.  This difference reflects the assumption in this RIA (stated in Chapter 4) that 50 percent of episodic generators are assumed to meet the rule conditions for taking advantage of this provision (i.e., no more than two episodic events per year lasting no more than 60 days each) under the low impact scenario while all episodic generators are assumed to meet these conditions under the high impact scenario.
EXHIBIT ES-8:  NET BENEFITS OF THE FINAL RULE ($2015 ANNUALIZED OVER 20 YEARS, USING A 3% DISCOUNT RATE)
                                  REQUIREMENT
                               LOW-END SCENARIO
                               HIGH-END SCENARIO
                               ANNUALIZED COSTS
                              ANNUALIZED BENEFITS
                                 NET BENEFITS
                               ANNUALIZED COSTS
                              ANNUALIZED BENEFITS
                                 NET BENEFITS
MANDATORY PROVISIONS OF THE FINAL RULE
Re-notification
                                                                      $480,000
                                 Not monetized
                                      --
                                                                      $621,000
                                 Not monetized
                                      --
Labeling
                                                                    $2,750,000

                                                                    $5,450,000

Closure
                                                                       $44,500

                                                                    $2,330,000

Emergency Response Preparedness
                                                                      $475,000

                                                                      $666,000

Transfer Facility
                                                                        $4,470

                                                                        $8,280

BR Requirements
                                                                        $7,100

                                                                       $69,800

Recycling
                                                                         $2,090

                                                                         $5,670

Prohibitions on Storage
                                                                            $0

                                                                            $0

Drip Pads and Containment Buildings
                                                                            $0
                                                                      $856,000
                                                                       $856,000
                                                                            $0
                                                                      $859,000
                                                                       $859,000
SUB-TOTAL: Mandatory Rule Provisions
                                                                    $3,760,000
                                                                      $856,000
                                                                   ($2,910,000)
                                                                     $9,150,000
                                                                      $859,000
                                                                   ($8,290,000)
VOLUNTARY PROVISIONS OF THE FINAL RULE
Intra-organizational Transfers
                                                                    $1,640,000
                                                                    $4,210,000
                                                                    $2,570,000
                                                                    $2,980,000
                                                                    $6,940,000
                                                                    $3,960,000
Episodic Generation
                                                                      $260,000
                                                                    $3,230,000
                                                                    $2,970,000
                                                                    $1,390,000
                                                                    $6,550,000
                                                                    $5,150,000
Ignitable and Reactive Waste
                                                                           $60
                                                                  Not monetized
                                                                          ($60)
                                                                      $105,000
                                                                  Not monetized
                                                                     ($105,000)
SUB-TOTAL: Voluntary Rule Provisions
                                                                    $1,900,000
                                                                    $7,440,000
                                                                    $5,540,000
                                                                    $4,480,000
                                                                   $13,500,000
                                                                    $9,010,000
MANDATORY AND VOLUNTARY PROVISIONS OF THE FINAL RULE COMBINED
TOTAL: Mandatory and Voluntary Provisions Combined
                                                                    $5,660,000
                                                                    $8,300,000
                                                                    $2,630,000
                                                                   $13,600,000
                                                                   $14,300,000
                                                                       $722,000
Notes:
All estimates are rounded to three significant digits and may not sum due to rounding.
EXHIBIT ES-9:  NET BENEFITS OF THE FINAL RULE ($2015 ANNUALIZED OVER 20 YEARS, USING A 7% DISCOUNT RATE)
                                  REQUIREMENT
                               LOW-END SCENARIO
                               HIGH-END SCENARIO
                               ANNUALIZED COSTS
                              ANNUALIZED BENEFITS
                                 NET BENEFITS
                               ANNUALIZED COSTS
                              ANNUALIZED BENEFITS
                                 NET BENEFITS
MANDATORY PROVISIONS OF THE FINAL RULE
Re-notification
                                                                       $507,000
                                 Not monetized
                                      --
                                                                       $656,000
                                 Not monetized
                                      --
Labeling
                                                                     $2,920,000

                                                                     $5,610,000

Closure
                                                                        $44,500

                                                                     $1,710,000

Emergency Response Preparedness
                                                                       $481,000

                                                                       $672,000

Transfer Facility
                                                                         $4,470

                                                                         $8,280

BR Requirements
                                                                         $7,240

                                                                        $71,100

Recycling
                                                                         $2,130

                                                                         $5,780

Prohibitions on Storage
                                                                             $0

                                                                             $0

Drip Pads and Containment Buildings
                                                                             $0
                                                                       $857,000
                                                                       $857,000
                                                                             $0
                                                                       $860,000
                                                                       $860,000
SUB-TOTAL: Mandatory Rule Provisions
                                                                     $3,960,000
                                                                       $857,000
                                                                   ($3,110,000)
                                                                     $8,740,000
                                                                       $860,000
                                                                   ($7,880,000)
VOLUNTARY PROVISIONS OF THE FINAL RULE
Intra-organizational Transfers
                                                                     $1,680,000
                                                                     $4,210,000
                                                                    $2,530,000
                                                                     $3,050,000
                                                                     $6,940,000
                                                                    $3,890,000
Episodic Generation
                                                                       $260,000
                                                                     $3,230,000
                                                                     $2,970,000
                                                                     $1,390,000
                                                                     $6,560,000
                                                                     $5,170,000
Ignitable and Reactive Waste
                                                                           $60
                                                                  Not monetized
                                                                          ($60)
                                                                      $118,000
                                                                  Not monetized
                                                                     ($118,000)
SUB-TOTAL: Voluntary Rule Provisions
                                                                     $1,940,000
                                                                     $7,450,000
                                                                     $5,510,000
                                                                     $4,560,000
                                                                    $13,500,000
                                                                     $8,940,000
MANDATORY AND VOLUNTARY PROVISIONS OF THE FINAL RULE COMBINED
TOTAL: Mandatory and Voluntary Provisions Combined
                                                                    $5,900,000
                                                                     $8,300,000
                                                                     $2,400,000
                                                                   $13,300,000
                                                                    $14,400,000
                                                                     $1,060,000
Notes:
All estimates are rounded to three significant digits and may not sum due to rounding.

ES.6 Equity Considerations and Other Impacts
As required by applicable statutes and executive orders, this RIA examines equity considerations and other regulatory concerns associated with the final rule.  Specifically, this RIA considers the following (discussed further in Chapter 6):
 Regulatory planning and review: This action is a "significant regulatory action" in that it may raise novel legal or policy issues arising out of legal mandates, the President's priorities, or the principles set forth in the Executive Order.  Therefore, it was submitted to the Office of Management and Budget (OMB) for review.
 Regulatory flexibility: EPA estimates that the final rule will not have significant economic impacts on a substantial number of small entities under the Regulatory Flexibility Act.
 Unfunded mandates: Signed into law on March 22, 1995, the Unfunded Mandates Reform Act (UMRA) requires federal agencies, unless otherwise prohibited by law, to assess the effects of their regulatory actions on state, local, and tribal governments and on the private sector, to determine whether any final rulemaking may result in "any Federal mandate that may result in the expenditure by state, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year."  Based on the magnitude of the final rule's estimated cost impacts, the rule is not estimated to result in annual expenditures exceeding $100 million for either the private sector or state, local, and tribal governments in the aggregate.
 Federalism: EPA estimates that the final rule will not have substantial direct effects on the states, on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government.
 Tribal governments: EPA estimates that the final rule will not impose a substantial burden on tribal governments.
 Environmental justice: EPA does not expect that the final rule will result in disproportionately high or adverse impacts for minority or low-income populations.  Overall, the Agency anticipates that the rule will reduce any adverse effects associated with the management of hazardous waste, thus benefiting minority and low-income populations.
 Children's health protection: The rule is not expected to result in a disproportionate adverse health impact on children.
 Energy Impacts: The final rule is not expected to have a significant adverse effect on energy supply, distribution, or use.  In addition, no measurable adverse impacts are expected on energy prices or foreign supplies.
 Employment impacts: EPA qualitatively describes employment impacts as insufficient data are available to quantify the potential impact of the final rule on employment.
CHAPTER 1  |  Introduction
1.1 Overview
This document presents EPA's analysis of the costs, benefits, and economic impacts of the Final Hazardous Waste Generator Improvements Rule.  This final rule has the dual purposes of enhancing protection of human health and the environment and improving the efficiency of the hazardous waste generator standards.  EPA is publishing this Regulatory Impact Assessment (RIA) in conjunction with the final rule.
1.2 Background and Need for Regulatory Action
Under the statutory authority of the Resource Conservation and Recovery Act (RCRA), EPA originally promulgated the hazardous waste generator regulatory program in 1980.  Since that time, the basic regulatory framework of the program has remained intact except for three major changes.  First, pursuant to the Hazardous and Solid Waste Amendments (HSWA) of 1984, the Agency established regulations in 1986 that distinguished between generators generating more than 100 kilograms and less than 1,000 kilograms of hazardous waste in a calendar month (small quantity generators, or SQGs) and generators generating 100 kilograms or less in a calendar month (very small quantity generators, or VSQGs).  Prior to the 1986 rule, VSQGs did not exist as a separate generator class, and all facilities generating less than 1,000 kilograms of hazardous waste in a calendar month were subject to the same requirements.  Second, and also as a result of HSWA, EPA established Land Disposal Restriction (LDR) regulations.  The Agency's LDR program established treatment standards for hazardous wastes, and specified requirements that generators, transporters, and owners or operators of treatment, storage, and disposal facilities (TSDFs) that manage restricted wastes destined for land disposal must meet.  Third, EPA modified the Uniform Hazardous Waste Manifest regulations in 2005 to standardize the content and appearance of the manifest form, make the forms available from a greater number of sources, and adopt new procedures for tracking certain types of hazardous waste shipments.
Over the course of the last 30 years, the Agency has become aware of ambiguities and gaps in the regulations, which, if corrected, could make the program more effective in protecting human health and the environment.  For example, current regulations do not require that hazardous waste container labels include information on the specific hazards of container contents or what risk these wastes could pose to human health and the environment when such waste is being accumulated on-site.
EPA has also become increasingly aware of certain inflexibilities in the generator regulations over the last 30 years.  For example, some generators, particularly those located in urban environments, may find it infeasible to meet the requirement that containers holding ignitable or reactive waste be placed at least 15 meters (~50 feet) back from the facility's property line.  In addition, current regulations require that a VSQG or SQG that experiences an episodic generation event resulting in the generation of more than 1,000 kilograms of hazardous waste in a calendar month comply with the regulatory requirements for large quantity generators (LQGs).  Requiring VSQGs or SQGs that rarely exceed their normal regulatory status to meet the full LQG requirements as a result of such episodic events may be burdensome.  To address these shortcomings in the current generator regulations, EPA is implementing several specific changes to the hazardous waste generator program.  These improvements are relatively minor on an individual basis yet address a wide range of issues.  In aggregate, the changes to the program are expected to significantly improve regulatory efficiency and provide further protection of human health and the environment.
1.3 Summary of the Final Rule
EPA is promulgating several changes to the hazardous waste generator regulations.  Specifically, EPA is  (1) revising different components of the hazardous waste regulatory program; (2) addressing gaps in the current regulations; (3) providing greater flexibility for hazardous waste generators to manage their hazardous waste in a cost-effective manner; (4) reorganizing the hazardous waste generator regulations to improve their usability among regulated facilities; and (5) making technical corrections and conforming changes to address inadvertent errors, remove obsolete programs, and improve the readability of the regulations.
Some provisions of the final rule represent substantive changes to the requirements with which hazardous waste generators must comply, while others are simply revisions or minor corrections unlikely to affect the activities of most individual generators.  This RIA focuses on the former, as these provisions are more likely to result in costs, benefits, and/or other economic impacts.  These specific provisions are summarized below.  While the majority of the requirements are mandatory, three provisions of the rule are intended to provide greater flexibility to certain classes of hazardous waste generators and are thus voluntary.  This section first describes the mandatory provisions of the rule, and then discusses the voluntary provisions.  For a detailed discussion of all the changes to the generator regulations that EPA is promulgating, please refer to the Preamble to the final rule.
 SQG re-notification:  To ensure that regulatory agencies have information on facilities generating hazardous waste, EPA is requiring that SQGs re-notify EPA of their hazardous waste generation activities every four years.  For each re-notification, a facility need only review its previous notification and either make changes if necessary or confirm that the information remains accurate.
 Marking and labeling of containers, tanks, and containment buildings for SQGs and LQGs:  Current regulation requires that SQGs and LQGs label containers and tanks with the words, "Hazardous Waste."  While this wording provides some information regarding a container's contents, it does not indicate the specific hazards associated with these contents or the risks that a waste may pose to human health and the environment.  EPA is therefore requiring that SQGs and LQGs mark containers and tanks with (1) the words "Hazardous Waste" and (2) an indication of the hazards of a container's contents (e.g., the applicable hazardous waste characteristics).  Similarly, EPA is also requiring that SQGs and LQGs mark containment buildings with (1) the words "Hazardous Waste" and (2) an indication of the associated hazards (e.g., the applicable hazardous waste characteristics).
 LQG closure conditions:  EPA is strengthening the closure regulations for LQGs that accumulate hazardous wastes in containers in central accumulation areas (CAAs).  Specifically, EPA is requiring that if the generator cannot demonstrate that any contaminated soils can be practicably removed or decontaminated, then the generator must close the waste accumulation unit(s) and perform post-closure care in accordance with the closure and post-closure care requirements that apply to landfills (§ 265.310). In addition, for the purposes of closure, post-closure, and financial responsibility, such a waste accumulation unit is then considered to be a landfill, and the generator must meet all of the requirements for landfills specified in subparts G and H of part 265.
Also related to closure, EPA is requiring LQGs to notify EPA or their authorized state within 30 days prior to closure.  EPA is also requiring that such generators subsequently notify within 90 days after closure that they have either clean closed or -- if they cannot clean close -- that they have closed as a landfill.  LQGs must also document in their operating record if they close any waste accumulation units prior to the facility closure.
 Strengthening of the preparedness, prevention, and emergency response conditions for LQGs:  To improve the ability of emergency response teams to respond to an emergency, EPA is requiring any that all new LQGs submit a quick reference guide to their contingency plan to emergency management authorities.  In addition, EPA is requiring any LQG that makes a change to its existing contingency plan to prepare and submit a quick reference guide to emergency responders.
 Transfer facility requirements:  Transporters that store manifested shipments of hazardous waste in containers at a transfer facility for a period of ten days or less are not subject to the regulation under parts 264, 265, 267, 268, and 270.  However, EPA is changing the marking and labeling requirements for transporters using a transfer facility when consolidating the contents of two or more containers with the same hazardous waste into a new container, or when combining and consolidating two different hazardous wastes that are compatible with each other.  In this case, the transporter must label all containers with (1) the words "Hazardous Waste" and (2) the applicable EPA hazardous waste codes.
 Biennial reporting requirements:  EPA is requiring that LQGs report all of the hazardous waste that they generate for the entire reporting year, not just waste for the month(s) during which they were LQGs.  Current regulation at the Federal level is unclear on this issue, and a limited number of states currently require LQGs to report the amount of hazardous waste generated for only those months that they were LQGs.
 Recycling facility reporting requirements:  Under the existing regulations in CFR 261.6, which identifies the requirements for recyclable materials, certain classes of recycling facilities are exempt from the BR reporting requirements so long as they are not required to be permitted as a TSDF.  The final rulemaking adds the BR reporting requirements to CFR 261.6 (c) (2).
 Prohibitions on storage of restricted waste for TSDFs:  Consistent with the marking and labeling requirements for SQGs and LQGs, EPA is requiring that TSDFs mark containers holding hazardous waste with (1) the words "Hazardous Waste" and (2) an indication of the hazards of a container's contents.  Under existing regulations, TSDFs must already mark containers holding hazardous waste with a description of the contents of the container.
 Drip pad and containment building requirements:  Under the existing regulations, EPA has consistently interpreted the requirements for LQGs that accumulate hazardous waste on drip pads or in containment buildings for 90 days or less without a permit or interim status to also apply to SQGs.  Therefore, SQGs that use drip pads or containment buildings must comply with the LQG 90-day accumulation limit (as opposed to the SQG 180-day accumulation limit) as well as the requirements that apply to LQGs for personnel training, development of a full contingency plan, and biennial reporting.  Under the final rule, EPA believes a more effective and efficient approach is to require SQGs that accumulate hazardous waste in containment buildings to comply with the 90-day accumulation limit and SQGs that accumulate hazardous waste on drip pads to comply with the 180-day accumulation limit, but to otherwise comply with the less stringent requirements for SQGs.
 Intra-organization transfers of hazardous waste from VSQGs to LQGs (voluntary):  To afford greater flexibility to VSQGs, EPA is allowing VSQGs to send their hazardous waste voluntarily to an LQG under the ownership of the same organization, provided that both the VSQG(s) and LQG comply with certain conditions.  The VSQG conditions are as follows:
 A participating VSQG must label containers with the words "VSQG Hazardous Waste" and an indication of the hazards of a container's contents.
 VSQGs must comply with all applicable Department of Transportation regulations when sending their hazardous waste to an LQG.
      The conditions for LQGs receiving hazardous waste from one or more VSQGs controlled by the same person include the following:
 LQGs must submit a notification to EPA or their authorized state identifying the names, addresses, and contact information for the VSQGs that will be transferring hazardous waste to the LQG.
 LQGs must maintain records of all hazardous waste received from VSQGs that include the name, address, and contact information for each VSQG, as well as information on the quantity of each waste shipment received.
 LQGs must mark shipments from VSQGs with the date the hazardous waste was received from the VSQG.
 LQGs must manage all incoming VSQG hazardous waste in compliance with the regulations applicable to their LQG status.
 Hazardous waste received from VSQGs must be included in the receiving LQG's BR submissions.
 Generators that temporarily change generator status due to an episodic event (voluntary):  To provide greater flexibility to VSQGs and SQGs that generate much of their hazardous waste on an episodic basis, EPA is allowing a VSQG or an SQG to voluntarily maintain its existing regulatory status in the event of a planned or unplanned episodic event in which the facility generates a quantity of hazardous waste in a calendar month that would otherwise elevate the facility to a more stringent regulatory status.  To take advantage of this provision, an SQG or VSQG is subject to the following conditions:
 Limit of no more than one planned and one unplanned episodic event per calendar year (each lasting no more than 60 days);
 Notify EPA or the authorized state at least 30 calendar days prior to initiating a planned episodic event or within 72 hours after an unplanned episodic event;
 VSQGs must obtain a RCRA ID number;