99-31965. Proposed Exclusion from the Definition of Solid Waste; Hazardous Waste Management System; Identification and Listing of Hazardous Waste  

  • [Federal Register Volume 64, Number 236 (Thursday, December 9, 1999)]
    [Proposed Rules]
    [Pages 68968-68973]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-31965]
    
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Part 260
    
    [FRL-6505-5]
    
    
    Proposed Exclusion from the Definition of Solid Waste; Hazardous 
    Waste Management System; Identification and Listing of Hazardous Waste
    
    AGENCY: Environmental Protection Agency.
    
    ACTION: Proposed rule.
    
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    SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
    grant a variance from EPA's hazardous waste requirements for certain 
    materials reclaimed by the World Resources Company (WRC) from metal-
    bearing sludges. This action responds to a petition submittted by WRC 
    requesting that the Agency exclude from the RCRA definition of solid 
    waste its concentrate material that is partially reclaimed from metal-
    bearing sludges and sold to smelters. If the Agency finalizes this 
    action, the variance will be limited to five years.
    
    DATES: EPA will accept public comments on its proposed decision until 
    February 7, 2000.
    
    ADDRESSES: Commenters must send an original and two copies of their 
    comments referencing docket number F-99-WRCP-FFFFF to: RCRA Docket 
    Information Center, Office of Solid Waste (5305G), U.S. Environmental 
    Protection Agency Headquarters, 401 M St., SW, Washington, DC 20460. 
    Hand deliveries of comments should be made to the Arlington, VA address 
    below. Comments may also be submitted electronically to: docket@epamail.epa.gov. Comments in electronic format should also be 
    identified by the docket number F-99-WRCP-FFFFF. All electronic 
    comments must be submitted as an ASCII file avoiding the use of special 
    characters and any form of encryption.
        Commenters should not submit electronically any confidential 
    business information (CBI). An original and two copies of CBI must be 
    submitted under separate cover to: RCRA CBI Document Control Officer, 
    Office of Solid Waste (5305W), U.S. EPA, 401 M St. SW, Washington, DC 
    20460.
        Public comments and supporting materials are available for viewing 
    in the RCRA Information Center (RIC) located at Crystal Gateway 1, 
    First Floor, 1235 Jefferson Davis Highway, Arlington, VA. The docket is 
    open from 9 a.m. to 4 p.m., Monday through Friday, excluding Federal 
    holidays. To review docket materials, it is recommended that the public 
    make an appointment by calling (703) 603-9230. The public may copy a 
    maximum of 100 pages from the regulatory docket at no charge. 
    Additional copies cost $0.15/page. The index is available 
    electronically. See the Supplementary Information section for 
    information on accessing it.
    
    FOR FURTHER INFORMATION CONTACT: For general information, contact the 
    RCRA/Superfund/EPCRA/UST Hotline at (800) 424-9346 (toll free) or TDD 
    (800) 553-7672 (hearing impaired). In the Washington, DC metropolitan 
    area, call (703) 412-9810 or TDD (703) 412-3323. For more detailed 
    information on specific aspects of this rulemaking, contact Ms. Marilyn 
    Goode, U.S. Environmental Protection Agency, MC 5304W, 401 M Street SW, 
    Washington, DC 20460, (703) 308-8800, electronic mail: 
    goode.marilyn@epa.gov.
    
    SUPPLEMENTARY INFORMATION: The index to the docket record is available 
    on the Internet. Follow these instructions to access the information 
    electronically:
    
    WWW: http://www.epa.gov/epaoswer/osw/hazwaste.htm#id.
    FTP: FTP: ftp.epa.gov.
    Login: Anonymous
    Password: Your Internet Address
    Files are located in /pub/epaoswer.
    
        The official record for this action will be kept in paper form. 
    Accordingly, EPA will transfer all comments received electronically 
    into paper form and place them in the official record, which will also 
    include all comments submitted directly in writing. The official record 
    is the paper record maintained at the address in ADDRESSES at the 
    beginning of this document. EPA responses to comments, whether the 
    comments are written or electronic, will be in a notice in the Federal 
    Register or in a response to comments document placed in the official 
    record for this rulemaking. EPA will not immediately reply to 
    commenters electronically other than to seek clarification of 
    electronic comments that may be garbled in transmission or during 
    conversion to paper form, as discussed above.
    
    Table of Contents
    
    I. Background
        A. Authority
        B. Summary of Petition
        1. Applicability of the Variance
        2. Description of WRC's Partial Reclamation Process
    II. Summary of Regulatory Provisions Governing Petitions
    III. Evaluation of WRC's Petition Against Each of the Established 
    Evaluation Factors
        A. The Degree of Processing the Material has Undergone and the 
    Degree of Further Processing that is Required
        B. Value of the Material After it Has Been Partially Reclaimed
        C. The Degree to Which the Partially Reclaimed Material is Like 
    an Analogous Raw Material
        D. The Extent to Which an End Market for the Partially Reclaimed 
    Material is Guaranteed
        E. The Extent to Which the Partially Reclaimed Material is 
    Handled to Minimize Loss
    IV. Summary of the Agency's Proposed Decision
    V. Request for Comments
    VI. Effect of Variance in Arizona
    VII. Administrative Requirements
    
    I. Background
    
    A. Authority
    
        Under 40 CFR 260.30(c), facilities may petition EPA to exclude from 
    the definition of solid waste material that has been reclaimed but must 
    be reclaimed further before recovery is complete. To qualify for the 
    exclusion, the material resulting from initial reclamation must be 
    commodity-like (even though it is not yet a commercial product, and has 
    to be reclaimed further). Petitioners must provide sufficient 
    information to EPA to allow the Agency to make a determination that the 
    material is not a solid waste, pursuant to criteria set forth at 40 CFR 
    260.31(c).
    
    B. Summary of Petition
    
        Pursuant to 40 CFR 260.30(c), WRC submitted to EPA a petition for a 
    variance from classification as solid waste for metal-rich concentrate 
    material produced at its facility in Phoenix, Arizona. WRC produces the 
    concentrate primarily from sludges generated by electroplating 
    operations. The sludges are rich in metals, and are generally classifed 
    as hazardous wastes. WRC then sells the partially reclaimed material to 
    primary smelters for metals extraction. Currently, the partially 
    reclaimed material produced at the Phoenix facility is fully regulated 
    as hazardous waste, must be managed and sold as hazardous waste, and 
    off-site shipments must be accompanied by a hazardous waste manifest. 
    In support of its variance application, WRC provided data and 
    information in its application about each of the factors listed in 40 
    CFR 260.31(c).
    1. Applicability of the Variance
        At its Phoenix facility, WRC principally reclaims wastewater 
    treatment sludges (F006) received from generators who conduct 
    electroplating and metal finishing operations. From
    
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    these sludges, WRC ``produces'' a metal-rich concentrate material. In 
    addition, the facility also receives and partly reclaims hazardous 
    wastes listed as F019 (wastewater treatment sludges from chemical 
    conversion coating of aluminum) and D004 through D011 (characteristic 
    hazardous wastes). WRC's petition, and the proposed exclusion addressed 
    in this notice, pertain only to the metal-bearing sludges listed as 
    hazardous wastes F006 and F019 and partially reclaimed at WRC's 
    Phoenix, Arizona facility. Other hazardous wastes managed by WRC at its 
    Arizona facility and all hazardous wastes managed at other WRC 
    facilities are not addressed in this proposed decision and must 
    continue to be managed as solid and/or hazardous wastes in accordance 
    with all applicable RCRA regulatory requirements.
        The Agency notes that sludges that are hazardous only because they 
    exhibit a characteristic of hazardous waste that are reclaimed are 
    currently excluded from classification as solid waste pursuant to 40 
    CFR 261.2(c)(3). Therefore, sludges that are reclaimed by WRC and 
    designated as hazardous wastes D004 through D011 are not solid wastes. 
    In addition, if this variance is finalized and if these characteristic 
    sludges are mixed with the listed metal-bearing sludges covered by the 
    variance prior to or during the reclamation process at WRC's Phoenix 
    facility, the mixture will not be classified as a solid waste provided 
    the mixture is sent off-site for further reclamation and is handled in 
    accordance with all the conditions of this variance.
    2. Description of WRC's Partial Reclamation Process
        Operations at WRC's Phoenix facility are governed by a Consent 
    Agreement and Consent Order (CA/CO) executed by EPA Region IX, WRC, and 
    the Arizona Department of Environmental Quality, hereafter referred to 
    as ``ADEQ'' (see In the Matter of World Resources Company, EPA I.D. No. 
    AZD980735500, United States Environmental Protection Agency, Region IX, 
    September 3, 1996). The CA/CO includes a requirement to submit an 
    application for a treatment and storage permit to ADEQ. At the Arizona 
    facility, WRC accepts F006 raw material (as well as other metal-bearing 
    sludges) that it judges to be acceptable for recycling based on 
    laboratory and process testing of generated sludges. WRC prepares a 
    waste profile for the wastestreams received from each generator, which 
    includes physical descriptions and constituent content. The material is 
    unloaded, examined, and sampled on receiving pads in a processing 
    enclosure. WRC dries the received waste through evaporative processes. 
    The material is spread out in a controlled area, mechanically furrowed, 
    and periodically rotor-tilled to facilitate drying. The physical 
    characteristics of the material changes from a wet cohesive nonfree-
    flowing mass into a granular free-flowing form. The moisture content of 
    the F006 received is reduced by one-half. The entire processing area is 
    located on a concrete pad which covers several acres, with a compacted 
    native soil and flexible membrane liner underneath the pad.
        The F006 is then blended by mechanical mixing with other waste 
    streams received from various generators to achieve concentrates that 
    meet the contractual specifications (e.g, recoverable metals contents) 
    of its customers. Other than water, WRC neither adds any materials to, 
    nor removes any materials from the F006 and F019 metal-bearing sludges 
    that it receives from generators and processes. The resulting 
    concentrate contains metal hydroxides and oxides of iron, aluminum and 
    magnesium. WRC markets the concentrates as copper, nickel, and tin 
    concentrates to smelters that recover various metals contained in these 
    concentrates.
    
    II. Summary of Regulatory Provisions Governing Petitions
    
        40 CFR 260.30 provides that the EPA Administrator may grant a 
    variance from the classification of solid waste, on a case-by-case 
    basis, for materials that have been reclaimed but must be reclaimed 
    further before recovery is completed. Such a variance generally is 
    contingent upon the material resulting from the initial reclamation 
    being ``commodity-like.'' If this variance is finalized, the 
    concentrates partially reclaimed from metal-bearing sludges F006 and 
    F019 that are shipped to smelters may travel without a hazardous waste 
    manifest and will not be subject to any RCRA controls other than the 
    conditions of this variance (discussed in section IV of this notice). 
    Incoming hazardous waste received by WRC at the Phoenix facility is not 
    covered by the variance and must be manifested and managed as a 
    hazardous waste until shipped to smelters for further reclamation.
        40 CFR 260.31(c) specifies five criteria for evaluating whether a 
    specific material qualifies for a ``partially reclaimed material'' 
    variance from the definition of solid waste. In addition, 40 CFR 
    260.31(c)(6) allows EPA to consider ``other relevant factors'' when 
    determining whether or not to grant a requested variance for materials 
    that have been reclaimed, but must be reclaimed further. The first 
    evaluation criterion (40 CFR 260.31(c)(1)) is the degree of processing 
    a material has undergone and the degree of further processing that is 
    required for the material to be rendered ``commodity-like.'' Materials 
    that have undergone substantial processing to reclaim valuable or 
    recyclable materials (but still must undergo a degree of further 
    processing) generally satisfy this criterion. Materials that are still 
    substantially ``waste-like'' and that need a significant degree of 
    further processing or ``treatment'' to be rendered ``commodity-like'' 
    do not satisfy the evaluation criterion.
        The second evaluation criterion (Sec. 260.31(c)(2)) requires an 
    evaluation of the economic value of the material that has been 
    reclaimed, but must be further reclaimed. This criterion is also useful 
    in determining whether a material is indeed ``commodity-like.'' To 
    satisfy this criterion, petitioners must demonstrate that the initial 
    reclamation process increases or contributes to the value of the 
    material and that there is a market for the reclaimed material. 
    Petitioners generally can demonstrate that this factor is met by 
    providing sales information, including quantities of the material sold, 
    additional demand for the material (if any), and the price paid for the 
    material by purchasers.
        The third evaluation criterion (40 CFR 260.31(c)(3)) is the degree 
    to which the reclaimed material is like an analogous raw material. 
    Petitioners must demonstrate that the partially reclaimed material is 
    similar to an analogous raw material or feedstock for which the 
    material may be substituted in a production or reclamation process. In 
    addition, the petitioner should demonstrate that the partially 
    reclaimed material does not contain significant concentrations of 
    hazardous constituents not found in an analogous raw material and that 
    do not contribute to the value of the partially reclaimed material when 
    used for its intended purpose.
        Under the fourth evaluation criterion (40 CFR 260.31(c)(4)), 
    petitioners must demonstrate that an end market for the partially 
    reclaimed material is guaranteed. Petitioners must demonstrate that 
    there is a secure demand and long-term market for the partially 
    reclaimed material and that the chance of large quantities of the 
    material being stockpiled due to insufficient demand is unlikely. If a 
    petitioner cannot demonstrate that the material enjoys a consistent 
    level of demand, with reasonable expectations for the
    
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    same or greater level of demand once a variance is granted, there may 
    be risk of the material being stockpiled or stored for a significant 
    period of time in containers or other storage units that do not have to 
    meet RCRA Subtitle C storage standards. Such situations may pose 
    significant risks to human health or the environment.
        The fifth evaluation criterion (40 CFR 260.31(c)(5)) concerns the 
    extent to which the partially reclaimed material is handled to minimize 
    loss. Petitioners must demonstrate that the material is handled as if 
    it were a valuable commodity and in a manner that is protective of 
    human health and the environment.
        In addition to the five evaluation factors discussed above, EPA may 
    consider other relevant factors in determining whether or not to grant 
    a variance from the definition of solid waste for materials that have 
    been reclaimed but must be reclaimed further before recovery is 
    complete (40 CFR 260.31(c)(6)). These other factors may be raised by 
    the petitioner, the Agency, or other interested parties. Such factors 
    may be directly applicable to EPA's decision to grant a variance, or 
    may be indirectly applicable, but relevant in assigning priorities for 
    evaluating a particular petition. For example, EPA might choose to 
    evaluate the long-term viability of the recycling or reuse market for 
    the partially reclaimed material and the contribution that a variance 
    may play in expanding or stabilizing this market. In addition, EPA 
    might wish to assess past or ongoing releases at facilities managing 
    the partially reclaimed material, or the degree to which corrective 
    action activities are being conducted at facilities managing the 
    material.
    
    III. Evaluation of WRC's Petition Against Each of the Established 
    Evaluation Factors
    
    A. The Degree of Processing the Material has Undergone and the Degree 
    of Further Processing That is Required
    
        The processing steps performed by WRC include sampling and testing 
    incoming batches of sludge, evaporating water from the sludges, and 
    blending certain listed metal-bearing sludges from different sources to 
    form a metal concentrate. The procedure is not elaborate, and the lack 
    of substantial physical processing could, under different 
    circumstances, lead the Agency to conclude that this criterion had not 
    been met. However, despite the elementary nature of the physical 
    processing, EPA has concluded that the company is nevertheless 
    performing a valuable service for generators of F006 by testing, 
    drying, and blending their sludges to ensure that the resultant 
    materials are judged by smelters to be acceptable feedstocks. Many 
    smelters are reluctant to take F006 sludges directly from 
    electroplating operations because of the administrative, handling, and 
    quality control activities necessary to manage the relatively small 
    volumes generated by individual electroplaters and to ensure that 
    materials sent to smelters are appropriate and acceptable for the 
    smelting process. The blending, drying, consolidating, and analytical 
    processes conducted by WRC may eliminate the amount of pre-processing 
    and quality control of sludges that would otherwise be necessary at the 
    smelting facility. In support of this view, WRC has long-term contracts 
    with generators of F006 sludges to perform this testing, drying, and 
    blending service, and the contracts appear to ensure acceptability of 
    the material by smelting facilities. In addition, the Agency notes that 
    WRC's concentrate has considerably higher economic value than ``as-
    generated'' F006 sludges. This indicates that, despite the simple 
    nature of the physical processing involved, the resultant product is 
    more ``commodity-like'' than ``waste-like,'' and thus the intent of 
    this criterion would be satisfied.
        However, the Agency has a potential concern about the legitimacy of 
    the WRC reclamation process. This concern is whether the F006 and F019 
    sludges accepted and blended to form a concentrate have sufficiently 
    high levels of metals to contribute to an end product that is 
    acceptable to smelters. If listed sludges containing low or virtually 
    no metal content are accepted at the facility and blended with other 
    materials (e.g., non-RCRA wastes from electroplating operations) to 
    produce a material that is acceptable to smelters, the facility may 
    actually be ``treating'' the low metal-content sludge and not 
    legitimately recycling the RCRA hazardous waste. Since metal recovery 
    is the ultimate purpose for the recycling or reclamation operation, the 
    minimum metal content of the incoming hazardous wastes is an important 
    factor in evaluating the legitimacy of the process and the 
    applicability of the variance. Having a recoverable amount of metals in 
    each of the F006 and F019 incoming sludges is a necessary condition for 
    WRC's process to be judged a legitimate reclamation operation.
        To address this legitimacy concern, the Agency is proposing to 
    condition the exclusion for the partially reclaimed material on the 
    requirement that all F-listed sludges received destined for partial 
    reclamation to produce the concentrate material must have a minimum 
    copper, nickel or tin content of two percent on a dry-weight basis, or 
    the equivalent economic value in precious metals (e.g., gold, silver, 
    platinum, or palladium). To set this condition, EPA analyzed smelter 
    specifications for incoming materials and concluded, generally, that 
    metal-bearing secondary materials with a content of less than two 
    percent on a dry weight basis for copper, nickel, or tin (or an 
    equivalent precious metal value) are not acceptable material at 
    smelters. The minimum metal content for F-listed sludge materials 
    received by WRC is based upon information collected by the Agency on 
    smelter specifications for minimum metal content in an ore or reclaimed 
    material. This information is available in the rulemaking docket for 
    this proposed variance. The minimum metal content based on smelter 
    specifications (rather than use of a higher minimum for metals) is also 
    designed to provide incentives for recycling F006 and F019.
        To ensure compliance with the minimum metal content condition for 
    F-listed metal-bearing sludges received by WRC's Phoenix facility, the 
    Agency is placing an additional condition upon the facility to ensure 
    that WRC adequately monitors the metals content of the hazardous waste 
    materials received for reclamation. Upon receipt of any non-conforming 
    shipment of sludge material, WRC must contact the generator and notify 
    the generator that WRC cannot accept further material due to the low 
    metal content of the waste. However, WRC may accept one additional non-
    conforming shipment if it arrives within fourteen days of the first 
    shipment. The Agency is allowing the facility to receive two non-
    conforming shipments over a period of 14 days to provide WRC with 
    sufficient time to contact the generator and discuss a remedy or 
    designate a different waste management alternative. The 14-day period 
    allows WRC to receive shipments that may already be in transport at the 
    time the facility discovers that the first shipment is not in 
    compliance with the metal content condition of the exclusion. After 
    this 14-day grace period, WRC may not accept additional materials from 
    that generator until WRC determines that the generator's subsequent 
    sludge shipments will meet the minimum metal content requirements of 
    this variance.
        To ensure that all concentrates covered by this variance are sent 
    to smelters rather than to disposal
    
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    facilities, WRC has also agreed to provide to ADEQ an annual audit, 
    performed by an independent third party mutually acceptable to WRC and 
    ADEQ, to be completed within the six months following the end of each 
    calendar year. The scope of the annual audit will cover WRC's 
    concentrate shipments during the year to certify that all outgoing 
    shipments of concentrate were: (1) Made to metal smelting facilities; 
    (2) documented and shipped in accordance with all applicable U.S. 
    Department of Transportation regulations; and (3) documented to have 
    reached the designated destination.
    
    B. The Value of the Material After It Has Been Partially Reclaimed
    
        The concentrate produced by WRC has a positive economic market 
    value and is purchased by metals smelters. WRC provided sales data to 
    the Agency for the period of January 1, 1994 to June 30, 1995 
    documenting that the facility sold its partially reclaimed material to 
    smelters and received a positive economic value (after taking into 
    account average transportation costs).
    
    C. The Degree to Which the Partially Reclaimed Material is Like an 
    Analogous Raw Material
    
        WRC asserts that its partially reclaimed materials are analogous to 
    virgin ores used as raw materials by metal smelters. WRC's partially 
    reclaimed materials are marketed by WRC as copper, nickel, and tin 
    concentrates. Each concentrate contains various mixes of these metals, 
    as well as precious metals such as gold, silver, platinum and 
    palladium. WRC submitted analytical data to the Agency indicating that 
    its concentrates contain recoverable levels of metals and metals 
    concentrate at levels higher than the metal content specifications for 
    incoming materials for smelters.
        The Agency conducted an analysis comparing the toxic constituents 
    in the metals concentrates managed by WRC with the constituents in 
    analogous virgin ore concentrates. The Agency found, for the most part, 
    that the concentration levels for the toxic constituents found in the 
    WRC concentrates are comparable to the concentrations of toxic 
    constituents typically found in virgin metal concentrates. The 
    exception is cyanide. Metals concentrates reclaimed by WRC have higher 
    concentrations of cyanide than typically found in virgin ore 
    concentrates.
        As a result of its comparative analysis of the toxic constituents 
    in WRC concentrate materials and virgin metal concentrates, as well as 
    the results of a ground water risk screening analysis conducted by the 
    Agency (and explained below), the Agency is proposing to set a limit on 
    the level of cyanide in WRC metals concentrate as a condition of the 
    variance. The Agency is proposing to condition its proposed grant of 
    the variance on the requirement that the level of cyanide in WRC's 
    metal concentrate (produced at the Phoenix facility) is below the best 
    demonstrated available technology (BDAT) treatment standards for 
    cyanide at 40 CFR 268.40 (i.e., 590 ppm cyanide.) For a more detailed 
    discussion of the proposed cyanide limit, see Section E. below.
    
    D. The Extent to Which an End Market for the Partially Reclaimed 
    Material is Guaranteed
    
        The concentrate produced by WRC appears to have a stable long-term 
    market. WRC has multi-year contracts for the sale of its reclaimed 
    materials with at least four smelters. Additional market information 
    provided by WRC indicates that its purchasers have additional excess 
    smelting capacity that exceeds WRC's production capabilities.
    
    E. The Extent to Which the Partially Reclaimed Material is Handled to 
    Minimize Loss
    
        Operations at WRC's Phoenix facility are governed by the CA/CO 
    described in section I.B.2 of this document, and will be covered by a 
    RCRA Part B treatment and storage permit. Incoming material is 
    accompanied by a hazardous waste manifest, and all processing is 
    performed on a concrete pad, with a compacted native soil and flexible 
    membrane liner beneath the pad. Treatment and storage activities prior 
    to shipment off-site are subject to all applicable 40 CFR Part 265 
    standards, including general facility standards, preparedness and 
    prevention, groundwater protection and monitoring, closure and post-
    closure requirements, and financial responsibility.
        The partially reclaimed materials produced by WRC's Phoenix 
    facility are shipped to smelters by either highway or rail. The 
    Department of Transportation (DOT) regulations specify that the 
    materials must be classified and handled as a hazardous material due to 
    the fact that the materials contain nickel hydroxide. Shipments of 
    materials classified by DOT as hazardous materials are subject to the 
    marking, labeling, and shipping requirements of 49 CFR part 172, 
    including the requirement that the materials must be accompanied by a 
    shipping paper, or bill of lading, completed in accordance with Subpart 
    C of 49 CFR part 172. Copies of these papers must be retained by the 
    shipper and carrier for a period of one year.
        WRC has demonstrated that its partially reclaimed metal-bearing 
    sludges are managed in a way that is designed to prevent loss, both at 
    the Phoenix facility and at the smelters. WRC also points out that the 
    company enters into recycling agreements with the generators from whom 
    WRC receives F006 sludge (as well as other metal-bearing sludges). 
    These agreements obligate WRC to recycle all of the wastes and to 
    annually certify to the generators that all shipments of the waste are 
    accepted and recycled. Therefore, WRC has the incentive to handle all 
    incoming wastes in a manner that prevents releases or losses to the 
    environment. WRC also points out that the value of its recycled 
    material represents a significant investment by WRC that can only be 
    recovered by delivering the reclaimed material to smelters in 
    accordance with its sales contracts.
        EPA agrees that the economic value of the partially reclaimed 
    material produced by WRC and the facility's contractual relationships 
    with smelters provide sufficient incentives for WRC to prevent releases 
    to the environment. In addition, the Agency notes that granting this 
    variance may produce environmental benefits by increasing the volume of 
    F006 that is recycled, thus reducing copper and nickel mining which 
    have caused environmental concerns in the past.
        However, to address all concerns about safe handling of WRC 
    concentrate, the Agency is proposing to condition the grant of the 
    variance on the requirement that WRC include a provision in its 
    contractual agreements with metal smelting facilities that smelters 
    receiving partially reclaimed materials from WRC do not store the 
    materials on the land. In this manner, metal concentrates produced by 
    WRC from listed hazardous wastes and transported to smelting facilities 
    will be precluded from land storage. In addition, EPA is proposing to 
    condition the grant of the variance on the requirement that WRC send a 
    one-time notification of the variance and its conditions to any 
    countries where metal smelters accepting WRC concentrate are located.
        To evaluate the potential for releases of cyanide from the 
    partially reclaimed material stored at smelters, the Agency conducted a 
    ground water risk screening analysis to assess the risk levels 
    associated with potential releases of cyanide from electroplating 
    sludges. To accomplish this analysis, EPA conducted a risk screening 
    that modeled total cyanide concentrations of 590
    
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    ppm, the current treatment standard for F006 under the land disposal 
    restriction program (40 CFR 268.40.) The purpose of EPA's risk 
    screening analysis for cyanide in electroplating sludge was to 
    determine whether or not the concentration of cyanide in the ground 
    water at a receptor well down gradient of a waste pile of 
    electroplating sludge will exceed the Federal Drinking Water Standard 
    limit of 0.20 mg/L. The risk screening analysis was performed using 
    EPA's Composite Model for Leachate Migration and with Transformation 
    Products (EPACMTP, EPA 1997, 1996a, 1996b, 1996c).
        The approach used by the Agency in the risk screening analysis 
    assumed two waste management scenarios representing a median or central 
    tendency risk level scenario and a high-end risk scenario. The 
    ``central tendency'' risk level scenario included a waste pile directly 
    on the ground with a total area of 465.40 square meters and located 430 
    meters from the nearest drinking water well. The ``high end value'' 
    risk level scenario simulated a waste pile having a total area of 
    18,575.7 square meters and located 102 meters from the nearest drinking 
    water well. 1
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        \1\ ``Ground Water Risk Screening Analysis for Cyanide in 
    Electroplating Sludge Managed in Waste Piles,'' HydroGeoLogic Inc., 
    June 1997.
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        The results of the model simulations for both scenarios indicated 
    that concentrations of cyanide in the ground water do not exceed the 
    maximum Federal Drinking Water Standard of 0.20 mg/L. The maximum 
    receptor well concentration for the central tendency scenario was zero 
    and that of the high-end scenario was 0.0175 mg/L. The most important 
    parameter responsible for the low concentrations of cyanide in these 
    results is the assumed rapid hydrolysis rate of cyanide, 
    8.4y-1. This rate corresponds to a half-life of 
    approximately 30 days. The model results predict that the cyanide will 
    have been completely transformed before it reaches the receptor in the 
    central tendency scenario. In the high-end case, the ground water 
    travel time is sufficiently short that cyanide reaches the well, 
    although the maximum concentration is below the drinking water 
    standard. If these results are compared to corresponding scenarios that 
    assume no hydrolysis, the maximum receptor well concentration for the 
    central tendency is 0.07 mg/L and the maximum receptor well 
    concentration for the high-end scenario is 17.79 mg/L.2 In 
    the case of no hydrolysis, the predicted concentration of cyanide in 
    ground water exceeds the Federal Drinking Water Standard by a multiple 
    of 0.35 under the central tendency scenario and by a multiple of 88.45 
    under the high-end scenario.
    ---------------------------------------------------------------------------
    
        \2\ Model runs were made with and without the hydrolysis rate to 
    isolate the impact of storage time duration from the overwhelming 
    effect of hydrolysis rate.
    ---------------------------------------------------------------------------
    
        Given these results, the Agency has determined that it is important 
    to establish a limit on the level of cyanide in the partially reclaimed 
    materials produced and sold by WRC. The Agency has decided to establish 
    this limit at 590 ppm cyanide, which was used as the model cyanide 
    concentration in its risk screening analysis. This level is the limit 
    established as the BDAT treatment standard limit under the Land 
    Disposal Restrictions Program. WRC claims that its partially reclaimed 
    product does not exceed a cyanide concentration limit of 590 ppm. The 
    Agency points out that if the partially reclaimed material should 
    exceed the established concentration limit for cyanide and the facility 
    must treat the material to reduce the cyanide concentration, the 
    material would no longer qualify for this variance. Under such 
    circumstances, the material is substantially ``waste-like.'' In 
    addition, the facility would have to manage the material as a RCRA 
    hazardous waste and comply with all applicable hazardous waste 
    management requirements (e.g. storage, transportation, and land 
    disposal restriction (LDR) requirements)).
    
    IV. Summary of the Agency's Proposed Decision
    
        The Agency is proposing to conditionally grant the petitioner's 
    (WRC's) request for a variance from classification as solid waste for 
    the metal concentrate partially reclaimed from materials listed as 
    hazardous waste F006 and F019 received at its Arizona facility, which 
    are sold to metal smelters or other metal recovery facilities after 
    being partially reclaimed by WRC. The Agency is proposing to grant this 
    variance for a time period of five years, subject to the following 
    conditions:
        (1) Metal-bearing sludges F006 and F019 accepted by the facility 
    from off-site and used in the production of the partially reclaimed 
    concentrate materials must have a metals concentration level of no less 
    than two percent on a dry weight basis, or an equivalent economic value 
    in precious metals (e.g., gold, silver, platinum, or palladium). In 
    addition, the facility may only process two shipments of listed sludge 
    materials that do not meet the two percent metals concentration level 
    from a single generator within a 14-day time period before taking 
    action to ensure that subsequent shipments will meet the minimum metal 
    content. Specifically, WRC may not accept more than one non-conforming 
    shipment from a generator, unless the second non-conforming shipment is 
    received within 14 days following the first event. Thereafter, WRC may 
    not accept additional materials from that generator until WRC 
    determines that the generator's subsequent sludge shipments will meet 
    the minimum metal content requirements of this condition.
        (2) WRC shall provide to ADEQ an annual audit, performed by an 
    independent third party mutually acceptable to WRC and ADEQ, to be 
    completed within the six months following the end of each calendar 
    year. The scope of the annual audit will cover WRC's concentrate 
    shipments during the year to certify that all shipments were: (1) Made 
    to metal smelting facilities; (2) documented and shipped in accordance 
    with all applicable U.S. Department of Transportation regulations; and 
    (3) documented to have reached the designated destination.
        (3) The partially reclaimed concentrate materials must have a 
    cyanide concentration of no greater than 590 ppm and may not be placed 
    on the land at metal smelting facilities. To ensure compliance with 
    this condition, WRC must place a provision stipulating no land 
    placement of the materials in its contractual agreements with smelting 
    facilities.
        (4) WRC must send a one-time notification of the variance and its 
    conditions to any country where metal smelters accepting WRC 
    concentrate are located. In addition, WRC must include on its Material 
    Safety Data Sheet shipped with the concentrate a notification that the 
    concentrate may contain up to 590 ppm cyanide and that low pH 
    environments can result in the production of hydrogen cyanide gas.
        The Agency reiterates that this proposed conditional variance from 
    classification as solid waste for the metal concentrate reclaimed from 
    listed hazardous wastes F006 and F019 at WRC's Phoenix, Arizona 
    facility does not affect the regulatory status of any other hazardous 
    wastes handled by WRC at the Phoenix facility. In addition, the 
    proposed variance does not apply to or affect the regulatory status of 
    any wastes managed at any other WRC facility.
    
    V. Request for Comments
    
        The Agency will accept and consider comments on this proposed 
    decision until the date shown at the beginning of this notice. After 
    EPA reviews and considers any public comments received on the proposed 
    decision, the
    
    [[Page 68973]]
    
    Agency will publish a final decision in response to the petition.
    
    VI. Effect of Variance in Arizona
    
        EPA notes that Arizona is authorized to administer and enforce the 
    RCRA hazardous waste program pursuant to section 3006 of RCRA. 
    Generally, when EPA grants a variance under 40 CFR 260.30, the variance 
    would be automatically effective only in unauthorized States. However, 
    there are two circumstances that make this variance effective in the 
    State of Arizona. First, WRC, EPA Region IX and the Arizona Department 
    of Environmental Quality (ADEQ) executed a Consent Agreement and 
    Consent Order (CA/CO) that finalized regulatory requirements for the 
    WRC recycling facility at Phoenix. Under the CA/CO, if EPA makes a 
    favorable decision regarding WRC's petition for a variance, Arizona is 
    obligated to ``honor and give legal effect to the variance 
    determination within the State of Arizona.'' Second, Arizona's 
    regulations at A.A.C. R18-8-260(J) (Supp. 98-2) (which incorporates and 
    modifies 40 CFR 260.30 entitled ``Variances from classification as a 
    solid waste'') provides that ``any person wishing to submit a variance 
    petition shall submit the petition, under this subsection, to EPA. 
    Where the Administrator of EPA has granted a variance from 
    classification as a solid waste under 40 CFR 260.30, 260.31, and 
    260.33, the Director shall accept the determination, provided the 
    Director determines that the action is consistent with the policies and 
    purposes of the HWMA'' (the Hazardous Waste Management Act underlying 
    Arizona's authorized status). Since the Director has made such a 
    determination, no further action will be necessary before the variance 
    takes effect under state law upon promulgation by EPA.
    
    VII. Administrative Requirements:
    
        Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
    action is not a rule of general applicability and therefore is not a 
    ``regulatory action'' subject to review by the Office of Management and 
    Budget. Because this action is a rule of particular applicability 
    relating to a facility, it is not subject to the regulatory flexibility 
    provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), or 
    to sections 202, 204 and 205 of the Unfunded Mandates Reform Act of 
    1995 (UMRA) (Pub. L. 104-4). Because the rule will affect only one 
    facility, it will not significantly or uniquely affect small 
    governments, as specified in section 203 of UMRA, or communities of 
    tribal governments, as specified in Executive Order 13084 (63 FR 27655, 
    May 10, 1998). For the same reason, this 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, as specified 
    in Executive Order 13132 (64 FR 43255, August 10, 1999). This rule also 
    is not subject to Executive Order 13045 (62 FR 19885, April 23, 1997), 
    because it is not economically significant.
        This rule does not involve technical standards; thus, the 
    requirements of section 12(c) of the National Technology Transfer and 
    Advancement Act of 1995 (15 U.S.C. 272 note) do not apply. As required 
    by section 3 of Executive Order 12988 (61 FR 4729, February 7, 1996), 
    in issuing this rule, EPA has taken the necessary steps to eliminate 
    drafting errors and ambiguity, minimize potential litigation, and 
    provide a clear legal standard for affected conduct. EPA has complied 
    with Executive Order 12630 (53 FR 8859, March 15, 1988) by examining 
    the takings implications of the rule in accordance with the ``Attorney 
    General's Supplemental Guidelines for the Evaluation of Risk and 
    Avoidance of Unanticipated Takings'' issued under the executive order. 
    This rule does not impose an information collection burden under the 
    provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
    seq.).
    
        Dated: December 3, 1999.
    Carol M. Browner,
    Administrator.
    [FR Doc. 99-31965 Filed 12-8-99; 8:45 am]
    BILLING CODE 6560-50-U
    
    
    

Document Information

Published:
12/09/1999
Department:
Environmental Protection Agency
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
99-31965
Dates:
EPA will accept public comments on its proposed decision until February 7, 2000.
Pages:
68968-68973 (6 pages)
Docket Numbers:
FRL-6505-5
PDF File:
99-31965.pdf
CFR: (1)
40 CFR 260