IME Environmental Update Significant Regulatory, Legislative,

1
IME Environmental Update Significant Regulatory,
Legislative, Litigation Developments

• Annual Meeting
• October 24th, 2005
• Sofitel Hotel
• Washington, D.C.

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TOPICS OF INTEREST

• Regulatory Program Areas
• Air
• Administrative Reporting Exemption (NOx)
• Powerplant Emissions (Mercury, Clean Air
  Interstate Rule, Particulates)
• New Source Review, PSD
• Stationary Diesel Proposal
• Startup/Shutdown/Malfunction Proposal
• Water
• Headworks Rule
• Unregulated Contaminant Monitoring Rule (UCMR)
• SPCC Reminder

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TOPICS OF INTEREST

• Hazardous Substances
• RCRA Streamlined Permitting
• RCRA Rags/Wipes Exemption
• Mercury-Containing Equipment
• Uniform HazWaste Manifest
• Chemical Regulation
• TRI Burden Reduction Phases II and III, Forms
  Modification
• TSCA Inventory Update Rule
• HPV Program
• GAO Report

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TOPICS OF INTEREST

• Agency Trends Developments
• EPA, DOJ, OSHA Partnership (Consolidated Session)
• Litigation
• The States
• Massachusetts
• Pennsylvania
• International
• EU Thematic Strategies Plan
• AN Added to High Consequence DG List
  (Consolidated Session)

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Regulatory Program Areas - AIR

• Administrative Reporting Exemption (NOx)
  (Proposed)
• 10/4/05 (Comments by 12/5/05)
• Applies to release reporting under CERCLA and
  EPCRA
• Currently, facilities must report NOx releases
  gt10 lbs per 24 hour period
• However, EPA response rarely triggered below
  1,000 lbs. per 24 hour period
• Accordingly, EPA is proposing
• NOx releases lt 1,000 lbs/24 hours exempt from
  reporting
• Does not apply to releases resulting from
• Accidents
• Malfunctions

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Regulatory Program Areas - AIR

• Coal- Fired Powerplant Emissions

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Regulatory Program Areas - AIR

• Clean Air Mercury Rule (CAMR)
• Nationwide cap trade
• Challenged by several states (prefer MACT)
• DC Circuit denied motion for stay (8/4/05)
• 9/13/05 Legislative challenge (Senate Joint
  Resolution 20) failed to pass by Yea-Nay Vote (47
  51)
• However, in a 6/05 letter EPA agreed to
  reconsider its rule abandoning MACT for cap
  trade (but will not stay current rule)

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Regulatory Program Areas - AIR

• Clean Air Interstate Rule (CAIR)
• Cap Trade for SO2, NOx emissions in 28 state
  CAIR region (eastern U.S.)
• EPA has proposed Federal Implementation Plan
  (FIP)
• FIP will apply until states adopt their own
  control programs
• 7/11/05 legal challenges to CAIR filed by states,
  utilities, and environmental groups

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Regulatory Program Areas - AIR

• Particulate Matter
• Background 1990s PM rule implementation
  invalidated by US SCt in 2001. EPA now planning
  to re-implement
• EPA required by consent decree to issue a
  proposal on particle pollution standards by
  12/20/05, and a final rule by 9/27/06
• EPA staff paper recommends stiffer standards for
  fine (PM 2.5) and coarse (PM 10) particulates in
  upcoming periodic review (PM 10 generated by
  mining, etc.)
• However, EPA is not required to make changes to
  existing standards

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Regulatory Program Areas - AIR

• New Source Review (NSR), Prevention of
  Significant Deterioration (PSD)
• NSR program
• EPA will retain current (2003) Equipment
  Replacement Provision (ERP) denied petition for
  reconsideration
• ERP determines what activities are exempt from
  NSR
• Harmonization of NSR uniform emissions test -NSPS
• PSD program
• Protects air quality in clean areas
• EPA completed NOx evaluation
• Determined that PSD program is working no
  changes proposed

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Regulatory Program Areas - AIR

• Stationary Diesel Rule (Proposed)
• 6/29/05 New Source Performance Standards (NSPS)
• Stationary compressed ignition internal
  combustion engines (e.g., used to generate
  electricity for power pumps, compressors,
  emergency flood and fire control systems)
• NSPS controls for new, modified, reconstructed
  engines (same as for non-road diesels)
• NOx
• SO2
• PM
• CO
• Hydrocarbons
• After April 2006 (manufactured, modified,
  reconstructed)

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Regulatory Program Areas - AIR

• Startup/Shutdown/Malfunction Rule (Proposed)
• Would amend General Provisions NESHAPS rule to
  allow public access to startup/shutdown/malfunctio
  n plans (SSM plans)
• Plan specifies how the facility will minimize
  emissions during these operations

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Regulatory Program Areas - WATER

• Headworks Rule (Final)
• Wastewater Treatment Exemptions for HazWaste
  Mixtures
• Final Rule
• Adds benzene and 2-ethoxyethanol to list of
  exempt solvents
• Exempts scrubber water from combustion of
  exempted solvents
• Operators may measure solvent levels at the
  headworks of the WWTS
• De minimis exemption expanded to other listed
  wastes

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Regulatory Program Areas - WATER

• Unregulated Contaminant Monitoring Rule (UCMR)
• 8/12/05
• UCMR used to collect data on chemicals on the
  Contaminant Candidate List (CCL)
• UCMR II list includes 1,3-dinitrobenzene, TNT,
  RDX, and Perchlorate (2007-2010)
• EPA uses data to determine if regulation is
  warranted

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Regulatory Program Areas - WATER

• Spill Prevention Control Countermeasures Plans
  (SPCC) REMINDER
• Compliance dates
• February 17, 2006, to amend an existing SPCC Plan
• August 18, 2006, to implement the Plan
• Affected facilities that start operations between
  August 16, 2002 and August 18, 2006, must prepare
  and implement an SPCC Plan by August 18, 2006

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Regulatory Program Areas - HAZARDOUS SUBSTANCES

• RCRA Streamlined Permitting Rule (Final)
• Standardized Permit (9/8/05)
• Facilities that generate store, or
  non-thermally treat HazWaste on-site in tanks,
  containers, and containment buildings
• Also available to facilities that receive
  HazWaste generated off-site by a generator under
  the same ownership as the receiving facility

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Regulatory Program Areas - HAZARDOUS SUBSTANCES

• RCRA Streamlined Permitting Rule (Final) -
  cont'd
• The standardized permit will streamline the
  permitting process by allowing facilities to
  obtain and modify permits more easily
• Would contain standard conditions based on the
  requirements of Part 267. Some changes would not,
  therefore, require a permit modification
• Other routine changes would not require prior
  agency approval

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Regulatory Program Areas - HAZARDOUS SUBSTANCES

• RCRA Streamlined Permitting Rule (Final)
• cont'd
• Standardized Permit (2 parts)
• Uniform portion included in all cases
• Supplemental portion included at permitting
  authoritys discretion (corrective action and
  site-specific requirements)
• Obtaining the Standardized Permit
• pre-application public meeting
• Notice of Intent and supporting materials
• Request permitting authority to modify existing
  permit to exclude units eligible for a
  standardized permit

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Regulatory Program Areas HAZARDOUS SUBSTANCES

• RCRA Rags/Wipes Exemption
• Proposed rule November 2003
• Applies to 2 types of wipes
• Disposable rule would conditionally exclude
  disposable wipes from definition of hazardous
  waste
• Reusable rule would conditionally exclude
  reusable wipes from the definition of solid waste
• Final action delayed until October 2006
  (challenge of undue influence by interested party
  resolved)

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Regulatory Program Areas - HAZARDOUS SUBSTANCES

• Mercury Containing Equipment Rule (Final)
• Added to Universal Waste Rule
• UWs subject to less stringent standards for
  storing, transporting, collecting
• Thermometers, barometers, mercury switches

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Regulatory Program Areas - HAZARDOUS SUBSTANCES

• Uniform HazWaste Manifest
• Nationwide, standard manifest form and
  continuation sheet
• New forms must be used as of September 5, 2006
  until this date old forms must be used
• EPA published corrections to final rule fixing
  conflict w/DOT rules (EPA mistakenly included DOT
  marking requirement in generator section of
  manifest rule)

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Regulatory Program Areas - CHEMICAL REGULATION

• TRI Phase II Burden Reduction (Proposal)
• Announced 9/21/05
• Expands use of (short) Form A Certification
• PBT Chemicals (except dioxins)
• Quantities do not exceed 1M. lb. reporting
  threshold
• Zero disposal or other releases
• Facilities do not manage over 500lbs by
  treatment, energy recovery, or recycling
• Non-PBT Chemicals
• Annual Reporting Amount (Total Production Related
  Waste) is under 5,000 lbs. (Current threshold is
  500 lbs.)
• Applies to individual chemicals, e.g., if 4
  chemicals are reported under TRI, each must be
  evaluated to determine the proper form (A or R).

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Regulatory Program Areas - CHEMICAL REGULATION

• TRI Phase III Burden Reduction - TRI Frequency of
  Reporting (ANPRM and Notice)
• ANPRM and Notice to Congress (9/21/05)
• Would change frequency to every 2 years
  (alternate year reporting)
• Section 313(i) requires finding that change in
  reporting frequency is consistent w/purpose of
  TRI
• EPA must delay rulemaking for 12 months after
  notice to Congress

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Regulatory Program Areas - CHEMICAL REGULATION

• TRI Reporting Forms Modification Rule (Final)
• July 12, 2005
• Makes changes to redundant and seldom used data
• Eliminates location information (lat. long.)
• Eliminates regulatory i.d. codes (program i.d.
  and permit numbers EPA has other sources for
  info.)
• Minor reporting changes for waste mgmt.
  activities (e.g., range reporting for waste
  treatment efficiency estimates)
• Simplified reporting of pollution prevention
  activity

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Regulatory Program Areas - CHEMICAL REGULATION

• TSCA Inventory Update Rule (IUR)
• Background
• 2003 amendment to IUR
• Changed reporting cycle from 4 to 5 years
• Eased requirements for low-volume manufacturers
• Increased requirements for manufacturers of
  gt300,000 lbs. of affected chemicals including
  exposure information
• This fall EPA will announce the deadline for
  submission of 2006 reports (2005 data)

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Regulatory Program Areas - CHEMICAL REGULATION

• High Production Volume (HPV) Chemical Program
• HPV Challenge Program chemicals - chemicals with
  U.S. annual production or import volumes /gt 1M
  lbs reported to EPA in the 1990, 1994 Inventory
  Update Rules (IUR)
• First HPV Test Rule
• 9/9/05 Final Rule sent to OMB (proposed 12/00)
• IME chemicals of interest were not included in
  12/00 proposal b/c of industry decision to
  voluntarily sponsor the chemicals (NG, PETN)

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Regulatory Program Areas - CHEMICAL REGULATION

• HPV Chemical Program (contd)
• Second HPV Test Rule
• Proposal in 2006
• Could include IME chemicals of interest still on
  orphan HPV list
• IME chemicals remaining on the HPV list include,
• RDX
• EGDN
• DEGDN

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Regulatory Program Areas - CHEMICAL REGULATION

• HPV Chemical Program (contd)
• Interagency Testing Committee (ITC)
• 9/19/05 Interagency Testing Committee (ITC) (56th
  Report) announces it has completed data
  availability studies for 235 new HPV chemicals
• The 235 chemicals were not in the 1990,1994 IURs
  but are included in the 1998 and 2002 IURs
• No new IME chemicals of concern (?)

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Regulatory Program Areas - CHEMICAL REGULATION

• HPV Chemical Program (contd)
• Third Rule?
• ACC, SOCMA announced an extended HPV program
  (EHPV) to cover 500 chemicals qualifying as new
  HPV chemicals in the 2002 IUR

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Regulatory Program Areas - CHEMICAL REGULATION

• Government Accounting Office (GAO) Report
• 7/13/05
• Recommends to Congress that TSCA be amended
• Provide explicit authority for EPA to enter into
  enforceable consent agreements under which
  chemical companies are required to conduct
  testing
• Give EPA, in addition to its current authorities
  under section 4 of TSCA, the authority to require
  chemical manufacturers and processors to develop
  test data based on substantial production volume
  and the necessity for testing

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Regulatory Program Areas - CHEMICAL REGULATION

• Government Accounting Office (GAO) Report
  (cont'd)
• authorize EPA to share with states and foreign
  governments CBI that chemical companies provide
  to EPA, subject to regulations to be established
  by EPA in consultation with the chemical industry
  and other interested parties, that would set
  forth the procedures to be followed by all
  recipients of the information in order to protect
  the information from unauthorized disclosure

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Regulatory Program Areas - CHEMICAL REGULATION

• Government Accounting Office (GAO) Report
  (cont'd)
• Recommendations to EPA
• implement a methodology for using information
  collected through the HPV Challenge Program to
  prioritize chemicals for further review and
  identify and obtain additional information needed
  to assess their risks
• promulgate a rule under section 8 of TSCA
  requiring chemical companies to submit to EPA
  copies of any health and safety studies, as well
  as other information concerning the environmental
  and health effects of chemicals, that they submit
  to foreign governments on chemicals that the
  companies manufacture or process in, or import to
  the United States

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Regulatory Program Areas - CHEMICAL REGULATION

• Government Accounting Office (GAO) Report
  (cont'd)
• develop a strategy for improving and validating,
  for regulatory purposes, the models that EPA uses
  to assess and predict the risks of chemicals and
  to inform regulatory decisions on the production,
  use, and disposal of the chemicals
• revise its regulations to require that companies
  reassert claims of confidentiality submitted to
  EPA under TSCA within a certain time period after
  the information is initially claimed as
  confidential

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Regulatory Program Areas - CHEMICAL REGULATION

• Government Accounting Office (GAO) Report
  (cont'd)
• EPA response did not disagree, but maintains it
  already has sufficient authorities under TSCA
  (other substantive comments submitted to GAO)
• Legislation Watch The Child, Worker, and
  Consumer-Safe Chemicals Act of 2005 (Jeffords
  (I-Vt.), Lautenberg (D-NJ))
• WWW.GAO.GOV

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LITIGATION
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THE STATES - Massachusetts

• RDX Proposal
• Cancer slope factor
• U.S. Army research
• Nitrate Contamination
• Draft report on perchlorate sources
• Correlation b/w perchlorate and nitrate
  contamination

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THE STATES - Pennsylvania

• Powerplant Emissions
• 8/16/05 PA Environmental Quality Board approved
  citizen petition
• Will require coal-fired powerplants to reduce
  mercury emissions by 90 (federal CAMR is 70 by
  2020)
• SIP revision expected in November, 2005
• PA is 2nd highest mercury emitter in U.S.
• Rule will affect 39 plants

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INTERNATIONAL

• EU Thematic Strategies (2002 6th Environmental
  Action Plan)
• 7/20/05 EU Commission voted to move forward
• This fall initiatives will be introduced to
  upgrade environmental policy in 4 specific areas
• Air quality
• Marine pollution
• Pesticides
• Waste

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• Recognizing that the earth's resources are
  limited, that life on this planet depends on
  those resources, and that responsible management
  of the environment is essential for the
  preservation of our quality of life, the
  International Society of Explosives Engineers has
  adopted the following Environmental
  Statement1. The Society believes that
  responsible management of our environment is good
  business and good public policy.2. The Society
  urges its members to exercise responsible
  management of the environment in all
  activities.3. The Society encourages its members
  to meet or exceed all environmental laws and
  regulations.4. The Society believes that
  environmental law must be based on sound
  scientific, engineering, and medical research and
  principles.5. The Society will work with and
  encourage its members to work with community
  leaders, public policymakers and regulators to
  make available expertise to help in shaping
  environmental policy.6. The Society encourages
  its members to work to improve the environment
  when possible by supporting programs that protect
  and develop clean air, clean water, pleasing
  landscapes and proper wildlife habitats.The
  Society encourages its members to participate in
  communicating to the public the importance to
  society of an environmentally responsible
  explosives industry and in educating the youth of
  our country about the benefits of safe, secure,
  controlled and environmentally responsible use of
  explosives for the benefit of mankind.

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Environmental Update

• The END