19–006 

112TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 112–654 

HAZARDOUS WASTE ELECTRONIC MANIFEST 

ESTABLISHMENT ACT 

SEPTEMBER 10, 2012.—Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 

Mr. UPTON, from the Committee on Energy and Commerce, 

submitted the following 

R E P O R T 

[To accompany S. 710] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Energy and Commerce, to whom was referred 

the bill (S. 710) to amend the Solid Waste Disposal Act to direct 

the Administrator of the Environmental Protection Agency to establish a hazardous waste electronic manifest system, having considered the same, report favorably thereon with an amendment and 

recommend that the bill as amended do pass. 

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 5 

Background and Need for Legislation .................................................................... 6 

Hearings ................................................................................................................... 7 

Committee Consideration ........................................................................................ 7 

Commitee Votes ....................................................................................................... 7 

Committee Oversight Findings ............................................................................... 7 

Statement of General Performance, Goals and Objectives ................................... 7 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 8 

Earmarks .................................................................................................................. 8 

Committee Cost Estimate ....................................................................................... 8 

Congressional Budget Office Estimate ................................................................... 8 

Federal Mandates Statement ................................................................................. 11 

Advisory Committee Statement .............................................................................. 11 

Applicability to Legislative Branch ........................................................................ 11 

Section-by-Section Analysis of Legislation ............................................................ 11 

Changes in Existing Law Made by the Bill, as Reported ..................................... 13 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 


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SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Hazardous Waste Electronic Manifest Establishment Act’’. 

SEC. 2. HAZARDOUS WASTE ELECTRONIC MANIFEST SYSTEM. 

(a) IN GENERAL.—Subtitle C of the Solid Waste Disposal Act (42 U.S.C. 6921 et 

seq.) is amended by adding at the end the following: 

‘‘SEC. 3024. HAZARDOUS WASTE ELECTRONIC MANIFEST SYSTEM. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) BOARD.—The term ‘Board’ means the Hazardous Waste Electronic Manifest System Advisory Board established under subsection (f). 

‘‘(2) FUND.—The term ‘Fund’ means the Hazardous Waste Electronic Manifest 

System Fund established by subsection (d). 

‘‘(3) PERSON.—The term ‘person’ includes an individual, corporation (including 

a Government corporation), company, association, firm, partnership, society, 

joint stock company, trust, municipality, commission, Federal agency, State, political subdivision of a State, or interstate body. 

‘‘(4) SYSTEM.—The term ‘system’ means the hazardous waste electronic manifest system established under subsection (b). 

‘‘(5) USER.—The term ‘user’ means a hazardous waste generator, a hazardous 

waste transporter, an owner or operator of a hazardous waste treatment, storage, recycling, or disposal facility, or any other person that— 

‘‘(A) is required to use a manifest to comply with any Federal or State 

requirement to track the shipment, transportation, and receipt of hazardous 

waste or other material that is shipped from the site of generation to an 

off-site facility for treatment, storage, disposal, or recycling; and 

‘‘(B)(i) elects to use the system to complete and transmit an electronic 

manifest format; or 

‘‘(ii) submits to the system for data processing purposes a paper copy of 

the manifest (or data from such a paper copy), in accordance with such regulations as the Administrator may promulgate to require such a submission. 

‘‘(b) ESTABLISHMENT.—Not later than 3 years after the date of enactment of this 

section, the Administrator shall establish a hazardous waste electronic manifest system that may be used by any user. 

‘‘(c) USER FEES.— ‘‘(1) IN GENERAL.—In accordance with paragraph (4), the Administrator may 

impose on users such reasonable service fees as the Administrator determines 

to be necessary to pay costs incurred in developing, operating, maintaining, and 

upgrading the system, including any costs incurred in collecting and processing 

data from any paper manifest submitted to the system after the date on which 

the system enters operation. 

‘‘(2) COLLECTION OF FEES.—The Administrator shall— 

‘‘(A) collect the fees described in paragraph (1) from the users in advance 

of, or as reimbursement for, the provision by the Administrator of systemrelated services; and 

‘‘(B) deposit the fees in the Fund. 

‘‘(3) FEE STRUCTURE.— 

‘‘(A) IN GENERAL.—The Administrator, in consultation with information 

technology vendors, shall determine through the contract award process described in subsection (e) the fee structure that is necessary to recover the 

full cost to the Administrator of providing system-related services, including— 

‘‘(i) contractor costs relating to— 

‘‘(I) materials and supplies; 

‘‘(II) contracting and consulting; 

‘‘(III) overhead; 

‘‘(IV) information technology (including costs of hardware, software, and related services); 

‘‘(V) information management; 

‘‘(VI) collection of service fees; 

‘‘(VII) reporting and accounting; and 

‘‘(VIII) project management; and 

‘‘(ii) costs of employment of direct and indirect Government personnel 

dedicated to establishing, managing, and maintaining the system. 

‘‘(B) ADJUSTMENTS IN FEE AMOUNT.— 

‘‘(i) IN GENERAL.—The Administrator, in consultation with the Board, 

shall increase or decrease the amount of a service fee determined under 

the fee structure described in subparagraph (A) to a level that will— 


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‘‘(I) result in the collection of an aggregate amount for deposit in 

the Fund that is sufficient and not more than reasonably necessary 

to cover current and projected system-related costs (including any 

necessary system upgrades); and 

‘‘(II) minimize, to the maximum extent practicable, the accumulation of unused amounts in the Fund. 

‘‘(ii) EXCEPTION FOR INITIAL PERIOD OF OPERATION.—The requirement 

described in clause (i)(II) shall not apply to any additional fees that accumulate in the Fund, in an amount that does not exceed $2,000,000, 

during the 3-year period beginning on the date on which the system enters operation. 

‘‘(iii) TIMING OF ADJUSTMENTS.—Adjustments to service fees described 

in clause (i) shall be made— 

‘‘(I) initially, at the time at which initial development costs of the 

system have been recovered by the Administrator such that the 

service fee may be reduced to reflect the elimination of the system 

development component of the fee; and 

‘‘(II) periodically thereafter, upon receipt and acceptance of the 

findings of any annual accounting or auditing report under subsection (d)(3), if the report discloses a significant disparity for a fiscal year between the funds collected from service fees under this 

subsection for the fiscal year and expenditures made for the fiscal 

year to provide system-related services. 

‘‘(4) CREDITING AND AVAILABILITY OF FEES.—Fees authorized under this section shall be collected and available for obligation only to the extent and in the 

amount provided in advance in appropriations Acts. 

‘‘(d) HAZARDOUS WASTE ELECTRONIC MANIFEST SYSTEM FUND.— 

‘‘(1) ESTABLISHMENT.—There is established in the Treasury of the United 

States a revolving fund, to be known as the ‘Hazardous Waste Electronic Manifest System Fund’, consisting of such amounts as are deposited in the Fund 

under subsection (c)(2)(B). 

‘‘(2) EXPENDITURES FROM FUND.— 

‘‘(A) IN GENERAL.—Only to the extent provided in advance in appropriations Acts, on request by the Administrator, the Secretary of the Treasury 

shall transfer from the Fund to the Administrator amounts appropriated to 

pay costs incurred in developing, operating, maintaining, and upgrading the 

system under subsection (c). 

‘‘(B) USE OF FUNDS BY ADMINISTRATOR.—Fees collected by the Administrator and deposited in the Fund under this section shall be available to 

the Administrator subject to appropriations Acts for use in accordance with 

this section without fiscal year limitation. 

‘‘(C) OVERSIGHT OF FUNDS.—The Administrator shall carry out all necessary measures to ensure that amounts in the Fund are used only to carry 

out the goals of establishing, operating, maintaining, upgrading, managing, 

supporting, and overseeing the system. 

‘‘(3) ACCOUNTING AND AUDITING.— 

‘‘(A) ACCOUNTING.—For each 2-fiscal-year period, the Administrator shall 

prepare and submit to the Committee on Environment and Public Works 

and the Committee on Appropriations of the Senate and the Committee on 

Energy and Commerce and the Committee on Appropriations of the House 

of Representatives a report that includes— 

‘‘(i) an accounting of the fees paid to the Administrator under subsection (c) and disbursed from the Fund for the period covered by the 

report, as reflected by financial statements provided in accordance 

with— 

‘‘(I) the Chief Financial Officers Act of 1990 (Public Law 101– 

576; 104 Stat. 2838) and amendments made by that Act; and 

‘‘(II) the Government Management Reform Act of 1994 (Public 

Law 103–356; 108 Stat. 3410) and amendments made by that Act; 

and 

‘‘(ii) an accounting describing actual expenditures from the Fund for 

the period covered by the report for costs described in subsection (c)(1). 

‘‘(B) AUDITING.— 

‘‘(i) IN GENERAL.—For the purpose of section 3515(c) of title 31, 

United States Code, the Fund shall be considered a component of an 

Executive agency. 

‘‘(ii) COMPONENTS OF AUDIT.—The annual audit required in accordance with sections 3515(b) and 3521 of title 31, United States Code, of 


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the financial statements of activities carried out using amounts from 

the Fund shall include an analysis of— 

‘‘(I) the fees collected and disbursed under this section; 

‘‘(II) the reasonableness of the fee structure in place as of the 

date of the audit to meet current and projected costs of the system; 

‘‘(III) the level of use of the system by users; and 

‘‘(IV) the success to date of the system in operating on a self-sustaining basis and improving the efficiency of tracking waste shipments and transmitting waste shipment data. 

‘‘(iii) FEDERAL RESPONSIBILITY.—The Inspector General of the Environmental Protection Agency shall— 

‘‘(I) conduct the annual audit described in clause (ii); and 

‘‘(II) submit to the Administrator a report that describes the findings and recommendations of the Inspector General resulting from 

the audit. 

‘‘(e) CONTRACTS.— 

‘‘(1) AUTHORITY TO ENTER INTO CONTRACTS FUNDED BY SERVICE FEES.—The 

Administrator may enter into 1 or more information technology contracts with 

entities determined to be appropriate by the Administrator (referred to in this 

subsection as ‘contractors’) for the provision of system-related services. 

‘‘(2) TERM OF CONTRACT.—A contract awarded under this subsection shall 

have a term of not more than 10 years. 

‘‘(3) ACHIEVEMENT OF GOALS.—The Administrator shall ensure, to the maximum extent practicable, that a contract awarded under this subsection— 

‘‘(A) is performance-based; 

‘‘(B) identifies objective outcomes; and 

‘‘(C) contains performance standards that may be used to measure 

achievement and goals to evaluate the success of a contractor in performing 

under the contract and the right of the contractor to payment for services 

under the contract, taking into consideration that a primary measure of 

successful performance shall be the development of a hazardous waste electronic manifest system that— 

‘‘(i) meets the needs of the user community (including States that 

rely on data contained in manifests); 

‘‘(ii) attracts sufficient user participation and service fee revenues to 

ensure the viability of the system; 

‘‘(iii) decreases the administrative burden on the user community; 

and 

‘‘(iv) provides the waste receipt data applicable to the biennial reports 

required by section 3002(a)(6). 

‘‘(4) PAYMENT STRUCTURE.—Each contract awarded under this subsection 

shall include a provision that specifies— 

‘‘(A) the service fee structure of the contractor that will form the basis 

for payments to the contractor; and 

‘‘(B) the fixed-share ratio of monthly service fee revenues from which the 

Administrator shall reimburse the contractor for system-related development, operation, and maintenance costs. 

‘‘(5) CANCELLATION AND TERMINATION.— 

‘‘(A) IN GENERAL.—If the Administrator determines that sufficient funds 

are not made available for the continuation in a subsequent fiscal year of 

a contract entered into under this subsection, the Administrator may cancel 

or terminate the contract. 

‘‘(B) NEGOTIATION OF AMOUNTS.—The amount payable in the event of cancellation or termination of a contract entered into under this subsection 

shall be negotiated with the contractor at the time at which the contract 

is awarded. 

‘‘(6) NO EFFECT ON OWNERSHIP.—Regardless of whether the Administrator enters into a contract under this subsection, the system shall be owned by the 

Federal Government. 

‘‘(f) HAZARDOUS WASTE ELECTRONIC MANIFEST SYSTEM ADVISORY BOARD.— 

‘‘(1) ESTABLISHMENT.—Not later than 3 years after the date of enactment of 

this section, the Administrator shall establish a board to be known as the ‘Hazardous Waste Electronic Manifest System Advisory Board’. 

‘‘(2) COMPOSITION.—The Board shall be composed of 9 members, of which— 

‘‘(A) 1 member shall be the Administrator (or a designee), who shall serve 

as Chairperson of the Board; and 

‘‘(B) 8 members shall be individuals appointed by the Administrator— 

‘‘(i) at least 2 of whom shall have expertise in information technology; 


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‘‘(ii) at least 3 of whom shall have experience in using or represent 

users of the manifest system to track the transportation of hazardous 

waste under this subtitle (or an equivalent State program); and 

‘‘(iii) at least 3 of whom shall be a State representative responsible 

for processing those manifests. 

‘‘(3) DUTIES.—The Board shall meet annually to discuss, evaluate the effectiveness of, and provide recommendations to the Administrator relating to, the 

system. 

‘‘(g) REGULATIONS.— ‘‘(1) PROMULGATION.— ‘‘(A) IN GENERAL.—Not later than 1 year after the date of enactment of 

this section, the Administrator shall promulgate regulations to carry out 

this section. 

‘‘(B) INCLUSIONS.—The regulations promulgated pursuant to subparagraph (A) may include such requirements as the Administrator determines 

to be necessary to facilitate the transition from the use of paper manifests 

to the use of electronic manifests, or to accommodate the processing of data 

from paper manifests in the electronic manifest system, including a requirement that users of paper manifests submit to the system copies of the paper 

manifests for data processing purposes. 

‘‘(C) REQUIREMENTS.—The regulations promulgated pursuant to subparagraph (A) shall ensure that each electronic manifest provides, to the same 

extent as paper manifests under applicable Federal and State law, for— 

‘‘(i) the ability to track and maintain legal accountability of— 

‘‘(I) the person that certifies that the information provided in the 

manifest is accurately described; and 

‘‘(II) the person that acknowledges receipt of the manifest; 

‘‘(ii) if the manifest is electronically submitted, State authority to access paper printout copies of the manifest from the system; and 

‘‘(iii) access to all publicly available information contained in the 

manifest. 

‘‘(2) EFFECTIVE DATE OF REGULATIONS.—Any regulation promulgated by the 

Administrator under paragraph (1) and in accordance with section 3003 relating 

to electronic manifesting of hazardous waste shall take effect in each State as 

of the effective date specified in the regulation. 

‘‘(3) ADMINISTRATION.—The Administrator shall carry out regulations promulgated under this subsection in each State unless the State program is fully authorized to carry out such regulations in lieu of the Administrator. 

‘‘(h) REQUIREMENT OF COMPLIANCE WITH RESPECT TO CERTAIN STATES.—In any 

case in which the State in which waste is generated, or the State in which waste 

will be transported to a designated facility, requires that the waste be tracked 

through a hazardous waste manifest, the designated facility that receives the waste 

shall, regardless of the State in which the facility is located— 

‘‘(1) complete the facility portion of the applicable manifest; 

‘‘(2) sign and date the facility certification; and 

‘‘(3) submit to the system a final copy of the manifest for data processing purposes. 

‘‘(i) AUTHORIZATION FOR START-UP ACTIVITIES.—There are authorized to be appropriated $2,000,000 for each of fiscal years 2013 through 2015 for start-up activities 

to carry out this section, to be offset by collection of user fees under subsection (c) 

such that all such appropriated funds are offset by fees as provided in subsection 

(c).’’. 

(b) CONFORMING AMENDMENT.—The table of contents of the Solid Waste Disposal 

Act (42 U.S.C. 6901) is amended by inserting at the end of the items relating to 

subtitle C the following: 

‘‘Sec. 3024. Hazardous waste electronic manifest system.’’. 

PURPOSE AND SUMMARY

This legislation amends Subtitle C of the Solid Waste Disposal 

Act, otherwise known as the Resource Conservation and Recovery 

Act (RCRA), to direct the Administrator of the Environmental Protection Agency (EPA) to establish a hazardous waste electronic 

manifest system (system). The legislation requires EPA to create, 

through the use of one or more performance-based and goal-oriented contracts with outside vendors, a system that may be used 

at the option of any entity required to complete or file a hazardous 


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1http://www.epa.gov/wastes/hazard/transportation/manifest/index.htm. 

waste manifest. S. 710 also authorizes EPA to establish and collect 

fees paid by users of the system, and deposit those fees into a fund 

solely to pay the costs of the system. The bill also requires EPA to 

create a Hazardous Waste Electronic Manifest System Governing 

Board to evaluate the manifest system and to periodically report on 

the financial status of the fund to Congress. In addition, the bill 

requires EPA’s Inspector General to perform an annual audit of the 

system, including an evaluation of the reasonableness of the fees. 

The amendment adopted by the Committee allows the fees to be 

collected and obligated, in accordance with appropriations acts and 

only for use on the system. It also authorizes start-up activities to 

be funded in advance of collection of fees, such that all program 

costs are offset by fee collection. By contrast, S. 710, as passed by 

the Senate, provides for mandatory spending and fee collection not 

subject to appropriations acts. Finally, the amendment deletes certain contract details specified in S. 710 as approved by the Senate. 

BACKGROUND AND NEED FOR LEGISLATION

Subtitle C of RCRA establishes a Federal program to regulate 

hazardous waste management and disposal. Section 3002 of RCRA 

requires use of a manifest system to assure that hazardous waste 

generated is designated for treatment, storage, or disposal in, and 

arrives at, treatment, storage, or disposal facilities. Since 1980, 

EPA has required use of the Hazardous Waste Manifest System 

(HWMS), a set of multi-copy paper forms, reports, and procedures 

designed to track hazardous waste from the time it leaves the facility where it was generated until it reaches the off-site waste management facility that will store, treat, or dispose of it. 

In order to verify that waste has been properly delivered, and 

that no waste is lost or unaccounted for in the process, paper copies 

of the manifest must accompany the waste as it is transported. 

Once the waste reaches its destination, the receiving facility must 

mail a signed paper copy of the manifest to the generator to be 

kept on file confirming that the waste has been received by the designated facility.1 Some States have additional submission mandates. 

EPA requires that the manifest contain information on the type 

and quantity of the waste being transported, instructions for handling the waste, and signatures for all parties involved in the disposal process, from original generator to final disposer. 

In the event of an emergency or release of hazardous waste the 

manifest can provide response personnel with a variety of useful 

information, including data on the hazardous waste’s potential to 

threaten human health and the environment. 

Notwithstanding the 2006 changes, EPA has stated that the 

paper hazardous waste manifest burden constitutes the most expensive paperwork requirement EPA imposes under Subtitle C of 

the RCRA. The EPA estimates that the cost of the paperwork burden on States and private entities from manifests to be from $193 

million to over $400 million annually. 

Besides eliminating most of the manual processing steps involved 

with the paper-driven system, EPA also believes an electronic system will produce better quality data, provide nearly real-time 


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2 EPA testimony before Subcommittee on Environment and the Economy, June 21, 2012. 

tracking, serve as a single point of contact for both Federal and 

State required manifest data reporting, and reduce the need for onsite labor intensive inspection of paper records.2

HEARINGS

On June 21, 2012, the Subcommittee on Environment and the 

Economy held a hearing entitled ‘‘Electronic Submissions of Hazardous Waste Manifests—Modernizing for the 21st Century.’’ The 

Subcommittee received testimony from Suzanne Rudzinski, Director, Office of Resource Conservation and Recovery, Office of Solid 

Waste and Emergency Response, U.S. Environmental Protection 

Agency; Lisa Silvia, Senior Waste Inspector, Virginia Department 

of Environmental Quality, on behalf of the Association of State and 

Territorial Solid Waste Management Officials; and David Case, Executive Director, Environmental Technology Council. Witnesses discussed S. 710 and EPA detailed the new statutory authority it 

would need to establish an electronic system. 

COMMITTEE CONSIDERATION

S. 710 was referred to the Committee on Energy and Commerce, 

and Representative John Shimkus, Chairman of the Subcommittee 

on Environment and the Economy, distributed an amendment in 

the nature of a substitute to S. 710 on July 24, 2012. 

On July 26, 2012, the Subcommittee on Environment and the 

Economy met in open markup session to consider S. 710. Only one 

amendment, Representative Shimkus’ amendment in the nature of 

a substitute, was offered, and it was adopted by a voice vote. The 

Subcommittee on Environment and the Economy ordered S. 710 favorably reported, as amended, to the full Committee by a voice 

vote. 

On July 31, 2012, the Committee on Energy and Commerce met 

in open markup session to consider S. 710, as amended by the Subcommittee on Environment and the Economy. No amendments 

were offered to S. 710, and the Committee ordered S. 710 favorably 

reported to the House, as amended. 

COMMITTEE VOTES

In compliance with clause 3(b) of rule XIII of the Rules of the 

House of Representatives, S. 710 was reported by voice vote with 

a majority quorum present. There was no request for a recorded 

vote. 

COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee made findings that are reflected 

in this report. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

S. 710, the ‘‘Hazardous Waste Electronic Manifest Establishment 

Act,’’ facilitates creation of a system for electronic submission and 

tracking of hazardous waste manifests pursuant to Subtitle C of 


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RCRA. The legislation requires EPA to create, through the use of 

one or more performance-based and goal-oriented contracts with 

outside vendors, a system that may be used by any entity required 

to complete or file a manifest. Subject to appropriations, S. 710 authorizes EPA to establish and collect a user fee to pay for building, 

operating, upgrading, and maintaining the system. S. 710 also requires EPA to create a Hazardous Waste Electronic Manifest System Board to evaluate the manifest system; periodically report on 

the financial status of the fund to Congress; and have EPA’s Inspector General provide an accounting of the actual expenditures 

from the fund. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee finds that S. 710, the 

‘‘Hazardous Waste Electronic Manifest Establishment Act,’’ as 

amended by the Committee on Energy and Commerce, would result 

in no new or increased budget authority, no entitlement authority, 

and no tax expenditures. Revenues collected from system users 

would fully offset new budget authority. 

EARMARKS

In compliance with clause 9(e), 9(f), and 9(g) of rule XXI of the 

Rules of the House of Representatives, the Committee finds that S. 

710, the ‘‘Hazardous Waste Electronic Manifest Establishment 

Act,’’ as amended by the Committee on Energy and Commerce, contains no earmarks, limited tax benefits, or limited tariff benefits. 

COMMITTEE COST ESTIMATE

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974. 

AUGUST 21, 2012. 

Hon. FRED UPTON, 

Chairman, Committee on Energy and Commerce, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 710, the Hazardous Waste 

Electronic Manifest Establishment Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Susanne S. Mehlman. 

Sincerely, 

DOUGLAS W. ELMENDORF. 

Enclosure. 

S. 710—Hazardous Waste Electronic Manifest Establishment Act 

Summary: S. 710 would direct the Environmental Protection 

Agency (EPA) to establish an electronic manifest system to track 

the handling of hazardous waste. This legislation would authorize 

the appropriation of $6 million over the 2013–2015 period for EPA 

to establish the system. In addition, subject to provisions in future 


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appropriations acts, this legislation would authorize EPA to collect 

user fees to offset the cost of developing, operating, and maintaining the system. 

Under current law, individuals who handle hazardous waste 

must prepare a paper manifest that completely documents how 

hazardous waste is disposed of from the time it is generated 

through treatment, storage, and disposal. Under S. 710, generators 

and transporters of hazardous waste and the owners and operators 

of facilities that treat, store, or dispose of hazardous waste could 

elect to use the proposed electronic manifest system or the existing 

paper system. 

Subject to appropriation of the necessary amounts, CBO esti- mates that over the 2013–2017 period, EPA would spend about $15 

million to create the electronic manifest system. We also estimate 

that EPA would collect user fees totaling $12 million over that 

same period. Thus, CBO estimates that implementing this legislation would have a net cost of $3 million over the 2013–2017 period. 

Pay-as-you-go procedures do not apply to S. 710 because the legislation would not affect direct spending or revenues. 

S. 710 would impose intergovernmental and private-sector mandates, as defined in the Unfunded Mandates Reform Act (UMRA), 

on facilities that handle hazardous waste. CBO estimates that the 

cost of the mandates would fall below the annual thresholds established in UMRA ($73 million for intergovernmental mandates and 

$146 million for private-sector mandates in 2012, adjusted annually for inflation). 

Estimated cost to the Federal Government: The estimated budgetary impact of S. 710 is shown in the following table. The costs 

of this legislation fall within budget function 300 (natural resources 

and environment). 

By fiscal year, in millions of dollars— 

2013 2014 2015 2016 2017 2013– 

2017 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Gross Spending: 

Estimated Authorization Level ............................................. 3 3 3 3 3 15 

Estimated Outlays ............................................................... 3 3 3 3 3 15 

Fees: 

Estimated Authorization Level ............................................. 0 0 0 ¥6 ¥6 ¥12 

Estimated Outlays ............................................................... 0 0 0 ¥6 ¥6 ¥12 

Net Spending: 

Estimated Authorization Level ............................................. 3 3 3 ¥3 ¥3 3 

Estimated Outlays ............................................................... 3 3 3 ¥3 ¥3 3 

Basis of estimate: For this estimate, CBO assumes that S. 710 

will be enacted near the beginning of fiscal year 2013, that the necessary amounts to implement this legislation will be appropriated 

for each year, and the authority to collect fees will be provided. 

Gross spending 

S. 710 would authorize the appropriation of $6 million over the 

2013–2015 period for EPA to establish an electronic manifest system to track the handling of hazardous waste. That amount would 

cover contract costs to develop the manifest system. Based on information from EPA, CBO estimates that EPA would require additional appropriations of $3 million over the 2013–2015 period to 


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oversee the system’s development. EPA’s administrative expenses 

include outreach; regulatory development; system and security 

planning, procurement, and project management. After 2015, we 

estimate that EPA would spend about $3 million annually to operate and maintain the system. Thus, CBO estimates that implementing this legislation would have a gross cost of $15 million over 

the 2013–2017 period, assuming appropriation of the specified and 

estimated amounts. 

Fees 

Under S. 710, EPA would be authorized, subject to provisions in 

future appropriations acts, to collect fees to offset the cost of establishing, operating, and maintaining the new system. Based on information from EPA, CBO expects that the agency would not collect fees before the new system is in use, beginning in 2016. CBO 

estimates that EPA would collect $6 million in each of 2016, 2017, 

and 2018 to recover its operating costs in those years and the initial amounts spent to develop the system over the 2012–2015 period. We expect that the agency would reduce fees once the system 

development costs were recouped. 

Based on information from EPA, CBO estimates that about 

114,000 users would obtain electronic manifests in 2016, with participation reaching 227,000 users in subsequent years. We estimate 

that, under this legislation, EPA would collect annual fees from 

those participants totaling $12 million over the 2013–2017 period. 

After 2018, CBO estimates that fees would be reduced to match the 

annual operating and maintenance costs associated with the tracking system. 

Intergovernmental and private-sector impact: S. 710 contains 

intergovernmental and private-sector mandates, as defined in 

UMRA, on facilities that handle hazardous waste. CBO estimates 

that the cost of the mandates would fall below the annual thresholds established in UMRA ($73 million for intergovernmental mandates and $146 million for private-sector mandates in 2012, adjusted annually for inflation). 

Mandates 

The act would require waste management facilities that receive 

hazardous waste generated in or shipped through other states to 

submit copies of shipment manifests to EPA. The act also would 

authorize EPA to require those facilities and any hazardous waste 

management facilities that use a paper system to submit a copy of 

the manifest to the electronic system established under the act. 

The affected facilities would primarily be private entities but could 

include municipal and county landfills. Because the cost to complete a manifest and to submit a paper copy to the electronic system would be minimal, CBO estimates that the cost to comply with 

the mandates would be small. 

The act also would authorize EPA to establish fees for users of 

the electronic manifest system, which could include those facilities 

that are required to submit a copy of a paper manifest. CBO estimates that such fees would total $6 million or less annually beginning in fiscal year 2016. 


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Other Impacts 

CBO expects that users of the electronic manifest system created 

by the act could save money in comparison to using a paper system. Users include generators, transporters, and recipients of hazardous waste, as well as state agencies that collect copies of manifests. 

Previous CBO cost estimate: On May 6, 2011, CBO transmitted 

a cost estimate for S. 710, the Hazardous Waste Electronic Manifest Establishment Act, as ordered reported by the Senate Committee on Environment and Public Works on April 15, 2011. Both 

versions of S. 710 would require that EPA establish an electronic 

manifest system to track hazardous waste, but the funding mechanisms for the systems provided in each are different. The two CBO 

cost estimates reflect those differences. 

Estimate prepared by: Federal costs: Susanne S. Mehlman; Impact on state, local, and tribal governments: Melissa Merrell; Impact on the private sector: Amy Petz. 

Estimate approved by: Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act. 

ADVISORY COMMITTEE STATEMENT

S. 710, the ‘‘Hazardous Waste Electronic Manifest Establishment 

Act,’’ as amended by the Committee on Energy and Commerce, creates one advisory committee, which is within the meaning and requirements of section 5(b) of the Federal Advisory Committee Act. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

SECTION-BY-SECTION ANALYSIS OF LEGISLATION

S. 710, as amended, adds a new section 3024 to Subtitle C of the 

Solid Waste Disposal Act. New section 3024 contains nine subsections, as follows: 

Subsection (a) defines ‘‘Board,’’ ‘‘Fund,’’ ‘‘System,’’ ‘‘Person,’’ and 

‘‘User,’’ each as used in new Section 3024. 

Subsection (b) requires that, not later than three years after enactment, the EPA Administrator establish a system that may be 

used by any user. 

Subsection (c) authorizes the Administrator, in accordance with 

appropriations acts, to impose reasonable service fees necessary to 

pay costs incurred in developing, operating, maintaining, and upgrading the system. Subparagraph (c)(3)(B) requires the Administrator, in consultation with the Board established in Subsection (f), 

to increase or decrease the amount of the service fee to a level sufficient and not more than reasonably necessary to cover current 


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and projected system-related costs, and to minimize accumulation 

of unused amounts in the Fund. The Committee amendment added 

the requirement that fees be adjusted to ensure that they are ‘‘not 

more than reasonably necessary’’ to cover system costs to ensure 

that users are not overcharged for the system if appropriations acts 

appropriate more than needed to make the system function effectively. The Committee expects that appropriations acts that follow 

such a fee adjustment will take into account the reasons for and 

the amount of the adjustment. The Committee also added to subsection (c) a new paragraph (4) on ‘‘Crediting and Availability of 

Fees.’’ Paragraph (4) provides that fees authorized under new section 3024 are to be collected and available for obligation only to the 

extent and in the amount provided in advance in appropriations 

acts. 

Subsection (d) establishes in the U.S. Treasury a fund consisting 

of amounts deposited in the fund under subsection (c) to be used 

solely to carry out the purposes of the system. Subsection (d) also 

requires the EPA Inspector General to conduct an audit of fees 

paid and disbursed, including the reasonableness of the fee structure to meet system costs, the level of use, and the operating success of the system. Subsection (d) also requires the Administrator 

to report to Congress, for each 2-fiscal-year period, an accounting 

of fees paid and disbursed. 

Subsection (e) authorizes the Administrator to enter into contracts for system-related services that have terms of not more than 

10 years, are performance based, identify objective outcomes, contain performance standards, and specify the service fee structure 

that forms the basis of payments to the contractor. The Committee 

amendment deletes an explicit contract condition that appeared in 

subparagraph (e)(1)(b) as originally approved by the Senate, which 

provided that the contractor would assume the initial risk of the 

information technology investment. Instead, the Committee leaves 

new section 3024 silent on this subject in order to ensure that contracting parties have flexibility to adopt whatever combination of 

contract terms affords effective and economic system design, development, and performance. The Committee expects the Administrator will not secure contracts at costs that exceed the fair market 

value of the procured goods and services. 

Subsection (f) establishes a hazardous waste electronic manifest 

system advisory board to evaluate the effectiveness of, and provide 

recommendations to the Administrator relating to, the system. 

Subsection (g) requires the Administrator, not later than one 

year after enactment, to promulgate regulations to carry out new 

Solid Waste Disposal Act section 3024. 

Subsection (h) requires that facilities that receive hazardous 

waste submit a manifest if a State in which the waste was generated, or in which the waste is transported, requires tracking with 

a manifest. 

Subsection (i) authorizes $2 million to be appropriated for each 

of fiscal years 2013–2015 for start-up activities to carry out new 

section 3024. The start-up appropriations are required to be offset 

by the collection of user fees so that all appropriated funds are offset by fees as provided in subsection (c). 


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CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (new matter is printed in italic 

and existing law in which no change is proposed is shown in 

roman): 

SOLID WASTE DISPOSAL ACT 

TITLE II—SOLID WASTE DISPOSAL 

Subtitle A—General Provisions 

SHORT TITLE AND TABLE OF CONTENTS

SEC. 1001. This title (hereinafter in this title referred to as ‘‘this 

Act’’), together with the following table of contents, may be cited as 

the ‘‘Solid Waste Disposal Act’’: 

* * * * * * * 

SUBTITLE C—HAZARDOUS WASTE MANAGEMENT

Sec. 3001. Identification and listing of hazardous waste. 

* * * * * * * 

Sec. 3024. Hazardous waste electronic manifest system. 

* * * * * * * 

Subtitle C—Hazardous Waste Management 

* * * * * * * 

SEC. 3024. HAZARDOUS WASTE ELECTRONIC MANIFEST SYSTEM. 

(a) DEFINITIONS.—In this section: 

(1) BOARD.—The term ‘‘Board’’ means the Hazardous Waste 

Electronic Manifest System Advisory Board established under 

subsection (f). 

(2) FUND.—The term ‘‘Fund’’ means the Hazardous Waste 

Electronic Manifest System Fund established by subsection (d). 

(3) PERSON.—The term ‘‘person’’ includes an individual, corporation (including a Government corporation), company, association, firm, partnership, society, joint stock company, trust, 

municipality, commission, Federal agency, State, political subdivision of a State, or interstate body. 

(4) SYSTEM.—The term ‘‘system’’ means the hazardous waste 

electronic manifest system established under subsection (b). 

(5) USER.—The term ‘‘user’’ means a hazardous waste generator, a hazardous waste transporter, an owner or operator of a 

hazardous waste treatment, storage, recycling, or disposal facility, or any other person that— 

(A) is required to use a manifest to comply with any Federal or State requirement to track the shipment, transportation, and receipt of hazardous waste or other material 

that is shipped from the site of generation to an off-site facility for treatment, storage, disposal, or recycling; and 

(B)(i) elects to use the system to complete and transmit an 

electronic manifest format; or 


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(ii) submits to the system for data processing purposes a 

paper copy of the manifest (or data from such a paper 

copy), in accordance with such regulations as the Administrator may promulgate to require such a submission. 

(b) ESTABLISHMENT.—Not later than 3 years after the date of enactment of this section, the Administrator shall establish a hazardous waste electronic manifest system that may be used by any 

user. 

(c) USER FEES.— 

(1) IN GENERAL.—In accordance with paragraph (4), the Administrator may impose on users such reasonable service fees as 

the Administrator determines to be necessary to pay costs incurred in developing, operating, maintaining, and upgrading 

the system, including any costs incurred in collecting and processing data from any paper manifest submitted to the system 

after the date on which the system enters operation. 

(2) COLLECTION OF FEES.—The Administrator shall— 

(A) collect the fees described in paragraph (1) from the 

users in advance of, or as reimbursement for, the provision 

by the Administrator of system-related services; and 

(B) deposit the fees in the Fund. 

(3) FEE STRUCTURE.— 

(A) IN GENERAL.—The Administrator, in consultation 

with information technology vendors, shall determine 

through the contract award process described in subsection 

(e) the fee structure that is necessary to recover the full cost 

to the Administrator of providing system-related services, 

including— 

(i) contractor costs relating to— 

(I) materials and supplies; 

(II) contracting and consulting; 

(III) overhead; 

(IV) information technology (including costs of 

hardware, software, and related services); 

(V) information management; 

(VI) collection of service fees; 

(VII) reporting and accounting; and 

(VIII) project management; and 

(ii) costs of employment of direct and indirect Government personnel dedicated to establishing, managing, and maintaining the system. 

(B) ADJUSTMENTS IN FEE AMOUNT.— 

(i) IN GENERAL.—The Administrator, in consultation 

with the Board, shall increase or decrease the amount 

of a service fee determined under the fee structure described in subparagraph (A) to a level that will— 

(I) result in the collection of an aggregate 

amount for deposit in the Fund that is sufficient 

and not more than reasonably necessary to cover 

current and projected system-related costs (including any necessary system upgrades); and 

(II) minimize, to the maximum extent practicable, the accumulation of unused amounts in the 

Fund. 


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(ii) EXCEPTION FOR INITIAL PERIOD OF OPERATION.— The requirement described in clause (i)(II) shall not 

apply to any additional fees that accumulate in the 

Fund, in an amount that does not exceed $2,000,000, 

during the 3-year period beginning on the date on 

which the system enters operation. 

(iii) TIMING OF ADJUSTMENTS.—Adjustments to service fees described in clause (i) shall be made— 

(I) initially, at the time at which initial development costs of the system have been recovered by the 

Administrator such that the service fee may be reduced to reflect the elimination of the system development component of the fee; and 

(II) periodically thereafter, upon receipt and acceptance of the findings of any annual accounting 

or auditing report under subsection (d)(3), if the 

report discloses a significant disparity for a fiscal 

year between the funds collected from service fees 

under this subsection for the fiscal year and expenditures made for the fiscal year to provide system-related services. 

(4) CREDITING AND AVAILABILITY OF FEES.—Fees authorized 

under this section shall be collected and available for obligation 

only to the extent and in the amount provided in advance in appropriations Acts. 

(d) HAZARDOUS WASTE ELECTRONIC MANIFEST SYSTEM FUND.— (1) ESTABLISHMENT.—There is established in the Treasury of 

the United States a revolving fund, to be known as the ‘‘Hazardous Waste Electronic Manifest System Fund’’, consisting of 

such amounts as are deposited in the Fund under subsection 

(c)(2)(B). 

(2) EXPENDITURES FROM FUND.— 

(A) IN GENERAL.—Only to the extent provided in advance 

in appropriations Acts, on request by the Administrator, the 

Secretary of the Treasury shall transfer from the Fund to 

the Administrator amounts appropriated to pay costs incurred in developing, operating, maintaining, and upgrading the system under subsection (c). 

(B) USE OF FUNDS BY ADMINISTRATOR.—Fees collected by 

the Administrator and deposited in the Fund under this 

section shall be available to the Administrator subject to 

appropriations Acts for use in accordance with this section 

without fiscal year limitation. 

(C) OVERSIGHT OF FUNDS.—The Administrator shall 

carry out all necessary measures to ensure that amounts in 

the Fund are used only to carry out the goals of establishing, operating, maintaining, upgrading, managing, 

supporting, and overseeing the system. 

(3) ACCOUNTING AND AUDITING.— (A) ACCOUNTING.—For each 2-fiscal-year period, the Administrator shall prepare and submit to the Committee on 

Environment and Public Works and the Committee on Appropriations of the Senate and the Committee on Energy 

and Commerce and the Committee on Appropriations of the 

House of Representatives a report that includes— 


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(i) an accounting of the fees paid to the Administrator under subsection (c) and disbursed from the 

Fund for the period covered by the report, as reflected 

by financial statements provided in accordance with— 

(I) the Chief Financial Officers Act of 1990 (Public Law 101–576; 104 Stat. 2838) and amendments 

made by that Act; and 

(II) the Government Management Reform Act of 

1994 (Public Law 103–356; 108 Stat. 3410) and 

amendments made by that Act; and 

(ii) an accounting describing actual expenditures 

from the Fund for the period covered by the report for 

costs described in subsection (c)(1). 

(B) AUDITING.— 

(i) IN GENERAL.—For the purpose of section 3515(c) 

of title 31, United States Code, the Fund shall be considered a component of an Executive agency. 

(ii) COMPONENTS OF AUDIT.—The annual audit required in accordance with sections 3515(b) and 3521 of 

title 31, United States Code, of the financial statements 

of activities carried out using amounts from the Fund 

shall include an analysis of— 

(I) the fees collected and disbursed under this 

section; 

(II) the reasonableness of the fee structure in 

place as of the date of the audit to meet current 

and projected costs of the system; 

(III) the level of use of the system by users; and 

(IV) the success to date of the system in operating on a self-sustaining basis and improving the 

efficiency of tracking waste shipments and transmitting waste shipment data. 

(iii) FEDERAL RESPONSIBILITY.—The Inspector General of the Environmental Protection Agency shall— 

(I) conduct the annual audit described in clause 

(ii); and 

(II) submit to the Administrator a report that describes the findings and recommendations of the 

Inspector General resulting from the audit. 

(e) CONTRACTS.— 

(1) AUTHORITY TO ENTER INTO CONTRACTS FUNDED BY SERVICE FEES.—The Administrator may enter into 1 or more information technology contracts with entities determined to be appropriate by the Administrator (referred to in this subsection as 

‘‘contractors’’) for the provision of system-related services. 

(2) TERM OF CONTRACT.—A contract awarded under this subsection shall have a term of not more than 10 years. 

(3) ACHIEVEMENT OF GOALS.—The Administrator shall ensure, to the maximum extent practicable, that a contract awarded under this subsection— 

(A) is performance-based; 

(B) identifies objective outcomes; and 

(C) contains performance standards that may be used to 

measure achievement and goals to evaluate the success of 

a contractor in performing under the contract and the right 


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of the contractor to payment for services under the contract, 

taking into consideration that a primary measure of successful performance shall be the development of a hazardous waste electronic manifest system that— 

(i) meets the needs of the user community (including 

States that rely on data contained in manifests); 

(ii) attracts sufficient user participation and service 

fee revenues to ensure the viability of the system; 

(iii) decreases the administrative burden on the user 

community; and 

(iv) provides the waste receipt data applicable to the 

biennial reports required by section 3002(a)(6). 

(4) PAYMENT STRUCTURE.—Each contract awarded under this 

subsection shall include a provision that specifies— 

(A) the service fee structure of the contractor that will 

form the basis for payments to the contractor; and 

(B) the fixed-share ratio of monthly service fee revenues 

from which the Administrator shall reimburse the contractor for system-related development, operation, and 

maintenance costs. 

(5) CANCELLATION AND TERMINATION.— 

(A) IN GENERAL.—If the Administrator determines that 

sufficient funds are not made available for the continuation 

in a subsequent fiscal year of a contract entered into under 

this subsection, the Administrator may cancel or terminate 

the contract. 

(B) NEGOTIATION OF AMOUNTS.—The amount payable in 

the event of cancellation or termination of a contract entered into under this subsection shall be negotiated with the 

contractor at the time at which the contract is awarded. 

(6) NO EFFECT ON OWNERSHIP.—Regardless of whether the 

Administrator enters into a contract under this subsection, the 

system shall be owned by the Federal Government. 

(f) HAZARDOUS WASTE ELECTRONIC MANIFEST SYSTEM ADVISORY

BOARD.— 

(1) ESTABLISHMENT.—Not later than 3 years after the date of 

enactment of this section, the Administrator shall establish a 

board to be known as the ‘‘Hazardous Waste Electronic Manifest System Advisory Board’’. 

(2) COMPOSITION.—The Board shall be composed of 9 members, of which— 

(A) 1 member shall be the Administrator (or a designee), 

who shall serve as Chairperson of the Board; and 

(B) 8 members shall be individuals appointed by the Administrator— 

(i) at least 2 of whom shall have expertise in information technology; 

(ii) at least 3 of whom shall have experience in using 

or represent users of the manifest system to track the 

transportation of hazardous waste under this subtitle 

(or an equivalent State program); and 

(iii) at least 3 of whom shall be a State representative responsible for processing those manifests. 


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(3) DUTIES.—The Board shall meet annually to discuss, 

evaluate the effectiveness of, and provide recommendations to 

the Administrator relating to, the system. 

(g) REGULATIONS.— (1) PROMULGATION.— (A) IN GENERAL.—Not later than 1 year after the date of 

enactment of this section, the Administrator shall promulgate regulations to carry out this section. 

(B) INCLUSIONS.—The regulations promulgated pursuant 

to subparagraph (A) may include such requirements as the 

Administrator determines to be necessary to facilitate the 

transition from the use of paper manifests to the use of electronic manifests, or to accommodate the processing of data 

from paper manifests in the electronic manifest system, including a requirement that users of paper manifests submit 

to the system copies of the paper manifests for data processing purposes. 

(C) REQUIREMENTS.—The regulations promulgated pursuant to subparagraph (A) shall ensure that each electronic 

manifest provides, to the same extent as paper manifests 

under applicable Federal and State law, for— 

(i) the ability to track and maintain legal accountability of— 

(I) the person that certifies that the information 

provided in the manifest is accurately described; 

and 

(II) the person that acknowledges receipt of the 

manifest; 

(ii) if the manifest is electronically submitted, State 

authority to access paper printout copies of the manifest from the system; and 

(iii) access to all publicly available information contained in the manifest. 

(2) EFFECTIVE DATE OF REGULATIONS.—Any regulation promulgated by the Administrator under paragraph (1) and in accordance with section 3003 relating to electronic manifesting of 

hazardous waste shall take effect in each State as of the effective date specified in the regulation. 

(3) ADMINISTRATION.—The Administrator shall carry out regulations promulgated under this subsection in each State unless 

the State program is fully authorized to carry out such regulations in lieu of the Administrator. 

(h) REQUIREMENT OF COMPLIANCE WITH RESPECT TO CERTAIN

STATES.—In any case in which the State in which waste is generated, or the State in which waste will be transported to a designated facility, requires that the waste be tracked through a hazardous waste manifest, the designated facility that receives the 

waste shall, regardless of the State in which the facility is located— 

(1) complete the facility portion of the applicable manifest; 

(2) sign and date the facility certification; and 

(3) submit to the system a final copy of the manifest for data 

processing purposes. 

(i) AUTHORIZATION FOR START-UP ACTIVITIES.—There are authorized to be appropriated $2,000,000 for each of fiscal years 2013 

through 2015 for start-up activities to carry out this section, to be 


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offset by collection of user fees under subsection (c) such that all 

such appropriated funds are offset by fees as provided in subsection 

(c). 

* * * * * * * 

Æ 


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