PETITION TO THE

A DMINISTRATOR, UNITED STATES ENVIRONMENTAL PROTECTION AGENCY,

FOR AN EXEMPTION UNDER THE

TOXIC SUBSTANCES CONTROL ACT TO IMPORT POLYCHLORINATED BIPHENYLS (PCB) AND PCB ITEMS FOR

DISPOSAL

(1) Petitioner: Defense Logistics Agency (DLA), a component of the United States (U.S.) Department of Defense (DoD), 8725 John J. Kingman Road, Fort Belvoir, VA 22061.

Contact: Mr. Jan Reitman, Staff Director, DLA Enterprise Support Environment, Safety and Occupational Health, (703) 767-6278; or Mr. Barton McFarlane, DLA Environmental Quality Staff, (703) 767-1567.

(2) Exemption requested: An exemption is sought under 15 U.S. Code (U.S.C.) 2605(e)(3)(B) to import and dispose of transformers, switches, used oil, circuit breakers, debris (e.g., rags, small parts, packaging materials) and related material containing polychlorinated biphenyls at the U.S. Environmental Protection Agency (EPA) permitted storage, treatment, and disposal facilities in the U.S. These PCBs and PCB items are currently in temporary storage on U.S. military installations in Japan, or are in use and scheduled to be removed from
service sometime before the expiration of any exemption granted based on this petition. U.S. military forces generate this material when the PCB articles are taken out of service on U.S. military installations in Japan. We believe that the PCBs contained in the articles were originally manufactured or acquired outside the U.S. (3) Manufacturing sites requiring exemption: None. Exemption is sought for import and disposal only of items generated by U.S. forces located in Japan. (4) Length of time requested for exemption: One year. (5) Estimated amount of PCBs and PCB items to be imported for disposal: It is
the intent of the DLA to utilize this exemption, if granted, to allow for environmentally sound disposal of PCBs in DoD’s inventory in Japan, which are currently in storage or can be
removed from service for disposal before the expiration of any exemption granted. Attachment 1 provides an estimated inventory of the items to be imported for disposal. The inventory
contains items with various concentrations of PCBs ranging from non-detected or less than 2.0 parts per million (ppm) to greater than 500 ppm. Nearly all of this material would be considered regulated PCBsin Japan. Based on data currently available, DLA anticipates that approximately 70 percent of the inventory estimate included within this petition request would be material containing PCBs at less than 50 ppm, which is a level lower than that regulated for disposal under
U.S. law. The inventories include the following types of items: transformers (drained and undrained), large and small capacitors, voltage regulators, switches, electromagnets, circuit breakers, reclosers, electrical cable, electric light ballasts, transformer oils, used oils, contaminated soil,
and debris. The terms “PCBs” and “PCB items” are used to refer to PCB containing materials generally throughout this petition, and no portion of the petition is seeking to
make distinctions between “types” of PCB containing material or how they may be defined under the
Toxic Substances Control Act (TSCA) implementing regulations at Title 40 Code of
Federal Regulations (CFR) 761. (6) Risk of injury to health or environment: Given the EPA’s finding in response to DLA’s previous petitions that compliant disposal in the U.S. presents “no unreasonable risk,” as well as DLA’s successful experience in disposing of PCB items under the initial exemption, the Administrator should find that allowing the DoD to return PCB containing items
from its inventory in Japan for compliant disposal in the U.S. presents no unreasonable
risk to health or to the environment. The following discussion evaluates the risks of the proposed import for disposal in the U.S. and balances them with the alternatives. a. Evaluation of risk for import for disposal in the U.S. 1. PCB concentrations. Foreign-manufactured PCBs and PCB items do not
differ in chemical composition from domestically-manufactured PCBs and PCB items, and they present the same risks to human health and the environment as domestic PCBs and

PCB items. A description of the parts per million concentrations and the types of
PCBs and PCB items under the purview of this exemption request is provided at Attachment

1. As noted in paragraph (5) above, the vast majority of this material would not qualify as PCB waste under 40 CFR 761, Subpart D.

2. Packaging and transportation. When the DoD ships PCB items or waste from Japan, packaging, marking, labeling and shipping papers will conform to the applicable
modal and inter-modal (sea, air, land) national and/or international regulations. The packaging will be in accordance with the United Nations Performance Oriented Packaging standards. Shipments must also comply with modal or intermodal regulatory requirements
outlined inthe International Maritime Dangerous Goods Code/International Maritime Organization, International Civil Aviation Organization Technical Instructions of the
International Air Transport Association, United Nations Recommendations on the Transport of Dangerous Goods Code, and U.S. Title 49 CFR 100-199. DoD policy and procedures implementing these standards are found in DoD Joint Regulations . Proper handling and shipping shall include blocking, bracing, over-packing, and the inclusion of secondary spill
containment devices, as required by applicable transportation regulations.

3. Handling, treatment, and disposal in compliance with U.S. laws and regulations. The DLA has considerable experience and expertise in awarding and administering disposal contracts for PCB waste in the U.S. The DLA has been safely returning U.S.- manufactured items generated by U.S. forces overseas for compliant and environmentally sound disposal in the U.S. for many years. For over a decade, the DLA has successfully returned millions of pounds of U.S.-manufactured/U.S. Government owned and

controlled PCBs for disposal in the U.S. Additionally, the DLA has successful experience
in importing and disposing of approximately 2.7 million pounds of PCBs and PCB
items pursuant to a previous exemption granted by the Administrator under TSCA Section
6, which covered the period April 18, 2003, to April 17, 2004.

If the exemption requested in this petition is granted, the DLA will award
contracts for treatment and disposal services with commercial firms. Contracts will be
awarded in accordance with all applicable federal procurement statutes and the Federal Acquisition Regulations. Only companies utilizing federal and/or state-permitted treatment
storage, and disposal facilities for handling PCBs and PCB items would be eligible for
such

contracts.

Specifically, upon approval of this petition under TSCA Section 6, the
material will be imported in accordance with the regulations issued under the authority of TSCA
Section 13(b), 15 U.S.C. 2612(b), and all applicable U.S. Customs regulations. Upon
arrival in the U.S., the material will be transported, handled, treated, and disposed of in conformance with the U.S. EPA regulations at 40 CFR 761. These regulations set

out specific treatment and disposal methods for PCBs and PCB items, depending on the typeof item and the concentrations of PCBs in the item or liquids/fluids. Theforeignmanufactured PCB items described herein are similar in chemical and physical composition to U.S.-manufactured PCBs and PCB items, and their treatment and disposal required by EPA regulations is the same. Used oils will be dechlorinated and recycled where feasible or will be used as fuel for energy recovery. Mixed metals and
othermaterials will be treated, detoxified and recycled where feasible. Nonrecyclable material will be treated and disposed of as residual solid waste. Alternative disposal methods could be used if approved by the Administrator.

As noted above, the DLA and its contractors have extensive experience in safely returning PCBs and PCB items to the U.S. for disposal. Prior to safely returning and disposing of 2.7 million pounds of PCB items under the Administrator’s previously granted exemption, DLA returned 2.4 million of pounds of U.S.-manufactured PCBs
and PCB items from Japan since 1991 for compliant disposal without incident. Throughout the course of this experience, DLA has used the same standards and procedures
described above without incurring a spill or safety problems affecting human health or the
environment.

b. Evaluation of long term storage risks in Japan.

1. Lack of permitted PCB disposal facilities in Japan to process U.S. waste.
The DoD intends to pursue in-country disposal when capacity comes on line and when disposal services can be reasonably acquired. However, as has been noted internationally, Japan has insufficient disposal capacity to handle PCB decontamination and
destruction. Reports by the United Nations Environmental Program Agency note the lack of disposal facilities. The Japan Times and other Japanese media have also focused on the
issue. In 2001, the Japanese Diet passed legislation designed to facilitate the
construction of PCB disposal capacity, known as the “Law Concerning Special Measures Against PCB Waste”. Although Japan is developing domestic capacity to dispose of PCBs, no commercial facilities are known to be operational at this time, and capacity is expected to be very limited for the next several years.

A precise estimate of the overall backlog of PCB waste material inventories currently awaiting disposal in Japan is not readily available. Japan has banned PCB productionsince 1974. Before that date very significant quantities of pure PCBs were produced and utilized in various electrical and insulating capacities. Given the significant backlog of Japanese generated PCBs and given the very limited in-country disposal capacity,
it is not likely that there will be disposal facilities available to treat and dispose of
U.S. forcesgenerated waste for a number of years. By contrast, the United Nations reports referenced above and EPA’s web site identifying permitted PCB disposal
facilities indicate there are a significant number of facilities in the U.S that are permitted to dispose of PCB wastes in a compliant manner that presents no unreasonable risk to human
health
or the environment. 2. Limited DoD storage capacity in Japan. Since Japan has no disposal or permitted storage capacity currently available to U.S. military generators, U.S. forces are required to accumulate PCBs on their installations pending final disposal solutions. At
the time of DLA’s previous petitions, DoD interior storage space in Japan was severely impacted, and much inside storage space that could have been devoted to more direct
mission support was utilized to store PCBs in order to mitigate the risks as much as possible. Following the successful removal of 2.7 million pounds of PCBs, much of this storage has reverted to previous uses and now more directly supports the missions of the

U.S. Forces in Japan (USFJ).

Without the benefit of an exemption from the TSCA import ban DoD’s current storage capacity limits will be reached and PCB waste from smaller temporary storage
locations will eventually have to be transported over public roads to other larger storage
areas until disposal can be effected. In addition, non-PCB property currently in certain storage areas would need to be moved to allow that space to revert to PCB storage. The PCB

wastes and the adjoining material will be subject to increased moves and handling.
These factors demonstrate the risks of long term storage and show that this strategy
is inappropriate for DoD’s management of its PCBs in Japan and supports the
rationale behind requesting these items to be returned for compliant disposal in the U.S.
Based on current estimates of new PCB waste generations, some DoD facilities in Japan
will reach existing storage capacity limits within the next year, and several more will reach capacity by the time the exemption being requested by this petition may be granted.3. Risks of long-term storage of PCBs and PCB items increase with time. Although significant progress has been made in drawing down the DoD inventory of PCBs and PCB items located in Japan, the continuing shortage of in-country disposal capacity does not allow for reductions of the remainder of the DoD foreign-manufactured PCB inventory. Absent a waiver to the import ban, DoD will be dependent on long

term storage on its foreign military installations as a means to manage its PCB

waste.

Continued accumulation over extended time periods increase the risk of exposure to U.S. military personnel, to people living in and around the U.S. installations
where the PCBs are stored, and to the environment should releases occur due to human

error, or unforeseen severe weather, or seismic events. In addition, storage containers
will deteriorate with time, increasing the likelihood that personnel who must monitor
suchitems and repack them if they suspect leakage are exposed to the PCBs. Longterm storage may increase the DoD’s liability for clean-up costs if spills occur.
This would increase exposure to U.S. personnel, and local citizens, and could potentially
result in ground and water contamination. Each time an item is handled, another opportunity for a spill or exposure is created. The storage situation is exacerbated in Japan
because the installations where these materials are located are relatively small, storage space is at a premium, and the surrounding civilian communities are located in very close proximity to the stored PCBs. Moreover, the situation for the DoD is further complicated
because of the perceptions of the local communities regarding PCBs, as addressed in paragraph 6 (b) 4 below. Additionally, Japan is in an area of the world subject to severe weather
and seismic activity. Typhoons, earthquakes and tsunamis could flood or severely damage storage areas and buildings, increasing the potential for releases and increasing DoD’s liability for subsequent environmental clean-up or damage to human health. PCBs and PCB waste items stored for an indefinite period abroad may therefore present a greater risk to human health and the environment than short term storage for timely disposal in
the U.S. The EPA has previously noted the risks inherent in extended storage in its

1996 PCB Import for Disposal Final Rule: “EPA believes that PCB wastes which are not disposed of for extended periods of time or which are not disposed of in facilities providing equivalent protection from release to the environment may pose anunreasonable risk to health and the environment.” The same Rule also underscored the benefit of prompt disposal in the U.S: “Based on the persistence of PCBs in the global environment and EPA’s finding that any exposure to human beings or the environment may be significant, EPA believes that the safe disposal of PCBs in approved U.S. facilities poses less risk of injury to health or the environment in the U.S. than the continued presence of PCBs in other countries, since proper disposal in this country provides protection against possible hazards from improper disposal elsewhere.” EPA affirmed its positions regarding the risks of long term storage abroad
and the benefits of prompt disposal in its Final Rule addressing DLA’s previous petitions. Moreover, this position is consistent with the position of the U.S. Government regarding the proper management of PCBs as expressed in multilateral arrangements and international conventions such as the Stockholm Convention on Persistent Organic Pollutants, and in the Organization for Economic Cooperation and Development (OECD) Decision (C(73)1) on the “Protection of the Environment by the Control of PCBs, 2/13/73, and the OECD Decision (C(87)2(final)) on “Further Measures for

the protection of the environment by control of PCBs, 2/13/87.” Very generally stated, these arrangements require or recommend bans on production or new uses of PCBs
and advocate “accelerated” disposal of PCBs and PCB items currently in use where possible. 4. PCB disposal issues can strain U.S.-Japanese international relations. In 1968, a tragic human poisoning episode in Western Japan affected over 1,000 people causing 22 deaths. The “Yusho” or “rice oil disease” was attributed to the consumption of
rice bran oil contaminated with PCBs and served as a catalyst for current PCB prohibitions such as those imposed by TSCA, the Stockholm Convention, and Japanese domestic law. As a result of this highly publicized incident, Japanese citizens exhibit particular sensitivity to PCB issues. Delicate U.S.-Japan relations over the presence and operation of U.S. military installations could be adversely affected by denial of this petition. The presence of PCBs on U.S. military bases in Japan has in the past
attracted significant adverse attention from Japanese politicians, the Japanese press, Japanese environmental groups, and local citizens. There has been constant local
surveillance of U.S. military PCB storage in Sagamihara and demands for inspections and sampling
for PCBs since at least 1992, when a member of Congress released a report outlining
the storage and presence of PCBs and other hazardous materials on U.S. bases in Japan. Any perception that the U.S. would return to stockpiling and long term storage
of these materials invites unwarranted claims that the U.S. military is neglecting its
environmentalresponsibilities.

5. Summary. In light of the risks cited above, allowing PCB material to remain
in storage indefinitely may lead to degradation of storage containers and releases
of PCBs into the environment from the materials located at temporary or permanent storage facilities. PCBs released into the environment as a result of disasters, accidents, container degradation or other events can present significant exposure risks.
This material is currently stored, or will need to be stored, on crowded DoD
facilities in close proximity to where U.S. military and civilian personnel and the local community
live and work. Since there are no permitted PCB disposal facilities available to U.S.
forces in Japan, and because of the unique environmental conditions in Japan, as noted above, the potential for PCB contamination via leaks from aging containers or accidental spills is higher at these locations than at EPA permitted disposal facilities in the U.S.

DoD civilian employees, U.S. military personnel, and contractors employed by the

U.S. Government are at greatest risk.

c. Balancing risks and interests. The benefits of prompt disposal of this
material in the U.S. eliminates the risks inherent in extended long term storage of PCBs and far outweighs any risk associated with the DLA’s proposed course of action. Granting this petition presents no unreasonable safety or health risks and will serve to mitigate the risk of injury to human health and the environment. Approval of this petition will demonstrate environmentally responsible behavior by the U.S. and will further the U.S.’ interests by maintaining good international relations with a valued ally, and will significantly reduce the
health risk to persons of both nations and to the environment in Japan.

Additionally, as noted above, granting this petition to allow DoD to manage
its PCBs in an environmentally sound manner (i.e., import of DoD owned and generated items
to the U.S. for compliant disposal) is consistent with U.S. interests and obligations, such
as those expressed in OECD Decisions (e.g., paragraph (6) b 3 above regarding management
and treatment of PCBs); the Basel and Stockholm Conventions; and the Toxic
Substances Control Act itself. This petition envisions DLA removing these items from a country
where suitabledisposal cannot currently be obtained and ensures that suitable disposal will
occur in a manner consistent with U.S. law and regulation. Accordingly, this application
meets the statutory standard that “no unreasonable risk” may result from the grant of an exemption under the TSCA 6(e) authority. (7) Substitutes for Disposal in the U.S. TSCA Section 6(e)(3)(B)(ii) requires
the Administrator to find that “good faith efforts have been made to develop a
chemical substance which does not present an unreasonable risk of injury to human health or the
environment and which may be substituted for PCBs.” To satisfy the requirement in the context of a petition to import, EPA looks at why such activity should occur in the U.S., including what steps the petitioner has taken to find an alternative to importing the PCBs for disposal.
The DLA submits that despite its good faith efforts to find alternatives to domestic disposal in the U.S., there is currently no reasonable alternative to domestic disposal. a. Alternative treatment and disposal on U.S. installations in Japan. As
DLA noted in its previous exemption requests, there are significant impediments to disposal on DoD military installations in Japan. To be properly processed, PCB materials should be separated into three streams: 1) metallic components to be decontaminated and recycled; 2) used oils
to betreated/dechlorinated and recycled or burned for energy recovery; and 3) nonrecyclable material to be treated and disposed of as residual solid wastes. Although certain portable treatment technologies are becoming available in Japan, the domestic regulatory standards

are very stringent and would require PCB decontamination levels to be less than 0.5 ppm
without dilution to qualify an item as being “non PCB”. Complicating the situation further is that any transfer or sale of property from the U.S. military installations into Japanese commerce is
considered an “import.” of property. Japan has banned the importation of PCBs at any
detectable concentration including concentrations below the very stringent 0.5 ppm level at which Japan regulates domestic PCBs. DLA is not aware of any available technologies that are permitted in Japan that would treat all PCBs items to the level that PCBs are completely removed or
that could be acquired at a cost that is economically feasible. Moreover, if such technology
were to become available, it would not resolve the issue of the residual “non-recyclable” waste
that would remain or result from the treatment process. There are no permitted commercial disposal facilitiescurrently available to the U.S. military for PCB disposal in Japan; hence,
treatment outside ofJapan would still be required for the residual wastes resulting from any “oninstallation” treatment process. Additionally, the local Japanese communities next to, or near U.S. installations would likely object to the construction of processing facilities. In light of the concerns cited above, engaging in on-site processing activities in Japan would present significantly greater public relations challenges and potentially greater environmental and health risks than shipping
the materials to existing U.S. permitted treatment and disposal facilities where the technology,
infrastructure and expertise are available to process them properly. Finally, DoD’s policy on the environmentally sound management of hazardous waste, as incorporated in bilateral agreements with the Japanese Ministry of the Environment (MOE), prohibits the treatment of this material on

U.S. government installations. In the event that DoD reached agreement with the MOE to change the policy to allow treatment on U.S. installations, any proposed treatment would likely require permissions from other government agencies, including local prefectures. As noted in paragraph 6(b)1 of this petition, Japan passed laws in 2001 for the purpose of making the country PCB-free by 2016, and the government is promoting the
construction and operation of new disposal facilities. The first plant capable of PCB disposal is expected to come on-line in November 2005, with four more facilities to follow. Sufficient processing capacity to dispose of DoD generated PCB wastes in Japan is not likely in the foreseeable
future. In addition, other factors preclude in-country disposal as a viable alternative for
DoD in the near term because local community resistance is expected and because the original
intent of the 2001 Japanese environmental laws was to promote construction of facilities to process Japan’s domestic wastes. Japanese companies currently do not have other viable
alternatives for PCB disposal. Accordingly, PCBs located on U.S. installations were not even
considered in theplanning factors for designing disposal capacity to ensure Japan could be PCBfree by 2016. The DoD continues to pursue potential access to future Japanese disposal capacity with the MOE; however, since the sufficient disposal capacity is not currently available to the Japanese commercial sector, DLA does not anticipate getting access to in-country facilities prior to the expiration of any exemption that may be granted pursuant to this request, the timing of which isintended to ensure USFJ does not experience significant storage impacts (i.e., exceed existing capacity). Finally, there is the issue of cost of disposal in Japan. The cost
of commercial PCB disposal in Japan appears to be many times greater than the cost of returning
this waste for disposal in the U.S. Even if the international relations concerns and capacity
concerns with respect to in-country disposal were to be resolved, it would be very difficult to justify payment of higher prices to foreign companies with limited capacity when the cost is lower
in the U.S. and capacity is ample. The DoD currently has contracts with U.S. waste disposal companies with a history of safely and efficiently processing PCBs. b. Feasibility of third country disposal. The lack of suitable alternatives for disposal of PCBs generated by U.S. defense activities overseas is an ongoing concern and was explored in a 1999 DoD report to Congress. Since PCBs are covered by the Basel Convention on the Transboundary Movement of Hazardous Wastes and Their Disposal (hereafter “Basel Convention”), the DLA contractor hired to arrange disposal was required to comply with the cooperation notices and consent regime required under that convention. Prior to submitting its previous request to EPA for an exemption from the TSCA PCB import ban, DLA and its primary disposal contractor made contacts over a period of several years with Japanese officials and with disposal facilities located outside the U.S. in an effort to identify firms that could dispose of waste PCB items overseas while satisfying Basel
Convention requirements. The DoD also consulted with State Department officials in Japan
and the U.S. whose responsibilities included international environmental matters. These
consultations resulted in a consensus that use of existing facilities in other developed
countries was not areasonable alternative. Even if other countries would accept these wastes, nongovernmental organizations could be expected to oppose disposal of its U.S. waste in third countries, principally because the U.S. already has the technical capability to dispose of

PCBs. Discussions held with USFJ personnel prior to submitting this petition suggest that it is unlikely there will be disposal capacity available to the U.S. within Japan in
the near term. In addition, the previous TSCA exemption appears to have affirmed the perspective
of Government of Japan (GoJ) officials that the U.S. Government should dispose of U.S.- generated PCBs in the U.S. USFJ officials have pursued the viability of third country disposal with their Japanese counterparts. The MOE clearly pointed out that Article 4 paragraph 5 of the
Basel Conventionprohibits export and import of hazardous wastes between a Party and non-Party and that any PCB disposal that may take place “would be a matter between the U.S. and the third country.” They went on to say “they believe it (i.e., third country disposal) would be against the spirit of the Basel Convention.” This is a clear indication that the MOE position (i.e., of declining to act as the exporting country under the Basel Convention for wastes not generated by Japanese) will not change and therefore the DoD will not be able to obtain Japan’s consent

to act as an “exporting country” under the Basel Convention. The DLA’s attempts to locate appropriate disposal sites outside the U.S. demonstrate its good faith efforts to pursue alternatives for disposal within the U.S. and fulfill the requirements of TSCA 6(e)(3)(B). USFJ officials will continue to explore the potential that Japanese PCB disposal capacity may become available to the U.S. at some time in the future.
Should such disposal capacity become available its use will be seriously considered. (8) Economic consequences if petition is denied. The broad economic consequences of denying this petition are not readily susceptible to objective quantification. For example, there is no reliable way to assess the potential economic consequences to the U.S. stemming from potential international criticism or non-cooperation that may result from a U.S.
decision not to import PCB waste for disposal, waste that the U.S. itself generated at its military activities overseas. Similarly, it is difficult to estimate the economic consequences of continued long term storage of the material in Japan along with the attendant exposure risks to U.S. personnel and the risk of release to the local environment, a risk that increases over time. These potential consequences, while difficult to quantify, are of potentially greater magnitude
than the direct costs of continued storage in Japan. (9) Conclusion: The U.S. Armed Forces are an indispensable and highly visible
instrument of U.S. foreign policy. Through our military presence overseas, the U.S. exerts
influence on the global community. This influence is manifested in our approach to security arrangements, alliances, and international arrangements ranging from the non-proliferation of weapons of mass destruction to trade and the environment. However, this presence overseas unavoidably results in the generation of wastes, some of it hazardous, and some of it related to
PCBs manufactured before their hazards were recognized or their distribution banned. This exemption meets the statutory requirement for relief under Section 6(e)(3) of the TSCA.The treatment and disposal facilities that DLA will utilize if this request is granted are compliant with U.S. law, and the import proposed would not result in an unreasonable risk of injury to health or the environment. Granting this petition would eliminate the risks
inherent in continued storage of this material in Japan and will avoid exposing the U.S. to
international criticism for not disposing of its own PCB waste. Additionally, the DLA has made reasonable
efforts to locate appropriate disposal sites outside the U.S. as a substitute to making this request. For all the foregoing reasons, the DLA respectfully requests that the Administrator grant the proposed exemption.

KEITH W. LIPPERT Vice Admiral, SC, USN
Director

The Defense Logistics Agency is the DoD component that provides supplies and services to America’s military forces in 48 states and 28 foreign countries. The DLA manages more than 5.2
million consumable items and processes 54,000 requisitions per day. DLA supports 124 nations with sales that are expected to total more than 31 billion dollars annually in FY 2005. When the military no longer needs an item, the DLA arranges for its reutilization or ultimate disposition through the Defense Reutilization and Marketing Service (DRMS), a DLA field activity. For purposes of this petition, DLA’s estimates of waste quantities generated are based on CY 2007 being the approximate effective period of any exemption granted. Actual generations may be adjusted lower or higher depending on the actual exemption period. In a meeting at Yokota Air Base March 1-2, 2005, representatives of the U.S. installations generating PCBs in Japan determined that the PCBs generated in the 12 month period from February 2004 are representative of annual generations expected to continue at least through 2008. In Japan, as in the U.S., imported PCBs are regulated differently from domestic PCBs. Under the Law Concerning the Examination and Regulation on Manufacture of Chemical Substances, and related Japanese legislation, use and distribution of material containing PCBs above 0.5 ppm is strictly regulated and new production banned. However, DRMS personnel have been advised by officials at the Japan Ministry of Environment that “no” material containing “any levels” of PCBs may be recycled, sold or otherwise transferred into the Japanese economy because such transfers would be considered imports, as are other transfers of property from U.S. Government control to privateJapanese parties. Furthermore, an Import Response from the Government of Japan published under the Rotterdam Convention of Prior Consent indicates that no PCBs may be imported without permission from the Minister of International Trade and Industry (MITI) and that no such permissions have been granted (Rotterdam Convention on Prior Informed Consent (PIC)) Import Responses, as of July 2004, (CAS number 1336-36-3). See attachment 1 for characterization of waste streams by type of material and
PCB concentration. 68 Fed. Reg. 4938. DLA Directive 4145.41/Army Regulation 700-143/Air Force Joint Instruction 24- 201/Navy Supply Instruction 4040.55/Marine Corps Order 4030.40A. The DLA has an existing PCB disposal contract that is used for disposal of
PCBs returned from overseas. The contract is held by Clean Harbors, of Coffeyville, Kansas. In addition to the
PCB transformer decontaminating/decommissioning performed at that site, other Clean Harbors facilities are EPA permitted to perform chemical dechlorination, chemical waste landfilling and incineration. However, that contract will expire at the end of FY 2005, and a new contract(s) will need to be awarded to handle any imported PCBs authorized as a result of any exemption granted pursuant to this petition. United Nations Environmental Programme (UNEP), August 2000, “Survey ofCurrently Available NonIncineration PCB Destruction Technologies,” Annex.2. Cabinet Set to Approve Two Bills on PCB Disposal, February 22, 2001, Japan Times, available at http://www.japantimes.co.jp/contact.htm. The article explains that once the Diet approves construction of facilities under this bill, it would be another five to ten years before facilities are able to operate and take care of the backlog of items for disposal. Effective date July 15, 2001 English translation from Japan Environmental Safety Corporation (JESCO) website. The JESCO (formerly known as JEC) is the quasi-governmental organization charged
with the construction and operation of PCB disposal facilities as mandated by law. The law requires the central government to develop a framework to develop capacity to dispose or consign disposal of current PCB inventories by 2016. Under the law, prefectures establish plans under the national framework and waste holders report PCB storage and disposal at the prefectural level, consigning disposal in accordance with their plans. An
overview of the law can be found at www.jesconet.co.jp/eg/pcblaw.htm. An overview of the domestic PCB waste treatment program can be found at www.jesconet.co.jp/eg/pcb.htm. ib. See also, footnote 13. See PCB Treatment in Japan, International Business Strategies, January 2002. Based on a report and survey by Japan’s Ministry of Health, Labor and Welfare (MHLW) in 1998, approximately 54,000 tons of PCBs were consumed domestically prior to the 1974 ban. This is absolute weight of pure
PCBs. This volume of PCBs willyield considerably greater volumes of PCB items or material contaminated by PCBs. The same report notes that there is currently approximately 126,000 tons of PCB contaminated insulation oil in storage in Japan. Manufactured PCBs used in heat conducting insulation oil, for example, accounted for considerably less PCB production (8585 tons) than did electrical power equipment uses (approx 37,156 tons). While reliable data on the stockpile of PCB contaminated fluids and material (by weight) is not readily available, the MHLW report listed the following stockpiles: high voltage transformers/condensers, 390,000 units in use or storage; low voltage transformers/condensers, 712,000 units; PCB bearing waste pressure sensitive paper, 27 tons; PCB waste, 778 kilolitres; waste polluted materials, 6300 tons; pole mounted transformers, 4,026,000 units. www.epa.gov/opptintr/pcb/stordisp.html. DLA has submitted this request in anticipation of an exemption period that
would allow removal of the maximum amount of PCB material without exceeding DoD’s existing overall storage capacity in the country. (Please see Attachment 2, table, “Storage Impacts”. This situation results in DoD repeatedly being unable to comply with its own internal guidance and Final Governing Standards agreed to in bilateral arrangements with Japan (see, Department of Defense, 2001, Japan Environmental Governing Standards, Version 1.1, revised June 2002, hereafter “JEGS”) as negotiated in accordance with the U.S./Japan “Status of Forces Agreement,” entry into force, Jan. 19, 1960, and DoD’s “Overseas Environmental Baseline Guidance Document,” DoDD 4715.5-G, March 2000. Generally speaking, the JEGS require compliance with host nation or U.S. environmental requirements, “whichever is more stringent.” The lack of “in country” or “third country” disposal options combined with the impact of the TSCA ban on PCB imports often results in DoD having to store PCBs in Japan for periods longer than would
be allowable under U.S. law. Also, the JEGs incorporate a bilateral agreement that the U.S. will dispose of its PCBs (except GoJ provided equipment) outside of Japan, JEGS 14-3.5b. [Federal Register (Fed Reg.): March 18, 1996 (Volume 61, Number 53)][Rules and Regulations] [Page 11099]
ib. 68 Fed. Reg. 4937 The U.S. has signed, but not ratified this convention. Under Article 18 of
the Vienna Convention on the Law of Treaties, signatories to treaties are expected not to take actions to “frustrate” the purpose of the Treaty. In any event, the current U.S. administration has indicated it supports the goals of the
Stockholm Convention. With this decision OECD member countries, including the U.S., committed themselves to ban virtually all new uses for PCBs, and recommended that members “accelerate” the phasing out of PCBs from existing uses, control PCBs in existing products, articles or equipment, and ensure appropriate disposal methods for wastes containingPCBs.” See Michel Mercier & Morrell Draper, Chemical Safety: The International Outlook, World Health Organization (1994); Leonard T. Flynn, Ph.D., M.B.A. & Cindy F. Klein\man, M.P.H., Public

Health Concerns about Polychlorinated Biphenyl’s (PCBs), Ecotoxicology and Environmental Safety 38, 71-84 (1997).
ib. See, Defense Agency will Inspect PCB Storage, The Yomiuri Shimbun (Tokyo), Aug. 20, 2000, at 2; Pollution at Okinawa Bases Cannot be left Uncorrected, Asahi Shimbun Jan 14, 1999; David Armstrong, U.S. Presence on Foreign Soil is Tainted, Boston Globe, Nov. 15, 1999; Danielle Knight,
Environment: Asian Women Demand Cleanup of U.S. Military Bases, Inter Press Service, Oct. 16, 1998; Probe Fails
to Confirm Source of Pollutant at Kadena Air Base, Kyodo News Service, Sept. 28, 1998; High Level of PCB Detected in Okinawa, Jiji Press Ticker Service, Feb. 21, 1997; Toxic PCB Detected at Ex-U.S. Facility, Jiji Press Ticker Service, Oct. 2, 1996. See, MOFA, Environment agency to Investigate Base PCB Dumping, Ryuku Shimpo, Aug. 19, 1998; Editorial: Probe Pollution at U.S. Bases, Ryuku Shimpo, Aug. 18, 1998; U.S. Base Pollution, Ryuku Shimpo, Aug. 28, 1998; U.S. Rejects Request for PCB Test at Kadena, Japan Economic Newswire, No. 25,
1998. The DLA has also received several requests for information under the Freedom of Information Act from members of the Sagamihara City Council seeking copies of delivery orders and other documentation of hazardous materials containing PCBs at the Sagami Depot. 68 Fed. Reg. 4936, statement regarding the applicable test from the EPA Final Rule granting DLA’s earlier petitions requesting an exemption to import PCBs from U.S. installations in Wake Island and Japan for disposal. See footnote 3, above. Even if such facilities become available in the future, the United States
Government would still need to enter bilateral arrangements with Japan permitting the U.S. to “import” PCBs into Japan. For many reasons, not the least of which is the disparity between the PCB disposal capacities of our two nations, it seems unlikely the U.S. would be able to obtain such permission in the next five years. See footnote 15. The JEGS currently prohibit treatment on USFJ installations. USFJ and DoD officials work closely with Japanese Ministry of Environment (MOE) officials on environmental matters pertaining to U.S. forces there and participate in an Environmental Steering Committee, and the PCB Technical Working Group (PCB TWG). The GoJ takes the position that U.S. generated PCBs should be disposed of at U.S. facilities and that the limited disposal capacity being developed in Japan was intended only to meet Japanese requirements according to the commitments the GoJ has made in its 2001 law (enacted for the purpose of disposing of domestic Japanese PCBs by 2016). See, for example, Environmental Subcommittee, PCB Technical WorkingGroup, Minutes of Second Meeting, Oct. 25, 2002. Like other documents from the PCB TWG, this is a bilateral U.S./GoJ document for official use only and not available for release outside the USFJ and GoJ MOE, unless the consent of the MOE is obtained. Requests to the Japanese MOE through USFJ may be made by contacting the DLA-P LNO, Maj. Mike Ercolano, DSN: 312-225-2475; cell phone number 090-6861- 4245; email: Michael.Ercolano@usfj.mil. The commercial price list JESCO provides to its Japanese customers contains disposal rates that appear to be many times greater than disposal rates in the U.S. and significantly higher than DoD’s costs for domestic disposal even when ocean transportation is factored in. For example, the JESCO 2005 price list offers 1810 yen/kg for light ballasts, equating to approximately $8.00/lb; 422,000 yen per 10-15 kg transformers which equates to approximately $4,200.00 for an average sized 33 lb. transformer (not including the costs of in-country transportation to the disposal facility). By contrast, DRMS’ PCB disposal prices average about $0.40/lb., not including ocean or domestic transportation costs. The National Defense Authorization Act for Fiscal Year 1999, section 324, directed the Secretary of Defense to submit a report to the Congress regarding foreign manufactured PCB waste under
control overseas. The EPA concurred in its release, noting that it looked forward to working with DoD to
ensure all PCB wastes are handled in an environmentally sound manner. The report stated in pertinent part:

“Shrinking access to adequate disposal facilities overseas is an impedimentto the environmentally sound disposal of foreignmanufactured PCB wastes. Most of the facilities that can dispose of PCBs in
accordance with DLA standards are located in Europe or North America. Over the past several years, the European Union (EU) member States have been revising their waste policies to restrict transboundary movements of
hazardous waste. Currently, EU law prohibits imports into the EU of waste for disposal, except for parties to the Basel Convention. However, Basel parties wishing to export waste into the EU for final disposal must obtain prior approval from the importing country and must affirmatively
show that they do not have and cannot acquire facilities to dispose
of the waste in an environmentally sound manner domestically. It is not easy to obtain the cooperation of both the importing and exporting
countries and the approval process is very time consuming.”(Report to Congress, Foreign Manufactured PCBs at U.S. Military Installations Overseas, page 15, March 1999). Since that time two more international conventions addressing international
trade or controls in toxic chemicals have come into effect: the Stockholm Convention on Persistent Organic Pollutants (POPS), entry into force on May 17, 2004, and the Rotterdam Convention on Prior Informed Consent, (PIC), entry into force, June 2004. Like the Basel Convention, the U.S. has signed, but not ratified, these conventions. Ministry of the Environment Government of Japan Memorandum for U.S. Forces Japan dated June 20, 2005. Subject: Basel Notification for PCB Disposal This issue has been pursued repeatedly in discussions between the two governments, and has been subject to discussions within the Environmental Steering Committee and other environmental and diplomatic channels. The latest of these, a formal written USFJ request to the MOE on May 18, 2005, has not yielded positive results. In addition to DLA’s efforts, it should be noted that the Department of Defense has consistently sought to obtain relief from the situation DLA faces when trying to obtain disposal resources
overseas in host nations without sufficient capacity. DoD’s 1999 Report to Congress (i.e., see footnote 32) requested legislation to amend the TSCA import ban, to allow the U.S. to import PCBs for disposal in the U.S., and requested legislation to implement the Basel Convention. DoD has not obtained this legislative relief.

Attachments

12

June 2005 Defense Logistics Agency Request for Exemption under Sec. 6(e)(3)(B) of the Toxic Substances Control Act

June 2005 Defense Logistics Agency Request for Exemption under Sec.6(e)(3)(B) of the Toxic Substances Control Act