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Office of Pollution Prevention and Toxics Q&A DOCUMENT: Recycling and the TS CA Chemical Substance Inventory - Premanufacture Notification and Chemical Data Reporting Requirements

As part of the Inventory Upda te Reporting (IUR) Modifications final rule, EPA is changing the identification of the regulation from IUR to Chem ical Data Reporting (CDR). However, EPA is retaining the use of the IUR acronym throughout th is document. The read er should recognize

that where IUR is used to refer to the 40 CF R 711 regulations or to future IUR submission periods, IUR and CDR are synonymous.

This document is intended sole ly as guidance. This guidanc e is not a regulation, nor is it intended to change any underlying regulatory requirements prescribed by the Toxic Substances Control Act, 15 U.S.C. 2601 et seq. and specified in the Premanufacture Notification regulations, 40 CFR part 720 or the TSCA Chemical Inventor y Reporting regulations, 40 CFR part 711. This guidance merely documents and clarifies existi ng regulatory requirement s and Agency guidance on Inventory listing, PMN, and IUR requirements.

Nothing in this document serves to supersede or alter existing regulator y requirements, nor to impose any new legally binding requirements on EP A, state/local agencies, or the regulated community. The general descripti on provided in this document ma y not apply to a particular

situation based on the circumstances. Furthermor e, interested parties remain free to raise questions or objections about the substance and application of th e guidance as they arise in a particular situation. EPA retains the discretion to adopt approaches on a case-by-case basis that differ from those described in this guidance wh ere appropriate. This document may be revised periodically wit hout public notice.

A. General Byproduct Questions

A. 1. What is a byproduct?

A byproduct is defined under 40 CFR 704.3 of the General Reporting and Recordkeeping Provisions for section 8(a) Information Ga thering Rules and 40 CFR 720.3(d) of the Premanufacture Notification (PMN) Requirement s as “... a chemical substance produced without a separate commercial in tent during the manufacture, pro cessing, use, or disposal of another chemical substance or mixture.” A byproduc t is often (but not ne cessarily) considered a waste by the manufacturer.

A.2. How do I properly identify my byprodu ct chemical substance for IUR purposes?

Byproduct chemical substances are often chemi cal combinations of variable or complex composition, and as such can be identified as a single chemical substance that represents the chemical process stream. Complex chemical subs tances are listed (or can be listed) on the Inventory as chemical substances of Unknow n or Variable composition, Complex reaction products and Biological material s (“UVCB” substances). EPA’s New Chemicals website hasMay 2011

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Office of Pollution Prevention and Toxics guidance documents 1 to help determine the appropriat e name for UVCB substances, and to identify when a combination of chemicals is a UVCB substance and not a mixture. As a general matter, “each combination of substances resulting from a reaction is considered by the Agency to be either (1) a mixture, composed of two or more well-defined ch emical substances to be named and listed separately, or (2) a r eaction product, to be lis ted as a single chemical substance, using one name that collectively describes the products, or, failing that, the reactants used to make the products.” (See http://www.epa.gov/oppt/newchems/ pubs/rxnprods.txt ) Situations may exist where the byproduct substance is actually considered a mixture under TSCA, and it is EPA’s general view, consistent with past guidance, that “[a] combination of pr oducts resulting from a chemical reaction is considered a mixture provid ed that all of the component product substances are unambiguously identified and are represented as forming each time the reaction is run.”

Approximately one third of the substances incl uded on the Inventory are UVCB substances. UVCB substances may include an Inventory defin ition to further describe the substance. Here are some examples of UVCB substances . Please see EPA’s UVCB guidance (see http://www.epa.gov/oppt/newchems/pubs/uvcb.txt ) for further discussion:

Dust, iron-ore, sinter

CASRN 69012-53-9 Definition: Dust generated dur ing the making, breaking and ha ndling of sinter which is recovered through the use of po llution abatement equipment.

Gold, dross

CASRN 69029-68-1 Definition: A scum formed on the surface of molten gold.

Electrolytes, copper-manufg., spent

CASRN 69012-54-0 Definition: Spent copper sulfate electrolyte consisting of copper sulfate and sulfuric acid resulting from the electrolytic refining of copper.

If produced in sufficient quantities, these s ubstances should be reported by the byproduct manufacturer as they are listed by EPA in th e TSCA Inventory. As a single UVCB substance, this type of byproduct material does not need to be further analyzed by its manufacturer to determine the precise, detailed composition. Beca use byproducts would typically or generally be identified for TSCA purposes as single UVCB s ubstances, the Agency does not believe that the identification and reporting of byproducts would be significantly burdensome. As a general matter, if there is to be appr opriate stewardship of potential ch emical risks, EPA believes that

1 A list of the guidance documents available on the New Chemicals website can be found at http://www.epa.gov/opptintr/newchems/pubs/guideman.htm . This list includes the following two guidance

documents: Chemical Substances of Unknown or Variable Composition, Complex Reaction Products and Biological Materials: UVCB Substances (available at http://www.epa.gov /opptintr/newchems/pubs/uvcb.txt ) and Combinations of Two or More Substances: Complex Reaction Products (available at http://www.epa.gov/opptintr/newchems/pubs/rxnprods.txt).May 2011

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Office of Pollution Prevention and Toxics chemical manufacturers, processors, and user s should know and understa nd the identities of chemicals they handle.

A.3. Is it possible I am manufactu ring a chemical byproduct in the course of manufacturing

an article?

Yes, potentially. You need to consider whethe r you are manufacturing a chemical substance as a byproduct when you are manufacturing an article. For example, if your use or processing of a chemical substance (chemical A) to manufacture an article coincidenta lly produces a different substance (chemical B), apart from the articl e you intended to manufacture, then you have manufactured a byproduct chemical substance. This situation may occur, for example, when you are stripping a substance off of a part of the article, and the stripping process results in the

formation of a different substan ce (possibly resulting in a “use d” stripping solution). See the Instructions for Reporting and question A.2 for further info rmation on properly identifying byproduct chemical substances. Note that if you intentionally manuf actured the chemical substance (chemical B) for a commercial purpose se parate from that of th e article, then you have manufactured a coproduct and not a byproduct. See discussion of coproducts in question A.7,

below.

A.4. Is a byproduct required to be listed on or added to the TSCA Chemical Substance Inventory (the Inventory)? Are byproducts not listed on the TSCA Inventory subject to the TSCA section 5 premanufacture notification (PMN) requirements?

It depends. A byproduct is required to be listed on the Inventory if the byproduct is used for a separate non-exempt commercial purpose. The f act that a byproduct does not have a separate commercial purpose at the time it is manufactured does not affect whether the byproduct can be

used subsequently for a non-exempt commercial purpose after it is manufactured. A byproduct could be manufactured initially without a separate commercial purpose, and yet be used for some commercial purpose after it is manufactured.

A byproduct that is not used for a non-exempt comme rcial purpose after it is manufactured is not required to be listed on the TSCA Inventory (s ee 40 CFR 710.4(d)(2) of the TSCA Inventory Reporting Regulations and 40 CFR 720.30(h)(2) of th e PMN requirements). In most cases, a byproduct that is used for a commercial purpose is requi red to be listed on the Inventory. But see the exceptions disc ussed in question A.5.

A.5. Are some byproducts with a commercial purpose exempted from the TSCA Inventory listing requirement?

There are some circumstances where a byproduct is exempted from the Inventory listing and PMN reporting requirements, notwith standing the fact that it is used for a commercial purpose after it is manufactured. See 40 CFR 710.4(d )(2) (in note) and 40 CFR 720.30(g). 40 CFR 720.30(g) states that a b yproduct is exempted if:May 2011

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Office of Pollution Prevention and Toxics “its only commercial purpose is for use by public or private or ganizations that (1) burn it as a fuel, (2) dispose of it as a waste, includ ing in a landfill or for enriching soil, or (3) extract component chemical substances from it for commercial purposes. (This exclusion only applies to the byproduct; it does not apply to the com ponent substances extracted from the byproduct.)”

In other words, when a byproduct is burned as a fu el, disposed of as a wa ste material including disposal in a landfill or for enriching the soil , or used for extracting component chemical substances, the manufacture of the byproduct is considered to have been for a limited commercial purpose and such manuf acture is not required to be reported for Inventory listing, PMN, or IUR purposes. Further discu ssion is provided in question A.6.

A.6. Are byproducts required to be repor ted for Inventory Update Reporting (IUR)?

All substances that are listed on the Inventory are subject to the IUR requirements if their manufacture meets the production th reshold requirements and they are not otherwise excluded. Byproducts that are manufactured in volumes of 25,000 lb at a single site are subject to IUR requirements if used for a non-exempt commerci al purpose. However, 40 CFR 711.10(c) states that reporting is not required fo r those substances meeting the requirements of sections 720.30(g) or (h). Therefore, manufacturers are not required to re port their byproduct if:

“...its only commercial purpose is for use by publ ic or private organizations that (1) burn it as a fuel, (2) dispose of it as a waste, includ ing in a landfill or for enriching soil, or (3) extract component chemical substances from it for commercial purposes. (This exclusion only applies to the byproduct; it does not apply to the com ponent substances extracted from the byproduct.)”

In interpreting section 40 CFR 720.30(g) above, one needs to consider the following important points.

 Regarding 40 CFR 720.30(g)(1), note that wh ere a byproduct is burned as a fuel, and is also being burned for other non-exempt commercial purpose for the byproduct (e.g., if the combustion residue is used as a pro cess input), then the exemption under 40 CFR 720.30(g)(1) would not apply.

 Regarding 40 CFR 720.30(g)(2), although the manufacture of a byproduct is not reportable if the byproduct is subsequently disposed of as a waste for purposes of enriching the soil (e.g., to change the soil pr operties in a desirable way, such as by serving as a filler to make the soil less dense or enhancing moisture retention), a

substance used as a fert ilizer is not necessarily an excluded byproduct. For instance, if the substance’s ordinary manner of use is as a fertilizer, then the substance is not a byproduct in the first place, and the provisi ons at 40 CFR 720.30(g) are inapplicable.

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Office of Pollution Prevention and Toxics  Regarding 40 CFR 720.30(g)(3), individual co mponent chemical substances extracted from a byproduct are reportable substances if they are extracted for a commercial purpose, even if the manufacture of the byproduc t itself is not reportable pursuant to 40 CFR 720.30(g).

A “component chemical substance” means a chemical substance that already exists in the byproduct. If the recycling process involves breaking chem ical bonds or forming new

chemical bonds to convert a chemical subs tance in the byproduct into a different chemical substance (which is then extracted), then the recycling process does not count as extracting a component chemical substance of the byproduct. Note: In circumstances where other substances in the byproduct are chem ically reacted in orde r to facilitate the separation of a desired component chemical s ubstance, such that the component chemical

substance itself is not chemi cally changed before being ex tracted, then the process does constitute an extraction of the unchang ed component chemical substance.

Note: Small businesses are generally not requir ed to report information under IUR. Below are

the two standards that can be us ed to qualify you as a small business for IUR purposes. Note that you may be a small business for one substance bu t, because of your production volume, not for another (40 FR 704.3, referen ced by 40 CFR 711. 9).

(1) First standard. A manufacturer or importer of a subs tance is small if its total annual sales, when combined with those of its pa rent company (if any), are less than $40 million. However, if the annual production or importatio n volume of a particul ar substance at any

individual site owned or cont rolled by the manufacturer or importer is greater than 45,400 kilograms (100,000 pounds), the manufacturer or importer shall not qualify as small for purposes of reporting on the production or impor tation of that substance at that site, unless the manufacturer or importer qualifie s as small under standard (2) of this

definition.

(2) Second standard. A manufacturer or importer of a substance is small if its total annual sales, when combined with those of its pa rent company (if any), are less than $4 million, regardless of the quantity of substances produced or imported by that manufacturer or importer.

Notwithstanding this exclusion, a person who qualif ies as a small manufacturer is required to report under the IUR regulation for any chemical s ubstance that is the subject of a rule, proposed or promulgated under section 4, 5(b) (4), or 6 of TSCA, or is the subject of an order in effect under section 5(e) of TSCA, or is the subject of relief that has been granted under a civil action under section 5 or 7 of TSCA. (40 CFR 711.9)

A.7. Am I manufacturing a byproduct or a coproduct? What is the difference?

The simultaneous manufacture of multiple chemical substances can occur for a variety of reasons. In the case of byproduct manufactur e, the byproduct is manuf actured without any separate commercial intent—that is, without any commercial intent other the commercial intentMay 2011

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Office of Pollution Prevention and Toxics to manufacture, process, use, or dispose of some other chemical substance or mixture. See 40 CFR 704.3 (definition of “byproduct”). The Invent ory listing and IUR requirements are based on the disposition of the bypr oduct, as explained above.

In the case of coproduct manuf acture, there is commercial inte nt to produce the coproduct, separate from whatever commercial intent may conc urrently exist to manufacture, process, use, or dispose of some other chemical substance or mixture. If both coproducts are chemical substances under TSCA, both are required to be listed on the Inve ntory unless otherwise excluded and both are subject to the IUR requirements if listed on the Inventory.

A.8. Byproducts whose only commercial pur pose is as a source from which component chemical substances are extracted are not subjec t to Inventory listing or IUR. What is meant by “extract a component chemical substance”?

A component chemical substance is a chemical substance that is present in the byproduct prior to

extraction. Heat or chemical reactions can be us ed to extract a component chemical substance, but the component substance extracted must be left chemically unchanged by the extraction process. Thus, for example, a chemical r eaction could be employed on a byproduct to convert component chemical substance X into chemical subs tance Y, so as to faci litate the extraction of component chemical substance Z (which under goes no chemical transformation) from the byproduct. However, if component chemical substance Z from the byproduct were first transformed into another chemical substance, an d then that different chemical substance were extracted, the overall process w ould not qualify as extracti on of a “component chemical

substance.”

Note that the exemption at 40 CFR 720.30(g) only applies to the manufac ture of the byproduct and does not apply to the manufacture of the extract ed chemical substance. Thus, regardless of

whether the manufacturer of th e byproduct receives the benefit of this exemption (determined in part by whether or not the byproduct is subseque ntly used to extract component chemical substances), the manufacturer of the extracte d chemical substance is subject to IUR.

Note also that the component chemical substanc e must be viewed as a particular chemical substance. For instance, elemental Nickel (Ni 0 ) and nickel hydroxide (Ni(OH) 2 ) have different

molecular identities and are not the same chem ical substance. Additionally, because the Ni +2 ion

cannot exist on its own and is therefore not considered a chemical substance, the Ni +2 ion is not considered a component chemical substance of th e byproduct. Consider the following scenarios:

Scenario 1: If Ni 0 is recovered from a byproduct containing Ni(OH) 2 as a component chemical substance, then an extraction of a component chemical substance has NOT occurred. Rather, the byproduct has been used as a chemical feedstock to manufacture

Ni 0 , and both the byproduct and Ni 0 are therefore subject to IUR.

Scenario 2: If Ni(OH) 2 is recovered from a byproduct containing Ni(OH) 2 as a component chemical substance, then an ex traction of a component chemical substance has occurred. In this case, the byproduc t is not subject to IUR. The Ni(OH) 2 is subject toMay 2011

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Office of Pollution Prevention and Toxics IUR, as the extracted chemical itself doe s not qualify for the exemption at 40 CFR 720.30(g) (the provision applies to the byproduct, not to the chemical substance extracted from the byproduct).

For TSCA purposes, chemical substances ar e uniquely identified, typically by a Chemical Abstracts Service Registry Number (CASRN) wh en listed on the Inventory. However, for confidential substances on the Inventory, an A ccession Number is used in place of a CASRN; these Accession Numbers are assigned by EPA.

A.9. EPA has a lot of programs encouraging recycl ing. If I am recycling my byproduct, do I

need to be concerned about In ventory listings or the IUR?

EPA does encourage recycling, and has many pr ograms to educate people and encourage recycling and reuse of materials. However, the Inventory is a listing of chemical substances in commerce, and many recycling activities invol ve bringing materials into commerce that otherwise would be disposed of as a waste and perhaps landfilled. If your manufactured substances are being recycled, you do need to cons ider whether those substances must be listed on the Inventory. In addition, those substa nces may be subject to the IUR.

As with all manufactured chemicals, IUR inform ation on byproduct chemical s is of interest to the EPA because such exposure-related information is not otherwise available, and it is necessary for the Agency to manage risks associated with these chemicals, to fulfill its mandate of protecting human health and the environment. EPA does not believe byproducts inherently pose lower exposures or risks than ot her manufactured chemicals.

A.10. If my waste material is exempted from reporting by the RCRA program, do I need to be concerned with reporting under IUR? Likewise , if I report under IUR, do I need to be concerned with reporting for RCRA purposes?

The determination of the need to report for IU R and for RCRA are independent determinations.

The IUR is focused on chemicals in commer ce and RCRA is focused on waste and waste minimization. There are many examples of a waste stream from one process serving as an input or feedstock to another process. RCRA exemp tions (or exclusions) do not apply to TSCA reporting obligations, and, given the different purposes of RCRA reporting and the TSCA IUR rule, are not necessarily relevant to IUR re porting. It is important to note that finding a

commercial use for a substance that would othe rwise be considered a waste under RCRA can

relieve the manufacturer of that substa nce from some RCRA requirements, but may consequently subject that manufacturer to TSCA reporting requirements. EPA is aware that, in certain circumstances, reporting under both RCRA and TSCA may be required. It is the Agency’s intention to identify a nd address such circumstances, re taining reporting under the rule that best fits Agency needs.

A byproduct that is manufactured for a commercial purpose and, after manufacture, is used for a separate commercial purpose may be ex cluded from reporting under IUR by 40 CFR 720.30(g)(2). 40 CFR 720.30(g)(2) stat es that if the byproduct’s on ly commercial purpose is forMay 2011

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Office of Pollution Prevention and Toxics use by public or private organizations that dispose of it as a waste, including in a landfill or for enriching soil, the bypro duct is exempted from being repor ted under IUR. Following are two examples of manufacturers th at may be subject to RCRA re quirements, and how the 40 CFR 720.30(g)(2) byproduct exemption applies:

Example 1: Company ABC manufactures a byproduct. The byproduct does not qualify as a

RCRA hazardous waste and does not meet the re quirements of any exemption in 40 CFR 261.4.

The manufacturer wishes to dis pose of the byproduct, which can be used to enrich soil (e.g., to change the soil properties in a desirable way, such as by serving as a filler to make the soil less dense or enhancing moisture retention). Co mpany ABC provides this byproduct to another person who then disposes of it as a waste by spre ading it on land to enrich the soil. If this disposal of the byproduct is the byproduct’s sole commercial use, the byproduct qualifies for the exemption under 40 CFR 720.30(g)(2). = Company ABC is not subject to reporting under the IUR, respecting the manufacture of its byproduct.

Example 2: Company ABC manufactures Byproduct X, which is not considered a RCRA solid waste because it serves as a feedstock to produce a zinc fertilizer and meets the requirements of 40 CFR 261.4(a)(20) (i.e., it is a h azardous secondary material used to make zinc fertilizers). The zinc fertilizer produced meets the requireme nts of 40 CFR 261.4(a)(21). Byproduct X is not being disposed of as a waste and therefore does not meet the IUR byproduct exemption at 40 CFR 720.30(g)(2). Company ABC is subject to reporting under the IUR, respecting the manufacture of its byproduct.

A.11. If I am burning my byproduct for energy recovery, should I be concerned with reporting

under IUR?

The distinction between whether a byproduct is burned for energy recovery or incinerated is generally not relevant under the IUR. This is because the IUR exempts both byproducts whose “only commercial purpose” is for burning as a fuel (40 CFR 720.30(g)(1)), and byproducts that are “not used for commercial purposes” (40 CFR 720.30(h)(2)). This latter category would include incineration, solely for destruction. Note, though, that where a byproduct is burned for energy recovery, but that is not the only co mmercial purpose for the byproduct (e.g., if the combustion residue is used as a process input ), then the exemption under 40 CFR 720.30(g)(1) would not apply.

B. General Byproduct Reporting Examples

The following examples consider the reporting responsibilities associated with recycling, reusing, reprocessing, or remanufacturing chemical substances. Please note that these examples are not comprehensive and that ea ch situation needs to be individually considered. If after reviewing these e xamples you remain unclear about your own situation, please contact the EPA.

B.1. How do I determine if I am manufacturi ng or purifying a chemical substance?May 2011

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Office of Pollution Prevention and Toxics There are numerous examples of chemical substa nces separated/extracted from various sources, such as air, mined substances, petroleum refine ry streams, and byproduct/waste streams that are considered manufactured and therefore, repo rtable for the TSCA Inventory. The separation techniques are quite varied such as solvent ex traction, distillation, and cr ystallization. EPA’s rules implementing TSCA Sections 5 and 8(a) clarify that the st atutory definition of “manufacture” includes persons who extract a chem ical from another chemical substance or mixture of substances. See 40 CFR 711.3 (d efining “manufacture”), 704.3 (defining “manufacture for a commercial purpose”), and 720.3(t) (defining “ma nufacturer”). A person who extracts a component chemical substance from a previously existing chemical substance or a complex combination of substances is a manufact urer of that component chemical substance.

To determine whether you are manufacturing or pur ifying a chemical substance, you need to first make sure that you have properly identified the chemical substance(s) used as the precursor chemical(s). See the answer for question A.2 fo r further substance identif ication information. Purification does not change the chemical id entity, while extraction involves removing one substance from another substance (typically a UVCB chemical). In the latter case, the original chemical has a different identity than the ex tracted chemical. The extraction of component chemical substances from certain complex bypro duct mixtures or process streams, such as UVCB substances, is not considered purificati on, because the complex byproduct mixture and

the extracted substance do not have the same ch emical identity for TSCA purposes, and they may have significantly different compositions.

B.2. Can you provide an example of when a substance is purified?

When 80% pure chemical A (correctly identified, for TSCA purposes, as that discrete substance and not as a UVCB substance) is purified to ma ke 98% pure chemical A, the activity does not constitute manufacturing of chemical A, but it is considered to be processing of chemical A for purposes of IUR and PMN reporting. The two batc hes of chemical A differ only in their purity. For purposes of TSCA, they are considered to be the same chemical substance. See question A.2 for further discussion regarding naming byproducts.

Note that it is the original manufacturing of th e 80% pure chemical A that triggers reporting under IUR. Note also that the need to repor t any substance produced during the purification process may need to be addressed (e.g., the subs tance(s) removed from Chemical A may trigger reporting itself, depending upon the sp ecific situation and th e use of the removed substance(s)).

B.3. Can you provide examples of when a substance is extracted and not purified?

Example 1. For example, a manufacturing process invol ving the use of solvent A results in the manufacture of a spent solvent. As a variable, complex mixture of solvent A, finished product, unreacted reactants, individual byproduct substances, and other impurities, the spent solvent is

considered to be a UVCB substance. It is not unu sual for the manufacturer to extract solvent A from this UVCB substance. In such a case, th e extracted solvent A is considered to be manufactured, and therefore is reportable for purposes of IUR. When the spent solvent is a byproduct whose only commercial purpose is the extr action of a component chemical substance,May 2011

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Office of Pollution Prevention and Toxics solvent A, the byproduct exemption at 40 CFR 720( g)(3) can be applied and the spent solvent byproduct does not need to be reported. The extr acted solvent A is neve rtheless reportable for purposes of IUR.

Example 2. For recycling or reclaiming, it is impo rtant to determine wh ether the resulting

chemical substance is the same or different th an the starting material . If the starting and resulting substances are the same (e.g., a newly manufactured substance that one intends to make, such as salicylic acid, which is initially impure but then is purified), then the activity is considered to be processing and no manufacturing has occurred. If the resulting substance is different, for example, reduction of copper oxide to elemental copper, then the activity is considered to be manufacturing.

B.5. Can you provide some examples of usin g a byproduct as a feedstock to manufacture

another chemical?

Example 1: Your byproduct is listed on the TSCA I nventory as a UVCB s ubstance and includes among its components a certain substance (chemical R). Without removing chemical R from the byproduct, you react chemical R with anothe r substance to produce chemical M for a commercial purpose. In this sc enario, chemical M is not a component chemical substance present in the byproduct and has been newly created. The byproduct has been used to manufacture chemical M, which is listed on the TSCA Inventory. Both the byproduct and chemical M are subject to IUR requirements. Chemical R was never separated from the byproduct and is not part of the TSCA chemical identity of the byproduc t, therefore is not subject to either Inventory listing or update reporting requirements.

Example 2: A process involves using an etchant to stri p copper off of a subs trate, resulting in a byproduct containing a complex combination of s ubstances known as “spent cupric chloride etchant” (or “spent etchant”). If the spent etchant is recy cled, and the recycler produces elemental copper from the spent etchant by elect rolytic reduction, then the recycler used the spent etchant as a feedstock and used a chemical reaction to recover a chem ical substance. The recycler did not extract a component chemical substance. The byproduct manufacturer should report the spent etchant and the recycler should report th e elemental copper (assuming other requirements, such as produc tion volume, are met).

Example 3: Tall oil is a byproduct from the pulping of pine trees representing a complex combination which is composed of numerous chem ical substances—the most common of which are rosin and fatty acids, with le sser amounts of terpenes and ster ols. Each species of pine tree yields a different precise composition of tall oil, and the composition of the tall oil could be influenced by the climate and local terrain. This byproduct, tall oil, is used as the feedstock for fractional distillation, to form a variety of useful fractions (rosi n, TOFA, distilled tall oil, heads and pitch). The distillation/ex traction of the various fractions from tall oil constitutes the

manufacture of those fractions.

B.6. When do you not need to repo rt a byproduct that is recycled?May 2011

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Office of Pollution Prevention and Toxics A manufacturer may send byproduct materials to an unrelated plant for recycling rather than disposing of the byproduct material as a waste. Typically, recycling the byproduct will result in IUR responsibilities respecti ng the original manufacture of the byproduct (assuming other criteria, such as production volume, are met). However, there are certain commercial uses to which a byproduct may be put, specified in 40 CFR 720.30(g), which relieve the byproduct manufacturer from the need to report the byproduct . For instance, if the recycler extracts a component chemical substance from the byproduc t for a commercial purpose, then the byproduct

manufacturer need not report the byproduct.May 2011

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Office of Pollution Prevention and Toxics C. Specific Byproduct Reporting Examples

C.1. My site consists of a petroleum refinery and a chemical plant. The refinery chemically removes sulfur from crude oil. The sulfur is th en used as an intermediate by our chemical plant to produce other chemical substances. Do I need to report the sulfur under the IUR rule? What if the chemical plan t does not use the sulfur, but it is instead removed from the crude oil and disposed of as a waste in a landfill?

The manufacture of the sulfur byproduct is reportable under the IUR rule if you then use that sulfur byproduct for a non-exempt commercial purpose, including as an intermediate to produce other chemical substances for a commercial purpo se. If you dispose of the sulfur as waste, however, you do not need to report manufacture of the sulfur under the IUR. If your site disposes of a portion of the sulfur and uses th e remainder to manufacture other chemicals, you should provide IUR reporting of only the amount of sulfur used to manufacture other chemicals. (See 40 CFR 711.10(c) and 40 CFR 720.30(h)(2))

C.2. At a site, an ore (e.g., bauxite) is refi ned to create a product (e.g., alumina). The ore contains another metal compound or salt, whic h is reduced to the elemental metal, removed from the product during processing, and disposed of as waste. Should the elemental form of this metal be reported under the IUR rule?

No. Reporting is not required if the metal bypr oduct from the refining is disposed of as a waste. See 40 CFR 711.10(c) whic h references 40 CFR 720.30(g).

C.3. If the elemental metal byproduct mentio ned in the previous question is sold, is it subject to IUR reporting requirements?

Yes, because neither the exemption provision at 40 CFR 720.30(g) nor the exemption provision at 40 CFR 720.30(h)(2) would apply to the manufact ure of this byproduct metal. Because the byproduct metal is being used for a commercial purpose (other than the commercial purposes listed in 40 CFR 720.30(g)), you would evaluate the IUR reporting requirements for this substance (e.g., was the amount of the byproduct me tal produced at a sing le site during the reporting year 25,000 lb. or more?)

C.4. My metal smelting process generates a large amount of du st, which is collected in a baghouse. Since this dust has a high metal cont ent, we recycle the baghou se dust rather than disposing of it. Do I have any repor ting obligations for this material?

The baghouse dust is a byproduct of your manufactur ing process. If you use it for a non-exempt commercial purpose, you would evaluate the IU R reporting requirements for the baghouse dust (e.g., was the amount of the baghous e dust produced at a single si te during the reporting year 25,000 lb. or more?) or the PMN re porting requirements, if the substance is not listed on the TSCA Inventory.May 2011

Note: For purposes of this document, IUR and CDR are synonymous.

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Office of Pollution Prevention and Toxics An example of a non-exempt commercial purpos e is to smelt the baghouse dust to produce a metal. The smelting process uses chemical reduction, a form of extractive metallurgy. A

common mistake is to think that at high temperature the metal just melts out of the ore or baghouse dust. However, if you just heat up th e ore without the proper reducing agent, you will just obtain molten ore. A metal obtained from baghouse dust by chemical reduction or smelting is manufactured using a chemical reaction, and cannot be considered to be a component chemical substance (which would have potentially qua lified the byproduct for the 40 CFR 720.30(g) exclusion from reporting). Both the baghouse dust and the metal produced by the smelting process are subject to re porting under the IUR.

C.5. In the secondary aluminum process, sc rap is remelted to recover aluminum alloy recycled ingot (RSI). Is the reco vered aluminum reportable?

Recovered aluminum alloys from scrap are mixtures. The aluminum is separated without chemical alteration and therefore is not reportabl e under the IUR. Keep in mind, however, that if you import aluminum scrap to re-melt, that th e import of the alloy components is reportable

under IUR.

C.6. Chemical substance X is formed unint entionally, without any separate commercial purpose, during the manufacture of another che mical substance, Y. Furthermore, it is not isolated from substance Y. Would it be accura te to describe substance X as an impurity with no reporting obligation?

Yes. Chemical substance X is both a byproduc t and an impurity. The unintentional byproduct that remains with the intended product (i.e., is no t isolated from that intended product) is an impurity. The manufacture of that impurity is not reportable for PMN or IUR purposes. See 40 CFR 711.10(c) and 40 CFR 720.30(h)(1).

However, if the chemical substance th at remained with the primary product did have a separate commercial purpose – for instance, if it improved the performance of the primary product – it would be neither a byproduct nor an impurity a nd its manufacture would be reportable for PMN or IUR purposes.

C.7. Our organization uses metal catalysts. Wh en the catalysts are sp ent, they are sold to metal reclaimers who extract the metals out of the spent catalyst. The only value that we receive for the spent catalyst is the value of the metals reclaimed. Would we have reporting obligations under the IUR for this situation? If so, what substances would actually be reported?

Your spent catalyst is a byproduct, and as such is subject to reporting unless it has no commercial purpose or if its only commercial purpose is for use by public or private organizations that (1) burn it as a fuel, (2) dispos e of it as a waste, including in a landfill or for enriching soil, or (3) extract component chemical substanc es from it for commercial purposes. (This exclusion only applies to the byproduct; it does not apply to the component substances extracted from the byproduct.) (40 CFR 720.30(g))May 2011

Note: For purposes of this document, IUR and CDR are synonymous.

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Office of Pollution Prevention and Toxics Therefore, your spent metal cat alyst byproduct is reportable unless the extracted substances are component substances of the byproduct. If the extr acted substance is an elemental metal, but the component substance of the byproduct is a metal compound, salt, or complex, then the component substance of the byproduct is differe nt from the extracted substance (e.g., some chemical reaction took place to convert the metal compound into elemental metal). In this case, the exemption at 40 CFR 720.30(g)(3) is inappli cable and the byproduct is potentially reportable

under the IUR.

If the byproduct is pote ntially reportable under the IUR, note that any applicable IUR reporting thresholds for the byproduct manuf acturer would be based on the weight of the byproduct , not the weight of the reclaimable metal content. By contrast, any a pplicable IUR reporting

thresholds for the metal reclaimer would be base d on the weight of the reclaimed metal, not the weight of the byproduct.

C.8. We have facilities that recycle spent solvents. The spen t solvents are received as a hazardous waste and are often complex mixture s of different types of solvents. These

materials are re-distilled to remove water and other contaminants and to separate the various solvents, and are re-sold as solvents. Is the recycling of the solvents a "manufacturing" activity?

In this case, the spent solvents are considered to be byproducts of use. However, according to 40 CFR 720.30(g), the manufacture of a byproduct is exempt from reporting when the byproduct is solely used to extract a component chemical substance from the byproduct. The extracted component chemical substances, the various purifi ed solvents this case, are reportable chemical

substances.

C.9. A U.S. plant is importing al uminum castings for purposes of machining them to produce articles for its own use or for sale to custom ers. Recyclable aluminum chips are a byproduct of the machining process. The plant then sells the recyclable aluminum chips. Would the imported aluminum castings need to be reported for IUR purposes?

The determination of the need to report the im ported aluminum castings for IUR purposes hinges on whether the castings are considered by EPA to meet the TSCA definition of an “article” (provided below). If the aluminum castings ar e articles, then the impor t of those castings is exempt from the IUR reporting requirements. See 40 CFR 711.10(b). Under the IUR, the article exemption often applies to items that are in n ear final shape and need only slight trimming or shaping. Contact EPA if you have questions abou t your specific situation. Note that the machined portion (i.e., the aluminum chips), if intended to be removed from the article, may have been reportable at the time of import.

If it is determined that the aluminum castings ar e not articles, then the aluminum is subject to reporting upon import into the United States. For example, if the aluminum chips are the intended product, then the aluminum casting was not in its near final shape and was not an article upon import. The 40 CFR 704.3 definition for article is:May 2011

Note: For purposes of this document, IUR and CDR are synonymous.

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Office of Pollution Prevention and Toxics An article is a manufactured item:

(1) Which is formed to a specific shape or design during manufacture,

(2) Which has end use function(s) dependent in whole or in part upon its shape or design during end use, and

(3) Which has either no change of chemical composition during its end use or only those changes of composition which have no commerc ial purpose separate from that of the article, and that result from a chemical reaction that occurs upon end use of other chemical substances, mixtures or articles ; except that fluids and particles are not considered articles regard less of shape or design.

C.10. The burning of coal by an electric utilit y to generate power results in the production of coal ash. The coal ash can be disposed in a la ndfill, or provided for a beneficial purpose such as for mine fill, to amend soil, to build roadbeds, or for othe r purposes. Is the coal ash reportable?

The coal ash is considered a byproduct of your production of power. Y our need to report the coal ash under the IUR is dependent upon what is done with the coal ash. In your examples above, disposing of the coal ash in a landfill is considered disposing as a waste, and therefore reporting is not required. The applications of mine fill and building roadbeds are considered commercial uses, and, in those circumstances, the co al ash is IUR-reportable. The amending soil application needs to be examined more closely. In general, EPA agrees that mixing coal ash

with mulch is considered soil enri chment. Coal ash is often adde d to soils as an amendment to improve chemical and physical properties, ther eby promoting better plan t growth. Under the IUR rule, a person who manufactures byproducts that are then disposed of as a waste, including in a landfill or for enriching soil, is not s ubject to reporting for the manufacturing of those byproducts (see 40 CFR 711.10(c), which refers to 40 CFR 720.30(g)). Therefore, the coal ash used for soil enrichment in this example is lik ely to qualify for the byproduct exemption. On the other hand, note that giving or sell ing the coal ash to a company th at is using it in a product that is packaged and sold is not tr eating the byproduct coal ash as a wa ste; it is a commercial use of the coal ash not covered by 40 CFR 720.30(g). In such instance , the coal ash byproduct would be subject to IUR reporting.

C.11. During a reporting year, a utility extracts melonite from coal ash byproduct and then uses the resulting, purified ash for a commerc ial purpose. Assuming that 25,000 pounds or more of coal ash is involved, does the utility ha ve to report the coal ash (less the melonite) on Form U? Or is the ash exempt from IUR reporting under the byproduct exemption at 40 C.F.R. 720.30(g) on the basis that ash is a bypr oduct and a component chemical (melonite) is extracted from the ash for commercial value, even though the remaining ash is eventually used for a beneficial purpose?

The byproduct exemption, 40 CFR 720.30(g), specifi es that a byproduct is exempt from reporting if its only commercial purpose is to extr act component chemical substances from it forMay 2011

Note: For purposes of this document, IUR and CDR are synonymous.

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Office of Pollution Prevention and Toxics commercial purposes, or one of the other commerci al purposes listed in 40 CFR 720.30(g). This question identifies that, not only is a component chemical substance (melonite) removed from the byproduct (coal ash), but the remaining coal ash has an additional commercial purpose. Therefore, up to three substances may be reporte d – the coal ash, the melonite, and the coal ash remaining without the melonite content (assum ing it has a different chemical identity under TSCA than the original byproduct). If the remaini ng coal ash is used in another manner that is also exempted by 40 CFR 720.30(g), such as for en riching soil, then it may be exempted from reporting.

C.12. The paper pulping process involves a re cycling loop for the pulping chemicals. The spent pulping liquors (also called black liquor) is a byproduct of the pulping process. The black liquor is burned to produce power, and th e resulting smelt is recovered to begin the process to make white liquor. Since the black liqu or is used as a fuel, do I need to report it

under the IUR? How about the smelt?

The potential exemption in question is found in 40 CFR 720.30(g), which provides the requirements for certain byproduc ts that have limited comm ercial purposes to be excluded from PMN reporting and IUR reporting re quirements. The section states that a byproduct is excluded if:

“...its only commercial purpose is for us e by public or private organizations that (1) burn it as a fuel, (2) dispose of it as a waste, including in a landfill or for enriching soil, or (3) ex tract component chemical substances from it for commercial purposes. (This exclusion only applies to the byproduct; it does not apply to the component substances extracted from the byproduct.)”

Note that, while the black li quor is a byproduct burned as a fuel, it is also used to manufacture smelt (and, ultimately, white liquor). If the smelt were disposed of as a waste in a landfill, then reporting the black liquor would not be required.

However, as a byproduct, the black liquor is reportable when used for a non-exempt commercial purpose. While the black liquor is burned to generate power, the remainder of the byproduct undergoes a chemical change to become manufactured smelt. The smelt is then used to manufacture white liquor via a few additional manufacturing steps. Because the white liquor is used for a comme rcial purpose – as a pulping chemical – the black liquor byproduct does not m eet the 40 CFR 720.30(g) exemption.