[Federal Register Volume 66, Number 99 (Tuesday, May 22, 2001)]
[Rules and Regulations]
[Pages 28066-28093]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-11671]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 261 and 266

[FRL-6976-6]
RIN 2090-AA15


Project XL Site-Specific Rulemaking for US Filter Recovery 
Services Roseville, Minnesota and Generators and Transporters of USFRS 
XL Waste

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule and final project agreement.

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SUMMARY: The Environmental Protection Agency (EPA) will implement a 
project under its Project XL (which stands for eXcellence and 
Leadership) program that will provide regulatory flexibility under the 
Resource Conservation and Recovery Act (RCRA), as amended, for the US 
Filter Recovery Services (USFRS) facility located at 2430 Rose Place, 
Roseville, Minnesota, 55113 and approved Minnesota generators and 
transporters of electroplating waste waters. The purpose of the USFRS 
XL Project is to encourage the use of USFRS' waste water treatment ion 
exchange resin process and thereby increase the recycling of metals 
derived from the treatment of electroplating waste waters subjected to 
this process. It may also result in the reduction in the use of potable 
water and energy savings. To achieve these objectives, this rule once 
adopted by the State of Minnesota would replace existing RCRA hazardous 
waste requirements for the handling of the spent materials in the ion 
exchange resin process (i.e., the resins and filters) at approved 
generators and transporters with a comprehensive program designed and 
implemented by USFRS to properly treat, recycle, store and transport 
these wastes. The overall terms of this XL Project are contained in the 
Final Project Agreement (FPA) and the new rules adopted today. The FPA 
is available at the RCRA Docket in Washington D.C. in the EPA Region V 
library, at USFRS, and on the world wide web at http://www.epa.gov/projectxl/.

DATES: This final rule is effective November 23, 2001. For judicial 
review purposes, this rule is promulgated as of 1:00 p.m. (Eastern 
Daylight Time) on May 22, 2001.

ADDRESSES: A docket containing the rule, FPA and supporting materials 
is available for public inspection and copying at the RCRA Information 
Center Docket Clerk (5305G), U.S. Environmental Protection Agency, 1200 
Pennsylvania Avenue, NW., Washington, DC 20460--Docket Number F-2000-
FRSP-FFFFF and the U.S. Environmental Protection Agency, Region V, 
Waste, Pesticides and Toxics Division, (DRP-8J), 77 West Jackson, 
Chicago, Illinois, 60604. Contact Mr. Robert Egan at (312) 886-6212.

FOR FURTHER INFORMATION CONTACT: Mr. Robert Egan at EPA, Region V, 
Waste, Pesticides and Toxics Division (DRP-8J), 77 West Jackson, 
Chicago, Illinois 60604, (312) 886-6212. Further information on today's 
action may also be obtained on the world wide web at: http://www.epa.gov/projectxl/.

SUPPLEMENTARY INFORMATION: On August 17, 2000, the Environmental 
Protection Agency (EPA) proposed a site-specific rule (65 FR 50283) 
that set forth the mechanisms through which USFRS and participating 
generators and transporters can test the effectiveness of an 
integrated, flexible, performance-based approach for managing ion 
exchange filter resins (``resins'') and associated wastes to determine 
whether this approach promotes an increase in the recovery and 
recycling of metals from electroplating operations, a reduction in the 
amount of hazardous chemicals which are discharged to the local 
publicly owned treatment works (POTWs) and the amount of water used in 
the manufacturing process. The development and implementation of the 
USFRS XL Project will be piloted at USFRS and at approved generators 
and transporters of USFRS resin wastes. The approved generators and 
transporters will handle, store and transport the resin wastes in 
accordance with specific standards contained in new part 266, subpart O 
of Title 40 of the Code of Federal Regulations (``subpart O''). These 
requirements would operate in lieu of the requirements imposed under 
parts 261-265, 268, 270, 273 and 279 of Title 40 of the Code of Federal 
Regulations. As a result, it is anticipated that there will be an 
increase in the recovery and recycling of metals from the 
electroplating waste waters and that the generators will reduce their 
discharge of process waste waters to local POTWs. USFRS will handle the 
resin wastes as hazardous waste and in accordance with subpart O and 
its RCRA hazardous waste permit. The rule imposes on USFRS additional 
reporting and handling requirements in exchange for the regulatory 
flexibility provided to the generators and transporters.

[[Page 28067]]

    Today's final rule promulgates regulations that are identical to 
the proposed rule, except where otherwise noted below. Today's rule 
will facilitate implementation of the FPA that has been developed and 
signed by USFRS, EPA, the Minnesota Pollution Control Agency (MPCA), 
the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and 
Washington in Minnesota, Pioneer Tank Lines.\1\ As generators and 
transporters are approved for participation they too will sign the FPA. 
The FPA is available in the docket for today's action and on the world 
wide web at http://www.epa.gov/projectxl/. The FPA addresses the nine 
project XL criteria, and the expectation of EPA that this XL project 
will meet those criteria. Those criteria are: (1) Environmental results 
superior to what would be achieved through compliance with current and 
reasonably anticipated future regulations; (2) economic opportunity; 
(3) stakeholder involvement, support and capacity for community 
participation; (4) test of innovative, multi-media, pollution 
prevention strategies for achieving environmental results; (5) 
approaches that could be evaluated for future broader application 
(transferability); (6) technical and administrative feasibility; (7) 
mechanisms for monitoring, reporting and evaluation; (8) consistency 
with Executive Order 12898 on Environmental Justice (avoidance of 
shifting of risk burden); and (9) community planning. The FPA 
specifically addresses the manner in which the project is expected to 
produce superior environmental benefits.
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    \1\ EPA mistakenly identified this company as Pioneer Transport 
in the proposed rules. EPA will revise its name in the final rules 
(section 266.301 and 266.303(c)) to reflect the correct name - 
Pioneer Tank Lines.
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    Today's rule is one of the required legal mechanisms necessary to 
implement the provisions of the USFRS XL Project. However, Minnesota 
has an authorized hazardous waste program. Therefore, the requirements 
outlined in today's rule will not take effect until Minnesota either 
receives from EPA authorization for an equivalent legal mechanism to 
implement this rule or the State uses an existing authorized mechanism 
to implement this rule. EPA will not be the primary regulatory agency 
responsible for implementing the requirements of today's rule. The 
State of Minnesota and, in certain areas, the County Agencies will be 
the primary regulatory agency. For the sake of simplicity, however, the 
remainder of this preamble refers to the effects of this rule, although 
it will be the corresponding State and local law and permits by which 
it will be implemented.
    The information presented in this preamble is organized as follows:

I. Authority
II. Overview of Project XL
III. Overview of USFRS XL Project
    A. Scope of the USFRS XL Project
    B. What Problem has USFRS Identified?
    C. What Solutions will be implemented by the USFRS XL Project?
    D. How have the various stakeholders been involved in this 
Project?
    E. How will this project result in cost savings and paperwork 
reduction?
    F. How will EPA ensure the integrity of this XL Project?
    G. How will the terms of the USFRS XL Project and rules be 
enforced?
IV. Rule Description
    A. XL Waste Defined
    B. Waste Identification and Characterization
    C. Notification and recording of participation in the USFRS XL 
Project
    D. Transportation and tracking of USFRS XL waste shipments
    E. Pre-transport and Transportation Requirements
    F. Accumulation and Storage Prior to Shipment
    G. Reporting and Recordkeeping Requirements
    H. Additional Requirements Imposed on USFRS
V. Response to significant public comments and changes from the 
proposed rules
VI. Additional information
    A. What regulatory changes will be necessary to implement this 
project?
    B. Why is EPA supporting new approaches to USFRS XL waste 
management?
    C. How Does this Rule Comply With Executive Order 12866?
    D. Is a Regulatory Flexibility Analysis Required?
    E. Is an Information Collection Request Required for this 
Project Under the Paperwork Reduction Act?
    F. Does This Project Trigger the Requirements of the Unfunded 
Mandates Reform Act?
    G. How Does this Rule Comply with Executive Order 13045: 
Protection of Children from Environmental Health Risks and Safety 
Risks?
    H. How Does this Rule Comply with Executive Order 13132 
Federalism?
    I. How Does this Rule Comply with Executive Order 13084: 
Consultation and Coordination with Indian Tribal Governments?
    J. Does this Rule Comply with the National Technology Transfer 
and Advancement Act?
    K. How Does this Rule Comply with the Congressional Review Act?

I. Authority

    EPA is publishing this final regulation under the authority of 
sections 2002, 3001, 3002, 3003, 3006, 3010, and 7004 of the Solid 
Waste Disposal Act of 1970, as amended by the Resource Conservation and 
Recovery Act, as amended (42 U.S.C. 6912, 6921, 6922, 6923, 6926, 6930, 
and 6974).

II. Overview of Project XL

    The FPA sets forth the intentions of EPA, MPCA, Pioneer Tank Lines 
the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and 
Washington,\2\ Minnesota and USFRS with regard to the USFRS XL Project. 
Project XL is an EPA initiative to allow regulated entities an 
opportunity to achieve better environmental results at less cost.
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    \2\ These counties are identified signatories to the FPA since 
the State has given them certain responsibilities over hazardous 
waste generators, transporters and facilities within their 
jurisdiction.
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    EPA announced Project XL--``eXcellence and Leadership''-- on March 
16, 1995. It is a central part of the National Performance Review and 
the EPA's effort to reinvent environmental protection. See 60 FR 27282 
(May 23, 1995). Under Project XL EPA provides a limited number of 
private and public regulated entities an opportunity to develop their 
own pilot projects to provide regulatory flexibility that will result 
in environmental protection that is superior to what would be achieved 
through compliance with current and reasonably anticipated future 
regulations. These efforts are crucial to EPA's ability to test new 
strategies that reduce regulatory burden and promote economic growth 
while achieving better environmental and public health protection. EPA 
intends to evaluate the results of this and other Project XL projects 
to determine which specific elements of the project(s), if any, should 
be more broadly applied to other regulated entities for the benefit of 
both the environment and the economy.
    Under Project XL, participants in four categories--facilities, 
industry sectors, governmental agencies and communities--are offered 
the flexibility to develop common sense, cost-effective strategies that 
will replace or modify specific regulatory requirements, on the 
condition that they produce and demonstrate superior environmental 
performance.
    The XL program is intended to allow EPA to experiment with 
potentially promising regulatory approaches, both to assess whether 
they provide benefits at the specific facility affected, and whether 
they should be considered for wider application. Such pilot projects 
allow EPA to proceed more quickly than would be possible when 
undertaking changes on a nationwide basis.
    Adoption of such alternative approaches or interpretations in the

[[Page 28068]]

context of a given XL project does not, however, signal EPA's 
willingness to adopt that interpretation as a general matter, or even 
in the context of other XL projects. It would be inconsistent with the 
forward-looking nature of these pilot projects to adopt such innovative 
approaches prematurely on a widespread basis without first determining 
whether or not they are viable in practice and successful in the 
particular projects that embody them. Furthermore, as EPA indicated in 
announcing the XL program, EPA expects to adopt only a limited number 
of carefully selected projects. These pilot projects are not intended 
to be a means for piecemeal revision of entire programs. Depending on 
the results in these projects, EPA may or may not be willing to 
consider adopting the alternative interpretation again, either 
generally or for other specific facilities.
    EPA believes that adopting alternative policy approaches and 
interpretations, on a limited, site-specific basis and in connection 
with a carefully selected pilot project, is consistent with the 
expectations of Congress about EPA's role in implementing the 
environmental statutes (provided that the Agency acts within the 
discretion allowed by the statute). Congress' recognition that there is 
a need for experimentation and research, as well as ongoing re-
evaluation of environmental programs, is reflected in a variety of 
statutory provisions, such as section 8001 of RCRA.

XL Criteria

    To participate in Project XL, applicants must develop alternative 
pollution reduction strategies pursuant to eight criteria: superior 
environmental performance; cost savings and paperwork reduction; local 
stakeholder involvement and support; test of an innovative strategy; 
transferability; feasibility; identification of monitoring, reporting 
and evaluation methods; and avoidance of shifting risk burden. They 
must have full support of affected federal, state and tribal agencies 
to be selected.
    For more information about the XL criteria, readers should refer to 
the two descriptive documents published in the Federal Register (60 FR 
27282, May 23, 1995 and 62 FR 19872, April 23, 1997), and the December 
1, 1995 ``Principles for Development of Project XL Final Project 
Agreements'' document. For further discussion as to how the USFRS XL 
Project addresses the XL criteria, readers should refer to the USFRS 
FPA available from the EPA RCRA docket or Region 5 library for this 
action (see ADDRESSES section of today's preamble).

XL Program Phases

    Development of a Project has four basic phases: the initial pre-
proposal phase where the project sponsor comes up with an innovative 
concept that it would like EPA to consider as an XL pilot; the second 
phase where the project sponsor works with EPA and interested 
stakeholders in developing its XL proposal; the third phase where EPA, 
local regulatory agencies, and other interested stakeholders review the 
XL proposal; and the fourth phase where the project sponsor works with 
EPA, local regulatory agencies, and interested stakeholders in 
developing the FPA and legal mechanisms. The XL pilot proceeds into the 
implementation phase and evaluation phase after promulgation of the 
required federal, state and local legal mechanisms and after the 
designated participants sign the FPA.

Final Project Agreement

    The FPA is a written agreement between the project sponsor, 
participants and regulatory agencies. The FPA contains a detailed 
description of the proposed pilot project. It addresses the eight 
Project XL criteria, and the expectation of EPA that this XL Project 
will meet those criteria. The FPA identifies performance goals and 
indicators (monitoring schedules) which will enable USFRS to clearly 
illustrate the baseline quantities and compare them to quantities 
derived after implementation of the pilot. The FPA specifically 
addresses the manner in which the project is expected to produce 
superior environmental benefits. The FPA also discusses the 
administration of the agreement, including dispute resolution and 
termination. The FPA for the USFRS XL Project is available for review 
in the docket for today's action, and also is available on the world 
wide web at http://www.epa.gov/projectxl/.

III. Overview of the USFRS XL Project

    Today's new rules will facilitate implementation of the FPA and the 
USFRS XL Project. The regulatory relief provided in the final rules 
promulgated today, however, will not be federally effective in 
Minnesota until the state has made similar changes to its hazardous 
waste management program and, as necessary, EPA has approved of those 
changes as part of the State's authorized hazardous waste program. See 
the preamble to the August 17, 2000, Federal Register for a more 
detailed discussion of the manner in which the state may make such 
changes and the consequences of such actions.

A. Scope of the USFRS XL Project

    The USFRS XL Project is limited in scope to the USFRS facility 
located in Roseville, Minnesota and to approved generators and 
transporters located within the State of Minnesota. It is further 
limited to waste specifically defined as USFRS XL wastes from the 
approved generators.
    This XL Project is limited to USFRS ion exchange resin canisters, 
the USFRS resin process filters used prior to and after waste water 
treatment in the resin canisters (``pre- and postfilters'') and the 
contents of the resin canisters and filter containers after use by an 
approved generator. The wastes include the resins, the wastes contained 
on or within the resins, the pre- and post-resin filters and any other 
wastes contained within the canisters or the filter containers. The 
wastes include only those wastes which are generated from processes 
subject to the RCRA F006 hazardous waste listing from approved 
generators.
    EPA and MPCA must approve of each generator or transporter prior to 
it being added to this XL Project as a participant. If the generator's 
principal place of business is located within the counties of Anoka, 
Carver, Dakota, Hennepin, Ramsey, Scott or Washington, Minnesota then 
the environmental agencies located within these counties (``county 
environmental agencies'' or ``county agencies'') must also approve of 
the generator. EPA's review of a proposed participant will focus 
primarily on its compliance and enforcement history. Before USFRS 
proposes to EPA to add a company to this project USFRS will conduct a 
preliminary evaluation of the company to ensure that it qualifies.
    USFRS' preliminary evaluation of a proposed generator will ensure 
that the proposed generator is within the electroplating, metal working 
and circuit board manufacturing industrial sectors, has a complete 
USFRS application form, and has a storage area which meets the 
standards specified in subpart O. Only generators who generate or may 
generate waste water treatment sludges from electroplating operations 
may participate in the USFRS XL Project since it is limited in scope to 
RCRA F006 hazardous waste.
    USFRS' preliminary evaluation of a proposed transporter will 
consist of determining whether the transporter has a current 
satisfactory safety rating from the United States Department of 
Transportation (USDOT), an EPA hazardous waste identification number, 
and a Minnesota Uniform Hazardous Materials Registration (Minnesota

[[Page 28069]]

registration). This USFRS XL Project is limited to transporters who 
have a current satisfactory rating from the USDOT. They do not need an 
EPA identification number or Minnesota registration to participate.
    The federal procedures for approving a company as a participant in 
the USFRS XL Project as a generator or transporter are detailed in the 
final rule. In summary, if a company passes USFRS' preliminary 
evaluation, USFRS will notify EPA in writing of its desire to add the 
company to the USFRS XL Project. EPA will have twenty one days to veto 
such company's participation in the USFRS XL Project. If USFRS does not 
receive a written disapproval from EPA within the twenty one days, the 
company is deemed to have EPA approval. USFRS must also obtain the 
approval of the MPCA and appropriate county agency. After USFRS has 
received the approval of EPA, MPCA and the appropriate county agency it 
will notify the potential generator or transporter that it has received 
the required agency approvals. At that time, USFRS will obtain the 
company's signature to the FPA and a certification that it has received 
the appropriate training. Upon request, USFRS will forward a copy of 
the signed documents to EPA, MPCA and the appropriate county agency.
    On the date USFRS receives the signed FPA and certification, the 
potential generator or transporter is considered part of this USFRS XL 
Project. This date may be referred to as the generator or transporter 
``effective date.'' Only generators or transporters who signed the FPA 
and certification after receiving EPA's approval may participate in the 
USFRS XL Project. The generator or transporter must handle its USFRS XL 
waste generated on or after the effective date in accordance with the 
requirements of part 266, subpart O. The generator or transporter must 
handle USFRS XL waste generated prior to the effective date according 
to the RCRA regulations applicable at that time. New subpart O does not 
apply retroactively to these wastes.
    The USFRS Roseville facility will handle the USFRS XL wastes as a 
hazardous waste and consistent with its hazardous waste permit.\3\ 
USFRS' treatment of the wastes will consist of treatment to regenerate 
the resins and make them amenable for reuse in another canister. USFRS 
will handle any residual wastes from the resin regeneration process and 
the filters from the pre- and post-filtration process according to the 
RCRA hazardous waste code designation they would have had if they were 
not subject to the XL001 designation (i.e., F006 and any other 
appropriate waste codes). USFRS will ensure that this hazardous waste 
is legitimately recycled through metal recovery.
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    \3\ The conditions in new subpart O must be incorporated into 
USFRS' hazardous waste permit by the State of Minnesota. This must 
be accomplished in time to allow USFRS to have the revised permit 
before it installs the ion exchange resin process at its first 
generator approved by the agencies.
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B. What Problems Has USFRS Identified?

    USFRS has stated that the present RCRA regulatory structure may act 
as a disincentive for certain manufacturers to use the ion exchange 
resin process. This in turn may act as a disincentive for them to 
reduce the amount of metals being discharged to a water body; to 
increase the recycling of metals from electroplating processes and 
reduce the consumption of potable water.
    Electroplaters, metal finishers and other similar industries use 
large volumes of water to wash and rinse materials during the 
manufacturing process. In most manufacturing processes today, wash and 
rinse water is used once, then discarded. This ``single-use'' waste 
water is usually directed to an on-site waste water treatment plant 
where it is treated to levels required by the Clean Water Act prior to 
discharge to a POTW or surface waters. This single-use of water is very 
wasteful. A great amount of effort and cost is expended to produce 
potable water for this single use. Additional costs are incurred in 
treating these waste waters prior to discharge.
    To minimize single water use and to encourage recycling of rinse 
waters, USFRS has developed an ion exchange resin treatment process 
(``resin process''). The resin process consists of three separate but 
integrally linked components--pre-filter, resin filter and post-filter 
components. The manufacturing waste waters are directed to the pre-
filter components first. The pre-filter components consist of a 
polypropylene wound particle cartridge(s) contained in a plastic 
container. The pre-filters collect a certain size particulate from the 
waste water. They are essential to the proper operation of the resin 
filter since they collect particles which may plug or foul the resin 
filter. The pre-filters collect particles which contain metals such as 
copper, zinc, chrome and nickel from the manufacturing waste waters. 
The waste waters are directed from the pre-filters by hose to the resin 
filters. The resin filter consists of a cylindrical canister which 
contains the ion exchange resin. The waste waters are directed to the 
resins which further collect metals onto themselves. After treatment in 
the resin canisters the waste waters are directed to the post-filters 
via hose. The post-filters also consist of a polypropylene wound 
particle cartridge(s) contained within a plastic canister. The post-
filters function as a final polishing step and fail-safe mechanism 
should the ion exchange resin leak from the resin canister. The waste 
waters entering the post-filter container(s) generally meet final 
discharge limits under the Clean Water Act. The water that exits the 
post-filters (``regenerated water'') can then be discharged to the 
local publicly owned treatment works (POTW) or directed back to the 
manufacturing process and reused. If the regenerated water is directed 
back to the manufacturing process this would reduce the amount of 
potable water that is needed in the manufacturing process.
    The use of water reuse systems such as USFRS's ion exchange system 
by electroplaters, metal finishers and similar industries often results 
in the resins, filters, canisters and associated containers being 
considered a listed hazardous waste (F006) once the resins and filters 
have been spent at the manufacturing plant. However, these resins and 
the canisters can be regenerated at USFRS' Roseville, Minnesota 
facility. This regeneration process produces a regenerated resin and 
residual wastes containing metals, such as copper, nickel and zinc 
(``sludges''). The regenerated resin may be reused again in other water 
treatment systems. The residual wastes from USFRS's regeneration 
process along with the pre- and post-filters may be recycled to recover 
the metals contained within them. However, since the resins, filters, 
canisters and associated containers may be a RCRA hazardous waste, the 
manufacturer incurs additional obligations under RCRA that it would not 
necessarily incur if it had not implemented the water reuse system. The 
additional regulatory obligations may act as a disincentive to a 
company's use of a water reuse system and thus increases the use of 
potable water.
    USFRS suggested that the use of its water reuse system would lower 
the amount of metals ultimately discharged to a local water body. 
Collecting and recycling of sludges and filters will result in less 
wastes being land filled. Furthermore, USFRS suggests that the metals 
that are recovered may reduce the energy and environmental impacts

[[Page 28070]]

from mining and manufacturing of virgin ores.

C. What Solutions Will Be Implemented by the USFRS XL Project?

    To encourage water and waste reduction and increased recycling new 
subpart O will temporarily defer from the RCRA regulatory requirements 
contained in 40 CFR parts 261-265, 268, 270, 273 and 279 the resins, 
filters, resin canisters and filter containers used in the USFRS ion 
exchange resin treatment process. This temporary deferral will be 
implemented through a new waste code designation which will be used 
while the waste is at the approved generator and during its transport 
to USFRS. This deferral is premised on the fulfillment of five general 
requirements. First, the generator would handle the waste in accordance 
with specific standards required by the new rule. Second, the waste is 
transported only to USFRS' Roseville, Minnesota facility and only by 
approved transporters. Third, the generators and transporters are 
limited to companies located in Minnesota who pass a preliminary 
evaluation by USFRS and are approved by EPA, MPCA and the appropriate 
county agencies. Fourth, USFRS handles the waste according to the waste 
code designation it would have had but for the temporary deferral 
contained in the new rule (i.e., F006 and any other appropriate waste 
code). Finally, USFRS will recycle, through metals recovery, any metals 
contained in these wastes. Presented in Section IV below is a more 
detailed discussion of these elements of the new rule and final FPA.

D. How Have Various Stakeholders Been Involved in This Project?

    Nine public meetings were held to inform the general public and 
environmental groups about the project and to invite their comments and 
participation. EPA solicited comments on the draft FPA and proposed 
rule on August 17, 2000 and made them both available on its web page 
and in dockets established in Washington, D.C. and Chicago, Illinois.
    USFRS may hold additional public meetings during implementation of 
the FPA based on public interest or as decided by direct participants. 
Stakeholder input and community goals have been and will continue to be 
considered throughout project implementation. USFRS shall report on a 
quarterly basis efforts to maintain stakeholder involvement and public 
access to information in accordance with the requirements of the new 
subpart O.

E. How Will This Project Result in Cost Savings and Paperwork 
Reduction?

    EPA believes that this project has the potential for cost savings 
by making recycling of water and waste more cost competitive with 
traditional treatment/disposal options. Costs savings may include those 
associated with: purchase of additional potable water for single use; 
capital and operating costs to treat mildly contaminated waste waters 
so that they meet pretreatment standards prior to discharge; discharge 
fees associates with wastewater discharge (including permits, 
monitoring and sewer access charges); transport and disposal of 
hazardous waste sludges; and taxes paid to local authorities.\4\ A cost 
comparison will be conducted during project implementation to evaluate 
the cost savings. EPA believes that the paperwork burden for the 
generator will be reduced as compared to current RCRA requirements. 
USFRS will be required to retain and submit certain reports which RCRA 
would normally require of its customers, and report ongoing 
environmental performance and success in meeting its targets. For 
further information about the impacts of this rule on paperwork 
reduction, please see section VI.E.
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    \4\ The counties each will decide whether to exempt the XL 001 
waste from normal hazardous waste taxation.
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F. How Will EPA Ensure the Integrity of This XL Project?

    EPA will ensure the integrity of this project through the 
regulations that it is finalizing today, its prior approval of the 
generators and transporters, its normal enforcement and oversight 
authority and coordination and cooperation with the State of Minnesota 
and appropriate county agencies.
    The final rules will be the primary vehicle EPA will use to ensure 
that USFRS and all generators or transporters of USFRS XL waste handle 
the USFRS XL wastes in a manner which is acceptable to EPA.

G. How Will the Terms of the USFRS XL Project and Final Rule Be 
Enforced?

    All XL projects must include a legally enforceable mechanism to 
ensure accountability and superior environmental performance. EPA 
retains its full range of enforcement options under the final rules. 
Thus, once there is a federally enforceable mechanism in place, if EPA 
determines that a company is not in compliance with it then EPA and, 
under certain conditions, private citizens may take enforcement action 
against that company and may terminate that person's continued 
participation in the project (section 3005(d), 3006(d) and 3008(a) of 
RCRA).
    In addition to its enforcement options EPA retains its option to 
terminate a company's continued participation in this XL Project. In 
the event EPA terminates a person's continued participation in this XL 
Project, EPA will use the criteria and procedures identified in the 
final rules, not those contained in Minnesota's rules, statutes, 
permits or other implementing mechanisms.\5\ (See proposed 
Sec. 266.414-418).
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    \5\ EPA expects that whatever mechanism the State elects to use 
to implement this XL Project it will clearly state that a company's 
continued participation may be terminated by EPA pursuant to its 
procedures contained in 40 CFR 266.414 through 266.418. Furthermore, 
such termination shall require the company to close its USFRS XL 
waste operations and comply with RCRA in accordance with 40 CFR 
266.414 through 266.418.
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    The enforcement response on the part of EPA will depend upon the 
actual performance of each generator, transporter and USFRS, the 
mechanism the State uses to implement this XL Project and the severity 
of any violation.
    EPA will enforce the existing Minnesota hazardous waste management 
regulations which are part of the Minnesota authorized hazardous waste 
program. The flexibility proposed in the final rule will not be 
available to USFRS, its generators and transporters until the State of 
Minnesota adopts equivalent flexibility which is federally applicable 
and enforceable. The instrument selected for the State's implementation 
of this XL Project must be one that is clearly federally enforceable.
    Once all of the required federal and state legal authorities are in 
place, EPA will retain a role in evaluating this XL Project, USFRS and 
each generator and transporter. EPA will evaluate each generator and 
transporter prior to it being accepted into the program. Additionally, 
once this XL Project is effective EPA may routinely inspect any of the 
participants to determine their compliance. If EPA determines that a 
participant has violated a particular provision of the rules, then that 
participant may be subject to civil or criminal penalties pursuant to 
section 3008 of RCRA. Furthermore, EPA may terminate that company's 
continued participation in this XL Project.
    In the event of a termination, the participant must remove the 
USFRS XL waste, take appropriate steps to decontaminate and return to 
compliance with RCRA.\6\ The new rules specify a

[[Page 28071]]

time period for accomplishing this. USFRS XL waste transporters will 
have 30 days after receipt of EPA's notice of termination to complete 
the termination procedures required by the new rules and return to 
compliance with RCRA. USFRS XL waste generators will have 60 days and 
USFRS will have 120 days. During the 30, 60 and 120 transition periods, 
the provisions of new subpart O would continue to apply in full. At the 
conclusion of the transition periods, the applicable RCRA regulations 
would again apply to the participant.
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    \6\ If a generator or transporter elects to terminate its 
participation prior to ever generating or transporting USFRS XL 
waste the rules provide a truncated termination procedure. This 
procedure does not require removal or decontamination of USFRS XL 
waste since none have been generated or transported at that point in 
time. The rules also provide for a shorter time for notice to EPA, 
MPCA and the appropriate county agencies. (See proposed 
Secs. 266.414 and 266.416).
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    The rationale for the transition period is to allow sufficient time 
for the participant to reinstate the operational and administrative 
infrastructure necessary for proper RCRA compliance. EPA selected 
different time frames for the transporters, generators and USFRS based 
on the complexity of the activities they may have to engage in to 
return to compliance with RCRA. The preamble to the August 17, 2000 
Federal Register explained the rationale for the various time frames.

G. How Long Will This Project Last and When Will It Be Completed?

    As with all XL projects testing alternative environmental 
protection strategies, the term of this XL Project is one of limited 
duration. Today's rules would set the term of the XL Project at five 
years after the date that Minnesota modifies USFRS' RCRA permit to 
incorporate the requirements imposed on USFRS under new subpart O.
    Because Project XL is a voluntary and experimental program, today's 
rule contains provisions that allow the project to conclude prior to 
the end of the five years in the event that it is desirable or 
necessary to do so. For example, an early conclusion would be warranted 
if the project's environmental benefits do not meet the Project XL 
requirement for the achievement of superior environmental results. In 
addition, new laws or regulations may become applicable to the wastes 
during the project term which might render the project impractical, or 
might contain regulatory requirements that supersede the superior 
environmental benefits that are being achieved under this XL Project. 
Similarly, the participants may also ask to discontinue participation 
in this XL Project prior to the five years if the experimental project 
does not provide sufficient benefits for them to justify continued 
participation.

IV. Description of the New Rules

A. XL Waste and Other Terms Defined

    A definition of ``USFRS XL waste'' is contained in new 40 CFR 
266.401. Based on its review of the public comments EPA has modified 
the definition contained in the proposed rule in two ways. First, EPA 
has included within the definition of USFRS XL waste, and thus in this 
XL Project, the USFRS pre- and post-filters and their containers used 
as part of the ion exchange resin process. Second, EPA has eliminated 
the requirement that the treated waste waters must be reused in the 
manufacturing process. EPA discusses the rationale for these changes 
and their anticipated impact on the project's environmental performance 
in section V below.
    ``USFRS XL waste'' will consist of the USFRS used water treatment 
resin canisters, the USFRS required pre- and post-resin filters and 
their containers and the contents of the canisters and filter 
containers. It is limited to approved USFRS generators located within 
the State of Minnesota. The USFRS XL wastes are limited to wastes which 
result from processes which would be subject to the RCRA F006 hazardous 
waste designation at the point of generation (i.e. waste water 
treatment sludges from specified electroplating operations). These 
wastes may also exhibit a characteristic of hazardous waste as a result 
of the operations of a particular company. Spills of USFRS XL wastes by 
the generator or transporter are considered USFRS XL waste provided the 
generator or transporter handles the spill in accordance with the spill 
requirements of proposed 40 CFR 266.408(e) and 266.411. This definition 
does not include wastes that were generated prior to the date a 
generator is added to this USFRS XL Project. The definition states that 
USFRS XL waste while at an approved generator and during transport will 
be identified by the waste code XL001. It further states that the XL001 
waste designation applies only to USFRS XL wastes generated by approved 
USFRS XL waste generators.
    Section 266.400 contains a definition for an ``approved USFRS XL 
waste generator.'' It is a company located in Minnesota who: has 
properly identified its wastes and processes; has passed a preliminary 
evaluation by USFRS; has not been excluded by EPA, MPCA and appropriate 
county agencies; has received notice of approval from USFRS; and has 
signed the FPA, and a certification that it has taken and understood 
the specific training required by subpart O.
    Section 266.400 contains definitions for other terms used in 
subpart O, such as County Environmental Agencies, USFRS, USFRS XL waste 
application form, USFRS XL waste approved customer, USFRS waste 
approved transporter, USFRS XL waste facility, USFRS XL waste final 
project agreement, USFRS XL waste generator, USFRS XL waste project, 
USFRS XL waste training module, USFRS XL waste transportation tracking 
document and USFRS XL waste transporter. Except as noted in section V 
below, EPA has not changed these definitions from those it proposed on 
August 17, 2000.

B. Waste Identification and Characterization

    Pursuant to Sec. 266.406, prior to being accepted into this XL 
Project, the customer/potential generator company will properly 
identify its processes and chemicals contributing to the water proposed 
for treatment in the USFRS ion exchange resin treatment process. It may 
only identify those waste streams which meet the F006 listing. The 
company will complete and submit the USFRS XL waste application form to 
USFRS. After being accepted into this XL Project, the company shall 
provide USFRS with prior notification of any changes in its processes.
    USFRS will perform a chemical profile analysis, of the company's 
waste stream(s) and processes contributing to the water treated within 
the ion exchange resin treatment process. USFRS will conduct this 
analysis in accordance with the test methods identified in its waste 
analysis plan contained in its RCRA hazardous waste permit. This waste 
stream analysis will substitute for an analysis of the resins and 
filters after use in their canisters and containers. The analysis will 
also ensure that the waste waters are compatible with the ion exchange 
resin process and that the wastes are compatible with maintaining the 
integrity of the canisters and containers. USFRS will conduct the waste 
stream analysis once for each company prior to accepting it into this 
XL Project. Once a company is accepted into the USFRS XL Project, USFRS 
will repeat the analysis whenever a company provides it with notice 
that it has changed its processes contributing to the USFRS XL waste.
    The USFRS XL waste designation will only apply to those water 
treatment resin canisters, the pre- and post-resin filter containers 
and their contents for processes identified by the customer,

[[Page 28072]]

evaluated by USFRS and approved by EPA, MPCA and appropriate county 
agencies.

C. Notification and Recording of Participation in the USFRS XL Project

    The new rules relieve the approved generators and transporters from 
the RCRA requirements of submitting an EPA hazardous waste notification 
form and obtaining an EPA identification number. In lieu of these RCRA 
requirements USFRS and its generators and transporters will follow the 
notification requirements and processes contained new Secs. 266.402, 
403 and 406. The procedures for adding generators and transporters to 
this XL Project are contained in new Secs. 266.402 and 266.403. Section 
266.406 requires the generators to use and complete the USFRS XL waste 
application form. Additionally, it requires USFRS to assign a unique 
customer and process waste stream number to each approved generator and 
waste stream. The USFRS XL waste application form will contain 
information similar to that required on the EPA Hazardous Waste 
Notification Form, except that it will identify the wastes by the 
``XL001'' designation in addition to the EPA waste codes.
    Section 266.406 requires USFRS to assign to each approved generator 
a unique client number. The generator will use this number whenever it 
generates and transports off-site USFRS XL waste. USFRS will also 
assign to each approved waste stream from the generator a unique number 
known as a waste profile number.
    Pursuant to new proposed Sec. 266.419(c), USFRS will maintain a 
list of the approved customers and generators.\7\ USFRS will include on 
that list the customer name, the USFRS client and waste profile 
numbers, a summary of the results of the USFRS profile analysis and the 
process waste streams approved for participation in the XL Project. 
USFRS will have that list available at its Roseville, Minnesota 
facility and will provide that list to EPA and MPCA on a quarterly 
basis.\8\ If any of the customer information is claimed as confidential 
business information or trade secrets USFRS will indicate that fact and 
notify EPA and MPCA. EPA will treat such material in accordance with 40 
CFR part 2.
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    \7\ A distinction is made in the rules between an approved 
customer and an approved generator. They are essentially the same 
with the only difference being that a customer is not automatically 
a generator. A customer becomes a generator when if first generates 
or causes to be regulated USFRS XL waste.
    \8\ USFRS will also have a list of the approved transporters, 
see proposed Sec. 266.419(c).
---------------------------------------------------------------------------

D. Transportation and Tracking of USFRS XL Waste Shipments

    The new rules ensure that USFRS XL waste reaches its destination by 
applying strict transportation routing and tracking requirements on the 
transportation of USFRS XL waste from the time it leaves the generator 
to the time it is received by USFRS. Subpart O accomplishes this by 
directly imposing these requirements on USFRS and its generators and 
transporters (proposed Sec. 266.410). The requirements are summarized 
below.
    USFRS will control the transportation and routing of the USFRS XL 
wastes from a generator and its transporters. All USFRS XL waste 
generators must use a USFRS XL waste approved transporter to transport 
the USFRS XL waste. The USFRS XL waste must be sent to USFRS' 
Roseville, Minnesota facility. The generator must contact USFRS when it 
wants to transport its USFRS XL waste. USFRS' Roseville facility has a 
dedicated shipping department. That department will arrange with a 
USFRS XL waste approved transporter to pick-up the generator's USFRS XL 
waste within the 90 days the generator is allowed to store the waste on 
site.\9\ USFRS' shipping department will complete the USFRS 
Transportation Tracking Document and provide it to the generator with a 
copy to USFRS' lab analysis. USFRS will include on the Transportation 
Tracking Document information required by these new rules. USFRS will 
provide the generator with the Transportation Tracking Document by the 
time the transporter arrives at the generator's site to pick up the 
waste.\10\
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    \9\ EPA has changed the time period based on its review of the 
public comments it received. See section V below for a summary of 
the changes and EPA's rationale for such changes.
    \10\ Section 266.410(a) requires USFRS to provide the 
Transportation Tracking Document to the generator at the time the 
transporter arrives at the generator. This is a slight revision of 
proposed 266.410(a) which required USFRS to provide the provide the 
Transportation Tracking Document prior to the transporter arriving 
at the generator. See Section V below for a discussion of the reason 
for this change.
---------------------------------------------------------------------------

    USFRS's transporters must pick-up the USFRS XL waste at the 
generator within the 90 days the generator is allowed to store the 
waste on-site. The transporters are required to transport the USFRS XL 
waste to USFRS' Roseville, Minnesota facility within 30 days of picking 
up the waste at the generator. A USFRS transporter may store or arrange 
to store a shipment of USFRS XL waste during that 30 day period, 
provided however, it may only do so for a 10 day or less period without 
triggering the facility requirements in sections 264, 265, 268 and 270 
of RCRA. This 10 day limitation on the storage of USFRS XL waste by the 
transporter mirrors the limitations on storage by transfer facilities 
contained in section 263.12.
    If the shipment is not received by USFRS within 30 days of the 
USFRS transporter picking it up at the USFRS generator, USFRS will 
contact the transporter to determine the disposition of the load. If 
USFRS does not receive the shipment within 5 days of its scheduled 
arrival date, it will notify EPA, MPCA and appropriate county agencies. 
USFRS will send a copy of the Transportation Tracking Document to the 
USFRS generator within 10 days of USFRS' receipt of the XL001 waste 
from the transporter.\11\
---------------------------------------------------------------------------

    \11\ Based on a review of the public comments EPA increased the 
time period from 5 days to 10 days. See section V below for a 
summary of EPA's support for such a change.
---------------------------------------------------------------------------

    USFRS will use its own trucks or those of approved transporters to 
transport USFRS XL waste to USFRS's Roseville facility. USFRS may use 
any transporter provided it conducts a preliminary evaluation of the 
transporter; the transporter has a current satisfactory safety rating 
from USDOT; the transporter has been approved by EPA, MPCA, and, as 
appropriate the County Agencies; it has completed the USFRS XL waste 
training; and it has signed the FPA. New Sec. 266.403 requires USFRS to 
include in its preliminary evaluation information on the current USDOT 
safety rating for the transporter, its EPA identification number and 
the status of its Minnesota registration to transport hazardous waste. 
USFRS will assign to each approved transporter a unique USFRS client 
identification number. This number will be used on the Transportation 
Tracking Document.
    In lieu of the manifest, the new rules require USFRS, its 
transporters and generators to use the USFRS Transportation Tracking 
Document when transporting the USFRS XL waste from the generator to 
USFRS's Roseville facility. New rule Sec. 266.410 and the definition of 
the USFRS XL Waste Transportation Tracking Document contained in 
proposed Sec. 266.401 requires that USFRS obtain EPA approval of the 
Transportation Tracking Document prior to using the Transportation 
Tracking Document and whenever it proposes to revise it. With this rule 
EPA approves of the Transportation Tracking Document provided by USFRS 
and included in the docket for this rule. Pursuant to

[[Page 28073]]

proposed Secs. 266.419(d), 420 and 421 USFRS, the transporter and the 
generator(s) will retain a copy of the Transportation Tracking Document 
for three years for each shipment of XL wastes that is shipped off-site 
to the Roseville, Minnesota facility.
    Section 266.410(a), requires USFRS, not the generator, to complete 
and submit any exception reports. USFRS will use a shorter time 
period--five days--to gauge whether it is necessary to take further 
steps to locate a shipment. If USFRS is unable to locate the shipment 
within five days it will then notify EPA, MPCA and appropriate county 
agencies of that fact.

E. Pre-Transport and Transportation Requirements

    The new rules specify that only USFRS or an approved USFRS 
transporter will transport the USFRS XL wastes from the generator to 
the USFRS Roseville, Minnesota facility.\12\ USFRS has an EPA 
identification number and a hazardous waste permit. USFRS approved 
transporters will have a current satisfactory safety rating from USDOT 
and a unique USFRS customer identification. All transporters will use 
the USFRS Transportation Tracking Document when transporting USFRS XL 
waste. Pursuant to Secs. 266.408(c) and 409 the transporters and 
generators will ensure the USFRS XL wastes have affixed to the ion 
exchange resin canisters and the filter containers the following 
warning statement which will be provided by USFRS:
---------------------------------------------------------------------------

    \12\ The rule names USFRS and Pioneer Tank Lines as 
transporters. Both entities will be approved for participation when 
they sign the FPA.

    XL001 wastes--USFRS ion exchange resin process wastes--Federal 
Law Prohibits Improper Disposal. This is USFRS XL waste from (insert 
XL waste generator's name). Handle as a hazardous waste and ship 
only to USFRS located at 2430 Rose Place, Roseville, MN. This waste 
was placed in this container on (date) and placed in storage at 
(insert USFRS XL waste generator's name) on (insert date). If found, 
contact USFRS and the nearest police, public safety authority, EPA 
or MPCA. The USFRS telephone number is (insert phone number). USFRS 
Transportation Tracking Document Number__________'' If spilled 
immediately contain the spill and prevent it from going into any 
water body; collect the spilled material and place in an 
appropriately sized polycontainer; contact USFRS and the nearest 
police, public safety authority, EPA or MPCA.\13\
---------------------------------------------------------------------------

    \13\ Based on the public comments EPA made two modifications to 
the warning statement. First, EPA changed the statement to indicate 
that it will be placed on the filter containers, not just the resin 
canisters. Second, EPA indicated that spills are to be placed in 
appropriately sized polypropylene containers, not 55 gallon steel 
drums. See section V below for a summary of the public comments and 
the reasons for these changes.

USFRS will supply these labels to the generator at the same time that 
it provides the generator with the USFRS Transportation Tracking 
Document. The transporters will ensure that these labels are affixed to 
the containers during transport and that the XL wastes are within an 
approved container.

F. Accumulation and Storage Prior to Shipment

    The accumulation and storage requirements are contained in 
Sec. 266.408. The new rule requires the generator to store its USFRS XL 
waste on an impervious surface. Pursuant to Sec. 266.402(c), prior to 
accepting a customer into this XL Project, USFRS will obtain from its 
customers the waste application form. This form will provide 
information on the location and condition of the proposed storage area. 
This information will be supplied on a site engineering form which 
USFRS developed and submitted as part of the waste application form. 
The generator will indicate on the site engineering form the location 
and construction of the storage area for the USFRS XL waste. Prior to 
accepting a generator into this XL Project, USFRS will review the site 
engineering form and inspect the company's storage area to determine if 
it is impervious. USFRS will only propose to EPA for this XL Project 
persons who, among other things, have an impervious storage area. Upon 
request, USFRS will provide a copy of the customer's site engineering 
form and the results of USFRS' evaluation of the customer to EPA, MPCA 
and appropriate county agencies.
    The rule limits the generator to 90 days for the on-site storage of 
its USFRS XL waste. The generator must store the USFRS XL wastes in the 
water treatment resin canisters and filter containers and must store 
them separately from its other wastes or materials, including explosive 
or ignitable wastes or materials. The generator will ensure that the 
canisters and containers are closed and disconnected from the 
manufacturing process(es). It will place on the resin canisters and 
filter containers a label which indicates the company's name, location, 
contents of the resin canister and filter container and the date they 
were placed in storage. The generator will ensure that there is 
adequate aisle space to determine the condition of the canisters and 
containers and to respond to any leaks from them during their storage. 
The generator will inspect the condition of the canisters or containers 
weekly while they are stored on-site. The generator will maintain a log 
of these inspections. The log will indicate the date the canister and 
containers were placed in storage, the condition of the canisters and 
containers, the date of the inspection, the person conducting the 
inspection and the condition of the canisters and containers and the 
storage area at the time of the inspection.
    Pursuant to Sec. 266.413, the generator will retain the ability to 
legally treat or dispose of its wastes contributing to its USFRS XL 
waste stream in the event that it is no longer a participant in this XL 
Project. In most cases this will mean that the generator would have to 
make arrangements with its local POTW whereby the POTW would agree to 
take the generators' wastewater on 60 days notice. The POTW serving the 
Counties of Anoka, Hennepin, Ramsey, Washington, Dakota, Carver and 
Scott, known as the Metropolitan Council of Environmental Services 
(MCES) has advised EPA that it will be able to accept the wastewater of 
those generators who participate in this XL Project in its district on 
60 days notice.
    Generators will comply with tailored closure requirements contained 
in Sec. 266.412. If and when a generator's participation is terminated 
in this XL Project, USFRS will pick up all of the generator's canisters 
and containers. Generally, Sec. 266.415 provides USFRS and the 
generator sixty days to complete the closure activities required by 
proposed Sec. 266.412. USFRS will collect the generator's USFRS XL 
waste within thirty days of notice of the company's termination in the 
program. The generator will remove from the storage area any USFRS XL 
wastes and clean any related contamination. The generator will retain 
records of all activities it has undertaken to decontaminate its 
storage area and equipment.
    Within the same sixty days, the generator will provide USFRS with 
access to visit the generator. The purpose of this access is to allow 
USFRS to determine if all of the USFRS XL waste has been removed. USFRS 
has developed a systems discontinuation form that it will use to 
document its visual observations during this visit. Pursuant to 
Sec. 266.412(b) USFRS will provide a summary of its observations at the 
generator of the condition of the storage area and the removal of all 
USFRS XL Waste. USFRS may use its systems discontinuation form. USFRS 
will provide the summary to the customer to EPA, MPCA and appropriate 
county agencies. Pursuant to Secs. 266.419(d) and 266.420 USFRS and the 
USFRS XL waste generator will

[[Page 28074]]

maintain records of their compliance with the requirements of 
Sec. 266.412, including a copy of the systems discontinuation form or 
its EPA approved equivalent summary.
    Abbreviated closure requirements are specified in Sec. 266.414 for 
those companies who have not generated USFRS XL wastes at the time 
their participation is terminated. All that is required of these 
companies is that notice of their termination is provided and that they 
implement the alternative treatment or disposal required by 
Sec. 266.413. This truncated closure is appropriate for these companies 
(i.e., USFRS XL waste approved customers) because at the time of their 
termination they will not have generated any USFRS XL waste. 
Consequently, the requirements related to decontamination and off-site 
shipment contained in Sec. 266.412 are not appropriate.
    Section 266.408(e) specifies the generator's responsibilities for 
spilled or leaked USFRS XL waste on-site. If there is a leak or spill 
of USFRS XL waste in the generator's storage area, then the generator 
will immediately contain and collect the wastes. It is anticipated that 
the spilled or leaked materials may consist of water and/or resins. The 
generator will place spilled or leaked resins in a polycontainer of 
sufficient size to contain the spilled or leaked resins.\14\ When 
allowed by the local POTW, the generator will direct water spilled from 
the canisters or filters to its drainage system for permitted discharge 
to the local POTW, and notify the POTW. Otherwise, the generator will 
place the spilled or leaked water and resin from the canister(s) in a 
polycontainer of sufficient size to contain the spilled or leaked water 
and resin. The generator will store and label the spilled or leaked 
USFRS XL wastes in accordance with the requirements for USFRS XL 
wastes. The generator will notify USFRS and MPCA of the spill or leak 
and arrange with USFRS for the transport of any such spilled or leaked 
USFRS XL wastes with the next scheduled shipment of USFRS XL wastes.
---------------------------------------------------------------------------

    \14\ EPA changed this requirement from a 55 gallon drum to the 
appropriately sized polypropylene container based on its review of 
the public comments. See section V below for a summary of the public 
comments and the reason for this change.
---------------------------------------------------------------------------

    This XL Project and the new rule do not impose on the generator a 
requirement for an internal communication device. It eliminates the 
need for fire extinguishers, water or foam. It also eliminates the need 
for a written contingency plan and an emergency coordinator at the 
generator. Instead, Sec. 266.408(i) requires the generator to have an 
external communication device, such as a telephone. It also requires in 
Secs. 266.408(a) and (b) that the generator store the wastes in a 
manner which should all but eliminate the potential for a release to 
the environment or an emergency. In particular, it requires the 
generator to segregate the USFRS XL wastes from other wastes and to 
store it on an impervious surface. Section 266.408(d) and (e) require 
the generator to inspect the storage area on a weekly basis and to 
immediately respond to spills or leaks of the USFRS XL waste.
    Prior to generating any USFRS XL waste, pursuant to 
Sec. 266.408(h), the generator must designate a contact person 
responsible for handling the USFRS XL wastes and responding to any 
releases of the wastes. It also requires USFRS to provide that person 
with adequate training on how to handle the USFRS XL waste and any 
releases. USFRS is required to provide each company (generators and 
transporters) with adequate training through the use of a training 
module (``USFRS training module''). USFRS may use any recorded 
communication media that it believes is appropriate for the training 
module (e.g., printed brochures, videos, etc.) Pursuant to proposed 
Sec. 266.404 USFRS will submit this training module to EPA, MPCA and 
the appropriate county agency early enough such that it may obtain the 
necessary approvals prior to accepting the first shipment of USFRS XL 
waste. Further, pursuant to the new rule, the USFRS training module 
will, at a minimum, identify the hazards presented by the USFRS XL 
waste, the steps needed to install and replace the ion exchange resin 
canisters and filter containers, the requirements imposed by these 
rules, the procedures to follow in the event of a release of the USFRS 
XL wastes and the proper procedures to decontaminate equipment, 
structures and material in the event that the generator no longer 
participates in the XL Project. Prior to approving a person as a 
participant into the USFRS XL Project, USFRS will obtain a signed 
certification from that person. The certification will state that the 
person has reviewed, viewed or read the training materials and agrees 
to follow it. As part of this certification the potential generator 
will identify the individual responsible for its compliance with the 
conditions of these rules, the individual's job title and a description 
of his or her duties.
    Pursuant to new Sec. 266.405, USFRS will provide every potential 
generator with a material safety data sheet (``USFRS XL waste MSDS'') 
for the USFRS XL waste. USFRS will provide this at the time the company 
applies to USFRS for participation in this XL Project. The USFRS XL 
waste MSDS will provide sufficient information for a person to respond 
safely to a spill or release of USFRS XL waste.\15\ Pursuant to 
Sec. 266.408(h) the generator will maintain and exhibit in a prominent 
location a copy of the USFRS XL waste MSDS on its property and will 
provide a copy of it to local police and fire departments and to the 
local hospital. USFRS will ensure that the USFRS XL waste MSDS 
prominently instructs individuals in the proper emergency response 
procedures for handling spills or leaks of the USFRS XL wastes at the 
generator or while in transit to USFRS. The USFRS XL waste MSDS will 
also accompany each shipment of USFRS XL wastes.
---------------------------------------------------------------------------

    \15\ Based on a review of the public comments EPA modified this 
requirement to clarify that the USFRS XL waste MSDS must be 
sufficient to identify the hazards associated with and steps needed 
to respond to a spill or release of USFRS wastes. EPA also 
eliminated the requirement that the USFRS XL waste MSDS meet the 
OSHA requirements for an MSDS and allowed for USFRS to use either an 
MSDS or an equivalent document. See section V below for summary of 
the public comments and the reasons for this modification.
---------------------------------------------------------------------------

    If an imminent or actual emergency occurs which threatens the 
release of USFRS XL waste at the generator site, then the generator 
will notify the EPA, MPCA, USFRS and the appropriate local emergency 
responders and county agencies. The generator will take actions to 
ensure the releases do not occur, recur or spread; contact USFRS to 
arrange for the transport and disposal of the USFRS XL wastes; and make 
a written recording of the event and its actions in response to such 
event.

G. Reporting and Recordkeeping Requirements

    Sections 266.419, 420 and 421 present the recordkeeping and 
reporting requirements for USFRS, the generators and transporters. 
Pursuant to these rules, the generator will not be required to retain 
copies of the waste analysis or annual reports. Instead the burden will 
shift to USFRS to retain equivalent information to that contained 
within these reports. In particular, USFRS will retain for three years 
a copy of all approval letters to its approved customers and generators 
of USFRS XL wastes; any correspondence with its approved customers or 
generators relevant to their participation in this XL Project; a copy 
of the approved customer's and generator's XL Waste application form, 
site engineering form, summary of its generator closure review

[[Page 28075]]

pursuant to Sec. 266.412; waste analysis; its analyses of the approved 
customer's or generator's storage area; and the Transportation Tracking 
Document for each shipment of USFRS XL waste.
    Each generator will be required to retain for three years records 
of any spill or emergency notifications and other duties imposed 
pursuant to Sec. 266.408(e); the signed FPA and its certification; its 
weekly inspection log required by Sec. 266.408(d); its compliance with 
the training requirements of Sec. 266.408(h); a copy of the signed 
Transportation Tracking Document for USFRS XL wastes it generated; and 
its records of compliance with the decontamination requirements of 
Sec. 266.412.
    Each transporter will retain for three years a copy of the USFRS XL 
Waste FPA and its certification; a copy of the signed Transportation 
Tracking Document for USFRS XL waste it transported; and its record of 
any notification of spills or leaks of USFRS XL wastes required by 
Sec. 266.411.
    In addition to the records listed above, USFRS will develop and 
submit certain additional reports, lists and documents. Many of these 
reports and documents are in lieu of requiring the same or similar 
information from its generators (e.g., annual reports or contingency 
plan). The reporting requirements are presented in Sec. 266.419 
according to their frequency: annual reports (Sec. 266.419(a)), semi-
annual reports (Sec. 266.419(b)) and quarterly reports 
(Sec. 266.419(c)). A summary of each report is presented below.
    Quarterly reports are presented in Sec. 266.419(c) and consist of 
status reports on generator and transporter participation in the XL 
Project. Separate lists, with similar information, will be reported for 
each. The generator list is summarized in this paragraph. USFRS will 
identify on the XL participant list information on its preliminary 
evaluation of the transporters and generators, the dates of EPA, MPCA 
and appropriate county approvals, the effective date of a company being 
added to the USFRS XL Project and any termination date. For the 
generators, USFRS will also include a summary of USFRS's profile 
analysis, the generator's process waste streams approved for 
participation in the XL Project and the condition of the customer's 
storage area at the time of its application to USFRS. For generators 
who discontinue participation in this XL Project, USFRS will include on 
the XL generator list the date of the notice of termination of its 
participation, the date USFRS removed the last ion exchange canister 
and filter container, and the date of the USFRS review of the 
generator's decontamination efforts. USFRS will update the XL 
participant list as persons are added to or eliminated from this XL 
Project. USFRS will have the XL generator list available for review by 
EPA or MPCA at its Roseville, Minnesota facility. USFRS will send a 
copy of the XL generator list to EPA, MPCA and appropriate county 
agencies on a quarterly basis.
    The annual report requirements are presented in Sec. 266.419(a) and 
are intended to provide a substitute for the hazardous waste biennial 
report. USFRS will provide an annual report on all USFRS XL wastes. 
USFRS will include in the annual report, at a minimum, each USFRS XL 
waste generator, the quantity of USFRS XL waste that USFRS received 
from each generator during the calendar year and a certification by 
USFRS that those wastes were treated at USFRS in accordance with the 
requirements imposed by new part 266, subpart O. USFRS will include 
information on the amount of metals it reclaimed and recycled from the 
resins.
    USFRS will develop and track certain information that will be used 
to determine the environmental benefits derived from the USFRS XL 
Project. From the generators USFRS will report on an annual basis the 
following information: the amount of water recycled by the generators, 
the pretreatment chemicals and energy the generators did not use as a 
result of participating in this USFRS XL Project, the amount of water 
discharged to the local POTW before and during this project, the amount 
of sludge recovered by USFRS before and during this project, the amount 
of sludge recovered instead of being disposed by a generator (if the 
generator disposed of the sludge prior to participating in this 
project), the quantity of material (ion exchange resins, filters, other 
wastewater treatment sludge, residues) collected from each facility 
(monthly), the frequency of canister and container replacement in terms 
of process volume, the constituents in the material (ion exchange 
resins, filters, wastewater treatment sludge, residues) collected at 
each facility (e.g., recoverable metals, contaminants/non-recoverable 
materials), and constituents in the material (ion exchange resins, 
filters, wastewater treatment sludge, residues) disposed by each 
facility (e.g., contaminants/non-recoverable material).
    USFRS will report on an annual basis the following information from 
its facility: quantity of material (ion exchange resins, filter media, 
wastewater treatment sludge, residues) to be processed, quantity of 
metals recovered, the constituents of the recovered material (ion 
exchange resins, filter media, wastewater treatment sludge, residues), 
quantity and constituents of the non-recoverable material (ion exchange 
resins, filter media, wastewater treatment sludge, residues) and how it 
was disposed.
    USFRS shall report on an annual basis the following information 
from the metal reclamation facility it uses to recycle sludges: the 
quantity of each metal recovered.
    Pursuant to Sec. 266.419(b), USFRS will collect and report on a 
semi-annual basis financial information related to the costs and 
savings realized as a result of implementation of this project and 
sufficient information for EPA to determine the amount of superior 
environmental benefit resulting from this project. Pursuant to 
Sec. 266.419(b)(1), the report will contain information which includes, 
but is not limited to: 1. The volume of waste collected and recycled, 
2. The amount of metals recycled, 3. The volume of recycled material 
sold to others, 4. Data regarding the management of the ion exchange 
canisters and filter containers, 5. The constituents of the sludge and 
6. Information regarding how the sludge and residues are managed.
    Additionally, Sec. 266.419(b)(2) requires USFRS to report certain 
financial information related to implementation of this XL Project. It 
specifies that USFRS will collect baseline and XL costs. The baseline 
costs shall be calculated using two scenarios: (1) Typical charges 
(prior to the XL Project) for pretreating and disposing effluent 
wastewater under the applicable Clean Water Act requirements and the 
costs for manifesting, transporting and disposing of F006 sludges; and 
(2) typical charges that would be incurred if wastes were recycled in 
compliance with RCRA and requirements for manifesting and transporting 
those hazardous wastes (including tax obligations under both 
scenarios). The XL costs will include the current costs to the 
generator for completing transportation tracking documents, the current 
transportation costs for XL wastes, the generator's cost to install the 
ion exchange resin process, and the cost to USFRS of metals reclamation 
off-site (including costs associated with transportation and disposal). 
USFRS will compare the baseline costs to the XL costs and provide an 
analysis of whether the project is resulting in cost savings for the 
generators and which aspects of the XL Project produce these savings.

[[Page 28076]]

H. Additional Requirements Imposed on USFRS

    USFRS has a RCRA permit which allows it to receive the USFRS XL 
wastes. Pursuant to Sec. 266.407 once USFRS receives the USFRS XL waste 
at its Roseville, Minnesota facility, the waste will lose its USFRS XL 
waste designation (XL001) and must be handled as a fully regulated 
hazardous waste (i.e, as F006 and any other applicable hazardous waste 
code designation). USFRS will determine the appropriate designation of 
the waste based on its waste profile analysis and knowledge of the 
waste stream. USFRS will comply with all terms and conditions of its 
RCRA permit for handling these hazardous wastes. USFRS will also be 
responsible for the conditions and terms identified in items A-F above 
as applicable to USFRS--e.g., waste profiling, use of the 
Transportation Tracking Document, generator annual report, training 
module, MSDS, discontinuation review of the customer, and 
transportation of waste to the Roseville, Minnesota facility. USFRS 
will arrange for the recycling through metals recovery of the metals 
which are contained in the generator's USFRS XL wastes. Pursuant to 
Sec. 266.407(b) USFRS may not accept any customers into this Project 
unless and until it has arranged for recycling of the metals contained 
in the XL001 wastes it receives. This rule further requires USFRS to 
recycle the metals contained in the XL001 waste it receives throughout 
the duration of the XL Project.
    To ensure proper coordination of responses to spills, leaks or 
emergencies of USFRS XL waste at the generator or while in transit, 
Sec. 266.407(c) requires USFRS to have a spill response coordinator. 
This person will receive all calls from generators and transporters 
regarding spills, leaks or emergencies related to the USFRS XL wastes. 
This person shall also be responsible for coordinating the proper 
response to such spills, leaks or emergencies.

V. Response to Significant Public Comments and Changes From the 
Proposed Rule

    During the comment period provided for the proposed rule EPA 
received comments from USFRS, the State of Minnesota and a citizen 
representing an unidentified third party. A summary of the comments, 
EPA's responses and any changes from the proposed rule is contained 
within this section.
    Comment. USFRS requested EPA to include ``pre'' and ``post'' 
filters as part of the XL project. USFRS pointed out that the pre and 
post filters are an integral part of the ion exchange filter process 
which is the subject of the USFRS XL project. USFRS will handle these 
filters in the same manner that it does the ion exchange resin 
canisters. Namely, it will collect them from the generators and send 
them to a third party for recovery of the metals along with the sludges 
in the resin canisters. If the pre and post filters, however, are not 
included as part of the USFRS XL project they would be considered F006 
hazardous waste. A project participant thus would be subject to the 
USFRS XL project requirement for the ion exchange resin canisters and 
the RCRA hazardous waste requirements for the pre and post filters. 
This dual system would discourage generators from participating and 
thus would reduce the environmental benefits anticipated from this 
project.
    Response. EPA agrees that the pre and post filters should be 
included as part of this XL project and subject to the same management 
standards as the ion exchange resin canisters. Consequently, EPA will 
modify the definition of USFRS XL waste contained in Sec. 266.401.
    According to USFRS the ion exchange treatment system consists of 
three components: (1) filtration of the waste water prior to ion 
exchange resin treatment (``pre-filter'' phase); (2) the ion exchange 
resin treatment; and (3) filtration of the waste water after it exits 
the ion exchange resin treatment (``post-filter'' phase). The pre and 
post filters consist of polypropylene wound particle cartridges 
contained in plastic canisters. The canisters are connected directly by 
hose to the ion exchange resin canisters. The pre-filters collect a 
certain size particulate in the waste water prior to it being 
introduced to the ion exchange resin canister for treatment. The pre-
filters are essential to ensuring that the ion exchange resin canister 
are not plugged or fouled. According to USFRS, without the pre-filter 
the ion exchange resin canisters will not work as effectively. The 
post-filters receive the waste waters after they have been treated by 
the ion exchange resin canisters and prior to discharge or re-use of 
the treated waste water. According to USFRS, the post-filters will not 
usually receive as much or as large a particulate size as the pre-
filters. They are used for final polishing and as a fail-safe mechanism 
should there be a leak of the treatment resins from the ion exchange 
resin canisters. The pre-filters will usually collect metals such as 
copper, nickel, zinc and chrome. The post-filters may collect some of 
these same metals but after the waste water has been treated to levels 
which would meet the water treatment discharge levels for these 
contaminants. Both filters would be considered F006 hazardous waste by 
operation of the RCRA derived from rule, regardless of the 
concentration of the metals, since the waste waters are electroplating 
waste waters.
    Neither the proposed rule nor the preamble to it mentions the pre 
and post filters. EPA was not aware of their existence and function in 
the ion exchange treatment system until USFRS raised the issue in its 
comments. Including these filters within the scope of this project is 
consistent with the goals of the USFRS XL Project. The preamble to the 
proposed rule stated that the primary purpose of the USFRS XL Project 
was to encourage the use of the ion exchange resin treatment system. 
USFRS suggested that if more companies used this system then there 
would be an increase in the recycling of the sludges which resulted 
from the process; a reduction in the use of potable water; and a 
reduction in the energy associated with the use of potable water in the 
production process. USFRS stated that generators were reluctant to use 
the ion exchange resin process because of the stigma and costs 
associated with the resins being identified as a RCRA hazardous waste. 
The resins would be considered an F006 hazardous waste by virtue of the 
electroplating process waste waters which came in contact with them. To 
reduce the stigma and the costs EPA proposed to identify the ion 
exchange resin canisters with a unique hazardous waste code (XL001) and 
to subject them to special management standards contained in new 
subpart O to part 266.
    EPA agrees that if the pre and post filters were not included as 
part of this XL Project then they would be properly characterized as 
F006 hazardous waste by virtue of the ``derived from rule.'' The major 
contaminants on the filters and resin canisters are essentially the 
same--metals from electroplating waste waters. Regardless of whether 
they are identified as F006 or XL001 wastes the ion exchange resin 
canisters and pre and post filters would be subject to the same final 
disposition--metals recovery--under the USFRS XL Project. However, 
without making the change requested this would not occur. Additionally, 
there would be two separate management systems with some 
incompatibility between them. For example, if the pre and post filters 
are treated as F006 waste the generator will have to use the uniform 
hazardous waste manifest; can use any transporter; can arrange for the 
disposal of the filters

[[Page 28077]]

at any hazardous waste facility and depending on the volume of wastes 
it generates can store the filters up to 270 days. The same generator, 
however, under new subpart O would not be required to use the manifest 
for the ion exchange resin canisters but would have to use an approved 
transporter; would have to send the resin canisters to USFRS where 
USFRS would arrange for metals recovery; and would be limited to a 90 
day storage time limit, regardless of the volume of wastes generated by 
the generator. Such a dual management system can work. However, if 
USFRS is correct (i.e., that it will act as a disincentive to certain 
generators) it may be counterproductive to the purpose and goal of this 
XL project. Conversely, it may be better to subject the filters to the 
special management standards of new subpart O because it requires 
metals recovery and for some generators, may place a shorter time 
period for the on-site storage of the filters. To the extent that it is 
administratively easier for a generator to have the same management 
system and requirements for essentially the same wastes it may result 
in more participants in this XL project. With more participants EPA 
would expect greater metal recovery amounts and greater reductions in 
the use of potable water and energy. For all of these reasons EPA 
believes that it is appropriate and may enhance the success of the 
USFRS XL project to include the pre and post filters in this XL 
Project. EPA believes it can do this by revising the definition of 
USFRS XL001 waste to include the pre-and post-filters and their 
containers. EPA will revise this definition accordingly and will make 
conforming changes in other parts of the rules where necessary. For 
example the MSDS required by Sec. 266.405, the spill response 
requirements of Secs. 266.408 and 411, the closure requirements of 
Sec. 266.412 and the recycling requirements of Sec. 266.407 will be 
revised to reflect this change.
    Comment. USFRS requested EPA to clarify the definition of USFRS XL 
waste. USFRS questioned whether the requirement in the definition of 
``USFRS XL waste'' that limited participation to generators who would 
reuse ``substantially all of the treated waste waters'' would include 
processes where up to 50% of the process waters require use of new 
water in order for the customer to operate its processes effectively. 
USFRS pointed out that in any water reuse system there is a percent of 
water that is discharged rather than being returned to the original 
process (referred to as ``bleed off''). Related to this issue USFRS 
suggested that the USFRS XL project be expanded to generators who use 
the ion exchange resin system regardless of whether they discharged the 
treated waste waters or reused them in their production process. USFRS 
felt that as long as the generators were required to send their resins 
to USFRS for metals recovery--a primary benefit of this project--there 
would be recovery of metals and a reduction in the disposal of these 
metals.
    Response. USFRS projected that this project would benefit the 
environment by reducing the use of potable water in the manufacturing 
process and increasing the recycling of metals contained in the 
manufacturing waste waters. In the preamble to the proposed rule, EPA 
solicited comment on two related topics. First, EPA asked for data or 
comments on what would be an acceptable percent of ``bleed off.'' 
USFRS' proposal at that time was limited to those generators who reused 
their treated waste waters. EPA recognized that some bleed off would 
occur. However, without data it could not establish a numeric bench 
mark for water reuse. At that time EPA believed that a numeric 
benchmark would be useful to ensure that one of the goals of the 
project was obtained--i.e., reduction in the use of potable water. 
Second, EPA asked for comments on whether the reduction in the use of 
potable water was sufficient environmental benefit by itself to warrant 
proceeding with the USFRS XL project. EPA explained that although it 
proposed to require the recycling and recovery of the metals in the 
sludges \16\ it was not confident that there were facilities available 
to complete this task. EPA was concerned that if USFRS was not able to 
find a recycler of this waste the project would not proceed. 
Consequently, there would not be any environmental benefit from the 
Project.
---------------------------------------------------------------------------

    \16\ Section 266.407 conditions this project on USFRS finding a 
metals recovery facility and using such facility throughout this XL 
Project for all USFRS XL wastes.
---------------------------------------------------------------------------

    The USFRS XL project is a RCRA regulatory reform initiative. One of 
the major environmental benefit expected from the USFRS XL project is a 
reduction in the disposal of the electroplating waste water treatment 
sludges and an increase in the recovery of metals from the ion exchange 
resin and filters. An increase the recycling and recovery of metals 
from the resins and filters would increase the waste disposal 
environmental benefits derived from this project. During the comment 
period EPA did not receive any comment suggesting that it should 
eliminate the recycling requirement. On the contrary, the private 
citizen strongly encouraged EPA to retain this requirement. 
Consequently, if USFRS is correct, allowing generators who discharge 
their treated waters to participate in this project would satisfy this 
commenter and might enhance this project's ability to recover metals 
and reduce their disposal. One method of accomplishing this would be to 
revise the definition of USFRS XL waste to eliminate from the proposed 
rule the treated water reuse requirement--specifically, eliminate the 
phrase ``ion exchange resin canisters which result in reuse of 
substantially all of the treated waste waters.'' By doing this EPA, 
would also eliminate the need to identify a benchmark amount for bleed 
off and the requirement for any water re-use.
    EPA recognizes that eliminating the water re-use requirement may 
have an impact on the amount of potable water used in the manufacturing 
process. This in turn may be less of an environmental benefit than EPA 
originally anticipated in the August 17, 2000 Federal Register. 
However, it is unclear, at this point, that such a negative impact will 
occur. It is possible that other factors, such as reduced local taxes 
for reduced water use or discharge, may work in concert with the rule 
and result in a net reduction in the use of potable water. To obtain an 
accurate assessment of the impact of this project on water use and re-
use EPA will retain in the final rule the reporting requirements 
related to water reuse contained in the proposed rule. U.S. EPA 
believes that such information will be useful and valuable for it to 
more completely assess the overall environmental impact of this USFRS 
XL project.
    Comment. USFRS wanted EPA to clarify that although its training 
manual will instruct participants on how to handle spills of USFRS XL 
waste it will not relieve them of the responsibility, if any, to have 
their own spill response plans and satisfy all federal, state and local 
requirements regarding training and how to handle spills.
    Response. EPA agrees with USFRS. The applicability section of 
subpart O, Sec. 266.400 clearly states that a participant in this XL 
project is relieved from compliance with specific RCRA requirements. 
All other federal, state and local requirements are applicable to the 
participants, including spill response and training requirements.
    Comment. USFRS questioned the manner in which it will calculate the 
quantity of metals it recovers from its generators as required in new

[[Page 28078]]

Sec. Sec. 266.419(a)(2) and (3). USFRS stated that it will calculate 
the metals collected/recovered for each generator based on the initial 
chemical profile analysis it performed on the generator's waste and the 
volume of resin received for regeneration during the relevant reporting 
period.
    Response. EPA agrees with the method USFRS proposes and does not 
believe that a change in the rule is needed. The rule presently states 
that USFRS will report the quantity of metals it recovers at its 
facility. It does not specify a method for calculating that quantity. 
EPA recognizes that the method proposed by USFRS will provide it with 
an estimate of the actual amount of metals recovered not the actual 
amount recovered that it recovers. EPA believes that such an estimate 
is sufficient given the other data USFRS will report--amount of ion 
exchange resins, other wastewater treatment sludges and residues it 
recovers from each of its generators; the amount of water recycled by 
the generators and associated treatment costs saved by the generators; 
the amount of metals it recovers at its facility and the amount of 
metals actually recovered at off-site metals recovery facilities (see 
Sec. 266.419(a)(4)).\17\
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    \17\ EPA, expects that the facility USFRS uses to recycle its 
sludges will be able to provide actual amounts of metals recovered. 
Consequently, EPA has not changed section 266.419(a)(4).
---------------------------------------------------------------------------

    Comment. USFRS suggested that the rules be revised to allow for 
continued participation by a participant after it has changed 
ownership. USFRS stated that it was inappropriate to automatically 
terminate a participant given the efforts it has expended to enroll 
transporters and generators and the time it has taken to develop this 
Project. USFRS suggested that instead of an automatic termination there 
should be a review of the participant when there is a change in 
ownership.
    Response. EPA agrees that new owners of generators or transporters 
may participate in this XL Project. EPA, however, does not believe it 
is appropriate or necessary to allow for a new owner of a generator or 
transporter to automatically continue participating in this Project 
pending a review and approval by EPA. EPA does believe that the new 
rules should be modified to allow for the substitution of a new owner 
of USFRS and to allow EPA to approve of a modified closure when there 
is new owner generator.
    The August 17, 2000 Federal Register proposed that a company's 
continued participation in this XL Project would terminate when it 
changed owners. It did not require prior notice of the change in 
ownership.\18\ The rules provided the prior owners with time to close 
and return to compliance with RCRA (see Secs. 266.414-418) \19\. The 
time periods varied depending on whether the company was a generator, 
transporter or USFRS. If a generator changed owners the prior owner 
would have to discontinue generation of USFRS XL waste and complete the 
closure requirements contained in Sec. 266.412. The prior owner would 
have 60 days from date of the change in ownership to disconnect its 
processes from the water treatment resin process, implement alternative 
treatment and disposal, remove all USFRS XL waste from its property and 
decontaminate the any contaminated areas.
---------------------------------------------------------------------------

    \18\ EPA established the post-notice and termination process in 
the proposed rules in part to avoid a concern frequently raised on 
an alternative--prior notice of ownership change and prior EPA 
approval. Frequently, for business purposes, companies want to keep 
these changes private until after they have occurred. Requiring 
prior notice appeared to be impractical.
    \19\ If a generator or transporter elects to terminate its 
participation prior to ever generating or transporting USFRS XL 
waste the rules provide a truncated termination procedure. This 
procedure does not require removal or decontamination of USFRS XL 
waste since none have been generated or transported. (See 
Secs. 266.414 and 266.416).
---------------------------------------------------------------------------

    The August 17, 2000, Federal Register proposed that generators and 
transporters may be added to this XL project at any time. Consequently, 
a new owner could be added before or after the change in ownership 
provided it met the criteria for such approval and the appropriate 
processes were completed. (See Secs. 266.402 and 266.403). One of the 
criteria is prior approval of EPA. EPA's prior approval of XL 
participants is important to the success of EPA's XL projects and this 
XL Project in particular. A company must be knowledgeable of and 
committed to the XL project and the regulations promulgated thereunder. 
Additionally, it must have an exemplary environmental compliance 
history.
    EPA believes that USFRS suggestion of allowing a new owner to 
continue without prior EPA approval may allow for a company which does 
not meet these criteria and does not qualify to participate. When a 
company changes ownership it is unknown whether the new owners meet 
these criteria. Additionally, a number of practical problems are 
presented. The new owners may decide not to participate in the XL 
project; they may decide to change personnel, operations or generate 
waste streams different from their predecessor; or they may have to 
clean-up wastes that the prior owner left. EPA believes that these 
issues should be resolved before a new owner is added to this XL 
project and generates USFRS XL waste. In instances where these issues 
are quickly resolved--e.g., everything stays the same but for the name 
of the owner--USFRS should be able to expedite the addition of the new 
owner to this XL project. Since the rules allow for the addition of a 
new generator or transporter at any time, a new owner could apply to 
participate prior to the change in ownership. This would minimize the 
disruption in any continuing operations. The advantage of terminating 
the prior owner's participation is that it clearly delineates the 
responsibility for any previously generated USFRS XL waste. The prior 
owner is responsible for closure.
    EPA believes, however, that the termination procedures should be 
modified in one instance.\20\ According to Sec. 266.415(d) once there 
has been a change in ownership of a generator the prior generator has 
60 days to complete the closure requirements of Sec. 266.412. EPA is 
concerned that the rule as proposed would not allow a new owner to 
assume the prior generator's closure responsibilities or continue the 
pre-existing ion exchange resin process. This may be appropriate in 
certain instances--e.g., where the new owner is not approved or does 
not want to assume those responsibilities. However, there are other 
instances where it may be environmentally better to allow the new owner 
to continue the previous process without disruption or to assume the 
clean up responsibilities of the prior owner. To strike the proper 
balance between these two interests and to provide some flexibility EPA 
will change section 266.415(d) to require the prior owner to complete 
closure within 60 days of the change in ownership unless, within that 
time period, EPA has approved of the new owner and EPA has approved of 
any modifications the new owner proposes to the prior owner's closure 
responsibilities. If these approvals are not received within this

[[Page 28079]]

time period the prior owner is still responsible for completing the 
closure within the 60 days.
---------------------------------------------------------------------------

    \20\ EPA does not believe it is necessary or appropriate to 
modify the procedures in section 266.414(b), 266.416(b) or 
266.417(d), termination of an approved customer, approved 
transporter and transporter as a result of a change in ownership. 
For an approved customer and approved transporter there are no 
closure requirements specified since by definition they will never 
had handled USFRS XL waste. For the transporter the ``closure'' 
would consist merely of transporting the USFRS XL wastes it has to 
USFRS within 30 days of the change in ownership. This was 
inadvertently left out of section 266.417(d) but is consistent with 
266.417(a), (b) and (c) and the general requirement to transport 
USFRS XL wastes to USFRS within 30 days of there receipt. (See 
section 266.410(a)). EPA will add this to section 266.417(d).
---------------------------------------------------------------------------

    The change in ownership of USFRS presents a problem not previously 
contemplated by EPA when it developed the proposed rule. The rules do 
not provide a mechanism or procedure to add the new owner of USFRS. 
Instead, they required USFRS to notify EPA of the change in ownership 
within 30 days of it happening and then within 90 days to arrange for 
the transition of all the USFRS XL waste project participants to return 
to compliance with RCRA. (See Sec. 266.418(b)). Consequently, if USFRS 
were to change ownership then this XL Project would automatically 
terminate. This would set into motion the termination of the continued 
participation of all of the generator and transporters approved for 
participation in this project. The automatic termination of USFRS could 
potentially have a significant economic and environmental impact as a 
large number of companies attempt to switch from the ion exchange resin 
filter system to some other system within the same time. Such a 
consequence may be unavoidable where there are substantive reasons for 
terminating USFRS continued participation or this XL project--e.g. 
USFRS continuously violates its permit or the project does not 
demonstrate any environmental benefit. However, in the case of a change 
in ownership this is not necessarily true. Consequently, EPA believes 
that some procedure should be established to allow for the new owner of 
USFRS to continue operating this XL Project. This would be consistent 
with the RCRA permit rules which allow for the continued operation of a 
permitted facility after a change in ownership, provided the Agency has 
approved of the change in ownership. Consequently, EPA has modified 
Sec. 266.418(b) to require USFRS to provide EPA with 90 days advance 
notice of any change in ownership and to provide EPA with its proposed 
revisions to the FPA if the new owner wishes to continue this XL 
Project. If EPA and the new owner are able to agree upon and sign the 
proposed revisions to the FPA within that 90 day time frame then the 
new owner may continue this XL Project. If an agreement and signature 
is not obtained within that time frame then procedures presently in the 
rules for automatic termination apply.
    Comment. USFRS and MPCA requested that EPA extend the duration of 
the project to account for the time that it will take to obtain the 
necessary State, county and federal approvals. Both entities were 
concerned that it may take up to a year to obtain all of the necessary 
governmental approvals. This time will erode the five years that were 
given for the duration of the project.
    Response. EPA agrees that sufficient time should be allowed for the 
project. Proposed Sec. 266.422 stated that the new federal rules would 
be effective for five years from the effective date of the final rules. 
However, the preamble to the proposed rules clearly stated that USFRS 
may not implement the program outlined in the rules until the State of 
Minnesota either: (1) Receives federal authorization for similar state 
rules, (2) issues variances under its existing federally authorized 
hazardous waste program or (3) receives federal authorization for 
permits it issues to participating generators, transporters and USFRS 
pursuant to the Minnesota XL statute. Each of these options can easily 
take six months, at a minimum, to complete.
    Minnesota has indicated a preference for the latter option-using 
its XL statute to develop general permits for the generators and 
transporters and modifying the existing hazardous waste permit for 
USFRS. Minnesota most likely will work on the XL permits in a 
sequential manner. It will develop the generator and transporter 
general permits first and then make the changes needed to USFRS RCRA 
hazardous waste permit. It will not issue the modifications to the 
USFRS RCRA hazardous waste permit until the generator and transporter 
general permits are completed and Minnesota has received authorization 
for these permits.\21\ In this process the modified USFRS RCRA 
hazardous waste permit is the last element needed to make this XL 
project effective in the State.
---------------------------------------------------------------------------

    \21\ Although Minnesota has indicated a preference for issuing 
general permits under its XL statute, it might later decide to 
promulgate new state RCRA regulations and submit those to EPA for 
authorization or to issue variances under its approved RCRA program. 
In any case, USFRS' RCRA permit will need to be modified.
---------------------------------------------------------------------------

    EPA anticipates that Minnesota will need up to year to complete all 
the steps needed to implement its preferred option. Consequently, 
without providing an extension to the effective date of the proposed 
rule the project will last for only four years, at most, not the five 
years proposed.
    Providing more time may also act as an incentive for more 
generators to participate in the USFRS XL project. This in turn may 
provide USFRS and EPA with more reliable information on the 
environmental benefits derived from the project. It may also provide 
EPA with additional time to evaluate whether the project can and should 
be expanded. Consequently, EPA has modified Sec. 266.422 in the 
following two ways to provide the full five years for the duration of 
the project. EPA has changed the effective date of subpart O to six 
months after publication of the final rule in conformance with section 
6930(b) of RCRA. Second, EPA has changed Sec. 266.422 to indicate that 
the project will run for five years from the date that Minnesota issues 
a modification to the USFRS RCRA permit to implement this XL project. 
Since the modified RCRA permit is the last step anticipated in 
Minnesota's implementation process for this project it is reasonable 
that the duration of the project be measured from that date.
    Comment. USFRS requested EPA to amend the rules to allow it more 
than 30 days to pick up a generator's XL waste. USFRS indicated that 
this requirement would effectively reduce the 90 day storage allowed 
for generators of the USFRS XL waste to 30 days. This in turn would 
have the greatest impact on USFRS being able to attract new customers 
located outside the Minneapolis-St. Paul area. Generators outside of 
the metropolitan area would be most sensitive to transportation costs. 
The 30 day time limit would increase those transportation costs since 
USFRS expected that there would be more frequent pick-ups with smaller 
loads. If the time period were extended USFRS felt that some of the 
expenses could be reduced. USFRS suggested that the rule allow it to 
pick-up the XL waste within the 90 days allowed for the generator to 
store the XL waste. USFRS further suggested that it would agree that 
the rule state that at no time would the XL wastes be allowed to remain 
on-site for greater than 90 days.
    Response. EPA agrees with USFRS' request and will revise 
Sec. 266.410(a) and (c) to allow it and its transporter to pick up a 
generator's USFRS XL waste within the 90 days allowed the generator to 
store the waste. The changes suggested by USFRS are consistent with the 
goal of the project and the rule and may result in a rule which works 
better than the proposed rule.
    One of the goals of this project is to increase the recycling of 
F006 waste. It is reasonable to expect that the more participants in 
this project the greater the chance that this goal will be met. 
Consequently, if USFRS is correct, then USFRS may be able to maximize 
the number of participants with EPA providing a longer time period for 
USFRS to pick up the wastes. EPA selected the 30 day time period in the 
proposed rule because it appeared that

[[Page 28080]]

USFRS could meet this time period. The ultimate goal of the rule was to 
ensure that there was adequate cooperation between the project 
participants to accomplish the same goal--i.e., remove the XL waste 
from the generator's storage area prior to the expiration of the 90 day 
storage limit. This goal can be met by revising Sec. 266.410(a) and (c) 
to specify that USFRS and its transporters will pick up a generator's 
XL waste before the 90 day storage time limit expires on the waste.\22\
---------------------------------------------------------------------------

    \22\ USFRS did not request EPA to change the time period it 
would take the transporter to transport the XL wastes to its 
facility. Consequently, EPA will retain the requirement in 
266.410(c) that the transporter deliver the USFRS XL waste to USFRS 
within 30 days of it picking it up from a USFRS XL waste generator.
---------------------------------------------------------------------------

    Comment. USFRS requested EPA to change Sec. 266.410(a) to allow it 
more time to send a copy of the Transportation Tracking document it 
received with the shipment of XL waste to the generator. USFRS stated 
that 5 days was inconsistent with its present practice approved by the 
State. Namely, USFRS mails copies of the hazardous waste manifests to 
the state and the generators once per week.
    Response. EPA agrees to extend the time from 5 days to 10 days. 
This is more stringent than the 30 days allowed under RCRA but should 
allow USFRS to continue its existing practice which the State has 
approved for other hazardous waste shipments. It will also provide the 
generator and USFRS sufficient time to track any missing shipments.
    Comment. USFRS requested EPA to modify Sec. 266.410(a) to allow it 
to provide the generator's with the Transportation Tracking Document 
and warning statement at the time the transporter arrives at the 
generator to pick-up the USFRS XL waste. USFRS indicated that such a 
modification to the rule will make the rule harmonious with its 
existing system for all wastes. This would allow it to maintain the 48 
hour response time for pick-up of its customer's wastes in the local 
area.
    Response. EPA agrees to make the change requested by USFRS in 
Sec. 266.410(a). The proposed rule stated that USFRS was to provide the 
Transportation Tracking Document and warning statement to the generator 
prior to the transporter arriving at the generator. The purpose of the 
timing requirement was to provide the generator with time to review the 
document and make any changes that might be necessary. This can be 
accomplished if the document arrives with the transporter. 
Additionally, since the generator and the transporter are still 
responsible for verifying the accuracy of the document under 
Sec. 266.410(b) and (c) the ultimate goal of the rule is still 
achieved--i.e., accurate transportation tracking documents.
    Comment. USFRS was concerned that it could not meet the MSDS 
requirements in Secs. 266.405, 266.408(g), 266.410(c) and 266.411 
because its MSDS covered the ion exchange resins prior to use (i.e., 
``fresh resins'') whereas these rules contemplated an MSDS which 
covered the resins after use (i.e., with contamination on them). It 
proposed using another document--the Treatment and Storage form--which 
identifies the hazards associated with the wastes and emergency 
response protocols.
    Response. EPA will revise Sec. 266.405 to allow USFRS to use the 
MSDS or an equivalent form which identifies the hazards associated with 
the resins and filters after use and the emergency response protocols. 
This change should allow USFRS to use its Treatment and Storage form if 
it contained the requisite information.
    Comment. USFRS stated that in certain instances the subpart O rules 
are more stringent than RCRA or its routine practices and should be 
revised to be the same as RCRA (e.g.., generator storage of USFRS XL 
waste limited to 90 days, regardless of the amount; storage of the 
USFRS XL waste on an impervious surface; time limits for exiting the XL 
project which are inconsistent with RCRA and notice to more entities of 
a spill than just MPCA). USFRS felt that these provisions would make it 
difficult to convince potential customers who are knowledgeable about 
RCRA to participate in this program.
    Response. An XL project must be environmentally superior to the 
existing regulatory program. Consequently, EPA would anticipate that 
certain elements of this XL project would be more stringent than the 
RCRA regulatory program. In developing the subpart O rules, EPA 
attempted to balance the desire to maximize the number of participants 
with the need to ensure that the project would result in superior 
environmental benefits. EPA believes that it has done that by replacing 
the manifest and reporting requirements for the generators, expanding 
the scope of the program to include pre and post filters and 
eliminating the treated water re-use requirement. In exchange for these 
provisions EPA believes that the requirements identified as more 
stringent are a reasonable trade off.
    Comment. USFRS suggested that Sec. 266.412 was incorrect based on 
their understanding that it referred to discontinuation of business not 
the generator closure identified on page 50307 of the August 17, 2000 
Federal Register.
    Response. EPA disagrees with USFRS. Sec. 266.412 requires the 
generators to complete closure at the time of termination of the 
generator's participation in the USFRS XL project. Sec. 266.415 
specifies the manner in which a generator may terminate its 
participation--either voluntarily, as a result of action EPA, MPCA or 
the County Agencies, as a result of action by USFRS or after a change 
in ownership. The rule also specifies the time period for completing 
closure under each of these scenarios--it is 60 days.
    Comment. USFRS and MPCA requested EPA to commit to assisting it in 
expanding this project beyond the State of Minnesota.
    Response. As a general goal EPA agrees that expanding an XL Project 
to other States and other companies may be a desired outcome of its XL 
program, if the pilot shows promise. EPA, however, believes that it is 
premature for it to make the commitment USFRS and MPCA seek. XL 
Projects are participant driven pilot projects. The time and resources 
necessary to develop a project is significant and is the responsibility 
of the project sponsor. USFRS did a good job of developing this XL 
Project with the State of Minnesota and tailoring it to the rules of 
that State and its local governments. However, in order to expand this 
project beyond the State of Minnesota USFRS will need to involve other 
State, local, environmental and industry groups. Additionally, it will 
need to modify the proposal in a manner which is consistent with each 
State's authorized hazardous waste program. For example, USFRS' 
transportation tracking document may present certain States with 
administrative issues.
    To the extent this project is amenable to expansion EPA believes 
that it can make such a determination after USFRS has implemented this 
project for one or two years. After that time USFRS will have obtained 
actual data on the environmental benefits derived from this XL project. 
USFRS will also have had the opportunity to identify improvements to 
the Project and to convene the necessary stakeholder meetings. At that 
time EPA will be in a position to ascertain if this project is capable 
of being expanded on a national basis and the appropriate manner in 
which to make such a change.
    Comment. USFRS stated that the use of 55 gallon steel drums to 
collect and contain spills of ion exchange resins would be 
inappropriate. The steel can corrode when in contact with certain

[[Page 28081]]

resins \23\ or can irreversibly foul them. Additionally, the amount 
spilled may be significantly less than 55 gallons. As an alternative 
USFRS suggested that the drum be a polycontainer compatible with the 
wastes and of sufficient size to contain the amount spilled.
---------------------------------------------------------------------------

    \23\ The resin canisters are steel but compatible with the 
resins because there is a liner which separates the resins from the 
steel.
---------------------------------------------------------------------------

    Response. EPA will revise Secs. 266.408(e) and 266.411 as suggested 
by USFRS.
    Comment. USFRS was concerned that Sec. 266.408(b) would require the 
generators to store the USFRS XL wastes in separate areas from their 
storage of other wastes. USFRS believed that simple segregation of the 
USFRS XL wastes would be sufficient.
    Response. EPA agrees that simple segregation of the USFRS XL wastes 
from the other wastes is sufficient. It disagrees that Sec. 266.408(b) 
requires storage in a separate area. Storage in a separate area within 
a storage area for other wastes would be acceptable.
    Comment. One individual felt that the public participation was 
inadequate. He suggested that there was not enough ``non-governmental'' 
stakeholders. He said that the FPA should not be signed until there 
were additional public meetings and his client had an opportunity to 
become one of the stakeholders.
    Response. Stakeholder involvement and representation is an 
important element for every XL project. It is the responsibility of the 
project sponsor and continues throughout the project--even during 
implementation. EPA regrets when any stakeholder is not able to 
participate as early in the process and as often as it would like. EPA 
certainly would expect that USFRS would include any stakeholder who 
wishes to be added to this stakeholder's group.
    EPA disagrees, however, that there was inadequate public 
participation and that the FPA and rule should not be signed. USFRS had 
9 separate stakeholder meetings. They invited and had in attendance 
representatives from industry, the environmental community, private 
citizens and the State and local governments. All of this was done 
prior to EPA public noticing the draft FPA and proposed rules on August 
17, 2000. With the August 17, 2000 Federal Register EPA invited the 
public to submit comments and request a public meeting. Requests for a 
public meeting were to be made by August 24, 2000. EPA did not receive 
any such requests until it received this request on September 7, 2000. 
Even though this is a late request for a public meeting EPA has 
evaluated the merits of the request and believes that an additional 
public comment period or a public meeting are unnecessary. This 
commenter submitted two pages of substantive comments on the proposed 
rule and draft FPA. (EPA presents a more detailed summary and response 
to these comments below). The commenter was primarily concerned with 
EPA retaining the recycling requirement. EPA has done that. 
Additionally, this commenter will continue to have meaningful 
opportunities to comment on this project after the FPA and rule are 
signed. As stated earlier, stakeholder involvement continues after the 
FPA is signed and this rule is promulgated. That involvement will be 
meaningful. Major implementation issues and decisions still have to be 
completed. Signing the FPA and new rule is just the first step in the 
process. For example, the State will have to develop the legal 
mechanisms which it will use to implement this project. Public 
involvement may be useful in completing this. Additionally, some of the 
legal mechanisms the State may use may require public participation 
prior to completion of them. To the extent the commenter is concerned 
that it is precluded from participating in the project that is not 
correct. The project is structured in a manner which allows any person 
who qualifies to be added to the project as a generator or a 
transporter. To the extent the commenter is concerned that the 
environmental benefits of the project may be insufficient, any person--
not just stakeholders--may advise EPA, USFRS, MPCA or the County 
Agencies of project problems at any time. If the problems are major and 
not capable of being fixed, EPA has retained the ability in both the 
FPA and rules to terminate this project at an earlier time.
    Comment. One commenter responded to EPA's request for comments on 
whether this project should be conditioned on USFRS' ability to recycle 
the USFRS XL wastes. The commenter stated that the recycling 
requirement must be retained. He stated that before EPA eliminated that 
requirement it needed to conduct further studies. Those studies would 
provide data on the impact of the increased metal disposal against the 
environmental benefit of a reduction in the use of potable water. The 
commenter also wanted EPA to ensure that generators who are currently 
reclaiming metals from F006 wastes continue to do so.
    Response. EPA agrees that the recycling aspect of this Project is a 
major part of it and has the potential to yield a significant 
environmental benefit. Furthermore, it appears that there is a market 
for this service and that USFRS will be able to obtain such services. 
EPA has, therefore, retained the recycling requirement. Consequently, 
USFRS and participating generators, through USFRS, will be recycling 
the USFRS XL wastes.
    If the project operates as USFRS projects the amount of metals 
recycled and the number of generators who recycle metals may increase. 
USFRS anticipates this would happen, in part, as a result of its resin 
process collecting more metals prior to waste water discharge to a POTW 
and in part due to companies doing waste water treatment when they did 
not previously do it.
    EPA disagrees with the commenter's suggestion that certain studies 
are needed prior to EPA approving of this project. XL projects are 
intended to pilot new approaches. By their nature, some projects will 
not have the data on the actual environmental benefits a priori. They 
may be used to collect the data to substantiate the benefits 
anticipated. Such projects may be used to assist EPA in obtaining the 
data and experience, on a small scale, it needs to determine whether 
larger, national changes should be made. This XL project does that. It 
requires USFRS to collect and analyze data which will allow EPA to 
assess the comparative environmental benefits derived from the use of 
its resin regeneration process and the alternative management standards 
imposed on F006 wastes which are recycled. (See Sec. 266.419).
    Comment. The State submitted written comments indicating that it 
was uncertain of the legal mechanisms it could use to implement the XL 
project. In its written comments, due to resource constraints and other 
uncertainties, it generally disagreed with certain options EPA outlined 
in the preamble to the proposed rule. It suggested that EPA use the FPA 
to incorporate their understandings and agreement on the implementation 
options to be used for this project.
    Response. EPA shares the State's concerns about the length of time 
and resources it will need to finish the State and, in two instances, 
federal authorization proceedings to implement the new subpart O rules. 
EPA also agrees that the FPA can be used to identify the legal options 
and mechanisms the EPA and the State may use to implement this XL 
Project. EPA has revised the FPA to do that.
    The FPA allows the State to chose any of the three options EPA 
identified in the preamble to the August 17, 2000, Federal Register. In 
summary those

[[Page 28082]]

options are: (1) Revise its existing hazardous waste rules to mirror 
new subpart O; (2) issue permits which mirror the new subpart O to the 
project participants using the State's XL statute; or (3) issue 
variance(s) which mirror the new subpart O to the project participants 
using the variance authority in its existing RCRA authorized hazardous 
waste program or. The first two options require the State to submit 
them to EPA for federal authorization after they are adopted by the 
State.\24\ The State has indicated its preference for option 2 (issuing 
permit(s) and submitting an authorization application). To expedite 
matters, EPA has provided the State with guidance on the elements of an 
authorization application for option 2. EPA has also committed in the 
FPA to expedite its review of its request for authorization of option 
2. Finally, EPA has delayed the start of the subpart O rules, and thus 
this project, in a manner which will allow USFRS to implement this XL 
project for the full five years, regardless of any delays the State or 
EPA may incur in putting in place the required legal mechanisms.
---------------------------------------------------------------------------

    \24\ The preamble to the proposed rule provides more information 
on the options, the rationale for each and the steps needed to make 
them legally enforceable.
---------------------------------------------------------------------------

    In addition to the changes already discussed EPA modified 
Secs. 266.401, 266.403(c), 266.414, 266.415 and 266.416. EPA made these 
changes on its own initiative.
    Sections 266.414-418 present the federal procedures for termination 
of an entities continued participation in this XL Project. EPA added in 
Secs. 266.314, 266.315 and 266.316 that the State and County may have 
different procedures. Furthermore, EPA added that it is not bound by 
nor will it follow the State or local procedures. This is true 
regardless of the enforceable mechanisms the State uses to implement 
this XL Project. EPA explained this position in the preamble to the 
August 17, 2000 Federal Register and had stated it in proposed 
Secs. 266.417 and 266.418. EPA inadvertently excluded this language in 
the proposed version of Secs. 266.414, 266.415 and 266.416 and is 
correcting the final version of these sections with this final 
promulgation.
    EPA is revising Sec. 266.401 (definition of USFRS XL waste final 
project agreement) and Sec. 266.403(c) to change the name Pioneer 
Transport to Pioneer Tank Lines. USFRS proposed Pioneer Tank Lines as 
one of the approved transporters for the USFRS XL waste. EPA mistakenly 
identified this company as Pioneer Transport in the proposed rules. EPA 
is correcting these rules to (Secs. 266.401 and 266.403(c)) to reflect 
the correct name--Pioneer Tank Lines.
    The designation for the regulatory text has been changed from 
subpart N, Secs. 266.300-266.322 in the proposed rule to subpart O, 
Secs. 266.400-266.422 in final rule. This is due to a numbering 
conflict with a simultaneously proposed rule.

VI. Additional Information

A. What Regulatory Changes Will Be Necessary To Implement This Project?

    With the promulgation of this new rule no further federal 
regulatory changes will be needed. However, since the state of 
Minnesota is authorized under section 3006 of RCRA to implement the 
federal RCRA program it will have to complete certain steps to provide 
USFRS, its generators and transporters with the regulatory flexibility 
needed to implement the USFRS XL project. The preamble to the proposed 
rule provides a detailed discussion of the steps Minnesota can take to 
implement this USFRS XL project. The approved generators, transporters 
and USFRS are subject to the present state regulations, which do not 
provide this flexibility, until such time as new regulations are 
adopted by the state of Minnesota or an equivalent state legal 
mechanism is used and authorized as part of the approved federal 
hazardous waste program for Minnesota. Therefore, conforming state 
regulatory changes or legal mechanisms must be implemented in addition 
to the proposed federal changes for companies to enter into this XL 
Project. Additionally, depending on the mechanism selected by the State 
of Minnesota, EPA may have to review and approve of the mechanism as 
part of the State's authorized hazardous waste program.

B. Why Is EPA Supporting This New Approach to USFRS XL Waste 
Management?

    EPA is supporting this new approach because it believes that it 
will provide superior environmental performance by promoting recycling 
of water and recovery and reuse of metals that would otherwise be land 
disposed. USFRS and its customers will be complying with requirements 
that are as protective of public health and the environment as the RCRA 
requirements that would otherwise be applicable. EPA also believes that 
implementation of this project will result in a significant cost 
savings to the participating customers. The success of this project 
will be evaluated on an ongoing basis and will determine whether this 
new approach to waste management should be extended to other areas of 
the country.

C. How Does This Rule Comply With Executive Order 12866?

    Because this rules affects only U.S. Filter, its transporters and 
its customers, it is not a rule of general applicability. It is 
therefore, not subject to OMB review and Executive Order 12866. In 
addition, OMB has agreed that review of site-specific rules under 
Project XL is not necessary. Further, under Executive Order 12866, the 
Agency first must determine whether the regulatory action is 
``significant'' and therefore subject to Office of Management and 
Budget (OMB) review and the requirements of the Executive Order. The 
Order defines ``significant regulatory action'' as one that is likely 
to result in a rule that may: (1) Have an annual effect on the economy 
of $100 million or more or adversely affect in a material way the 
economy, a sector of the economy, productivity, competition, jobs, the 
environment, public health or safety in State, local, or tribal 
governments or communities; (2) Create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency; 
(3) Materially alter the budgetary impact of entitlement, grants, user 
fees, or loan programs of the rights and obligations of recipients 
thereof; or (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    Because the annualized cost of this proposed rule would be 
significantly less than $100 million and would not meet any of the 
other criteria specified in the Executive Order and because this 
proposed rule affects only USFRS and its transporters and generators, 
it is not a rule of general applicability or a ``significant regulatory 
action'' and therefore not subject to OMB review. Further today's 
proposed rule does not apply to any entity unless they choose on a 
voluntary basis to participate in this XL Project. Finally, OMB has 
agreed that review of site specific rules under Project XL is not 
necessary.
    Executive Order 12866 also encourages agencies to provide a 
meaningful public comment period, and suggests that in most cases the 
comment period should be 60 days. However, in consideration of the very 
limited scope of today's rulemaking and the considerable public 
involvement in the development of the draft FPA, the EPA considers 30 
days to be sufficient in providing a meaningful public comment period 
for today's action.

[[Page 28083]]

D. Is a Regulatory Flexibility Analysis Required?

    The Regulatory Flexibility Act (RFA), as amended by the Small 
Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 U.S.C. 
601 et seq. generally requires an agency to prepare a regulatory 
flexibility analysis of any rule subject to notice and comment 
rulemaking requirements under the Administrative Procedure Act or any 
other statute unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
Under section 605(b) of the RFA, however, if the head of an agency 
certifies that a rule will not have a significant economic impact on a 
substantial number of small entities, the statute does not require the 
agency to prepare a regulatory flexibility analysis. Pursuant to 
section 605(b), the Administrator certifies that this proposal, if 
promulgated, will not have a significant economic impact on a 
substantial number of small entities for the reasons explained below. 
Consequently, EPA has not prepared a regulatory flexibility analysis.
    Small entities include small businesses, small organizations and 
small governmental jurisdictions. For purposes of assessing the impacts 
of today's proposed rule on small entities, small entity is defined as 
: (1) A small business according to RFA default definitions for small 
business (based on SBA size standards); (2) a small governmental 
jurisdiction that is a government of a city, county, town, school 
district or special district with a population of less than 50,000; and 
(3) a small organization that is any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field.
    Today's rule amends EPA's RCRA Regulations to modify the handling 
and reporting requirements for certain hazardous waste generators and 
transporters, as well as for USFRS. USFRS is not a small entity. The 
modifications authorized by the rule would reduce costs to the 
generators to whom it applies and those modifications should have no 
impact on costs to the transporters. EPA has concluded, therefore, that 
the rule will not have a significant economic impact on a substantial 
number of small entities.

E. Is an Information Collection Request Required for This Project Under 
the Paperwork Reduction Act?

    The Office of Management and Budget (OMB) has approved the 
information collection requirements contained in this rule under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.) and 
has assigned OMB control number 2010-0026.
    EPA is requiring that information be collected regarding which 
generators and transporters are eligible for regulatory flexibility 
under the USFRS XL Project. Information is also needed in order to keep 
generators, transporters, USFRS, and emergency response teams abreast 
of XL 001 waste, its contents, and when it is shipped and received. 
Finally information is needed to determine whether the project produces 
superior economic and environmental benefits. The success of the 
project will help determine whether it should be extended to other 
areas of the country. Participation in the project is voluntary; 
however, if a generator or transporter decides to participate, EPA 
requires the filing of this information. Quarterly reports will be 
publicly available. The estimated total cost burden of collecting the 
information is $240,670/year and the estimated total length of time to 
collect it is 4205 hours/year. The estimated total number of 
respondents is 91. Burden means the total time, effort, or financial 
resources expended by persons to generate, maintain, retain, or 
disclose or provide information to or for a Federal agency. This 
includes the time needed to review instructions; develop, acquire, 
install, and utilize technology and systems for the purposes of 
collecting, validating, and verifying information, processing and 
maintaining information, and disclosing and providing information; 
adjust the existing ways to comply with any previously applicable 
instructions and requirements; train personnel to be able to respond to 
a collection of information; search data sources; complete and review 
the collection of information; and transmit or otherwise disclose the 
information.
    An Agency may not conduct or sponsor, and a person is not required 
to respond to a collection of information unless it displays a 
currently valid OMB control number. The OMB control numbers for EPA's 
regulations are listed in 40 CFR part 9 and 48 CFR Chapter 15. EPA is 
amending the 40 CFR part 9 table of currently approved ICR control 
numbers issued by OMB for various regulations to list the information 
requirements contained in this final rule. The table lists the CFR 
citations for EPA's reporting and recordkeeping requirements, and the 
current OMB control numbers. This listing of OMB control numbers and 
their subsequent codification in the CFR satisfy the requirements of 
the Paperwork Reduction Act and OMB's implementing regulations at 5 CFR 
part 1320.

F. Does This Project Trigger the Requirements of the Unfunded Mandates 
Reform Act?

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local and tribal 
governments and the private sector. Under section 202 of the UMRA, EPA 
generally must prepare a written statement, including a cost-benefit 
analysis, for proposed and final rules with ``Federal mandates'' that 
may result in expenditures to State, local, and tribal governments, in 
the aggregate, or to the private sector, of $100 million or more in any 
one year. Before promulgating an EPA rule for which a written statement 
is needed, section 205 of the UMRA generally requires EPA to identify 
and consider a reasonable number of regulatory alternatives and adopt 
the least costly, most cost-effective or least burdensome alternative 
that achieves the objectives of the rule. The provisions of section 205 
do not apply when they are inconsistent with applicable law. Moreover, 
section 205 allows EPA to adopt an alternative other than the least 
costly, most cost-effective or least burdensome alternative if the 
Administrator publishes with the final rule an explanation why the 
alternative was not adopted. Before EPA establishes any regulatory 
requirements that may significantly or uniquely affect small 
governments, including tribal governments, it must have developed under 
section 203 of the UMRA a small government agency plan. The plan must 
provide for notifying potentially affected small governments, enabling 
officials of affected small governments to have meaningful and timely 
input in the development of EPA regulatory proposals with significant 
Federal intergovernmental mandates, and informing, educating, and 
advising small governments on compliance with the regulatory 
requirements.
    As noted above, this proposed rule is limited to USFRS and certain 
of its customers and transporters. This proposed rule would create no 
federal mandate because it is a voluntary program proposed by USFRS. 
Further, EPA is imposing no enforceable duties that are anticipated to 
be more expensive or more onerous for the parties that would exist 
without this proposed rule. The rule does not change the authorization 
status of the State. Since the proposed rule is a relaxation of the 
federal regulatory program, it will not take effect until the State 
adopts the

[[Page 28084]]

rule. The State is under no federal obligation to adopt less stringent 
requirements. EPA has also determined that this proposed rule does not 
contain a Federal mandate that may result in expenditures of $100 
million or more for State, local, and tribal governments, in the 
aggregate, or the private sector in any one year. Thus, today's 
proposed rule is not subject to the requirements of sections 202 and 
205 of the UMRA. EPA has also determined that this rule contains no 
regulatory requirements that might significantly or uniquely affect 
small governments. Nevertheless, in developing this proposed rule, EPA 
worked closely with MPCA, Ramsey, Hennepin, Anoka, Dakota, Carver, 
Scott and Washington Counties and received meaningful and timely input 
in the development of this proposed rule.

G. How Does This Rule Comply With Executive Order 13045: Protection of 
Children From Environmental Health Risks and Safety Risks?

    Executive Order 13045, ``Protection of Children from Environmental 
Health Risks and Safety Risks'' (62 FR 19885, April 23, 1997) applies 
to any rule that: (1) Is determined to be ``economically significant,'' 
as defined under Executive Order 12866; and (2) concerns an 
environmental health or safety risk that EPA has reason to believe may 
have a disproportionate effect on children. If the regulatory action 
meets both criteria, the Agency must evaluate the environmental health 
or safety effects of the planned rule on children, and explain why the 
planned regulation is preferable to other potentially effective and 
reasonably feasible alternatives considered by the Agency.
    The EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that are based on health or safety risks, such that 
the analysis required under section 5-501 of the Order has the 
potential to influence the regulation. This proposed rule is not 
subject to Executive Order 13045 because it is not economically 
significant as defined in Executive Order 12866 and because the Agency 
does not have reason to believe the environmental, health or safety 
risks addressed by this action present a disproportionate risk to 
children. The proposed rule has no identifiable direct impact upon the 
health and/or safety risks to children and adoption of the proposed 
regulatory changes would not disproportionately affect children. 
Finally, all XL projects must demonstrate superior environmental 
performance. Therefore, EPA anticipates that the proposed rulemaking 
will benefit all people, including children. The proposed rulemaking is 
thus in compliance with the intent and requirements of the Executive 
Order.

H. How Does This Rule Comply With Executive Order 13132 on Federalism?

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255), 
August 10, 1999), requires EPA to develop an accountable process to 
ensure ``meaningful and timely input by State and local officials in 
the development of regulatory policies that have federalism 
implications.'' ``Policies that have federalism implications'' is 
defined in the Executive Order to include regulations that have 
``substantial direct effects on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government.''
    Under section 6 of Executive Order 13132, EPA may not issue a 
regulation that has federalism implications, that imposes substantial 
direct compliance costs, and that is not required by statute, unless 
the Federal government provides the funds necessary to pay the direct 
compliance costs incurred by State and local governments, or EPA 
consults with State and local officials early in the process of 
developing the proposed regulation.
    This proposed rule does not have federalism implications. It will 
not have substantial direct effect on the States, on the relationship 
between the national government and the States, or on the distribution 
of power and responsibilities among the various levels of government, 
as specified in Executive Order 13132. The requirements outlined in 
today's proposed rule would apply only to the USFRS facility and 
generators and transporters of USFRS XL waste and will not take effect 
unless Minnesota chooses to adopt equivalent legal mechanisms or 
requirements under state law. Thus, the requirements of Section 6 of 
the Executive Order do not apply to this rule. Although Section 6 of 
Executive Order 13132 does not apply to this rule, EPA did fully 
coordinate and consult with State and local officials in developing 
this rule.

I. How Does This Rule Comply With Executive Order 13175: Consultation 
and Coordination With Indian Tribal Governments?

    Tribal Governments (65 FR 67249, November 6, 2000), requires EPA to 
develop an accountable process to ensure ``meaningful and timely input 
by tribal officials in the development of regulatory policies that have 
tribal implications.'' ``Policies that have tribal implications'' is 
defined in the Executive Order to include regulations that have 
``substantial direct effects on one or more Indian tribes, on the 
relationship between the Federal government and the Indian tribes, or 
on the distribution of power and responsibilities between the Federal 
government and Indian tribes.''
    This final rule does not have tribal implications. It will not have 
substantial direct effects on tribal governments, on the relationship 
between the Federal government and Indian tribes, or on the 
distribution of power and responsibilities between the Federal 
government and Indian tribes, as specified in Executive Order 13175. 
Thus, Executive Order 13175 does not apply to this rule.
    In the spirit of Executive Order 13175, and consistent with EPA 
policy to promote communications between EPA and tribal governments, 
EPA specifically solicits additional comment on this proposed rule from 
tribal officials.

J. Does This Rule Comply With the National Technology Transfer and 
Advancement Act?

    Section 12(d) of NTTAA, Public Law 104-113, section 12(d) (15 
U.S.C. 272 note) directs EPA to use voluntary consensus standards in 
its regulatory activities unless to do so would be inconsistent with 
applicable law or otherwise impractical. Voluntary consensus standards 
are technical standards (e.g., materials specifications, test methods, 
sampling procedures, and business practices) that are developed or 
adopted by voluntary consensus standards bodies. The NTTAA directs EPA 
to provide Congress, through OMB, explanations when the Agency decides 
not to use available and applicable voluntary standards. This proposed 
rulemaking sets alternative handling and paperwork requirements for 
certain hazardous wastes; it does not set technical standards. EPA is 
not considering the use of any voluntary consensus standards.

K. How Does This Rule Comply With the Congressional Review Act?

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. Section 804 exempts from section 801 the following types 
of rules (1) rules of particular

[[Page 28085]]

applicability; (2) rules relating to agency management or personnel; 
and (3) rules of agency organization, procedure, or practice that do 
not substantially affect the rights or obligations of non-agency 
parties. 5 U.S.C. 804(3). EPA is not required to submit a rule report 
regarding today's action under section 801 because this rule is of 
particular applicability.

List of Subjects

40 CFR Part 261

    Environmental protection, Hazardous waste, Recycling, Reporting and 
recordkeeping requirements.

40 CFR Part 266

    Environmental protection, Hazardous waste, Recycling, Reporting and 
recordkeeping requirements.

    Dated: May 3, 2001.
Christine Todd Whitman,
Administrator.

    For the reasons set forth in the preamble, parts 261 and 266 of 
Chapter I of title 40 of the Code of Federal Regulations are amended as 
follows:

PART 261--IDENTIFICATION AND LISTING OF HAZARDOUS WASTE

    1. The authority citation for part 261 continues to read as 
follows:

    Authority: 42 U.S.C. 6905, 6912(a), 6921, 6922, 6924(y) and 
6938.

Subpart A--General

    2. Section 261.6 is amended by revising paragraph (a)(2) 
introductory text and by adding paragraph (a)(2)(v) to read as follows:


Sec. 261.6  Requirements for recyclable materials.

    (a) * * *
    (2) The following recyclable materials are not subject to the 
requirements of this section but are regulated under subparts C through 
O of part 266 of this chapter and all applicable provisions in parts 
270 and 124 of this chapter:
* * * * *
    (v) U.S. Filter Recovery Services XL waste (subpart O).
* * * * *

PART 266--STANDARDS FOR THE MANAGEMENT OF SPECIFIC HAZARDOUS WASTES 
AND SPECIFIC TYPES OF HAZARDOUS WASTE MANAGEMENT FACILITIES

    1. The authority citation for part 266 continues to read as 
follows:

    Authority: 42 U.S.C. 6905, 6906, 6912, 6922-6925, 6934 and 6937.

    2. Part 266 is amended by adding a new subpart O to reads as 
follows:

Subpart O--Standards Applicable to U.S. Filter Recovery Services XL 
Waste and U.S. Filter Recovery Services, Inc.

Sec.
266.400  Purpose, scope, and applicability.
266.401  Definitions.
266.402  Procedures for adding persons as generators to EPA's USFRS 
XL Project.
266.403  Procedures for adding persons as transporters to EPA's 
USFRS XL Project.
266.404  USFRS requirements related to the development, use and 
content of USFRS XL Waste Training Module.
266.405  USFRS requirements relative to the development, use and 
content of USFRS XL Waste MSDS.
266.406  Waste characterization.
266.407  USFRS XL Waste Identification, handling, and Recycling.
266.408  Accumulation and storage prior to off-site transport.
266.409  USFRS XL waste transporter pre-transport requirements.
266.410  USFRS XL Waste Transport and Transportation Tracking 
Document.
266.411  Release of USFRS XL waste during transport.
266.412  USFRS XL Waste Generator Closure.
266.413  USFRS XL waste generator requirements to maintain alternate 
treatment or disposal capacity.
266.414  Termination of a USFRS XL waste approved customer's 
participation in the USFRS XL Project.
266.415  Termination of a USFRS XL waste generator's participation 
in the USFRS XL Project.
266.416  Termination of a USFRS XL waste approved transporter's 
participation in the USFRS XL Project.
266.417  Termination of a USFRS XL waste transporter's participation 
in the USFRS XL Project.
266.418  Termination of USFRS' participation in this XL Project.
266.419  USFRS Recordkeeping and reporting requirements.
266.420  USFRS XL waste generator recordkeeping and reporting 
requirement.
266.421  USFRS XL waste transporter recordkeeping and reporting 
requirement.
266.422  Effective Date and Duration of the project.


Sec. 266.400  Purpose, scope, and applicability.

    The purpose of this subpart is to implement the U.S. Filter 
Recovery Services (USFRS) eXcellence in Leadership (XL) Project. Any 
person who is a USFRS XL waste generator or transporter must handle the 
USFRS XL waste in accordance with the requirements contained within 
this subpart. The standards and requirements of this subpart also apply 
to USFRS and its facility located at 2430 Rose Place, Roseville, 
Minnesota. These requirements are imposed on USFRS in addition to any 
requirements contained in its RCRA hazardous waste permit or other 
applicable state or federal law. USFRS XL waste generators and 
transporters are not required to comply with the requirements of 40 CFR 
261.5, parts 262 through 266 (except this subpart O), parts 268, 270, 
273 and 279 provided they manage USFRS XL waste in compliance with the 
requirements of this subpart O.


Sec. 266.401  Definitions.

    County Environmental Agencies or County Agencies means the counties 
of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott or Washington in 
Minnesota.
    USFRS means U.S. Filter Recovery Services, Inc. whose principal 
place of business for the purposes of these rules is 2430 Rose Place, 
Roseville, Minnesota.
    USFRS XL Waste means one or more USFRS used water treatment resin 
canisters and their contents, any associated USFRS pre- or post-resin 
filters and their containers and their contents from a USFRS XL waste 
generator located within the State of Minnesota. USFRS XL waste 
includes the ion exchange resins, the associated pre- and post-resin 
filters, wastes contained on or within the ion exchange resins and 
filters and any other wastes contained within the water treatment resin 
canisters and filter containers. USFRS XL waste also includes spills of 
XL waste which are handled in accordance with the requirements in this 
subpart. This definition does not include wastes that were generated 
prior to the date a generator is added to this USFRS XL Project. USFRS 
XL waste shall be identified by the waste code XL001.
    USFRS XL Waste Application Form means the form approved by EPA and 
Minnesota Pollution Control Agency (MPCA) as part of the USFRS XL Waste 
Project or subsequently modified by USFRS and approved by EPA and MPCA 
and used for characterization of the chemical constituents of a 
person's USFRS XL waste. The USFRS XL Waste Application Form shall 
include all attachments by USFRS or the applicant, including but not 
limited to, the USFRS Site Engineering Form, Systems Engineering Form 
and any waste analysis.
    USFRS XL Waste Approved Customer means only those persons located 
in Minnesota who have properly identified their wastes and processes on 
the USFRS XL waste application form; have not been excluded by EPA, 
MPCA or the County Agencies from participation in

[[Page 28086]]

the USFRS XL waste project; have signed the USFRS XL waste Final 
Project Agreement (FPA); have certified that they have read and 
understand the USFRS XL waste training module; and have not generated 
USFRS XL wastes.
    USFRS XL waste approved transporter means a transporter located 
within the State of Minnesota who has a satisfactory safety rating from 
the United States Department of Transportation (USDOT) in the last 
year; has not been excluded by EPA, MPCA or the County Agencies from 
participation in the USFRS XL waste project; has signed the USFRS XL 
waste FPA; and has signed a certification that it has been trained by 
USFRS on the proper handling of USFRS XL wastes and understands its 
responsibilities under this subpart.
    USFRS XL Waste Facility or USFRS Facility means the U.S. Filter 
Recovery Service, Inc. operations located at 2430 Rose Place, 
Roseville, Minnesota.
    USFRS XL Waste Final Project Agreement (FPA) means the agreement 
signed by USFRS, EPA, MPCA, the counties of Anoka, Carver, Dakota, 
Hennepin, Ramsey, Scott and Washington in Minnesota, Pioneer Tank Lines 
and USFRS XL waste customers, generators and transporters. The FPA may 
be modified to add or delete participants, subject to the approval of 
EPA and MPCA. The FPA was signed by EPA, USFRS and MPCA on September 
21, 2000.
    USFRS XL Waste Generator means a USFRS XL waste approved customer 
who generates or generated USFRS XL waste.
    USFRS XL Waste Project, USFRS XL Project or XL Project means the 
program identified in the Final Project Agreement and this part for the 
generation, transportation and subsequent treatment, storage and 
disposal of USFRS XL waste.
    USFRS XL waste training module means the recorded training program 
approved by EPA and MPCA as part of the USFRS XL Waste Project or 
subsequently modified by USFRS and approved by EPA and MPCA and 
developed by USFRS for the purpose of informing USFRS XL waste approved 
customers, generators and transporters of the special requirements 
imposed on them by this part and the proper method of handling USFRS XL 
wastes.
    USFRS XL Waste Transportation Tracking Document means the 
Transportation Tracking Document developed by USFRS which was approved 
by EPA and the MPCA as part of the USFRS XL Waste Project or 
subsequently modified by USFRS and approved by EPA and MPCA; and used 
when USFRS XL waste is transported off-site from a generator.
    USFRS XL Waste Transporter means USFRS or a USFRS XL waste approved 
transporter who transports USFRS XL waste.


Sec. 266.402  Procedures for adding persons as generators to EPA's 
USFRS XL Project.

    (a) Any person who wishes to participate in the USFRS XL Project as 
a generator must obtain the approval of the EPA and the Minnesota 
Pollution Control Agency (MPCA). The approval of the County Agency is 
also required if that person will generate USFRS XL waste at a location 
in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott or 
Washington, Minnesota. The procedures identified in this subpart are to 
be followed to obtain EPA approval to add a person to the federal USFRS 
XL Project. USFRS and a proposed generator must also comply with the 
procedures identified by the MPCA, and appropriate County Agencies. A 
person may not be added to the federal USFRS XL Project unless it has 
the approval of EPA, MPCA and as appropriate the County Agencies.
    (b) USFRS is the only entity which may propose to add a person as a 
generator to the USFRS XL Project. USFRS may propose to EPA to add 
persons to the USFRS XL Project at any time provided, USFRS complies 
with the requirements of this section. Prior to being considered a 
USFRS XL waste generator, a person must first be approved as a USFRS XL 
waste approved customer. Only a USFRS XL waste approved customer may 
become a USFRS XL waste generator. A person becomes a USFRS XL waste 
generator after it first generates or causes USFRS XL waste to be 
regulated.
    (c) USFRS will conduct a preliminary evaluation of any person it 
wishes to propose to EPA to add to the USFRS XL Project as a generator. 
USFRS will complete this preliminary evaluation prior to proposing to 
EPA to add such a person to the USFRS XL Project. The preliminary 
evaluation will consist of the following activities: USFRS will require 
any person who wishes to become a USFRS XL waste generator to complete 
and sign the USFRS XL Waste Application Form; USFRS will complete the 
waste characterization required by 40 CFR 266.406(b); USFRS will 
evaluate the person's storage area for the USFRS XL waste to determine 
whether it meets the standards of this subpart O; and USFRS will 
provide the person with a copy of the USFRS XL waste MSDS, FPA and 
training module.
    (d) After successfully completing the activities identified in 
paragraph (c) of this section, USFRS will provide EPA with the name and 
such other information as the Agency may require to determine if a 
person may participate in the USFRS XL Project as a generator. USFRS 
will propose for inclusion into the USFRS XL Project only those 
person(s) whose wastes are compatible with the ion exchange resin 
process and canisters and whose storage area meets the standards in 
this subpart O. EPA's approval shall be effective within twenty one 
days of EPA's receipt of USFRS's written notice proposing to add a 
person to the USFRS XL Project unless EPA, within that time period, 
provides USFRS with a written notice rejecting such person.
    (e) After securing the approval of EPA, MPCA and the County 
Agencies, USFRS shall notify the person it proposed to add to the USFRS 
XL Project in writing that it is approved for participation in the 
USFRS XL Project. USFRS will assign to that person a unique client 
number and waste profile number for each waste stream approved for this 
XL project. USFRS will obtain from that person a copy of the signed 
USFRS XL waste FPA and a certification that it has read and agrees to 
follow the USFRS XL waste training module. USFRS shall also ensure that 
as part of this certification the approved customer identifies its 
contact person as required by 40 CFR 266.408(h). Upon request by EPA, 
USFRS will provide EPA with a copy of the signed documents or other 
documents it requests.
    (f) USFRS will accept USFRS XL waste only from those persons who 
have received the approval of EPA, MPCA and, as appropriate, the County 
Agencies and who have signed the USFRS XL Project FPA and the 
certification identified in paragraph (e) of this section. A person's 
participation in this USFRS XL Project is effective after EPA, MPCA 
and, as appropriate, the County Agency approve of them and on the date 
that USFRS receives the signed USFRS XL waste FPA and certification. At 
that time the person is a USFRS XL waste approved customer. A USFRS XL 
waste approved customer becomes a USFRS XL waste generator when it 
first generates or causes USFRS XL wastes to be regulated. A USFRS XL 
waste generator must handle all USFRS XL wastes generated after the 
effective date of it being added to the USFRS XL Project in accordance 
with the provisions of this subpart O. USFRS XL waste that is generated 
prior to this date is not subject to this subpart O and it must be 
handled according to the appropriate hazardous waste characterization 
for that waste, (e.g..

[[Page 28087]]

F006 and any other applicable waste code).
    (g) USFRS will require a USFRS XL waste approved customer and 
generator to update the USFRS XL waste application form prior to it 
adding to or modifying the waste streams or processes it identified on 
its initial USFRS XL waste application form. USFRS will notify EPA, 
MPCA and as appropriate, the County Agencies whenever a customer or 
generator notifies USFRS that it has or will add or modify waste 
streams or processes. EPA will notify USFRS if any further EPA 
approvals are required.


Sec. 266.403  Procedures for adding persons as transporters to EPA's 
USFRS XL Project.

    (a) Any person who wishes to participate in the USFRS XL Project as 
a transporter must obtain the approval of the EPA and the MPCA. The 
approval of the County Agencies is also required if that person's 
principal place of business is located in the counties of Anoka, 
Carver, Dakota, Hennepin, Ramsey, Scott or Washington. The procedures 
identified in this subpart are to be followed to obtain EPA approval to 
add a person as a transporter to the federal USFRS XL Project. USFRS 
and a proposed transporter must also comply with the procedures 
identified by the MPCA, and as appropriate the County Agencies. A 
person may not be added to the federal USFRS XL Project unless it has 
received the approval of EPA, MPCA and as appropriate the County 
Agencies.
    (b) USFRS is the only entity which may propose to EPA to add a 
person as a transporter to the USFRS XL Project.
    (c) USFRS and Pioneer Tank Lines are approved USFRS XL waste 
transporters. USFRS may propose to EPA to add other persons as USFRS XL 
waste transporters provided USFRS complies with the requirements of 
this section. USFRS will conduct a preliminary evaluation of any person 
who it proposes to add as a USFRS XL waste transporter. As part of that 
preliminary evaluation USFRS will ascertain whether the transporter has 
a valid EPA identification number, a valid Minnesota hazardous 
materials registration (``Minnesota registration'') and a satisfactory 
safety rating from USDOT within the last year.
    (d) After successfully completing the activities identified in 
paragraph (c) in this section USFRS will provide EPA with the name of 
the transporter, the unique USFRS client identification number for the 
transporter, the results of its preliminary evaluation identified in 
paragraph (c) and other information as EPA may require to determine if 
that person may participate in the USFRS XL Project. USFRS will propose 
for inclusion into the USFRS XL Project only those person(s) who have a 
satisfactory safety rating from USDOT. EPA's approval shall be 
effective within twenty one days of its receipt of USFRS's written 
notice proposing to add a person to the USFRS XL Project unless EPA, 
within that time period, provides USFRS with a written notice rejecting 
such person.
    (e) After receiving the approval of EPA, MPCA and as appropriate 
the County Agencies USFRS shall notify the person in writing that it is 
approved for participation in the USFRS XL Project. USFRS will obtain 
from that person a copy of the signed USFRS XL waste FPA and a 
certification that it has been trained by USFRS on the proper handling 
of USFRS XL wastes and understands its responsibilities under this 
subpart O.
    (f) USFRS will allow only USFRS XL approved transporters to 
transport USFRS XL wastes. A person's participation in this USFRS XL 
Project is effective after it receives the approval of EPA, MPCA and 
the County Agencies, as appropriate, and on the date that USFRS 
receives the signed USFRS XL waste FPA and certification. A USFRS XL 
waste approved transporter becomes a USFRS XL waste transporter when it 
first transports or accepts for transport USFRS XL waste.
    (g) USFRS will require a USFRS XL waste approved transporter or 
USFRS XL waste transporter to notify it of any change in its rating 
from USDOT, its Minnesota registration or its EPA identification 
number. USFRS will notify EPA, MPCA and, the appropriate County 
Agencies in writing of any such changes. EPA will notify USFRS in 
writing of any additional information or steps that may be required as 
a result of such changes.


Sec. 266.404  USFRS requirements related to the development, use and 
content of USFRS XL Waste Training Module.

    (a) USFRS will develop, implement and maintain a USFRS XL Waste 
Training Module. USFRS will provide this training module to every 
person who applies for participation in the USFRS XL Project. USFRS may 
use any recorded communication media that is appropriate for 
communicating the requirements of this subpart (e.g., printed 
brochures, videos, etc.).
    (b) The Training Module will, at a minimum, identify the hazards 
presented by the USFRS XL waste: for generators, explain how to handle 
the installation and replacement of the ion exchange resin canisters 
and the pre-and post-resin filters; and explain the requirements 
imposed on the generator or transporter pursuant to this part.
    (c) USFRS shall submit this training module to EPA for approval 
prior to accepting the first shipment of USFRS XL wastes.


Sec. 266.405  USFRS requirements relative to the development, use and 
content of USFRS XL Waste MSDS.

    USFRS will develop a USFRS XL waste material safety data sheet 
(MSDS) or similar document which meets the requirements of this 
subpart. USFRS will provide a copy of the USFRS XL waste MSDS to every 
person who applies for participation in the USFRS XL Project. USFRS 
will ensure that the USFRS XL waste MSDS prominently instructs 
individuals in the proper handling and emergency response procedures 
for spills or leaks of the USFRS XL wastes.


Sec. 266.406  Waste characterization.

    (a) Submission of USFRS XL Waste Application Form by USFRS XL Waste 
Generator. A person who proposes to participate in the USFRS XL Project 
as a generator of USFRS XL wastes must properly identify the wastes and 
processes which contribute to the production of the USFRS XL waste at 
its company. For the purposes of this subpart O it shall identify only 
those waste streams which meet the F006 listing and shall identify them 
on the USFRS XL waste application form. It shall complete and submit to 
USFRS the USFRS XL Waste Application Form. It shall update and submit 
to USFRS the XL Waste Application prior to changing any process which 
contributes to the USFRS XL waste it generates.
    (b) USFRS Waste Profile Analyses. For any person which USFRS 
proposes to add to the USFRS XL Project as a generator, USFRS will 
perform a waste profile analysis of the waste stream(s) and process(es) 
which will contribute to the USFRS XL waste at that company. USFRS will 
update such analyses whenever a USFRS XL waste generator notifies USFRS 
of a change or modification to its waste stream or process contributing 
to its USFRS XL waste. USFRS will include in the waste profile analysis 
a complete chemical analysis of the waste stream(s) and a determination 
of its compatibility with the ion exchange resin process, canisters and 
filters. USFRS shall complete such analysis in accordance with the 
testing methods identified in the waste analysis plan contained within 
its RCRA hazardous waste permit. USFRS shall assign to each generator a 
unique

[[Page 28088]]

customer identification number and waste profile number.


Sec. 266.407  USFRS XL waste identification, handling, and recycling.

    (a) USFRS XL waste will be denoted by the hazard waste code XL001 
while it is handled by the USFRS XL waste generator or transporter. At 
the USFRS facility, the USFRS XL waste will be denoted by the waste 
code(s) it would have had at the generator but for its characterization 
as USFRS XL waste (i.e., F006 and any other applicable characteristic 
waste code). USFRS and others who may receive residuals from the USFRS 
XL waste will handle the USFRS XL waste and residuals according to the 
wastes code(s) it would have had at the generator (i.e., F006 and the 
appropriate characteristic hazardous waste code) and not according to 
the XL001 designation. USFRS shall handle the USFRS XL waste at its 
facility in accordance with its State issued RCRA hazardous waste 
permit and any applicable federal requirements.
    (b) USFRS may not accept any customers into this Project unless and 
until it has arranged for recycling of the metals contained in the 
XL001 wastes it receives. USFRS shall continue to recycle the metals 
contained in the XL001 waste it receives throughout the duration of the 
XL Project.
    (c) USFRS shall identify a spill response coordinator at its 
facility. This person shall be responsible for coordinating the proper 
response to any spill, leaks or emergencies of USFRS XL wastes at the 
generator or during transport. He will also be responsible for 
receiving the calls from the generators and transporters required by 
this subpart O for such spills, leaks or emergencies.


Sec. 266.408  Accumulation and storage prior to off-site transport.

    A USFRS waste generator may store its USFRS XL waste on-site for 
less than 90 days, provided it complies with the following:
    (a) Condition and use of containers. Except as provided in 
paragraph (e) of this section, the USFRS waste generator it will store 
the USFRS XL waste in the USFRS water treatment resin canisters and 
filter containers. At the time it places the resin canister or filter 
containers in storage it will ensure that the water treatment resin 
canisters and filter containers are disconnected from any processes and 
are sealed. It will ensure that the USFRS XL wastes are not mixed with 
other solid wastes. It will affix to the resin canisters and filter 
containers a warning statement containing the information presented in 
paragraph (c) of this section.
    (b) Condition of storage area. It will store the USFRS XL waste on 
an impervious surface. The USFRS waste generator will store the USFRS 
XL waste separately from other wastes or materials and will ensure that 
there is adequate aisle space to determine the condition of the USFRS 
XL waste and to notice and respond to any leaks of USFRS XL waste.
    (c) Pre-transport requirements. It will place the following warning 
statement prominently on the USFRS XL waste: XL001 wastes-USFRS ion 
exchange resin process wastes--Federal Law Prohibits Improper Disposal. 
This is USFRS XL waste from (insert XL waste generator's name). Handle 
as a hazardous waste and ship only to USFRS located at 2430 Rose Place, 
Roseville, MN. This waste was placed in this container on (date) and 
placed in storage at (insert USFRS XL waste generator's name) on 
(insert date). If found, contact USFRS and the nearest police, public 
safety authority, EPA or MPCA. The USFRS telephone number is (insert 
phone number). USFRS Transportation Tracking Document Number_____ If 
spilled immediately contain the spill and prevent it from going into 
any water body; collect the spilled material and place in an 
appropriately sized polycontainer; contact USFRS and the nearest 
police, public safety authority, EPA or MPCA.
    (d) Inspections. The USFRS waste generator will inspect the 
condition of the USFRS XL waste weekly while it is in storage at its 
company. It will maintain a log of these inspections. The log will 
indicate the date the USFRS XL waste was placed in storage, the 
condition of the water treatment resin canister and filter containers 
at that time, the date(s) of the inspection, the person conducting the 
inspection, and the condition of the water treatment resin canisters 
and the filter containers and the storage area at the time of the 
inspection.
    (e) Response to spills or leaks. The USFRS waste generator will 
immediately contain and collect any spill or leak of USFRS XL wastes. 
It will orally notify USFRS, and the duty officer at MPCA (Non-metro: 
1-800-422-0798; Metro: 651-649-5451) within 24 hours of discovery of 
the spill or leak. It will place any spilled or leaked materials in an 
appropriately sized polycontainer and comply with the requirements of 
paragraphs (a) through (c) of this section. It will arrange with USFRS 
for the disposal of that spilled or leaked material with the next 
shipment of USFRS XL wastes from its company. If allowed by the local 
POTW it may discharge any leaked or spilled water to its permitted 
drainage system. Otherwise, such wasters will be sent to USFRS.
    (f) Decontamination of storage area. The USFRS waste generator will 
decontaminate all areas, equipment or soils used for or contaminated 
with USFRS XL waste no later than the dates provided in section 
Secs. 266.412, 266.414 and 266.415.
    (g) USFRS XL Waste MSDS. It shall maintain and exhibit in a 
prominent location the USFRS XL Waste MSDS. It shall provide a copy of 
the USFRS XL waste MSDS to all local entities responsible for 
responding to releases of hazardous materials or wastes, (e.g., local 
police and fire departments, hospitals, etc.). It shall retain 
documentation of its efforts to comply with this paragraph (g).
    (h) Contact person. No later than the date that it signs the FPA it 
will designate to USFRS a person who is responsible for handling its 
USFRS XL waste and its compliance with this subpart. That person shall 
complete training for the proper handling of USFRS XL waste and shall 
certify that he has read and understands the requirements imposed by 
this subpart O and the USFRS XL waste training module. That person 
shall also be responsible for responding to spills or leaks at the 
generator.
    (i) Communication devices. It shall have an operating communication 
device (e.g., telephone, alarm, etc.) which allows the contact person 
to notify the appropriate state, local and federal officials and local 
hospitals and company personnel in case of an emergency.


Sec. 266.409  USFRS XL waste transporter pre-transport requirements.

    A USFRS XL waste transporter will ensure that the USFRS XL waste is 
within an approved container which prominently displays the following 
warning statement: XL001 wastes--USFRS ion exchange resin process 
wastes--Federal Law Prohibits Improper Disposal. This is USFRS XL waste 
from (insert XL waste generator's name). Handle as a hazardous waste 
and ship only to USFRS located at 2430 Rose Place, Roseville, MN. This 
waste was placed in this container on (date) and placed in storage at 
(insert USFRS XL waste generator's name) on (insert date). If found, 
contact USFRS and the nearest police, public safety authority, MPCA or 
EPA. The USFRS telephone number is (insert phone number). USFRS 
Transportation Tracking Document Number__________. If spilled

[[Page 28089]]

immediately contain the spill and prevent it from going into any water 
body; collect the spilled material and place in an appropriately sized 
polycontainer; contact USFRS and the nearest police, public safety 
authority, EPA or MPCA.


Sec. 266.410  USFRS XL Waste Transport and Transportation Tracking 
Document.

    A USFRS XL Transportation Tracking Document and USFRS XL Waste MSDS 
will accompany every shipment of USFRS XL waste from a USFRS XL waste 
generator off-site. Each resin canister and filter container will have 
the warning statement required by Secs. 266.408(c) and 266.409 affixed 
to it. USFRS, and the USFRS XL waste generator and transporter shall 
comply with the following requirements:
    (a) USFRS. USFRS will require each USFRS XL waste generator to 
contact USFRS to arrange for the transportation of the USFRS XL waste. 
USFRS will contact and use only USFRS XL waste transporters to 
transport the USFRS XL waste. USFRS will require that the USFRS XL 
waste transporter pick up the generator's USFRS XL waste prior to the 
expiration of the storage time limit provided to the generator pursuant 
to Sec. 266.408. USFRS will complete and send to the USFRS XL waste 
generator the USFRS XL waste Transportation Tracking Document and 
warning statement identified in Secs. 266.408(c) and 266.409. USFRS 
will ensure that the generator receives these documents by the time the 
transporter arrives at the generator. USFRS will include on the 
Transportation Tracking Document all information EPA determines is 
required to comply with this subpart O. USFRS will direct the USFRS XL 
waste transporter to ship the USFRS XL waste to its facility at 2430 
Rose Place, Roseville, Minnesota within 30 days of its pick-up from a 
USFRS XL waste generator. If a shipment is not received within 30 days, 
USFRS will contact the transporter to determine the disposition of the 
load. If USFRS does not receive the shipment within 5 days of its 
scheduled arrival date, it will notify EPA, MPCA, the USFRS XL 
generator and as appropriate the County Agencies. USFRS will send a 
copy of the Transportation Tracking Document to the USFRS XL waste 
generator within 10 days of USFRS' receipt of the XL001 waste from the 
transporter.
    (b) USFRS XL waste generators. A USFRS XL waste generator must 
contact USFRS for the off-site transport, treatment, storage or 
disposal of USFRS XL wastes. A USFRS waste generator will use only a 
USFRS XL waste transporter to transport the USFRS XL waste to the USFRS 
Roseville, Minnesota facility located at 2430 Rose Place. It must 
verify the accuracy of the USFRS XL Waste Transportation Tracking 
Document and warning statement, make any corrections to them that are 
necessary and sign the Transportation Tracking Document. It must affix 
the warning statement to each resin canister and filter container and 
provide a copy of the USFRS XL Waste Transportation Tracking Document 
and USFRS XL waste MSDS to the USFRS XL waste transporter at the time 
it provides the transporter with the USFRS XL waste.
    (c) USFRS XL waste transporter. A USFRS XL waste transporter shall 
verify the accuracy of the information contained on the USFRS XL Waste 
Transportation Tracking Document and on the warning statement. It shall 
sign and date the USFRS Transportation Tracking Document for each 
shipment of USFRS XL waste it transports and carry it with each 
shipment that it carries. It shall carry the USFRS XL waste MSDS with 
each shipment. It shall pick up each shipment of USFRS XL waste prior 
to the expiration of the storage time limit provided the generator 
pursuant to Sec. 266.408. It shall deliver each shipment of USFRS XL 
waste to the USFRS Roseville, Minnesota facility located at 2430 Rose 
Place within 30 days of it being picked-up at a USFRS XL waste 
generator. A USFRS transporter may store USFRS XL waste for no more 
than 10 days at a transfer facility without being subject to regulation 
under 40 CFR parts 264, 265, 268 and 270 for the storage of those 
wastes.


Sec. 266.411  Releases of USFRS XL waste during transport.

    In the event of a release of USFRS XL waste during transportation, 
a USFRS XL waste transporter must take appropriate immediate action to 
protect human health and the environment, including preventing the 
spilled material from entering a water system or a water body. The 
USFRS XL waste transporter also must comply with the provisions of 40 
CFR 263.31. The USFRS XL waste transporter will contact USFRS and the 
nearest police, public safety authority, EPA or MPCA, provide any 
emergency responder with a copy of the USFRS XL waste MSDS, handle the 
spilled material in accordance with the USFRS XL waste MSDS and the 
direction of any governmental entity charged with emergency response 
authority and transport any spilled USFRS XL waste and contaminated 
soils or equipment to the USFRS facility located at 2430 Rose Place, 
Roseville, Minnesota in a appropriately sized polycontainer.


Sec. 266.412  USFRS XL waste generator closure.

    (a) Generator responsibilities. At the time of termination of a 
USFRS XL generator's participation in the USFRS XL Project, the USFRS 
XL waste generator will disconnect its process(es) from the water 
treatment resin canisters and filter containers; implement the 
alternative treatment or disposal required by Sec. 266.413; arrange for 
the transport to USFRS of all USFRS XL waste that it has in storage; 
decontaminate any contamination resulting from the storage or handling 
of USFRS XL waste; and document its efforts to comply with this closure 
requirement.
    (b) USFRS responsibilities. Prior to termination of a USFRS XL 
waste generator's participation in the USFRS XL Waste Project USFRS 
will remove all of the USFRS XL waste in the generator's storage area. 
USFRS will inspect the USFRS XL waste generator to determine if all 
USFRS XL wastes have been removed and to document the condition of the 
USFRS XL waste storage area. USFRS will provide a written summary to 
the customer, EPA, MPCA and as appropriate the County Agencies of its 
evaluation pursuant to this paragraph (b).


Sec. 266.413  USFRS XL waste generator requirements to maintain 
alternate treatment or disposal capacity.

    During the period that it is participating in the USFRS XL waste 
Project, a USFRS XL waste generator shall maintain the ability to 
legally treat or dispose of its process wastes contributing to the 
USFRS XL waste by methods other than through transportation and 
treatment to USFRS' Roseville, Minnesota facility. A USFRS XL waste 
generator may use this alternative treatment or disposal method only 
after its participation in this XL Project has been terminated.


Sec. 266.414  Termination of a USFRS XL waste approved customer's 
participation in the USFRS XL Project.

    The provisions in this section apply to a USFRS XL waste approved 
customer who has not yet generated USFRS XL waste. If a USFRS XL waste 
approved customer has generated or first caused to be regulated USFRS 
XL waste, then it is a USFRS XL waste generator and must comply with 
the termination provisions contained in Sec. 266.415. The following 
procedures are to be followed to terminate a person's participation in 
the federal USFRS XL Project. MPCA or the County Agencies

[[Page 28090]]

may have their own procedures for terminating the participation of a 
person from their version of this federal USFRS XL Project. EPA is not 
bound by and will not follow those State or County procedures to 
terminate a person's continued participation in this USFRS XL Project. 
A USFRS waste approved customer's participation in the USFRS XL Project 
will terminate when the USFRS XL Project ends. It may terminate earlier 
either voluntarily, upon changes in ownership, upon notice by USFRS, 
EPA, MPCA or the appropriate County Agency.
    (a) Termination by the USFRS XL waste approved customer. A USFRS XL 
waste approved customer may terminate its participation in the USFRS XL 
Project at any time prior to its first generating USFRS XL wastes. The 
USFRS XL waste approved customer will provide 5 days written notice to 
USFRS, EPA, MPCA and as appropriate the County Agencies its desire to 
terminate its in the USFRS XL Project. No further action is required by 
such USFRS XL waste approved customer.
    (b) Change in ownership. A USFRS XL waste approved customer's 
participation will be automatically terminated upon a change in 
ownership. A USFRS XL waste approved customer must notify USFRS, EPA, 
MPCA and as appropriate the County Agencies within 5 days of a change 
in its ownership.
    (c) Termination by EPA, MPCA, County Agency or USFRS. If EPA or 
USFRS propose to terminate a USFRS XL waste approved customer they 
shall provide it with 5 days written notice. If MPCA or the County 
Agency propose to terminate such person they shall follow their own 
procedures and provide EPA and USFRS with the results of such 
proceedings. If MPCA or the County Agency terminates such person's 
participation in the federal USFRS XL Project, such person will be 
automatically terminated without further proceedings under this subpart 
O.


Sec. 266.415  Termination of a USFRS XL waste generator's participation 
in the USFRS XL Project.

    The procedures identified in this section are to be followed to 
terminate a waste generator's participation in the federal USFRS XL 
Project. MPCA or the County Agencies may have their own procedures for 
terminating the participation of a person from their version of this 
federal USFRS XL Project. EPA is not bound by and will not follow those 
State or County procedures to terminate a person's continued 
participation in this USFRS XL Project. A USFRS waste generator's 
participation in the USFRS XL Project may terminate when the USFRS XL 
Project ends. It may also terminate either voluntarily, upon changes in 
ownership, upon notice by USFRS, EPA, MPCA or the County Agency or at 
the termination of this subpart O.
    (a) Termination by the USFRS XL waste generator. The USFRS XL waste 
generator will provide 60 days written notice to USFRS, EPA, MPCA and 
the County Agencies of its desire to discontinue participation in the 
USFRS XL Project. Within the 60 days the USFRS XL waste generator shall 
accomplish the closure required by Sec. 266.412.
    (b) Termination by EPA, MPCA or the County Agency. EPA, MPCA or the 
County Agency may terminate a USFRS XL waste generator's participation. 
If EPA proposes to terminate such person's participation then it will 
provide the generator with written notice. EPA retains the right to 
terminate a USFRS XL waste generator's participation in the USFRS XL 
Project if the USFRS XL waste generator is in non-compliance with the 
requirements of this subpart. In the event of termination by EPA, EPA 
will provide USFRS, the USFRS XL waste generator, MPCA, and as 
appropriate the County Agencies with 15 days written notice of its 
intent to terminate a generator's continued participation in the USFRS 
XL Project. During this period, which commences on receipt of the 
notice to terminate by the generator, the generator will have the 
opportunity to come back into compliance or to provide a written 
explanation as to why it was not in compliance and how it intends to 
return to compliance. If, upon review of the written explanation EPA 
re-issues a written notice terminating the generator from this XL 
Project the generator shall close in accordance with Sec. 266.412. The 
USFRS XL waste generator shall complete the closure and comply with 
Sec. 266.412 within sixty days of EPA's re-issuance of the notice of 
termination. If MPCA or the County Agency propose to terminate such 
person they shall follow their own procedures and provide EPA and USFRS 
with the results of such proceedings. If MPCA or the County Agency 
terminates such person's participation in the federal USFRS XL Project, 
that person's participation will be automatically terminated without 
further proceedings under this subpart and such person must comply with 
the closure requirements contained in Sec. 266.412.
    (c) Termination by USFRS. USFRS may terminate a USFRS XL waste 
generator's participation in the USFRS XL Project only after providing 
60 days written notice to the generator, EPA, MPCA and the county 
agency. Within this time USFRS will arrange for the transport to its 
facility of the USFRS XL waste in storage. Additionally, USFRS will 
inspect the USFRS XL waste generator in accordance with 
Sec. 266.412(b).
    (d) Termination as a result of changes in ownership. A USFRS XL 
waste generator will provide written notice to USFRS, EPA, MPCA and as 
appropriate the County Agencies of a change in its ownership. It will 
provide such notice within 10 days of the change in ownership. Within 
the 60 days of the change in ownership the USFRS XL waste generator 
shall accomplish the closure required by Sec. 266.412 unless, within 
that time period, EPA has approved of the new owner and EPA has 
approved of any modifications the new owner proposes to the prior 
owner's closure responsibilities. If these approvals are not received 
within this time period the prior owner is still responsible for 
completing the closure within the 60 days.


Sec. 266.416  Termination of a USFRS XL waste approved transporter's 
participation in the USFRS XL Project.

    The provisions in this section apply to a USFRS XL waste approved 
transporter who has not transported or accepted for transport USFRS XL 
waste. If a USFRS XL waste approved transporter has transported or 
accepted for transport USFRS XL waste it is a USFRS XL waste 
transporter and must comply with the termination provisions contained 
in Sec. 266.417. The procedures identified in this section are to be 
followed to terminate a person's participation in the federal USFRS XL 
Project. MPCA or the County Agencies may have their own procedures for 
terminating the participation of a person from their version of this 
federal USFRS XL Project. EPA is not bound by and will not follow those 
State or County procedures to terminate a person's continued 
participation in this USFRS XL Project. A USFRS waste approved 
transporter's participation in the USFRS XL Project will terminate when 
the USFRS XL Project ends. It may also terminate earlier either 
voluntarily, upon changes in ownership, upon notice by USFRS, EPA, MPCA 
or the County Agency.
    (a) Termination by the USFRS XL waste approved transporter. A USFRS 
XL waste approved transporter may terminate its participation in the 
USFRS XL Project at any time prior to its first transporting or 
accepting for transport USFRS XL wastes. The USFRS XL waste approved 
transporter will provide 5

[[Page 28091]]

days written notice to USFRS, EPA, MPCA, and as appropriate the County 
Agencies of its desire to terminate its participation in the USFRS XL 
Project. No further action is required by such USFRS XL waste approved 
transporter.
    (b) Change in ownership. A USFRS XL waste approved transporter will 
be automatically terminated upon a change in ownership. A USFRS XL 
waste approved transporter must notify USFRS, EPA, MPCA and as 
appropriate the County Agencies within 5 days of a change in its 
ownership.
    (c) Termination by EPA, MPCA, the County Agencies or USFRS. EPA, 
MPCA, the County Agencies and USFRS may also terminate a USFRS XL waste 
approved transporter's participation in the USFRS XL. If EPA or USFRS 
propose such termination they will provide the transporter, each other, 
MPCA and the appropriate County Agencies with 5 days written notice.


Sec. 266.417  Termination of a USFRS XL waste transporter's 
participation in the USFRS XL Project.

    The procedures identified in this section are to be followed to 
terminate a person's participation in the federal USFRS XL Project. 
MPCA or the County Agencies may have their own procedures for 
terminating the participation of a person from their version of this 
federal USFRS XL Project. EPA is not bound by and will not follow those 
State or County procedures to terminate a person's continued 
participation in this USFRS XL Project. A USFRS waste transporter's 
participation in the USFRS XL Project will terminate when the USFRS XL 
Project ends. It may terminate earlier either voluntarily, upon a 
change in ownership of the transporter, upon notice by USFRS, EPA, MPCA 
or the County Agencies or at the termination of this subpart O.
    (a) Termination by the USFRS XL waste transporter--voluntary and 
changes in ownership. The USFRS XL waste transporter will provide 10 
days written notice to USFRS, EPA, MPCA and as appropriate the County 
Agencies of its desire to terminate its participation in the USFRS XL 
Project or of a change in ownership. Within 30 days of that notice the 
USFRS XL waste transporter will ensure that all of its shipments of 
USFRS XL waste are delivered to the USFRS facility.
    (b) Termination by EPA, MPCA or the County Agencies. EPA, MPCA or 
the County Agencies may terminate a USFRS XL waste transporter's 
participation in the USFRS XL Project. If MPCA or the County Agency 
propose to terminate such person they shall follow their own procedures 
and provide EPA and USFRS with the results of such proceedings. If MPCA 
or the County Agency does terminate such person's participation, such 
person's participation in the federal USFRS XL Project will be 
automatically terminated without further proceedings under this subpart 
and the transporter shall ensure that all shipments of XL waste are 
delivered to the USFRS facility within 30 days of notice of 
termination. If EPA proposes to terminate a transporter's participation 
in the USFRS XL Project EPA will provide such person, MPCA, the County 
Agency and USFRS with a 30 days written notice prior to terminating 
such person's participation in the USFRS XL Project. EPA retains the 
right to terminate a USFRS XL waste transporters participation in the 
USFRS XL Project if the USFRS XL waste transporter is not in compliance 
with the requirements of this subpart O. During this period, which 
commences on receipt of the notice by the transporter, the USFRS XL 
waste transporter will have the opportunity to come back into 
compliance or to provide a written explanation as to why it was not in 
compliance and how it intends to return to compliance. If, upon review 
of the written explanation EPA re-issues a written notice terminating 
the USFRS XL waste transporter from this XL Project the USFRS XL waste 
transporter shall ensure that all shipments of USFRS XL waste are 
delivered to the USFRS facility within 30 days of such re-issued 
notice.
    (c) Termination by USFRS. USFRS may terminate a USFRS XL waste 
transporter's participation in the USFRS XL Project only after 
providing 30 days written notice to the transporter, EPA, MPCA and as 
appropriate the County Agencies. Within this time USFRS will arrange 
for the transport to its facility of the USFRS XL waste in the 
possession of the USFRS XL waste transporter.
    (d) Change in ownership. A USFRS XL waste transporter will be 
automatically terminated upon a change in ownership. A USFRS XL waste 
transporter must notify USFRS, EPA, the County Agencies and MPCA within 
5 days of a change in its ownership. Within 30 days of its notice of 
change of ownership the USFRS XL waste transporter shall ensure that 
all shipments of USFRS XL waste in its possession are delivered to the 
USFRS facility.


Sec. 266.418  Termination of USFRS' participation in this XL Project.

    The procedures identified in this section are to be followed to 
terminate USFRS' participation in the federal USFRS XL Project. MPCA or 
the County Agencies may have their own procedures for terminating 
USFRS' participation from their version of this federal USFRS XL 
Project. EPA is not bound by and will not follow those State or County 
procedures to terminate USFRS' continued participation in this USFRS XL 
Project. USFRS' participation in the USFRS XL Project will terminate 
when the USFRS XL project ends. It may terminate earlier either 
voluntarily, upon a change in ownership of USFRS, upon notice of EPA, 
MPCA or as appropriate the County Agency. The USFRS XL Waste Project is 
terminated if USFRS' participation is terminated, unless there is a 
change in ownership of USFRS and EPA, MPCA and the County Agencies have 
approved the new owner's continuation in the USFRS XL project as 
provided in paragraph (b) of this section. In such an instance USFRS 
must supply EPA, MPCA and the County Agencies with a proposed schedule 
for transitioning all USFRS XL Project participants to compliance with 
the RCRA requirements within 120 days of a notice to terminate pursuant 
to this section.
    (a) USFRS' termination of its participation in this XL Project--
voluntary termination. USFRS will provide written notice to all USFRS 
XL Project participants (e.g., USFRS XL waste approved customers and 
approved transporters, USFRS XL waste generators and transporters), 
EPA, MPCA and the County Agencies of its desire to terminate its 
participation in the USFRS XL Project (``voluntary termination'') USFRS 
will provide its notice of voluntary termination 120 days prior to the 
date it proposes to terminate this XL Project. Within this 120 days 
USFRS will arrange for the transition of it and the USFRS XL waste 
Project participants to return to compliance with the RCRA 
requirements. During this time all USFRS XL Project participants will 
complete all closure activities required by Sec. 266.412.
    (b) Termination as a result in a change of ownership of USFRS. 
USFRS will provide written notice to EPA, MPCA and the County Agencies 
of any change in ownership of USFRS. USFRS will provide this notice 90 
days prior to a change in ownership. At that time, if the new owner 
wishes to continue the USFRS XL waste Project it will submit any 
revisions it proposes to make to the FPA to add itself to the USFRS XL 
waste project. If EPA and the new owner are able to agree upon and sign 
the proposed revisions to the FPA within that time frame then the new 
owner may continue the USFRS XL Project. If an

[[Page 28092]]

agreement and signature is not obtained within that time frame, the 
USFRS XL Project will be terminated. If it does not obtain that 
approval or does not wish to continue the USFRS XL Project then USFRS 
will arrange for the transition of all USFRS XL waste Project 
participants to return to compliance with the RCRA requirements within 
120 days of the change in ownership. All USFRS XL waste Project 
participants will complete all closure activities required by 
Sec. 266.412.
    (c) EPA or MPCA termination of the USFRS XL Project. EPA or MPCA 
may terminate this XL Project after providing written notice to USFRS. 
EPA retains the right to terminate this XL Project if:
    (1) USFRS is in non-compliance with the requirements of this 
subpart;
    (2) This Project does not provide superior environmental benefit; 
or,
    (3) If there is repeated non-compliance by USFRS XL waste 
generators or transporters.
    (d) In the event of termination by EPA, EPA will provide USFRS, 
MPCA and the County Agencies with 30 days written notice of its intent 
to terminate this XL Project. During this period, which commences on 
receipt of the notice by USFRS, USFRS will have the opportunity to come 
back into compliance, to provide a written explanation as to why it was 
not in compliance and how it intends to return to compliance or 
otherwise respond to the reasons for EPA's proposed termination. If, 
upon review of the written explanation EPA re-issues a written notice 
terminating this XL Project then USFRS shall submit to EPA within 30 
days of its receipt of the re-issued notice its plan for transitioning 
all USFRS XL waste Project participants to compliance with the RCRA 
requirements. This transition plan shall contain a proposed schedule 
which accomplishes compliance with RCRA within 120 days of EPA's re-
issued written notice.


Sec. 266.419  USFRS recordkeeping and reporting requirements.

    (a) Annual reporting. USFRS will provide an annual report, on 
October 1, on all USFRS XL wastes. It will provide the information 
separately for each USFRS XL waste generator. The annual report, at a 
minimum, will include:
    (1) An identification of each USFRS XL waste generator who sent 
USFRS XL wastes to USFRS; the quantity of XL waste that USFRS received 
from each USFRS XL waste generator during the calendar year and a 
certification by USFRS that those USFRS XL wastes were treated and 
recycled at USFRS in accordance with this subpart O;
    (2) The amount of water recycled by the generators, the 
pretreatment chemicals and energy the generators did not use as a 
result of participating in this USFRS XL Project, the amount of water 
discharged to the local POTW before and during this project, the amount 
of sludge recovered by USFRS before and during this project, the amount 
of sludge recovered as opposed to disposed of by a generator (if the 
generator disposed of the sludge prior to participating in this 
project), the quantity of material (ion exchange resins, filters, other 
wastewater treatment sludge, residues) collected from each facility 
(monthly), the frequency of resin canister and filter replacement in 
terms of process volume, the constituents in the material (ion exchange 
resins, filters, other wastewater treatment sludge, residues) collected 
at each facility (e.g., recoverable metals, contaminants/non-
recoverable materials); and constituents in the material (ion exchange 
resins, filters, other wastewater treatment sludge, residues) disposed 
by each facility (e.g., contaminants/non-recoverable material).
    (3) Quantity of material (ion exchange resins, filters, other 
wastewater treatment sludge, residues) to be processed from the XL 
waste at the USFRS Roseville facility, quantity of the metals recovered 
from the XL waste at the USFRS Roseville facility, the constituents of 
the recovered material (ion exchange resins, filters, other wastewater 
treatment sludge, residues from the XL waste), quantity and 
constituents of the non-recoverable material from the XL waste (ion 
exchange resins, filters, other wastewater treatment sludge, residues), 
and how it was disposed of; and
    (4) The quantity of each metal recovered at each metals reclamation 
facility it uses for this Project.
    (b) Quarterly reporting. USFRS will submit a quarterly report to 
EPA, MPCA and the County Agencies on October 1, January 1, April 1 and 
July 1 which will include:
    (1) Sufficient information for EPA to determine the amount of 
superior environmental benefit resulting from this project. That report 
will, at a minimum, contain information which includes, but is not 
limited to: the volume of water and waste collected and recycled; the 
amount of metals recycled; the volume of recycled material sold to 
others; data regarding the management of the ion exchange canisters and 
filter containers; the constituents of the sludge; and information 
regarding how the sludge and residues are managed;
    (2) Financial information related to the costs and savings realized 
as a result of implementation of this project.
    (i) USFRS will collect baseline and XL costs. The baseline costs 
shall be calculated using two scenarios:
    (A) Typical expenses (including any hazardous waste taxes) of the 
generator (prior to the XL Project) for pretreating and disposing 
effluent wastewater under the applicable Clean Water Act requirements 
and the costs for manifesting, transporting and disposing of F006 
sludges; and
    (B) Typical expenses of the generator that would be incurred if 
waste were recycled in compliance with RCRA and requirements for 
manifesting and transportation of those hazardous wastes (including tax 
obligations under both scenarios).
    (ii) The XL costs will include the costs to the generator for 
completing the Transportation Tracking Document, the transportation 
costs for XL wastes, the generator's cost to install the ion exchange 
canisters and filter containers, any other costs the generator incurs 
such as cleaning up any spills, payment of hazardous waste taxes, etc., 
the cost to USFRS of metals reclamation off-site (including costs 
associated with transportation or disposal). USFRS will compare the 
baseline costs to the XL costs and provide an analysis of whether the 
project is resulting in cost savings for generators and which aspects 
of the XL Project produce any savings. USFRS will also submit any of 
the information required in paragraphs (b)(2)(i)(A) and (B) of this 
section upon request by EPA, MPCA or the County Agency;
    (3) A list of all USFRS XL Waste Approved Customers and Generators. 
USFRS shall include on that list the customer and generator's name, a 
summary of the results of the USFRS waste characterization of the 
customer and generator's waste stream(s) and process(es), the 
customer's and generator's process waste streams approved for 
participation in the USFRS XL Waste Project, the unique client number 
USFRS has assigned to the customer and generator and its waste stream, 
the date of USFRS notice to EPA and MPCA proposing to add the customer 
and generator to the USFRS XL Project; the date on which USFRS notified 
the customer that it is approved for participation in this USFRS XL 
Project; and the date USFRS received the signed FPA and certification 
from the customer or generator. The list shall also contain the date of 
any notice of termination, and if there is a termination, the date on 
which USFRS recovered all of its USFRS XL wastes

[[Page 28093]]

from the generator and the date USFRS conducted its visual evaluation 
of the condition of the USFRS XL waste storage areas and notice of 
compliance with Sec. 266.412. USFRS will update its waste customer and 
generator list when new customers and generators have been approved by 
EPA, MPCA and the County Agencies or when a customer or generator has 
been terminated from this XL Project; and
    (4) A list of all USFRS XL Waste Approved Transporters. USFRS shall 
include on this list the transporter's unique USFRS client number, the 
transporter's name, and if available, EPA identification number and its 
Minnesota registration number, the date of USFRS notice to EPA and MPCA 
proposing to add the transporter to the USFRS XL Project; the date on 
which USFRS notified the transporter that it is a USFRS XL Waste 
Approved Transporter; and the date on which it received the signed 
USFRS XL waste FPA and certification. The list shall also contain the 
date of any notice of termination, and if there is a termination, the 
date on which USFRS recovered all of its USFRS XL wastes from the 
transporter. This USFRS XL waste transporter list may be modified upon 
approval of EPA and MPCA.
    (c) Recordkeeping. USFRS will retain for three years a copy of 
USFRS XL waste application forms, and correspondence with each USFRS XL 
waste approved customer and generator; records of any spill or leak 
notifications it receives; records of its compliance with this subpart 
O; and the USFRS XL waste Transportation Tracking Document for each 
shipment from a USFRS XL waste generator.


Sec. 266.420  USFRS XL waste generator recordkeeping and reporting 
requirement.

    A USFRS XL waste generator will retain for three years a copy of 
the USFRS XL Waste FPA, with all appropriate signatures; its USFRS XL 
waste certification; its log of weekly inspections required by 
Sec. 266.408(d); its record of any notification of spills or leaks of 
its USFRS XL wastes required by Sec. 266.408(e); its compliance with 
the training and facility contact requirements of Sec. 266.408(h); a 
copy of the signed Transportation Tracking Document for USFRS XL waste 
it generated; and documentation of its compliance with Sec. 266.412.


Sec. 266.421  USFRS XL waste transporter recordkeeping and reporting 
requirement.

    A USFRS XL waste transporter will retain for three years a copy of 
the USFRS XL Waste FPA, with all appropriate signatures; its USFRS XL 
waste certification; a copy of the signed Transportation Tracking 
Document for USFRS XL waste it transported; and its record of any 
notification of spills or leaks of its USFRS XL wastes required by 
Sec. 266.411


Sec. 266.422  Effective date and duration of the project.

    This subpart O is effective from November 23, 2001 until five years 
after the State of Minnesota modifies the USFRS RCRA hazardous waste 
permit to incorporate USFRS' duties under this subpart O.
[FR Doc. 01-11671 Filed 5-21-01; 8:45 am]
BILLING CODE 6560-50-U