Appendix — Cement Kiln Recycling Coalition v. Browner

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No. ——ogFice OF THE CLERK

IN THE

Supreme Court of the United States

OCTOBER TERM, 1993

CEMENT KILN RECYCLING COALITION,

HOLNAM, INC.,

LONE STAR INDUSTRIES, INC., and

SAFETY-KLEEN CoORP.,

Petitioners,

¥,

CAROL M. BROWNER, ADMINISTRATOR,

U.S. ENVIRONMENTAL PROTECTION AGENCY, and

U.S. ENVIRONMENTAL PROTECTION AGENCY,

Respondents.

Petition for a Writ of Certiorari to the

United States Court of Appeals

for the District of Columbia Circuit

APPENDIX TO

PETITION FOR WRIT OF CERTIORARI

GENE A. LUCERO

Counsel of Record

for Petitioners

LATHAM & WATKINS

633 W. Fifth Street

Suite 4000

Los Angeles, CA 90071-2007

(213) 485-1234

WILSON - Epes PRINTING Co., INC. - 789-0096 - WASHINGTON, D.C. 20001

re a

TABLE OF CONTENTS

APPENDIX A Page

Opinion of the United States Court of Appeals for

the District of Columbia Circuit in Horsehead Re-

source Development Co. v. Browner, Nos. 91-1221

Pe a ee Pr ee la

APPENDIX B

Final Rule: Technical Clarification Amendments

and Corrections, 57 Fed. Reg. 38558 (Aug. 25,

1992) Sethi thae tedden Dah der ght SES en eed 50a

APPENDIX C

Final Rule, 56 Fed. Reg. 7134 (Feb. 21, 1991) ..... 64a

APPENDIX D

Proposed Rule, Supplemental Proposed Rule, Tech-

nical Corrections, and Request for Comments, 55

Fed. Reg. 17862 (April 27, 1990) _.. ROSE

APPENDIX E

Supplement to Proposed Rule, 54 Fed. Reg. 43718

(Oct. 26, 1989) _............ TOE A pesecuietabiells 144a

APPENDIX F

Proposed Rule and Request for Comment, 52 Fed.

| eee 173a

APPENDIX G

Order Denying Petitioners’ Petition for Rehear-

ing, in Horsehead Resource Development Co. v.

Browner, Nos. 91-1221 et al., Order Denying Peti-

tioners’ Petition for Rehearing En Banc, in Horse-

head Resource Development Co. v. Browner, Nos.

I Ce ee) OR Pe ... 197a

Note: A list of parties to the proceedings in the court below and

a list of Petitioners’ parent companies and subsidiaries is

provided in Section II of the Petition for Certiorari.

ii

TABLE OF CONTENTS—Continued

APPENDIX H

Regulations Involved: Excerpt from 57 Fed. Reg.

1992); Excerpt of 56 Fed.

38558, 38565 (Aug. 25,

Reg. 7134, 7208-12, 7220-29

APPENDIX I

Excerpt from Joint Brief of Industry Petitioners

and Intervenors in Support, Filed in Horsehead

Resource Development Co. v. Browner, Nos. 91-

1221 et al.

la

APPENDIX A

UNITED STATES CCURT OF APPEALS

FOR THE DISTRICT OF COLUMBIA CIRCUIT

Argued October 25, 1993 Decided February 22, 1994

No. 91-1221

“COMPLEX”

HORSEHEAD RESOURCE DEVELOPMENT COMPANY, INC.,

Petitioner

V.

CAROL M. BROWNER, ADMINISTRATOR,

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY,

AND UNITED STATES ENVIRONMENTAL

PROTECTION AGENCY,

Respondents

RSR CORPORATION,

INTERNATIONAL MILL SERVICE,

Dow CHEMICAL COMPANY,

B.F. GOODRICH COMPANY,

AMERICAN IRON AND STEEL INSTITUTE,

AMERICAN MINING CONGRESS,

CHEMICAL WASTE MANAGEMENT, INC.,

ASSOCIATION OF BATTERY RECYCLERS, INC.,

EDISON ELECTRIC INSTITUTE, et al.,

SOLITE CORPORATION,

CHEMICAL MANUFACTURERS ASSOCIATION,

AMERICAN PETROLEUM ASSOCIATION,

HAZARDOUS WASTE TREATMENT COUNCIL,

CEMENT KILN RECYCLING COALITION,

BATTERY COUNCIL INTERNATIONAL,

AMERICAN COKE AND COAL CHEMICALS INSTITUTE,

2a

CITIZENS FOR A SAFE ENVIRONMENT, ef al.,

MARINE SHALE PROCEssors, INC.,

STEEL MANUFACTURERS ASSOCIATION SPECIALTY

STEEL INDUSTRY OF THE UNITED STATES,

TENNESSEE EASTMAN COMPANY,

CYPRUS MIAMI MINING CORPORATION,

INTERNATIONAL METALS RECLAMATION COMPANY, INC..

Intervenors

No. 91-1222

ASSOCIATION OF BATTERY RECYCLERS, INC.,

- Petitioner

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY.

Respondent

No. 91-1223

RSR CorporatTION,

» Petitioner

UNITED STATES ENVIRONMENTAL PROTECTION AG

Respondent

ENCY,

No. 91-1230

SOLITE CORPORATION,

_ Petitioner

CAROL M. BROowNER, ADMINISTRATOR,

UNITED STATES ENVIRONMEN rAL PROTECTION AGEN

AND UNITED STATES ENVIRONMENTAL

PROTECTION AGENCY,

Respondents

CY,

, .

3 tes

Pee

3a

No. 91-1234

AKJ INDusTRIEsS, INC.,

y Petitioner

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY,

Respondent

No. 91-1237

MARINE SHALE PROCESSORS, INC.,

¥. Petitioner

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY,

Respondent

No. 91-1238

TENNESSEE EASTMAN COMPANY,

. Petitioner

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY,

Respondent

No. 93-1240

CITIZENS For A SAFE ENVIRONMENT, et al.,

. Petitioners

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY.

Respondent

AKJ INDUSTRIES, INC.,

Intervenor

ta

No. 91-1241

CHEMICAL MANUFACTURERS ASSOCIATION,

Petitioner

Vv.

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY,

Respondent

No. 91-1244

AMERICAN IRON AND STEEL INSTITUTE,

Petitioner

v.

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY,

Respondent

AMERICAN COKE AND COAL CHEMICALS INSTITUTE,

Intervenor

No. 91-1245

CEMENT KILN RECYCLING COALITION,

Petitioner

Vv.

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY,

Respondent

No. 91-1572

CEMENT KILN RECYCLING COALITION,

Petitioner

Vv.

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY,

Respondent

Sa

ASSOCIATION OF BATTERY RECYCLERS, INC.,

EDISON ELECTRIC INSTITUTE, et al.,

HORSEHEAD RESOURCE DEVELOPMENT COMPANY, INC.,

Dow CHEMICAL COMPANY,

INTERNATIONAL MILL SERVICE, INC.,

AMERICAN MINING CONGRESS,

AMERICAN IRON AND STEEL INSTITUTE,

Intervenors

No. 91-1575

SOLITE CORPORATION,

) Petitioner

CAROL M. BROWNER, ADMINISTRATOR,

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY,

AND UNITED STATES ENVIRONMENTAL

PROTECTION AGENCY,

Respondents

ASSOCIATION OF BATTERY RECYCLERS, INC.,

EDISON ELECTRIC INSTITUTE, et al.,

AMERICAN MINING CONGRESS,

Dow CHEMICAL COMPANY,

INTERNATIONAL MILL SERVICE, INC.,

HORSEHEAD RESOURCE DEVELOPMENT COMPANY, INC.,

AMERICAN IRON AND STEEL INSTITUTE,

Intervenors

No. 91-1576

TENNESSEE EASTMAN COMPANY,

Petitioner

Vv.

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY,

Respondent

6a

ASSOCIATION OF BATTERY RECYCLERS, INC.,

MORSEHEAD RESOURCE DEVELOPMENT COMPANY, INc.,

Dow CHEMICAL COMPANY,

INTERNATIONAL MILL SERVICE, INC.,

AMERICAN MINING CONGRESS,

AMERICAN IRON AND STEEL INSTITUTE,

EDISON ELECTRIC INSTITUTE, ef al.,

Intervenors

No. 92-1392

CONTINENTAL CEMENT COMPANY,

LONE STAR INDUSTRIES. INC.,

HOLNAM INC.,,

SAFETY-KLEEN CORPORATION,

Petitioners

Vv.

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY,

Respondent

No. 92-1459

CEMENT KILN RECYCLING COALITION,

Petitioner

v.

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY,

Respondent

EDISON ELECTRIC INSTITUTE,

NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION,

AMERICAN PUBLIC PowER ASSOCIATION,

UTILITY SOLID WASTE ACTIVITIES GROUP,

AMERICAN MINING CONGRESS,

Intervenors

Ta

No. 92-1601

LAFARGE CORPORATION,

¥ Petitioner

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY,

Respondent

EDISON ELECTRIC INSTITUTE,

NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION,

AMERICAN PUBLIC Power ASSOCIATION,

UTILITY SoLIp WAsTE ACTIVITIES GROUP,

Intervenors

No. 92-1610

GIANT Group, LTD.,

7 Petitioner

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY,

Respondent

EDISON ELECTRIC INSTITUTE,

NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION,

AMERICAN PUBLIC PowER ASSOCIATION,

UTILITY SOLID WASTE ACTIVITIES GROUP,

Intervenors

Petitions for Review of an Order of the

Environmental Protection Agency

Before: WaLtp, Epwarps and BUCKLEY, Circuit

Judges.

Opinion for the Court filed Per Curiam.

Per Curiam: This case involves challenges by indus-

ty and environmentalist petitioners to an Environmental

Protection Agency (“EPA”) rule interpreting section

8a

3004(q) of the Resource Conservation and Recovery Act

(“RCRA”), 42 U.S.C. § 6924(q) (1988), which directs

the agency to regulate facilities burning hazardous waste

as fuel. The rule, entitled “Burning of Hazardous Waste

in Boilers and Industrial Furnaces” (“BIF Rule”), 56

Fed. Reg. 7,134 (1991) (codified as amended by subse-

quent corrections and technical amendments at 40 C.F.R.

Parts 260, 261, 264, 265, 266, 270, 271 (1992)), is

principally designed to establish air emissions require-

ments for facilities burning hazardous waste as fuel. The

BIF Rule also integrates the mandates of section 3004(q)

and the Bevill Amendment, the latter of which is a RCRA

provision that excludes certain types of waste from RCRA

Subtitle C’s hazardous waste management regime until the

EPA completes several studies and submits their results

to Congress. See 42 U.S.C. § 6921(b)(3)(a) (1988).

Petitioners attack the BIF Rule on three grounds.’ First,

both groups of petitioners contend that the BIF Rule fails

to adhere to what they regard as Congress’ clear expres-

sion of its intent in the Bevill Amendment. There are two

types of “Beville wastes” at issue in this case: cement kiln

dust (“ckd”); and combustion residues produced when

BIF’s burn fuel consisting primarily of coal, oil, and other

fossil fuels. Although the Bevill Amendment states that

ckd and fossil fuel combustion residues are exempt from

Subtitle C pending completion of the required studies, the

BIF Rule provides that these Bevill wastes can under

some circumstances be regulated as Subtitle C hazardous

wastes when they are produced by BIF’s burning fuel

which contains hazardous waste. Industry Petitioners

contend that the Bevill Amendment exempts ckd and fos-

sil fuel combustion residues from Subtitle C regardless of

whether they are the product of hazardous waste fuels.

Environmentalist petitioners, Citizens for a Safe Environ-

1 The two groups of petitioners originally offered twelve separate

challenges to the BIF Rule; however, all but three of these issues

were resolved by settlements between the parties on the eve of oral

argument. We address only the three remaining challenges.

9a

ment, et al. (“CASE petitioners”), make the opposite ar-

gument, contending that Bevill wastes produced by BIF’s

burning any quantum of hazardous waste are automati-

cally subject to Subtitle C. We reject both of these chal-

lenges and uphold the BIF Rule as a permissible interpre-

tation of RCRA § 3004(q) and the Bevill Amendment.

Second, we uphold the BIF Rule insofar as it regulates

air emissions from BIF’s burning mixtures of hazardous

waste and non-waste fuel. Industry petitioners contend

that the rule is invalid because non-waste fuels are outside

the EPA’s jurisdiction under RCRA. We hold, however,

that RCRA § 3004(q) gives the EPA the authority to

regulate facilities which burn hazardous waste, not merely

the hazardous waste component of the fuel they burn.

The EPA contends that it is not technologically feasible

to distinguish air emissions generated solely by the haz-

ardous waste component of mixed fuels. Because BIF’s

that burn hazardous waste are “treating” that waste as

that term is defined in RCRA, we can find no error in

the EPA’s position that air emissions from the co-process-

ing mixed hazardous waste and non-waste fuels have a

sufficiently close nexus to waste treatment to justify the

regulation at issue. In addition, we hold that the agency’s

failure explicitly to respond to the specific alternatives

proposed by Industry petitioners was not arbitrary and

capricious because the EPA’s general discussion of its de-

cision to regulate non-waste fuels provided a sufficient

response to Industry petitioners’ proposals.

Finally, Industry petitioners challenge the EPA’s pur-

ported regulation of products of incomplete combustion

(“PICs”) produced when BIFs burn hazardous waste

fuel. We remand “Tier III” of the PIC provisions of the

BIF Rule on the grounds that the regulation was promul-

gated without adequate notice and comment, and because

the disputed rule lacks an adequate basis in the rulemak-

ing record; however, we uphold the Tier I and Tier II

standards.

I

10a

1. BACKGROUND

Subtitle C of RCRA establishes a comprehensive

“cradle-to-grave” regulatory program for the treatment,

storage, and disposal of hazardous waste. United Tech-

nologies Corp. v. EPA, 821 F.2d 714, 716 (D.C. Cir.

1987). For RCRA purposes, burning hazardous waste

constitutes “treatment” of it,” thus giving the EPA the

authority to regulate this activity. The EPA promulgated

the BIF Rule pursuant to the mandate of RCRA section

3004(q), which directs the agency to establish standards

which will “protect human health and the environment”

governing facilities that burn fuel containing hazardous

waste. 42 U.S.C. § 6924(q) (1988).°

Hazardous waste is burned for three purposes: to de-

stroy the waste (incineration), to serve as fuel (energy

2See 42 U.S.C. §6903(34) (1988) (“treatment” means “any

method, technique, or process, including neutralization, designed

to change the physical, chemical, or biological character or com-

position of any hazardous waste... .”); 40 C.F.R. § 260.10 (1922)

(“treatment” includes “any method, technique, or process ... de-

signed to... recover energy or material resources from [hazard-

ous] waste... .”); see also Shell Oil Co. v. EPA, 950 F.2d 741,

752-56 (D.C. Cir. 1991) (upholding the EPA’s decision to incor-

porate resource recovery within the regulatory definition of “treat-

ment”).

3 The relevant portion of RCRA § 3004(q) reads:

(q) Hazardous waste used as fuel

(1) Not later than two years after November 8, 1984, and

after notice and opportunity for public hearing, the Adminis-

trator shall promulgate regulations establishing such—

(A) * # &

(B) standards applicable to the owners of facilities which

burn, for purposes of energy recovery, any fuel [produced

from or mixed with hazardous waste or] which otherwise

contains any hazardous waste identified or listed under

section 6921 of this title. ...

* &£ & &

as may be necessary to protect human health and the environment.

42 U.S.C. § 6924(q) (1988).

lla

recovery), and to recover usable materials such as metals

‘materials recovery). Hazardous waste often has a great

ueal of heat value when used as a fuel; and this use also

has the benefit of destroying or at least reducing the vol-

ume of the waste, thereby reducing reliance on landfilling.

In its early attempts to implement Subtitle C, the EPA

was particularly concerned that its regulations not dis-

courage beneficial uses of hazardous wastes, such as en-

ergy recovery and recycling. See 45 Fed. Reg. 33,804 at

33.092-94 & 33,120 (1980). For this reason, in 1981,

the EPA deferred regulating air emissions from BIF’s

burning hazardous waste as fuel or for materials recov-

ery, but did adopt rules controlling emissions from haz-

ardous waste incinerators, which burn waste primarily in

order to destroy it. 46 Fed. Reg. 7,666. 7,678 (1981).

Exempting facilities that burned hazardous waste for

energy recovery from Subtitle C’s requirements created a

regulatory “loophole” by means of which over half of the

hazardous waste generated in the United States came to

be burned in BIF’s not subject to RCRA. H.R. Rep. No.

198, 98th Cong., Ist Sess., pt. 1, at 39 (1983). Con-

gress closed this loophole by enacting RCRA section

3004(q) as part of the Hazardous and Solid Waste

Amendments of 1984, Pub. L. No. 98-616, § 204, 98

Stat. 3221. Section 3004(q) set a deadline of November

8 1986 for the EPA to promulgate regulations governing

the burning of hazardous waste for energy recovery.

In 1985, in response to section 3004(q), the EPA im-

posed its first controls on the marketing and burning of

hazardous waste fuels. 50 Fed. Reg. 665 (1985); 50

Fed. Reg. 49,164 (1985). These regulations provide that

hazardous waste or fuels containing hazardous waste are

subject to transportation and storage controls under Sub-

title C prior to being burned as fuel or being blended or

processed for use as fuel.

In 1987, again pursuant to section 3004(q), the EPA

published its proposed BIF Rule for public comment. 52

12a

Fed. Reg. 16,982-17,050 (1987). The EPA issued a

Supplemental rulemaking proposal in 1989. 54 Fed. Reg.

43.718-63 (1989). The final BIF Rule, which we review

in the instant case, was published in the Federal Register

in 1991. 56 Fed. Reg. 7,134-240 (1991). The EPA sub-

sequently promulgated a series of technical amendments

and clarifications to the BIF Rule. See Corrections and

Technical Amendments, 56 Fed. Reg. 32,688-852 (1991);

Technical Amendments, 56 Fed. Reg. 42,504-17 (1991):

echnical Clarification Amendments and Corrections, 57

Fed. Reg. 38 558-66 (1992),

II. Discussion

A. Standard of Review

The standard of review in this case is the familiar two-

part framework of Chevron U.S.A., Inc. v. Natural Re-

sources Defense Council, 467 U.S. 837 (1984). First.

the court asks whether Congress “has directly spoken to

the precise question at issue.” Id. at 842. If so, then the

intent of Congress is controlling. If, however, the mean-

ing of the statute is ambiguous, then we will uphold the

agency's interpretation so long as it is “based on a per-

missible construction of the Statute.” Jd.

As this court explained in Natural Resources Defense

Council v. Reilly, 983 F.2d 259, 266 (D.C. Cir. 1993):

[I]t is only legislative intent to delegate such au-

thority that entitles an agency to advance its own

statutory construction for review under the deferen-

tial second prong of Chevron. See Chevron, 467

U.S. at 843-44. “If Congress has explicitly left a gap

for the agency to fill, there is an express delegation

of authority. . . . Sometimes the legislative delegation

to an agency on a particular question is implicit

rather than explicit. In such a Case, a court may not

substitute its own construction of a Statutory provi-

sion for a reasonable interpretation made by the ad-

ministrator of an agency.” /d.

13a

CASE petitioners and Industry petitioners attack the

BIF Rule’s interpretation of the Bevill Amendment from

opposite directions, both relying on Chevron step one to

argue that Congress’ clearly expressed intent requires the

outcome they advocate. CASE petitioners argue that the

EPA may not exempt any co-processed Bevill wastes from

Subtitle C because Congress did not intend for the Bevill

Amendment to cover combustion residues or ckd pro-

duced by fuel that contains hazardous waste. Industry

petitioners argue that when Congress enacted the Bevill

Amendment it was aware that Bevill devices and BIF’s

burned hazardous waste, and that the amendment was

intended to exempt ckd and residues without regard to the

type of fuel that produced them. The EPA contends, and

we agree, that the language of the Bevill Amendment

does not unambiguously address the issue of hazardous

waste fuels burned in Bevill devices, and that its regula-

tion is a permissible interpretation of the statute under

Chevron step two.

B. Interpretation of the Bevill Amendment Under the

BIF Rule

1. The Bevill Amendment

The Bevill Amendment * to RCRA limits the authority

of the EPA to regulate certain enumerated types of solid

* 42 U.S.C. § 6921 (b) (3) (a) (1988) :

[E]ach waste listed below shall, except as provided in sub-

paragraph (B) of this paragraph, be subject only to regulation

under other applicable provisions of Federal or State law in

lieu of this subchapter until at least six months after the date

of submission of the applicable study required to be conducted

under subsection (f), (n), (0), or (p) of section 6982 of this

title and after promulgation of regulations in accordance with

subparagraph (C) of this paragraph:

(i) Fly ash waste, bottom ash waste. slag waste, and flue

gas emission control waste generated primarily from the

combustion of coal or other fossil fuels.

f Continued |

l4a

wastes until it completes studies concerning them and sub-

mits the results of those studies to Congress. The EPA

has yet to complete the relevant studies, although the stat-

utory deadlines expired in 1982 and 1983. See 42 U.S.C.

§ 6982(n), (0) (1988). Two classes of Bevill wastes are

relevant to the dispute before us: cement kiln dust or

“ckd.” which is the particulate matter emitted in the ex-

haust gases of cement kilns that is collected by emission

control devices such as fabric filters or electrostatic pre-

cipitators; and combustion residues, such as ash and par-

ticulates, which are generated primarily from the combus-

tion of coal or other fossil fuels.

This court has described the Origins of the Bevill

Amendment at length in three previous decisions concern-

ing the provision for mining wastes, 42 U.S.C. § 6924

(b) (3) (a) (ii) (1988). See Solite Corp. v. EPA, 952

F.2d 473, 477-82 (D.C. Cir. 1991); Environmental De-

fense Fund v. EPA, 852 F.2d 1316, 1318-21 (D.C. Cir.

1988), cert. denied, 489 U.S. 1011 (1989) (“EDF IT’);

Environmental Defense Fund vy. EPA, 852 F.2d 1309,

1310-12 (D.C. Cir. 1988), cert. denied, 489 US. 1011

(1989) (“EDF I”). Here we need only summarize our

earlier holdings as to Congress’ intent in enacting the

Amendment.

In 1978. in its first proposal for regulation of hazard-

ous waste under Subtitle C, the EPA proposed to create a

category of “special wastes.” among which were ckd and

combustion residues produced by utilities, for which spe-

cial, less stringent standards might be appropriate. See

43 Fed. Reg. 58,946, 58.992 (1978). The EPA had not

yet fully studied these special wastes, but the agency be-

lieved they potentially presented unique problems because

* [Continued]

(ii) Solid waste from the extraction, beneficiation, and

processing of ores and minerals, including phosphate rock

and overburden from the mining of uranium ore.

iii) Cexent kiln dust waste.

15a

they were generated in very large volumes but posed rela-

tively low hazards to human health. Because of the large

volumes of these wastes, the EPA was concerned that it

might be impractical to dispose of them in facilities that

fully complied with Subtitle C of RCRA. However, the

EPA eventually decided to abandon the concept of “spe-

cial wastes.” The agency pointed out that the definition

of hazardous waste in its final regulations was less strin-

gent than the one it had initially proposed (meaning

fewer special wastes would qualify as hazardous wastes),

and that the final waste management standards were more

flexible than those it had originally proposed. Thus, it was

felt that there was no need for a category of “special

wastes.” See 45 Fed. Reg. 33,084, 33,174-75 (1980):

EDF II, 852 F.2d at 1319; EDF I, 852 F.2d at 1311.

One month before the 1980 Subtitle C regulations were

to take effect, Congress enacted the Bevill Amendment as

part of the Solid Waste Disposal Act Amendments of

1980, Pub. L. No. 96-482, 94 Stat. 2334, 2337 $7. In

response, the EPA amended its hazardous waste rezula-

tions in November 1980 to incorporate the Bevill Amend-

ment’s exemption of ckd, mining wastes and fossil fuel

combustion residues from the requirements of Subtitle C.

45 Fed. Reg. 76,618 (1980).

In EDF /1, this court held that “it is clear that Congress

intended the Bevill exclusion to encapsulate the ‘special

waste’ concept articulated by the EPA in 1978.” EDF II,

852 F.2d at 1329. That case held that the EPA was not

permitted simply to exempt from Subtitle C all mining

wastes potentially within the scope of the Bevill Amend-

ment, but rather was required to comply with Congress’

clearly expressed intent that the agency exempt only those

mining wastes that would have fallen within the category

of “special wastes.” EDF I] thus required the EPA to

develop criteria to determine whether potentially exempt

mining wastes were “high volume, low hazard” wastes.

such as the EPA had proposed to include in the “special

waste” category in 1978. Jd. at 1331. Accordingly, this

l6a

court also held that the EPA could not continue to grant

a Bevill exemption from Subtitle C to six types of smelter

wastes that the agency had found to be low volume and

high hazard, because such wastes were outside the scope

of the Bevill Amendment. /d. at 1329-30,

1329). This court went on to hold, however, that Con-

gress had not directly addressed “the appropriate delinea-

tion of the ‘special waste’ concept, and the attendant ‘high

volume’ and ‘low hazard’ Criteria... .” Jd. at 482 (em-

phasis added). Our review of the EPA’s volume and

hazard criteria for mining waste thus was limited to the

(citing Chevron, 467 U.S. at 843).

2. The Integration of the Bevill A mendment and

Section 3004(q) Mandates Under the BIF Rule

The EPA has adopted a two-part definition of “hazard-

Ous wastes” that are Subject to Subtitle C. “Characteristic

hazardous wastes” are substances exhibiting one or more

of four hazardous characteristics: ignitability, corrosivity,

mixed with other wastes—a provision known as the “mix-

ture rule.” 40 CFR. § 261.3(a) (2) (iv) (1992). A

listed waste also remains a hazardous waste for Subtitie C

purposes even after it is “treated” in some fashion—the

so-called “derived-from” rule. 40 C.F.R. § 261.3(c) (2)

MOREE 6

17a

(1), (d)(2) (1992). As noted above, for RCRA pur-

poses, the burning of a hazardous waste for any purpose,

whether for fuel, materials recovery or destruction, con-

stitutes “treatment” 42 U.S.C. § 6903(34) (1988).°

All parties to this litigation agree that ckd and combus-

tion residues from Bevill devices burning hazardous waste

fuel would be subject to Subtitle C by operation of the

derived-from rule absent the Bevill Amendment; this is so

because they would contain residues from the burning of

hazardous waste. The question before this court is the

extent to which the Bevill Amendment does or does not

exempt ckd and combustion residues produced by burning

fossil fuels mixed with hazardous waste from the operation

of the derived-from rule.

The BIF Rule integrates the mandates of the Bevill

Amendment and section 3004(q) by providing both quan-

titative and qualitative requirements which Bevill wastes

must satisfy in order to retain their exemption from Sub-

title C. 40 C.F.R. § 266.112 (1992). The quantitative

aspect of the rule requires that in order for cd to retain

its Bevill exemption, the kiln producing it mus: process at

least fifty percent by weight of ordinary, non-hazardous

waste raw matcrials. Jd. § 266.112(a)(3). The EPA

noted in its statement accompanying the final BIF Rule

that although the Bevill Amendment refers to devices

burning “primarily” fossil fucls, it does not explicitly so

limit the Subtitle C exclusion for ckd. The agency deter-

mined, however, that. to retain its Bevill exclusion, a

cement kiln must burn chiefly non-hazardous waste mate-

5 In 1991, in Shell Oil Co. v. EPA, 950 F.2d 741 (D.C. Cir. 1991),

this court vacated the mixture and derived-from rules for failure

to give adequate opportunity for notice and comment. The Shell

Oil decision suggested, however, that the EPA repromulgate the

rules on an interim basis under the APA’s good cause exemption,

id. at 752, and the agency did so on March 3, 1992. 47 Fed. Reg.

7,628 (1992). The interim rule has been challenged in Mobil Oil

Corp. ». EPA, No. 92-1211, currently scheduled for oral argument

before this court on March 8, 1994.

18a

rials. See 56 Fed. Reg. 7,134, 7,197-98 (1991). This

provision apparently is intended to prevent cement kilns

frem effectively becoming hazardous waste incinerators

by burning far more waste than actually necessary to fuel

cement making. The EPA interpreted the Bevill Amend-

ment’s exclusion for residues “primarily from the combus-

tion of coal or other fossil fuels” as exempting only

residues from BIF’s burning at least fifty percent coal.*

Residues from BIFs burning oil or gas mixed with any

quantity of hazardous waste are not covered by the Bevill

Amendment because oil and gas generally produce very

little combustion residue, sc any residue from the co-

processing of these fucls with hazardous waste would

necessarily be “significantly affected” by the hazardous

waste. /d. at 7,198 n.87.

The BIF Rule’s qualitative requirements provide that

Bevill wastes which meet the foregoing quantative criteria

remain exempt from Subtitle C so long as they have not

been “significantly affected” by the burning of hazardous

waste. The EPA has established a test to be performed

on a case-by-case basis at each facility to determine

whether co-processed Bevill wastes have been “significantly

affected.” See 56 Fed. Reg. 7,196-99 (1991). The

agency considered adopting uniform baseline levels rather

than requiring site-specific testing, but determined that it

did not have sufficient data to do so. See id. at 7,198: 54

Fed. Reg. 43,718 at 43,734 & 43,735-36 (1989).

The “significantly affected” test consists of two parts.

First, a Bevill device operator may opt to determine

whether concentration of specified toxic compounds in

co-processed residue are significantly higher than in resi-

dues produced from burning solely non-hazardous-waste

fuels. 40 C.F.R § 266.112(b)(1) (1992). If the co-

processed Bevill wastes are sufficiently similar to ordinary

Bevill wastes, the wastes remain exempt from Subtitle C.

* The percentage of coal burned in a BIF may be measured on a

“total heat input or mass input basis, whichever results in the

greater mass feed rate of coal.” 40 C.F.R. § 266.112(a) (1) (1992).

ee

19a

Second, the operator may determine whether toxic com-

pounds are present in the waste in levels that exceed so-

called “health based limits”—levels that “could pose a

Significant risk to human health.” 56 Fed. Reg. 7,134 at

7,198 & 7,199 (1992): see 40 C.F.R. § 266.112(b)(2)

(1992). The first part of the qualitative test need not be

conducted if the residue does not exceed the health-based

limits. 40 C.F.R. § 266.112(b) (1992). If, however, the

residue exceeds the health-based limits, it is exempted from

Subtitle C only if it is sufficiently similar to normal resi-

due to pass the first test.

eee oe

I

; The EPA noted in its statement accompanying the final

BIF Rule that it believed that it had struck a “reasonable

} balance between the terms of the Bevill amendment and

other provisions and regulations relating to hazardous

waste management.” 56 Fed. Reg. 7,134, 7,197 (1991).

The agency observed that to disqualify co-processed resi-

dues from the Bevill exclusion in cases in which the resi-

due was not “significantly affected” would

exalt form over substance by barring from Bevill

eligibility a residue that was not discernably affected

by burning hazardous waste. Given that such mate-

rial could be exactly the high volume/low hazard resi-

due that Congress told the Agency to study before

regulating, EPA does not agree with an interpretation

that automatically forecloses it from Bevill status.

In addition, use of Bevill devices provides needed

treatment capacity for a number of hazardous wastes,

and the Agency would be reluctant to adopt an inter-

pretation that discouraged safe processing of hazard-

ous waste... ..

Id. (footnote omitted). The EPA also pointed out that

air emissions from Bevill devices, as opposed to combus-

tion residues, would be subject to the requirements of the

BIF Rule in all cases; and that the facilities at which

Bevill devices were located would be subject to Subtitle

C’s corrective action requirements in the event hazardous

20a

constituents were released into the environment in ways

or quantities not contemplated by the facilities’ RCRA

permits. Id.; see also American Iron & Steel Inst. v. EPA,

886 F.2d 390, 393-96 (D.C. Cir. 1989) (holding Bevill

wastes are not exempt from RCRA corrective action re-

quirements because those requirements apply to hazardous

constituents, not merely to hazardous wastes), cert. de-

nied, 497 U.S. 1003 (1990).

3. Industry Petitioners’ Challenge to the BIF Rule’s

Interpretation of the Bevill Amendment

Industry petitioners contend that Congress intended that

Bevill wastes be exempt from Subtitle C without regard to

the materials burned by the device that produced them.’

We hold that such an interpretation of the Bevill Amend-

ment would be both irrational and contrary to the law of

this circuit as defined by Solite and EDF II, and accord-

ingly we deny the petitions for review on this point.

Industry petitioners make much of the fact that RCRA

section 3004(q) specifically provides that: “Nothing in

this subsection shall be construed to affect or impair the

provisions of [the Bevill Amendment].” 42 U.S.C. § 6924

(q)(1)(C) (1988). According to Industry petitioners,

this clause evinces a congressional intent to exclude from

Subtitle C all Bevill wastes that are the product of burn-

ing hazardous waste fuels. This argument begs the ques-

tion, however. We agree that section 3004(q) plainly

does not overrule or modify the Bevill Amendment; the

question before us is how to integrate the two provisions.

We are concerned in this case not with whether the Bevill

Amendment retains its vitality, but with what it means.

* The attack on the regulation of ckd was submitted by Industry

petitioners Cement Kiln Recycling Coalition; Giant Group, Ltd.;

Lafarge Corporation and Solite Corporation. Industry petitioners’

challenge to the regulation of combustion residues was submitted

on behalf of Chemical Manufacturers Association and Tennessee

Eastman Company.

2la

As we noted above, this court held in EDF II that the

EPA was required to limit Bevill wastes excluded from

Subtitle C to those wastes that are high volume/low haz-

ard. In Solite we held that the EPA had discretion to

define the “high volume” and “low hazard” criteria so long

as its definitions were permissible interpretations of the

Bevill Amendment. In the instant case a “high volume”

criterion is not at issue. However, the two-part “signifi-

cantly affected” test under the BIF Rule is plainly a means

to limit the Bevill exclusion to wastes that are in fact low

hazard; we therefore review it under Chevron Step two.

Neither Industry petitioners nor CASE petitioners chal-

lenge the specific parameters the EPA has chosen for

“health-based limits,” or the test the agency prescribes to

determine whether Bevill wastes from devices burning haz-

ardous waste fuel are significantly different from those

produced by burning ordinary fuel. Thus, we consider the

permissibility of the “significantly affected” test in the

absence of any specific challenges to the test itself. Both

groups of petitioners argue only that the EPA may not

impose such a test at all, not that the test the EPA has

promulgated is flawed in any way.

Although the Solite and EDF II decisions involved only

mining wastes under the Bevill Amendment, the analyses

in those opinions are wholly applicable to the instant case

as well. Industry petitioners suggest that our earlier deci-

sions permitted the EPA to impose hazard and volume cri-

teria only because such guidelines were necessary to im-

plement the mining waste exemption under the Bevill

Amendment, which did not specifically enumerate the

wastes it covered, but simply referred to “{slolid waste

from the extraction, beneficiation, and processing of ores

and minerals.” 42 U.S.C. § 6921(b)(3)(A) (ii) (1988).

However, we find nothing in our prior decisions to suggest

that Congress did not intend to apply the “special waste”

framework to all of the wastes listed in the Bevill Amend-

ment—indeed, ckd and combustion residues generated by

utilities were among the wastes the EPA suggested for the

22a

special waste category in its 1978 proposal. See EDF II,

852 F.2d at 1319.

Further, it simply makes no sense to permit Bevill de-

vices to become inadequately regulated dumping grounds

for hazardous materials. According to a source cited by

CASE petitioners, cement kilns alone now burn more

than twice as much waste as RCRA-permitted incinera-

tors, a figure that Industry petitioners do not attempt to

refute. See Brief for Petitioners Citizens for a Safe Envi-

ronment, et al. at 18-19. Industry petitioners would have

us hold that Congress intended that cement kilns and

other Bevill devices may burn anything—even spent nu-

clear fuel, infectious medical waste, or discarded chemical

weapons—without the resulting residues being subject to

the hazardous waste regulation regime Congress created

by enacting Subtitle C. This we are unwilling to do.

The EPA’s interpretation of the Bevill Amendment is

obviously a reasonable one. Under the BIF Rule, Bevill

wastes retain their exemption from Subtitle C so long as

they are not “significantly affected” by the hazardous

waste fuel burned to produce them, or do not present a

hazard to human health and the environment. The BIF

Rule is designed to distinguish combustion residues and

ckd from materials that are, in effect, very different sub-

stances. Quite simply, if ckd from co-processing hazard-

ous waste fuels is “significantly affected,” it is no longer

just ckd, but ckd plus the products of combustion of haz-

ardous waste. We therefore hold that the BIF Rule is a

permissible interpretation of the Bevill Amendment’s low

hazard criterion.

4. CASE Petitioners’ Challenge to the BIF Rule’s

Interpretation of the Bevill Amendment

a. CASE Petitioners’ Standing

Industry intervenors contend that CASE petitioners lack

standing to challenge the BIF Rule’s interpretation of the

23a

Bevill Amendment.’ We need not linger long on this

issue as we hold that CASE petitioners plainly do have

standing.

To support their standing argument, Industry inter-

venors attempt to rely on this court’s decisions in Hazard-

ous Waste Treatment Council v. EPA, 861 F.2d 270

(D.C. Cir. 1988) (“HWTC I’), and its companion case,

Hazardous Waste Treatment Council v. EPA, 861 F.2d

277 (D.C. Cir. 1988), cert. denied, 490 US. 1106

(1989) (“HWTC II’). In HWTC II this court held that

the Hazardous Waste Treatment Council (“HWTC’”), a

trade association of firms engaged in the treatment of haz-

ardous waste and one of the CASE petitioners in this

case, lacked standing to challenge the EPA’s then-existing

section 3004(q) regulations governing the burning of haz-

ardous waste as fuel. HWTC contended in that case that

it had standing because the alleged laxity of the EPA’s

regulatory scheme would injure its members by diminish-

ing the market for their waste management services.

Among the injuries HWTC alleged was that because the

EPA at that time exempted all Bevill residues from Sub-

title C, HWTC’s members who operated hazardous waste

incinerators were at a competitive disadvantage when sell-

ing waste incineration services because they were forced

to bear the costs of disposing of their combustion residues

in compliance with Subtitle C. See HWTC II, 861 F.2d

at 281. We found these allegations inadequate to estab-

lish standing. See id. at 280-85.

In the instant case, Industry intervenors contend that

HWTC attempts to redress the same injury found inade-

quate for standing in HWTC IJ. This argument is to no

avail, however. Even assuming arguendo that Industry

8 This standing challenge was offered by Industry intervenors

American Mining Congress, Cyprus Miami Mining Corporation,

Edison Electric Institute, Solite Corporation and Tennessee East-

man Company. The EPA did not contest CASE petitioners’

standing.

24a

intervenors are correct as to HWTC, the environmental

organizations who are also among the CASE petitioners

clearly do have standing. As was the case in HWTC I,

because we find that the environmental organizations

among the CASE petitioners have standing, the question

of HWTC’s standing raises a moot issue. See HWTC I,

861 F.2d at 273 (citing Bowen v. Kendrick, 487 U.S.

589, 620 n.15 (1988) ).

Industry intervenors argue that the environmental or-

ganizations among the CASE petitioners lack standing

because the EPA’s health-based limits are designed to

ensure protection of human health and the environment,

and so petitioners cannot allege an actual injury. We

disagree. The Supreme Court recently held that “the irre-

ducible constitutional minimum of standing contains three

elements.” Lujan v. Defenders of Wildlife, 112 S. Ct.

2130, 2136 (1992). First, a petitioner must have suf-

fered an “injury in fact” that is both concrete and par-

ticularized, and actual or imminent. Second, the injury

must be fairly traceable to the challenged action of the

defendant. Third, “it must be likely, as opposed to merely

speculative, that the injury will be redressed by a favor-

able decision.” Jd. (internal quotation omitted). CASE

petitioners have alleged, and Industry intervenors do not

dispute, that some of their members live in communities

near Bevill devices of various types. In HWTC I we up-

held the standing of an environmental group which as-

serted that the EPA’s failure to regulate used oil as a

Subtitle C hazardous waste constituted an injury-in-fact

to its members living in communities potentially subject

to incidents resulting from mismanagement of used oil.

861 F.2d at 273. Further, in that case this court also

held that in the event the environmental group won its

lawsuit, remanding the used oil regulations to the EPA

for reconsideration of its subtitle C listing decision would

be “likely to redress the injuries alleged.” Id.

The instant case presents a standing inquiry identical in

all relevant respects to the allegations we held adequate

wert

25a

for standing in HWTC I. The environmental groups

among the CASE petitioners allege that the BIF Rule is

an unlawful interpretation of the Bevill Amendment which

exposes their members to greater risks than they would

face if all Bevill wastes were regulated under Subtitle C.

If the EPA were required to regulate Bevill wastes as Sub-

title C hazardous wastes, those wastes would be subject

to a more stringent regulatory regime than the current

BIF Rule imposes, providing greater protection to peti-

tioners’ members.

Because the environmental organizations among the

CASE petitioners have standing, we hold that the CASE

petitioners as a group also have standing to challenge the

BIF Rule.

b. CASE Petitioners’ Interpretation of the Bevill

Amendment

CASE petitioners assert that the Bevill Amendment ex-

empts from Subtitle C only Bevill wastes produced by

facilities burning purely non-hazardous-waste fuel. As we

discussed at length above, Congress intended the Bevill

Amendment to enact the high volume/low hazard “special

waste” concept. The plain language of RCRA section

3004(q) makes clear that Congress knew when it added

that section that Bevill devices burned hazardous waste,

and suggests that it expected they might be subject to a

different regulatory regime than that imposed on other

BIFs. Given these facts, we cannot hold that the legisla-

ture clearly intended automatically to remove the Bevi

exemption for all Bevill wastes generated from co-

processing hazardous wastes.

RCRA section 3004(q)(2)(C)(i) provides that “no

fuel which contains any hazardous waste may be burned

in any cement kiln which is located within” a city with a

population of over five hundred thousand, unless the kiln

complies with RCRA’s incinerator regulations. 42 U.S.C.

§ 6924(q)(2)(C)(i) (1988). This provision is incon-

26a

trovertible evidence that Congress knew cement kilns and

other Bevill devices burned hazardous waste. Further, the

fact that Congress singled out cement kilns in large cities,

but did not address other types of boilers or industrial

furnaces that burn hazardous waste, Suggests that the

legislature believed that cement kilns might be subject to

a different regulatory regime than other BIFs, as there

would be no reason to assume that if cement kilns were

subject to the BIF Rule they would present hazards dis-

tinguishable from other devices burning similarly hazard-

Ous wastes.

All the time Congress enacted section 3004(q) it was

aware that Bevill devices burned hazardous waste. In that

section it specifically reaffirmed the Bevill Amendnient,

while at the same time ordering the EPA to regulate facili-

ties burning hazardous waste as fuel. Nevertheless, no-

where in section 3004(q), or anywhere else in RCRA,

does Congress indicate how it wished the EPA to integrate

the potentially conflicting provisions at issue in this case.

Under these circumstances, we cannot hold that the legisla-

ture has “directly addressed the precise question at issue.”

Chevron, 467 U.S. at 843. The BIF Rule provides for the

continued vitality of the Bevill Amendment, as section

3004(q) requires, by ensuring that high volume/low haz-

ard criteria remain the standard for exemption of Bevill

wastes from Subtitle C. At the same time, the rule recog-

nizes that Bevill wastes that are not low hazard do come

within section 3004(q)’s broad mandate that the EPA

regulate the burning of hazardous waste. This result is

a permissible interpretation of both section 3004(q) and

the Bevill Amendment.

c. CASE Petitioners’ Challenge to the EPA’s

Exemption of Bevill Wastes from RCRA’s

Land Disposal Restrictions

CASE petitioners also challenge the EPA’s determina-

tion that Bevill wastes that pass the BIF Rule’s “signifi-

Re ta SAE I Sh,

27a

cantly affected” test are not subject to RCRA’s land

disposal restrictions (“LDR”). The LDR prohibit the

landfilling of Subtitle C hazardous wastes unless the wastes

are treated according to specified standards, or disposed

of in a land disposal facility that meets RCRA’s “no

migration” standard. See generally Chemical Waste Man-

agement, Inc. v. EPA, 976 F.2d 2, 8-9 (D.C. Cir. 1992),

cert. denied, 113 S. Ct. 1961 (1993). Because the residues

from the incineration of hazardous wastes remain hazard-

ous waste by virtue of the derived-from rule, they ordi-

narily must comply with the LDR. However, because the

BIF Rule provides that Bevill wastes that are not “signifi-

cantly affected” are exempt from Subtitle C, these wastes

are not subject to the LDR by virtue of a 1986 EPA regu-

lation which provides that wastes that are not Subtitle C

hazardous wastes need not comply with RCRA’s land

disposal restrictions. See 40 C.F.R. § 268.1(b) (1992)

(non-hazardous wastes not subject to LDR); id. § 261.4

(b)(4), (7), (8) (Bevill wastes not hazardous waste

unless “significantly affected”).

CASE petitioners argue that the LDR attach irrevoca-

bly to hazardous wastes at the moment they are generated.

For example, waste solvents that are hazardous wastes

ordinarily must be disposed of in keeping with the LDR.

CASE petitioners contend that these same solvents should

not be able to evade the LDR by being burned in a cement

kiln, thereby potentially becoming Bevill wastes exempt

from Subtitle C rather than “treated” hazardous waste.

In addition, CASE petitioners argue that they were not

given adequate notice or opportunity to comment on the

EPA's decision to exclude some co-processed Bevill wastes

from the LDR.’ The EPA counters that the LDR issue

® Chemical Waste Management also considered a challenge by the

Natural Resources Defense Council (“NRDC”), one of the CASE

petitioners, to a regulation providing that Bevill wastes were ex-

empt from the LDR. The court vacated the LDR exemption on

notice and comment grounds and remanded it for consideration in

an ongoing rulemaking. 976 F.2d at 33 n.20. In response to the

28a

was never at issue in the BIF rulemaking because the

agency did not reopen the matter, but reopened only the

question of whether the agency should exempt Beville

wastes generated by co-processing hazardous waste from

Subtitle C. According to the EPA, Bevill wastes that are

not “significantly affected” are simply exempt from the

LDR by operation of regulations that were in place before

the BIF Rule was even proposed. The agency notcs fur-

ther that it has initiated a Separate rulemaking to deal

with the question of the LDR’s applicability to co-

processed Bevill wastes. See 56 Fed. Reg. 55,160, 55,166

(1991). Because, we uphold the EPA’s decision to exempt

some Bevill wastes from Subtitle C, we also hold that

those residues that are excluded are not subject to the

LDR as those provisions by their plain language do not

apply to materials that are not hazardous waste. CASE

petitioners’ argument that they were not provided ade-

quate notice of, and opportunity to comment on, the LDR

is thus moot, because the BIF Rule did not re-open or

modify the LDR, but simply established the circumstances

under which Bevill wastes would be subject in Subtitle C.

The fact that the LDR do not apply to non-Subtitle C

wastes is the result of the EPA’s 1986 regulation, not a

consequence of the BIF Rule that the EPA was required

to address in the BIF rulemaking.

CASE petitioners base their argument that the EPA

may not exempt hazardous wastes burned in Bevill de-

vices from the LDR on this court’s decision in American

vacation of the LDR exemption in Chemical Waste Management,

the EPA asserted that its 1986 regulations, specifically 40 C.F.R.

§§ 261.11(a) and 268.1(b), provided that wastes excluded from the

definition of “solid waste” or “hazardous waste” were exempt from

the LDR. Because the wastes exempited by these regulations in-

cluded Bevill wastes, the EPA maintained that the vacation of the

LDR exemption restored the status quo ante, which happened to

dictate an identical result. Thus, despite NRDC’s “victory” in

Chemical Waste Management, Bevill wastes which are not Subtitle

C hazardous wastes remained exempt from the LDR.

24a

Petroleum Institute v. EPA, 906 F.2d 729, 740-42 (D.C.

Cir. 1990) (“API”), which held that the EPA erred in

assuming that RCRA required it to cease regulating

metal slag as a hazardous waste when it arrived at a

reclamation facility. In that case, the EPA had assumed

that the slag became a raw material rather than a “solid

waste” when it was used for materials recovery. API

strongly suggested, but did not decide, that the EPA could

not reconcile its decision to cease regulating slag at the

point of metals reclamation with RCRA’s “cradle-

to-grave” regulatory structure. /d.

CASE petitioners assert that AP/ requires the EPA un-

: stintingly to regulate hazardous wastes under Subtitle C.

| We need not resolve this sweeping question in order to

: decide this case, however. Whatever RCRA might require

in the case of other solid wastes, Congress has mandated

: that high volume/low hazard Bevill wastes have a special

a

:

eG Tel reales! octal alias 2G Allie LK

status pending completion of the Bevill studies. It is

permissible for the EPA to find that one aspect of that

special status is exemption from the LDR. The EPA’s

position on this issue is a simple syllogism: The LDR

apply only to Subtitle C hazardous wastes; Bevill wastes

that are not “significantly affected” are not hazardous

wastes; therefore, Bevill wastes that are not hazardous

waste are not subject to the LDR.” Because we uphold

the EPA’s determination that Bevill wastes produced by

co-processing hazardous waste are in some circumstances

exempt from Subtitle C, we also uphold the agency’s deci-

sion to exempt non-hazardous Bevill wastes from the LDR

1° We hold that this syllogism is a permissible interpretation of

; the Bevill Amendment, not that the EPA is required to so read the

’ statute. In its notice of proposed rulemaking requesting comments

on the possibility of subjecting Bevill wastes to the LDR, the EPA

suggested that our holding in American Iron & Steel Institute,

886 F.2d at 395-96, might permit the agency to apply the LDR even

to Bevill wastes not subject to Subtitle C. 56 Fed. Reg. 55,160,

55,166 (1991). The permissibility of this alternative interpretation

is not before us in this case, and we express no opinion as to that

question.

30a

as a permissible construction of the Bevill Amendment

and of Subtitle C.

C. The BIF Ru'e’s Regulation of Air Emissions

Several of the Industry petitioners" contend that the

BIF Rule exceeds the EPA’s Statutory authority under

RCRA because it regulates materials that are not “hazard-

ous waste.” The BIF Rule establishes 2 complex set of air

emissions controls for toxic metals, chlorine, and hydrogen

chloride emitted from BIFs burning hazardous waste fuel.

The rule creates a three-tiered system of regulation in

which the levels of emissions and feed rates allowed are

proportional to the degree of sampling and analysis a

BIF operator performs on the BIF’s emissions. See gen-

erally 56 Fed. Reg. 7171-80 (1991). An owner or opera-

tor has the option of satisfying the rule by demonstrating

compliance with any one of the three tiers. The first tier

of controls assumes that all of the regulated materials fed

into the BIF are emitted into the air, without regard for

any pollution control devices that may be present, and so

provides stringent limits on the rate at which the metals,

chlorine, and hydrogen chloride may be fed into the unit.

The operator demonstrates compliance by analyzing the

toxic content of the materials burned, rather than by

measuring actual air emissions. Under the second tier,

the BIF owner or operator demonstrates compliance

through emissions testing. The third tier permits an owner

or operator to conduct both emissions testing and site-

specific dispersion modeling (which takes into account

actual dispersion conditions at the facility) to show that

the emissions do not exceed acceptable levels. The EPA

expects most facilities to comply with the BIF Rule via

the third tier. 56 Fed. Reg. 7173 (1991 ).

Industry petitioners challenge the three-tiered approach

because it obligates operators to measure either the rele-

11 Chemical Manufacturers Association, Marine Shale Processors,

Inc., Tennessee Eastman Company, and the American Petroleum

Institute.

3la

vant constituents of, or the air emissions from, all fuels

fed into the BIF and not just those which are hazardous

waste. The EPA responds that RCRA enables the agency

to regulate facilities that burn hazardous waste for fuel,

not merely the hazardous waste components of the fuel

itself. Because both the EPA and Industry petitioners

base their arsuments on the first prong of Chevron, argu-

ing that Congress has directly spoken to the precise ques-

tion at issue, we begin by examining the relevant statutory

language. Section 3004(q) of RCRA authorizes the EPA

to “promulgate regulations establishing . . . standards ap-

plicable to the owners and operators of facilities which

burn, for purposes of energy recovery, any fuel [which is

produced from hazardous waste or from hazardous waste

and any other material] . . . or any fuel which otherwise

contains any hazardous waste... .” 42 U.S.C. § 6924

(q)(1)(B) (emphasis added). In addition, § 3004(a)

of RCRA directs the EPA to “promulgate regulations

establishing such performance standards, applicable to

owners and operators of facilities for the treatment, stor-

age, or disposal of hazardous waste .. as may be neces-

sary to protect human health and the environment.” 42

U.S.C. § 6924(a) (emphasis added).

We agree with the EPA that the plain language of

RCRA defeats Industry petitioners’ contentions. First,

§ 3004(q) applies to facilities, not just fuels, and there-

fore the EPA may regulate BIF owners or operators who

elect to burn “any fuel which . . . contains any hazardous

waste.” 42 U.S.C. § 6924(q)(1)(B). No BIF is required

to burn hazardous waste fuel, but if it chooses to do so,

§$ 3004(q) permits the EPA to monitor total feed rates

and air emissions; if a BIF elects not to burn hazardous

waste, then the BIF Rule would not apply. Second,

§ 3004(a) allows the EPA to regulate owners and opera-

tors of facilities that “treat” hazardous waste. As dis-

cussed above, supra at 13 n.2, for RCRA purposes, burn-

ing hazardous waste is considered “treatment” of hazard-

ous waste. Therefore, $$ 3004(a) and (q) allow the

32a

EPA to regulate facilities that burn non-waste fuels if

those fuels are being burned with hazardous waste.

Although they make a Chevron step I argument, In-

dustry petitioners do not rely on RCRA’s statutory lan-

guage. Instead, they focus on this court’s decision in

American Mining Congress v. EPA, 824 F.2d 1177

American Mining Congress v. EPA, 824 F.2d 1177 (D.C.

Cir. 1987) [hereinafter AMC 1], interpreting RCRA’s

definitional section, 42 U.S.C. § 6903. Section 6903 de-

fines “hazardous waste” as a subset of “solid waste.” 42

U.S.C. § 6903(27). AMC I held that the EPA does not

have jurisdiction under RCRA to regulate materials re-

used for materials recovery within an ongoing production

process because such materials were never discarded and

thus are not “solid waste.” Industry petitioners reason

that the EPA lacks jurisdiction under RCRA to monitor

the constituents of non-waste fuels burned with hazardous

waste because these co-processed fuels too are not “haz-

ardous waste.” However, the holding of AMC / is not

dispositive here. AMC / involved an altogether different

facet of waste disposal governed by a different Statutory

section, i.e., the scope of the RCRA term “solid waste,”

and not the EPA’s right under §§ 3004(a) and (q) to

regulate facilities handling non-waste materials when the

materials are co-processed with fuel that is unquestionably

“hazardous waste” subject to RCRA. As discussed above,

the plain language of §§ 3004(a) and (q) clearly auth-

orizes the EPA to regulate facilities that burn a mixture

of hazardous waste and non-waste.

Even assuming that the language of RCRA does not

unambiguously permit regulation of non-waste fuels when

they are co-processed in a facility burning hazardous

waste, the EPA’s decision to regulate such non-waste is a

permissible construction of the statute under Chevron step

II. While the EPA is not free to regulate non-hazardous

raw materials at will, in this case the agency has demon-

strated an adequate nexus between the three-tiered con-

trols and the management of hazardous waste. See gen-

HR ha Nir eee ARS Lawl

33a

erally In the Matter of BP Chemicals America, Inc., 1991

RCRA LEXIS 23. *9 (Aug. 20, 1991). The EPA per-

suasively argues that the BIF Rule’s regulation of the con-

tent of non-waste fuels burned in a BIF along with haz-

ardous waste is vindicated by the inherent difficulty in

differentiating between the molecules of emissions gener-

ated by the hazardous waste components of BIF fuel and

those generated by the non-waste components. See 56

Fed. Reg. 7144. The health and environmental effects of

BIF emissions from the mix are the same whatever the

source of an individual molecule. The EPA also notes

that because compliance with the BIF Rule is often dem-

onstrated by monitoring emissions during a trial burn,

feed rates of all inputs to the unit must be continuously

controlled to assure that the results of the trial burn are

representative of actual operations. Were the EPA to al-

low BIF operators to demonstrate compliance on the basis

of one trial burn alone, the operators might burn hazard-

ous waste along with less toxic raw materials during the

final burn and then increase the toxicity of the raw ma-

terials in later burns. See 56 Fed. Reg. 7144 (1991).

Finally, the EPA claims that limitations must be placed

on non-waste feeds because co-processing of hazardous

waste and raw materials can make the commingled emis-

sions more toxic than the sum total of the individual

emissions from the hazardous and non-hazardous mate-

rials alone. See 56 Fed. Reg. 7157 (1991); see also 56

Fed. Reg. 7176 (1991) (BIF Rule limits metal feed rate

for both hazardous waste and non-waste fuels because

when added to emissions from hazardous waste, noncar-

cinogenic materials can cause a maximum exposed indi-

vidual (“MEI”) concentration that exceeds threshold level

for protecting human health). Thus the EPA’s require-

ment that BIF owners and operators monitor the consti-

tuents of all their fuel inputs when they burn both haz-

ardous waste and non-waste is a reasonable application of

its RCRA authority under §S 3004(a) and (q).

Industry petitioners argue, however, that the EPA failed

to address precisely the alternatives they posed to non-

34a

waste monitoring. A rulemaking will be overturned as

arbitrary and capricious if “the EPA has failed to respond

to specific challenges that are sufficiently central to its de-

cision.” International Fabricare Inst. v. FPA, 972 F.2d

384, 389 (D.C. Cir. 1992) (citing American Mining

Congress v. EPA, 907 F.2d 1179, 1191 (D.C. Cir. 1990));

accord Motor Vehicles Mfrs. Ass'n v. State Farm Mut.

Life Ins. Co., 463 U.S. 29, 48 (1983) (alternative ways

of achieving objectives of statute should be addressed and

reasons given for abandonment). During the BIF rule-

making, Industry petitioners suggested the following three

ways to limit regulation of a BIF’s air emissions to those

attributable to the burning of hazardous waste: (1) per-

form a test burn using non-waste fuel ‘> determine the

removal efficiencies of the BIF unit’s air pollution control

devices (APCDs), and then apply those removal efficien-

cles to the emissions from the burning of hazardous

Waste: (2) allow a BIF owner or operator to rely on the

conservative removal efficiencies already specified by the

EPA for various types of APCDs and then calculate back-

wards to determine the allowable metals content for the

hazardous waste feed: and (3) conduct baseline tests to

characterize the relationship between waste feed composi-

tion (i.e., proportion of hazardous waste in the fuel) and

removal efficiency. See Comments of the Chemical Manu-

facturers Ass'n on EPA’s Supplement to the Proposed RIF

Rule, reprinted in Joint Appendix (“J.A.”) at 667-68.

These proposals, however, occupied only three sentences

of a voluminous notice and comment record and were not

Supported by any evidence regarding their effectiveness at

protecting human health and the environment.

Although the EPA did not explicitly respond to the spe-

cific suggestions of Industry petitioners, the agency did,

as a general matter, explain the reasons underlying its

decision to regulate non-waste fuels when they are co-

processed with hazardous waste. As discussed above. the

BIF Rule set forth three justifications for regulating non-

waste fuels when they are burned with hazarodus waste

ee ee

35a

fuels: (1) the inadequacy for compliance purposes of test

burns that do not impose limitations on the toxicity con-

tent of non-waste fuels, (2) the difficulty of differentiat-

ing between toxic air emissions from the burning of non-

waste and hazardous waste, and (3) the phenomenon that

co-processing non-waste and hazardous waste in a BIF can

result in more toxic emissions. See 56 Fed. Reg. 7144

(1991). Implicit in the EPA’s discussion of the prob-

lems embedded in regulating hazardous waste alone is a

rejection of Industry petitioners’ alternative proposals. In

light of the sketchy nature of these alternative proposals,

we find that this portion of the BIF rulemaking (estab-

lishing the three-tiered system of air emissions controls)

survives arbitrary and capricious review.

The BIF Rule’s regulation of non-waste fuels is well

within RCRA’s grant of authority to the EPA to regulate

facilities burning hazardous waste. Due to the difficulties

associated with regulating emissions from hazardous waste

fuels only, the EPA has reasonably decided to monitor

the constituents of, and the air emissions from, all fuels

burned in a BIF facility that burns hazardous waste. Al-

though it would have been instructive for the EPA to

have addressed more precisely the three proposals sug-

gested by Industry petitioners, we conclude that the

agency's general discussion of its decision to regulate non-

waste adequately set forth its reasons for rejecting the

proposals.

D. Regulation of Products of Incomplete Combustion

1. Background

Under RCRA, the EPA must develop standards to con-

troi emissions from burning hazardous waste fuels “as

may be necessary to protect human hea!th and the environ-

ment.” RCRA § 3004()q)(1); 42 U.S.C. § 6924(q)(1).

In response to this mandate, the EPA proposed standards

for emissions of toxic organic compounds in the BIF rule-

making. The BIF Rule, which was issued on February

36a

21, 1991, imposes three requirements on BIFs burning

toxic organics: (1) a 99.99% destruction removal effi-

ciency (“DRE”); (2) good combustion conditions in kilns

and other regulated BIFs so as to control products of in-

complete combustion (“PICs”); and (3) in certain cases,

health risk assessments. See 56 Fed. Reg. 7,134, 7,146-71

(1991) (“Final Rule”).

Here, Industry petitioners Lone Star Industries, Inc.,

Holnam, Inc., Safety-Kleen Corp., and the Cement Kiln

Recycling Coalition (“cement kiln petitioners”) challenge

the second of these requirements as applied to wet process

kilns. Cylindrical in shape, a wet kiln rotates on its own

axis and is slightly inclined so that raw materials intro-

duced at the top end travel slowly to the lower end. The

raw materials (such as clay, shale, limestone, and marl)

are mixed in a slurry form and calcined, i.e., heated to a

high temperature, as the slurry slides down the kiln to-

wards the furnace at the lower, or “hot” end. Significantly,

these raw materials contain widely varying amounts of or-

ganic material that are driven off as the slurry mixture

calcines.

The furnace at the hot end of the wet kiln requires

large amounts of fuel, which can be powdered coal or

other fossil fuel or, alternately, high-BTU hazardous waste.

One benefit of using hazardous waste in this manner is

immediately obvious: It takes the place of scarce fossil

fuels. Another benefit is that the high furnace tempera-

tures (upwards of 2,500 degrees Fahrenheit) destroy the

hazardous organic compounds contained in the waste.

The drawback is that the burning of hazardous waste re-

sults in the creation of incompietely burned organic com-

pounds (i.e., PICs) that are emitted from the upper end

of the kiln.

A kiln’s utility as a means of destroying hazardous

wastes turns on its ability to fully destroy them. In prac-

tice, destruction of hazardous wastes in the fuel is a func-

tion of the combustion efficiency of the kiln; Under poor

ere eh

37a

conditions of efficiency, the principal organic hazardous

constituents (“POHCs”) of the toxic organic compounds

contained in the hazardous waste fuel will be only par-

tially broken down, thereby increasing the production of

PICs. The health effects of PIC emissions are unclear—

some are knowa carcinogens, other may be, and others

are undetectable. See Final Rule, 56 Fed. Reg. 7,150,

col. 1. This uncertainty led the EPA to regulate PICs in

the BIF Rule, for “[g]iven the limited information about

the hazards that PIC emissions may pose, EPA believes it

is prudent to require that boilers and industrial furnaces

operate at a high combustion efficiency to minimize PIC

emissions.” Id.

The EPA chose to monitor carbon monoxide (“CO”)

and total hydrocarbon (“THC”) levels as indicators of

combustion efficiency and required that one of three emis-

sions standards be met: (1) a stack or by-pass duct CO

level not to exceed 100 ppmv, 40 C.F.R. § 266.104(b)

(“Tier I standard”); (2) a_ stack or by-pass duct CO

level above 100 ppmv so long as the stack or by-pass

duct levels of THC are below 20 ppmv, § 266.104(c)

(“Tier II standard”): or (3) for those industrial furnaces

not having a by-pass duct (i.e., wet kilns), meeting an

alternative THC limit that ensures that flue gas hydrocar-

bon (“HC”) and CO concentrations when burning haz-

ardous waste fuels are not greater than when not burning

hazardous waste, § 266.104(f) (“Tier III standard”).

The EPA’s rationale for monitoring CO as an indica-

tor of combustion efficiency is based on the following un-

derstanding of the mechanics of the combustion process:

In the first stage of the combustion of hazardous

waste fuel, the POHCs thermally decompose in the

flame to form other, usually smaller, compounds

termed products if [sic] incomplete combustion. In

this first stage of combustion, these PICs also decom-

pose to form CO.

38a

The second stage of combustion involves the oxi-

dation of CO to CO. (carbon dioxide). The CO to

CO. step is the slowest (rate-controlling) step in the

combustion process because CO is considered to be

more thermally stable (difficult to oxidize) than other

intermediate products of the combustion of hazard-

Ous waste constituents. ...

Thus, in the waste combustion process, the “de-

struction” of POHCs is independent of flue gas CO

levels. CO flue gas levels cannot be correlated with

DREs for POHCs, and may also not correlate well

with PIC destruction. Although some emissions data

indicate a weak correlation between CO and PICs,

the data generally indicate that there is a relation-

ship between the two parameters: When CO is low,

PIC emissions are relatively low. The converse may

not hold: when CO is high, PICs may or may not be

high.

Low CO is an indicator of the status of the CO to

CO, conversion process, the last rate-limiting oxida-

tion process. Because oxidation of CO to CO. oc-

curs after the destruction of a POHC and its (other)

intermediates (PICs) the absence of CO is a useful

indication of POHC and PIC destruction.

Final Rule, 56 Fed. Reg. 7,150, col. 2 (emphasis in

original).

The choice of CO as an indicator of combustion effi-

ciency creates a technical problem, that of restricting CO

measurement to the CO emitted by the hazardous waste

fuel. This is well-nigh impossible in wet kilns, for as the

Slurry slides down the kiln, the organic materials in the

slurry combust and CO is created (“slurry off-gases”).

These CO emissions are unrelated to the CO produced by

the combustion of hazardous waste at the lower end of

the kiln (“combustion off-gases”). Moreover, there is no

way of isolating the two chemical processes because, un-

like dry kilns, which have a by-pass duct that permits the

i

3

i

i

39a

diversion of the kiln off-gas into a separate flue before it

is united with the emissions generated by the raw mate-

rials, in a wet kiln the combustion off-gases combine with

emissions from the slurry, and both exit from the upper

end of the kiln. Thus background emissions of CO attrib-

utable to the oxidation of the raw materials will enter into

the measurement of CO emissions and may prevent wet

kilns from meeting the Tier I standards regardless of their

combustion efficiency.

Recognizing this problem, on October 26, 1989, the

EPA proposed to add a second alternative emissions stand-

ard. See 54 Fed. Reg. 43,718, 43,722-27 (1989) (EPA’s

first supplement to the proposed BIF Rule (“First Sup-

plement”) ). The CO standard was to be retained (the

Tier I standard), but an alternative standard was to be

added (the Tier II standard). The Tier II standard was

to be either technology-based (limits on THC emissions)

or health-based (the facility would have to demonstrate

that PIC emissions posed an acceptable risk to the maxi-

mally exposed individual). See 54 Fed. Reg. 43,722, col.

2. Under the technology-based standard, THC emissions

were not to exceed 20 ppmv. 54 Fed. Reg. 43,723, col. 3;

40 C.F.R. § 266.104(c). This standard was chosen on

the basis of the data for hazardous waste incinerators and

BIFs operating under good combustion conditions, as well

as the EPA’s use of risk assessment methodology to show

a 20 ppmv level was protective of human health. 54 Fed.

Reg. 43,723, col. 3.

Unfortunately, wet process kilns may be incapable of

meeting the technology-based Tier II standards for the

same reason that prevents them from meeting the Tier I

standard. Indeed, oxidation of the organic materials con-

tained in the slurry mixture produces not only CO, but

also HC. These background emissions are independent of

the emissions from the combustion of hazardous wastes at

the lower end of the kiln. First Supplement, 54 Fed. Reg.

43,724, col. 1. Thus neither CO nor THC emissions are

an accurate indicator of the combustion efficiency of wet

40a

kilns due to the impossibility of isolating the two combus-

tion processes occurring within the kiln. Reconsidering

this problem, the EPA requested comments on the possi-

bility of different THC limits as well as the feasibility of

a third standard—a site-specific limit “where THC levels

when burning hazardous waste would be limited to base-

line THC levels without burning hazardous waste.” 54

Fed. Reg. 43,724, col. 1. The EPA continued discussions

with the «affected industry well after the end of the com-

ment period. Final Rule, 56 Fed. Reg. 7,155 n.28.

In the final BIF Rule, the EPA adopted the Tier I and

the technology-based Tier II standards and also promul-

gated a Tier III standard. This last was aimed at the

“6 to 10 [wet process kilns that] may not be able to com-

ply with the HC limit of 20 ppmv even though they gen-

erate minimal HC from sources other than raw materials.”

56 Fed. Reg. 7,155, col. 3, The Tier III standard is es-

sentially a waiver provision that allows the EPA to for-

mulate alternative CO and THC limits on a case-by-case

basis if operators of wet kilns can meet certain condi-

tions. 40 C.F.R. § 266.104(f)(1). To obtain a Tier III

waiver, the wet kiln operator must, inter alia, (1) dem-

onstrate that flue gas levels of CO and THC do not in-

crease over baselines measured when the kiln is fired by

non-hazardous fuels in a manner designed to minimize

hydrocarbon emissicns, (2) identify POHCs in the kiln’s

emissions, and (3) conduct a site-specific risk assessment

to demonstrate that the maximum annual average ground

level concentrations do not exceed listed levels. 40

C.F.R. §266.104(f) (3). It is this Tier III] standard that

bears the brunt of the cement kiln petitioners’ challenges

to the PIC standards. They argue both that the EPA gave

insufficient notice and opportunity for comment on the

Tier III stendard and that each of the three tiers is ar-

bitrary and capricious as applied to wet process kilns.

4la

2. Did the EPA Provide Adequate Notice and Op-

portunity for Comment on the Tier III Hydro-

carbon Standard?

The cement kiln petitioners contend that the EPA failed

to accord adequate notice and opportunity for comment

on the Tier III standard. The validity of this challenge

turns on the relationship between the proposed regula-

tions and the Tier III standard contained in the final BIF

Rule. See Shell Oil Co. v. EPA, 950 F.2d 741, 747

(D.C. Cir 1991) (“The relationship between the proposed

regulation and the final rule determines the adequacy of

notice.”). As we stated in Shell Oil, adequate notice is

given when “the final rule is a ‘logical outgrowth’ of the

one proposed.” Jd. at 747. Nevertheless, the “EPA un-

doubtedly has authority to promulgate a final rule that

differs in some particulars from its proposed rule.” Small

Ref. Lead Phase-Down Task Force v. EPA, 705 F.2d

506, 546 (D.C. Cir. 1983).

The EPA certainly raised the possibility of a specific

standard for wet kilns. In the First Supplement, the

agency explicitly recognized that “[p]reheater and pre-

calciner cement kilns, for example, may not be able to

readily achieve such a low THC concentration for the

same reason that they typically cannot achieve CO levels

below 100 ppmv.” 54 Fed. Reg. 43,724, col. 1. It thus

called for comments on

(1) The types of industrial furnaces for which a

THC level of 20 ppmv is representative of good com-

bustion conditions; (2) whether alternative THC

limits may be more appropriate for certain industrial

furnaces; and (3) whether an approach to identify a

site-specific THC limit representative of good oper-

ating practices may be feasible (e.g.. where THC

limits when burning hazardous waste would be lim-

ited to baseline THC levels without burning hazard-

ous waste.). In support of comments, we request

data on emissions of CO and THC under baseline

42a

and hazardous waste burning conditions, including

characterization of the type and concentration of in-

dividual organic compeunds omitted.

Id. This placed the cement kiln petitioners on notice that

a non-hazardous waste fuel THC baseline standard might

be adopted for wet kilns. Moreover, the EPA held re-

peated meetings with these petitioners as well as individ-

ual cement kiln operators to discuss an alternative hydro-

carbon limit for cement kilns burning hazardous waste

fuel. 56 Fed. Reg. 7,155 & n.28.

While the cement kiln petitioners may have had notice

of the possibility of a THC standard for wet kilns, we are

hard pressed to find any precursor to the dual-baseline/

health-based emissions testing standard actually embodied

in the Tier III provision in any of the three proposed

regulations preceding the final rule. See Proposed Rule,

52 Fed. Reg. 16,982, 16,997-17,000 (1987); First Sup-

plement, 54 Fed. Reg. 43,718, 43,721-28; second supple-

ment to the proposed rule, 55 Fed. Reg. 17,862, 17,880-

89 (1990) (“Second Supplement”). The EPA contends

that the rulemaking proposals disclosed the central ele-

ments of the final Tier III standard and attempts to predi-

cate notice of the Tier III standard on mentions of its

component parts.

To this end, the EPA cites its determination in the First

Supplement that THC could serve as a good indicator of

combustion efficiency, 54 Fed. Reg. 43,722-24, which it

reiterated in the Second Supplement, 55 Fed. Reg. 17,884-

86. The EPA also points to its call for comments on the

possibility of a site-specific limit of THC levels to those

experienced when burning non-hazardous waste fuel, 54

Fed. Reg. 43,724, col. 1, reiterated in the Second Supple-

ment, 55 Fed. Reg. 17,885, col. 3. It also cites the deter-

mination that both CO and THC could be measured on

the basis of hourly rolling averages, 54 Fed. Reg. 43,726-

27, and the suggestion that a THC standard might be

based on generic risk assessment. 54 Fed. Reg. 43,723,

col. 1.

SRD alata Leb esi Wedel aaah RR

43a

Nowhere in the proposed rulemakings, however, does

the agency indicate it is contemplating the possibility of

dual CO and THC baselines. This omission is critical

because notice of individual parts of a proposed rule is

not necessarily notice of the whole. One purpose of

notice is to promote informed decisionmaking, and com-

ments addressed to one specific component part of the

standard do not necessarily bear on the viability of Tier

IIf as a whole. See Fertilizer Inst. v. EPA, 935 F.2d

1303, 1312 (D.C. Cir. 1991) (“Because comments ap-

propriate to a determination of the hazards of radio-

nuclides would not necessarily be appropriate to a deter-

mination of the hazards of entities using or producing

radionuclides, we conclude that the notice published by

the EPA did not provide interested parties with an ade-

quate opportunity to comment.”). Here, more notice

should have been given of the form of the Tier III stand-

ard, for while the “logical outgrowth” standard does not

require the agency to assiduously lay out every detail of

a proposed rule for comment, it does require that the

“agency . . . publish notice of either the substance of a

proposed rule or a ‘description of the subjects and issues’

covered by a proposed rule.” /d. at 1310-11 (quoting 5

U.S.C. § 553(b)(3)). Such a description must “provide

sufficient detail and rationale for the rule to permit inter-

ested parties to participate meaningfully.” /d. at 1311

(internal quotation marks and citations omitted).

It is the possibility of meaningful participation that is

lacking here, for while the EPA proposed individual ele-

ments of the Tier III standard separately, the component

parts were never collected together in such a fashion as

to enable the parties to anticipate and adequately com-

ment on the ultimate Tier III standard. The agency did

request data on “emissions of CC and THC under base-

line and hazardous waste burning conditions,” First Sup-

plement, 54 Fed. Reg. 43,724, col. 1, but this gives no

indication that a dual baseline was contemplated and

could just as easily have been a call for data to support

44a

the Tier I and Tier II standards. Notice of these two

standards was exhaustive, while the cement kiln petitioners

were only on notice that a site-specific THC standard was

contemplated for wet process kilns.

As we have stated before, general notice that a new

standard will be adopted affords the parties scant oppor-

tunity for comment. Small Ref. Lead Phase-Down Task

Force, 705 F.2d at 549. The agency’s obligation is more

demanding—it must “describe the range of alternatives

being considered with reasonable specificity. Otherwise,

interested parties will not know what to comment on, and

notice will not lead to better-informed agency decision-

making.” Jd. Here, the “range of alternatives” described

by the EPA did not include the ultimate standard; nor

can the ultimate standard be considered a “logical out-

growth” of the individual component parts cited by the

EPA. Ultimately, the EPA simply failed to give inter-

ested parties sufficient notice of the form that the Tier III

standard might take, undermining the aims of meaningful

participation and informed decisionmaking. /d. at 547

(“[N]otice improves the quality of agency rulemaking by

ensuring that agency regulations will be tested by ex-

posure to diverse public comment.” (internal quotation

marks omitted) ).

The EPA makes much of the comments submitted on

issues that were to become critical parts of the final rule,

as well as the meetings it held with industry. While we

have noted that insightful comments may be reflective of

notice and may be adduced as evidence of its adequacy,

see, e.g., Shell Oil, 950 F.2d at 751, we have rejected

bootstrap arguments predicating notice on public com-

ments alone. Ultimately, notice is the agency’s duty be-

cause “comments by members of the public would not in

themselves constitute adequate notice. Under the stand-

ards of the APA, notice necessarily must come—if at all

—from the Agency.” /d. (internal quotation marks and

citations omitted). Here, moreover, the comments sub-

mitted by the parties undercut the EPA’s argument for

45a

they only go to the individual component parts of the final

Tier III standard. Not one contemplates anything more

than a standard measuring the amount of THC emissions

over a non-hazardous fuel baseline combined with backup

risk assessment. No mention is made of a dual CO/THC

baseline in any of the comments, and at oral argument

counsel for the EPA conceded that this indicated that no

notice was provided of a possible CO baseline standard

for wet kilns. In sum, the EPA cannot base notice of the

Tier III standard on either submitted comments or pro-

posals concerning individual parts of the ultimate stand-

ard. The Tier III standard not being a logical outgrowth

of any precursor proposal, it is vacated and remanded

for further consideration.

3. Are the EPA’s Rules to Control PIC Emissions

Reasonable?

As discussed above, the EPA enacted a three-tiered pro-

tective standard to control emissions from the burning of

hazardous fuels. The cement kiln petitioners attack the

rationale underlying these standards, contending that each

is arbitrary and capricious. Under our familiar rubric,

“(t]he scope of judicial review of agency decisionmaking

under the arbitrary-and-capricious standard is narrow.

Nonetheless, the agency must examine the relevant data

and articulate a satisfactory explanation for its action

including a rational connection between the facts found

and the choice made.” Natural Resources Defense Coun-

cil v. EPA, 859 F.2d 156, 209 (D.C. Cir. 1988) (foot-

note and internal quotation marks omitted).

a. The Tier III Standard

These petitioners contend that the Tier III standard has

no rational basis. First, they argue that the EPA articu-

lated no basis for its conclusion that kilns could reliably

quantify both CO and THC baselines when burning non-

hazardous fuel. In the BIF Rule, the EPA adduced two

pieces of support: “commenters[’] [assertions] that when

46a

hazardous waste is burned, hydrocarbon levels do not in-

crease and often decrease,” 56 Fed. Reg. 7,157, coi. 1,

and the results of test runs on a single wet process cement

kiln located at Hannibal, Missouri. 56 Fed. Reg. 7,157

col. 1, 7,163 col. 2. The results of the test runs allegedly

demonstrated that emissions of THC are quantifiable and

actually decrease when hazardous fuels are burned (in

comparison to a non-hazardous waste burning baseline).

Id.; Emissions Testing of a Wet Cement Kiln at Hannibal,

Missouri, BBSP-SO147, reprinted in J.A. at 218, Table

4-13 at 4-22. Yet Table 4-13 reveals the very problem

raised by the cement kiln petitioners: that the inhomoge-

neity of the organic material in the saw materials pre-

cludes the establishment of a reliable baseline, and thus

the baselines are not a valid indicator of good combus-

tion. At oral argument, moreover, counsel for the EPA

disavowed reliance on the Hannibal test runs, admitting

that they were conducted for a different purpose and could

not be relicd on to support the Tier UI standard.

Thus the supportive comments cited by the EPA are

the sole evidence of the feasibility of the Tier III stand-

ard. These comments, however, refer only to the possibil-

ity of implementing a THC baseline and make no refer-

ence to the possibility of simultaneously quantifying CO

and THC baselines. The agency thus had no information

on this issue and was relying on pure speculation when it

decided that a standard of no increase of CO and THC

Over quantifiable CO and THC baselines was achievable.

See National Gypsum Co. v. EPA, 968 F.2d 40, 43-44

(D.C. Cir. 1992) (agency cannot “infer” facts not in the

record); Natural Resources Defense Council, 859 F.2d at

210 (agency actions based upon speculation are arbitrary

and capricious). Such speculation is an inadequate re-

placement for the agency’s duty to undertake an exami-

nation of the relevant data and reasoned analysis; thus

the EPA’s action in promulgating the Tier III standard

was arbitrary and capricious. See Specialty Equip. Mid.

Ass'n v. Ruckelshaus, 720 F.2d 124, 137 (D.C. Cir.

ee te

~ ae te) nel ew

Ce ee

47a

1983) (agency's lack of justification demonstrates action

was arbitrary and capricious).

We note that, at oral argument, counsel for the cement

kiln petitioners maintained that they had proposed three

alternative methods by which the objectives of the Tier

III standards could be met and that the EPA had failed

to consider those comments. The EPA, of course, is

obliged to respond to “relevant” and “significant” com-

ments. Home Box Office, Inc. v. FCC, 567 F.2d 9, 35 &

n.58 (D.C. Cir. 1977). We need not consider this argu-

ment as grounds for remand, however, because the cement

kiln petitioners failed to raise it prior to oral argument;

thus we deem it waived.

b. Tier 1 and Tier II Standards

All BIFs are governed by the three-tiered standard;

thus, even though we have vacated the Tier IIT standard,

wet process kilns remain subject to the first two. The

cement kiln petitioners do not contend that they were pro-

vided with inadequate notice or opportunity for comment

on the Tier I and Tier II standards, but they do argue

that these standard are “fundamentally irrational” as ap-

plied to wet kilns and must be vacated as arbitrary and

capricious.

The EPA argues that the three tiers implement its statu-

tory duty, and that if wet kilns cannot comply with one

of these standards, they should simply stop burning haz-

ardous wastes as fuel. The EPA attests, and the cement

kiln petitioners do not dispute, that there are dangers,

known and unknown, associated with burning hazardous

wastes. Ultimately, it is PIC emissions that are being reg-

ulated, and from the standpoint of health and safety, there

is no reason to distinguish between PICs emitted from the

combustion of hazardous wastes and those emitted from

the combustion of the slurry. The EPA has determined

that

48a

hazardous waste burning may affect the type and

concentration of organic compounds emitted from an

industrial furnace that has elevated HC concentra-

tions attributable to raw materials. For example,

the chlorine in the hazardous waste may result in

higher concentrations of chlorinated organic com-

pounds.

56 Fed. Reg. 7.157, col. 3. The EPA candidly admits

that the use of CO and THC as indicators of combustion

efficiency is problematic as applied to wet kilns, yet it

contends that the existing PIC standards are the best ap-

plication of existing scientific knowledge. “This court

does not demand certainty when there is none[.] and the

Agency here may apply its expertise to draw conclusions

from . . . probative preliminary data not yet certifiable

as fact and the like.” Solite Corp. v. EPA, 952 F.2d 473,

490 (D.C. Cir. 1991) (internal quotation marks and cita-

tion omitted). As we have stated before, “[wle cannot

of course substitute our judgment for that of the agency.

What we do require is that the [agency] come to grips

with the obvious ramifications of its approach and address

them in a reasoned fashion.” Natural Resources Defense

Council, 859 F.2d at 209-10 (internal quotation marks

and footnotes omitted).

In the instant case, the EPA has met this standard—it

recognized the effects that the Tier I and Tier II stand-

ards would have on wet kilns and attempted to accommo-

date them in the Tier III standard. The lack of notice

and a reasoned basis for the Tier III standard necessitates

that it be vacated, but the inapplicability of the other two

to wet kilns, standing alone, does not persuade us that

their promulgation was arbitrary and capricious. The

EPA issued those regulations as protective of human

health and the environment; and if it is technologically

impossible for wet process kilns to meet them, they can

simply stop using hazardous waste as fuel. See id. at

206-09 (EPA has no duty to provide for variances from

49a

water quality standards that may be technologically im-

possible to achieve ).

We thus vacate and remand the Tier If] standard while

affirming the Tier I and Tier If standards. Nonetheless,

we note that the EPA has recognized that the Tier I and

Tier I] standards are inappropriate for wet process cement

kilns. The agency may therefore wish to consider estab-

lishing an interim replacement standard for Tier IIf under

the “good cause” exemption of 5 U.S.C. § 553(b) (3) (B)

pending full notice and opportunity for comment. See,

e.g., Shell Oil, 950 F.2d at 752.

Il]. CONCLUSION

For the reasons given above, the BIF Rule is upheld in

part, and the Tier If PIC standard is remanded to the

EPA for reconsideration consistent with the terms of this

opinion.

So Ordered.

50a

APPENDIX B

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 260, 261, 264, 265, and 266

[EPA OSW-FR-92-SWH-FRL-4198-5]

Burning of Hazardous Waste in Boilers

and Industrial Furnaces

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule; technical clarification amendments

and corrections.

SUMMARY : This action makes several technical clarifi-

cation amendments and corrections to the final rule for

boilers and industrial furnaces burning hazardous waste.

The final rule was published on February 21, 1991 (56

FR 7134). These revisions provide clarification and cor-

rect unintended consequences of the rule.

EFFECTIVE DATE: August 11, 1992.

ADDRESSES: The documents are available for viewing

at the RCRA Information Center (docket identification

number F-92-BBC3-FFFFF), located at: EPA RCRA In-

formation Center, room: M2427, 401 M Street, SW, Wash-

ington, DC 20460.

The RCRA Information Center is open from 9 a.m. to

4 p.m. Monday through Friday, except for federal holli-

days. The public must make an appointment to review

docket materials. Call (202) 260-9327 for appointments.

Copies cost $0.15 per page.

FOR FURTHER INFORMATION CONTACT: | For

general information, contact the RCRA _ Hotline at:

(800) 424-9346 (toll free) or (703) 920-9810.

5la

Shiva Garg, Office of Solid Waste (OS-322W), U.S.

Environmental Protection Agency, 401 M Street, SW,

Washington, DC 20460, (703) 308-8459.

SUPPLEMENTARY INFORMATION:

Preamble Outline

A. Technical Clarification Amendments

1. The Definition of Baseline Hydrocarbon Level for

Industrial Furnaces Complying with the Alternative Hy-

drocarbon Limits is Clarified to Require Consideration of

Process Variability.

2. Industrial Furnaces Complying with the Alternative

HC Limit May Comply with the Interim HC Limit Using

a Conditioned Gas HC Monitoring System if They Dem-

onstrate that a Heated System Is Impracticale.

3. Industrial Furnaces that Cannot Comply with the

20 ppmv HC Limit by Aug. 21, 1992, because of Organic

Matter in Raw Materials May Apply for a Case-by-Case

Time Extension to Make Physical Changes to the Facility

in Order to Comply with that HC Limit.

4. The Metals and Total Chlorine and Chloride Feed

Rate Operating Limits for Tier I or Adjusted Tier I Are

Based on the Screening Limits, Not the Compliance Test.

5. Adjusted Tier I Feed Rate Screening Limits May

Be Used in Dispersion Situations where the Tier I and

Tier I Screening Limits Are Precluded.

6. Several Requirements Are Clarified to Account for

Facilities that Comply with Adjusted Tier I Limits.

7. BIF Storage Units are Subject to the Air Emissions

Standards of subparts AA and BB of parts 264 and 265.

8 The Definitions of Plasma Arc and Infrared Incin-

erators Are Clarified to Include Only those Devices that

Use an Afterburner.

52a

9. Facilities that Comply with the Tier I or Adjusted

Tier | Metals and Chlorine Controls and that have Un-

controlled Emissions that Meet the Particulate Matter

Standard Need Not Establish a Limit on Production Rate

during Interim Status.

10. Halogen Acid Furnaces that Burn Hazardous

Waste as an Ingredient Are Subject to the BIF Rule.

11. When Comparing Levels of Nonmetal Constituents

in Residue to the Health-Based Limits for the Bevill Ex-

clusion, the Levels Cannot Exceed the Health-Based

Limits or the Level of Detection, whichever Is Higher.

12. The Applicability of part 266 Is Clarified.

13. Conforming Revisions Are Made to the Applica-

bility Sections of parts 264 and 265.

14. A Conforming Revision Is Made to the Rule-

making Petitions Provision of part 260.

B. Technical Corrections

C. Immediate Effective Date

A. Technical Clarification Amendments

On February 21, 1991, the Agency published a final

rule which regulates the burning of hazardous waste in

boilers and industrial furnaces (BIFs). See 56 FR 7134.

The rule controls emissions of toxic organic compounds,

toxic metals, hydrogen chloride, chlorine gas, and particu-

late matter from BFIs that burn hazardous waste. In

addition, the rules subject owners and operators of BIFs

to the general facility and permitting standards applicable

to hazardous waste treatment, storage, and disposal facili-

ties.

After publication of the rule, the Agency received many

questions and requests for clarification on certain provi-

sions of the rule. In addition, in a number of cases, the

Agency was questioned as to whether the rule as promul-

53a

gated truly reflected the Agency’s intent. As a result of

these questions and as a result of the Agency’s own re-

view, the Agency published a technical amendment to the

rule to clarify the operation of the regulation and to cor-

rect certain unintended consequences. Those amendments

were published at 56 FR 42504 on August 27, 1991.

(Note that EPA had previously published several other

technical corrections and amendments to the February 21

final rule (56 FR 32688 (July 17, 1991).)

As facilities began to comply with the BIF rules, addi-

tional questions have been raised about the way various

provisions of the rule are intended to work. Today’s

technical clarification amendments address those ques-

tions.

1. The Definition of Baseline Hydrocarbon Level for

Industrial Furnaces Complying With the Alternative

Hydrocarbon Limit Is Clarified To Require Considera-

tion of Process Variability

The Cement Kiln Recycling Coalition (CKRC) has

expressed concern to the Agency that the alternative hy-

drocarbon (HC) provision of the rule is problematic for

furnaces that feed raw materials containing naturally-

occurring Organic matter." See § 266.104(f). That provi-

sion was intended to allow furnaces that could not com-

ply with the 20 ppmv HC limit because of organic matter

in raw materials to comply with an alternative, higher HC

limit. EPA’s rationale for the 20 ppmb limit was to en-

sure good hazardous waste combustion conditions and,

thus, control of emissions of products of incomplete com-

bustion (PICs). However, because hydrocarbon emis-

sions from organic matter in raw materials are not di-

rectly related to fuel-generated hydrocarbons (i.e., from

burning normal fuels and hazardous waste fuels), the

‘See the BIF docket for documentation of meetings and phone

conversations and copies of correspondence.

54a

Agency believed that these hydrocarbon should not be

counted toward the 20 ppmv HC limit. See 56 FR 7155-

56. To implement the alternative HC limit, the final rule

required such furnaces to establish an HC limit that would

be applicable when burning hazardous waste as the HC

level achieved when not burning hazardous waste and

when the furnace is operated to “minimize” HC levels.

See $ 266.104(f)(1).

CKRC has noted that this provision could be read to

limit fuel-generated hydrocarbons to approximately 2 to 5

ppmv—the HC levels that are achieved when cement kilns

(and boilers, incinerators, and other industrial furnaces )

are operated under conditions to absolutely minimize HC

levels. Therefore, although the Agency limits combustion-

generated hydrocarbons from other combustion devices to

20 ppmyv, the rule could be read to limit fuel-related

hydrocarbon levels from cement kiins to 2 to 5 ppmv.

In particular, CKRC notes that the rule could be inter-

preted to limit hydrocarbons when burning hazardous

waste to the levels achieved when not burning hazardous

waste (i.c., baseline conditions) and when kiln is operated

to absolutely minimize HC levels and would not allow

the facility to account for normal transient combustion

conditions that occur because of factors such as mechani-

cally handling coal. These conditions are elements of

normal operating variability. Although these transient

conditions cause combustion perturbations and momen-

tary increases (i.e., spikes) in HC levels, these combus-

tion-related HC levels do not generally exceed the 20

ppmv hourly rolling average limit that the Agency has

established to control PICs.

Nonetheless, the most literal-minded reading of the rule

would preclude consideration of these normal combustion

perturbations if the rule’s requirement that baseline HC

levels be established when the kiln is operated to mini-

mize HC levels is read to mean to operate constantly at

(ae btinnd waink tn. wt

55a

absolute peak performance.’ This literal-minded reading

would lead to the result—not intended by EPA—that

whenever such a normal combustion perturbation would

occur (when the kiln is burning hazardous waste) and

there is a spike in the HC level that causes the baseline

HC level to be exceeded, the kiln would be required to

stop burning hazardous waste and not restart the hazard-

ous waste feed until the HC level falls below the baseline

limit. Nor did EPA intend that industrial furnaces op-

erate at an absolutely optimized performance in establish-

ing a baseline ignoring normal operating variability (i.e.,

a performance level analogous to a New Source Perform-

ance Standard rather than best available technology). In-

deed, the rule refers to establishing a baseline when the

industrial furnace “produces normal products under nor-

mal operating conditions” (see § 266.104(f)(1)), and the

analogous 20 ppmv HC limit itself is an “indicator of

good combustion conditions” (see 55 FR 7155), not ab-

solutely optimized combustion.

Although EPA believes these readings take an unduly

stringent view of the requirement that HC levels be mini-

mized when establishing a baseline, we nevertheless think

it best to clarify the text of the rule. Therefore, EPA is

correcting the definition of the baseline HC level pro-

vided by § 266.104(f)(1) to make it clear that the meas-

ured baseline HC level must be adjusted as appropriate to

consider the normal variability of hydrocarbon levels

*Even if the rule were interpreted to allow normal combustion

perturbations (i.e., perturbations that do not result in combustion

generated hydrocarbons exceeding 20 ppmv on an hourly rolling

average, and thus, are within the Agency’s definition of good com-

bustion conditions) during baseline testing, establishing a baseline

that includes such normal perturbations would be problematic.

This is because the owner or operator cannot ensure that the

perturbations that occur during the baseline testing are representa-

tive (i.e., in frequency, magnitude, and duration) of normal pertur-

bations. The occurrence of normal perturbations cannot always be

predicted, and it would be difficult for the owner or operator to

demonstrate that perturbations that could be artificially induced

during baseline testing are representative of normal perturbations.

56a

under good combustion operating conditions. Thus, the

measured baseline level could be increased by a variability

factor that considers normal transient combustion condi-

tions (i.e., provided that the transient conditions do not

result in combustion-generated HC that exceed the 20

ppmv limit provided by § 266.104(c)). Accordingly, to-

day’s clarification amends the definition of the baseline

HC level in § 266.104(f)(1) to read as follows: “The

baseline HC level is defined as the average over all valid

test runs of the highest hourly rolling average value for

each run, adjusted as appropriate to consider the varia-

bility of hydrocarbon levels under good combustion operat-

ing conditions.”

This HC variability factor would be determined on a

case-by-case basis by the Director. As guidance in deter-

mining what variability factor to apply, EPA believes that

a factor of 10 ppmv would be appropriate in most situa-

tions.* As indicated previously, the Agency believes that

combustion-generated HC levels from cement kilns (and

other furnaces eligible for the alternative HC limit) should

be limited to 20 ppmv to ensure good combustion condi-

tions. This is the same HC limit that applies to boilers,

other furnaces, and incinerators, and provides a “level

playing field” with respect to control of combustion-

generated hydrocarbons. Thus, we recommend that the

alternative HC limit be established as 20 ppmv plus the

raw material-generated HC level. We do not believe that

it is feasible, however, to measure only raw material-

generated hydrocarbons; the HC monitor in the stack

measures both hazardous waste combustion-generated and

3 We note that, if a variability of 10 ppmv is used to adjust he

measured baseline HC level, facilities with measured HC levels of

11 ppmv or greater would be eligible for the alternative HC limit.

This is because the baseline HC level, when adjusted for the 10

ppmvy variability factor, would be 21 ppmv or more and facilities

with baseline HC levels exceeding 20 ppmv are eligible for the

alternative HC limit.

———————————

|

i

57a

raw material-generated hydrocarbons. Therefore, to esti-

mate the level of raw material-generated hydrocarbons, it

is conservative and reasonable to assume that 10 ppmv *

of the HC measured under baseline conditions (when the

kiln must be operated to minimize combustion-generated

hydrocarbons) is attributable to hazardous waste com-

bustion. (Note that when the kiln is operated to absolutely

minimize hazardous waste combustion-generated hydro-

carbons, HC levels should be in the range of 2 to 5 ppmv.

Thus, the recommended assumption that combustion-

generated hydrocarbons are 10 ppmv during baseline test-

ing is conservative.’ Under this approach, raw material-

generated hydrocarbons are estimated to be the measured

HC level during baseline testing minus 10 ppmv. The 20

ppmv combustion-generated HC allowance would then be

added to the estimated raw material-generated hydro-

carbons. The net effect would be simply to add 10 ppmv

to the measured baseline HC level.

As discussed above, the rational for adding a variability

factor to the measured baseline HC level assumes that

the baseline level is determined when the device is operated

under conditions that generally minimize combustion-

generated hydrocarbon.* Therefore, combustion-generated

* Note that the assumption that 10 ppmv of HC during baseline

testing is attributable to hazardous waste combustion is not the

basis for the recommended 10 ppmv variability factor. As discussed

in the text, however, this assumption leads to the Agency’s conclu-

sion that a 10 ppmv variability factor is appropriate.

*The assumption that combustion-generated HC is 10 ppmv

during baseline testing is conservative because if, for example, we

assumed that combustion-generated HC is 5 ppmv, the variability

factor would be 15 ppmy, not 10 ppmv. This is because, the lower

that the combustion-generated HC is assumed to be, the higher

the raw material-generated HC is estimated to be, and the 20 ppmv

allowance for combustion-generated HC is added to the estimated

raw material-generated HC.

* Although it is not practicable for an industrial furnace to

operate continuously under conditions that minimize combustion-

generated HC as discussed previously in the text, it is reasonable

58a

hydrocarbon spikes causing a significant increase in the

hourly rolling average HC level should not be allowed

during baseline testing. To ensure that substantial varia-

bility is not already included in the baseline HC level, the

hourly rolling average hydrocarbon level should not vary

during baseline testing by more than 5 ppmv when meas-

ured HC levels are in the range of 10-30 ppmv. When

measured HC levels exceed 30 ppmvy, then a higher allow-

able range of HC levels (i.e., the difference between the

highest and lowest hourly rolling average level) during

baseline testing may be appropriate given that the abso-

lute HC levels are higher and even minor perturbations

could cause significant changes in HC levels.’

EPA is interested in obtaining further information on

whether this recommended approach is reasonable to es-

tablish an alternative HC limit for devices that cannot

meet the 20 ppmv HC limit because of organic matter in

raw materials. EPA therefore invites all interested persons

to submit any relevant information on this issue.

2. industrial Furnaces Complying With the Alternative

HC Limit May Comply With the Interim HC Limit

Using a Conditioned Gas HC Monitoring System if

They Demonstrate That a Heated System Is Imprac-

ticable

Section 266.103(c)(5) of the rule allows owners and

operators of BIFs, other than those that obtain a time

extension, to certify compliance with the 20 ppmv HC

limit using a conditioned gas (i.e., cold) HC monitoring

system rather than a heated monitoring system. Although

and necessary to require the facility to operate during baseline

testing under conditions that generally minimize combustion-

generated HC. This is because, otherwise, a variability factor

would be added to a baseline HC level that may already include

substantial variability.

7 Baseline testing should consist of a minimum of three test runs,

with each run having a minimum duration of three hours.

59a

the Agency prefers the heated system because a cold sys-

tem may remove some hydrocarbons during gas condition-

ing (e.g., chilling the gas sample line to condense water

vapor can also remove hydrocarbons), the Agency recog-

nized that heated systems are not in widespread use on

BIFs and modifications to the monitoring systems may be

necessary to address operation and maintenance prob-

lems. See 56 FR 7162 (February, 21, 1991). Conse-

quently, the Agency reasoned that facilities that comply

with the HC limit on Aug. 21, 1992, should be allowed to

use a cold system. On the other hand, he Agency rea-

soned that those owners and operators who obtain a time

extension should be required to certify compliance with

a hot system given that the time extension should provide

enough time to resolve operation and maintenance prob-

lems. (Note that facilities that elect to certify compliance

with a cold system on Aug. 21, 1992, must use a hot

system when they recertify compliance under interim

Status or obtain a RCRA operating permit. See § 266.103

(c)(5).

The Agency did not anticipated the consequences that

this requirement would have on cement kilns complying

with the alternative hydrocarbon provision of $$ 266.104

(f) and 266.103(c)(7)(ii)(B). Under thoes require-

ments, cement kilns must, prior to August 21, 1992, sub-

mit a complete Part B permit application that includes

documentation of the baseline HC level, and cbtain a

time extension from the Director. Until the operating

permit is issued, the facility must comply with an interim

HC (and CO) limit effective no later than August 21,

1992, that is established as a condition of the time exten-

sion.

Consequently, although cement kilns complying with

the alternative hydrocarbon provision must obtain a time

extension, they must monitor hydrocarbons prior to Au-

gust 21, 1992, in order to establish the baseline HC level.

and must monitor hydrocarbons continuously beginning

60a

August 21, 1992. Thus, § 266.103(c)(5) has the un-

intended consequence of requiring such facilities to use a

hot HC monitoring system on (and before) August 21,

1992.

As discussed above, the Agency has already determined

that this is infeasible (and therefore provided a condi-

tioned (i.e., cold) monitoring option). Therefore, to give

such facilities the time they may need to resolve operating

and maintenance problems with hot monitoring systems,

today’s technical correction revises § 266.103(c)(5) to

enable the Director to approve on a case-by-case basis the

use of a cold system for establishing the baseline HC level

and complying with the alternative, interim HC limit.

This correction is a logical and necessary adjunct to the

existing regulation that allows the alternative use of cold

HC monitoring systems. The Director’s approval will be

based on a demonstration by the facility that it has made

a good faith effort to install and operate a heated system

but that it has determined that continuous operation is not

practicable at this time. The Agency does not believe

that this demonstration will be a burden on owners and

operators because they have known since February 21,

1991, that a hot monitoring system was required by the

rule and should have been attempting to operate continu-

ously such systems for some time.

In considering a request to use a conditioned gas moni-

tor in lieu of a hot monitor, the Director may impose addi-

tional requirements on the owner and operator of the fa-

cility to ensure that a hot monitoring system is installed

as soon as practicable. See § 266.103(c)(7)(ii)(A).

For example, the Director may require the owner or op-

erator to operate a hot monitoring system to the extent

practicable concurrently with a conditioned gas monitor-

ing system in order to meet specified milestones in activi-

ties designed to resolve operational problems with a heated

HC monitoring system, and to report periodically on

:

6la

progress toward achieving sustained operation of the hot

monitoring system.

This amendment does not extend the deadline for cer-

tification of compliance. Owners and operators requesting

to comply with the alternative hydrocarbon limit are re-

quired to submit their request along with accompanying

supporting materials in time to allow the Director to grant

or deny the request by August 21, 1992.

3. Industrial Furnaces That Cannot Comply With the

20 PPMY HC Limit by August 21, 1992, Because of

Organic Matter in Raw Materials May Apply for a

Case-by-Case Time Extension To Make Physical

Changes to the Facility in Order to Comply With That

HC Limit

The Agency is clarifying the rule to make it clear that

industrial furnaces that cannot comply with the 20 ppmv

HC limit for reasons beyond the owner’s or operator's

control may request a time extension to certify compliance

with the HC limit. The final rule allows facilities that

elected to comply with the alternative hydrocarbon provi-

sions of § 266.104(f) to obtain a time extension under

$ 266.103(c)(7)(ii)(B). However, the Agency inad-

vertently did not make it clear that owners and operators

that elected to make physical changes to the facility to

enable them to comply with the 20 ppmv HC limit (i.e.,

the usual HC limit, rather than an alternative limit estab-

lished on a case-by-case basis) but who cannot do so by

August 21, 1992, for reasons beyond their control are

also eligible to request a time extension under § 266.103

(c)(7) (ii).

EPA meant for § 266.103(c)(7)(ii)(B) to apply only

to facilities that comply with the alternative HC limit, and

believes that this intent is fairly clear in the existing regu-

latory language since the provision (§ 266.103(c) (7) (ii)

(B)(2)) references the procedure for establishing CO

62a

and HC baseline levels (§ 266.104(f)(1)) applicable

only to persons complying with the alternative HC limit.

Conversely, the provisions make little sense for persons

who intend to comply with the limit of 20 ppmv because

the requirements in § 266.103(c)(7)(ii)(B) are related

only to the alternative HC limit.

Accordingly, today’s amendment revises § 266.103(c)

(7) (ii) (B) to clarify that paragraph applies only to facili-

ties that comply with the alternative HC limit. Thus, the

general time extension provision of § 266.103(c) (7) (ii)

applies to all other situations, including industrial furnaces

that need time to modify the facility to comply with the

20 ppmv HC limit.

Industrial furnaces such as cement kilns may elect to

make physical modifications to the facility to enable them

to certify compliance with the 20 ppmv HC limit rather

than to comply with the alternative HC provisions of

§ 266.104(f). If those modifications cannot be completed

in time to enable the facility to certify compliance by

August 21, 1992, for reasons beyond the facility’s control,

the owner or operator may request a time extension.

If a time extension is granted, the Director will use the

authority of § 266.103(c)(7)(ii) to establish operating

conditions as necessary to reasonably ensure that emis-

sions of toxic organic compounds do not pose a threat to

human health and the environment. Operating conditions

that may be applied may include limits on the type, quan-

tity, and method of firing hazardous waste, and limits on

combustion parameters such as oxygen, carbon monoxide,

and hydrocarbons.

Examples of physical changes that may be made to the

facility in order to meet the 20 ppmv HC limit are: (1)

Installation of a secondary combustion chamber to destroy

organic compounds in the kiln off-gas; or (2) installation

of a roaster to volatilize organic compounds from the raw

material before feeding it to the kiln where hazardous

63a

waste is burned. These changes may enable the owner or

operator to demonstrate that stack gas concentrations do

not exceed the 20 ppmv limit. At this time, the Agency

has not evaluated the practicability of installing a second-

ary combustion chamber or roaster to reduce HC emis-

sions. The Agency is simply identifying these as conceiv-

able changes that may enable a facility to meet the 20

ppmv HC limit.

* * * *

64a

APPENDIX C€C

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 260, 261, 264, 265, 266, 270 and 271

[EPA/OSW-FR-9 1-012; SWH-FRL-3865-6]

RIN 2050-AA72

Burning of Hazardous Waste in Boilers

and Industrial Furnaces

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

SUMMARY: Under this final rule, the Environmental

Protection Agency (EPA) is expanding controls on haz-

ardous waste combustion to regulate air emissions from

the burning of hazardous waste in boilers and industrial

furnaces. Currently, such burning is exempt from regula-

tion. EPA is promulgating this final rule after considering

public comment on rules proposed on May 6, 1987, plus

the comments on EPA’s supplemental notices of October

26, 1989 and April 27, 1990.

These rules control emissions of toxic organic com-

pounds, toxic metals, hydrogen chloride, chlorine gas, and

particulate matter from boilers and industrial furnaces

burning hazardous waste. In addition the rules subject

owners and operators of these devices to the general fa-

cility standards applicable to hazardous waste treatment,

Storage, and disposal facilities. Further, today’s final rule

subjects hazardous waste storage units at regulated burner

facilities to part 264 permit standards. Burner storage

operations at existing facilities are generally now subject

only to interim status standards under part 265.

Finally, today’s rule takes final action on two pending

petitions for rulemaking: (1) based on a petition by Dow

Chemical Company, EPA is designating halogen acid

A

;

3

:

3

65a

furnaces as industrial furnaces under § 260.10; and (2)

based on a petition by the American Iron and Steel Insti-

tute, EPA is classifying coke and coal tar fuels produced

by recycling coal tar decanter sludge, EPA Hazardous

Waste No. KO87, as products rather than solid waste.

The rule also makes several technical corrections to regu-

lations dealing with loss of interim status for facilities

that achieved interim status as of November 7, 1984.

EFFECTIVE DATE: This final rule is effective on

August 21, 1991. Technical corrections to § 270.73 are

effective on publication.

The incorporation by reference of certain publications

listed in the regulations is approved by the Director of

the Federal Register as of August 21, 1991.

* * x “

II. Controls for Emissions of Toxic Organic Compounds

Burning hazardous waste that contains toxic organic

compounds (i.e., organic compounds listed in appendix

VIII of 40 CFR part 261) under poor combustion condi-

tions can result in substantial emissions of the toxic com-

pounds originally present in the waste as well as other

compounds, due to partial but incomplete combustion of

the constituents in the waste. The quantity of toxic organic

compounds emitted depends on the concentrations of the

toxic compounds in the waste, the waste firing rate (i.e.,

the percentage of total fuel provided by the hazardous

waste to the boiler or industrial furnace), and the com-

bustion conditions under which the waste is burned. The

risk posed by the emissions depends on the quantity and

toxicity of the compounds emitted and on the ambient

levels to which persons are exposed. Hypothetical risk

assessments show that under poor combustion conditions

that achieve only 99 percent or 99.9 percent destruction

and removal efficiency (DRE) of organic compounds,

risks to the maximum exposed individual (MEI) from

66a

unburned carcinogenic organics found in hazardous waste

can result in increased lifetime cancer risks of 10.”

The Agency is controlling the emissions of toxic or-

ganic compounds from boilers and industrial furnaces that

burn hazardous waste with two performance standards.

First, a 99.99 percent destruction and removal efficiency

(DRE) standard for principal organic hazardous consti-

tuents (POHCs) in waste feeds will ensure that constitu-

ents in the waste are not emitted at levels that could pose

a significant risk in virtually all scenarios of which the

Agency is aware.’' Second, limits on flue gas concentra-

tion of carbon monoxide (CO) and, where specified, hy-

drocarbons (HC) will ensure that combustion devices op-

erate continuously at high combustion efficiency and emit

products of incomplete combustion (PICs) at levels that

will not pose adverse effects on public health and the en-

vironment. The basis for these standards is discussed

below.

A. DRE Standard

As proposed, the Agency is promulgating a 99.9999%

DRE standard * for those acutely hazardous wastes listed

® We note, moreover, that some boilers and many industrial fur-

naces are already subject to a particulate matter (PM) standard

under a NSPS, SIP, or PSD program and the applicable PM stand-

ard is generally more stringent than the 0.08¢r/dscf standard pro-

vided by today’s rules. Thus, these devices are already under a

regulatory compliance program for a PM standard. We note fur-

ther that the more stringent PM standard applies.

10 Engineering-Science, Background Information Decument for

the Development of Regulations to Control the Burning of Hazard-

ous Waste in Boilers and Industrial Furnaces, Volume III, January

1987 (NTIS # PB 87 173845).

11 Except that 99.9999°, DRB is required for dioxin-listed hazard-

ous waste.

12 The proposed formula for calculating DRE has been revised in

the final rule (see § 266.104(a)), to make it mathematically correct

considering use of significant figures.

67a

because they contain dioxin’ (and waste mixed with

those wastes), and a 99.99 percent DRE performance

standard for all other wastes. This standard is protective,

it can be readily achieved by boilers and industrial fur-

naces, and it will ensure that the Agency’s controls are

consistent for all combustion devices (boilers, industrial

furnaces, and incinerators) that pose similar risks.

Hypothetical risk assessments have shown that a 99.99

percent DRE standard for POHCs is protective of risks

posed by emissions of organic constituents in the waste in

virtually every scenario of which the Agency is aware.”

(EPA considers elsewhere in this notice the issue of

products of incomplete combustion.) Increased lifetime

cancer risks to the maximum exposed individual (MEI)

from an incinerator operating at 99.99 percent DRE

would generally be 10° or less. Threshold (i.e., noncar-

cinogenic) organic compounds also would not be ex-

pected to be present in emissions from hazardous waste

burned in boilers and industrial furnaces at levels that

could pose a health hazard under the 99.99 percent DRE

standard.

EPA, is aware, however, that the DRE standard does

not directly control the mass emission rate (e.g., pounds

per hour) of unburned toxic organic constituents in the

waste. Although three are hypothetical situations in which

risks from POHCs could be significant under a 99.99 per-

cent DRE standard (e.g., boilers or industrial furnaces

located in urban areas burning high volumes of waste

with high concentrations of highly potent carcinogenic

organics) the Agency is not aware that any such situa-

tions are actually occurring. If, however, during the per-

Init process, it appears that a high-risk scenario may exist,

‘SEPA Hazardous Wastes FO20, FO21, FO22, FO238, FO26,

and FO27.

™ Engineering Science, op. cit.

68 1

permit officials may use the omnibus permit authority ** of

section 3005(c)(3) of the Resource Conservation and

Recovery Act (RCRA) codified at § 270.32(b)(2) to

develop permit requirements, as necessary, to protect hu-

man health and the environment (e.g., by requiring a

99.9999 percent DRE, by limiting the feed rate of par-

ticular toxic compounds, or by setting a mass emissions

rate).

1. Selection of POHCs for DRE Testing

In the April 27, 1990 proposed rule to amend the in-

Cinerator standards (55 FR 17890), EPA outlined the

considerations to be made by applicants and permitting

officials in selecting POHCs for DRE trial burns. Given

that the DRE implementation procedures for boilers and

industrial furnaces (BIFs) are identical to those for in-

cincerators, the discussions in the incinerator proposed

rule are pertinent to this rule.

A major factor in selecting a POHC for DRE testing

is its incinerability relative to other toxic organic com-

pounds. A number of indices can be used to predict in-

cinerability including heat of combustion, autoignition

temperature, thermal stability under excess oxygen condi-

tions, and thermal stability under low oxygen (substoichio-

metric) conditions. An incinerability ranking based on

thermal stability at low oxygen concentrations (TSLoO.)

shows promise and is currently seeing widespread use in

incinerator permits. A number of commenters responded

to EPA’s request for comment on the use of the TSLoO.

15 EPA notes that permit writers choosing to invoke the omnibus

permit authority of § 270.32(b) (2) +o add conditions to a RCRA

permit must show that such conditions are necessary to ensure

protection of human health and the environment and must provide

support for the conditions to interested parties and accept and

respond to comment. In addition, permit writers must justify in

the administrative record supporting the permit any decisions based

on omnibus authority.

69a

index for POHC selection. In general, they raised no

problems with use of the index. Their main concern ap-

peared to be that EPA choose one index and apply it

consistently.

The Agency, however, is not requiring the use of a

particular index. Due to the various “failure modes” dif-

ferent organic compounds are susceptible to during the

destruction process in a combustion device, and the evolv-

ing state of knowledge in this area, the Agency feels that

the POHC selection process is technically complex, and

that it should involve a number of considerations, rather

than simply one incinerability ranking. Thus, EPA in-

stead recommends that permit writers and applicants con-

sider these indices and other relevant factors and use

their judgment and applicable guidance on a case-by-case

basis to select POHCs for the trial burn.

2. Use of POHC Surrogates

A number of laboratory-scale, pilot-scale, and_field-

scale tests have been conducted to investigate the use of

nontoxic tracer surrogates (e.g., sulfur hexafluoride (SF.))

rather than POHCs selected from appendix VIII of part

261. Sulfur hexafluoride, in particular, shows promise as

a conservative tracer surrogate for compounds which are

susceptible to the thermal failure mode (i.e., it is difficult to

destroy unless sufficiently high temperatures are reached).

It is readily available commercially, and is inexpensive

and nontoxic. POHCs that are listed on appendix VIII,

especially in situations where spiking is required to in-

crease concentrations in a waste for DRE testing, are

often difficult to obtain, are expensive, and are a health

hazard to operators. Sampling and analysis techniques

for SF. are well documented because of its long use as a

tracer gas for monitoring ambient air and are more

straightforward (simpler) and less expensive than sam-

pling techniques for appendix VIII, part 261, compounds

(e.g., VOST and MMS).

70a

Numerous commenters responded to EPA’s request for

information on an approach for simplifying and standard-

izing DRE testing. Commenters supported standardiza-

tion of DRE testing provided the approach is equitable

for all boilers, industrial furnaces, and incinerators. Com-

ments were received in support of all three approaches

proposed by EPA (“POHC soup,” surrogates, and specific

waste analysis). Commenters generally supported use of

surrogates in lieu of extensive waste analysis for design

of DRE tests. Other commenters suggested using a lim-

ited number of major waste constituents as POHCs,

such as carbon tetrachloride, perchloroethylene, trichloro-

ethylene, and monochlorobenzene, until it can be shown

that a universal surrogate, such as sulfur hexafluoride

(SF.), is comparable in demonstrating DRE performance.

Sulfur hexafluoride was recommended by some comment-

ers aS a good surrogate choice based on the high accur-

acy of results with the compound and ease of use.

However, since the April 27 proposed rule, data have

become available showing cases where other organic com-

pounds were more difficult to destroy than SF. under con-

ditions of low oxygen. This is consistent with theory,

since SF; can be destroyed under conditions of high tem-

perature and low oxygen relatively easily compared to

compounds which need oxygen to decompose. Thus, al-

though SF. appears to show promise as a surrogate for

testing the thermal failure mode because of its stability

at high temperatures, it does not appear to be adequate

as a “universal” surrogate, since it does not test for low

oxygen or “mixing” failure.

Nevertheless, today’s rule explicitly allows the use of

Surrogate, nontoxic compounds for selection as POHCs

for DRE testing. As for any other type of POHC, the

use of such compounds must be approved on a case-by-

case basis by permit officials based on technical support

provided by the applicant. The applicant’s trial burn

plan must adequately document the correlation between

ABlininin es rishi bic Plies cpite AR lea CBRL ad lit DS AD I AAD EB chat tS Nie ARAL. AE em Gelli t te tae

Tila

the DRE of the surrogate compound and the DREs of

the appendix VIII compounds anticipated to be burned

at the facility under the facility’s permit.

* * * *

B. PIC Controls

The burning of hazardous waste, like virtually any com-

bustion process, results in emissions of incompletely

burned organic compounds, or products of incomplete

combustion (PICs). PICs can be unburned organic com-

pounds that were present in the waste, thermal decom-

position products resulting from organic constituents in

the waste, or compounds synthesized during or immedi-

ately after combustion. If a device is operated under poor

combustion conditions, substantial emissions of PICs can

result (even if 99.99% DRE is demonstrated for POHCs;

this just means that the POHC is not being emitted in its

original form). However, it should be noted that esti-

mates of risk to public health resulting from PICs, based

on available emissions data, indicate that PIC emissions

do not pose significant risks when BIFs and incinerators

are operated under good combustion conditions.

Nonetheless, the Agency is concerned about the poten-

tial health risk from PICs because the available informa-

tion has serious limitations. It is very difficult to identify

and quantify emissions of thousands of different com-

pounds, some of which are present in minute quantities.

Although elaborate and expensive sampling and analytical

techniques have been developed that can identify many

PICs, many others cannot be identified and quantified

with current techniques. Further, health effects informa-

tion adequate to conduct a health risk assessment con-

sidering exposure via direct inhalation is not currently

available on many organic compounds that may be emitted

from combustion systems. Finally, the available public

health and environmental risk assessment tools are incom-

plete. Data are currently available to conduct indirect

72a

exposure analyses (e.g., exposure via the food chain,

drinking water, dermal exposure) on only a few organic

compounds, and it will be some time before the Agency

will be able to quantify impacts on ecological resources

on a site-specific basis for purposes of establishing emis-

sions standards.

Given the limited information about the hazards that

PIC emissions may pose, EPA believes it is prudent to

require that boilers and industrial furnaces operate at a

high combustion efficiency to minimize PIC emissions.

EPA is promulgating today a two-tiered approach to

control PICs as discussed in the October 29, 1989, supple-

mental notice (54 FR 43721-28). Under Tier I, CO is

limited to 100 ppmv. Under Tier If, the Agency is pro-

viding an alternative standard. The facility need not meet

the 100 ppmv CO limit provided the facility can demon-

strate that the hydrocarbon (HC) concentration in the

stack gas does not exceed a good operating practice-based

limit of 20 ppmv. The alternative CO limit under Tier II

must be established during the test burn based on the

average overall runs of the highest hourly rolling average

for each run.

1. Use of aCO Limit to Control PICs.

Generally accepted combustion theory holds that low

CO flue gas levels combined with low CO flue gas levels

combined with low excess oxygen levels indicate a boiler,

industrial furnace, or incinerator is operating at high com-

bustion efficiency. Operating under high combustion effi-

ciency helps to ensure minimum emissions of unburned

(or incompletely burned) organics. In the first stage of

the combustion of hazardous waste fuel, the POHCs

thermally decompose in the flame to form other, usually

smaller, compounds termed products if incomplete com-

bustion. In this first stage of combustion, these PICs also

decompose to form CO.

en eC Te a et

APRS RR

73a

The second stage of combustion involves the oxidation

of CO to CO, (carbon dioxide). The CO to CO, step is

the slowest (rate-controlling) step in the combustion proc-

ess because CO is considered to be more thermally stable

(difficult to oxide) than other intermediate products of

the combusion of hazardous waste constituents. Because

fuel is being fired continuously, these combusion stages

occur simultaneously.

Thus, in the waste combustion process, the “destruc-

tion” of POHCs is independent of the flue gas CO levels.

CO flue gas levels cannot be correlated with DREs for

POHCs, and may also not correlate well with PIC destruc-

tion. Although some emissions data indicate a weak cor-

relation between CO and PICs, the data generally indicate

that there is a relationship between the two parameters:

When CO is low, PIC emissions are relatively low. The

converse may not hold: when CO is high, PICs may or

may not be high.

Low CO is an indictaor of the status of the CO to CO.

conversion process, the last rate-limiting oxidation process.

Because oxidation of CO to CO. occurs after the destruc-

tion of a POHS and its (other) intermediates (PICs), the

absence of CO is a useful indication of POHC and PIC

destruction. The presence of high levels of CO in the flue

gas is a useful indication of inefficient combustion, and

at some level of elevated CO flue gas concentration, is an

indication of the failure of the PIC and POHC destruction

process.

EPA believes it is necessary to limit CO levels to levels

that are indicative of high combustion efficiency because

the precise CO level that indicates significant failure of

the P!C and POHC destruction process is not known. In

fact, this critical CO level may depend on site-specific and

event-specific factors (e.g., fuel type, fuel mix, air-to-fuel

ratios, and the rate and extent of changes in these and

other factors that affect combustion efficiency). EPA be-

lieves that limiting CO levels is also reasonable because:

74a

(1) It is a widely practiced approach for monitoring

combustion efficency—some boilers and industrial furnaces

are already equipped with CO monitors, and many are

equipped with flue gas oxygen monitors; (2) the monitors

may pay for themselves through fuel savings resulting from

operation of the boiler or industrial furnace closer to maxi-

mum combustion efficiency; and (3) well-designed and

well-operated boilers and industrial furnaces can readily

be operated in conformance with either the 100 ppmv CO

limit under Tier I, or the 20 ppmv HC limit under Tier II.

2. Tier I PIC Controls: 100 ppmv CO Limit

a. Basis for the 100 ppmv CO Limit. The May 6,

1987 proposed rule would have applied the same CO

emission limits to all boilers and industrial furnaces: a

lower limit of 100 ppmv over an hourly rolling average

and a 500 ppmv limit over a 10-minute rolling average.

The hazardous waste feed would be shut off automatically

if either limit was exceeded. However, the hazardous

waste would be cutoff immediately once the 500 ppmv

limit was exceeded while the waste feed would be cutoff

within 10 minutes if the 100 ppmv limit was exceeded.

Further if the hazardous waste feed was cutoff more than

10 times in a month, the proposed rule would have pro-

hibited further hazardous waste burning pending review

and approval by enforcement officials. The lower limit of

100 ppmv was selected as representative of steady-state

high efficiency combustion conditions resulting in PIC

emissions that would not pose a significant risk. The

higher limit of 500 ppmv was proposed to limit the fre-

quency of emission spikes that inevitably accompany rou-

tine operational “upsets,” such as load changes and start-

ups of waste firing.

While two commenters stated that the proposed 100

ppmv CO limit is arbitrary, six commenters supported the

Tier I CO limit of 100 ppmv. One commenter supported

both the 100 ppmv CO limit over an hourly rolling aver-

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75a

age, and the 500 ppmv CO limit over a 10-minute rolling

average. Three additional commenters also expressed sup-

port for the 500 ppmv CO limit over a 10-minute rolling

average. Three other commenters supported a 500 ppmv

CO limit over an hourly rolling average, and stated that a

maximum 1,000 ppmv CO limit can be included in addi-

tion to a 10-minute average.

Many commenters opposed the CO trigger limits and

associated limits on the number of waste feed cutoffs

proposed in May 1987. Primarily, commenters objected

to one set of CO emission limits as applicable to all

boilers and industrial furnaces. Further, they argued that

PIC emissions will not be significant if, when the waste

feed is cutoff, the combustion chamber temperatures are

maintained while the waste remains in the chamber. Six

commenters argued that the trigger limits will result in

increased NOx emissions. One commenter stated that NO:

and CO cannot be lowered simultaneously, and added

that many low NO: boilers may not be able to meet these

CO limits. As an alternative, one commenter stated that

a higher Tier I CO limit should be allowed for less toxic

emissions; however, this commenter did not provide an

alternative approach for identifying the toxicity of emis-

sions. One commenter suggested that EPA retain two

alternatives to the CO standard: establishing an alterna-

tive standard based on nonmethane, ethane hydrocarbon

(NMEHC) emissions, and a case-by-case risk assessment

approach.

As a result of these and other comments and further

evaluation, EPA is promulgating the Tier I limits based

on a maximum hourly rolling average CO limit of 100

ppmvy, corrected to 7 percent flue gas oxygen content. If

this limit is exceeded, the hazardous waste feed must be

automatically and immediately cutoff. The final rule does

not restrict the number of waste feed cutoffs because:

(1) Combustion chamber temperatures must be main-

tained after a cutoff; and (2) the number of cutoffs will

76a

be minimized by allowing CO concentrations to be aver-

aged over a 60-minute period (i.c., the hourly rolling

average) and by the recommended use of pre-alarms to

provide time to remedy the problem or to allow a staged

waste cutoff before reaching the CO limit. Nonetheless,

the Agency retains the authority to limit the frequency

of cutoffs as the facts warrant. See § 266.102(e)(7) (ii).

The final rule does not include the proposed 500 ppmv

rolling average over a 10-minute limit on CO because we

do not believe it is needed given that the final rule re-

quires immediate waste feed cutoff when the 100 ppmv

hourly rolling average limit is exceeded. In addition,

several commenters argued that the 500 ppmv limit was

arbitrary.

In addition, EPA is promulgating alternative (Tier IT)

standards (discussed below), as discussed in the October

1989 supplemental notice, for control of PIC emissions

from boilers and industrial furnaces. The Agency believes

that the alternative controls will allow facilities flexibility

in meeting both the PIC controls and NO. emissions

standards (imposed under different regulatory authori-

tics) simultaneously. The Agency believes that the alter-

native, Tier II standards for control of PIC emissions

are needed to address issues and concerns raised by com-

enters on the proposed rule.

The 100 ppmv CO limit promulgated today for Tier I

is indicative of steady-state (i.ec.. normal), efficient com-

bustion conditions. The time-weighed average for the CO

limit is provided to accommodate the CO spikes that in-

evitably occur during routine “upsets,” such as when

hazardous waste fuel firing starts, when there is a load

change on an industrial boiler, or when the composition

of fuels varies. Given that CO is a sensitive indicator of

overall combustion conditions, and that it may be a con-

servative indicator of POHC and PIC destruction, EPA

is implementing CO control limits based on time-weighted

averages of exceedances rather than implementing fixed

ye eee)

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CO limits. Fixed limits that do not acknowledge in-

evitable CO spikes and that do not give owners and

operators time to adjust combustion conditions actually

could result in greater emissions of PICs because each

time hazardous waste firing is interrupted, CO concentra-

tions increase, and emissions of incompletely burned

organics may also increase. (Note, however, that there

is a requirement to maintain combustion chamber tem-

perature after a waste feed cutoff while waste remains in

the chamber that is intended to minimize HC emissions

after a cutoff.) Thus, any controls on CO must balance

the effects of organic emissions that may result from

overly stringent CO limits that require frequent waste

feed interruptions with the effects of emissions resulting

from less stringent controls that acknowledge inevitable

CO spikes.

The Agency has considered whether the 100 ppmv CO

limit is, in fact, too stringent given that we acknowledge

the limit was chosen from within the range of reasonable

values that may be considered indicative of good com-

bustion conditions-—50 to 250 ppmv. We attempted to

obtain CO/time profiles from a number of well-operated

devices to determine the percentage of time the facilities

operated within particular CO ranges.” We thought to

use this data to predict the frequency of waste feed cut-

offs that would be required at various CO limits. Un-

fortunately, the analyses could not be conducted because

the facilities we evaluated were operating under specific

CO limits and their CO levels never exceeded those limits

when burning hazardous waste. We found that the facili-

ties learned to comply with the CO limits they had to

meet.

Moreover, we believe that the 100 ppmv CO limit is

reasonable for a number of reasons. Not only is it within

19? Energy and Environmental] Research Corporation. “Guidance

on Metal and PIC Emissions from Hazardous Waste Incinerators”,

Final Report, September 21, 1990.

78a

the range of CO levels that are indicative of good com-

bustion conditions, but the Agency believes that it is not

too low because: (1) It is higher than the technology-

based 50 ppmv CO level EPA requires for boilers burning

waste PCBs (see 40 CFR part 761); (2) it is higher than

the CO limits included in many hazardous waste incinera-

tor permits; (3) the Agency explicitly encourages the

use of pre-alarms to minimize the frequency of automatic

waste feed cutoffs; *' and (4) the limit is implemented on

an hourly rolling average basis which allows and mini-

mizes the effects of short-term CO spikes.

We aslo note that the Agency may soon promuigate

regulations for municipal waste combustors (MWCs) that,

among other controls, may limit CO concentrations to

50, 100, or 150 ppmv (as proposed), depending on the

type of MWC, over a four hour rolling average and dry-

corrected to 7% oxygen. The MWC limits are technol-

ogy-based—they represent levels readily achievable by

well-designed and well-operated units. EPA does not be-

lieve that the MWC limits present a conflict with the

100 ppmv (with provisions for an alternative higher limit

if HC concentrations are less than 20 ppmv) limit for

BIFs under today’s rule. The Agency is confident that

the BIF rule is protective because the Agency has deter-

mined that, when CO levels are less than 100 ppmv, PIC

emissions do not pose significant risk. Thus, although the

100 ppmv limit is not a best demonstrated technology-

based limit (many BIFs (and hazardous waste incinera-

tors) readily operate at CO levels well below 100 ppimv),

20 We note that the Agency proposed on April 27, 1990 to apply

to hazardous waste incinerators the same CO/HC limits that today’s

rule applies to BIFs.

“1 If the CO limit is “too low” for a given facility’s design and

operating conditions, then frequent waste feed cutoffs may occur.

Frequent waste feed cutoffs may actually increase PIC emissions

because the resulting perturbation to the combustion system may

upset the termperature, oxygen, fuel relationships need for complete

combustion.

79a

the 100 ppmv CO limit will ensure protection of human

health and the environment.

As stated above, the CO limits are based on a flue gas

oxygen content of 7 percent. One commenter indicated

that EPA’s reasoning for using the CO correction of 7

percent oxygen is not clear. The commenter believes the

7 percent correction factor is unfair for thermal units

which, under normal conditions, need to operate at oxy-

gen levels greater than 7 percent, yet operate with low

levels of CO and HCs. EPA believes that correcting CO

levels for flue gas oxygen content is necessary because

without this correction, high CO flue gas concentrations

could be diluted by high rates of excess oxygen. In to-

day’s rule, EPA is requiring that CO be corrected to a

flue gas oxygen content of 7 percent because the majority

of boilers and industrial furnaces achieve high combustion

efficiency at optimum flue gas oxygen levels ranging from

3 percent to 10 percent. The optimum oxygen level to

achieve high combustion efficiency for a given device will

vary depending on factors such as fuel mix and boiler

load. In general, large combustion devices (in terms of

heat input capacity) have optimum oxygen requirements

on the low end of the range of oxygen content, while

smaller units require higher oxygen levels, EPA believes

that a correction level of 7 percent is reasonable since

this oxygen level is in the middle of the range of typical

operation for all devices and since the majority of devices

burning hazardous waste fuels have moderate heat input

capacities (e.g., 20-150 MM Btu/hr). In addition, 7 per-

cent oxygen is the reference level for the existing particu-

late standard for hazardous waste incinerators under 40

CFR 264.343(c).

Moreover, the oxygen level to which CO values are

corrected is not significant since the CO levels for all

facilities are corrected to a common basis. If the oxygen

correction level were changed from 7% to some other

value, then theoretically, the CO limit would have to be

80a

adjusted accordingly, and the effect on individual facili-

ties would remain the same.

b. Implementation of the 100 ppmv CO Limit. The

procedures used to implement the 100 ppmv CO limit

are discussed below, including oxygen and moisture cor-

rection, format of the limit, and compliance with the

limit.

Oxygen and Moisture Correction. The CO limit under

Tier I (and Tier II) is on a dry gas basis corrected to 7

percent oxygen. The oxygen correction normalizes the

CO date to a common base, accounting for the variation

in design and operation of the various combustion de-

vices. In-system leakage, facility size, and waste feed

type are other factors that cause oxygen concentrations

to vary widely in flue gases and were considered in selec-

tion of the oxygen correction factor. The correction for

moisture normalizes the CO data that results from the

different types of CO monitors used at facilities (e.g.,

extractive, in situ, etc.). EPA’s evaluation indicates that

application of the oxygen and moisture corrections can

change measured CO levels by a factor of two in some

cases.

Measured CO levels must be corrected continuously for

the amount of oxygen in the stack gas according to the

formula:

CO.=COn & 14/(E—Y)

Where:

CO. is the corrected concentration of CO in the

stack gas, COm is the measured CO concentration

according to guidelines specified in Methods Manual

for Compliance with the BIF Regulations (Methods

Manual)”, E is the percentage of oxygen contained

22U.S. EPA, Methods Manual for Compliance with the BIF

Regulations, December 1990. Available from the National Informa-

tion Service NTIS), 5285 Port Royal Road, Springfield, VA 22161,

(703) 487-4600. The document number is PB 91-120-006.

8ia

in the air used for combustaion, and Y is the meas-

ured oxygen concentration on a dry basis in the

stack. Oxygen must be measured at the same stack

location at which CO is measured under procedures

that are also provided in the Methods Manual.

Format of the CO Limit. EPA proposed that the CO

limits be implemented under either of two alternative

formats, the hourly rolling average format or the time-

above-a-limit format. Under this approach, applicants

would select the preferred approach on a case-by-case

basis. Comments were received in support of both alter-

native formats. Based on further evaluation of the two

formats and for reasons explained below, EPA is requir-

ing use of the hourly rolling average format for com-

pliance with this rule.

Under the hourly rolling average format, a facility

must measure and record CO levels as an hourly rolling

average. This approach a'lows instantaneous CO peaks

without requiring a cutoff provided that at other times

during the previous hour CO levels were correspondingly

below the limit. This approach requires a CO monitoring

system that can continuously measure and adjust the

oxygen correction factor and compute the hourly rolling

averages.

Under the proposed time-above-a-limit format, dual CO

limits would be established in the permit: the first as a

never-to-exceed limit and the second as lower limit for

cumulative exceedances of no more than a specified period

of time in an hour. These limits and the time duration

of the exceedances would be established on a case-by-case

basis by equating the mass emissions (peak areas) in both

the formats (time-above-a-limit and hourly rolling average

formats) so that the regulation would be equally stringent

in both cases. The instruments needed for the time-

above-a-limit format would include a CO monitor, a re-

ccrder, and a timer that could indicate the cumulative

time of exceedances in every clock hour, at the end of

82a

which it would be recalibrated (manually or electroni-

cally). Oxygen would not be measured continuously in

this format; instead an oxygen correction factor would be

determined from operating data collected during the trial

burn. Subsequently, oxygen correction factors would be

determined annually or at more frequent intervals speci-

fied in the facility permit.

EPA has re-examined the time-above-the-limit format

in light of several comments received and has decided to

delete this alternative in today’s final rule because:

1. Since a facility would not be required to meas-

ure oxygen continuously under this format, there

would be no assurance that a facility would be op-

erated reasonably close to the oxygen level at which

it operated during the trial burn. Even with a daily

determination of an oxygen correction factor, there

would be the possibility of “gaming” by the facility

(operating the facility at low oxygen levels during

the short test period when the oxygen is measured,

getting a favorable correction factor established on

the basis, and thereafter letting the facility operate

at high oxygen levels). Since the major advantage

of this format was the cheaper cost due to the omis-

sion of the oxygen cost due to the omission of the

oxygen monitoring requirement, adding continuous

oxygen monitoring to this format would remove this

advantage as well; and

2. The proposed computations for converting

hourly rolling averages to this format would be cum-

bersome, inexact, and above all, very restrictive. To

obtain a conservative conversion, a permit writer

would have to assume that CO levels will remain at

the established never-to-exceed limit for the full

specified time in the hour, and at the lower estab-

lished limit the rest of the time. The CO limits od-

tained by these computations would be very restric-

tive. As an example, a conversion of a Tier I limit

83a

of 100 ppmv hourly rolling average for a facility

having a single CO excursion of 4-minutes duration

in which the peak level was 1,000 ppmv, would re-

sult in a permit specifying that for the remaining 56

minutes, CO could not exceed 34 ppmvy, a very re-

strictive limit. For example, a CO profiile of 38

ppmv for 55 minutes and 40 ppmv for the remaining

5 minutes would result in a violation.

Compliance with the Tier I CO Limit. The Agency

considered a number of alternative approaches for evalu-

ating CO readings during trial burns to determine com-

pliance with the 100 ppmv limit, including: (1) The

time-weighted average (or the average of the hourly roll-

ing averages); (2) the average of the highest hourly roll-

ing averages for all trial burn runs; or (3) the highest

hourly rolling average. The time-weighted average alter-

native provides the lowest CO level that could reasonably

be used to determine compliance, and the highest hourly

rolling average alternative provides the highest CO level

that could reasonably be used. EPA is requiring the use

of the most conservative of these approaches, the highest

hourly rolling average approach, for interpreting trial

burn CO emissions for compliance with the 100 ppmv

Tier I limit. (This approach is conservative because trial

burn CO levels are compared to the maximum CO al-

lowed under Tier I—100 ppmv.) EPA believes this con-

servative approach is reasonable since compliance with

the Tier I CO limit allows applicants to avoid the Tier II

requirement of evaluating HC emissions to provide the

additional assurance (or confirmation) that HC emissions

do not exceed levels representative of good operating

practice.

3. Tier IJ PIC Controls: Limits on CO and HC

a. Need for Tier II PIC Controls. Commenters indi-

cated that several types of boilers and many cement kilns

will not be able to meet the (Tier I) 100 ppmv CO limit

84a

proposed in May 1987 even though HC concentrations

will not be high at elevated CO levels. For example,

boilers that burn residual oil or coal typically operate

with CO emission levels above the Tier 1 100 ppmv CO

limit because of inherent fuel combustion characteristics,

equipment design constraints, routine transient combus-

tion-related events, requirements for multiple fuel flexi-

bility, and requirements for compliance with NOx emis-

sion standards established under the Clean Air Act. At-

tempts to reduce CO emissions from these devices to meet

the Tier I limit could prove unsuccessful. In addition,

there is a possibility that thermal efficiency could be ad-

versely affected if these attempts are successful.

Similarly, industry and trade groups for the cement

industry voiced strong opposition to the 100 ppmv CO

limit for cement kilns. These commenters indicated that

some cement kilns, especially modern precalciners, rou-

tinuely emit CO above the Tier I 100 ppmv limit. In

general, commenters indicated that while the Tier I limit

may be appropriate for combustion devices in which only

fuel (fossil or hazardous waste) enters the combustion

chamber, it is inappropriate for cement kiln and other

product kilns in which massive amounts of feedstocks are

processed. These feedstocks can generate large quantities

of CO emissions which are unrelated to the combustion

efficiency of burning the waste and fuel. Whereas all the

CO from boilers and some industrial furnaces is combus-

tion-generated, the bulk of the CO from product kilns

can be the result of process events unrelated to the com-

bustion conditions at the burner where wastes are in-

troduced.” Therefore, limiting CO emissions from these

combustion devices to the Tier I 100 ppv leve’ may be

difficult and may not be warranted as a means of mini-

mizing risk from PICs.

73 For example, CO can be generated from the trace levels of

organic matter contained in the raw materials as the materials

move down the kiln from the “cold” feed end to the “hot” end where

the fuel and waste is fired and the product is discharged.

85a

In summary, commenters argued that these are specific

instances and classes of combustion devices for which the

Tier I CO limit would be difficult or virtually impossible

to meet, and thus this limit is inappropriate since EPA

has not established a direct correlation between CO emis-

sions, PIC emissions, and health risks.

In light of these concerns, commenters suggested that

EPA establish CO limits for specific categories of com-

bustion devices based on CO levels achieved by units

operating under best operating practices (BOP). The

Agency considered this approach but determined that

equipment-specific CO trigger limits would be difficult to

establish and support and would not necessarily provide

adequate protection from PIC emissions. Nonetheless,

EPA believes that the CO limits should be flexible to

avoid major economic impacts on the regulated com-

munity since no direct correlation has been established

between exceeding the 100 ppmv CO limit and increasing

health risks from PIC emissions. EPA believes, however,

that at some elevated CO level PIC emissions would pose

significant risk. At this time, EPA is unable to identify a

precise CO trigger level since the trigger level may vary

by the type and design of the combustion device and the

fuel mix used in the device. Consequently, EPA has

established a two-tiered approach to control PICs. Under

Tier I, CO is limited to 100 ppmv or less, as discussed

above. Under Tier II, CO levels can exceed 100 ppmv

provided that the owner or operator demonstrate that the

HC concentration in the stack gas does not exceed a good

operating practice-ba

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Appendix — Cement Kiln Recycling Coalition v. Browner · 513 U.S. 816 | Frix