02/18/2009
    15:28 FAX
    001/008
    OP1ONAL
    FO9M
    9
    7-9O)
    FAX
    TRANSMITTAL
    [oPaQ
    Fax
    U
    Fxx
    7-7358
    3
    5O9-1O1
    3NERAL
    SV)CE5
    ACMINISTRATICN

    I
    002/008
    02/18/2008
    15:28
    FAX
    ..
    f
    UNITED
    STATES
    ENVIRONMENTAL
    PqOTECTI0N
    AGENCY
    WASHINGTON,
    D.C.
    20460
    %
    AflD
    26
    OPICEOF
    SOLID
    WASTE
    AND
    EMRGENCV
    SPCN5
    SUBJECT:
    F006
    Recycling
    FROM:
    Sylvia
    K.
    LOwr
    Office
    of
    Solid
    Wasl(e
    (05—300)
    TO:
    Hazardous
    Waste
    Management
    Division
    Directors
    Regions
    I-X
    It
    has
    come
    to
    the
    attention
    of
    EPA
    Headquarters
    that
    tfta!ly
    of
    the
    Regions
    and
    authorized
    States
    are
    being
    requested
    to
    maice
    determinations
    on
    the
    regulatory
    status
    of
    various
    recycling
    schemes
    for
    FOOG
    electroplating
    sludges.
    In
    particular,
    companies
    have
    claimed
    that
    F006
    waste
    is
    being
    recycled
    by
    being
    used
    as:
    U)
    an
    ingredient
    in
    the
    manufacture
    of
    aggregate,
    (2)
    an
    ingredient
    in
    the
    manufacture
    of
    cement,
    and
    (3)
    feedstock
    for
    a
    metals
    recovery
    smelter.
    The
    same
    company
    may
    make
    such
    requests
    of
    more
    than
    one
    Region
    and/or
    State
    Given
    the
    complexities
    of
    the
    regulations
    governing
    recycling
    vs.
    treatment
    and
    the
    definition
    of
    solid
    waste,
    and
    the
    possible
    ramifications
    of
    determinations
    made
    in
    one
    Region
    affecting
    another
    Region’s
    determination,
    it
    is
    extremely
    important
    that
    such
    determinations
    are
    consistent
    and,
    where
    possible,
    coordinated.
    Two
    issues
    are
    presented.
    The
    first
    issue
    is
    whether
    these
    activitie,
    aze
    legitimate
    recycling,
    or
    rather
    uSt
    some
    form
    of
    treatmentg.called
    •recycling
    in
    an
    attempt
    to
    evade
    regilation.
    Second,
    ssuming
    the
    activity
    is
    not
    sham
    recycling,
    the
    issue
    is
    whet
    the
    activity
    is
    a
    type
    of
    recycling
    that
    is
    Subject
    to
    regulation
    under
    sections
    261.2
    and
    261.6
    or
    is
    it
    excluded
    from
    our
    authority.
    With
    respect
    to
    the
    issua
    of
    whether
    the
    activity
    is
    sham
    recycling,
    this
    question
    involves
    assessing
    the
    intent
    Of
    the
    owner
    or
    operator
    by
    evaluating
    circumstantial
    evidence,
    always

    003/008
    02/tS/2009
    15:29
    FAX
    —2—
    a
    difficult
    task.
    Dasically,
    the
    determination
    rests
    on
    whether
    the
    secondary
    material
    is
    ‘commodity’-like.”
    The
    main
    environmental
    considerations
    are
    (1)
    whether
    the
    secondary
    material
    truly
    has
    value
    as
    a
    raw
    material/product
    (i.e.,
    is
    it
    lik:ely
    to
    be
    abandoned
    or
    mismanaged
    prior
    to
    reclamation
    rather
    than
    being
    reclaimed?)
    and
    (2)
    whether
    the
    recycling
    process
    (including
    ancillary
    storage)
    is
    likely
    to
    release
    hazardous
    constituents
    (or
    otherwise
    pose
    risks
    to
    human
    health
    and
    the
    environment)
    that
    are
    different
    from
    or
    greater
    than
    the
    processing
    of
    an
    analogous
    raw
    material/product.
    ac
    ent
    to
    this
    memorandum
    sets
    out
    relevant
    factors
    in
    more
    detail.
    If
    the
    activity
    is
    not
    a
    sham,
    then
    the
    question
    is
    whether
    it
    is
    regulated.
    If
    1006
    waste
    is
    used
    as
    an
    ingredient
    to
    produce
    aggregate,
    then
    such
    aggregate
    would
    remain
    a
    solid
    waste
    if
    used
    in
    a
    manner
    constituting
    disposal
    (e.g.,
    road-base
    material)
    under
    sections
    261.2(c)(l)
    and
    261.2(e)(2)(i)
    or
    if
    it
    is
    accumulated
    speculatively
    under
    section
    261.2(e)(2)(iii).
    tikewiae
    the
    £006
    “ingredient
    is
    suMect
    to
    regulation
    from
    the
    point
    of
    generation
    to
    the
    point
    of
    recycling..
    The
    aggregate
    product
    is,
    however,
    entitled
    to
    the
    exemption
    under
    40
    CFR
    266.20(b),
    as
    amended
    by
    the
    1iugirnt
    17,
    1988,
    Land
    Disposal
    Restrictions
    for
    First
    Third
    Scheduled
    Wastes
    final
    rule
    (see
    53
    FR
    31197
    for
    further
    discussion).
    However,
    if
    the
    aggregate
    is
    not
    used
    on
    the
    land,
    then
    the
    materials
    uSSd
    to
    produce
    it
    would
    not
    be
    solid
    wastes
    at
    all,
    and
    therefore
    neither
    those
    materials
    nor
    the
    aggregate
    would
    be
    regulated
    (see
    section
    261.2(g)(l)(i)).
    Likewise,
    cement
    manufacturing
    using
    F006
    waste
    as
    an
    ingredient
    would
    yield
    a
    product
    that.
    remains
    a
    solid
    waste
    if
    it
    is
    used
    in
    a
    manner
    constituting
    disposal,
    also
    subject
    to
    section
    266.20(b).
    There
    is
    an
    additional
    question
    of
    whether
    the
    cement
    kiln
    dust
    remains
    subject
    to
    the
    Bevill
    exclusion.
    Zn
    order
    for
    the
    cement
    kiln
    dust
    to
    remain
    excluded
    from
    regulation,
    the
    owner
    or
    operator
    must
    demonstrate
    that
    the
    use
    of
    £006
    waste
    has
    not
    significantly
    affected
    the
    character
    of
    the
    cement
    kiln
    dust
    (e.g.,
    demonstrate
    that
    the
    use
    of
    1006
    waste
    has
    not
    significantly
    increased
    the
    levels
    of
    Appndix
    VIII
    constituents
    in
    the
    cement
    kiln
    dust
    leachate).
    [Y.rE:
    This
    issue
    viii
    be
    addressed
    sore
    fully
    in
    the
    upcoming
    supp1ental
    proposal
    of
    the
    floiler
    and
    Industrial
    Furnace
    rule,
    which
    is
    pending
    B
    jat
    publication.
    3
    For
    1006
    waste
    used
    as
    a
    feedatock
    in
    a
    metals
    recovery
    smelter,
    the
    gency
    views
    this
    as
    a
    recovery
    process
    rather
    than
    use
    as
    an
    ingredient
    in
    an
    industrial
    process
    and,
    therefore,
    considers
    this
    to
    be
    a
    form
    of
    treatment
    that
    is
    not
    currently
    regulated
    (see
    sections
    261.2(c)
    and
    261.6(c)(l)).
    Furthermore,
    because
    this
    is
    a
    recovery
    process
    rather
    than
    a
    production
    process,
    the
    £006
    waste
    remains
    a
    hazardous
    waste
    (end
    must
    be

    02/18/2009
    15:29
    FAX
    004/008
    —3—.
    managed
    a.
    such
    prior
    to
    introduction
    to
    the
    process),
    and
    the
    slag
    from
    this
    process
    would
    normally
    be
    considered
    a
    “derived
    from”
    F006
    waste.
    However,
    for
    primary
    smelters,
    the
    slag
    may
    be
    considered
    subject
    to
    the
    BevilJ.
    exclusion
    provided
    that
    the
    owner
    or
    operator
    can
    demonstrate
    that
    the
    use
    of
    F006
    waste
    has
    not
    significantly
    affected
    the
    hazardous
    constituent
    content
    of
    the
    slag
    (1
    .
    e
    4
    ,
    make
    a
    demonstration
    similar
    to
    the
    one
    discussed
    above
    for
    the
    cement
    kiln
    dust).
    [NOTE:
    In
    the
    supplemental
    proposal
    of
    the
    Boiler
    and
    Industrial
    Furnace
    nile
    noted
    above,
    the
    Agency
    viii
    be
    proposing
    a
    definition
    of
    indigenous
    waste”
    based
    on
    a
    comparison
    of
    the
    Constituents
    fOund
    in
    the
    waste
    to
    the
    constituents
    found
    in
    an
    analogous
    raw
    material.
    Should
    the
    F006
    waste
    meet
    the
    definition
    of
    an
    “indigenous
    waste,”
    the
    waste
    would
    cease
    to
    be
    a
    waste
    when
    introduced
    to
    the
    process
    and
    the
    slag
    would
    not
    be
    derived
    from
    a
    hazardous
    waste.]
    7lso,
    you
    should
    be
    aware
    that
    OSW
    is
    currently
    reevaluating
    the
    regulations
    concerning
    recycling
    activities,
    in
    conjunction
    with
    finalizing
    the
    January
    8,
    1988
    proposal
    to
    amend
    the
    Definition
    of
    Sod
    Waste.
    While
    any
    major
    changes
    may
    depend
    on
    RCRA
    reauthorization,
    we
    are
    considering
    regulatory
    amendments
    or
    changes
    in
    regulatory
    interpretations
    that
    will
    encourage
    on-site
    recycling,
    while
    ensuring
    the
    protection
    of
    human
    health
    and
    the
    environment.
    Headquarters
    is
    able
    to
    serve
    as
    a
    clearinghouse
    to
    help
    coordinate
    determinations
    on
    whether
    a
    specific
    case
    is
    “recycling”
    or
    “treatment”
    and
    will
    provide
    additional
    guidance
    and
    information,
    as
    requested.
    Ultimately,
    however,
    these
    determinations
    are
    made
    by
    the
    Regions
    and
    authorized
    States.
    ttached
    tO
    this
    memorandwn
    is
    a
    list
    of
    criteria
    that
    should
    be
    considered
    in
    evaluating
    the
    recycling
    scheme,
    Should
    you
    receive
    a
    request
    for
    such
    a
    determination,
    or
    should
    you
    have
    questions
    regarding
    tfle
    criteria
    used
    to
    evaluate
    a
    specific
    case,
    please
    contact
    Mitch
    Kidwell,
    of
    my
    staff,
    at
    FTS
    475—8551.
    AttaChmEt

    02/18/2009 15:29
    FAX
    l}005/O08
    CkflIA
    FOR
    ZVALtTh!NG
    WIIETI
    SPE
    IS
    BEING
    RECYCLED
    The
    difference
    between
    recycling
    and
    treatment
    is
    sometimes
    thfficult’to
    distinguish.
    In
    some
    cases,
    one
    is
    trying
    to
    interpret
    ntent
    from
    circumstantial
    evidence showing
    mixed
    motivationj
    always
    a
    difficult
    proposition.
    The
    potential
    for
    abuse
    iS
    Such
    that
    groat
    care
    must
    be used
    when
    making
    a
    determination
    that
    a
    particular
    recycling
    activity
    is
    to
    go
    unregulated
    (i.e.,
    it
    is
    one of
    those
    activities
    which
    is
    beyond
    the
    scope
    of our
    jurisdiction).
    In
    certain
    cases,
    there
    may
    be
    few
    clear—cut
    answers
    to
    the question
    of
    wnetner
    a
    specific
    activity
    is
    this
    type
    of
    excluded
    recycling
    (and,
    by
    extension,
    that
    a
    secondary
    material
    is
    not
    a waste,
    but
    rather
    a
    raw
    material Or
    effective
    substitute);
    however,
    the
    following
    list
    of
    criteria
    may
    be
    useful
    in
    focusing
    the
    consideration
    of a
    specific
    activity.
    Here
    too,
    there
    may
    be
    no
    clear-cut
    answers
    but,
    taken
    as
    a
    whole,
    the
    answers
    to
    these
    questions
    should
    help
    draw
    the
    distinction
    between
    recycling
    and
    sham
    recycling
    or
    treatment.
    (1)
    Is
    the
    secondary
    material
    similar
    to
    an analoqous
    raw
    material
    or
    product?
    o
    Does
    it
    contain
    ppendix
    VIII
    constituents
    not found
    in
    the analogous raw
    material/product
    (or
    at
    higher
    levels)?
    o Does
    it
    exhibit
    hazardous
    characteristics
    that
    the
    analogous
    raw
    material/product
    would
    not?
    o
    Does
    it
    contain
    levels
    of
    recoverable
    material
    similar
    to the
    analogous
    raw
    material/product?
    o
    Is much
    more
    of
    the
    secondary
    material
    used
    as
    compared
    with
    the
    analogous
    raw
    material/product
    it
    replaces?
    Is
    only
    a
    nominal
    amount
    of
    it
    used?
    o
    is
    the
    seondary
    material
    as
    effective
    as
    the
    raw
    material
    or
    product
    it
    replaces?
    (2)
    - -imat
    degree
    of
    processing is
    required
    to
    produce
    a
    finiShed
    product?
    o
    can
    the
    secondary
    material
    be
    fed
    directly
    into
    tr
    process
    (i.e..
    direct
    use)
    or
    is
    reclamation
    (or
    pretreatment)
    required?
    o
    How
    much
    value
    does
    final
    reclamation
    add?

    2/18/2OO9
    15:29
    FAX
    OOE/OO8
    —2—
    F
    (3)
    Jftat
    is
    the
    value
    of
    tue
    secondary
    material?
    o
    Is
    it
    listed
    in
    industry
    news
    letters,
    trade
    journals,
    etc?
    o
    Does
    the
    secondary
    material
    have
    economic
    value
    comparable
    to
    the
    raw
    material
    that
    normally
    enters
    the
    process?
    (4)
    Is
    there
    a
    guaranteed
    market
    or
    the
    end
    product?
    o
    Is
    there
    a
    contract
    in
    place
    to
    purchase
    the
    “product”
    ostensibly
    produced
    from
    the
    hazardous
    secondary
    materials?
    o
    If
    the
    type
    of
    recycling
    is
    reclamation,
    is
    the
    product
    used
    by
    the
    reclaimer?
    The
    generator?
    Is
    there
    a
    batch
    toiling
    agreement?
    (Note
    that
    since
    reclaimers
    are
    normally
    ‘r5tFs,
    assuming
    they
    Store
    before
    reclaiming,
    reclamation
    facilities
    present
    fewer
    possibilities
    of
    systemic
    abuse).
    o
    Is
    the
    reclaimed
    product
    a
    recognized
    commodity?
    Are
    there
    industry-recognized
    quality
    specifications
    for
    the
    product?
    (5)
    Is
    the
    secondary
    material
    handled
    in
    a
    manner
    consistent
    with
    the
    raw
    material/product
    it
    replaces?
    o
    Is
    the
    secondary
    material
    stored
    on
    the
    land?
    o
    Is
    the
    secondary
    material
    stored
    in
    a
    similar
    manner
    as
    the
    analogous
    raw
    material
    (i.e.,
    to
    prevent
    loss)?
    o
    Are
    adequate
    records
    regarding
    the
    recycling
    transactions
    kept?
    o Do
    the
    companies involved have
    a
    history of
    mismanagement
    of
    hazardous
    wastes?
    (6)
    Other
    relevant
    factors.
    o
    fliat
    are
    the
    economics
    of
    the
    recycling
    process?
    Does
    most
    of
    the
    revenue
    come
    from
    charging
    generators
    for
    managing
    their wastes
    or
    from
    the
    sale
    of
    the
    product?
    o re
    tne
    toxic
    constituents
    actually necessary
    (or
    of
    sufficient
    use)
    to te
    product
    or
    are
    they
    just
    “along
    for
    the
    ride.”
    These
    criteria are
    drawn
    from
    53
    FR
    at
    522
    (January
    8,
    1988);
    52
    FR
    at
    17013
    (May
    6,
    1987);
    and
    50
    FR
    at
    638
    (January
    4,
    1985).

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