[Senate Report 112-20]
[From the U.S. Government Publishing Office]


                                                        Calendar No. 72
112th Congress                                                   Report
                                 SENATE
 1st Session                                                     112-20

======================================================================



 
         HAZARDOUS WASTE ELECTRONIC MANIFEST ESTABLISHMENT ACT

                                _______
                                

                  June 7, 2011.--Ordered to be printed

                                _______
                                

    Mrs. Boxer, from the Committee on Environment and Public Works, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 710]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, to which was 
referred the bill (S. 710) to amend the Solid Waste Disposal 
Act to direct the Administrator of the Environmental Protection 
Agency to establish a hazardous waste electronic manifest 
system, having considered the same, reports favorably thereon 
without amendment and recommends the bill do pass.

                 Purpose and Summary of the Legislation

    The purpose of the bill is to direct the Administrator of 
the Environmental Protection Agency to establish a hazardous 
waste electronic manifest system to track the cradle-to-grave 
management of hazardous waste under the Resource Conservation 
and Recovery Act (42 U.S.C. Sec. 6901 et seq.).

                Background and Need for the Legislation

    In 1976 Congress passed the Resource Conservation and 
Recovery Act (42 U.S.C. Sec. 6901 et seq.) (RCRA) that, among 
other things, established a federal program to regulate solid 
and hazardous waste management. In addition to defining solid 
and hazardous waste, Congress required the Administrator of the 
Environmental Protection Agency (EPA) to establish ``such 
standards, applicable to generators of hazardous waste 
identified of listed under [RCRA], as may be necessary to 
protect human health and the environment.'' One such 
requirement that Congress mandated was the ``use of a manifest 
system and any other reasonable means necessary to assure that 
all such hazardous waste generated is designated for treatment, 
storage or disposal in, and arrives at, treatment, storage, or 
disposal facilities . . . for which a permit has been issued. . 
.'' This law ensures that hazardous wastes are safely managed 
from ``cradle to grave.''
    Beginning in 1980, EPA required the use of a paper manifest 
system to track federally-regulated hazardous wastes from their 
point of generation, along their transportation routes, to the 
place of final treatment, storage, or disposal. The paper 
manifest is a tool that requires each entity that handles the 
waste to sign and retain a copy of the manifest as the waste is 
transported. The paper manifest is currently comprised of six 
carbon-copies that must be filled out and signed by each person 
that handles the waste. Copies of the manifest must not only 
accompany the waste as it is transported but must be mailed to 
generators and state agencies and kept on-file by each 
regulated entity.
    The manifest system also provides information that the 
Department of Transportation (DOT) requires whenever a person 
offers, transports, transfers, or delivers hazardous waste. As 
a form of DOT required ``shipping paper'', the manifest conveys 
essential information needed if an emergency occurs during the 
transportation of hazardous waste, specifically the proper 
shipping name, hazard class, and phone numbers that enable 
responders to obtain additional information, when necessary. 
These information requirements negated the need of having 
another set of separate papers, namely a DOT shipping paper.
    The essential aspect of the manifest system is to ensure 
there is a traceable record showing who is in the control of 
the hazardous waste at any given time and where the hazardous 
waste is destined for its ultimate disposition. In general, the 
manifest also identifies the waste's toxicity and quantity. 
This information is indispensable in the case of an emergency 
or release of hazardous waste. It also provides emergency 
response personnel with information on the hazardous waste's 
potential to threaten human health and the environment.
    The EPA estimates the paperwork burden on states and 
private entities from manifests at between $193 million to over 
$400 million annually. However, EPA has not estimated the 
quantifiable and unquantifiable benefits that flow from having 
a reliable tracking system for hazardous waste that maintains 
accountability, provides information for the recovery of 
cleanup costs, and helps inform first responders about the 
threats and best steps to take to address dangerous chemical 
spills.
    In September 2006, EPA required all states to use one 
Uniform Hazardous Waste Manifest. The Uniform Hazardous Waste 
Manifest was designed to reduce the reporting burden for 
generators, transporters, and other waste handlers who may have 
been subject to several versions of waste tracking systems with 
duplicate information. It also was designed to enable 
generators and transporters to meet both Department of 
Transportation and EPA regulatory requirements. Additionally, 
the Uniform Hazardous Waste Manifest has state information 
blocks, which allow states to require the entry of additional 
specific information to serve their state's regulatory needs.
    In 2001, EPA proposed certain revisions to the manifest 
system, including the creation of a nearly paperless manifest 
program. While EPA reports that some commenters disagreed with 
the proposal, many stakeholders agreed that there was a need 
for a centralized, consistent, secure, cost-effective, and web-
based service for manifests. Some of the potential benefits 
that would come from such a national system would include 
greater benefits to users and regulators, such as one-stop 
reporting; more effective oversight and enforcement; nearly 
real-time tracking of waste shipments; and potentially 
increased efficiency of collecting and managing manifest data 
and similar waste data collected for reporting purposes.
    The EPA refined their draft approach in subsequent 
stakeholder meetings, and later as part of regulatory proposals 
in 2006 and 2008--which past legislative measures were based 
upon to create such a system. In 2008, EPA stated that its 
proposed rule for an electronic manifest system could affect up 
to 223,000 entities in almost 600 industries involved in 
shipping approximately 12 million tons of RCRA hazardous wastes 
annually, using 5 million EPA Uniform Hazardous Waste 
Manifests.

                Summary of Major Provisions of the Bill

    As a result of input from stakeholders and EPA, the bill 
(S. 710) requires the Administrator to create a hazardous waste 
electronic manifest system that may be used by any user of 
manifests, and that meets certain goals.
    The bill authorizes the Administrator to impose a fee on 
the users of this hazardous waste electronic manifest system.
    The bill authorizes the creation of a revolving fund, paid 
for by the regulated community, to allow the Administrator to 
pay for costs incurred in developing, operating, maintaining, 
and upgrading the hazardous waste electronic manifest system.
    The bill requires the Administrator to periodically report 
on the financial status of the revolving fund to Congress and 
the Inspector General of the EPA to provide an accounting of 
the actual expenditures from the revolving fund.
    The bill allows the Administrator to enter into one or more 
contracts for the creation of a hazardous waste electronic 
manifest system, so long as any such contract achieves certain 
goals, including meeting the needs of the user community which 
includes states that rely on data from manifests.
    The bill requires the Administrator to create a Hazardous 
Waste Electronic Manifest System Governing Board to evaluate 
the effectiveness and make recommendations for improving the 
manifest system.
    The bill requires that facilities receiving hazardous waste 
also report so that a state can track waste that was generated 
in or shipped through the state.

                      Section-by-Section Analysis


Section 1. Short title

    Hazardous Waste Electronic Manifest Establishment Act

Section 2. Hazardous Waste Electronic Manifest System

    Contains definitions, directs the Administrator to 
establish an electronic manifest system not later than three 
years after the date of enactment of the Act, and allows the 
Administrator to create user fees to pay for the costs of 
developing, operating, maintaining, and upgrading the 
electronic manifest system. The fees collected by the 
Administrator can only be used to pay the necessary costs 
incurred in developing, operating, maintaining, and upgrading 
the system. The Administrator is authorized to adjust the fees 
to cover current and projected system-related costs and to 
minimize the accumulation of unused amounts of money in the 
fund.
    The section establishes a Hazardous Waste Electronic 
Manifest System revolving fund to pay costs incurred in 
developing, operating, maintaining, and upgrading the 
electronic manifest system. It also sets out certain 
requirements for investing and transferring fund resources, and 
auditing and reporting requirements to ensure accountability.
    Authorizes the Administrator to enter into contracts with 
one or more information technology contracts with entities that 
the Administrator deems appropriate and where the contractor 
agrees to assume the initial risk of the information technology 
investment and to obtain reimbursement for investment and 
operating costs by receiving as payment an agreed-upon share of 
amounts collected as fees by the Administrator.
    Such contracts shall have a term of not more than ten years 
and shall ensure, to the maximum extent practicable, that a 
contract meets certain requirements, including the needs of the 
user community, which includes states that rely on data 
contained in manifests.
    Not later than three years after the date of enactment of 
the act, the Administrator must establish a Hazardous Waste 
Electronic Manifest System Governing Board, which will assess 
the effectiveness of the electronic manifest system and make 
recommendations for improving the system. The Board must be 
comprised of nine representatives, including individuals with 
experience in information technology, users of the manifest 
system in transporting hazardous waste, and state officials 
with experience in processing manifests.
    Not later than one year after enactment of this act, the 
Administrator must promulgate regulations to implant the act. 
The regulations must ensure that, to at least the same extent 
as paper manifests under federal and state law, the electronic 
manifests provide for the ability to track and maintain 
accountability of the person who certified that the information 
in the manifest is accurate and the person who acknowledges 
receipt of the manifest. Similarly, the electronic manifest 
must provide for state authority to access paper copies of 
manifests and provide for the public's access to the 
information contained in the manifest.
    To ensure that states that track hazardous waste generated 
or shipped through their borders can continue to do so under an 
electronic manifest system, the facility that receives 
hazardous waste shall complete a facility portion of a 
manifest, sign and date a facility certification, and submit to 
the electronic manifest system a final copy of the manifest for 
inclusion in the system.

             Legislative History, Committee Views and Votes


                            Committee Views

    The Committee believes that the manifest system, which has 
been in place for more than 20 years, provides one of the 
essential foundations for protecting human health and the 
environment from releases of hazardous waste. Manifests also 
play a pivotal role in federal and state enforcement of such 
safeguards. The Committee believes that the time has come to 
ensure that EPA has the authority to implement a safe, secure, 
and comprehensive electronic manifest system.
    The Committee expects that the electronic manifest system 
will significantly improve the management and enforcement of 
hazardous waste programs by providing an integrated tracking 
process that creates clear lines of accountability among the 
participants in the hazardous waste system. It will serve, 
together with the other requirements, to increase protections 
for human health and the environment during the transportation 
of hazardous waste by providing real-time information on the 
waste to persons handling the waste and to emergency response 
personnel.
    The Committee also anticipates that electronic manifests 
will expedite the processing and distribution of information 
that is the foundation for EPA's recordkeeping, reporting, and 
management requirements and the public's right to know about 
the generation, transportation, and disposal of hazardous 
waste. This system will conserve agency resources and help to 
improve agencies' efficiency. The Committee also expects that 
the electronic manifest will facilitate the enforcement of 
protections for human health and the environment by increasing 
the accuracy and accessibility of information on hazardous 
waste. An electronic manifest system as envisioned by S. 710 
could also produce homeland security benefits, with agencies 
having faster access to reliable data.
    The Committee expects that similar benefits will occur for 
state safeguards. Twenty-three states regularly accept and use 
manifests to protect public health and environmental quality, 
reduce and prevent pollution and target inspections and 
enforcement activities. The electronic manifest system will 
help to ensure that these states are working with a modern 
manifest system that enables them to better protect public 
health and the environment. An electronic manifest system also 
provides states that do not currently accept manifests with an 
easy-to-use system of tracking hazardous waste within their 
borders.
    An electronic manifest system will further reduce reporting 
burdens on entities that use the hazardous waste manifest 
system. This modernized system should also reduce business' 
costs associated with using manifests.
    S. 710 establishes the outline for a centralized, 
consistent, secure, cost-effective, and web-based service for 
manifests that protects human health and the environment. The 
on-going negotiations between EPA and state officials will 
necessarily fill in many of the details needed to implement 
this system. The Committee expects EPA to work closely with the 
states and to address potential problems that could arise that 
may impact protecting for human health and the environment, 
enforcement of such protections, and the public availability of 
information.

                          Legislative History

    On September 7, 2006, Senator Thune introduced S. 3871, the 
Hazardous Waste Electronic Manifest Establishment Act, which 
was referred to the Senate Environment and Public Works 
Committee. On September 28, 2006, the Committee on Environment 
and Public Works' Subcommittee on Superfund Management held a 
legislative hearing to consider S. 3871.
    On June 10, 2008, Senator Thune introduced S. 3109, the 
Hazardous Waste Electronic Manifest Establishment Act, which 
was referred to the Senate Environment and Public Works 
Committee. On July 31, 2008, the full Committee on Environment 
and Public Works favorably reported S. 3109 by voice vote, 
demonstrating the broad bipartisan support for this measure. 
The Senate passed S. 3109 by unanimous consent on September 26, 
2008 and referred the bill to the House on September 27, 2008.
    On March 31, 2011, Senator Thune introduced S. 710, the 
Hazardous Waste Electronic Manifest Establishment Act. On April 
14, 2011, the Committee on Environment and Public Works 
favorably reported the bipartisan bill to the Senate by voice 
vote, again demonstrating the broad bipartisan support for this 
measure.

                      Regulatory Impact Statement

    In compliance with section 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that the 
Congressional Budget Office has found that ``CBO expects that 
participants in the electronic manifest system created by the 
bill could save money in comparison to the paper manifest 
system. Participants include generators, transporters, and 
recipients of hazardous waste, as well as state agencies that 
collect copies of manifests.''

                          Mandates Assessment

    In compliance with the Unfunded Mandates Reform Act of 1995 
(Public Law 104-4), the Committee notes that the Congressional 
Budget Office has said that the bill's electronic manifest 
system would save money in comparison to the current paper 
system. Further, as more fully discussed below, CBO found that 
the cost of any mandates in the bill ``would fall below the 
annual thresholds established in UMRA ($71 million for 
intergovernmental mandates and $142 million for private-sector 
mandates in 2011, adjusted annually for inflation).''

                  Congressional Budget Office Estimate

                                                       May 6, 2011.
Hon. Barbara Boxer,
Chairman, Committee on Environment and Public Works, U.S. Senate, 
        Washington, DC.
    Dear Madam Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 710, the Hazardous 
Waste Electronic Manifest Establishment Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susanne 
Mehlman.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

S. 710--Hazardous Waste Electronic Manifest Establishment Act

    Summary: S. 710 would require the Environmental Protection 
Agency (EPA) to establish an electronic manifest system to 
track the handling of hazardous waste. This legislation would 
allow EPA to collect user fees to offset the cost of 
developing, operating, and maintaining the system. Under 
current law, individuals who handle hazardous waste must 
prepare a paper manifest, which is a form that provides a 
complete paper trail of a waste's progress from a generator 
through its treatment, storage, and disposal. Under S. 710, 
generators or transporters of hazardous waste and the owners or 
operators of hazardous waste treatment, storage, or disposal 
facilities could elect to use the electronic manifest system or 
the existing paper system.
    Pay-as-you-go procedures apply to S. 710 because enacting 
this legislation would affect direct spending and revenues. CBO 
estimates that enacting S. 710 would increase both revenues and 
direct spending by $28 million over the 2011-2021 period. In 
addition, CBO estimates that implementing S. 710 would cost 
less than $500,000 annually in 2012 and 2013, subject to the 
availability of appropriated funds.
    S. 710 would impose intergovernmental and private-sector 
mandates, as defined in the Unfunded Mandates Reform Act 
(UMRA), on facilities that handle hazardous waste. CBO 
estimates that the cost of the mandates would fall below the 
annual thresholds established in UMRA ($71 million for 
intergovernmental mandates and $142 million for private-sector 
mandates in 2011, adjusted annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 710 is shown in the following table. The 
costs of this legislation fall within budget function 300 
(natural resources and environment).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                       By fiscal year, in millions of dollars--
                                                             -------------------------------------------------------------------------------------------
                                                               2012   2013   2014   2015   2016   2017   2018   2019   2020   2021  2012-2016  2012-2021
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               CHANGES IN DIRECT SPENDING

Estimated Budget Authority..................................     35      0      0      0      0      0      0      0      0      0        35         35
Estimated Outlays...........................................      2      2      3      3      3      3      3      3      3      3        13         28

                                                                   CHANGES IN REVENUES

Estimated Revenues..........................................      0      0      0      6      5      5      3      3      3      3        11         28

                                      NET CHANGE IN THE BUDGET DEFICIT FROM CHANGES IN REVENUES AND DIRECT SPENDING

Impact on Deficita..........................................      2      2      3     -3     -2     -2      0      0      0      0         2          0

                                                      CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level...............................      0      *      *      0      0      0      0      0      0      0         1          1
Estimated Outlays...........................................      0      *      *      0      0      0      0      0      0      0         1          1
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes: * = less than $500,000.
aPositive numbers indicate an increase in the deficit; negative numbers indicate a decrease in the deficit.

    Basis of estimate: For this estimate, CBO assumes that S. 
710 will be enacted by the end of fiscal year 2011.

Revenues and Direct Spending

    S. 710 would authorize EPA to enter into a contract to 
develop and maintain the electronic manifest system in advance 
of, or in excess of, available appropriations. Based on 
information from EPA, CBO estimates that the contract would 
cost about $35 million. Because entering into the type of 
contract authorized by the legislation is an obligation of the 
federal government, its total cost--$35 million--would be 
recorded as new budget authority in 2012. Though this 
legislation would also authorize EPA to collect user fees to 
offset the cost of establishing and maintaining this system, 
such fees could not be collected before the new system is in 
operation beginning in 2015. CBO expects that EPA would recover 
the costs of developing the system (about $22 million) within 
five years of its launch and that the agency would reduce user 
fees to a level that would cover maintenance costs once 
development costs were recouped.
    Based on information from EPA, CBO estimates that about 
114,000 users would obtain electronic manifests in 2015, with 
participation reaching 227,000 users in subsequent years. We 
estimate that, under this legislation, EPA would collect annual 
user fees totaling $28 million over the 2012-2021 period.
    Spending of the fees collected by EPA would increase direct 
spending and would likely begin in 2015. However, spending on 
developing the system would likely begin in 2012 because the 
legislation would give EPA the authority to spend fees in 
advance of their collection. CBO estimates that enacting this 
legislation would increase federal outlays by $28 million over 
the 2012-2021 period.

Spending Subject to Appropriation

    Enacting legislation also would require EPA to develop 
regulations related to the implementation of the electronic 
manifest system not later than one year after enactment. CBO 
estimates that funding of less than $500,000 annually in 2012 
and 2013 would be necessary to meet this requirement.
    Pay-as-you-go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays and revenues that are 
subject to those pay-as-you-go procedures are shown in the 
following table.

     CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR S. 710, THE HAZARDOUS WASTE ELECTRONICS MANIFEST ESTABLISHMENT ACT, AS ORDERED REPORTED BY THE SENATE
                                               COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS ON APRIL 15, 2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, in millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2011   2012   2013   2014   2015   2016   2017   2018   2019   2020   2021  2011-2016  2011-2021
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       NET INCREASE OR DECREASE (-) IN THE DEFICIT

Statutory Pay-As-You-Go Impact.......................      0      2      2      3     -3     -2     -2      0      0      0      0         2          0
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: S. 710 would 
impose intergovernmental and private-sector mandates, as 
defined in UMRA, on facilities that handle hazardous waste. CBO 
estimates that the cost of the mandates would fall below the 
annual thresholds established in UMRA ($71 million for 
intergovernmental mandates and $142 million for private-sector 
mandates in 2011, adjusted annually for inflation).
    The bill would require waste management facilities that 
receive hazardous waste generated in or shipped through other 
states to submit copies of shipment manifests to EPA. The bill 
also would authorize EPA to require those facilities and any 
hazardous waste management facility that uses a paper system to 
submit a copy of the manifest to the electronic system 
established under the bill. The mandated facilities would 
primarily be private entities but could include municipal and 
county landfills. Because the cost to complete a manifest and 
to submit a paper copy to the electronic system would be 
minimal, CBO estimates that the cost to comply with the 
mandates would be small.
    The bill also would authorize EPA to establish fees for 
users of the electronic manifest system. CBO estimates that 
such fees would total $6 million or less annually beginning in 
fiscal year 2015.

Other Impacts

    CBO expects that participants in the electronic manifest 
system created by the bill could save money in comparison to 
the paper manifest system. Participants include generators, 
transporters, and recipients of hazardous waste, as well as 
state agencies that collect copies of manifests.
    Estimate prepared by: Federal Revenues: Mark Booth; Federal 
Spending: Susanne Mehlman; Impact on State, Local, and Tribal 
Governments: Ryan Miller; Impact on the Private Sector: Amy 
Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                        Changes in Existing Law

    In compliance with section 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill 
as reported are shown as follows: Existing law proposed to be 
omitted is enclosed in [black brackets], new matter is printed 
in italic, existing law in which no change is proposed is shown 
in roman:

           *       *       *       *       *       *       *


                        SOLID WASTE DISPOSAL ACT


                     Subtitle A--General Provisions


                   SHORT TITLE AND TABLE OF CONTENTS

    Sec. 1001. This title (hereinafter in this title referred 
to as ``this Act''), together with the following table of 
contents, may be cited as the ``Solid Waste Disposal Act'':

[42 U.S.C. 6901]

                     Subtitle A--General Provisions

Sec. 1001. Short title and table of contents.
Sec. 1002. Congressional findings.
Sec. 1003. Objectives.
Sec. 1004. Definitions.
Sec. 1005. Governmental cooperation.
Sec. 1006. Application of Act and integration with other Acts.
Sec. 1007. Financial disclosure.
Sec. 1008. Solid waste management information and guidelines.

   Subtitle B--Office of Solid Waste; Authorities of the Administrator

Sec. 2001. Office of Solid Waste and Interagency Coordinating Committee.
Sec. 2002. Authorities of Administrator.
Sec. 2003. Resource recovery and conservation panels.
Sec. 2004. Grants for discarded tire disposal.
Sec. 2005. Labeling of certain oil.
Sec. 2006. Annual report.
Sec. 2007. General authorization.
Sec. 2008. Office of Ombudsman.

                 Subtitle C--Hazardous Waste Management

Sec. 3001. Identification and listing of hazardous waste.
Sec. 3002. Standards applicable to generators of hazardous waste.
Sec. 3003. Standards applicable to transporters of hazardous waste.
Sec. 3004. Standards applicable to owners and operators of hazardous 
          waste treatment, storage, and disposal facilities.
Sec. 3005. Permits for treatment, storage, or disposal of hazardous 
          waste.
Sec. 3006. Authorized State hazardous waste programs.
Sec. 3007. Inspections.
Sec. 3008. Federal enforcement.
Sec. 3009. Retention of State authority.
Sec. 3010. Effective date.
Sec. 3011. Authorization of assistance to States.
Sec. 3012. Hazardous waste site inventory.
Sec. 3013. Monitoring, analysis, and testing.
Sec. 3014. Restrictions on recycled oil.
Sec. 3015. Expansion during interim status.
Sec. 3016. Inventory of Federal Agency hazardous waste facilities.
Sec. 3017. Export of hazardous waste.
Sec. 3018. Domestic sewage.
Sec. 3019. Exposure information and health assessments.
Sec. 3020. Interim control of hazardous waste injection.
Sec. 3021. Mixed waste inventory reports and plan.
Sec. 3022. Public vessels.
Sec. 3023. Federally owned treatment works.
Sec. 3024. Hazardous waste electronic manifest system.
     * * * * * * *

                 Subtitle C--Hazardous Waste Management


             IDENTIFICATION AND LISTING OF HAZARDOUS WASTE

    Sec. 3001. (a) Criteria for Identification or Listing.--* * 
*

           *       *       *       *       *       *       *


SEC. 3024. HAZARDOUS WASTE ELECTRONIC MANIFEST SYSTEM.

    (a) Definitions.--In this section:
          (1) Board.--The term ``Board'' means the Hazardous 
        Waste Electronic Manifest System Advisory Board 
        established under subsection (f).
          (2) Fund.--The term ``Fund'' means the Hazardous 
        Waste Electronic Manifest System Fund established by 
        subsection (d).
          (3) Person.--The term ``person'' includes an 
        individual, corporation (including a Government 
        corporation), company, association, firm, partnership, 
        society, joint stock company, trust, municipality, 
        commission, Federal agency, State, political 
        subdivision of a State, or interstate body.
          (4) System.--The term ``system'' means the hazardous 
        waste electronic manifest system established under 
        subsection (b).
          (5) User.--The term ``user'' means a hazardous waste 
        generator, a hazardous waste transporter, an owner or 
        operator of a hazardous waste treatment, storage, 
        recycling, or disposal facility, or any other person 
        that--
                  (A) is required to use a manifest to comply 
                with any Federal or State requirement to track 
                the shipment, transportation, and receipt of 
                hazardous waste or other material that is 
                shipped from the site of generation to an off-
                site facility for treatment, storage, disposal, 
                or recycling; and
                  (B)(i) elects to use the system to complete 
                and transmit an electronic manifest format; or
                  (ii) submits to the system for data 
                processing purposes a paper copy of the 
                manifest (or data from such a paper copy), in 
                accordance with such regulations as the 
                Administrator may promulgate to require such a 
                submission.
    (b) Establishment.--Not later than 3 years after the date 
of enactment of this section, the Administrator shall establish 
a hazardous waste electronic manifest system that may be used 
by any user.
    (c) User Fees.--
          (1) In general.--The Administrator may impose on 
        users such reasonable service fees as the Administrator 
        determines to be necessary to pay costs incurred in 
        developing, operating, maintaining, and upgrading the 
        system, including any costs incurred in collecting and 
        processing data from any paper manifest submitted to 
        the system after the date on which the system enters 
        operation.
          (2) Collection of fees.--The Administrator shall--
                  (A) collect the fees described in paragraph 
                (1) from the users in advance of or as 
                reimbursement for, the provision by the 
                Administrator of system-related services; and
                  (B) deposit the fees in the Fund for use in 
                accordance with this subsection.
          (3) Fee structure.--
                  (A) In general.--The Administrator, in 
                consultation with information technology 
                vendors, shall determine through the contract 
                award process described in subsection (e) the 
                fee structure that is necessary to recover the 
                full cost to the Administrator of providing 
                system-related services, including costs 
                relating to--
                          (i) materials and supplies;
                          (ii) contracting and consulting;
                          (iii) overhead;
                          (iv) information technology 
                        (including costs of hardware, software, 
                        and related services);
                          (v) information management;
                          (vi) collection of service fees;
                          (vii) investment of any unused 
                        service fees;
                          (viii) reporting and accounting;
                          (ix) employment of direct and 
                        indirect Government personnel dedicated 
                        to establishing and maintaining the 
                        system; and
                          (x) project management.
                  (B) Adjustments in fee amount.--
                          (i) In general.--The Administrator, 
                        in consultation with the Board, shall 
                        increase or decrease amount of a 
                        service fee determined under the fee 
                        structure described in subparagraph (A) 
                        to a level that will--
                                  (I) result in the collection 
                                of an aggregate amount for 
                                deposit in the Fund that is 
                                sufficient to cover current and 
                                projected system-related costs 
                                (including any necessary system 
                                upgrades); and
                                  (II) minimize, to the maximum 
                                extent practicable, the 
                                accumulation of unused amounts 
                                in the Fund.
                          (ii) Exception for initial period of 
                        operation.--The requirement described 
                        in clause (i)(II) shall not, apply to 
                        any additional fees that accumulate in 
                        the Fund, in an amount that does not 
                        exceed $2,000,000, during the 3-year 
                        period beginning on the date on which 
                        the system enters operation.
                          (iii) Timing of adjustments.--
                        Adjustments to service fees described 
                        in clause (i) shall be made--
                                  (I) initially, at the time at 
                                which initial development costs 
                                of the system have been 
                                recovered by the Administrator 
                                such that the service fee may 
                                be reduced to reflect the 
                                elimination of the system 
                                development component of the 
                                fee; and
                                  (II) periodically thereafter, 
                                upon receipt and acceptance of 
                                the findings of any annual 
                                accounting or auditing report 
                                under subsection (d)(6), if the 
                                report discloses a significant 
                                disparity for a fiscal year 
                                between the funds collected 
                                from service fees under this 
                                subsection for the fiscal year 
                                and expenditures made for the 
                                fiscal year to provide system-
                                related services.
    (d) Hazardous Waste Electronic Manifest System Fund.--
          (1) Establishment.--There is established in the 
        Treasury of the United States a revolving fund, to be 
        known as the ``Hazardous Waste Electronic Manifest 
        System Fund'', consisting of--
                  (A) such amounts as are appropriated to the 
                Fund under paragraph (2); and
                  (B) any interest earned on investment of 
                amounts in the Fund under paragraph (4).
          (2) Transfers to fund.--There are appropriated to the 
        Fund amounts equivalent to amounts collected as fees 
        and received by the Administrator under subsection (c).
          (3) Expenditures from fund.--
                  (A) In general--Subject to paragraph (2), on 
                request by the Administrator, the Secretary of 
                the Treasury shall transfer from the Fund to 
                the Administrator such amounts as the 
                Administrator determines to be necessary to pay 
                costs incurred in developing, operating, 
                maintaining, and upgrading the system under 
                subsection (c).
                  (B) Use of funds.--
                          (i) In general--Fees collected by the 
                        Administrator and deposited in the Fund 
                        under this section shall be available 
                        to the Administrator for use in 
                        accordance with this section without 
                        fiscal year limitation and without 
                        further appropriation.
                          (ii) Oversight.--The Administrator 
                        shall carry out all necessary measures 
                        to ensure that amounts in the Fund are 
                        used only to carry out the goals of 
                        establishing, operating, maintaining, 
                        upgrading, managing, supporting, and 
                        overseeing the system.
          (4) Investment of amounts.--
                  (A) In general--The Secretary of the Treasury 
                shall invest such portion of the Fund as is 
                not, in the judgment of the Secretary of the 
                Treasury and the Administrator, required to 
                meet current withdrawals.
                  (B) Interest-bearing obligations.--
                Investments may be made only in--
                          (i) interest-bearing obligations of 
                        the United States; or
                          (ii) obligations, participations, or 
                        other instruments that are lawful 
                        investments for fiduciaries, trusts, or 
                        public funds, as determined by the 
                        Secretary of the Treasury.
                  (C) Acquisition of obligations.--For the 
                purpose of investments under paragraph (1), 
                obligations may be acquired--
                          (i) on original issue at the issue 
                        price; or
                          (ii) by purchase of outstanding 
                        obligations at the market price.
                  (D) Sale of obligations.--Any obligation 
                acquired by the Fund may be sold by the 
                Secretary of the Treasury at the market price.
                  (E) Credits to fund.--The interest on, and 
                the proceeds from the sale or redemption of, 
                any obligations held in the Fund shall be 
                credited to, and form a part of the Fund.
          (5) Transfers of amounts.--
                  (A) In general--The amounts required to be 
                transferred to the Fund under this subsection 
                shall be transferred at least monthly from the 
                general fund of the Treasury to the Fund on the 
                basis of estimates made by the Secretary of the 
                Treasury.
                  (B) Adjustments.--Proper adjustment shall be 
                made in amounts subsequently transferred to the 
                extent prior estimates were in excess of or 
                less than the amounts required to be 
                transferred.
          (6) Accounting and auditing.--
                  (A) Accounting.--For each 2-fiscal-year 
                period, the Administrator shall prepare and 
                submit to the Committee on Environment and 
                Public Works of the Senate and the Committee on 
                Energy and Commerce of the House of 
                Representatives a report that includes--
                          (i) an accounting of the fees paid to 
                        the Administrator under subsection (c) 
                        and disbursed from the Fund for the 
                        period covered by the report, as 
                        reflected by financial statements 
                        provided in accordance with--
                                  (I) the Chief Financial 
                                Officers Act of 1990 (Public 
                                Law 101-576; 104 Stat. 2838) 
                                and amendments made by that 
                                Act; and
                                  (II) the Government 
                                Management Reform Act of 1994 
                                (Public Law 103-356; 108 Stat. 
                                3410) and amendments made by 
                                that Act; and
                          (ii) an accounting describing actual 
                        expenditures from the Fund for the 
                        period covered by the report for costs 
                        described in subsection (c)(1).
                  (B) Auditing.--
                          (i) In general.--For the purpose of 
                        section 3515(c) of title 31, United 
                        States Code, the Fund shall be 
                        considered a component of an Executive 
                        agency.
                          (ii) Components of audit.--The annual 
                        audit required in accordance with 
                        sections 3515(b) and 3521 of title 31, 
                        United States Code, of the financial 
                        statements of activities carried out 
                        using amounts from the Fund shall 
                        include an analysis of--
                                  (I) the fees collected and 
                                disbursed under this section;
                                  (II) the reasonableness of 
                                the fee structure in place as 
                                of the date of the audit to 
                                meet current and projected 
                                costs of the system;
                                  (III) the level of use of the 
                                system by users; and
                                  (IV) the success to date of 
                                the system in operating on a 
                                self-sustaining basis and 
                                improving the efficiency of 
                                tracking waste shipments and 
                                transmitting waste shipment 
                                data.
                          (iii) Federal responsibility.--The 
                        Inspector General of the Environmental 
                        Protection Agency shall--
                                  (I) conduct the annual audit 
                                described in clause (ii); and
                                  (II) submit to the 
                                Administrator a report that 
                                describes the findings and 
                                recommendations of the 
                                Inspector General resulting 
                                from the audit.
      (e) Contracts.--
          (1) Authority to enter into contracts funded by 
        service fees.--The Administrator may enter into 1 or 
        more information technology contracts with entities 
        determined to be appropriate by the Administrator 
        (referred to in this subsection as `contractors') under 
        which--
                  (A) the Administrator agrees to award a 
                contract for the provision of system-related 
                services; and
                  (B) the contractor agrees to assume the 
                initial risk of the information technology 
                investment, and to obtain reimbursement for 
                investment costs, operating costs, and other 
                fees, by receiving as payment an agreed-upon 
                share of the amounts collected as fees by the 
                Administrator under subsection (c).
          (2) Term of contract.--A contract awarded under this 
        subsection shall have a term of not more than 10 years.
          (3) Achievement of goals.--The Administrator shall 
        ensure, to the maximum extent practicable, that a 
        contract awarded under this subsection--
                  (A) is performance-based;
                  (B) identifies objective outcomes; and
                  (C) contains performance standards that may 
                be used to measure achievement and goals to 
                evaluate the success of a contractor in 
                performing under the contract and the right of 
                the contractor to payment for services under 
                the contract, taking into consideration that a 
                primary measure of successful performance shall 
                be the development of a hazardous waste 
                electronic manifest system that--
                          (i) meets the needs of the user 
                        community (including States that rely 
                        on data contained in manifests);
                          (ii) attracts sufficient user 
                        participation and service fee revenues 
                        to ensure the viability of the system;
                          (iii) decreases the administrative 
                        burden on the user community; and
                          (iv) provides the waste receipt data 
                        applicable to the biennial reports 
                        required by section 3002(a)(6).
          (4) Payment structure.--Each contract awarded under 
        this subsection shall include a provision that 
        specifies--
                  (A) the service fee structure of the 
                contractor that will form the basis for 
                payments to the contractor;
                  (B) the fixed-share ratio of monthly service 
                fee revenues from which the Administrator shall 
                reimburse the contractor for system-related 
                development, operation, and maintenance costs 
                and provide an additional profit or fee 
                commensurate with the risk undertaken by the 
                contractor in performing in accordance with the 
                contract;
                  (C) the amount of additional transactional 
                costs attributed to--
                          (i) the ancillary costs of the 
                        Administrator in implementing and 
                        managing the system, including the 
                        costs of integrating the applications 
                        of the contractor with the central data 
                        exchange architecture of the 
                        Environmental Protection Agency;
                          (ii) the direct and indirect 
                        personnel costs incurred by the 
                        Administrator to employ personnel 
                        dedicated to the implementation and 
                        management of the system; and
                          (iii) expenses incurred in procuring 
                        any independent contractor services to 
                        assist staff of the Administrator in 
                        the preparation of financial statements 
                        and reports and the conduct of regular 
                        user group and governance meetings 
                        necessary for the oversight of the 
                        system.
          (5) Cancellation and termination.--
                  (A) In general.--If the Administrator 
                determines that sufficient funds are not made 
                available for the continuation in a subsequent 
                fiscal year of a contract entered into under 
                this subsection, the Administrator shall cancel 
                or terminate the contract.
                  (B) Costs.--The costs of cancellation or 
                termination under subparagraph (A) may be paid 
                using--
                          (i) appropriations available for 
                        performance of the contract;
                          (ii) unobligated appropriations 
                        available for acquisition of the 
                        information technology procured under 
                        the contract; or
                          (iii) funds subsequently appropriated 
                        for payment of costs of the 
                        cancellation or termination.
                  (C) Negotiation of amounts.--The amount 
                payable in the event of cancellation or 
                termination of a contract entered into under 
                this subsection shall be negotiated with the 
                contractor at the time at which the contract is 
                awarded.
                  (D) Authority to enter into contracts.--The 
                Administrator may enter into a contract under 
                this subsection for any fiscal year, regardless 
                of whether funds are made specifically 
                available for the full costs of cancellation or 
                termination of the contract, if--
                          (i) funds are available at the time 
                        at which the contract is awarded to 
                        make payments with respect to a 
                        contingent liability in an amount equal 
                        to at least 100 percent of the 
                        estimated costs of a cancellation or 
                        termination during the first fiscal 
                        year of the contract, as determined by 
                        the Administrator; or
                          (ii) funds described in clause (i) 
                        are not available as described in that 
                        clause, but the contractor--
                                  (I) is informed of the amount 
                                of any unfunded contingent 
                                liability; and
                                  (II) agrees to perform the 
                                contract despite the unfunded 
                                contingent liability.
          (6) No effect on ownership.--Regardless of whether 
        the Administrator enters into a contract under this 
        subsection, the system shall be owned by the Federal 
        Government.
    (f) Hazardous Waste Electronic Manifest System Advisory 
Board.--
          (1) Establishment.--Not later than 3 years after the 
        date of enactment of this section, the Administrator 
        shall establish a board to be known as the ``Hazardous 
        Waste Electronic Manifest System Advisory Board''.
          (2) Composition.--The Board shall be composed of 9 
        members, of which--
                  (A) 1 member shall be the Administrator (or a 
                designee), who shall serve as Chairperson of 
                the Board; and
                  (B) 8 members shall be individuals appointed 
                by the Administrator--
                          (i) at least 2 of whom shall have 
                        expertise in information technology;
                          (ii) at least 3 of whom shall have 
                        experience in using or represent users 
                        of the manifest system to track the 
                        transportation of hazardous waste under 
                        this subtitle (or an equivalent State 
                        program); and
                          (iii) at least 3 of whom shall be a 
                        State representative responsible for 
                        processing those manifests.
          (3) Duties.--The Board shall meet annually to 
        discuss, evaluate the effectiveness of and provide 
        recommendations to the Administrator relating to, the 
        system.
    (g) Regulations.--
          (1) Promulgation.--
                  (A) In general.--Not later than 1 year after 
                the date of enactment of this section, the 
                Administrator shall promulgate regulations to 
                carry out this section.
                  (B) Inclusions.--The regulations promulgated 
                pursuant to subparagraph (A) may include such 
                requirements as the Administrator determines to 
                be necessary to facilitate the transition from 
                the use of paper manifests to the use of 
                electronic manifests, or to accommodate the 
                processing of data from paper manifests in the 
                electronic manifest system, including a 
                requirement that users of paper manifests 
                submit to the system copies of the paper 
                manifests for data processing purposes.
                  (C) Requirements.--The regulations 
                promulgated pursuant to subparagraph (A) shall 
                ensure that each electronic manifest provides, 
                to the same extent as paper manifests under 
                applicable Federal and State law, for--
                          (i) the ability to track and maintain 
                        legal account-ability of--
                                  (I) the person that certifies 
                                that the information provided 
                                in the manifest is accurately 
                                described; and
                                  (II) the person that 
                                acknowledges receipt of the 
                                manifest;
                          (ii) if the manifest is 
                        electronically submitted, State 
                        authority to access paper printout 
                        copies of the manifest from the system; 
                        and
                          (iii) access to all publicly 
                        available information contained in the 
                        manifest.
          (2) Effective date of regulations.--Any regulation 
        promulgated by the Administrator under paragraph (1) 
        and in accordance with section 3003 relating to 
        electronic manifesting of hazardous waste shall take 
        effect in each State as of the effective date specified 
        in the regulation.
          (3) Administration.--The Administrator shall carry 
        out regulations promulgated under this subsection in 
        each State unless the State program is fully authorized 
        to carry out those regulations in lieu of the 
        Administrator.
    (h) Requirement of Compliance With Respect to Certain 
States.--In any case in which the State in which waste is 
generated, or the State in which waste will be transported to a 
designated facility, requires that the waste be tracked through 
a hazardous waste manifest, the designated facility that 
receives the waste shall, regardless of the State in which the 
facility is located--
          (1) complete the facility portion of the applicable 
        manifest;
          (2) sign and date the facility certification; and
          (3) submit to the system a final copy of the manifest 
        for data processing purposes.

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