[Federal Register Volume 61, Number 129 (Wednesday, July 3, 1996)]
[Notices]
[Pages 35042-35054]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17030]



[[Page 35041]]


_______________________________________________________________________

Part VI





Environmental Protection Agency





_______________________________________________________________________



Effluent Guideline Plan; Notice

  Federal Register / Vol. 61, No. 129 / Wednesday, July 3, 1996 / 
Notices  

[[Page 35042]]



ENVIRONMENTAL PROTECTION AGENCY

[FRL 5527-5]
RIN 2040-AC86


Effluent Guidelines Plan

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of Proposed Effluent Guidelines Plan.

-----------------------------------------------------------------------

SUMMARY: Today's notice announces the Agency's proposed plans for 
developing new and revised effluent guidelines, which regulate 
industrial discharges to surface waters and to publicly owned treatment 
works. Section 304(m) of the Clean Water Act requires EPA to publish a 
biennial Effluent Guidelines Plan. The Agency requests comment on the 
proposal and will publish a final plan following the close of the 
comment period.

DATES: Comments must be received on or before August 2, 1996.

ADDRESSES: Submit comments in writing to: Water Docket Clerk (4101), 
U.S. Environmental Protection Agency, 401 M Street, SW., Washington, DC 
20460. The public record for this notice is available for review in the 
EPA Water Docket, Room 2616 Mall, 401 M Street, SW., Washington, DC. 
For access to Docket materials, call (202) 260-3027 between 9 a.m. and 
3 p.m. for an appointment. The EPA public information regulation (40 
CFR Part 2) provides that a reasonable fee may be charged for copying.

FOR FURTHER INFORMATION CONTACT: Eric Strassler, EPA Engineering and 
Analysis Division, telephone 202-260-7150.

SUPPLEMENTARY INFORMATION:

I. Regulated Entities
II. Legal Authority
III. Introduction
    A. Purpose of Today's Notice
    B. Overview of Today's Notice
IV. Effluent Guidelines Program Background
    A. Statutory Framework
    B. Components of an Effluent Guideline Regulation
    C. Development of Effluent Guideline Regulations
    D. NRDC Litigation and Consent Decree
V. Today's Proposed Effluent Guidelines Plan
    A. Effluent Guidelines Currently Under Development
    1. Schedule for Ongoing Rulemaking
    2. Changes in Rulemaking Scope, Schedules and/or Organization
    a. Metal Products and Machinery
    b. Pulp, Paper and Paperboard
    c. Pharmaceutical Manufacturing
    d. Transportation Equipment Cleaning
    B. Process for Selection of New Effluent Guideline Regulations
    1. Selection Criteria and Data Sources
    a. Selection Criteria
    b. Data Sources
    2. New Rulemaking Activities
    a. Iron and Steel Manufacturing
    b. Other Rules
    C. Preliminary Studies
    1. Recently Completed Studies
    a. Petroleum Refining
    b. Metal Finishing
    c. Textile Mills
    d. Inorganic Chemicals
    e. Steam Electric Power Generating
    f. Iron and Steel Manufacturing
    2. Ongoing Studies
    a. Photographic Processing
    b. Chemical Formulators and Packagers
    3. Future Studies
    a. Coal Mining
    b. Feedlots
    c. Stormwater Discharges
    d. Hospitals
    e. Ore Mining and Dressing
    f. Glass Manufacturing
    g. Canmaking
    h. Organic Chemicals, Plastics and Synthetic Fibers
    i. Pulp, Paper and Paperboard
    j. Generic Effluent Guideline Issues
    D. Other Rulemaking Actions
    1. Leather Tanning and Finishing
    2. Ore Mining and Dressing
    3. Marine Discharges from Vessels of the Armed Forces
VI. Recommendations of the Effluent Guidelines Task Force
    A. Data Sources
    B. Criteria for Selecting Industries for Preliminary Studies
    C. Design of Preliminary Studies
VII. Request for Comments
VIII. Economic Impact Assessment; Executive Order 12866
Appendix A--Promulgated Effluent Guidelines
Appendix B--Current and Future Rulemaking Projects
Appendix C--Preliminary Studies

I. Regulated Entities

    Today's proposed plan does not contain regulatory requirements and 
does not provide specific definitions for each industrial category. 
Entities potentially affected by decisions regarding the final plan are 
listed below.

------------------------------------------------------------------------
      Category of entity       Examples of potentially affected entities
------------------------------------------------------------------------
Industry.....................  Pulp, Paper and Paperboard; Pesticide    
                                Formulating, Packaging and Repackaging; 
                                Coastal Oil and Gas Extraction;         
                                Centralized Waste Treatment;            
                                Pharmaceutical Manufacturing; Metal     
                                Products and Machinery; Landfills and   
                                Incinerators; Industrial Laundries;     
                                Transportation Equipment Cleaning; Iron 
                                and Steel Manufacturing; Coal Mining;   
                                Feedlots; Hospitals; Ore Mining and     
                                Dressing; Glass Manufacturing; Canmaking
------------------------------------------------------------------------

    To determine whether your facility would be regulated, you should 
carefully examine the applicability criteria in the appropriate 
proposed rule (previously published or forthcoming). Citations for 
previously published proposed rules and schedules for forthcoming 
proposed rules are provided in Appendix B of today's notice.

II. Legal Authority

    Today's notice is published under the authority of section 304(m) 
of the Clean Water Act, 33 U.S.C. 1314(m), which requires EPA to 
publish a biennial Effluent Guidelines Plan, schedule review and 
revision of existing regulations and identify categories of dischargers 
to be covered by new regulations.

III. Introduction

A. Purpose of Today's Notice

    Today's notice announces the Agency's proposed biennial plan 
pursuant to sec. 304(m). EPA invites the public to comment on the 
proposed plan, and following the close of the comment period the Agency 
will publish a final plan.

B. Overview of Today's Notice

    The Agency proposes to develop effluent limitation guidelines and 
standards (``effluent guidelines'') as follows:
    1. Continue development of 10 rules listed in the 1994 Effluent 
Guidelines Plan (59 FR 44234, August 26, 1994). The categories are: 
Pulp, Paper and Paperboard; Pesticide Chemicals (Formulating, Packaging 
and Repackaging); Coastal Oil and Gas Extraction; Centralized Waste 
Treatment; Pharmaceutical Manufacturing; Metal Products and Machinery, 
Phases 1 and 2; Landfills and Incinerators; Industrial Laundries; and 
Transportation Equipment Cleaning.
    2. Begin development of revised effluent guidelines for the Iron 
and Steel Manufacturing category.
    3. Initiate three preliminary studies to assist in determining 
whether new or revised rules should be developed for particular 
categories. Each preliminary

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study will generally take approximately two years to complete.
    4. Complete preliminary studies on the Photographic Processing and 
Chemical Formulating and Packaging industries.
    5. Plan for development of seven additional effluent guidelines, 
either new or revised. The point source categories to be covered by 
these guidelines will be identified in future biennial Effluent 
Guidelines Plans. EPA's current plan is to begin development of one 
additional rule in 1996 and two rules each year from 1997 to 1999, with 
proposed rules published between 1998 and 2001, and final action taken 
between 2000 and 2003 respectively.

IV. Effluent Guidelines Program Background

A. Statutory Framework

    The Federal Water Pollution Control Act (FWPCA) of 1972 (Pub. L. 
92-500, Oct. 18, 1972) (the ``Act'') established a program to restore 
and maintain the integrity of the nation's waters. To implement the 
Act, Congress directed EPA to issue effluent limitation guidelines, 
pretreatment standards, and new source performance standards for 
industrial dischargers. These regulations were to be based principally 
on the degree of effluent reduction attainable through the application 
of control technologies.
    The 1977 amendments to the FWPCA, known as the Clean Water Act 
Amendments (Pub. L. 95-217, Dec. 27, 1977) (CWA), added an additional 
level of control for conventional pollutants such as biochemical oxygen 
demand (BOD) and total suspended solids (TSS), and stressed additional 
control of 65 toxic compounds or classes of compounds (from which EPA 
later developed a list of 126 specific ``priority pollutants''). To 
further strengthen the toxics control program, sec. 304(e), added by 
the 1977 amendments, authorized the Administrator to establish 
management practices to control toxic and hazardous pollutants in plant 
site runoff, spillage or leaks, sludge or waste disposal, and drainage 
from raw material storage.
    The effluent guidelines promulgated by EPA reflect the several 
levels of regulatory stringency specified in the Act, and they also 
focus on different types of pollutants. Section 301(b)(1)(A) directs 
the achievement of effluent limitations requiring application of best 
practicable control technology currently available (BPT). In general, 
effluent limitations based on BPT represent the average of the best 
treatment technology performance for an industrial category. For 
conventional pollutants listed under sec. 304(a)(4), sec. 301(b)(2)(E) 
directs the achievement of effluent limitations based on the 
performance of best conventional pollutant control technology (BCT). 
The Act requires that BCT limitations be established in light of a two-
part ``cost-reasonableness'' test. The test, which assesses the 
relative costs of conventional pollutant removals, is described in 
detail in the Federal Register notice promulgating the final BCT rule 
on July 9, 1986 (51 FR 24974).
    Both BPT and BCT regulations apply only to direct dischargers, 
i.e., those facilities that discharge directly into waters of the 
United States. In general, regulations are not developed to control 
conventional pollutants discharged by indirect dischargers because the 
POTWs receiving those wastes normally provide adequate treatment of 
these types of pollutants or they can be adequately controlled through 
local pretreatment limits.
    For the toxic pollutants listed in sec. 307(a), and for 
nonconventional pollutants, secs. 301(b)(2)(A), (C), (D) and (F) direct 
the achievement of effluent limitations requiring application of best 
available technology economically achievable (BAT). Effluent 
limitations based on BAT are to represent at a minimum the best control 
technology performance in the industrial category that is 
technologically and economically achievable.
    In addition to limitations for existing direct dischargers, EPA 
also establishes new source performance standards (NSPS) under sec. 306 
of the Act, based on the best available demonstrated control 
technology, processes operating methods, or other alternatives. NSPS 
apply to new direct dischargers. Generally the NSPS limitations are to 
be as stringent, or more stringent than BAT limitations for existing 
sources within the industry category or subcategory.
    Although the limitations are based on the performance capability of 
particular control technologies, including in some cases in-process 
controls, dischargers may meet their requirements using whatever 
combination of control methods they choose, such as manufacturing 
process or equipment changes, product substitution, and water re-use 
and recycling. The limitations and standards are implemented in permits 
issued through the National Pollutant Discharge Elimination System 
(NPDES) pursuant to sec. 402 of the Act for point sources discharging 
directly to the waters of the United States.
    Section 402 of the CWA provides for the issuance of permits to 
direct dischargers under NPDES. These permits, which are required by 
sec. 301, are issued either by EPA or by a State agency approved to 
administer the NPDES program. Individual NPDES permits must incorporate 
applicable technology-based limitations contained in guidelines and 
standards for the industrial category in question. Where EPA has not 
promulgated applicable technology-based effluent guidelines for an 
industry, sec. 402(a)(1)(B) provides that the permit must incorporate 
such conditions as the Administrator determines are necessary to carry 
out the provisions of the Act. In other words, the permit writer uses 
best professional judgment (BPJ) to establish technology-based 
limitations for the dischargers.
    Indirect dischargers are regulated by the general pretreatment 
regulations (40 CFR Part 403), local discharge limits developed 
pursuant to Part 403, and categorical pretreatment standards for new 
and existing sources (PSNS and PSES) covering specific industrial 
categories. These categorical standards under sections 307(b) and (c) 
apply to the discharge of pollutants from non-domestic sources which 
interfere with or pass through publicly owned treatment works (POTWs), 
and are enforced by POTWs or by State or Federal authorities. The 
categorical pretreatment standards for existing sources covering 
specific industries are generally analogous to the BAT limitations 
imposed on direct dischargers. The standards for new sources are 
generally analogous to NSPS.
    To ensure that effluent guidelines remain current with the state of 
the industry and with available control technologies, section 304(b) of 
the Act provides that EPA shall revise the effluent guidelines at least 
annually if appropriate. In addition, section 301(d) provides that EPA 
shall review and if appropriate, revise any effluent limitation 
required by section 301(b)(2).

B. Components of an Effluent Guideline Regulation

    The principal components of effluent guideline regulations are 
numerical wastewater discharge limitations controlling specified 
pollutants for a given industry. These are typically concentration-
based limits (specified in units such as milligrams of pollutant per 
liter of water) or production-based mass limits (specified in units 
such as milligrams of pollutant per unit of production). Numerical 
limits also cover parameters such as pH and temperature.

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    A guideline often subcategorizes an industry based on differences 
in raw materials, manufacturing processes, characteristics of the 
wastewaters, or type of product manufactured; in some cases, non-water 
quality environmental impacts or other appropriate factors that justify 
the imposition of specialized requirements on the subcategorized 
facilities are used as a basis. EPA develops a set of effluent 
limitations for each category or subcategory at each level of control 
(BPT, BAT, etc.) that is addressed in the guideline.
    A guideline also may prescribe Best Management Practices (``BMPs'') 
in addition to or in lieu of numerical limits. BMPs may include, for 
example, requirements addressing the minimization or prevention of 
storm water runoff, plant maintenance schedules and requirements 
addressing the training of plant personnel.

C. Development of Effluent Guideline Regulations

    EPA has accumulated substantial experience and expertise in the 
course of preparing 51 effluent guidelines. This section of the notice 
summarizes the various tasks which the Agency typically undertakes in 
an effluent guideline rulemaking.
    EPA begins work on an effluent guideline rulemaking project by 
tentatively defining the scope and dimensions of the industry category. 
The Agency determines the size of the category as it has been defined, 
using all available sources of information. Given the diversity of 
regulatory categories, no single source suffices to establish size. At 
various times, EPA has used one or more of the following sources: 
standard published sources, information available through trade 
associations, data purchased from the Dun and Bradstreet, Inc. data 
base, other publicly available data bases, U.S. Census Bureau data, 
other U.S. Government information, and any available EPA data base. If 
a category is very large and/or diverse, the Agency will determine 
whether it can be broken down into appropriate categories or 
subcategories. If more than one subcategory can be identified, the 
Agency may need to establish priorities for regulation.
    EPA works with interested stakeholders early in the regulation 
development process. State and local regulatory officials familiar with 
the industry are consulted, and business associations and citizen 
groups are also invited to share information.
    Regulatory information about industry categories is obtained by EPA 
largely through its survey questionnaires, site visits and wastewater 
sampling. Survey questionnaires solicit detailed information necessary 
to assess the statutory rulemaking factors (particularly technological 
and economic achievability of available controls), water use, 
production processes, and wastewater treatment and disposal practices. 
A significant portion of the Agency's questionnaires typically seek 
information necessary to assess the economic achievability of a 
prospective regulation.
    Generally, the Agency defines its site visits and wastewater 
sampling effort based on information received in response to the 
questionnaires. While the questionnaire provides information about 
production processes, water uses and, in general terms, what is found 
in the industry's wastewater, on-site sampling and detailed monitoring 
data are used to characterize the pollutants found in discharges. Site 
visits are also used to assess manufacturing processes, wastewater 
generation, pollutant control technologies, pollution prevention 
opportunities (e.g., process changes), and potential non-water quality 
impacts of effluent guidelines (i.e., air emissions, sludge generation, 
energy usage).
    In developing a list of pollutants of concern for an industry, EPA 
initially will study wastewater samples for all pollutants that can be 
measured by recognized analytical methods.
    Currently over 457 pollutants or analytes can be measured by these 
methods. This includes the subset of 126 pollutants known as 
``priority'' pollutants developed pursuant to CWA sec. 307(a). EPA will 
develop new analytical methods to cover additional pollutants as 
necessary. For example, the Agency has developed new methods for use in 
the Pesticides, Pulp and Paper, Pharmaceuticals, and Offshore Oil and 
Gas effluent guidelines. (EPA generally proposes any new methods for 
public comment concurrently with the proposed rule.)
    Most of the effluent sampling and analysis that has been conducted 
specifically to support effluent guideline regulations promulgated to 
date has been conducted by EPA. On occasion, however, these activities 
have been pursued on a cooperative basis with industry parties. For 
example, EPA and numerous pulp and paper manufacturers participated in 
cooperative efforts to sample and analyze effluent, wastewater 
treatment sludge, and pulp from domestic mills that bleach chemical 
pulp in their production processes.
    EPA conducts engineering and statistical analyses of the technical 
data to develop control and treatment options for the pollutants of 
concern, and the projected costs for these options. The Agency 
considers the costing information and economic data gathered from the 
survey and other sources in its economic impact analysis, and then 
selects one or more of the options as the basis for a rulemaking 
proposal. It also develops assessments of the environmental impact of 
the industry discharges, and may conduct a regulatory impact analysis 
as well.
    The Regulatory Flexibility Act of 1980, as amended by the Small 
Business Regulatory Enforcement Fairness Act of 1996 (SBREFA) (Title 
III of Pub.L. 104-121, March 29, 1996), requires that EPA conduct 
regulatory flexibility analyses for rules which have a significant 
impact on a substantial number of small entities. These analyses are to 
assess the impact of the rule on small entities and consider 
alternative ways of reducing those impacts. Section 344 of SBREFA also 
requires EPA to organize a ``small business advocacy review panel'' for 
each rule where a regulatory flexibility analysis is required.
    Prior to publishing a proposed rule, EPA usually conducts a public 
meeting to discuss the Agency's findings and describe the general 
outlines of the rule. Following publication, a hearing is conducted 
during the public comment period, and supplemental notices of new data 
may be published, if appropriate.
    The Agency's outreach efforts to improve the regulatory development 
process have involved some industries subject to effluent guidelines. 
One such special effort is the Common Sense Initiative (CSI), a 
committee established under the Federal Advisory Committee Act 
(FACA)(Pub.L. 92-463). Through CSI, EPA has brought together federal, 
state, and local government representatives, environmental interest and 
environmental justice leaders, labor representatives, and industry 
executives to examine the full range of environmental requirements 
affecting six pilot industries. These six teams are exploring 
comprehensive strategies for environmental protection which include 
regulatory and voluntary approaches on which all can agree. Two of the 
six teams, Metal Finishing and Iron and Steel, are discussing effluent 
guidelines issues as well as other regulations. EPA looks forward to 
receiving recommendations from these CSI teams.

D. NRDC Litigation and Consent Decree

    EPA has developed today's proposed Effluent Guidelines Plan 
pursuant to a consent decree in NRDC et al v. Browner (D.D.C. Civ. No. 
89-2980, January 31, 1992, as modified). The Decree commits EPA to 
schedules for proposing and

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taking final action on effluent guidelines, and also for conducting 
preliminary studies. Some of the industry categories to be regulated 
are specified in the Decree. For the remaining required rulemakings,
    EPA retains the discretion to select guidelines for development 
based on Agency priorities.
    EPA will use the results of the preliminary studies and other 
information (such as public comments and recommendations from state and 
local governments) to select industries for future regulation. The 
Decree requires the Agency to study eleven industries.
    The Decree also required EPA to establish the Effluent Guidelines 
Task Force, an advisory committee, to formulate recommendations for 
improvements to the effluent guidelines program. The Agency created the 
Task Force in 1992. The Task Force has held several public meetings and 
has begun to present recommendations to the EPA Administrator. The work 
of the Task Force is discussed further in Section V of today's notice.
    Since 1992, EPA and NRDC have agreed to several modifications of 
the Decree consisting of deadline extensions for certain rules.

V. Today's Proposed Effluent Guidelines Plan

A. Effluent Guidelines Currently Under Development

1. Schedule for Ongoing Rulemaking
    The Agency is currently in the process of developing new or revised 
effluent guidelines for 10 categories. (These categories were listed in 
the Agency's 1994 Effluent Guidelines Plan.) The categories and actual 
or Consent Decree dates for proposal and final action are set forth in 
Table 1.

        Table 1.--Effluent Guidelines Currently Under Development       
------------------------------------------------------------------------
                                             Proposal      Final action 
                                         -------------------------------
                Category                  Consent decree                
                                             or actual    Consent decree
------------------------------------------------------------------------
Pulp, Paper and Paperboard..............        12/17/93           (\1\)
Pesticide Formulating, Packaging, and                                   
 Repackaging............................         4/14/94            9/96
Centralized Waste Treatment.............         1/27/95        \2\ 9/96
Coastal Oil and Gas Extraction..........         2/17/95           10/96
Pharmaceutical Manufacturing............          5/2/95        \2\ 8/96
Metal Products and Machinery, Phase.....        15/30/95        2,3 9/96
Industrial Laundries....................       \2\ 12/96       \2\ 12/98
Transportation Equipment Cleaning.......       \2\ 12/96       \2\ 12/98
Landfills and Incinerators..............        \2\ 3/97        \2\ 3/99
Metal Products and Machinery, Phase 2...       \3\ 12/97       2,3 12/99
------------------------------------------------------------------------
\1\ The Pulp, Paper and Paperboard rulemaking is not covered by the     
  January 31, 1992 consent decree.                                      
\2\ EPA is discussing extensions to Consent Decree dates with NRDC.     
\3\ EPA is considering merging Phases 1 and 2 of the Metal Products and 
  Machinery rule. See discussion below.                                 

    The Agency has only recently received funding for Fiscal Year 1996, 
and funding restrictions may affect rulemaking schedules. EPA is 
discussing extensions to all the Consent Decree dates with NRDC, for 
both budgetary reasons and specific policy, technical and 
administrative issues in some regulations.
2. Changes in Rulemaking Scope, Schedules and/or Organization
    a. Metal Products and Machinery. EPA is considering merging Phases 
1 and 2 of the Metal Products and Machinery rule. The Phase 1 proposed 
rule, covering seven industry sectors, was published on May 30, 1995 
(60 FR 28209). Such a merger would mean that EPA would not proceed with 
a final rule for Phase 1, but would issue a new proposal covering both 
phases (15 sectors total) and promulgate a final rule covering both 
phases.
    There are several reasons why a single final rule for this category 
would be desirable:
     The same basis and applied metals as well as the same 
manufacturing and wastewater treatment unit operations typically are 
used throughout both phases of the MP&M category. The classification of 
a facility as MP&M Phase 1 or Phase 2 should not affect its ability to 
treat its wastewater to a given level.
     The complexities of having different effluent limits 
across the two phases (for the same pollutant and level of control) 
would be avoided. Having one set of effluent limits for the MP&M 
category greatly simplifies implementation for POTWs and compliance for 
facilities.
     Merging these rules would allow EPA to use POTW survey 
data being collected for Phase 2 to develop more precise estimates of 
the administrative burden for all sectors, and to consider aggregated 
environmental impacts and compliance costs.
     Opportunities to explore alternative permitting 
requirements such as BMPs would be enhanced.
     The additional time needed for a combined rule would allow 
more extensive stakeholder involvement. For example, members of the 
Metal Finishing CSI team have expressed interest in working with EPA on 
obtaining additional data, and POTWs and NPDES permit authorities will 
be able to provide more substantive data on implementation issues.
    EPA invites comment on the merits of combining the two phases into 
one rule.
    b. Pulp, Paper and Paperboard. EPA issued the proposed Pulp, Paper 
and Paperboard ``Cluster Rules'', covering both effluent guidelines and 
National Emission Standards for Hazardous Air Pollutants (NESHAP), on 
December 17, 1993 (40 CFR part 430, 58 FR 66078). The proposed effluent 
guidelines were organized into 12 subcategories.
    EPA plans to promulgate final effluent guidelines for two 
subcategories later this year: Bleached Papergrade Kraft and Soda 
(proposed Subpart B), and Papergrade Sulfite (proposed Subpart E). At 
least eight of the remaining subcategories will be addressed in a final 
rule expected in 1997: Unbleached Kraft; Semi-Chemical; Mechanical 
Pulp; Non-Wood Chemical Pulp; Secondary Fiber Deink; Secondary Fiber 
Non-Deink; Fine and Lightweight Papers from Purchased Pulp; Tissue, 
Filter, Non-Woven, and Paperboard from Purchased Pulp (proposed 
Subparts C, F, G, H, I, J, K and L, respectively). Two remaining 
subcategories, Dissolving Kraft (proposed Subpart A) and

[[Page 35046]]

Dissolving Sulfite (proposed Subpart D), will be addressed in a 
subsequent rule.
    c. Pharmaceutical Manufacturing. EPA published a proposed rule for 
the Pharmaceutical Manufacturing Category on May 2, 1995 (60 FR 21592). 
In that notice, the Agency stated that it is required by the Clean Air 
Act Amendments of 1990 (CAAA) to promulgate NESHAP regulations by 1997; 
no NESHAP regulations were proposed along with the water regulations.
    In developing the proposed effluent guidelines and standards, EPA 
coordinated its efforts to make sure that the rule would be consistent, 
within the constraints of the governing statutes, with the forthcoming 
air emissions standards. The Agency's analysis of industry wastewater 
showed a substantial portion consists of volatile organic compounds 
which pose a risk to human health through increased exposure to 
carcinogens and increased exposure to systemic toxicants from 
atmospheric exposure.
    The Agency intends to propose the NESHAP in November 1996, and 
promulgate the standards in November 1997. The current Consent Decree 
for effluent guidelines requires promulgation for the pharmaceutical 
industry by August 1996. While EPA's original intent was to issue 
separate air and water rules utilizing a common technology basis, the 
Agency is considering the merits of jointly promulgating the air and 
water regulations by the 1997 CAAA deadline. The Agency believes that a 
single promulgation of industry standards will be beneficial in terms 
of consistency and clarity, and will result in more integrated multi 
media regulatory controls. EPA also believes that these benefits would 
outweigh benefits that might be obtained from a slightly earlier 
promulgation of the effluent guidelines alone.
    EPA invites public comment on the merits of simultaneous 
promulgation of air and water standards for this industry.
    d. Transportation Equipment Cleaning. EPA began development of 
effluent guidelines for the Transportation Equipment Cleaning industry 
assuming that the scope would include effluent generated from the 
interior cleaning of tank trucks, rail tank cars, and tank barges, and 
the exterior cleaning and de-icing of aircraft. However, as a result of 
data collection and analysis, the Agency has decided to limit the scope 
of the rule to effluent generated from tank and container interior 
cleaning.
    Last year EPA decided to exclude aircraft exterior cleaning and de-
icing from the current effluent guidelines development effort because 
of other Agency requirements recently promulgated under the stormwater 
program (60 FR 51215, September 29, 1995). New stormwater permits 
applicable to airports require implementation of pollution prevention 
plans to control stormwater discharges. EPA anticipates that the 
stormwater permit program will reduce, and may eliminate the need for a 
specific effluent guideline covering these discharges.
    The Agency will track the effectiveness of stormwater pollution 
prevention efforts to control deicing discharges and other airport 
stormwater runoff and decide later if an effluent guideline is 
necessary for aircraft exterior cleaning and de-icing.

B. Process for Selection of New Effluent Guideline Regulations

    Section 304(m) does not specify criteria that the Agency should use 
to select categories for regulation by effluent guidelines. For the 
first Effluent Guidelines Plan, published January 2, 1990 (55 FR 80), 
EPA listed criteria it had used to select categories. The 1992 consent 
decree, while specifying some of the categories to be regulated, allows 
the Agency flexibility in selecting future categories for regulation, 
and does not specify selection criteria. Therefore EPA intends to 
continue to use selection criteria such as those listed in the 1990 
plan.
1. Selection Criteria and Data Sources
    a. Selection Criteria. EPA considers three kinds of criteria for 
selection of categories: environmental factors, utility to states and 
POTWs, and economic impacts. The environmental factors allow the Agency 
to compare the discharges of various categories to approximate risk to 
human health and the environment. The specific factors used have 
included:
     Total priority pollutants discharged (lbs/day).
     Total pollutants discharged (lbs/day).
     Total priority toxic pounds-equivalent discharged (lbs/
day).
     Number of carcinogens present in discharges.
     Number of facilities discharging to water quality-impaired 
receiving waters.
     Number of documented cases of sediment contamination.
    Data for all of the above factors may not be available for all of 
the categories under consideration. EPA has found that an estimate of 
the total priority pollutants discharged is usually available for each 
category, and can be used to calculate the total priority toxic pounds-
equivalent discharged. These have been among the most useful indicators 
for selecting categories for effluent guidelines. The toxic pounds-
equivalent (developed for most of the 126 priority pollutants and 
hundreds of nonconventional pollutants) are calculated using the mass 
loading of a pollutant (measured in pounds), multiplied by a weighting 
factor for each pollutant based on toxicity and potential for 
bioaccumulation. The individual values are then summed to provide the 
category value.
    The second broad criterion EPA uses in selecting industries for 
development of effluent guidelines is the ``utility'' or ``usefulness'' 
of the regulation. This factor reflects the fact that, even in the 
absence of a national effluent guideline, a discharger of pollutants 
into waters of the United States must obtain an NPDES permit 
incorporating technology-based effluent limits. Permit writers at 
facilities not covered by national guidelines are directed to use Best 
Professional Judgment in determining what technology-based limits are 
appropriate. (A roughly analogous situation exists with respect to the 
development of ``local limits'' for those facilities discharging into 
POTWs). At some facilities, however, development of BPJ permits by 
individual permit writers may be especially difficult due to the 
complexity of wastestreams, presence of pollutants with poorly 
understood treatability characteristics, or other factors. National 
effluent guidelines may be especially appropriate for such facilities 
and the categories of which they are a part. Promulgation of new and 
revised categorical pretreatment standards was the first recommendation 
in ``National Pretreatment Program: Report to Congress'' (EPA 21W-4004, 
July 1991).
    In assessing the utility or usefulness of a national effluent 
guideline, EPA typically looks at a variety of factors. Among these 
are:
     Average priority pollutants discharged per facility;
     Average priority toxic pounds-equivalent discharged per 
facility;
     Number of discharging facilities.
    The number of priority pollutants discharged per facility and the 
toxic pounds-equivalent levels are considered as relative indicators of 
plant complexity. The number of discharging facilities signifies the 
greater impact of a guideline on a large-population category, in 
reducing permit writing workload and implementing permit limitations on 
a timely basis.

[[Page 35047]]

    The economic impact factors consist of cost and economic 
achievabilty of additional controls, and investment cycle. The cost and 
economic achievability factor is an estimate based on the Agency's 
projection of what the ``best available technology'' would be in a new 
or revised regulation, and the impacts of such costs on the industry. 
The investment cycle factor is a consideration of the timing of an 
industry's capital investments in equipment. This is based on an 
assumption that if there is a periodic equipment replacement cycle for 
an industry, the economic impact of a new or revised regulation may be 
less if the compliance period coincides with the replacement cycle. 
These economic factors are difficult to estimate in the absence of 
detailed questionnaire data and other information that are gathered 
during a regulation development project, but EPA attempts to assemble 
some economic projections during its preliminary studies.
    These criteria are groups of factors that the Agency considers and 
weighs in setting rulemaking priorities. The criteria can not be 
applied mechanically. In applying the criteria and selecting categories 
of dischargers for the preparation of new or revised guidelines, the 
Agency uses considerable judgment grounded in its expertise in the 
regulation of the discharge of pollutants and the administration of the 
Clean Water Act and other authorities that address pollution of the 
nation's waters.
    The Effluent Guidelines Task Force has developed recommendations on 
criteria for selecting industries for preliminary studies. The 
recommendations are discussed in section V below.
    b. Data Sources. The Agency evaluates which categories should be 
subject to new or revised effluent guidelines using the following 
sources of information:
     Recommendations from NPDES permit writers in its own 
regional offices and State agencies.
     Recommendations from POTWs and the Association of 
Metropolitan Sewerage Agencies (AMSA).
     Preliminary studies of industries, which are discussed 
further in section IV.C of today's notice.
     Rulemaking records from existing effluent guidelines, 
which document unresolved issues from past rulemaking activity for some 
categories.
     Other EPA reports, such as the annual Toxic Release 
Inventory (TRI), ``An Overview of Sediment Quality in the United 
States'' (EPA 905/9-88-002, June 1987), and ``National Sediment 
Contaminant Point Source Inventory: Analysis of Facility Release Data'' 
(Draft, May 1996).
     Reviews of variance requests and petitions.
     Public comments.
    EPA continues to rely on these data sources for effluent guidelines 
planning. The Effluent Guidelines Task Force has developed 
recommendations on use of data sources for selecting industries. These 
recommendations are discussed below.
2. New Rulemaking Activities
    The 1992 consent decree requires that EPA begin rulemaking on two 
categories in 1996, and start work on two more in 1997.
    a. Iron and Steel Manufacturing. EPA has decided to develop 
revisions for the Iron and Steel Manufacturing category (40 CFR part 
420). This decision is based on consideration of a preliminary data 
summary on the category recently prepared by the Agency. Initial 
development of a proposed rule will begin later this year, with 
proposal scheduled for December 2000 and promulgation scheduled for 
December 2002. The preliminary data summary is discussed below in 
section IV.C.1.
    b. Other Rules. EPA has not yet selected additional rulemaking 
projects. EPA is not proposing specific industrial categories for 
selection in today's notice. However, based on the above discussion of 
data sources, the Agency may choose the next categories from the 
following list:
     Petroleum Refining.
     Textile Mills.
     Inorganic Chemicals.
     Steam Electric Power Generating.
     Photographic Processing.
     Chemical Formulators and Packagers.
     Other categories being considered for preliminary studies. 
Recent, ongoing and future preliminary studies are discussed briefly in 
Section IV.C of today's notice. The public is invited to comment on 
these categories, as well as recommending other categories for 
development of new or revised effluent guidelines.

C. Preliminary Studies

    The purpose of a Preliminary Study is to indicate whether and to 
what extent an industry discharges toxic and nonconventional 
pollutants, and to provide a basis for comparison with other industries 
for purposes of assigning priorities for regulation. The results of a 
Preliminary Study for an industry are published in a ``Preliminary Data 
Summary.'' The Preliminary Data Summary presents a synopsis of recent 
technical and economic information on a category of dischargers. The 
Preliminary Data Summaries are not used directly as a basis for 
rulemaking, but are used in the Agency's determination of which 
categories most require preparation of new or revised effluent 
guidelines. (They also may be expanded to become guidance documents for 
NPDES permit writers and POTWs.)
    A Preliminary Study typically collects data on the following:
     The products manufactured and/or services provided by an 
industry;
     Number, types and geographic location of facilities;
     Destination of discharges (directly to surface waters, 
indirectly to POTWs, or both);
     Characterization of the wastewater discharges and 
identification of pollutants present in the wastestreams (e.g., mean 
concentrations of pollutants, wastewater volumes, mass loadings);
     Sampling and analytical methods employed to ascertain the 
presence and concentration of pollutants in the wastewater;
     Source reduction, recycling and pollution control 
technologies in use and potentially applicable to the industry;
     Non-water quality environmental impacts associated with 
wastewater treatment in the industry (e.g., air emissions, wastewater 
treatment sludges, and other wastes including hazardous wastes);
     Cost of control technologies in place and cost estimates 
for additional controls;
     Cost-effectiveness of reduction of toxic and 
nonconventional pollutants;
     Estimates of water quality impacts of discharges within 
the subject industry;
     Economic assessment (current financial condition of firms 
in the industry, industry expansion or reduction trends, size 
characterization of firms, impact of estimated treatment costs on 
representative facilities).
    The type and level of detail of information varies among the 
Preliminary Data Summaries, depending on the data available to the 
Agency when each document is prepared and whether the industry is 
covered by an existing effluent guideline. For example, some of the 
Summaries have comprehensive, primary data on the number and location 
of the discharging facilities while others contain estimates drawn from 
secondary data sources. However, the Summaries represent the Agency's 
best characterization of industries at the time the summaries are 
compiled. As additional data are

[[Page 35048]]

acquired, they are factored into the evaluation process. Consequently, 
the Preliminary Data Summaries are also subject to revision. The Agency 
has made the Summaries available to the public and intends to continue 
to do so.
1. Recently Completed Studies
    a. Petroleum Refining. The BAT regulations for the Petroleum 
Refining category were promulgated in 1982 at 40 CFR part 419. The 
preliminary data summary, completed in 1994, compared data collected by 
EPA in 1992 and 1993 with data collected for the 1982 rule in the late 
1970s.
    Historically, U.S. petroleum refineries have been large water 
users. The industry has changed significantly since the previous 
rulemaking with regard to patterns of water usage and product 
formulations. Many of the refineries studied use well below 50 percent 
of the flows predicted by the Agency's 1982 BPT and BAT flow models, 
with some refineries as low as 15 percent of their water use rates 
predicted by the BPT flow model. (The BAT regulations did not require 
any further flow reductions; however, as a result of litigation, the 
1986 amendment to BAT and NSPS incorporated additional flow reduction 
as part of the basis for limitations for phenol and total chromium.)
    Refineries have modified product formulations such as gasoline to 
comply with Clean Air Act requirements covering volatile organic 
compounds and lead. Such manufacturing process changes have led to 
modifications of wastewater collection systems, which may still be 
underway at some facilities.
    A summary of the treatment technologies that are identified as 
currently in place is presented in the report. Of the 27 refineries 
studied, 20 are direct dischargers and 7 are indirect dischargers. All 
of the 20 direct discharging refineries have some form of biological 
treatment. Three have sand filtration and one facility has an in-plant 
activated carbon system in addition to biological treatment.
    A summary of the effluent data collected from six refineries 
visited as part of this study compares the pollutants covered by BPT 
with the concentrations used as a basis to develop the BPT limitations 
in 1974. Effluent concentration data are also summarized for a number 
of other pollutants, including pollutants covered by the current 
effluent guidelines. These data were obtained from the following 
sources:
     Average concentration data (over a one year period) 
collected during Environment Canada's ``Seven Refineries Study'' 
conducted in 1989;
     Long term average data collected from seven U.S. 
refineries during the Canadian study;
     EPA's Permit Compliance System (PCS) covering 138 direct 
discharging refineries for 1992.
    A preliminary assessment of the pollutant loadings and potential 
water quality impacts of discharges from petroleum refining facilities 
to surface waters and POTWs, using readily available data and 
information sources on refinery wastewater volume and constituents, 
annual loadings and average concentration, are estimated in the 
summary. In addition, potential aquatic life and human health impacts 
are summarized based on a review of documented environmental impacts 
and a review of the physical-chemical properties and toxicity of 
pollutants associated with wastewater discharges from the petroleum 
refining industry.
    EPA's categorization of the 98 pollutants of interest, based on 
their fate and impact, indicated that approximately one quarter of the 
pollutants exhibit high or moderate acute toxicity to aquatic life. EPA 
classifies 23 of the pollutants as potential carcinogens, while 52 are 
recognized as human systemic toxicants. Of the pollutants of concern, 
41 have EPA-assigned concentration limits for drinking water 
protection. Approximately half of the pollutants are expected to 
biodegrade fast or moderately fast in oxygenated water. However, 
several highly to moderately toxic pollutants are resistant to 
biodegradation or only slowly biodegrade. Whole effluent toxicity (WET) 
tests done at 47 petroleum refining facilities in Texas, Louisiana, and 
Oklahoma showed approximately 40 percent failed at least one WET test 
for acute, chronic, or sublethal effects. Tests conducted at five 
refineries in the San Francisco Bay region were in compliance with 
chronic WET test requirements. Twenty petroleum refining facilities are 
identified by States as point sources impairing (or contributing to 
impairment of) water quality and are included on their CWA Section 
304(l) ``Short List'', which identifies facilities discharging to 
impaired water bodies. Three cases of sediment contamination are 
identified with petroleum refineries based on a 1987 report.
    b. Metal Finishing. The Metal Finishing regulations were 
promulgated in 1983 at 40 CFR part 433. The preliminary data summary, 
completed in 1994, briefly summarized the Metal Finishing regulations 
and a related category, Electroplating, promulgated in 1981 at 40 CFR 
part 413. The summary also discussed then-current efforts in the 
development of the Metal Products and Machinery (MP&M) rule. Because 
the MP&M rule was expected to significantly overlap in coverage with 
the Metal Finishing rule, the preliminary data summary deferred 
additional technical, economic and environmental assessment of the 
industry.
    c. Textile Mills. The Textile Mills regulations were promulgated in 
1982 at 40 CFR part 410. EPA completed its study of the industry in 
1995. The numbers of establishments engaged in the manufacture of 
textile products were estimated at nearly 6,000. Approximately 35 to 50 
percent are engaged in wet processing (dyeing, finishing, printing and 
coating), and at least 90 percent of these sources discharge their 
process wastewater to POTWs. Water conservation programs developed by 
textile facilities have reduced the total volume of wastewater 
discharged through more efficient use of process water. Compared with 
1980, the industry in 1993 averaged 22 percent less water per pound of 
fiber processed. A survey of POTWs afforded a review of the 
pretreatment technologies and innovative pollution prevention 
techniques that are currently being employed by textile users of POTWs.
    Pollutant parameters in textile process wastewater were 
characterized before and after treatment. Available data indicated: (1) 
Few organic priority pollutants were identified consistently and, when 
detected, were quantified at very low concentrations (less than 100 
ppb); and (2) metal parameters consistently detected at low levels 
include: copper, chromium, and zinc. At textile operations using 
metallized dyes, copper, chromium or nickel are often chelated by 
organic ligands to form water-soluble metal complexes. While their 
solubility limits the removal of such metal complexes during biological 
treatment, complexation also suppresses the immediate and subsequent 
bioavailability (toxicity) of metal species in the treated wastewater.
    Although most textile facilities engaged in wet processing 
discharge their wastewater to POTWs, a survey of POTWs with textile 
users did not identify any general operational problems that could be 
related to the lack of categorical pretreatment standards for this 
industry. In the absence of categorical pretreatment standards, each 
POTW surveyed has developed local limits for those parameters it has 
determined must be controlled to assure compliance with its own NPDES 
permit.

[[Page 35049]]

    d. Inorganic Chemicals. The Inorganic Chemicals regulations were 
promulgated in 1982 (Phase 1) and 1984 (Phase 2) at 40 CFR part 415. 
EPA completed its study of the industry in 1994. EPA identified 
approximately 51 chlor-alkali facilities, 47 inorganic pigment 
facilities, 140 industrial gas facilities, and 422 other inorganic 
chemical manufacturing facilities. These are believed to represent 
nearly complete coverage of this category in the United States. 
Inorganic chemicals are mostly used by major manufacturing industries 
to produce automobiles, steel, paper, petroleum products, and housing 
materials.
    EPA identified 30 inorganic pollutants and their compounds (13 
priority and 17 nonconventional) as pollutants of interest in the 
wastewater discharges from inorganic chemical manufacturing facilities. 
These include 15 metals, one metal oxide, two non-metallic elements, 
five inorganic acids, and seven other inorganic compounds. An analysis 
of 1992 data from PCS indicates that permit limits for copper and zinc 
are exceeded most frequently of the 12 metals examined. A chemical load 
analysis of the data shows that zinc represents the vast majority of 
total discharge quantity (about 70 percent) followed by chromium and 
nickel. A one-year chemical load analysis of surface water releases and 
transfers to POTWs of inorganic chemicals using 1992 TRI data shows 
that 5.4 million pounds are being released to surface waters and 27.1 
million pounds are being transferred to POTWs. Ammonia, ammonium 
nitrate and ammonium sulfate represent the vast majority of total 
releases, with ammonia being reported most frequently. Mercury was the 
most frequently reported metal in discharges from the 1992 TRI 
facilities. The total discharge of priority pollutants from the 
Inorganic Chemicals Manufacturing Category is estimated at 0.51 million 
pounds per year.
    EPA's categorization of the 30 pollutants of interest, based on 
their potential environmental fate and impact, indicates that one-third 
of the pollutants (10 of 30), primarily metals in their elemental form, 
are highly toxic to aquatic life. The Agency has set drinking water 
maximum contaminant level standards for approximately one-third of the 
pollutants (11 of 30), and about half (16 of 30) have been identified 
as human systemic toxicants. EPA classifies arsenic, cadmium, and lead 
as Class A, B1, and B2 carcinogens, respectively. Calculated toxic 
weighted loads, based on toxicity and bioaccumulation potential, 
indicate that approximately 40 percent of the weighted surface water 
releases are from priority pollutants and approximately 30 percent of 
POTW transfers are from priority pollutants. States, in developing 
lists of point sources impairing water quality under sec. 304(l), 
identified 27 inorganic chemical manufacturing facilities. Inorganic 
chemical manufacturing ranks first among 40 industrial categories as a 
source of potential sediment contaminants in a 1995 draft EPA report 
(``National Sediment Contaminant Point Source Inventory: Analysis of 
Release Data for 1992'', EPA Office of Science and Technology, May 1995 
draft). EPA also reports 12 cases of possible sediment contamination 
associated with inorganic chemical manufacturing.
    e. Steam Electric Power Generating. The Steam Electric Power 
Generating regulations were promulgated in 1982 at 40 CFR part 423. The 
Preliminary Data Summary for the Steam Electric Point Source Category 
was completed in 1995. The 1982 Guidelines and Standards are currently 
being applied to about 900 utility steam electric facilities, and 
potentially to over one thousand non-utility steam electric generators. 
Steam electric generation is by far the Nation's largest industrial 
water user, estimated at over 110 trillion (110  x  1012) gallons 
per year.
    Pollutants of concern for this industry include chlorine, mercury, 
arsenic, copper, zinc and lead. EPA estimates a total annual pollutant 
load of 22 million pounds, of which 727 thousand pounds are priority 
pollutants, based on 1992 PCS data. Chlorine and iron represent the 
vast majority of total loads, being 34 and 40 percent respectively. 
Zinc and copper represent the majority of priority pollutant loads, 
respectively comprising 37 and 28 percent of the total. When arranged 
by toxic weighted pounds chlorine is found to be the most significant 
pollutant, comprising 70 percent of total toxic pounds-equivalent. 
Mercury and arsenic contribute the greatest number of toxic pounds-
equivalent among the priority pollutants. These estimated pollutant 
loading represent only 361 of the 910 U.S. steam electric utility 
plants operating in 1992, due to insufficient data for the excluded 
facilities.
    The Steam Electric Industry ranks third among 44 industrial 
categories as a source of potential sediment impact. Categorization of 
the 53 pollutants of interest based on their environmental fate and 
impact indicate that 22 of the 53 are highly or moderately toxic to 
aquatic life. A review of documented environmental impacts shows that 
States identify 39 steam electric facilities as point sources impairing 
water quality based on their CWA Section 304(l) ``short list.''
    Due to many changes that have occurred in this industry since the 
1982 rule, the current guidelines and standards do not address issues 
such as:
     ``Non-utilities'', mainly comprised of cogenerators and 
renewable fuel burners,
     Combined cycle generators, with gas turbine exhaust heat 
driving a steam turbine,
     Use of bromine and other biocides in place of chlorine,
     Zebra mussel control strategies, and
     Wastewaters from a growing population of non-steam 
electric generators.
    f. Iron and Steel Manufacturing. The Iron and Steel Manufacturing 
regulations were promulgated in 1982 at 40 CFR part 420 and amended in 
1984. EPA completed its study of the industry in 1995. The industry has 
consolidated and modernized in the past fifteen years. Integrated mills 
continue to ``down-size'' to reflect changes in the demand of different 
steels and to remain competitive. ``Mini-mills'' continue to grow due 
to their ability to make higher quality steels. Coking operations are 
declining due to changes in iron-making processes. Continuous casting 
is now the norm for the industry due to the higher energy efficiency of 
the process over the traditional piecemeal casting operations. These 
changes are believed to be fostered by domestic and world competition.
    The 300 industry facilities are becoming more efficient. This has 
led to substantial changes in how the industry operates. Pollutant 
loadings are down due to improved recycle rates on many unit 
operations, more efficient processing of conventional operations, 
elimination of obsolete processes, improved computerization of 
manufacturing, changes in market demands, and improved treatment 
processes. Many better-performing mills are discharging wastewater 
loadings far below EPA's current standards.
    However, not all of the industry has kept pace with the improved 
operations or pollution prevention opportunities. Forty mills are 
included on the sec. 304(l) ``short list'', and a number of mills 
continue to discharge in excess of current effluent guidelines. 
Facilities in 10 of the 12 subcategories discharge some toxic and 
nonconventional pollutants that are not covered in the current 
regulation. Changes made by the industry in its cold forming operations 
have rendered some current standards inapplicable, and some elements of 
the current regulation are obsolete. Many better-performing mills are 
discharging

[[Page 35050]]

wastewater loadings far below EPA's current standards (e.g., 
Sec. 420.01(b), involving centralized waste treatment).
    Revised effluent guidelines for the Iron and Steel industry could 
result in a substantial reduction in pollutants discharged: as much as 
29 million pounds per year of total suspended solids, 6.9 million 
pounds of oil and grease, and 710,000 pounds of ammonia-N.
2. Ongoing Studies
    a. Photographic Processing. The Photographic regulations were 
promulgated in 1976 for BPT (direct dischargers) only, at 40 CFR part 
459. Subsequent to promulgation of the BPT rule, EPA collected some 
additional information to support development of BAT, NSPS and 
pretreatment standards, but no additional rules were promulgated. As of 
1980, the Agency estimated that 99 percent of 11,000 photographic 
processing facilities were indirect dischargers. Several POTWs have 
recommended that EPA develop categorical standards for indirect 
dischargers. While processing facilities are believed to be widely 
dispersed across the United States, POTW efforts vary considerably. 
Some POTWs have implemented local limits for silver and perhaps other 
pollutants, while others have no specific mechanisms for this industry.
    EPA is reviewing the pollutants of concern (such as silver, 
cyanide, and chromium), what technologies are available for controlling 
discharges and POTWs' efforts to address the discharges by means of 
local limits or other mechanisms. In addition to working with states 
and POTWs, the Agency is consulting with business associations in the 
review of industry-recommended silver management practices.
    b. Chemical Formulators and Packagers. Chemical formulators and 
packagers (CFP) purchase concentrated chemical products from chemical 
manufacturers, and mix or otherwise formulate and/or package them into 
end-use products for sale to consumers, businesses and institutions. 
CFP facilities are similar to pesticide formulating, packaging and 
repackaging (PFPR) facilities in that some discharge wastewater, while 
others have no discharge. However, some CFP facilities are not covered 
by either the impending PFPR final rule, the Organic Chemicals, 
Plastics and Synthetic Fibers (OCPSF) category (40 CFR part 414), nor 
the Inorganic Chemicals category (40 CFR part 415).
    In the course of developing the PFPR rule, EPA acquired some data 
on CFP facilities. EPA will continue to review these data and develop a 
profile of the industry's discharges.
3. Future Studies
    EPA intends to begin three preliminary studies in 1996. Studies are 
being considered on the following subjects:
    a. Coal Mining. Regulations for the Coal Mining category were 
promulgated in 1982 at 40 CFR part 434. The Agency is aware of several 
issues that have emerged subsequent to the rulemaking or that were not 
resolved in the promulgated rule. These include the question of whether 
there should be separate subcategories for remining operations and 
western coal mines; whether limitations on manganese discharges should 
be revised; whether the criteria for ``bond release'' as defined at 40 
CFR 434.11(d) should be revised; and whether discharges related to 
methane gas production should be regulated in Part 434.
    b. Feedlots. Regulations for the Feedlots category were promulgated 
in 1974 at 40 CFR part 412. The effluent guidelines, which apply to 
feedlots of 1,000 or more animal units (AUs), contain limitations 
requiring no discharge of process wastewater pollutants, based on 
treatment of wastes in lagoons or holding ponds. The Agency is aware of 
several issues which could be explored in a preliminary study. These 
include:
     Changes in industry (e.g., there has been an increase in 
recent years in the number of large corporate hog farms)
     The ability of facilities to comply using technology that 
was the basis for the 1974 effluent guidelines during chronic rainfall 
and snowmelt runoff events
     Regulatory coverage of livestock markets
     Proper runoff control structure dewatering to maintain 
free-board and land disposal of contained runoff by techniques 
consistent with non-point source controls.
    c. Stormwater Discharges. Stormwater discharges are explicitly 
addressed in several effluent guidelines, such as Fertilizer 
Manufacturing (40 CFR Part 418) and Coal Mining (40 CFR part 434). In 
addition, discharges associated with industrial activity and from 
municipal separate stormwater sewer systems serving a population of 
100,000 or more are subject to NPDES stormwater permitting requirements 
at 40 CFR 122.21 and 122.26. The stormwater permit program is being 
implemented by EPA and States utilizing the NPDES regulations and 
permits, including individual, general and sector permits. The Agency 
is considering whether development of additional technical information 
and guidance on characterizing stormwater discharges and evaluating the 
efficacy of controls would be useful to discharging facilities in 
complying with permit requirements. EPA may conduct a study to explore 
what kinds of documentation would be helpful. For example, the Agency 
could develop a compilation of municipal stormwater control techniques 
appropriate for specific situations, along with cost models and cost-
effectiveness analyses.
    d. Hospitals. BPT regulations for the Hospitals category were 
promulgated in 1976 at 40 CFR part 460. EPA published a Preliminary 
Data Summary on the Hospitals category in 1989. The 1989 summary 
reported that there were 6,870 registered hospitals in the United 
States as of 1985, and approximately 97 percent of these were indirect 
dischargers. A principal pollutant of concern from hospital discharges 
has been silver, emanating from processing of x-ray images. While some 
hospitals employ silver recovery systems, a national PSES limitation 
for silver may be useful to some POTWs in promoting fuller control of 
silver discharges. Recommended silver management practices developed by 
the photographic industry may be reviewed for relevancy to addressing 
hospital discharges. Additionally, the Agency may explore discharges 
associated with procedures for deactivation of infectious waste, 
including discharges from scrubber water of on-site incinerators.
    e. Ore Mining and Dressing. Most portions of the Ore Mining and 
Dressing category were promulgated in 1982 at 40 CFR part 440. (Subpart 
M, Gold Placer Mining Subcategory, was promulgated in 1988). EPA may 
study issues stemming from a pending action affecting some gold mines 
under Subpart J (see section IV.D.2 of today's notice), and may also 
examine the need for revised analytical methods for cyanide, which 
affects multiple subcategories in part 440.
    f. Glass Manufacturing. BPT regulations for the Glass Manufacturing 
category were promulgated in 1974 at 40 CFR part 426. The Agency is 
aware of changes in industry manufacturing practices since 1974 that 
may affect wastewater discharge characteristics, and revisions to the 
effluent guidelines may be appropriate. For example, there are new 
processes for manufacturing light bulbs and fiber optics, and there has 
been a substantial increase in production of float glass, while plate 
glass manufacturing has declined.

[[Page 35051]]

    g. Canmaking. Regulations for the Canmaking subcategory of the Coil 
Coating category were promulgated in 1983 at 40 CFR part 465, Subpart 
D. One of the pollutant parameters included in this subcategory is 
Total Toxic Organics (TTO). EPA's inclusion of the TTO limit was based 
on the industry's use of can sealant compounds. The Agency has received 
reports from some POTWs that industry may no longer be using these 
compounds, but POTWs continue to require TTO monitoring because the 
limitation remains in the regulation. EPA may investigate the TTO issue 
to determine whether a revision to the limitation is appropriate.
    h. Organic Chemicals, Plastics and Synthetic Fibers. Regulations 
for the OCPSF category were promulgated in 1987 at 40 CFR part 414. EPA 
may conduct a retrospective study of the industry's actual compliance 
strategies and incurred costs for complying with the final regulation 
in comparison to the Agency's projected technology bases and estimated 
costs of compliance used for developing the regulation. The Agency 
establishes end-of-pipe numerical standards based on the performance of 
specific waste management and wastewater treatment unit operations. 
Individual plants may select appropriate wastewater management 
practices and treatment alternatives to comply with the numerical 
standards. This study would identify the selected in-plant and end-of-
pipe wastewater treatment unit operations and determine the extent to 
which process modifications, source reduction, water conservation, and 
pollution prevention were used to meet the numerical standards. The 
study would identify the actual costs incurred to comply with the 
regulation and compare them to the Agency's estimated engineering costs 
of compliance. This information may assist the Agency in improving the 
accuracy of its general approach to estimating the engineering costs of 
compliance.
    i. Pulp, Paper and Paperboard. The proposed rule for the Pulp, 
Paper and Paperboard Category included BPT, BCT and NSPS for 
conventional pollutants for six of the proposed subcategories (Subparts 
G, H, I, J, K, and L), but did not address toxic and nonconventional 
pollutant discharges. EPA is aware of increased activity in the 
secondary fiber and deinking segments of the industry, and may conduct 
a study focusing on toxic and nonconventional pollutant discharges from 
these and other mills in these subcategories.
    j. Generic Effluent Guideline Issues. A number of suggestions which 
could affect numerous existing or planned effluent guidelines have been 
raised in the context of recently proposed regulations. Several of 
these suggestions involve implementation of effluent guidelines, while 
others directly impact the content of effluent guideline regulations. 
These suggestions include such things as allowing certification in lieu 
of monitoring for specified pollutants under defined circumstances, 
defining Best Management Practices in concert with concentration-based 
limitations as an alternative to mass-based limitations, considering 
exemptions for indirect dischargers below a cut-off point defined in 
terms of either flow or pollutant loadings, and allowing a reduced 
sampling frequency (e.g., once a year) for indirect dischargers under 
defined circumstances. EPA is aware of a great interest in some of 
these suggestions by the regulated community and local governments and 
may conduct a study to evaluate the potential effects of implementing 
these suggestions.

D. Other Rulemaking Actions

1. Leather Tanning and Finishing
    EPA is promulgating minor revisions to pretreatment standards for 
existing and new sources applicable to certain facilities in the 
Leather Tanning and Finishing point source category (40 CFR part 425). 
The facilities involved discharge process wastewaters to POTWs. EPA is 
eliminating the upper (alkaline) pH limits for facilities in these 
subcategories. Affected POTWs may still elect to set an alternative 
upper (alkaline) pH limit based on local circumstances. EPA is 
promulgating these changes as a ``direct'' final rule in order to 
provide prompt implementation, which will allow facilities to minimize 
any potential hazards to worker safety and health that may occur in the 
absence of this rule.
    This regulation is being promulgated in response to a petition 
submitted by a trade association for the leather tanning industry, the 
Leather Industries of America. The petition requests the Agency to 
consider relaxing the upper pH limit for certain indirect dischargers. 
The Agency is making a minor amendment to these regulations, provided 
that such an amendment would not adversely affect POTW operations or 
receiving water quality. This minor amendment would not affect the 
other rulemakings described in today's notice. EPA is not planning 
other revisions to the Leather Tanning regulations.
2. Ore Mining and Dressing
    EPA is proposing to exempt a waste stream from existing effluent 
guidelines for the Copper, Lead, Zinc, Gold, Silver and Molybdenum Ores 
Subcategory of the Ore Mining and Dressing Category (40 CFR part 440, 
Subpart J). The Agency published a proposed rule on February 12, 1996 
(61 FR 5364).
    Dewatered tailings generated by the Alaska-Juneau (A-J) gold mine 
project near Juneau, Alaska would be affected by this proposal. The use 
of impoundments or ``tailings ponds'' was an important component of the 
technology basis of the existing regulations, which were promulgated in 
1982. EPA is proposing this exemption based on the results of a 
preliminary review of the technology basis for the existing regulations 
that appear to show that, because of the severe topographic and 
climatic conditions that exist at the A-J site, the use of a tailings 
impoundment is impractical. If constructed, an extraordinary amount of 
wet weather runoff would flow into the impoundment which would make it 
impracticable to treat the mill tailings. In addition, construction of 
a massive tailings impoundment may result in long-term environmental 
degradation and there are safety concerns with a pond of this size.
    This proposal opens the way for the detailed evaluation of 
alternatives for treatment of the tailings. The discharge of tailings 
from the A-J project to marine waters, which otherwise would be 
prohibited by Subpart J, could appropriately be evaluated. The proposal 
does not in itself authorize or endorse any method of tailings 
treatment or disposal. The discharge of tailings to marine waters would 
require final revision of Subpart J under the proposal. EPA will 
evaluate all comments and information received prior to making a final 
determination, which the Agency currently expects to do by the end of 
1996.
3. Marine Discharges from Vessels of the Armed Forces
    Section 325 of the National Defense Authorization Act for Fiscal 
Year 1996 (Pub. L. 104-106, February 10, 1996) amended the Clean Water 
Act by adding sec. 312(n), which requires EPA and the Department of 
Defense (DOD) to:
     Determine discharges from vessels of the armed forces 
requiring control
     Promulgate performance standards for marine pollution 
control
     Promulgate regulations governing design, construction, 
installation and use of marine pollution controls.
    EPA is currently developing a plan with DOD to comply with sec. 
312(n).

[[Page 35052]]

The amendment requires the discharge determination within two years of 
enactment, promulgation of performance standards within two years of 
discharge determination, and promulgation of other regulations within 
one year after promulgation of standards.

VI. Recommendations of the Effluent Guidelines Task Force

    The Effluent Guidelines Task Force was established by EPA to 
recommend improvements to the effluent guidelines program. The Task 
Force consists of members appointed by the Agency from industry, 
citizen groups, state and local government, the academic and scientific 
communities, and EPA's Office of Research and Development. The Task 
Force was created to offer advice to the EPA Administrator on the long-
term strategy for the effluent guidelines program, and particularly to 
provide recommendations on a process for expediting the promulgation of 
effluent guidelines. It is chartered as a subcommittee of the National 
Advisory Council for Environmental Policy and Technology (NACEPT), the 
external policy advisory board to the Administrator, pursuant to the 
Federal Advisory Committee Act (FACA).
    The Task Force has developed recommendations on three topics 
pertinent to EPA's effluent guidelines planning process: data sources, 
criteria for selecting industries for preliminary studies, and the 
design of studies.

A. Data Sources

    The Task Force generally agreed with EPA on the sources of data 
that are appropriate for comparing categories. It encouraged EPA to 
consider information supplied by POTWs, AMSA, States, and trade 
associations. Reviews of technical literature and the Toxic Release 
Inventory (for basic identification of industry sources and locations) 
were also recommended.

B. Criteria for Selecting Industries for Preliminary Studies

    The Task Force supported EPA's use of total toxic pounds-equivalent 
discharged as one of the principal selection criteria. Other criteria 
that EPA has used in previous Effluent Guidelines Plans were supported 
with varying degrees of emphasis, and several new factors were 
recommended. The recommendations included using number of facilities 
and flow (including establishing a cutoff below which alternatives to 
establishing effluent guidelines will be developed); giving priority to 
industries not covered by existing guidelines; giving priority to 
industries targeted for regulations by other EPA programs (e.g. air, 
solid waste); giving priority to service industries; and priority to 
industries which are at or near the beginning of their investment 
cycles.

C. Design of Preliminary Studies

    The Task Force recommended that in cases where an industry and its 
issues are documented, EPA should proceed directly to rulemaking rather 
than conducting an intermediate preliminary study. This should only be 
done where there is a preponderance of already assimilated information 
indicating full rulemaking is appropriate, or in cases where 
stakeholders have clearly indicated that effluent guidelines are 
needed. Where there is uncertainty about the extent of industrial 
discharges and comparability to other categories, a study should be 
conducted.

VII. Request for Comments

    EPA invites public comment on its plans for development of effluent 
guidelines and preliminary studies. Comments will be accepted until 
August 2, 1996. In particular, the Agency is interested in data that 
would facilitate category-wide comparisons of industries with regard to 
discharge characteristics, treatment practices and effects on water 
quality. In addition to the industries discussed or listed in today's 
notice, EPA will consider information on other industries in developing 
Effluent Guidelines Plans.

VIII. Economic Impact Assessment; Executive Order 12866

    Today's notice proposes a plan for the review and revision of 
existing effluent guidelines and for the selection of priority 
industries for new regulations. This notice is not a ``rule'' and does 
not establish any requirements; therefore, no economic impact 
assessment has been prepared. EPA will provide economic impact analyses 
or regulatory impact analyses, as appropriate, for all of the future 
effluent guideline rulemakings developed by the Agency.
    Under Executive Order 12866 (58 FR 51735, October 4, 1993), the 
Agency must determine whether the regulatory action is ``significant'' 
and therefore subject to Office of Management and Budget (OMB) review 
and the requirements of the Executive Order. The Order defines 
``significant regulatory action'' as one that is likely to result in a 
rule that may:
    (1) Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities;
    (2) Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    It has been determined that this plan is not a ``significant 
regulatory action'' under the terms of Executive Order 12866 and is 
therefore not subject to OMB review.

    Dated: June 27, 1996.
Carol M. Browner,
Administrator.

                                   Appendix A--Promulgated Effluent Guidelines                                  
[``Promulgation'' refers to the date of promulgation of BAT controls unless otherwise noted. Minor amendments or
                                           corrections are not shown.]                                          
----------------------------------------------------------------------------------------------------------------
                                                                                  Revised Rule (P: Proposal F:  
             Category                 40 CFR Part          Promulgation              Final Action) or Study     
                                                                                         Completion (S)         
----------------------------------------------------------------------------------------------------------------
Aluminum Forming..................             467  10/83                                                       
Asbestos Manufacturing............             427  2/74                                                        
Battery Manufacturing.............             461  3/84                                                        
Builder's Paper and Board Mills                431  12/86 (BCT)                                                 
 \1\.                                                                                                           
Carbon Black Manufacturing........             458  1/78                                                        
Cement Manufacturing..............             411  8/79 (BCT)                                                  

[[Page 35053]]

                                                                                                                
Coal Mining.......................             434  10/82                                                       
Coil Coating......................             465  12/82                                                       
    Canmaking Subcategory.........  ..............  11/83                                                       
Copper Forming....................             468  8/83                                                        
Dairy Products Processing.........             405  6/86 (BCT)                                                  
Electroplating....................             413  1/81 (PSES)                                                 
Electrical and Electronic                      469  4/83                                                        
 Components.                                                                                                    
Explosives Manufacturing..........             457  3/76                                                        
Feedlots..........................             412  2/74                                                        
Ferroalloy Manufacturing..........             424  7/86 (BCT)                                                  
Fertilizer Manufacturing..........             418  8/79 (BCT)                                                  
Fruits and Vegetables Processing..             407  7/86 (BCT)                                                  
Glass Manufacturing...............             426  7/86 (BCT)                                                  
Grain Mills.......................             406  7/86 (BCT)                                                  
Gum and Wood Chemicals............             454  5/76 (BPT)                                                  
Hospitals.........................             460  5/76 (BPT)                  S 1989                          
Ink Formulating...................             447  7/75                                                        
Inorganic Chemicals...............             415  6/82                        S 1994                          
Iron and Steel Manufacturing......             420  5/82                        S 1995                          
Leather Tanning and Finishing.....             425  11/82                                                       
Meat Products.....................             432  7/76 (BCT)                                                  
Metal Finishing...................             433  7/83                        S 1994                          
Metal Molding and Casting                      464  10/85                                                       
 (Foundries).                                                                                                   
Mineral Mining and Processing.....             436  7/77 (BPT)                                                  
Nonferrous Metals Forming.........             471  8/85                                                        
Nonferrous Metals Manufacturing...             421  6/84                                                        
Oil and Gas Extraction............             435                                                              
    Offshore Subcategory..........  ..............  3/4/93                                                      
    Coastal Subcategory...........  ..............  11/79 (BPT)                 P 2/17/95; F 10/96              
    Other Subcategories...........  ..............  11/79 (BPT)                                                 
Ore Mining and Dressing...........             440  12/82                                                       
    Gold Placer Mining Subcategory  ..............  5/88                                                        
Organic Chemicals, Plastics and                414  11/87                                                       
 Synthetic Fibers.                                                                                              
Paint Formulating.................             446  7/75                        S 1989                          
Paving and Roofing Materials......             443  7/75                                                        
Pesticide Chemicals...............             455                                                              
    Manufacturing.................  ..............  9/28/93                                                     
    Formulating, Packaging,         ..............  4/78 (BPT)                  P 4/14/94; F 9/96               
     Repackaging.                                                                                               
Petroleum Refining................             419  10/82                       S 1993                          
Pharmaceutical Manufacturing......             439  10/83                       P 5/2/95; F 11/97 \2\           
Phosphate Manufacturing...........             422  6/76                                                        
Photographic Processing...........             459  7/76 (BPT)                  S 1996                          
Plastics Molding and Forming......             463  12/84                                                       
Porcelain Enameling...............             466  11/82                                                       
Pulp, Paper and Paperboard........             430  12/86 (BCT)                 P 12/17/93; F \1\               
Rubber Manufacturing..............             428  2/74                                                        
Seafood Processing................             408  7/86 (BCT)                                                  
Soap and Detergent Manufacturing..             417  4/74                                                        
Steam Electric Power Generating...             423  11/82                       S 1995                          
Sugar Processing..................             409  7/86 (BCT)                                                  
Textile Mills.....................             410  9/82                        S 1994                          
Timber Products Processing........             429  1/81                                                        
----------------------------------------------------------------------------------------------------------------
Notes:                                                                                                          
\1\ EPA proposed merging part 431 with part 430 in the proposed Pulp, Paper and Paperboard rule on 12/17/93. The
  Pulp, Paper and Paperboard rulemaking is not covered by the January 31, 1992 consent decree.                  
\2\ EPA is discussing extensions to Consent Decree dates with NRDC.                                             



           Appendix B--Current and Future Rulemaking Projects           
------------------------------------------------------------------------
             Category                       Proposed            Final   
------------------------------------------------------------------------
Pulp, Paper and Paperboard........  12/17/93                       (\1\)
                                    (58 FR 66078)                       
Pesticide Formulating, Packaging    4/14/94                         9/96
 and Repackaging.                                                       
                                    (59 FR 17850)                       
Centralized Waste Treatment.......  1/27/95                     \2\ 9/96
                                    (60 FR 5464)                        

[[Page 35054]]

                                                                        
Coastal Oil and Gas Extraction....  2/17/95                        10/96
                                    (60 FR 9428)                        
Pharmaceutical Manufacturing......  5/2/95                      \2\ 8/96
                                    (60 FR 21592)                       
Metal Products and Machinery,       5/30/95                   \2\,\3\ 9/
 Phase 1.                                                             96
                                    (60 FR 28209)                       
Industrial Laundries..............  \2\ 12/96                  \2\ 12/98
Transportation Equipment Cleaning.  \2\ 12/96                  \2\ 12/98
Landfills and Incinerators........  \2\ 5/97                    \2\ 5/99
Metal Products and Machinery,       \2\ 12/97                \2\,\3\ 12/
 Phase 2.                                                             99
Iron and Steel Manufacturing......  \2\ 12/98                  \2\ 12/00
1 category........................  \2\ 12/98                  \2\ 12/00
2 categories......................  \2\ 12/99                  \2\ 12/01
2 categories......................  \2\ 12/00                  \2\ 12/02
2 categories......................  \2\ 8/01                   \2\ 12/03
------------------------------------------------------------------------
Notes:                                                                  
\1\ The Pulp, Paper and Paperboard rulemaking is not covered by the     
  January 31, 1992 consent decree.                                      
\2\ EPA is discussing extensions to Consent Decree dates with NRDC.     
\3\ EPA is considering merging Phases 1 and 2 of the Metal Products and 
  Machinery rule.                                                       
See discussion above.                                                   



                     Appendix C--Preliminary Studies                    
------------------------------------------------------------------------
                          Category                             Complete 
------------------------------------------------------------------------
Petroleum Refining.........................................         1993
Metal Finishing............................................         1993
Textile Mills..............................................         1994
Inorganic Chemicals........................................         1994
Steam Electric Power Generating............................         1995
Iron and Steel Manufacturing...............................         1995
Photographic Processing....................................         1996
Chemical Formulators and Packagers.........................         1996
Three studies..............................................         1997
(see discussion in Section IV.C.3)                                      
------------------------------------------------------------------------

[FR Doc. 96-17030 Filed 7-2-96; 8:45 am]
BILLING CODE 6560-50-P