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Regulatory Update
September 1997

Since the AMSA Board of Directors Meeting at the July 1997 Summer Conference, AMSA’s regulatory initiatives have focused on tracking developments within the Environmental Protection Agency, technical programs for the membership, and providing comments to notice in the Federal Register and other EPA guidance/policy. The following information will bring you up-to-date on the status of various regulatory and technical issues affecting the AMSA membership.

Air Quality Issues

AMSA/EPA TO MEET ON PROPOSED PLANS TO COVER INCINERATORS UNDER SECTION 129

AMSA met with EPA representatives on July 9, 1997 to discuss AMSA’s opposition to EPA’s January 14, 1997 proposal to regulate sewage sludge incinerators (SSIs) under Clean Air Act Section 129 and to establish a mechanism to coordinate efforts over the next several months as EPA evaluates options to regulate HAP emissions from SSIs. In a follow-up letter to EPA’s Assistant Administrator for Air and Radiation, AMSA discussed the consent agreement, related to Gearhart v. Reilly, and encouraged EPA to consider a mechanism under Round II of Section 405 regulations as a more appropriate location for promulgation of new SSI regulations. Another meeting between AMSA and EPA’s Office of Air to discuss technical issues has been scheduled for September 16, 1997 in Research Triangle Park, NC. The date for final promulgation remains at November 15, 2000.

PRELIMINARY ICCR SURVEY RESULTS PRESENTED AT AMSA’S SUMMER CONFERENCE

Preliminary results of a membership survey to collect both data inventory and emission data for combustion devices indicate that very few AMSA member agencies have conducted emissions testing for HAPs and criteria pollutants. The survey was conducted in response to EPA’s development of National Emission Standards for Hazardous Air Pollutants (NESHAPS) and New Source Performance Standards (NSPS) for certain combustion sources under the Industrial Combustion Coordinated Rulemaking (ICCR) process. AMSA’s Air Quality Committee is concerned that the combustion devices operating at POTWs will be considered with all similar combustion categories, ignoring the unique nature of the fuel that is burned at a treatment plant. If this happens, the combustion control devices applicable for burning of natural gas may get applied to the combustion of digester gas, which past experience at several POTWs has shown to be either technically infeasible or not cost-effective. The survey results will be used by the Air Quality Committee in negotiations with EPA on development of air emissions standards for combustion devices. The survey indicates that many agencies will most likely need to conduct such source testing in the future if required by EPA. AMSA plans to submit complete results of the survey to EPA in Fall 1997.

AMSA/EPA TO DEVELOP MODEL RMP FOR WASTEWATER UTILITIES

In response to EPA’s June 20, 1996 final regulations which address requirements under Clean Air Act Section 112(r)(7), and require the owner or operator of stationary sources at which a regulated substance is present to prepare and implement a risk management plan (RMP), AMSA in cooperation with EPA has begun development of a model RMP for wastewater utilities. EPA’s Office of Chemical Emergency Preparedness & Prevention has provided funding assistance through existing work assignments with its two contractors who will coordinate development of the model RMP with AMSA and a steering committee comprised of member agencies. AMSA’s Board of Directors also provided funding support of up to $10,000 to facilitate AMSA participation in the project. A first draft of the RMP is expected in mid-December, followed by a second draft in February 1998. Following completion of the second draft, the guidance document will be pilot tested at several member agencies across the country and undergo a peer review process by various wastewater agencies. The project and model RMP for POTWs are scheduled for completion in Summer 1998.

Biosolids Management Issues

NRC DEVELOPING POTW RADIOACTIVITY GUIDANCE/SURVEY

The Nuclear Regulatory Commission (NRC) published in the January 6, 1997 Federal Register, a notice announcing its intent to conduct a joint NRC/EPA survey of sewage sludge (biosolids) and ash. The survey will obtain national estimates of the levels of radioactive materials in sludge and ash at POTWs, estimate the extent to which radioactive contamination comes from either NRC/Agreement State licensees or from naturally occurring radioactivity, and support possible rulemaking decisions by NRC and EPA. NRC and EPA have identified 300 candidate POTWs from which samples of sewage sludge/ash will be taken and analyzed for the survey which is scheduled by the end of 1997.

AMSA, WEF, EPA and NRC met in Philadelphia on August 4, 1997, to review issues pertaining to the guidance document and survey. AMSA proposed that its members assist NRC with writing sections of the guidance, EPA develop risk criteria for radionucleides before the survey is conducted, survey design be patterned as a random versus targeted effort and that NRC form a steering committee, to include AMSA, to review the survey results. AMSA and WEF plan on submitting a joint letter and comments on the review guidance to NRC in September, regarding the conduct of the survey and the need to establish a peer review group to oversee and monitor the results. NRC and EPA plan to meet on September 16 to review the document and survey. The Radioactivity Workgroup will meet again during WEFTEC on October 20, 1997.

AMSA/WEF/EPA NATIONAL BIOSOLIDS PARTNERSHIP HOLDS PLANNING MEETING

In 1995, the Agency proposed transferring most of its biosolids management role to states and other stakeholders. In response to the proposal, biosolids stakeholders, including AMSA, developed a "vision" in September 1995 for the national biosolids management program and transmitted the report to EPA. Copies of the revised stakeholder report were forwarded jointly by AMSA and WEF in July to EPA and to the membership via Regulatory Alert RA 97-21 in August 1997.

EPA announced in early August that due to recent negative media reporting on biosolids it will reactivate funding and staff resources to the biosolids management program and has invited AMSA and WEF to form a partnership to identify and coordinate activities related to promoting the public acceptance of biosolids. A planning meeting was held on August 28, 1997 to discuss the goals of a AMSA/WEF/EPA National Biosolids Partnership. EPA has identified the following priority areas that it would like to pursue and fund over the next fiscal year, including: (1) preparation of a code of good management practices for biosolids with third-party verification; (2) conducting a biosolids quality survey to compare data from 1988-1989 with post-Part 503 quality; (3) formation of SWAT teams comprised of biosolids experts to assist in the investigation and preparation of quick responses of significant alleged problems; (4) renewed EPA oversight by the Office of Enforcement & Compliance Assurance to develop enforcement priorities and provide compliance assistant; and, (5) work as partners in a biosolids group to provide technical assistance and research into emerging national issues such as radioactivity, dioxin, pathogens, and animal manures. The proposed partnership would be comprised of a three member National Biosolids Management Committee made up of representatives from AMSA, WEF and EPA, which will be established to plan and implement Partnership activities and a Biosolids Advisory Group, which will represent a majority of biosolids stakeholders and will be convened to advise the Partnership. The results of the August 28 meeting will be presented for consideration at the September Board of Directors meeting. A meeting of the proposed Management Committee is planned during WEFTEC in Chicago in October.

Comprehensive Watershed Management Issues

EPA DELAYS RELEASE INDEX OF WATERSHED INDICATORS UNTIL SEPTEMBER

EPA has delayed release of its long-awaited Index of Watershed Indicators (IWI) project until mid-September 1997. EPA’s Office of Water and its many public and private partners are using joint information to characterize the conditions of the 2,111 watersheds in the continental United States. EPA stresses that the project is a general guide to watershed conditions, designed to open the door to further dialogue and obtain more detailed information. Results of assessments will be posted on EPA’s Internet "Surf Your Watershed" Web site via maps and 2-page summary assessments for each watershed. Once publicly-released, AMSA will encourage members to validate information in the IWI for their watersheds and forward their concerns to the National Office. AMSA’s Watershed Workgroup, within the Regulatory Policy Committee, will compile concerns, and determine appropriate follow up. AMSA members will also be apprised on how additional information from their agencies can be linked to EPA’s Web site.

EPA ISSUES NEW TMDL POLICIES

On August 8, 1997, EPA issued a final policy statement on Total Maximum Daily Loads (TMDLs) which provides direction to EPA Regions and States regarding TMDL schedule development and implementation. Highlights of the policy include: (1) allowing states 8 to 13 years to develop TMDLs for impaired and threatened waters; and (2) directing states to develop implementation plans which ensure achievement of nonpoint source load allocations in waters impaired solely or primarily by nonpoint sources. The policy is intended to set forth a nationally consistent approach for establishing and implementing TMDLs, and to supplement existing regulations and guidance. AMSA distributed the new policies to the membership via Regulatory Alert RA 97-20.

EPA ISSUES FINAL SOURCE WATER ASSESSMENT AND PROTECTION PROGRAMS GUIDANCE

EPA issued a final "State Source Water Assessment and Protection Programs Guidance" on August 5, 1997. The final guidance allows states up to 3½ years from initial EPA approval of a state SWAP to complete source water assessments. EPA also indicates that it will be publishing a technical document to assist states in accomplishing efficient and effective susceptibility determinations. AMSA had commented on EPA’s draft guidance which outlines time frames, processes, public involvement requirements and the scope of what constitutes an approvable state source water protection program, and provides information on coordinating the program with other state and federal pollution control efforts. AMSA’s major concern with the draft was that states need more than two years to complete the assessments and that the guidance should recognize the significant need to include local governments and water purveyors in the development of a state’s assessment program, and especially , in the completion of the source water assessments. States now have 18 months to submit their Source Water Assessment Program to EPA.

Facilities Financing Issues

NDWAC DRINKING WATER STATE REVOLVING FUND WORKING GROUP

The first meeting of the National Drinking Water Advisory Council (NDWAC) Drinking Water State Revolving Fund (DWSRF) Working Group was held on July 16-17, 1997, in Washington, DC. AMSA is represented on the group by Alan Anders of the New York City Municipal Water Finance Authority. During its first meeting, the Working Group developed a workplan and arrived at consensus language on the following recommendations that it would make to NDWAC: (1) support and encourage EPA’s efforts to develop guidance which allows flexibility in the transfer of funds between the SRF’s of the Clean Water Act and the Safe Drinking Water Act; (2) urge EPA to pursue needed statutory changes to eliminate the transfer deadline in section 302 [42 USC 300j]; (3) urge EPA to pursue needed statutory changes to allow use of the CWA and SDWA SRF’s for cross-collateralization. The next Working Group meeting is scheduled for September 17, 1997.

AMSA COMPETITIVENESS HANDBOOK

AMSA’s Competitiveness Workgroup will be reviewing an initial draft of AMSA’s newest publication, "Thinking, Getting & Staying Competitive: A Public Sector Handbook," in mid-October. The Handbook is being produced jointly with the Association of Metropolitan Water Agencies (AMWA) and will serve as a companion piece to AMSA’s previously released, "Evaluating Privatization: An AMSA Checklist and Managed Competition: Developing and Responding to RFQs & RFPs." The handbook is being developed under the guidance of AMSA’s Competitiveness Workgroup (formerly the Privatization Workgroup) and will be released during AMSA’s 1998 Winter Conference, February 3-6, in San Antonio, TX. The Handbook will illustrate a "how to" approach to becoming competitive by highlighting proven strategies for becoming competitive and profiling several utilities that have developed these strategies. Following the release of the Handbook in February, AMSA and AMWA will sponsor eight "how to" workshops across the country based on the publication.

Pretreatment & Hazardous Waste Issues

AMSA/EPA EFFORTS TO STREAMLINE PRETREATMENT PROGRAM REQUIREMENTS

In early June 1997, AMSA was invited by EPA to review its external draft of proposed regulatory and administrative changes to streamline the national industrial pretreatment program. In May 1996, the Agency developed a series of informal issue papers for stakeholder review/comment on certain technical and administrative requirements under consideration in this initiative. Based on that input, and the results of the AMSA-WEF Pretreatment Streamlining Workshop held in August 1996, the Agency is seeking stakeholder input on its draft prior to a formal proposed rulemaking planned for December 1997.

Changes to thirteen specific issues were proposed including: specific prohibition regarding pH, equivalent mass limits for concentration limits, equivalent concentration limits for flow-based standards, POTW oversight of significant industrial users, slug control plans, sampling for pollutants not present, de minimus categorical industrial users, use of grab and composite samples, removal credits, electronic filing and storage of reports, general permits, best management practices, and modifications of significant noncompliance (SNC) criteria. While supportive of most of the proposed changes, AMSA has major concerns with EPA’s proposed modification of SNC criteria. Member comments were forwarded to EPA on July 11, 1997. Based upon the comments received, EPA will redraft the document as a formal notice of proposed rulemaking (NPRM). Based on discussions at a meeting of various stakeholders including POTWs, EPA Headquarters, Regions and states, AMSA has prepared draft regulatory language under 40 CFR 403 that addresses SNC issues. AMSA forwarded the draft regulatory language to EPA Headquarters, EPA regions, State pretreatment coordinators, AMSA Pretreatment & Hazardous Waste Committee, 1996 AMSA-WEF Pretreatment Streamlining Workshop attendees and the Clean Water Coalition for review in August 1997. AMSA has requested that EPA consider the language in the preamble to its pretreatment streamlining proposal. AMSA’s Pretreatment Committee leadership forwarded a letter to the Natural Resources Defense Council (NRDC) on August 13, requesting a meeting in September 1997, to discuss EPA’s proposed changes to the Pretreatment Program. AMSA’s National Office and Pretreatment Committee leadership is planning a meeting with NRDC and US Public Interest Research Group representatives in late September in Washington, DC, to discuss SNC and other streamlining issues. Proposed rulemaking is expected in the Federal Register in December 1997.

AMSA/SILVER COUNCIL INITIATE DEMONSTRATION PROJECT ON ALTERNATIVE PRETREATMENT CONTROL MECHANISMS

AMSA, the Silver Council and EPA have agreed to cooperatively fund a demonstration project using the photo processing industry as a model to evaluate the use of alternative compliance mechanisms in lieu of numerical effluent limitations, as a means of controlling wastewater discharges. The AMSA/Silver Council "Code of Management Practice (CMP) for Silver Dischargers" will be used as the model approach for controlling silver discharges. A total of seven communities will be studied: five cities implementing the CMP as a best management practice; one city using a general permit mechanism; and, one using a flow-adjusted concentration-based limit. Three cities which have already utilized the CMP will be interviewed for background. The total grant assistance requested from EPA is $150,000, to be augmented by in-kind services from AMSA and up to $150,000 furnished by the Silver Council. The 2 year project will be coordinated at a national level by AMSA, the Silver Council, and EPA using a steering team approach. EPA involvement in the steering team will be directed by the Office of Policy, Planning and Evaluation (OPPE), in cooperation with the Office of Water (OW), Office of Enforcement and Compliance Assurance (OECA), and appropriate EPA Regional offices.

A kick-off meeting with project participants was held on July 29, 1997 to discuss development of the work plan. A work plan is expected in September 1997. Invitation letters were sent to seven prototype cities on August 13, 1997, requesting their participation in the study. The agencies invited include: Hampton Roads Sanitation Districts, Virginia Beach, VA; Passaic Valley Sewerage Commissioners, Newark, NJ; Massachusetts Water Resources Authority, Boston, MA; City of Columbus, OH; City of San Diego, CA; City of Salisbury, MD; and, City of Victoria, TX. A conference call between AMSA, EPA, and the Silver Council has been scheduled for September 19, 1997 to discuss the workplan. Representatives from the pilot cities, and other project participants will meet on November 4, 1997 in Norfolk, VA, during the AMSA-EPA Pretreatment Coordinators’ Workshop to discuss logistics for the project.

AMSA-EPA PRETREATMENT COORDINATORS’ WORKSHOP SCHEDULED FOR NOVEMBER

Federal, state, and local pretreatment coordinators from around the country will meet and share their considerable expertise during the fourth AMSA-EPA Pretreatment Coordinators’ Workshop, November 5-7 at the Norfolk Waterside Marriott Hotel in Norfolk, Virginia. This marks the eighth year AMSA has sponsored this annual forum for pretreatment coordinators to discuss opportunities to enhance the current and future direction of the national pretreatment program. The workshop format is designed to maximize interaction among the attendees and to allow everyone to actively participate. Discussion topics for the November workshop include: EPA pretreatment program updates relating to effluent guidelines, oil & grease, and other Part 136 issues; pretreatment streamlining, and enforcement and compliance issues; pretreatment reinvention; local limits development including radionucleides; and, impact of privatization on pretreatment programs There will be regional breakouts and panel discussions on handling a variety of special wastes and innovative approaches to pretreatment/pollution prevention programs. The 1997 EPA National Pretreatment Program awardees will also make presentations. A preliminary agenda, registration materials, and a questionnaire designed to ensure that specific issues and questions are addressed during the workshop have been forwarded to AMSA members and EPA representatives via Member Update 97-19. The hotel reservation deadline is October 13; the workshop registration deadline is October 24.

AMSA EXTENDS SUPPORT FOR EPA DRAFT MUNICIPAL SETTLEMENT POLICY

AMSA submitted comments in mid-August expressing its strong support of the U.S. Environmental Protection Agency’s Draft Municipal Settlement Policy, which was noticed in the July 11, 1997 Federal Register, and urged the Agency to adopt it as a final policy as soon as possible. AMSA believes this policy will equitably and expeditiously resolve Superfund liability issues for local governments, school boards and small businesses that stem from their municipal solid waste(MSW)/municipal sewage sludge (MSS) activities. Once the policy is adopted, it should ease the litigation that has saddled cities and towns because they owned or operated municipal landfills or sent garbage or sewage sludge to landfills that were also used by generators and transporters of industrial hazardous wastes. AMSA came out in support of the 20% baseline settlement cap for local government owners/operators and the unit cost cap of $3.05/ton as the baseline settlement amount for generators/transporters of MSW/MSS. The Association also recommended that EPA consider lowering these amounts to further limit municipal liability. The proposed hardship provisions in the proposal and allowance for in-kind contributions, which considers the ability of the municipality to pay, were cited as positive steps in this direction. AMSA also urged that three aspects of the proposed policy be improved: (1) the policy should apply to local government owners and operators of MSW-only sites as well as co-disposal sites; (2) the policy should apply to local governments at sites where there are not other viable parties; and (3) the policy at co-disposal sites should include sewage sludge incinerator ash in addition to MSW and sewage sludge

Water Quality Issues

AMSA FORWARDS CONCERNS REGARDING WHOLE EFFLUENT TOXICITY

AMSA forwarded a letter to EPA on July 31, 1997, summarizing the highlights of a June 23-24 stakeholder meeting on WET issues, and urging EPA to eliminate enforceable WET tests as permit limits and to adopt an alternative approach discussed by municipal representatives. In the letter, addressed to Mike Cook, Director of EPA’s Office of Wastewater Management, AMSA summarizes the three key points which were discussed at the meeting regarding §122.44(d)(ii) determinations and also summarizes six types of data and information which were discussed for inclusion in §122.44(d)(ii) determinations. The alternative approach would shift the NPDES permit to a performance based permit where the permit would outline what is expected of the facility, i.e., detect, find and eliminate causes of in-stream toxicity. Fines and penalties would then be based on the POTW failure to perform and not WET test failures. The letter is intended to address one of several key issues regarding WET Implementation Strategy which AMSA discussed with EPA in May 1997. These issues included: (1) formation of a small working group of various stakeholders for developing a stepwise or tiered approach to WET permitting; (2) involvement of AMSA in the peer review of EPA’s work on WET data interpretation and statistics; (3) opening of EPA WET training to a wider audience including AMSA members; (4) invitation to AMSA members to submit manuscripts for a SETAC session in the fall in San Francisco on WET testing; (5) collaboration with AMSA on policy decisions relating to the determination of "reasonable potential" for WET limits, and; (6) the issue of WET limits for CSOs and stormwater discharges.

WATER QUALITY STANDARDS REGULATION ANPRM

In response to a letter from Assistant Administrator, Bob Periciasepe indicating his decision proceed with a narrower ANPRM, AMSA recently forwarded a letter to EPA which highlights the Associations priority issues on the ANPRM. Included among the priority issues are: refinement of designated uses, compliance schedule flexibility, independent applicability, and wet weather criteria. AMSA encourages EPA to "work in a phased approach that comprehensively addresses all issues originally set forth in the draft ANPRM either through the ANPRM process, or through other activities." Federal Register publication of the ANPRM is expected sometime in late 1997. Early indications from EPA suggest that designated uses, criteria, and anti-degradation will be discussed within the ANPRM, but that modifications to variance procedures will not be included.

FRESHWATER AMMONIA CRITERIA REVISIONS

EPA’s Office of Science and Technology is in the process of updating its freshwater ammonia criteria to account for newer data, better approaches, and to address temperature and pH-dependence of ammonia toxicity. The updated procedures are reflected in a draft addendum to EPA’s "Ambient Water Quality Criteria for Ammonia - 1984." The draft document is currently under review by an external scientific peer review group, however, EPA is willing to accept comments from other members of the public. EPA is not planning to publish the draft addendum in the Federal Register for public review, which has raised concerns within AMSA’s Water Quality Committee leadership. EPA has indicated its wish to streamline the criteria development/modification process, and is experimenting with use of peer review groups and other forms of public input such as the Internet. EPA hopes to address comments and publish a final ammonia criteria document sometime in October 1997.

Wet Weather Issues

SANITARY SEWER OVERFLOW (SSO) POLICY DIALOGUE

AMSA and other municipal interests of the EPA SSO Advisory Committee recently transmitted a letter which expressed strong sentiments for a national SSO policy which includes relief from liability for those SSOs which have been defined as "unavoidable." One of the major sticking points in headquarters and regional staff discussions, is the issue of boilerplate "affirmative defense" permit language which is intended to give permittees liability relief for those SSO events which are beyond the reasonable control of the operator. Regional EPA enforcement officials strongly believe that a national policy should not compromise EPA’s latitude to enforce against any and all SSOs, and believe that "regulatory reasonableness" can be attained through enforcement discretion and through nonregulatory, nonbinding guidance that defines the boundaries of the SSO program. Results of the internal EPA discussions, and whether EPA will address operator concerns regarding affirmative defense will soon be known, as EPA plans to release its "blueprint" for the national policy to the Regions and states. The "blueprint" will include an outline for an interim permitting approach on SSOs and proposed regulatory changes. Subsequently, a more detailed policy language will be issued to Regions, states, and stakeholder groups for review prior to the next meeting of EPA’s Federal Advisory Committee, which is now expected to be held sometime in late 1997.

Also, on August 14, AMSA and the National League of Cities (NLC) jointly submitted concerns regarding EPA’s draft cost analysis for the proposed national SSO Policy. In a detailed technical analysis, AMSA and NLC felt that the draft cost analysis significantly underestimates the incremental costs resulting from the implementation of a National SSO Policy as presented, mostly due to an inappropriate selection of current baseline and compliance end-point controls. Baselines of a two-year storm and five-year storm rainfall event scenarios were used to take into account compliance levels and outcomes by NPDES authorities in absence of a National policy. A ten-year storm was selected as the result of an aggressive national SSO abatement policy. AMSA argues that many communities experience SSO rates that are up to 50 or more times greater than baseline, and that it would be more appropriate for EPA to select current conditions as baseline, and select target performance levels of two- or five-year storms when developing the cost model. However, AMSA also points out that if alternatives, such as the watershed approach, were seriously implemented and allowed in a national SSO policy, costs of a national SSO abatement could be significantly lower, when compared to strict performance targets.

EPA’S URBAN WET WEATHER FLOWS ADVISORY COMMITTEE ACTIVITIES

The UWWF advisory committee held its latest and potentially last plenary meeting on July 28-29, 1997. The Committee is expected to continue its work through small workgroups. The Committee is continuing development of its, "A Watershed Alternative for the Management of Wet Weather Flows (and FlowChart), " which expresses EPA’s support for a process of pursuing a watershed approach as an alternative to the traditional NPDES permitting approach for meeting water quality standards. A small workgroup, which includes AMSA, of the Committee is scheduled to meet on September 17 to resolve final issues.

EPA’S STORMWATER PHASE II ADVISORY SUBCOMMITTEE DISCUSSIONS

EPA’s proposed Phase II stormwater rule is currently under review by the White House’s Office of Management and Budget (OMB). EPA was granted an 3-month extension to publish the proposed Stormwater Phase II rule which is now scheduled for publication by November 25, 1997. EPA will continue to convene its Stormwater Phase II Advisory Subcommittee after the rule is proposed to discuss comments on the proposed rule and implementation issues.

AMSA CSO PERMIT NEGOTIATION WORKSHOP

As of September 10, over 70 persons have registered for AMSA’s CSO Permit Negotiation Workshop, to be held Sept. 25-26, 1997, in Cincinnati, Ohio. The workshop is intended to allow AMSA members to share information and experiences regarding the CSO permitting process.


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