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To:	Members & Affiliates
From:	National Office
Date:	June 2000

The National Office is pleased to provide you with the June 2000 Regulatory Update. This Update provides an overview of relevant regulatory issues current to June 22, 2000. A narrative summary of activities or actions that have occurred during the past month is provided in this cover, while attached is a Regulatory Digest summary of all regulatory activities that are currently being tracked by AMSA.

EPA Transmits Draft Final TMDL Rule to OMB
On June 20, 2000, the Environmental Protection Agency (EPA) formally transmitted the proposed final TMDL rules to the Office of Management and Budget (OMB) for final interagency review. OMB has agreed to finish its review in 60 days; however, because OMB has been in discussions with EPA since the comment period closed, the agency may not take the full 60 days and the rule may be released sometime in July. The draft final rule contains significant changes to the proposal published in the Federal Register on August 23, 1999. It reflects the agency's earlier changes that were made public in April and May in letters to the House and Senate, in the Joint Agreement between EPA and the U.S. Department of Agriculture, and in EPA's recent withdrawal of provisions to regulate certain discharges from forestry operations. Changes to the TMDL proposal include:

• require that a TMDL include an implementation plan that defines specific steps to be taken to restore polluted waters on a specific schedule;
• require that implementation plans provide a demonstration, or “reasonable assurance,” that measures to reduce pollution from nonpoint sources will be implemented;
• States must develop TMDLs as expeditiously as practicable, at an even pace, but not later than 10 years after the first listing of a polluted waterbody (starting with 1998 lists), unless EPA grants an up to 5 year extension of schedules where establishment of TMDLs within 10 years is not practicable in a specific State;
• require that where both point and nonpoint sources are controlled, a schedule provides that nonpoint controls be installed within the term of the point source permit implementing the wasteload allocations;
• require that where only nonpoint sources are controlled, a schedule provide for implementing controls within 5 years when practicable; and,
• EPA must develop TMDLs where a TMDL submitted to EPA is disapproved.

While EPA expects to publish the final rule this summer, the agency's ability to enforce the new rules are being challenged in the House of Representatives. Language attached to the appropriations bill that will fund EPA in fiscal year 2001 prohibits the agency from spending money to finalize or implement the rules (see AMSA's June 2000 Legislative Update).

EPA Developing Guidance on Water Quality Assessment and Listing
On June 2, EPA invited stakeholders to participate in the first public meeting on development of a guidance to consolidate water quality assessment and listing requirements for states. The meeting is scheduled to take place on June 27-28, and will include sessions for point sources, nonpoint sources, states, and non-government organizations.

Section 305(b) of the Clean Water Act requires states and other jurisdictions to submit biennial water quality reports to EPA . Under Section 303(d), states are required to identify waters that are not attaining water quality standards and develop Total Maximum Daily Loads (TMDLs) for these waters. EPA is working to develop a consolidated 305(b)/303(d) assessment and listing methodology (CALM) approach to streamline and improve these two reporting requirements. EPA has indicated that the CALM will be built on, the work of the long-standing 305(b) consistency workgroup; findings of the Intergovernmental Task Force on Monitoring Water Quality; and existing guidance on the elements of an adequate state watershed monitoring and assessment program. The CALM will be part of the overall TMDL guidance document, and will describe data which a state should cover in a consolidated Section 305(b)/303(d) assessment. Phased issuance of the CALM will include six major parts, three in the first release of the guidance. The CALM will include: 1) guidance on attainment/non-attainment of state water quality standards (covering listing/de-listing decisions), 2) comprehensive state monitoring coverage, 3) presentation of data, 4) elements of an increasingly comprehensive state monitoring program, 5) causes and sources of impairment, and 6) additional sections on discrete types of pollutants such as pathogens, nutrients, sedimentation, and fish advisories.

EPA Issues Nutrient Guidance for Lakes and Reservoirs
On May 23, EPA published a technical guidance manual to assist States, Tribes and others in establishing scientifically defensible ecoregional nutrient water quality criteria for lakes and reservoirs. EPA will also use this guidance to develop nutrient criteria for lakes and reservoirs for various ecoregions across the country with the aim of reducing and preventing eutrophication on a National scale. EPA is providing the public with the opportunity to provide scientific views on the guidance document. EPA has requested comments by July 24, 2000. A copy of the document is available at http://www.epa.gov/ost/standards/nutrient.cfml.

AMSA's Nutrients Workgroup continues to have significant concerns regarding both the general approaches identified in the documents and the potential impacts of nutrient criteria that are developed based on these approaches. The documents are being developed based on EPA's 1998 Nutrient Strategy which outlines the process and approach for the development of numeric criteria for nutrients and adoption of nutrient provisions of state water quality standards. States will effectively be required to adopt numerical nutrient criteria into their water quality standards by 2003.

On May 26, AMSA's Nutrients Workgroup transmitted a letter to EPA which proposed an alternative approach to address scientific uncertainties associated with EPA's approach to nutrient criteria development. The approach would accomplish EPA's goals whereby states would develop numeric criteria to protect against nutrient impairment, but would allow states to target its resources on the areas in most need of protection. The approach would also use the significant work that EPA has done to develop its criteria guidance documents by using the resulting criteria ranges as flag values for states to determine the priority for nutrient criteria development and the need for further assessment target uses. High priority for nutrient criteria development would be placed on those waterbodies that are impaired or are causing impairment downstream due to nutrient enrichment. AMSA is working with a contractor, Hydroqual, Inc., to develop additional comments on EPA's approach in the lakes and reservoirs document. EPA is also developing guidance documents for rivers and streams, estuarine and coastal waters, and wetlands.

AMSA Mercury Study Nears Completion
Preliminary findings from an AMSA study indicate that mercury levels in domestic wastewater may pose compliance problems for some POTWs. The study was undertaken to determine whether industrial pretreatment controls and pollution prevention by themselves would be adequate for POTWs to meet expected or existing mercury water quality standards. Despite the U.S. Environmental Protection Agency's (EPA) confidence that tighter industrial controls would be enough, AMSA has consistently shared its concerns that trace levels of mercury may present compliance problems at some POTWs. AMSA is now undertaking a series of studies to shed more light on mercury issues as they relate to POTWs.

Early last year, AMSA brought concerns to EPA that the promulgation of a new, more sensitive mercury test method would mean that some POTWs might find trace levels of mercury that could present compliance problems, especially given the revisions to the human health criteria for mercury and the widespread adoption of Great Lakes wildlife mercury criteria are expected to drive water quality standards for mercury to the one-part-per-trillion range.

AMSA's study found that the average mercury levels in wastewater from domestic sources is 138 parts per trillion. Even with POTWs' average mercury removal rate of 99 percent, domestic sources alone could still represent compliance issues. The study also looked at common household products that contain mercury and found that such products contribute only 5 percent of total domestic mercury. Much of the rest, about 80 percent, comes directly from human waste, according to the findings.

With POTWs representing only 1 percent of total mercury loadings to the environment and the high costs of additional end-of-pipe treatment, AMSA feels the study underscores the importance of a comprehensive, prioritized and coordinated approach to reduce mercury in the environment. AMSA's Mercury Workgroup will finalize the report, share the findings with EPA and continue with another study looking at the effectiveness of source control and pollution prevention for POTWs to reduce mercury. This latest mercury study is expect to begin in mid-summer (see related story below).

AMSA Issues RFP for Mercury Pollution Prevention Project
On May 26, AMSA released a request for proposals (RFP) to perform a study that will measure the effectiveness of using POTW source control and pollution prevention programs to achieve mercury reductions in POTW effluents and sludge and/or compliance with anticipated mercury water quality standards and permit limits. The project is being funded in part by a grant from the U.S. Environmental Protection Agency (EPA). Proposals are due on June 30, 2000. All AMSA affiliates and other interested parties were sent copies of the RFP, which is also on-line at:http://www.amsa-cleanwater.org/networking/networking.cfm The proposed project would provide detailed insight into several pilot community source reduction programs and would: 1) demonstrate and evaluate the environmental benefits that result from implementation of mercury source control programs; 2) make a projection on the feasibility, based on available data, of reducing POTW effluent levels to new regulatory compliance standards (<1 to 3 parts per trillion) through the implementation of mercury source control programs; 3) assist Federal, state, and local officials in determining appropriate cost effective mechanisms to control mercury discharges from POTWs.

Dioxin Reassessment May Impact Biosolids Disposal Practices
On June 12, EPA released two draft chapters of its reassessment of the health risks from dioxin for scientific and public review that may have significant impact on EPA's plans to finalize the proposed Part 503 Round II regulatory revisions to limit dioxin and dioxin-like compounds in biosolids that are land applied. While the report finds that dioxin levels in the environment have declined substantially over the past two decades, the draft finds that risks to people may be somewhat higher than previously believed, even though actual exposure seems to be declining among the general population.

EPA estimates that between 1987 and 1995 dioxin emissions decreased by about 80 percent in the United States, primarily due to reductions from municipal and medical waste incinerators, with further declines continuing. Dioxins can alter the fundamental growth and development of cells in a way that leads to a variety of impacts such as cancer and adverse effects upon reproduction and development in animals and potentially in people, according to the draft.

On March 23, AMSA submitted its concerns on the proposed 300 ppt TEQ/dry kg cap for dioxin in biosolids land application, recommending that the Agency adopt an 800 ppt TEQ based upon risk levels used in Round I of the rule, and correcting errors in EPA's risk analysis. EPA had hoped that the Round II rule could be finalized by the end of 2000, however, the dioxin reassessment will delay the final rule until the end of 2001. Some potential implications of the dioxin reassessment, when or if it is finalized, could include a very low (30 to 40 ppt TEQ) dioxin threshold cap for biosolids land application, and/or additional restrictions on grazing or liquid application of biosolids to limit dioxin exposure.

EPA is inviting comments on two chapters of the reassessment: the summary (Integrated Summary and Risk Characterization) and a comparison of toxicity among different dioxins (Toxicity Equivalence Factors chapter). These chapters are available through the Internet at: http://www.epa.gov/ncea/dioxin.cfm. While no specific date was cited, EPA will accept comments until at least October. Following completion of scientific and public review, EPA will issue the final dioxin reassessment document and at the same time will publish a draft dioxin Risk Management Strategy for public comment. The strategy will propose EPA policy and programs for dioxin using the reassessment as its scientific basis.

EPA Releases Draft CSO Water Quality Standards Guidance
On May 9, EPA released a preliminary draft of its Guidance on Implementing the Water Quality-Based Provision in the CSO Control Policy for feedback prior to officially releasing a final draft version for public review in July 2000. The document is intended to guide States and EPA Regions on how to integrate combined sewer overflow (CSO) planning within the process for reviewing and revising water quality standards to address CSO receiving waters. Through this guidance, EPA hopes to “lay a strong foundation for integrating CSO long-term control planning with water quality standards reviews.” One of the hallmarks of the CSO Control Policy is the review and revision, as appropriate, of water quality standards and their implementation procedures when developing CSO Long Term Control Plans (LTCP) to reflect the site-specific wet weather impacts of CSOs. By EPA's own recognition, “in the six years since EPA issued the CSO Control Policy, implementation of this principle has not progressed as quickly as expected” (EPA Memorandum, May 8, 2000).

The crux of the document is the suggested step-wise process (see Section II) for integrating the development and implementation of a community's LTCP with the review, and potential revision, of water quality standards for CSO-receiving streams. The document establishes a flow chart to clarify each step involved in the process, as well as which entity (i.e., CSO community, NPDES authority, Water Quality Standards Authority, and/or EPA) is responsible for each step. The preliminary draft makes clear that CSO communities are expected to proceed with the LTCP process regardless of progress by the States and Regional offices, or lack thereof, in reviewing and revising water quality standards. The flow chart also indicates that the CSO community is solely responsible for leading all data collection and monitoring efforts sufficient to conduct a Use Attainability Analysis (UAA) to revise water quality standards. In addition, Section III provides a detailed explanation of the water quality standards program, available options to adjust specific water quality standards, process of reconciling remaining overflows with water quality standards. Lastly, Section IV addresses how CSO LTCPs fit within a watershed management framework. A copy of the preliminary draft guidance document was distributed to the membership via Regulatory Alert RA 00-12. Members interested in providing comments on the document should contact Greg Schaner at 202/296-9836.

EPA Finalizes NPDES Streamlining Rule
On May 15, EPA published a final rule intended to streamline some aspects of the National Pollutant Discharge Elimination System (NPDES) program regulation. The final rule differs only slightly from EPA's original proposal, as published December 11, 1996. The final rule includes changes to 40 CFR Parts 122, 123 and 124 to: 1) allow general permits to cover multiple categories of discharges, thus, increasing the ability of general permits to apply to sources on a geographic basis, 2) allow permit writers not to require monitoring for all effluent guideline listed pollutants under certain circumstances; 3) remove stormwater group application requirements; 4) streamline permit terminations procedures; and, 5) eliminate procedures for conducting formal evidentiary hearings on NDPES permit conditions.

One significant change from the proposal was a narrowing of the proposed elimination of permit limits and monitoring for certain guideline-listed pollutants where a discharger could certify that those pollutants would not be in the discharge. In response to comments, EPA modified the final rule to retain the existing requirement that permits have limits for all applicable guideline-listed pollutants, but allows a waiver of sampling requirements if the discharger can certify the pollutant is not present in the discharge.

The rule becomes effective June 14, 2000.

AMSA/NRDC Meet to Discuss Pretreatment Streamlining Rule
On May 10, members and leadership of AMSA's Pretreatment & Hazardous Waste Committee met with the Natural Resources Defense Council to discuss elements of EPA's July 22, 1999 Pretreatment Streamlining Proposal. This meeting was the first step in an effort to address NRDC's concerns over proposed revisions. Issues discussed included: proposed exceptions to the pH standard of 5.0, removal credits, conversion of categorical concentration limits to mass limits to encourage water conservation, slug control plan requirements, and the lack of national data on the program's status and effectiveness. EPA has delayed finalization of the pretreatment proposal until 2001 due to staffing and budget concerns. In the months leading up to the finalization of the pretreatment streamlining proposal, AMSA and NRDC agreed to continue a dialogue and attempt to reach agreement on some of the critical streamlining issues.

EPA Publishes Draft Effluent Guidelines Plan
On June 16, EPA released its proposed biennial effluent guidelines plan for 2000-2002. In the plan, EPA highlights current effluent guidelines under development, the process for selection of new effluent guideline regulations, and preliminary and ongoing studies. In the proposed plan, EPA noted two new rulemaking activities that began in 1999. The two new industrial categories, meat products and aquaculture, were selected based upon increasing concerns from Regions and States regarding nutrient impacts on the nation's waters. In the June 16 proposal, EPA also indicated its plans to work with stakeholders to explore and potentially codify its selection process for new or revised guidelines into a federal regulation. EPA has requested comments on the proposed plan, and planning strategy by July 17, 2000. The following table presents a summary of effluent guidelines under development.

Category	Federal Register Cite/Proposal Date	Final Action
Transportation Equipment Cleaning Centralized Waste Treatment Oil & Gas Extraction - Synthetic Drilling Fluids Coal Mining- Remining & Western Subcategories Iron and Steel Manufacturing Metal Products and Machinery Construction and Development Feedlots - Swine, Poultry, Beef, & Dairy Subcategories Pulp, Paper, & PaperBoard, Phases 2& 3 Meat Products Aquaculture	63 FR 34685 (June 25, 1998) 60 FR 5464 (January 27, 1995) 64 FR 2279 (January 13, 1999) 64 FR 5487 (February 3, 1999) 65 FR 19439 (April 11, 2000) 10/00 60 FR 28209 (May 30, 1995) - Phase I only; 10/00 I &II 12/00 12/15/00 58 FR 66078 (December 1993) 12/01 6/30/02	6/15/00 8/31/00 12.00 12/01 4/02 12/02 12/02 12/15/02 2000-2002 12/03 6/30/04

EPA Revokes Acute Selenium Criterion in Great Lakes
On June 2, EPA published a notice of Revocation of the Selenium Criterion Maximum Concentration for the Final Water Quality Guidance for the Great Lakes System. In March 1995, EPA promulgated acute and chronic aquatic life criteria for selenium as part of the Final Water Quality Guidance for the Great Lakes System. The acute criterion was successfully challenged by industry in 1995-96, which resulted in the courts vacating the criterion. Although EPA proposed a new criterion in November 1996, it has not yet promulgated a final criterion. To avoid potential confusion about the status of the vacated acute criterion, EPA has decided to remove it from the final Great Lakes Guidance in 40 CFR part 132. EPA plans to propose a new replacement acute criterion once an interagency workgroup and peer review process is complete. In the interim, EPA is recommending that States and Tribes rely on the chronic aquatic life criterion for selenium in setting permit limits.

Liquid Assets 2000: America's Water Resources at a Turning Point
On June 1, EPA released a new report showing how the economy depends on clean water. At the same time the report warns that to provide the powerful boost clean water gives the economy, the U.S. faces significant challenges cleaning up the nation's remaining polluted waterways. Liquid Assets 2000: America's Water Resources at a Turning Point provides a snapshot of the problems and recommended actions that must be taken to protect and restore the Nation's water resources. The report also explains the role of a strengthened TMDL program to help clean up the Nation's waters. For a copy of the report, visit http://www.epa.gov/ow/liquidassets/.

EPA Publishes Atlas of America's Polluted Waters
EPA has published a new report called Atlas of America's Polluted Waters, EPA 840-B-00-002, which include maps showing waters within each state that do not meet state water quality standards. States listed these waters in their most recent submission to EPA, generally, in 1998, as required by section 303(d) of the Clean Water Act. Over 20,000 waterbodies across the country are identified as not meeting water quality standards. These waterbodies include more than 300,000 miles of rivers and streams and more than 5 million lake acres. EPA notes that an overwhelming majority of Americans -- 218 million -- live within 10 miles of a polluted waterbody. To view the atlas, visit http://www.epa.gov/owow/tmdl/atlas/.

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AMSA Meetings Schedule

Regulatory Digest

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