Great Lakes Binational Toxics Strategy

Stakeholder Forum - 1998

IMPLEMENTING THE BINATIONAL TOXICS STRATEGY
Polychlorinated Biphenyls (PCBs) Workgroup

Background Information on PCB Sources and Regulations

I. Introduction

Polychlorinated biphenyls (PCBs), although banned or tightly restricted in almost all industrial and commercial uses because of their persistence and high toxicity, remain a major cause of contamination in the waters of the Great Lakes. All five of the Great Lakes -- as well as numerous inland lakes -- have fish consumption advisories as a result of PCB contamination.

PCBs refer to a class of chlorinated, chemical compounds that includes numerous different substances favored for their low conductivity, high boiling point, chemical stability, and flame retardant properties. Throughout the 20th century, PCBs were used for many diverse purposes ranging from dielectric fluids to pesticides. As evidence of their toxicity took shape, their uses were curtailed sharply. In a span of less than 20 years, PCBs have moved from one of the most widely used chemicals to one of the most tightly controlled. Today, PCBs represent the only substance singled out for a customized regulatory framework, a self-contained system under which owners and users must operate. It is a series of regulations unmatched for any other industrial chemical.

Although most PCB-related activities have been banned or tightly restricted, PCBs still remain in industrial and commercial use in allowable circumstances. PCBs previously released into the environment are dispersed in the air and water and are located in landfills and sediments. Over half of the PCBs manufactured were disposed of prior to the enactment of specific regulations. Consequently, pathways exist for PCB exposure, and PCBs are still considered a threat to human health and the environment. For this reason, PCBs have been included in the Virtual Elimination Pilot Project.

The challenge for the Virtual Elimination Project is three-fold. It seeks to identify incentives necessary to encourage accelerated phaseout and proper disposal of PCBs in (1) specifically regulated and known items such as transformers and capacitors, (2) known but unregulated items, such as non-leaking capacitors in fluorescent lamp ballasts, and (3) those circumstances where PCBs are "unknown" either by source and/or location.

PCBs also reside in sediments, hazardous waste sites, and other areas as a result of past use and disposal practices. Because the Virtual Elimination project is focusing on current and future use and disposal practices, these sources are not included in the analysis. These sources of PCBs are addressed by current remediation programs.

Several recent efforts may change substantially the way in which PCBs are regulated and the manner in which they are disposed. The Virtual Elimination project will explore these current efforts and seek other appropriate options that would result in more rapid and proper PCB disposal.

This background report addresses the following issues:

1. What sources potentially release PCBs into the environment?
2. What regulations affect PCB use and disposal? The discussion focuses on current TSCA regulations and possible changes to these regulations, as they shape PCB use and disposal decisions.
3. What non-regulatory programs encourage reductions in PCB use and disposal?
4. What potential changes to PCB regulations are in progress?

The objective of this background information is to provide a context for understanding how PCBs are currently used, past uses that might contribute to current PCB releases, and the extent to which the current regulatory structure is encouraging -- or hindering -- timely and proper disposal of PCBs. From this information, recommendations can be developed to enhance proper PCB disposal. Table 1 outlines the approach used for PCBs in the Virtual Elimination project.

Table 1 Outline for PCB Approach
(PDF 7Kb, 1pp)

II. What are the Sources of PCBs?

From 1929-1977, Monsanto Company, the sole manufacturer of PCBs in the United States, produced 700,000 tons of PCBs. Due to their low flammability, PCBs were used extensively for insulating and cooling electrical equipment, particularly in transformers, large capacitors, and fluorescent lamp ballasts. Annual PCB sales peaked at 85 million pounds in 1970. Recent estimates suggest that 141,000 tons of pure PCBs remained in service at the end of 1988.

In the United States, PCBs are, for the most part, no longer used deliberately in product manufacture. PCBs are released to the environment from (1) items that contain PCBs introduced deliberately for their useful chemical properties, (2) inadvertent generation during certain production processes, and (3) storage and disposal facilities. A brief discussion of the different categories of potential PCB sources follows. This section concludes with a discussion of PCB release data available from several federal and state reporting programs. Appendix A, a detailed "use tree" of PCB sources, illustrates the diverse applications of PCBs before their general use was curtailed.

A. Items containing intentionally introduced PCBs

The majority of PCBs were used in the production of dielectric fluids for transformers, capacitors, and other electrical components. PCBs were also used in synthetic resins, epoxy paints and protective coatings, and hydraulic and heat transfer fluids (due to their high boiling point). Because of its low flammability property, many past uses of PCBs may not be known to regulators today. For instance, it was only recently discovered that the U.S. Navy painted some ships with paints that incorporated PCBs, which now causes difficult disposal issues.

Today, none of these items may be designed or manufactured with PCBs. Under current regulations, these uses must be recognized specifically by regulation, or are not allowed at all. However, items such as large appliances, transformers, fluorescent lamp ballasts, and many other products created before PCBs were banned have a long useful life, and thus, many of these items remain in service. In some cases, owners may not know that items on their property contain PCBs. The challenge for the virtual elimination project is to develop ideas that result in accelerated phaseout and proper disposal of these and other remaining PCBs.

1) Allowable Uses

TSCA regulations, described in detail in section IV, include provisions for allowable uses of PCBs within its overall ban. Transformers and capacitors, the largest reservoirs of PCBs still in use, are included in this category.

Under TSCA, all uses of PCBs are banned unless they fall into one of the following categories of allowable uses: (1) "totally enclosed" activity; (2) authorized uses; or (3) exemptions obtained through specific petition. In addition to uses allowed in these three categories, several other activities are allowed without explicit authorization or exemption, provided the PCB concentration falls below the regulatory concentration limit: (1) the inadvertent generation of PCBs; (2) use or processing of excluded products; (3) use or processing of recycled PCBs; and (4) applying sewage sludge that contains less than 50ppm PCBs. Table 2 summarizes these allowable use provisions. Appendix B lists the specific activities allowed under each category.

Why are certain PCB uses and activities still allowed? EPA has determined that certain PCB uses pose no unreasonable risk. This threshold of "no unreasonable risk" is the underpinning of the TSCA regulatory framework. Some PCB activities that EPA considers to pose "no unreasonable risk" avoid TSCA's regulatory levers.

a. Electrical Equipment

PCBs were used as electric current-insulating material and coolant in electrical equipment to prevent overheating and fires. Electrical products that relied on this type of insulation include transformers, capacitors, voltage regulators, and lamp ballasts. Capacitors containing PCBs were also used in refrigerators, air conditioners, and other large appliances. Industrial machinery and other electrical equipment also relied on PCBs' fire resistant and insulating properties.

The primary concerns with this type of equipment result from spills, fires, and improper disposal. Identifying all potential owners of equipment containing PCBs is quite difficult.

Transformers and capacitors. Transformers and capacitors are the focus of numerous regulations. Restrictions on allowable uses have tightened over the years since TSCA regulations were first promulgated. Transformer fires may release dioxin from incomplete combustion of PCBs. Current regulations, described in more detail in Section IV impose strict requirements on the locations of these items, and require recordkeeping, monitoring, marking and other obligations for owners. However, all phaseout dates for these items have already past. These phaseouts restricted the locations of PCB-transformers.

Table 2 - Categories of PCB Use/Activities Allowed under TSCA
(PDF 8Kb, 1pp)

The majority of transformers are owned by utility companies. Regulators are concerned that (1) improper transformer servicing and disposal may result in spills and leaks to the environment, and (2) building owners may not be aware of a transformer containing PCBs on their premises. As discussed in Section V, EPA Region 5 is exploring options to promote a more rapid phaseout of PCB transformers.

Lamp ballasts. All fluorescent lamps manufactured before 1979 probably contain PCBs. However, they are not labeled as such. Only lamps manufactured after 1979 are labeled to indicate they do not contain PCBs. Because of the potential for future environmental liability, many building owners and others responsible for large quantities of discarded light ballasts are exploring combinations of incineration and recycling instead of landfill disposal. Several companies offer cleanup disposal services. Large building owners are likely aware of potential PCBs in their lamps, however, smaller owners may not be aware of this potential PCB source.

PCB ballast capacitors contain about 1 ounce of PCB dielectric fluid. Industry sources estimate that approximately 1 billion ballasts are in use in the United States. Ballasts with non-leaking small capacitors may be disposed of in sanitary landfills, although EPA encourages disposal in chemical waste landfills or incinerators. In Minnesota, large quantities of fluorescent lamp ballasts are considered hazardous waste, and must be disposed of accordingly.

b. Non-Electrical uses

PCBs used in inks and carbonless copy paper may cause paper mills and de-inking operations handling recycled fiber to generate PCBs in their effluent. Metal casting plants with PCB-containing hydraulic fluids are also potential sources of PCB releases. PCBs were also used in paints, adhesives, sealants, pesticides, plasticizers, and as lubricants. As indicated below, many of these uses are no longer allowed under any TSCA provisions.

2) Discontinued Uses of PCBs

Several previous uses of PCBs are not authorized or provided for under any TSCA provisions. These items may remain in circulation even if they are no longer produced. The following list illustrates products that have, in the past, contained PCBs although PCBs are no longer allowed in these items:

Adhesives, construction materials, cutting oils, dedusting agents, fuel tank coatings, gaskets, inks, oil/lubricants for vacuum pumps, air compressors, and gas transmission turbines, paints, pesticide extenders, plastic electrical cable insulation, plasticizers in rubber, plasticizers in synthetic resins, sound deadening felt, viscosity testing liquids.

B. Inadvertent Generation of PCBs

Any chemical process that involves carbon, chlorine, and elevated temperatures may inadvertently generate PCBs. EPA has estimated that up to 200 chemical processes may inadvertently generate PCBs. For example, many of these processes are used to produce chlorinated solvents. In addition, numerous other products, such as paints, printing inks, agricultural chemicals, plastic materials, and detergent bars, may contain inadvertently generated PCBs. The concentration of inadvertently generated PCBs in products leaving any manufacturing site or imported into the United States must have an annual average of 25 ppm, with a 50 ppm maximum. The concentration of PCBs in detergent bars must be less than 5 ppm.

In 1984, EPA weighed the health and environmental risks and the economic costs of allowing these processes to continue. At that time, EPA concluded that the quantity of PCBs released to the environment from these ongoing processes was inconsequential compared to the quantity of PCBs released to the environment from items that contained intentionally introduced PCBs. For that reason, EPA decided against an outright ban of these processes, due to the potential for a major disruption in commerce.

Specifically, EPA recognized that the high costs associated with eliminating the low risks posed by inadvertently generated PCBs would place an excessive cost on society in light of the minimal reductions in public health risks that would accrue. Instead, EPA decided to add certification, recordkeeping, and reporting requirements to facilities that inadvertently generated PCBs, in combination with the specified regulatory concentration limits for air and water releases. Inadvertently generated PCBs vented to ambient air must be less than 10 ppm. The amount of inadvertently generated PCBs added to water discharged from a manufacturing site must be less than 100 ppb.

C. Waste Disposal Facilities

Under TSCA regulations, items containing PCBs must be disposed of in specified disposal facilities. However, some items, such as non-leaking fluorescent lamp ballasts, may be disposed of as municipal solid waste. These items may release PCBs if they break during disposal.

TSCA regulations outline operating standards and procedural requirements for incinerators and chemical waste landfills. Disposal contracts must specify that only EPA permitted or approved facilities will be used. Improper disposal may result in generator liability.

Wastewater Treatment Plants. Some wastewater treatment facilities in the Great Lakes states detect PCBs in their effluent. The specific source of these PCBs will vary by treatment plant, and may include contaminated sediments, illegally disposed PCBs, and other sources. Treatment plants such as the Western Lake Superior Sanitary District in Minnesota have aggressive programs to determine the sources of PCBs to their facilities.

Incinerators. PCBs are destroyed almost completely when incinerated in a TSCA-approved incinerator burning at permitted operating temperatures. The minimum operating temperature for PCB liquids > 500 ppm is 1200 degrees celsius (2200 degrees fahrenheit). TSCA operating permits and regulations prohibit adding PCB feedstock during start-up or shut-down. Combustion processes, such as incinerators, boilers, and furnaces, may not reach a high enough temperature to destroy PCBs if they burn items containing PCBs during startup or shutdown. PCBs may convert to dioxins if they are not destroyed properly. EPA does not have as tight control over the operating conditions at boilers and industrial furnaces that burn wastes, or used oil as fuel, as it does for TSCA-permitted incinerators.

Landfills. Landfills are a potential source of PCB release to the environment due to past disposal of PCB-containing items as well as current, allowable disposal of PCB-containing items. Landfill operators must monitor the groundwater for PCB contamination.

D. Data Sources for the Great Lakes States

PCB releases and transfers are reported under several reporting programs, each with a different set of regulatory requirements, and each covering a different subset of the regulated community. The primary sources of PCB release information are (1) the Toxic Chemical Release Inventory (TRI), (2) Permit Compliance System (PCS) of water discharges, (3) the National Response Center for information on PCB spills, and (4) the Notification and Manifesting Rule for PCB disposal. In addition to these federal reporting programs, some Great Lakes states maintain other reporting systems that provide additional information on PCB releases. Data is included for Wisconsin air point sources and Michigan's Critical Materials Wastewater Report.

Information from each of these sources is summarized below, and included in detail in Appendix H. With the exception of TRI data, all information is shown by SIC code to illustrate the distribution of PCB releases across different industrial sectors. Appendix H1 provides a summary of the number of facilities that report PCB releases under each of these programs, and shows how the number of facilities varies by reporting program as a result of differing reporting requirements. For instance, 360 facilities in the Great Lakes states report PCBs under Michigan's Critical Materials Wastewater Reporting program, while only 9 facilities report PCB releases under TRI.

Region 5 has also estimated the number of remaining PCB transformers and capacitors as part of its efforts to phaseout this equipment. EPA estimates that Region 5 may have 17,500 PCB transformers and 400,000 PCB capacitors. Many of these items have several years left of useful life. As PCB equipment approaches the end of its useful life, spills become more common. EPA estimates that 3.3% of transformers and 0.75% of capacitors will spill, with 560 transformer leaks and spills, and 3000 capacitor leaks and spills annually. Utilities in the Great Lakes states estimate that they have already removed 87% of their PCB equipment.

Toxic Chemical Release Inventory (TRI). Appendix H2 shows TRI PCB releases for the Great Lakes states. TRI tracks chemical releases from facilities in the manufacturing sector (SIC codes 20-39) that meet reporting thresholds. TRI thresholds are based on the quantity of each substance used, processed, manufactured, or imported at any of these facilities. Appendix H2a includes 1992 data for the eight Great Lakes states, including any source reduction activities implemented by each facility. Nine facilities reported PCB releases in 1992. All PCB releases were reported as offsite transfers. No facilities reported releases to air or water. Table 3 shows the types of releases reported in TRI. Electric utilities do not fall into the SIC code range covered by TRI, and therefore do not report any PCB activities under this program.

PCS data. Appendix H3 contains data from EPA's Permit Compliance System (PCS) for water discharges. PCS data approximates point source loads from municipal and industrial dischargers. The information is based on monitoring data supplied by regulated facilities. EPA uses PCS data as the basis for its enforcement program. In 1993, eight facilities reported PCB discharges in Region 5 during 1993.

National Response Center. Spills of PCBs that exceed one pound must be reported to the National Response Center. Based on National Response Center data, Region 5 had 27% of the nation's spills from 1987-1992. Michigan, alone, had nine percent of the nation's spills, and 34% of the Region's spills.

[insert table 3 - TRI pie chart]

Wisconsin Air Point Source Emissions Data. Appendix H4 contains air emissions data for Wisconsin facilities (1992 data). As part of its Clean Air Act Title V Operating Permit Program, Wisconsin collected emissions data from facilities that reported releases greater than one pound of hazardous air pollutants, including PCBs. Three facilities reported PCB emissions under this program. This total includes two paper and allied products facilities.

Michigan Critical Materials Registry. Appendix H5 includes data from Michigan's Critical Materials Wastewater Report (1991 data). As part of its water quality program, Michigan collects information on chemical use and release from facilities that use any substance, including PCBs, on the "Critical Materials Registry." It is the only program that requires facilities to report information about chemical use. Under this program, "use" means the presence of the chemical on site. A total of 360 facilities reported PCB use, including 61 motor vehicle-related facilities, 21 electric utilities, and 13 paper mills. The total PCB use was between 12,596,890 - 12,631,657 pounds. Of this total, 11 facilities reported discharges ranging in total between 114 and 627 pounds; 115 facilities reported residuals ranging in total between 916,831 and 930,556 pounds.

Notification and Manifesting Rule. EPA promulgated a notification and manifesting rule in 1990 to track PCB waste disposal in a manner similar to RCRA waste disposal tracking. Under the notification and manifesting rule, storage and disposal facilities must track and report all PCB wastes received. This data illustrates the volume of PCBs disposed annually in each EPA region, but it does not track the source of this waste.

Appendix H6 shows the trends in PCB disposal (at a national level) since the inception of the notification and manifesting rule. In 1992, 746 million kilograms of PCB-contaminated waste were disposed of in TSCA disposal facilities, representing an increase of 62% over 1991 PCB disposal. EPA estimates that 91% of this waste was bulk waste, most likely from remediation.

The volume of PCB waste accounted for in transformers, capacitors, article containers, and containers has remained relatively constant over the three-year period.

EPA regions with large PCB disposal facilities show the largest disposal volumes. Region II (NY, NJ, RI) reported 152,800,000 kilograms disposed of in 1992. Almost all of this was disposed of at a chemical waste management PCB landfill in New York (152,500,00 kg). Region III (PA, VA, WV) reported 14,700,000 kilograms of PCB waste, and Region V reported 24,100,000 kilograms.

III. Environmental and Health Concerns

PCBs are classified as probable human carcinogens. As a class of chlorinated compounds, PCBs may include more than 200 different isomers. The specific toxicity varies among chemical products based on the number and position of the chlorine atoms. Tests on laboratory animals show that PCB exposure can cause cancers, tumors, birth defects, reproductive failures, as well as liver, eye, and gastric tract disorders. PCBs persist in the environment after they are released. Because PCBs are stable compounds, they do not degrade rapidly, and are passed up the aquatic food chain in increasing levels in a phenomenon known as bioaccumulation.

The major source of PCB exposure for the general public is contaminated fish consumption. PCB contamination in fish and shellfish populations has resulted in closure of fisheries across the country. In addition, PCB exposure may result from servicing PCB containing products such as transformers and other electrical equipment. These activities are also regulated under OSHA occupational safety standards at a level designed to protect against skin disorders (29 CFR 1910).

IV. How are PCBs Regulated?

PCBs occupy a unique niche in the federal chemical regulatory arena. Singled out for special attention under TSCA, PCBs are subject to a management regime largely independent of other environmental laws. PCBs are regulated primarily under the Toxics Substances Control Act (TSCA), which dictates restrictions on the manufacture, sale, use, disposal, import and export of PCBs. The statute also includes provisions for allowable uses. TSCA is not a program delegated to the states like many other statutes. States may regulate the disposal of PCBs under their own authorities, but those rules cannot be less stringent than TSCA rules.

PCB releases are also regulated by the Clean Air Act (CAA), Clean Water Act (CWA), Resource Conservation and Recovery Act (RCRA), and PCB releases are also reported in the Toxic Chemical Release Inventory (TRI). However, TSCA regulations shape the principal regulatory framework. Thus, the costs associated with having PCBs are generally independent of costs associated with other chemicals.

A. TSCA Regulations

TSCA establishes a legal presumption that PCBs pose an unreasonable risk to human health and the environment, unless EPA determines otherwise. TSCA regulations establish an elaborate concentration-based hierarchy that governs all aspects of PCB use and disposal, and dictates specific behaviors that are necessary for compliance. Regulations and policy specify:

1. How PCBs may be used, processed, distributed, manufactured, exported, and/or imported;
2. Acceptable storage and disposal conditions;
3. Spill clean-up requirements; and
4. Recordkeeping and reporting requirements.

Each of these categories has a separate series of costs associated with it, as well as different thresholds, and criteria for achieving compliance. TSCA regulations, codified at 40CFR 761, apply to all persons who manufacture, process, distribute in commerce, use, or dispose of PCBs or PCB items, including dielectric fluids, contaminated solvents, oils, waste oils, heat transfer fluids, hydraulic fluids, paints, sludges, and spill contaminated soils. TSCA regulations apply as well to items that have been in contact with PCBs.

TSCA relies on a theory of increasing regulatory burdens and maintaining management requirements with each higher level of PCB concentration.

• PCBs in concentrations <50ppm are known as "non-PCB" items. These items are generally excluded from regulation, with the exception of a prohibition on using and burning waste oil (40CFR 761.20(d) and (e)); disposal is still regulated if wastestreams are diluted to <50ppm (40CFR761.1(b)). In addition, PCB concentrations in heat transfer and hydraulic equipment must be less than 50 ppm.
• Electrical equipment containing PCBs in concentrations between 50 - 500ppm are known as "PCB-contaminated" electrical equipment. These items have some recordkeeping and disposal requirements, along with specifications for storage, cleanup, and notification; and
• PCBs found in electrical equipment in concentrations >500ppm are known as "PCB-transformers". These items have requirements for marking, recordkeeping, inspection, cleanup, registration, notification, location, and limited disposal options.

Costs associated with TSCA regulations include inspection, recordkeeping, servicing, marking, location requirements, notification and other issues. Table 4 shows the basic framework for TSCA regulations of PCBs. Table 5 highlights the major provisions within this framework.

Despite the clear message of TSCA regulations, existing regulations may not necessarily encourage accelerated phaseout or proper removal and disposal of PCBs. Frequently, it is difficult to move between concentration levels, especially given TSCA's prohibition on dilution, and stringent rules for reclassifying equipment with PCBs. In addition, current regulations are noticeably lacking in requiring the elimination of PCBs in existing -- and allowable -- uses. All previously specified phaseout deadlines have come and gone. Yet, lingering over all PCB owners is the potential for heavy costs associated with leaks, spills, improper disposal, and future liability costs. TSCA violations average $25,000 per action for violations that include paperwork errors and unauthorized uses or releases.

The implication of this regulatory regime is easily recognizable: lower concentrations of PCBs (or elimination of PCBs) reduces the regulatory burden and compliance costs. Thus, the TSCA message is clear: eliminate PCBs or move to a lower threshold category, and many costs associated with PCB management disappear. This clear message lies in stark contrast to regulations that affect multiple chemicals.

Table 4 - TSCA Overview
(PDF 9Kb, 1pp)

Table 5 - TSCA Details
(PDF 11Kb, 1pp)

PCB regulations have been revised periodically based on new risk information. In several instances, EPA has rejected additional outright bans on continued use because the societal costs of doing so far outweighed the benefits of additional risk reduction. For example, in the mid 1980s, EPA imposed additional regulatory requirements (inspection, servicing, registration, labeling, location requirements, etc) on PCB transformers to minimize fire risks instead of immediately banning them because of the estimated multi-billion dollar costs associated with electrical service disruption.

EPA promulgated the "fire rule" in 1985, after reassessing its earlier position on the expected frequency of fire-related incidents involving transformers containing PCBs. PCBs released during transformer fires may be volatilized and converted into other toxic materials such as dioxins. With this rule, EPA imposed restrictions on the locations of electrical equipment containing PCBs, and required registration and marking of PCB electrical equipment. In so doing, EPA determined that the continued use of PCB transformers without these additional restrictions posed an unreasonable risk of injury to health and the environment (see "fire rule," at 50 FR 29170, July 17, 1985).

1) Allowable Uses of PCBs

In general, all PCB uses or activities are banned unless they fit into a specifically listed category. Table 2, included earlier in this report, summarized the different types of allowable uses. Appendix B describes these activities in greater detail. PCB activities are allowed in the following areas:

Totally Enclosed Activities. "Totally enclosed" activities are defined in TSCA regulations as an activity that results in "no exposure to humans or the environment" (40CFR761.20). Regulations list the distribution in commerce of certain intact, non-leaking electrical equipment as totally enclosed activities.

Authorized Uses. "Authorized uses" are non-totally enclosed uses that must be specifically authorized by rule (TSCA ?6(e)(2)(B)). Generally, authorized uses are based on a finding that the use will not pose an unreasonable risk of injury to health or the environment. Regulations list such authorized uses (40CFR761.30). EPA may modify this list as appropriate. For instance, in April 1994, EPA added analytical reference samples to the list of authorized uses.

Exemptions. "Exemptions" are required for activities that are not considered totally enclosed, or are not specifically authorized by rule. Individuals may petition EPA to approve a one-year exemption for their specific use. EPA may grant an exemption if it determines that the activity would not pose an unreasonable risk of injury to health or the environment and the applicant has made good faith efforts to develop a chemical substitute. Appendix C lists the companies (as of July 1993), that have been granted exemptions for PCB activities.

Until recently, these exemptions renewed automatically as long as no changes were made to the allowed activity. However, in April 1994, EPA revised the regulations governing renewals of exemptions (59 FR 16991-16999). Under the revised regulations, petitioners must submit a certified letter to EPA at least six months prior to the expiration date of the current exemption stating that the specific types of PCB activities have not changed. Any changes to an original exemption are considered a new petition for exemption. The revised regulations apply to exemptions granted on or after April 25, 1994.

2) Disposal / Storage Costs

TSCA regulations require specific disposal methods that vary by the type and concentration of PCB items. The pollutant form determines the type of disposal options available. These options include:

1. incineration in a regulated PCB incinerator;
2. disposal at a licensed chemical waste landfill;
3. disposal in a high efficiency boiler;
4. alternative disposal methods subject to EPA approval;
5. disposal as municipal solid waste; and
6. unregulated disposal.

Appendix D shows the regulatory framework for PCB disposal in detail. Incineration destroys PCBs and eliminates the potential for future liability that may result from landfill disposal options. However, incineration has the highest short term costs of available disposal options.

EPA approves several different methods for PCB disposal. Several PCB disposal companies operate a variety of commercially permitted disposal facilities throughout the United States. These companies offer PCB disposal related services that include incineration, alternate thermal treatment, chemical treatment, physical separation, pipeline removal, PCB transformer decommissioning (disassembly/smelting), chemical waste landfills, and biological treatment. A full list of these companies is included as Appendix E.

EPA regulations impose a one year time limit on PCB items placed in storage for disposal. However, EPA has learned of many instances where owners of PCB equipment place it in storage in anticipation of re-use to avoid the one year time limit. EPA is evaluating this in its upcoming PCB disposal amendments.

EPA has also promulgated rules that guide the approval process for commercial PCB storage facilities. EPA revised its regulations in November 1993 defining the criteria it will use to evaluate a PCB storage approval application (see 58 FR 59372-59374, modifying 40CFR761.65). EPA evaluates commercial storage applications on a case-by-case basis, including the environmental compliance history of the applicant.

B. Other Regulations Governing PCB Releases

PCB releases are regulated to some extent under the major environmental statutes. However, these regulations are not the primary driving force shaping decisions about how fast to dispose of PCBs.

Clean Air Act. PCBs are considered Hazardous Air Pollutants (HAPs) under the Clean Air Act. EPA will be promulgating a new category of regulation, known as maximum achievable control technology (MACT standards) for "major source" facilities in any listed source category. Major sources are defined as those sources that release 10 tons per year of any HAP, or 25 tons per year in total HAP emissions. EPA must also list, by 1995, the source categories that account for at least 90 percent of aggregate emissions for seven pollutants, including PCBs. These sources will be subject to MACT standards within ten years.

Clean Water Act: The ambient water quality criteria for PCBs in surface waters is 0.001 Fg/l. Section 129 of the Clean Water Act specifically bans the discharge of PCBs from PCB, electric transformer, and electric capacitor manufacturers. Facilities may apply to EPA or a state director for an adjustment of their PCB effluent limits if the PCBs in their effluent result from PCBs present in intake water. The facility owner or operator must show that the facility wastewater does not contain a higher PCB concentration than the intake water. (40CFR129.05)

TRI: PCB releases are reported under the Toxic Chemical Release Inventory (TRI). All PCB releases reported in TRI were offsite transfers. Table 6 shows the trends in PCB disposal reported in TRI.

[insert table 6 - TRI trends]

RCRA: The interplay between TSCA and RCRA for PCB regulation is complex. In general, TSCA regulations apply to all aspects of PCB use and disposal. Because of this specific regulatory framework, RCRA's in-depth storage, treatment, and disposal rules generally do not apply to PCBs. Instead, RCRA regulations defer to TSCA requirements for PCB wastes.

In some cases, however, RCRA regulations apply to PCBs. Following are some examples of the types of situations where RCRA regulations do apply to PCBs:

• Dielectric fluids and electric equipment with dielectric fluids treated under TSCA are not regulated under RCRA (40CFR 261.8);
• Municipal Solid Waste landfills must have in place programs that detect and prevent PCB disposal (40 CFR 258.20);
• Hazardous wastes containing liquid PCB wastes greater than 50 ppm are prohibited from land disposal unless approval is granted by petition.
• PCBs are a hazardous constituent under RCRA. As a result, the following RCRA regulations apply: groundwater monitoring (40CFR 264, App. IX); incineration requirements as a POHC (40CFR 264, 347); and corrective action (40CFR 264.100).

OSHA: The Occupational Safety and Health Act (OSHA) regulates workplace safety and sets permissible exposure levels for dangerous chemicals. The legal airborne permissible limit (PEL) for PCBs is 1 mg/m3 (42% chlorine) and .5 mg/m3 (54% chlorine) averaged over an 8-hour workshift. The National Institute of Occupational Safety and Health (NIOSH) recommends an airborne exposure limit of .001 mg/m3, averaged over a ten hour period. These exposure limits pertain to air levels only. They do not apply to skin contact.

Department of Transportation container requirements: DOT currently requires specialized containers for packaging and transporting liquid and non-liquid PCBs (49CFR178). TSCA allows larger containers for use in transporting PCBs if they are in compliance with OSHA flammable and combustible liquid rules (29CFR1910). EPA is reviewing these container requirements as part of the PCB disposal amendments (see Section VI).

[insert table 6 - TRI trends]

Department of Agriculture Regulations: PCB contamination of foodstocks may occur as the direct result of spills or leaks from PCB equipment, as well as indirectly from packaging contaminated with PCBs originating from recycled carbonless copy paper. The United States Department of Agriculture (USDA) regulates PCB contamination of food products by placing restrictions on food packaging operations and by setting tolerance levels for PCBs in certain foods. (21CFR109). New equipment or machinery for manufacturing food-packaging materials cannot contain or use PCBs. Equipment must be tested for PCBs and removed from use where they could contaminate food-packaging materials.

Safe Drinking Water Act: Under the Safe Drinking Water Act, EPA established maximum contaminant levels for all public water systems in the United States. The MCL for PCBs is 0.0005 mg/l.

CERCLA: Facilities must report disposal of PCBs in quantities greater than one pound to EPA for the purpose of tracking future liabilities. (?102(a)) CERCLA also requires spills greater than 1 pound to be reported to the National Response Center.

V. Non-Regulatory Programs

Region 5 has developed an innovative, non-regulatory program designed to encourage more rapid and proper disposal of PCBs. Known as the PCB Phasedown program, it is designed to seek creative solutions cooperatively with the Region's utilities to remove PCB transformers and capacitors. For its early stages, the program is geared only toward "PCB-transformers," and PCB capacitor items with the highest concentrations of PCBs. All remaining regulatory phasedown deadlines for these items have already passed, and many transformers containing PCBs still have a useful life. The cost of decommissioning, removing, and disposing of a transformer containing PCBs may cost tens of thousands of dollars.

The overall goal of the PCB Phasedown Program is to have all PCB electrical equipment in Region 5 decommissioned within five years. EPA has formed a partnership with the utilities in the Region to accomplish this goal.

EPA is asking participating utilities to agree to a five year commitment to:

• Phasedown all PCB nameplated electrical equipment that has not already been removed from service;
• Test all non-nameplated electrical equipment in vaults, substations, and power plants, and phaseout any discovered to contain 500 ppm PCBs or greater; and
• Develop and implement an aggressive testing program for non-nameplated transformers and voltage regulators, and phaseout any found to contain 500 ppm PCBs or greater in sensitive areas such as agricultural lands, schools, hospitals, waterways and wetlands.

Utilities participating in the program include:

EPA is also seeking the utilities' help with outreach to other customers; influencing other users of PCB electrical equipment to participate in the program; sharing technical expertise with smaller electricity suppliers; insuring that PCB electrical equipment at abandoned sites or buildings are included in the PCB phasedown program; and providing incentives to smaller utilities and industrial and commercial customers. EPA has requested that participating utilities submit a report showing their previous PCB disposal activities, remaining PCB items in service, and commitments for future disposal.

Participating utilities report that they have already removed 87% of PCBs in service in electrical equipment through voluntary programs and regulatory requirements. They cited the following barriers to accelerated phaseout of PCB equipment:

• limited disposal options
• storage regulations (facility standards and time limits)
• enforcement penalties
• regulations on retrofilling transformers
• commercial storage regulations
• lack of economic incentives for decommissioning transformers
• liability for handling PCBs and PCB equipment generated by others

EPA is exploring options that might reward more rapid disposal of PCB equipment. Specifically, EPA is looking for options to build flexibility into enforcement actions for participating utilities. EPA will also prepare reports that discuss phasedown program efforts, and work to overcome perceived regulatory barriers that deter utilities from removing their PCB equipment.

The phasedown program is still in the preliminary stages, however EPA is considering expanding it to other industrial sectors that may have large volumes of PCB transformers.

VI. Potential Changes in PCB Regulation

Several existing barriers in PCB regulations may be addressed in upcoming rulemakings. Most notable are the "disposal amendments" which illustrate EPA's self-reflection after two decades of regulating PCBs. EPA has recognized the need to revisit certain aspects of existing regulations in order to provide the flexibility necessary to ensure proper disposal. In addition to the disposal amendments, EPA has proposed regulations that revise the criteria to reclassify transformers to lower regulatory levels. Both of these potential rule changes are summarized below.

A. Disposal Amendments

In June 1991, EPA announced an advance notice of proposed rule making designed to restructure existing disposal regulations for PCBs. Several key tenets of PCB regulations may change significantly as a result of new disposal amendments. To date, the "disposal amendments" have not been issued, although they are anticipated to be released in proposed form by the end of 1994.

Revised disposal rules could address changes in three areas:

1. Alternative disposal methods that do not pose an unreasonable risk of injury to human health and the environment;
2. Classes of PCBs and PCB Items that are not specifically regulated under existing requirements; and
3. Revised regulatory requirements for existing classes of PCBs and PCB items.

In the Advance Notice of Proposed Rulemaking, EPA identified regulatory gaps in existing regulations, situations where implementation of existing regulations needed to be clarified, and situations where additional flexibility might promote disposal more effectively. Specifically, the disposal rules may address changes in the following areas:

(1) Alternative storage and disposal methods:

• Large volume, non-liquid PCB wastes;
• Large volume PCB items;
• PCB wastes (PCB/Radioactive);

(2) Classes of PCBs and PCB items not currently regulated under general disposal requirements:

• Household PCB waste
• Unknown or unauthorized uses of PCBs

(3) Revised regulatory requirements for existing classes of PCBs

• Marking transport vehicles
• DOT containers for storage of PCB waste
• Definition of PCB transformer
• Drained PCB-contaminated transformers
• Temporary storage of PCB liquid <500ppm
• Sale of totally enclosed PCBs or PCB items
• PCB storage requirements
• Exclusion for labs providing PCB analytical samples
• Class exemption for EPA and NIST to process and/or distribute PCB standards in commerce
• 500 gallon exemption under PCB notification and manifesting rule
• Coordinated approach (state enhancement activities)

Appendix F describes, in detail, the specific issues that will be addressed in this rulemaking. When the amendments are released, they may also include other revisions as well. The draft amendments are undergoing internal EPA review, and will likely be released in draft form before the end of the calendar year. Depending on the specific content of these regulations, several existing disposal barriers and loopholes may be eliminated.

Appendix F5: WISCONSIN MERCURY EMISSIONS (Air point sources, 1992 Data)
(PDF 20Kb, 2pps)

Appendix F6: Michigan Critical Materials Wastewater Report - 1991 Data
(PDF 20Kb, 3pps)

B. Transformer Reclassification Rules

EPA has released a proposed electrical transformer reclassification rule that eases many requirements to reclassify PCB and PCB-contaminated transformers into a lower concentration category that avoids several regulatory requirements. Table 7 highlights the major changes proposed in the transformer reclassification rule. Appendix G describes these proposed changes in greater detail.

Comments received on the proposed rule have included several proposed changes. EPA is currently reviewing the comments received on the draft rule to determine the next steps. Depending on the outcome of this review, the rule may be proposed again, or EPA may do additional studies, which would shift promulgation back for several months.

Table 7 Overview of Proposed changes in Transformer Reclassification Rules
(PDF 7Kb, 1pp)

Appendix H: Data on PCB Releases

Appendix H contains information on PCB releases available from several federal and state reporting systems. Federal and state agencies collect information on PCB releases as part of broader programs designed to meet reporting requirements for multiple substances. It is important to keep in mind that each data set must be interpreted separately due to differences in reporting requirements and the types of information collected.

All data is organized by Standard Industrial Classification codes (SIC codes). This structure offers a uniform method to identify industrial sectors. The first two digits of a SIC code identify major industrial sectors. The full four digit code allows more specific identification of industry type. Even with this detailed breakdown, variation exists within a given SIC code. For a complete list and description of SIC codes, as well as the specific industrial processes covered by each code, refer to the Standard Industrial Classification Manual. By using SIC codes, it is possible, on a broad scale, to identify the types of industrial sectors where PCB releases occur most frequently.

Appendix H includes PCB release information from five specific data sources. The list below indicates the specific components of Appendix H. The first page of each set of data includes an explanation of the reporting program and the data reviewed.

App. H1 Summary of Reporting Information (PDF 47Kb, 12pps): The table shows, by SIC code, the frequency with which PCB releases appear in each data set reviewed for this analysis. It is organized by SIC code and by state.

App. H2 Toxic Chemical Release Inventory (TRI) data: TRI data for 1992 and 1991. H2a = 1992 data for Great Lakes states only

H2b = 1991 data for Great Lakes states only

App. H3 Permit Compliance System (PCS) data: PCS data for the Great Lakes basin (facilities located in the Great Lakes basin only; not necessarily statewide)

H3a = July 1992 - June 1993 data

H3b = July 1991 - June 1992 data

App. H4 Wisconsin Air Point Source data: PCB air emissions data collected for Wisconsin's Clean Air Act Title V Operating Permit Program (PDF 12Kb, 1pp) (reported data).

App. H5 Michigan Critical Materials Registry: 1991 data (PDF 21Kb, 4pps) collected under Michigan's wastewater reporting program. Data indicates the number of facilities reporting PCB use (including material on-site).

App. H6 Notification and Manifesting data

Appendices

• Appendix A: PCB Use Tree
• Appendix B: PCB Activities / Uses Allowed Under TSCA
• Appendix C: Exemptions for Manufacturing, Processing, and Distribution
• Appendix D: Regulatory Framework for PCB Disposal
• Appendix E: Commercially Permitted PCB Disposal Companies
• Appendix F: Issues Considered in PCB Disposal Amendments
• Appendix G: Comparison of Transformer Reclassification Rules (Existing and Proposed)
• Appendix H: Data on PCB Releases