CCB Regulation Update

1. CCB Regulation Update Jim Roewer APPA Energy & Air Quality Task Force April 26, 2010

2. Coal Combustion Byproducts • Produced as a result of coal combustion for power generation • Fly Ash • Bottom Ash • Boiler Slag • Flue Gas Desulfurization (FGD) Materials

3. CCB Regulatory Status • Subject to State Solid, Industrial or Special Waste Regulations • Exempt from Regulation as RCRA Hazardous Waste

4. CCB Regulatory Chronology • 1980 Bevill Amendment • 1988 EPA Report to Congress • “EPA does not intend to regulate under Subtitle C” • 1993 Regulatory Determination (58 Fed Reg 42466) • “regulation … as hazardous waste under RCRA Subtitle C is unwarranted.”

5. CCB Regulatory Chronology • 1999 EPA Report to Congress • “disposal … should remain exempt from RCRA Subtitle C” • 2000 Regulatory Determination (65 Fed Reg 32214) • “regulation … under Subtitle C of RCRA is not warranted.” • no additional regulations are warranted for beneficial use • “decided to establish national regulations under subtitle D of RCRA “

6. TVA Kingston Fossil Plant Coal Ash Spill • Monday, December 22, 2008, just before 1 a.m., a dike at a coal ash containment area failed at TVA’s Kingston Fossil Plant • >1 Billion gallons of ash was released into adjacent waterways and properties

9. Federal CCB Regulations • Regulatory Options • Non hazardous regulations (RCRA Subtitle D) • Hazardous Waste Regulations (RCRA Subtitle C) • Combined Options (Mix of C & D) • EPA Concerns • Enforceability/Permitting • Wet Handling (Impoundments)

10. CCB Regulations - Timeline • Proposed Rule sent to OMB October 15 • Proposed Rule – December 2009

11. CCB Regulations - Timeline • Proposed Rule sent to OMB October 15 • Proposed Rule - January 2010

12. CCB Regulations - Timeline • Proposed Rule sent to OMB October 15 • Proposed Rule - February 2010

13. CCB Regulations - Timeline • Proposed Rule sent to OMB October 15 • Proposed Rule - April 2010

14. CCB Regulations - Timeline • Proposed Rule sent to OMB October 15 • Proposed Rule - May 2010 • Final Rule 2011 • Implementation 2013 - 2015 (and beyond)

15. Federal CCB Regulations • Location Restrictions • Operating Criteria • Design Criteria (e.g., liners) • Groundwater Monitoring • Closure • Financial Assurance • Impoundment Integrity • Restrictions on “Wet Handling” (i.e., pond closure)

16. Subtitle D Regulations • Consistent with 1993 & 2000 Regulatory Determinations • Administered and Enforced by the States • EPA Direct Enforcement May be Limited • No Stigma/Barriers to CCB Beneficial Use

17. Subtitle C Regulations • Federal Hazardous Waste Rules Supplant State Controls • Direct Federal Enforceability • 2–5 Years for Rules to Become Effective • Disposal Capacity Issues • Adverse Impact on Beneficial Use

18. Impact of Subtitle C Regulation on CCB Management • Re-permitting of Existing Facilities • Corrective Action • Closure of Existing Facilities • Permitting of New Disposal Facilities • Disposal Capacity Shortfalls • De Minimis Releases • Spill Cleanup

19. Impact of Subtitle C Regulation on CCB Utilization • Qualified Uses Exempt from Subtitle C • Cement & Concrete, Wallboard Manufacture OK • Unconfined Uses, Land Application Likely Prohibited • Conditions Similar to Part 261.4(a)(23) • Storage to Prevent Release/Spill Response • Prohibition on Speculative Accumulation • Due Diligence to Ensure Safe Handling/Use • Ensuring Legitimate Use & Meeting Legitimacy Criteria

20. Impact of Subtitle C Regulation on CCB Use • Potential Environmental Liabilities • Increased Tort Exposure • Product Liability Concerns • Product Disposal Concerns (Off-Spec Materials, end-of-life Disposal) • Reduced Markets • Increased CERCLA Visibility

21. CCB Coalition • Ash Producers (Utilities and Industries), Ash Users—Individual Companies & Associations • Seeking Non-hazardous Waste Regulations • Seeking to Preserve and Expand CCB Beneficial Use www.uswag.org/ccbletters.htm

22. State Environmental Regulatory Agencies • ECOS • ASTSWMO • Arizona DEQ • Arkansas DEQ • Colorado DPHE • Florida DEP • Hawaii DLNR • Illinois EPA • Indiana DEM & DNR • Iowa DNR • Kansas DHE • Kentucky AG • Louisiana DEQ • Maryland DE • Michigan DEQ • Minnesota PCA • Missouri DNR • Mississippi DEQ • New Jersey DEP • North Dakota DH • Ohio EPA • Oklahoma DEQ • Pennsylvania DEP • South Carolina DHEC • South Dakota DENR • Tennessee DEC • Texas CEQ • Virginia DEQ • West Virginia DEP • Wisconsin DNR

23. Other State Agencies State Associations • NCSL • Conf of Mayors Public Utility Commissions • Indiana URC • Louisiana PSC • New Mexico PRC • North Carolina PUC • North Dakota PSC • Ohio PUC • Pennsylvania PUC State Highway/DOT • American Association of State Highway and Transportation Officials (AASHTO) • Arizona DOT • Colorado DOT • Florida DOT • Indiana DOT • Michigan DOT • Minnesota DOT • New Hampshire DOT • North Carolina DOT • Texas DOT • Utah DOT

24. Other Stakeholders Chambers of Commerce • US Chamber of Commerce • Michigan • North Carolina • South Carolina Technical/Educational Organizations • ACAA • ACI CCB End Users • American Concrete Paving Assn • American Society Concrete Contractors • Gypsum Assn • National Ready Mix Concrete Assn • National Assn of Manufacturers Labor • UJAE

25. State Officials Governors National Governors Association Western Governors Association West Virginia Governor Manchin North Dakota Governor Hoeven State Executive Officials Missouri Lieutenant Governor Kinder Kentucky Attorney General Conway Municipal Governments Colorado Springs Grand Island, NE Hastings, NE Springfield, IL Wyandotte, MI

26. Congressional Letters Conrad Senate Letter (25) Bayh Senate Letter (27) Senators Burris, Casey, Kyl & Roberts Holden House Letter (74) Holden Coal Caucus letter (121) Reps Bonner, Bright, Leutkemeyer, Platts, Schock, Sires, Skelton and Teague

27. CCB Regulations – Legislative Option • Hearings Senate EPW; House Natural Resources, T&I and Energy & Commerce • Rep. Shuler Drafting Legislation

28. CCB Regulations – Next Steps • Round 2 - Comments on Proposed Rule • Round 3 – Advocacy on Final Rule • Round 4 – Litigation Likely

29. Jim Roewer 202/508-5645 jim.roewer@uswag.org Questions?