                          Regulatory Impact Analysis




Internet Posting and Confidentiality Determinations for Hazardous Waste Export and Import Documents Proposed Rule
                                       






                  U.S. Environmental Protection Agency (EPA)
              Office of Resource Conservation and Recovery (ORCR)
                 1200 Pennsylvania Avenue NW (Mailstop 5305P)
                           Washington, DC 20460 USA

                                  August 2016








Acknowledgements
The Agency recognizes Industrial Economics, Inc. (IEc), for the overall organization and development of this report. Joseph Krahe, Laura Coughlan, Lia Yohannes, and Chris McMinimy of the U.S. Environmental Protection Agency provided guidance and review.



Table of Contents 
ACKNOWLEDGMENTS  
EXECUTIVE SUMMARY   

CHAPTER 1  |  INTRODUCTION
1.1  Overview  1-1
1.2  Background and Need for Regulatory Action  1-1
1.3  Summary of the Rule  1-2
	1.3.1  Changes to 40 CFR Part 262, Subpart H  1-2
1.4  Organization of the Report  1-2

CHAPTER 2  |  POTENTIALLY AFFECTED ENTITIES
2.1  Introduction  2-1
2,2  Baseline Level of Hazardous Waste Foreign Trade Activity  2-1
	2.2.1  Estimating the Number and Volume of Shipments of Hazardous Waste  2-1
2.3  Economic Profile of Potentially Affected Entities  2-7
	2.3.1  Data Collection Methods  2-7
	2.3.2  Industry Characteristics of Exporters  2-9
	2.3.3  Industry Characteristics of Importers  2-10

CHAPTER 3  |  ASSESSMENT OF COSTS AND COST SAVINGS
3.1  Introduction  3-1
3.2  Universe of Entities Affected by the Rule  3-1
3.3  Cost Methodology  3-2
	3.3.1  General Assumptions  3-2
	3.3.2  Methods for Assessing Costs of Rule Provisions  3-4
3.4  Results  3-7
3.5  Sensitivity Analysis  3-9
3.6  Additional Analytic Limitations  3-10

CHAPTER 4  |  ASSESSMENT OF BENEFITS
4.1  Discussion of Non-Monetized Benefits  4-1
CHAPTER 5  |  OTHER REQUIRED ANALYSES
5.1  Regulatory Planning and Review  5-1
5.2  Regulatory Flexibility  5-2
5.3  Employment Impact Analysis  5-12
5.4  Unfunded Mandates Analysis  5-12
5.5  Federalism Analysis  5-13
5.6  Tribal Government Analysis  5-13
5.7  Environmental Justice Analysis  5-14
5.8  Children's Health Protection Analysis  5-14
5.9  Energy Impact Analysis  5-14
5.10  Joint Impacts of Rules  5-15

CHAPTER 6  |  JOINT IMPACTS OF RULES

APPENDIX A  |  COST IMPACTS BY YEAR


EXECUTIVE SUMMARY
This document presents the U.S. Environmental Protection Agency's (EPA) analysis of the costs, benefits, and economic impacts of the proposed Internet Posting and Confidentiality Determinations for Hazardous Waste Export and Import Documents Proposed Rule ("Website rule"). This proposed rule is being proposed in conjunction with the finalization of the Hazardous Waste Import-Export Revisions rule ("Revisions rule").  Together, these two rules amend certain existing regulations promulgated under the hazardous waste provisions of the Resource Conservation and Recovery Act (RCRA) regarding the export and import of hazardous wastes from and into the United States.  The Website rule supplements the Revisions rule by requiring the uploading of confirmations of receipt and recovery of hazardous waste on a publically available website.
Background and Need for Regulatory Action

The companion Export Import Revisions final rule is the culmination of work between the US, the Organization for Economic Cooperation and Development (OECD), and several non-governmental organizations (NGOs) to strengthen and harmonize the various controls on transboundary movements of hazardous wastes, as well as the controls on some non-hazardous wastes such as spent lead-acid batteries (SLABs).
One of the primary aims of the Revisions rule is to improve the reporting of transboundary shipments of hazardous waste. Improved reporting will lead to better data availability and quality, which will help enhance existing environmental and occupational health controls associated with the transboundary movement, disposal, and recovery of hazardous and non-hazardous wastes. The rule improves existing reporting requirements by mandating that all reporting be completed and sent to EPA electronically. EPA will build an IT system to facilitate this electronic reporting.
Due to the uncertainty associated with the development of this electronic reporting system, EPA is proposing under this Website rule to mandate posting the confirmations of receipt and recovery submitted per exporter and importer shipment to a publicly available website until the electronic reporting system is available. This proposed mandate will provide transparency during the period between the implementation of the Export-Import Rule and the complete implementation of the electronic system. 
Summary of the proposed Rule
Changes to 40 CFR Part 262, Subpart H include the following:
 Exporters and importers must post the confirmations of receipt and recovery to a publicly available website during the period between the implementation of the Export-Import Revisions Rule and the complete implementation of the electronic reporting system.  The complete implementation of the electronic reporting system is anticipated between 2018 and 2022.  
 Exporters and importers must develop a publicly accessible website to post the confirmations of receipt and recovery if a publicly available website is not available. 
Baseline Level of Hazardous Waste Foreign Trade Activity
This RIA relies on a baseline (i.e., pre-rule) characterization of U.S. foreign trade and the number of entities involved in the export and import of hazardous waste, including SLABs. EPA's export annual reports and import RCRA manifests are key data sources for this characterization. Export annual reports provide information on hazardous waste exports, including the annual number of shipments and volume, and the number of U.S. entities exporting hazardous waste. Import manifests provide information on the volume of manifested hazardous waste imports received by U.S. facilities and describe the number of entities involved.
EPA annual export reports showed that approximately 49,800 shipments and approximately one million tons of hazardous waste were exported in 2014. Of this total, approximately 94 percent of exports went to Canada and Mexico and no export shipments went to non-OECD countries. SLABs accounted for approximately two-thirds of all hazardous waste exports, with approximately three quarters of all SLABs shipped to Mexico; approximately 566,000 tons of SLABs were exported in 2014, of which 442,000 tons went to Mexico.
In 2014, there were 395 U.S. exporters of hazardous waste. The majority of these entities exported waste to just one foreign country, while twelve exporters shipped hazardous waste to multiple countries. Eight countries received hazardous waste from U.S. exporters. Approximately 55 percent of exporters (219 of 395 exporters) shipped SLABs abroad. The majority of these exporters shipped SLABs to Canada, and four shipped SLABs to multiple countries. Five SLAB exporters also exported other hazardous wastes.
EPA also tracks imports of hazardous waste to the United States; however, less information is captured on the types and overall quantity of waste for imports than for exports. Specifically, the data are limited to the total number of RCRA import manifests and the number of wastes listed per manifest. Imports of SLABs and universal wastes (e.g., batteries, pesticides, mercury-containing equipment, and bulbs (lamps)) are domestically exempted from RCRA manifest requirements, so data on these imports are not reflected in this analysis. The vast majority of manifested hazardous waste imports are shipped from Canada and Mexico. Canada accounted for more than 85 percent of manifested import shipments of hazardous waste in 2014, Mexico accounted for approximately seven percent of import shipments, and approximately two percent of manifested hazardous waste imports were shipped from non-OECD countries.
EPA import manifest data show that there were 57 importers in the United States in 2014. Of these, 70 percent received shipments from Canada, 28 percent received shipments from Mexico, and less than 10 percent received shipments from non-OECD countries. Three importers received shipments from more than one country in 2014.
Assessment of Costs and Cost Savings
To assess the costs of the proposed rule, this RIA estimates the unit costs for each provision of the rule and applies these values to the number of affected U.S. entities. The analysis employs a "model entity" approach to estimate the costs associated with the rule, applying average costs by entity type (i.e., exporter or importer).  For this proposed rule, costs are driven by the amount of staff time required of affected entities to: read the rule; post the confirmation of receipts and recovery for each shipment to a publicly available website; and for those entities without a website, developing one.  Exhibit ES-1 reports the total number of U.S. entities and shipments of hazardous waste potentially affected by the rule. While two additional classes, transporters and recognized traders, are included in the Revisions rule, these entity types are not included in the cost analysis for the Website rule as they will not incur any incremental costs. Therefore, costs for these entities are not reported in this RIA. 
EXHIBIT ES-1.NUMBER OF U.S. ENTITIES AND THEIR SHIPMENTS
              Entity type 
(Country of destination / origin)[1,2]
                           total number of Entities
                       total annual number of shipments
                    Average Number of Shipments Per Entity
Exporters (Canada)
                                                                            348
                                                                         23,722
                                                                           68.2
Exporters (Mexico)
                                                                             21
                                                                         24,069
                                                                        1,146.0
Exporters (Non-OECD)
                                                                              0
                                                                              0
                                                                            0.0
Exporters (OECD)
                                                                             34
                                                                          1,986
                                                                           58.4
Importers (Canada)
                                                                             40
                                                                          3,176
                                                                           79.4
Importers (Mexico)
                                                                             16
                                                                            265
                                                                           16.6
Importers (Non-OECD)
                                                                              3
                                                                             84
                                                                           28.0
Importers (OECD)
                                                                              2
                                                                             74
                                                                           37.0
Notes:
 While Canada and Mexico are OECD countries, under existing regulations there are different requirements for the foreign trade of hazardous waste with these countries compared with other OECD countries. Canada and Mexico currently have bilateral waste agreements with the United States separate from the OECD multilateral waste agreement, and thus will be newly subject to various provisions of the rule that currently apply to other OECD member countries. Therefore, this RIA estimates impacts to exporters and importers separately for trade with Canada and Mexico versus other OECD countries.
 Several exporters and importers trade with more than one country. Therefore, there are 395 unique exporters (rather than 403 listed above) and 57 unique importers (rather than 61 listed above). However, this exhibit parses out the exporters that ship to more than one country into each of their respective destinations to accurately reflect the average number of shipments sent to each destination. Depending on the context, the remainder of this analysis may similarly parse out exporters that ship to more than one country separately to accurately estimate costs associated with shipping to alternative destinations. In other words, this analysis sometimes uses the higher entity count, where appropriate.
Source:
EPA, Export Annual Reports and Import Manifests for 2014. 

EXHIBIT ES-2 and ES-3 report the total costs of the proposed rule by provision, reported on an annualized basis using a seven percent discount rate. The costs of the proposed rule are estimated over a five-year time horizon to align with the potential interim period during which the electronic reporting system described in EPA's Export-Import Revisions final rule is under development. Due to the uncertainty associated with the development of the electronic reporting system, costs are presented for full implementation in 2018 and 2022.  The most significant costs to industry under the rule are associated with posting the confirmation of receipts and recovery to publicly available websites.  Cost savings were not quantified for the proposed rule.  Limited cost savings for the Agency are expected, however, because some exporters and importers will no longer submit physical copies of the documents to EPA; limited cost savings for industry may also occur from postage savings and time spent submitting physical documentation to EPA.  
Exhibit ES-2.	Total Annualized Costs of the Proposed Rule by Provision, using a Seven percent discount rate ($2015)  -  2018 electronic System Implementation Year 
                                    Row
[A]
                                 Provision
[B]
                         Total Annualized Costs[1]
[C]
                     Total Annualized Cost Savings[1]
[D]
                               Net CostS
[E=C-D]
                                       1
Reading rule
                                                                       $11,077 
                                                                            $0 
                                                                       $11,077 
                                       2
Posting confirmations of receipts and recovery to website
                                                                       $69,285 
                                                                            $0 
                                                                       $69,285 
                                       3
Website development
                                                                       $18,947 
                                                                            $0 
                                                                       $18,947 
                                       4
TOTAL[2]
                                                                       $99,309 
                                                                            $0 
                                                                       $99,309 
Notes:
 Costs and cost savings are annualized over a 5-year period.
 Totals may not sum due to rounding. 

Exhibit ES-3.	Total Annualized Costs of the Proposed Rule by Provision ($2015) using a SEVEN Percent discount rate  -  2022 electronic System Implementation Year
                                    Row
[A]
                                 Provision
[B]
                         Total Annualized Costs[1]
[C]
                     Total Annualized Cost Savings[1]
[D]
                               Net CostS
[E=C-D]
                                       1
Reading rule
                                                                       $11,077 
                                                                            $0 
                                                                       $11,077 
                                       2
Posting confirmations of receipts and recovery to website
                                                                      $303,968 
                                                                            $0 
                                                                      $303,968 
                                       3
Website development
                                                                       $18,947 
                                                                            $0 
                                                                       $18,947 
                                       4
TOTAL[2]
                                                                      $333,993 
                                                                            $0 
                                                                      $333,993 
Notes:
 Costs and cost savings are annualized over a 5-year period.
 Totals may not sum due to rounding. 

Exhibit ES-4 and ES-5 report the distributional costs of the rule across the different entity types. Due to the uncertainty associated with the development of the electronic reporting system, costs are presented for full implementation in 2018 and 2022. As shown in the exhibit, the net cost impacts of the rule are the greatest for U.S. exporters of hazardous waste. The net cost impacts for U.S. importers are generally less than for exporters. There are no estimated cost impacts for transporters and recognized traders because these entities do not submit confirmation of receipt and recovery documents. 

Exhibit ES-4.	Total Annualized Costs of the Proposed Rule by entity type, using a Seven percent discount rate ($2015)  -  2018 Electronic system implementation year 
                                    Row
[A]
                                Entity Type
[B]
                         Total Number of Entities
[C]
                         Total Annualized Costs[1]
[D]
                     Total Annualized Cost Savings[1]
[E]
                               Net Costs
[F=D-E]
                                       1
Exporters (Canada)
                                                                            348
                                                                       $52,131 
                                                                            $0 
                                                                       $52,131 
                                       2
Exporters (Mexico)
                                                                             21
                                                                       $32,514 
                                                                            $0 
                                                                       $32,514 
                                       3
Exporters (Non-OECD)
                                                                              0
                                                                            $0 
                                                                            $0 
                                                                            $0 
                                       4
Exporters (OECD)
                                                                             34
                                                                        $4,602 
                                                                            $0 
                                                                        $4,602 
                                       5
Importers (Canada)
                                                                             40
                                                                        $7,704 
                                                                            $0 
                                                                        $7,704 
                                       6
Importers (Mexico)
                                                                             16
                                                                        $1,761 
                                                                            $0 
                                                                        $1,761 
                                       7
Importers (Non-OECD)
                                                                              3
                                                                          $351 
                                                                            $0 
                                                                          $351 
                                       8
Importers (OECD)
                                                                              2
                                                                          $245 
                                                                            $0 
                                                                          $245 
                                       9
TOTAL[2]
                                                                            N/A
                                                                       $99,309 
                                                                            $0 
                                                                       $99,309 
Notes:
 Costs and cost savings are annualized over a 5-year period.
 Totals may not sum due to rounding.

Exhibit ES-5.	Total Annualized Costs of the Proposed Rule by entity type ($2015) using a seven percent discount rate  -  2022 Electronic System Implementation Year 
                                    Row
[A]
                                Entity Type
[B]
                         Total Number of Entities
[C]
                         Total Annualized Costs[1]
[D]
                     Total Annualized Cost Savings[1]
[E]
                               Net Costs
[F=D-E]
                                       1
Exporters (Canada)
                                                                            348
                                                                      $156,432 
                                                                            $0 
                                                                      $156,432 
                                       2
Exporters (Mexico)
                                                                             21
                                                                      $138,340 
                                                                            $0 
                                                                      $138,340 
                                       3
Exporters (Non-OECD)
                                                                              0
                                                                            $0 
                                                                            $0 
                                                                            $0 
                                       4
Exporters (OECD)
                                                                             34
                                                                       $13,334 
                                                                            $0 
                                                                       $13,334 
                                       5
Importers (Canada)
                                                                             40
                                                                       $21,668 
                                                                            $0 
                                                                       $21,668 
                                       6
Importers (Mexico)
                                                                             16
                                                                        $2,926 
                                                                            $0 
                                                                        $2,926 
                                       7
Importers (Non-OECD)
                                                                              3
                                                                          $721 
                                                                            $0 
                                                                          $721 
                                       8
Importers (OECD)
                                                                              2
                                                                          $571 
                                                                            $0 
                                                                          $571 
                                       9
TOTAL[2]
                                                                            N/A
                                                                      $333,993 
                                                                            $0 
                                                                      $333,993 
Notes:
 Costs and cost savings are annualized over a 5-year period.
 Totals may not sum due to rounding.
Assessment of Non-Monetized Benefits
Qualitative benefits of the proposed rule include:
Improved public awareness and transparency of shipment activities; and
Reduction of risks associated with treatment and disposal of hazardous wastes. 
Other Required Analyses
As required by applicable statutes and executive orders, this RIA assesses other required analyses and regulatory concerns associated with the rule in Chapter 5. This RIA finds no significant adverse impacts under the following supplemental analyses:
Regulatory planning and review,
Regulatory flexibility,
Unfunded mandates, 
Federalism,
Tribal governments,
Environmental justice, 
Children's health protection,
Energy impacts,
Employment impacts, and
Joint impacts of Export-Import rules.
CHAPTER 1  |  Introduction
1.1  Overview
This document presents the U.S. Environmental Protection Agency's (EPA) analysis of the costs, benefits, and economic impacts of the proposed Internet Posting and Confidentiality Determinations for Hazardous Waste Export and Import Documents Proposed Rule ("Website rule"). This rule is being proposed in conjunction with the finalization of the Hazardous Waste Import-Export Revisions rule ("Revisions rule").  Together, these two rules amend certain existing regulations promulgated under the hazardous waste provisions of the Resource Conservation and Recovery Act (RCRA) regarding the export and import of hazardous wastes from and into the United States.  The Website rule supplements the Revisions rule by requiring the uploading of confirmations of receipt and recovery of hazardous waste on a publically available website.
1.2  Background and Need for Regulatory Action
EPA designates certain secondary materials as hazardous wastes, noting that they can pose threats to human health and the environment. Under RCRA, EPA regulates the management, transportation, and ultimate disposal of those wastes. Tracking where wastes are generated and moved can help assure that wastes are not misplaced, lost, or unaccounted for.
The companion Export Import Revisions final rule is the culmination of work between the US, the Organization for Economic Cooperation and Development (OECD), and several non-governmental organizations (NGOs) to strengthen and harmonize the various controls on transboundary movements of hazardous wastes, as well as the controls on some non-hazardous wastes such as spent lead-acid batteries (SLABs). A detailed account of the evolution of these controls can be found in the first chapter of the Export Import Revisions final rule RIA.
One of the primary aims of the Revisions rule is to improve the reporting of transboundary shipments of hazardous waste. Improved reporting will lead to better data availability and quality, which will help enhance existing environmental and occupational health controls associated with the transboundary movement, disposal, and recovery of hazardous and non-hazardous wastes. The rule improves existing reporting requirements by mandating that all reporting be completed and sent to EPA electronically. EPA will build an IT system to facilitate this electronic reporting.
Under this supplemental Website rule, due to the uncertainty associated with the development of the electronic reporting system, EPA is proposing to mandate posting the confirmations of receipt and recovery submitted per exporter and importer shipment to a publicly available website until the electronic reporting system is available. In addition, exporters and importers must develop a publicly accessible website to post the confirmations of receipt and recovery if a publicly available website is not available. This proposed mandate will provide transparency during the period between the implementation of the Export-Import Revisions Rule and the complete implementation of the electronic system. 
On January 18, 2011, President Obama issued Executive Order 13563, which directed all federal agencies to perform periodic retrospective reviews of existing regulations to determine whether any should be modified, streamlined, expanded, or repealed. EPA made its preliminary plan available for public review and comment during the spring of 2011 and released the final version of the plan in August 2011. Though EPA and its partners have made great progress in protecting the environment, the Agency is committed to continual improvement. EPA has a long history of thoughtfully examining its existing regulations to make sure they are effectively and efficiently meeting the needs of the American people. Both statutory and judicial obligations have compelled some of these reviews. Others arise from independent EPA decisions to improve upon existing regulations. Just as EPA intends to apply the principles and directives of Executive Order 13563 to the priority actions listed in the plan, EPA intends to likewise apply the Executive Order's principles and directives to the regulatory reviews that appear in the Regulatory Agenda.
The pertinent details of the proposed rule are outlined below. For further information regarding the historical context and details of this rulemaking, please refer to the Preamble to the rule.
1.3  Summary of the Rule 
This section describes regulatory changes or amendments engendered by the rule.
1.3.1  CHANGES TO 40 CFR PART 262, SUBPART H
Changes to 40 CFR Part 262, Subpart H include the following:
   (1)	Exporters and importers must post the confirmations of receipt and recovery to a publicly available website during the period between the implementation of the Export-Import Revisions Rule and the complete implementation of the electronic reporting system.  
       The proposed rule will require exporters and importers to post the confirmations of receipt and recovery to a publicly available website during the period between the implementation of the Export-Import Rule and the implementation of the electronic reporting system. Transporters and recognized traders will not be impacted by this change.
   (2)	Exporters and importers must develop a publicly available website if a website is not available.
       The proposed rule will require all exporters and importers that do not have a publically available website to develop a website to post the confirmations of receipts and recovery during the period between the implementation of the Export-Import Rule and complete implementation of the electronic reporting system.  
1.4  Organization of the Report
The data, methods, and results of this analysis are presented in the following chapters:
Chapter 2: Potentially Affected Entities. This chapter provides an overview of the U.S. entities that are likely to be affected by EPA's proposed Hazardous Waste Export-Import Website Rule.  
Chapter 3: Assessment of Costs and Cost Savings. Chapter 3 includes EPA's assessment of the rule's cost impacts. This chapter: (1) identifies portions of the potentially regulated universe affected by individual rule provisions; (2) characterizes the regulatory baseline; (3) describes the data and methods employed for the assessment of the rule's cost impacts, and (4) presents the results of the cost analysis. 
Chapter 4: Assessment of Benefits. After presenting the rule's cost impacts, the focus shifts to EPA's assessment of the rule's benefits in Chapter 4. 
Chapter 5: Other Required Analyses. This chapter assesses distributional and other impacts of the rule, including impacts to small entities, environmental justice implications, children's health, impacts to Tribal Governments, energy use and distribution effects resulting from the rule, and joint impacts with other rules.
Chapter 6: Joint Impacts of Rules. To illustrate the cumulative economic effects of the proposed Website rule along with those of the final Revisions rule, this chapter provides the sum total of impacts for both rules.
 
CHAPTER 2  |  Potentially Affected Entities
2.1  Introduction
This chapter provides an overview of U.S. entities that are likely to be affected by EPA's proposed Internet Posting and Confidentiality Determinations for Hazardous Waste Export and Import Documents Rule. The rule may affect a number of exporters and importers of hazardous waste (including SLABs) that span a range of industries. The information presented here provides context for the RIA regarding the costs and benefits associated with the rulemaking. First, this chapter provides a summary of the volume of foreign trade in hazardous waste and the number of importers and exporters potentially affected by the rule. Then, it presents data sources which show that EPA's annual foreign trade reports likely understate the number of entities and countries involved in the trade of hazardous waste. Finally, it provides a profile of the types of entities that may be affected by the rule. 
2.2  Baseline Level of Hazardous Waste Foreign Trade Activity
This section describes the U.S. foreign trade and the number of entities involved in the export and import of hazardous waste, including SLABs. First it summarizes the number and volume of shipments of hazardous waste by trade partner and year. Then it discusses the number of U.S. entities involved in the foreign trade of hazardous waste. 
2.2.1  Estimating the Number and Volume oF Shipments of Hazardous Waste
This RIA relies on the data from EPA's export annual reports and import manifests to characterize how entities engaged in the foreign trade in hazardous waste would be affected under the proposed rule. Specifically, this RIA  reports information on hazardous waste exports and the number of U.S. entities exporting hazardous waste, and then provides information on the volume of hazardous waste imports received by U.S. facilities and describes the number of entities involved. 
Volume of Exports
EPA tracks shipments of hazardous waste through export annual reports submitted by the regulated trade community. Exporters must file an annual report with EPA on March 1 of each year, summarizing their shipments from the previous calendar year. EPA reviews these annual reports for accuracy, and then inputs them into a database. This database provides detailed information from the export annual report, including an EPA ID number (if available), address for each exporter, and a description of all wastes shipped, including an indication of whether the shipment contained SLABs, other solid wastes, or liquid hazardous wastes. 
This analysis relies on EPA's 2014 database to estimate the baseline scenario, because it includes the most recent calendar year for which EPA manually input records with a high level of detail on the contents of hazardous waste shipments. 
According to EPA export data, approximately 49,800 shipments and one million tons of hazardous waste were exported in 2014. Of this total, approximately 94 percent of exports in 2014 went to Canada and Mexico. The remainder of export shipments went to OECD countries, and no shipments went to non-OECD countries. SLABs accounted for roughly two-thirds of all hazardous waste exports. Approximately 566,000 tons of SLABs were exported in 2014, including approximately 442,000 tons to Mexico. Exhibits 2-1 summarizes the total quantity of hazardous waste exports reported to EPA in 2014.
Exhibit 2-1.	U.S. Exports of Hazardous Waste by Type of Waste and Country of Destination (2014)
                                    Country
                                     SLABs
                             Other Hazardous waste
                                  Total waste
                                       
                                 No. Shipments
                              amount
(U.S. tons)
                                 no. Shipments
                               amount
(u.s.tons)
                                 No. Shipments
                              amount
(U.S. tons)
Mexico
                                    20,488 
                                   441,608 
                                    3,581 
                                    93,078 
                                    24,069 
                                   534,686 
Canada
                                    4,995 
                                    85,884 
                                    18,727 
                                   304,214 
                                    23,722 
                                   390,098 
Korea
                                    1,139 
                                    37,544 
                                     581 
                                    18,115 
                                    1,720 
                                    55,658 
Spain
                                      50 
                                    1,254 
                                      --
                                      -- 
                                      50 
                                    1,254 
Germany
                                      1 
                                      17 
                                     153 
                                    1,504 
                                     154 
                                    1,521 
France
                                      6 
                                     153 
                                      -- 
                                      -- 
                                      6 
                                     153 
Belgium
                                      -- 
                                      -- 
                                      54 
                                     831 
                                      54 
                                     831 
United Kingdom
                                      -- 
                                      -- 
                                      2 
                                      10 
                                      2 
                                      10 
TOTAL
                                    26,679 
                                   566,460 
                                    23,098 
                                   417,752 
                                    49,777 
                                   984,212 
Notes:
Seven reports did not indicate the number of shipments; this analysis assumes one shipment per report if the number of shipments is not indicated. One report did not indicate reporting units for total waste shipped, and three reports did not provide export destination information.
For this analysis, EPA conservatively included all available export report data, including data that could not be verified beyond a reasonable doubt to be incomplete or duplicate records. Less than one percent of the shipments and amounts reported here may be due to incomplete or duplicate reporting. 
Totals may not sum due to rounding.
Source: U.S. EPA Export Annual Reports, 2014.
Number of Exporters
EPA's database of annual reports also provides information on the number of entities exporting hazardous waste. As described above, the 2014 data provide facility-level information, including the name, address, and EPA ID number. This RIA relies on the 2014 export annual reports to estimate the number of hazardous waste exporters. In 2014, there were 395 U.S. exporters of hazardous waste. The majority of these entities exported waste to just one foreign country, while twelve exporters shipped hazardous waste to multiple countries. Approximately 55 percent (219 of 395 exporters, see notes in Exhibit 2-2) shipped SLABs. The majority of these exporters shipped SLABs to Canada, while four shipped SLABs to multiple countries. Five SLAB exporters also exported other hazardous wastes. Eight countries received hazardous waste from U.S. exporters. Exhibit 2-2 summarizes the number of exporters and the average number of shipments by country of destination.
EXHIBIT 2-2.	Number of U.S. Exporters of Hazardous Waste and Average Number of Shipments by Destination (2014)
                                Destination[1]
                           Number of U.S. Exporters
                         number of U.S. SLAB exporters
                   Average Number of Shipments Per Exporter
Canada[2][,3,4,6]
                                                                            348
                                                                            198
                                                                             68
Mexico[2][,3,4]
                                                                             21
                                                                              9
                                                                          1,146
OECD Countries
                                                                             34
                                                                             18
                                                                             58
       Belgium[5]
                                                                             3 
                                                                              0
                                                                            18 
       United Kingdom
                                                                             1 
                                                                              0
                                                                             2 
       France[8]
                                                                             1 
                                                                              1
                                                                             6 
       Germany[5,6,7]
                                                                             6 
                                                                              2
                                                                           26  
       Korea[3]
                                                                            26 
                                                                             15
                                                                            66 
       Spain[8]
                                                                             1 
                                                                              1
                                                                            50 
Non-OECD Countries
                                                                              0
                                                                              0
                                                                              0
TOTAL
                                                                            403
                                                                            225
                                                                            126
Notes:
 Eight exporters shipped waste to two country groups (defined as Canada, Mexico, OECD Countries (other than Canada and Mexico), and non-OECD countries). Therefore, there are 395 unique exporters, rather than 403 listed above. Likewise, there are 219 unique SLAB exporters, rather than 225 listed above. However, this exhibit parses out the exporters that ship to more than one country group (Mexico, Canada, OECD, Non-OECD) into each of their respective destinations to accurately reflect the average number of shipments sent to each destination. Depending on the context, the remainder of this document may similarly parse out exporters that ship to more than one country separately to accurately estimate costs associated with shipping to alternative destinations. In other words, this analysis sometimes uses the 403 count of exporters and not the 395 unique exporters where appropriate.
 While Canada and Mexico are OECD countries, under existing regulations there are different requirements for the foreign trade of hazardous waste with these countries compared with other OECD countries. Therefore, this RIA estimates impacts to exporters (and importers) separately for trade with Canada and Mexico versus other OECD countries.
 Four exporters sent shipments to both Canada and Korea
 Two exporters sent shipments to Canada and Mexico. One of these exporters sent SLABs to both countries. 
 Two exporters sent shipments to Belgium and Germany
 Two exporters sent shipments to Canada and Germany
 One exporter sent shipments to England and Germany
 One exporter sent shipments to France and Spain
Source: U.S. EPA Export Annual Reports, 2014.

Exhibit 2-3 shows where U.S. exporters of hazardous waste are located across the country. The states with the largest number of exporters are New York, Michigan, Ohio, New Jersey, Pennsylvania, Massachusetts, and California. As shown in the exhibit, a large number of exporters are located in states along, or nearby, the border with Canada or Mexico. 
EXHIBIT 2-3.	U.S. Exporters of Hazardous Waste by State




















Source: U.S. EPA Export Annual Reports, 2014.
Volume of Imports
EPA also tracks imports of hazardous waste to the United States, but less information is captured on the types and overall quantity of waste than for EPA's export annual reports. Specifically, the data are limited to the total number of RCRA import manifests and the number of wastes listed per manifest. Import manifest data are available for 2014. Shipments of SLABs and universal wastes are domestically exempted from RCRA manifest requirements, so data on these imports could not be reflected in this analysis. The vast majority of manifested hazardous waste imports are shipped from Canada and Mexico. Canada accounted for more than 85 percent of manifested import shipments of hazardous waste in 2014, while Mexico accounted for approximately seven percent. About two percent of manifested hazardous waste imports were shipped from non-OECD countries. Exhibits 2-4 and 2-5 report the number of manifested import shipments of hazardous waste to the United States in 2014. As shown in the exhibits, the vast majority of shipments included only one waste listed per manifest.


Exhibit 2-4.	U.S. Imports of Hazardous Waste by Country of Origin in 2014
                               Country of origin
                  Total Number of Manifested Import Shipments
                   Avg. Number of Wastes Listed Per Manifest
                   Max Number of Wastes Listed Per Manifest
Canada
                                                                         3,176 
                                                                          1.03 
                                                                             4 
Mexico
                                                                           265 
                                                                          1.97 
                                                                            16 
OECD[1]
                                                                            74 
                                                                          1.00 
                                                                             2 
      Germany
                                                                            11 
                                                                          1.00 
                                                                             2 
      Japan
                                                                            63 
                                                                          1.00 
                                                                             1 
Non-OECD[2]
                                                                            84 
                                                                          1.00 
                                                                             1 
      Bahamas
                                                                             7 
                                                                          1.00 
                                                                             1 
      Malaysia
                                                                             6 
                                                                          1.00 
                                                                             1 
      Philippines
                                                                             60
                                                                           1.00
                                                                              1
      Syria
                                                                            11 
                                                                          1.00 
                                                                             1 
TOTAL[1]
                                                                          3,599
                                                                            N/A
                                                                            N/A
Notes:
1. OECD subtotal: sum of Germany and Japan.
2. Non-OECD subtotal: sum of Bahamas, Malaysia, Philippines and Syria.
3. Grand total: sum of Canada, Mexico, OECD total and Non-OECD total.
Source: U.S. EPA RCRA manifests for import shipments, 2014.

Number of Importers
Exhibit 2-5 summarizes the number of U.S. importers of hazardous waste and the average number of shipments per importer by country of origin. EPA import manifest data show that there were 57 importers in the United States in 2014 (see Notes in Exhibit 2-5). Of these, 70 percent received shipments from Canada, 28 percent received shipments from Mexico, and less than 10 percent received shipments from non-OECD countries. Three importers received shipments from more than one country in 2014. 
EXHIBIT 2-5.	Number of U.S. Importers of Hazardous Waste and Average Number of Shipments by Country of Origin (2014)
                             Country of Origin[1]
                              Number of Importers
                   Average Number of Shipments Per Importer
Canada[2][,3,4,5]
                                                                             40
                                                                             79
Mexico[2][,3,5]
                                                                             16
                                                                             17
OECD Countries
                                                                              2
                                                                             37
   Germany[2]
                                                                              1
                                                                             11
   Japan[5]
                                                                              1
                                                                             63
Non-OECD Countries[5]
                                                                              3
                                                                             28
   Bahamas
                                                                              1
                                                                              7
   Malaysia[5]
                                                                              1
                                                                              6
   Syria[4]
                                                                              1
                                                                             11
   Philippines[5]
                                                                              1
                                                                             60
TOTAL[6]
                                                                             61
                                                                             59
Notes:
 Three importers received waste from two or more countries as described below. Therefore, there are 57 unique importers, rather than 61 listed above. However, this exhibit parses out the importers that receive from more than one country into each of their respective origins to accurately reflect the average number of shipments sent to each importer. Depending on the context, the remainder of this document may similarly parse out importers that receive from more than one country separately to accurately estimate costs associated with receiving from alternative destinations. That is, this RIA often uses the 65 count of importers and not the 57 unique importers.
 While Canada and Mexico are OECD countries, under existing regulations there are different requirements for the foreign trade of hazardous waste with these countries compared with other OECD countries. Therefore, this RIA estimates impacts to importers (and exporters) separately for trade with Canada and Mexico versus other OECD countries.
 A single importer received shipments from Canada, Mexico, and Germany.
 A single importer received shipments from Canada and Syria (non-OECD).
 A single importer received shipments from Mexico, Japan (OECD), Malaysia (non-OECD), and the Philippines (non-OECD). As a result of this, three importers are listed under "Non-OECD Countries" although the subtotals underneath add up to four. 
 A single exporter received waste, but EPA was not able to determine the sending country on the manifest. 
Source: U.S. EPA RCRA manifests for import shipments, 2014.

Exhibit 2-6 shows the geographic distribution of U.S. importers of hazardous waste. The states with the largest number of importers are Ohio, Texas, Illinois, and Michigan. These four states account for nearly half of all U.S. importers. 
EXHIBIT 2-6.	U.S. Importers of Hazardous Waste by State




















Source: U.S. EPA RCRA manifests for import shipments, 2014.
2.3  Economic Profile of Potentially Affected Entities
This section provides an economic profile of entities likely to be affected by the rule. Financial data on the potentially affected universe are limited because (1) firms exporting and importing hazardous waste, including SLABs, represent a small percentage of all firms in their respective industries (thus, industry-wide data may not be generally representative of these particular firms) and (2) many of these firms are privately-held, so financial data are not generally available. However, to the extent possible, this section describes the industries and the relative size of companies involved in the foreign trade of hazardous waste. First, this section describes the data collection methods used for this RIA. Then it provides a profile of potentially affected entities. 
2.3.1  Data Collection Methods
The number of entities involved in the foreign trade of hazardous waste was identified using EPA's annual export/import reports for 2014. As a primary source of financial data for exporters and importers in the regulated universe, this RIA relies on information from Dun & Bradstreet (D&B), a leading private source of commercial information. D&B collects financial, industry, and credit risk data from over 30,000 sources and maintains a database containing records for more than 200 million companies. D&B also validates these data through proprietary quality assurance software. Specifically, these data include the primary NAICS code, annual revenues, and number of employees for each company. These financial data were matched to exporters and importers through the parent company identified by D&B (or, if the company was foreign-owned, the largest U.S. subsidiary). D&B does not have information for all companies because private companies may not self-report their financial information to D&B. Therefore, data pulls from D&B were also supplemented with a review of three other online commercial intelligence databases: Manta.com, Hoovers.com, and Insideview.com. Each of these sources gathers and organizes data on companies in order to facilitate market research and business transactions.  
Another primary data source, the U.S. Economic Census, provides aggregate financial data for all firms across a wide range of industries based on their NAICS code. However, these data likely overstate the number of exporters and importers of hazardous waste because these firms represent a small percentage of their respective industries. Furthermore, the average revenues for the industry as a whole may not be representative of firms exporting and importing hazardous waste. Thus, it may not be appropriate to rely exclusively on the U.S. Economic Census for financial data on exporters and importers.
Therefore, based on the review of financial information for individual firms from D&B and other sources, this RIA estimates that there are 254 U.S. firms exporting hazardous waste (compared to 395 export facilities) and 41 U.S. companies importing hazardous waste (compared to 57 import facilities). Of these, at least 13 firms both export and import hazardous waste. Overall, industry classification data (i.e., NAICS codes) are available for approximately one-third of these firms, while other financial information (e.g., annual revenues and number of employees) are available for less than one-quarter of firms in the potentially affected universe. 
Exhibit 2-6 summarizes data availability for a subset of firms in the regulated universe based on the review of D&B and other data sources. Financial data are discussed in greater detail in Chapter 5.
EXHIBIT 2-6.SUMMARY OF DATA AVAILABILITY FOR FIRMS IN THE REGULATED UNIVERSE
                                  ENTITY TYPE
                              NUMBER OF ENTITIES
            NUMBER OF FIRMS FOR WHICH FINANCIAL DATA ARE AVAILABLE
                                  FACILITIES
                                     FIRMS
                                   REVENUES
                              NUMBER OF EMPLOYEES
                                  NAICS CODE
                                                                      Exporters
                                                                            395
                                                                            254
                                                                             53
                                                                             35
                                                                             59
                                                                      Importers
                                                                             57
                                                                             41
                                                                              8
                                                                              3
                                                                             13
                                                                       TOTAL[1]
                                                                            N/A
                                                                            282
                                                                             56
                                                                             36
                                                                             65
Notes:
 Thirteen firms both import and export hazardous waste. Therefore, totals do not equal the sum of importers and exporters.

Sources: Number of facilities based on U.S. EPA RCRA manifests for import shipments/Export Annual Reports, 2014. Number of firms and other financial data from Dun & Bradstreet, Hoovers.com, Insideview.com, Manta.com. Websites accessed between June 1, 2014 and July 30, 2014
2.3.2  Industry Characteristics of Exporters
Exhibit 2-7 describes the range of industries exporting hazardous waste. This list is intended to be representative of the subset of the foreign trade sector involved in the trade of hazardous waste, but it is not all-inclusive. The export industries represented by the largest number of firms include: Waste Management and Remediation Services (NAICS 562); Primary Metal Manufacturing (NAICS 331); and Chemical Manufacturing (NAICS 325), and Professional, Scientific, and Technical Services (NAICS 541)
EXHIBIT 2-7.LIST OF POTENTIALLY AFFECTED EXPORT INDUSTRIES
                                  NAICS CODE
                               NAICS DESCRIPTION


                                      211
Oil and Gas Extraction
                                      324
Petroleum and Coal Products Manufacturing
                                      325
Chemical Manufacturing
                                      326
Plastics and Rubber Products Manufacturing
                                      327
Nonmetallic Mineral Product Manufacturing
                                      331
Primary Metal Manufacturing
                                      332
Fabricated Metal Product Manufacturing
                                      333
Machinery Manufacturing
                                      334
Computer and Electronic Product Manufacturing
                                      335
Electrical Equipment, Appliance, and Component Manufacturing
                                      336
Transportation Equipment Manufacturing
                                      339
Miscellaneous Manufacturing
                                      423
Merchant Wholesalers, Durable Goods
                                      424
Merchant Wholesalers, Nondurable Goods
                                      522
Credit Intermediation and Related Activities
                                      525
Funds, Trusts, and Other Financial Vehicles
                                      531
Real Estate
                                      541
Professional, Scientific, and Technical Services
                                      561
Administrative and Support Services
                                      562
Waste Management and Remediation Services
                                      721
Accommodation
                                      813
Religious, Grantmaking, Civic, Professional, and Similar Organizations
Sources:
Dun & Bradstreet, Hoovers.com, Insideview.com, Manta.com. Websites accessed between June 1, 2014 and July 30, 2014.
FIRMS IN THESE INDUSTRIES VARY SUBSTANTIALLY IN SIZE. FOR EXAMPLE, BASED ON THE AVAILABLE INDUSTRY DATA, APPROXIMATELY HALF OF THE FIRMS HAVE MORE THAN 10,000 EMPLOYEES, WHILE APPROXIMATELY 20 PERCENT OF firms have fewer than 10 employees. The average annual revenues of firms range from approximately $250,000 to billions of dollars. For the subset of firms for which data are available, approximately one-third of firms have revenues over $1 billion per year, while more than 10 percent of firms have less than $10 million in annual revenues.
2.3.3  Industry Characteristics of Importers
Exhibit 2-8 describes the potential range of industries importing hazardous waste. This list is intended to be representative of the subset of the foreign trade sector involved in the trade of hazardous waste, but it is not all-inclusive. Potentially affected entities may include, but are not limited to the NAICS codes listed below. The import industries represented by the largest number of firms include: Waste Management and Remediation Services (NAICS 562) and Professional, Scientific, and Technical Services (NAICS 541). 
EXHIBIT 2-8.LIST OF POTENTIALLY AFFECTED IMPORT INDUSTRIES 
                                  NAICS CODE
                               NAICS DESCRIPTION


                                      212
Mining (except Oil and Gas)
                                      325
Chemical Manufacturing
                                      326
Plastics and Rubber Products Manufacturing
                                      333
Machinery Manufacturing
                                      423
Merchant Wholesalers, Durable Goods
                                      541
Professional, Scientific, and Technical Services
                                      562
Waste Management and Remediation Services
Sources:
Dun & Bradstreet, Hoovers.com, Insideview.com, Manta.com. Websites accessed between June 1, 2014 and July 30, 2014.

The limited financial data available also suggest that importers vary considerably in size. One firm has fewer than 100 employees, while at least one firm has more than 10,000 employees. Limited revenue data are available for importers (some degree of information is available for approximately one-quarter of import firms). Based on these data, only one firm had revenues of more than $1 billion per year, while no firms had revenues less than $10 million per year. These data may overstate the actual revenues of firms in the regulated universe because information is more readily available for large, publicly-traded companies. Thus, the reported financial data may not be representative of smaller entities in the regulated universe.



CHAPTER 3  |  Assessment of Costs and Cost Savings
3.1  Introduction
This chapter assesses the costs of exporting and importing hazardous waste under the provisions set forth in the proposed Website Rule, which are outlined in Chapter 1. This chapter begins with an overview of the regulated universe that is likely to be affected by the rule, building off of the discussion in Chapter 2. Then, it provides a detailed description of the methodology for the cost analysis. Finally, this chapter presents the total costs of the proposed rule, and concludes with a discussion of the potential analytic limitations. 
3.2  Universe of Entities Affected by the Rule 
AS DESCRIBED IN CHAPTER 2, THE POTENTIALLY AFFECTED UNIVERSE INCLUDES U.S. EXPORTERS AND IMPORTERS INVOLVED IN THE FOREIGN TRADE OF HAZARDOUS WASTE. TO ASSESS THE COST IMPACTS OF THE proposed rule, this RIA develops representative costs for potentially affected U.S. entities based on the foreign country of destination (or origin) and extrapolates these costs to the full universe of entities affected by the rule. While this RIA would ideally examine costs for each affected entity individually, the data necessary to assess the costs for specific exporters and imports are not available. Exhibit 3-1 reports the total number of U.S. entities and foreign shipments of hazardous waste potentially affected by the rule. Transporters and recognized traders are not included in the exhibit, as they will not incur costs as a result of the Website rule.
EXHIBIT 3-1.NUMBER OF U.S. ENTITIES AND THEIR SHIPMENTS
     ENTITY TYPE (COUNTRY OF DESTINATION / ORIGIN)TOTAL NUMBER OF ENTITIES
                       TOTAL ANNUAL NUMBER OF SHIPMENTS
                    AVERAGE NUMBER OF SHIPMENTS PER ENTITY
Exporters (Canada)
                                                                            348
                                                                         23,722
                                                                           68.2
Exporters (Mexico)
                                                                             21
                                                                         24,069
                                                                        1,146.0
Exporters (Non-OECD)
                                                                              0
                                                                              0
                                                                            0.0
Exporters (OECD)
                                                                             34
                                                                          1,986
                                                                           58.4
Importers (Canada)
                                                                             40
                                                                          3,176
                                                                           79.4
Importers (Mexico)
                                                                             16
                                                                            265
                                                                           16.6
Importers (Non-OECD)
                                                                              3
                                                                             84
                                                                           28.0
Importers (OECD)
                                                                              2
                                                                             74
                                                                           37.0
Notes:
 While Canada and Mexico are OECD countries, under existing regulations there are different requirements for the foreign trade of hazardous waste with these countries compared with other OECD countries. Canada and Mexico currently have bilateral waste agreements with the United States separate from the OECD multilateral waste agreement, and thus will be newly subject to various provisions of the rule that currently apply to other OECD member countries. Therefore, this RIA estimates impacts to exporters and importers separately for trade with Canada and Mexico versus other OECD countries.
 Several exporters and importers trade with more than one country. Therefore, there are 395 unique exporters (rather than 403 listed above) and 57 unique importers (rather than 61 listed above). However, this exhibit parses out the exporters that ship to more than one country into each of their respective destinations to accurately reflect the average number of shipments sent to each destination. Depending on the context, the remainder of this analysis may similarly parse out exporters that ship to more than one country separately to accurately estimate costs associated with shipping to alternative destinations. In other words, this analysis sometimes uses the higher entity count, where appropriate.
Source:
EPA, Export Annual Reports and Import Manifests for 2014.
3.3  Cost Methodology
This section presents the methods employed in this RIA to assess the cost impacts of the rule, first outlining the key assumptions reflected in several components of the cost analysis. It then provides a detailed accounting of the costs associated with each provision of the rule. The costs of the rule represent the incremental costs above and beyond the costs currently incurred in the baseline scenario -- the world as it would exist absent the rule. For each provision, this section describes differences in requirements in the baseline scenario and under the rule. Transporters and recognized traders are not included in the cost analysis as they will not incur costs as a result of the Website rule. 
3.3.1  General Assumptions
This assessment relies upon several assumptions that influence the estimated costs of importing and exporting hazardous waste under the rule. These include assumptions regarding (1) hourly labor costs and (2) discount rates, as discussed below. 
3.3.1.1 Hourly Labor Costs
The unit costs presented in this chapter reflect the time required of technicians to complete various tasks. The costs associated with this time are estimated as a function of the hourly labor costs associated with various professional positions. Exhibits 3-2 reports the fully loaded labor costs on a per-hour basis for workers who will likely implement the requirements associated with the rule for private industry.
EXHIBIT 3-2.PRIVATE INDUSTRY HOURLY LABOR COSTS
                            BLS OCCUPATION CATEGORY
                 MEAN LOADED HOURLY LABOR COST ($2015)MANAGERS
                                    $145.28
Technicians
                                    $71.19 
Notes:
 Bureau of Labor Statistics, National Occupational Employment and Wage Estimates, May 2014, accessed at http://www.bls.gov/oes/current/oes_nat.htm on March 10, 2016.
 To estimate average annual labor costs, this RIA relies on national average wage data reported by the U.S. Bureau of Labor Statistics for a full time employee working 40 hours a week multiplied by a loaded wage rate of 150 percent, which represents average private industry fringe benefits (e.g. paid time off, health benefits, retirement benefits, other legally required benefits, and payroll taxes) and overhead rates (e.g. general and administrative, fixed overhead, insurance, and profit). 
 To account for inflation between 2014 and 2015 for private labor costs, this RIA uses the BLS Employment Cost Index for those two years.
3.3.1.2 Discount Rates
This RIA presents the cost impacts of the rule in present value using a discount rate of seven percent. We also present the cost impacts of the rule using a three percent discount rate as a sensitivity analysis. The present value represents the value of a payment or stream of payments in common dollar terms. That is, it is the sum of a series of future cash flows expressed in today's dollars. Translation of future costs to present value terms requires the following: (a) projected future costs; and (b) the specific years in which these impacts are expected to be incurred. With these data, the present value of the future stream of impacts (PVc) from year t1 to T is measured in 2015 dollars according to the following standard formula:
                                       
where Ct is the cost of each management activity in year t and r is the discount rate.  
This RIA also expresses cost impacts as annualized values. Annualized values are calculated to provide a comparison of impacts across activities with varying time components and forecast periods. Annualized future impacts (APVc) are calculated according to the following standard formula:
                                       
where N is the number of years in the forecast period.
3.3.2  Methods for Assessing Costs of Rule Provisions
For each provision of the rule, costs are estimated on an incremental basis relative to the baseline scenario. For each potentially affected facility, this section describes the unit costs of each compliance-related activity, by entity type and country of destination/origin. 
Reading the Rule
This analysis assumes that all U.S. exporters and importers of hazardous waste will incur costs in the first year of the rule in order to understand and comply with the new requirements. All 395 exporters and 57 importers will need to familiarize themselves with the requirements of the rule. This RIA assumes that reading and understanding the rule will require 0.5 hours of a manager's time and 0.5 hours of a technician's time. This is equivalent to an upfront cost of $108.24 per facility (or $24.70 on an annualized basis over a 5-year time horizon, using a 7 percent discount rate). Thus, the aggregate annualized costs of reading the rule are $11,077 using a 7 percent discount rate over a 5 year time horizon.
Post Confirmations of Receipts and Recovery to Website 
Under the Revisions rule, U.S. receiving facilities must prepare and send a confirmation of recovery or disposal to EPA, the exporter, and the relevant authority in the country of origin for each shipment received. This analysis assumes that all exporters and importers of hazardous waste will incur costs to post confirmations of receipts and recovery to publicly available websites, until the complete implementation of the electronic system between 2018 to 2022. The analysis also assumes that uploading a confirmation of receipt and recovery to a publicly available website and then reviewing to confirm the documents have been placed correctly on the website will require five minutes (0.08 hours) of a technician's time per shipment, yielding an estimated cost burden of $5.69 per shipment. 
Cost savings were not quantified for this provision, but limited costs savings are expected, as certain exporters and importers will no longer submit physical copies of the confirmations of receipts and recovery to EPA.  Exhibit 3-4 reports the annualized costs of posting confirmations of receipts and recovery to a publicly accessible website.  
EXHIBIT 3-4.ANNUALIZED COSTS OF POST CONFIRMATIONS OF RECEIPTS AND RECOVERY TO WEBSITE ($2015) USING A SEVEN PERCENT DISCOUNT RATE, USING TWO DIFFERENT IMPLEMENTATION DATES, 2018 AND 2022.
                  ENTITY TYPE (COUNTRY OF DESTINATION/ORIGIN)
                         NUMBER OF AFFECTED FACILITIES
               ANNUAL NUMBER OF AFFECTED SHIPMENTS PER FACILITY 
                   TOTAL ANNUALIZED COSTSIMPLEMENTATION YEAR
                                     2018
                                     2022
Exporters (Canada)
                                      348
                                      68
                                    $30,792
                                   $135,093
Exporters (Mexico)
                                      21
                                     1,146
                                    $31,243
                                   $137,069
Exporters (Non-OECD)
                                       0
                                       0
                                      $0
                                      $0
Exporters (OECD)
                                      34
                                      58
                                    $2,578
                                    $11,310
Importers (Canada)
                                      40
                                      79
                                    $4,123
                                    $18,087
Importers (Mexico)
                                      16
                                      17
                                     $344
                                    $1,509
Importers (Non-OECD)
                                       3
                                      28
                                     $109
                                     $478
Importers (OECD)
                                       2
                                      37
                                      $96
                                     $421
TOTAL[2]
                                      464
                                     1,433
                                    $69,285
                                   $303,968
Notes:
 Costs are annualized over five years.
 Totals may not sum due to rounding.

Website Development
Exporters and importers must develop a publicly accessible website to post the confirmations of receipt and recovery if a publicly available website is not available. To determine the exporters and importers that have to pay the additional costs of developing a website, this analysis reviewed the 2014 hazardous waste treatment, disposal and storage (TSDF) corporate owners to evaluate which corporate owners have websites available. This review determined that 16.2 percent of exporters do not have a publicly accessible website and 28.9 percent of importers do not have a publicly accessible website. This analysis therefor assigns the costs of building a website to these 16.2 percent of exporters and 28.9 percent of importers.  
This RIA incorporates the estimated costs of creating a website specifically for the purposes of compliance reporting from EPA's 2016 Disposal of Coal Combustion Residuals from Electric Utilities (CCR) final rule. It assumes 2 hours of managerial time and 10 hours of technician time to develop a website, and assumes costs will only be incurred during the first year of the proposed rule. This is equivalent to an upfront cost of $1,002.43 per facility (or $228 on an annualized basis over a 5 year time horizon, using a seven percent discount rate).  Exhibit 3-5 reports the annualized costs of developing a publicly accessible website.  

EXHIBIT 3-5.ANNUALIZED COST OF WEBSITE DEVELOPMENT ($2015) USING A SEVEN PERCENT DISCOUNT RATE
                ENTITY TYPE (COUNTRY OF DESTINATION/ORIGIN)[A]
                         TOTAL NUMER OF FACILITIES[B]
                       NUMBER OF AFFECTED FACILITIES [C]
                              COST PER FACILITY 
                                      (D)
                       TOTAL ANNUALIZED COSTS (E=C x D)
Exporters (Canada)
                                                                            348
                                                                             56
                                                                           $228
                                                                       $12,889 
Exporters (Mexico)
                                                                             21
                                                                              3
                                                                           $228
                                                                          $778 
Exporters (Non-OECD)
                                                                              0
                                                                              0
                                                                             $0
                                                                            $0 
Exporters (OECD)
                                                                             34
                                                                              6
                                                                           $228
                                                                        $1,259 
Importers (Canada)
                                                                             40
                                                                             12
                                                                           $228
                                                                        $2,637 
Importers (Mexico)
                                                                             16
                                                                              5
                                                                           $228
                                                                        $1,055 
Importers (Non-OECD)
                                                                              3
                                                                              1
                                                                           $228
                                                                          $198 
Importers (OECD)
                                                                              2
                                                                              1
                                                                           $228
                                                                          $132 
TOTAL[2]
                                                                            464
                                                                             83
                                                                            N/A
                                                                        $18,947
Notes:
 Costs are annualized over five years.
 Totals may not sum due to rounding.
3.4  Results
Exhibits 3-6 and 3-7 report the total costs of the rule by provision assuming 2018 and 2020 IT system implementation dates, respectively. Costs are reported on an annualized basis, using a seven percent discount rate. As the exhibit shows, the most significant costs to industry under the rule are associated with posting the confirmations of receipts and recovery to publicly accessible websites. The approximate annualized cost of this provision is $99,000 to $334,000 depending on whether the electronic system is implemented in 2018 or 2022, respectively. Annualized costs for website development are estimated to equal approximately $19,000. This provision is estimated to be less costly because many companies affected by the rule already maintain a website as part of their baseline business practices.   
EXHIBIT 3-6.TOTAL ANNUALIZED COSTS OF THE RULE BY PROVISION ($2015) USING A SEVEN PERCENT DISCOUNT RATE  -  2018 ELECTRONIC SYSTEM IMPLEMENTATION YEAR
                                    Row
[A]
                                 Provision
[B]
                         Total Annualized Costs[1]
[C]
                     Total Annualized Cost Savings[1]
[D]
                               Net CostS
[E=C-D]
                                       1
Reading rule
                                                                       $11,077 
                                                                            $0 
                                                                       $11,077 
                                       2
Post confirmations of receipts and recovery to website
                                                                       $69,285 
                                                                            $0 
                                                                       $69,285 
                                       3
Website development
                                                                       $18,947 
                                                                            $0 
                                                                       $18,947 
                                       4
TOTAL[2]
                                                                       $99,309 
                                                                            $0 
                                                                       $99,309 
Notes:
 Costs and cost savings are annualized over five years.
 Totals may not sum due to rounding.
EXHIBIT 3-7.TOTAL ANNUALIZED COSTS OF THE RULE BY PROVISION ($2015) USING A SEVEN PERCENT DISCOUNT RATE  -  2022 ELECTRONIC SYSTEM IMPLEMENTATION YEAR
                                    Row
[A]
                                 Provision
[B]
                         Total Annualized Costs[1]
[C]
                     Total Annualized Cost Savings[1]
[D]
                               Net CostS
[E=C-D]
                                       1
Reading rule
                                                                       $11,077 
                                                                            $0 
                                                                       $11,077 
                                       2
Posting confirmations of receipts and recovery to website
                                                                      $303,968 
                                                                            $0 
                                                                      $303,968 
                                       3
Website development
                                                                       $18,947 
                                                                            $0 
                                                                       $18,947 
                                       4
TOTAL[2]
                                                                      $333,993 
                                                                            $0 
                                                                      $333,993 
Notes:
 Costs and cost savings are annualized over five years.
 Totals may not sum due to rounding.

Exhibits 3-8 and 3-9 report the distributional costs of the rule across the different entity types (i.e., exporters and importers) assuming that the IT system is implemented in 2018 and 2022, respectively. As shown in the exhibit, the net cost impacts of the rule are the greatest for U.S. exporters of hazardous waste, with a total approximate annualized cost of $89,000 to $308,000 depending on whether the electronic system is implemented in 2018 or 2022, respectively. The net cost impacts for U.S. importers are generally less than for exporters, with a total approximate annualized cost of $10,000 to $26,000 (2018 or 2022 implementation, respectively). 
Exhibit 3-8.	Total Annualized Costs of the Rule by entity type, using a Seven percent discount rate ($2015)  -  2018 Electronic system implementation year 
                                    Row
[A]
                                Entity Type
[B]
                         Total Number of Entities
[C]
                         Total Annualized Costs[1]
[D]
                     Total Annualized Cost Savings[1]
[E]
                               Net Costs
[F=D-E]
                                       1
Exporters (Canada)
                                                                            348
                                                                       $52,131 
                                                                            $0 
                                                                       $52,131 
                                       2
Exporters (Mexico)
                                                                             21
                                                                       $32,514 
                                                                            $0 
                                                                       $32,514 
                                       3
Exporters (Non-OECD)
                                                                              0
                                                                            $0 
                                                                            $0 
                                                                            $0 
                                       4
Exporters (OECD)
                                                                             34
                                                                        $4,602 
                                                                            $0 
                                                                        $4,602 
                                       5
Importers (Canada)
                                                                             40
                                                                        $7,704 
                                                                            $0 
                                                                        $7,704 
                                       6
Importers (Mexico)
                                                                             16
                                                                        $1,761 
                                                                            $0 
                                                                        $1,761 
                                       7
Importers (Non-OECD)
                                                                              3
                                                                          $351 
                                                                            $0 
                                                                          $351 
                                       8
Importers (OECD)
                                                                              2
                                                                          $245 
                                                                            $0 
                                                                          $245 
                                       9
TOTAL[2]
                                                                            N/A
                                                                       $99,309 
                                                                            $0 
                                                                       $99,309 
Notes:
 Costs and cost savings are annualized over five years.
 Totals may not sum due to rounding.

Exhibit 3-9.	Total Annualized Costs of the Rule by entity type ($2015) using a seven percent discount rate  -  2022 Electronic System Implementation Year 
                                    Row
[A]
                                Entity Type
[B]
                         Total Number of Entities
[C]
                         Total Annualized Costs[1]
[D]
                     Total Annualized Cost Savings[1]
[E]
                               Net Costs
[F=D-E]
                                       1
Exporters (Canada)
                                                                            348
                                                                      $156,432 
                                                                            $0 
                                                                      $156,432 
                                       2
Exporters (Mexico)
                                                                             21
                                                                      $138,340 
                                                                            $0 
                                                                      $138,340 
                                       3
Exporters (Non-OECD)
                                                                              0
                                                                            $0 
                                                                            $0 
                                                                            $0 
                                       4
Exporters (OECD)
                                                                             34
                                                                       $13,334 
                                                                            $0 
                                                                       $13,334 
                                       5
Importers (Canada)
                                                                             40
                                                                       $21,668 
                                                                            $0 
                                                                       $21,668 
                                       6
Importers (Mexico)
                                                                             16
                                                                        $2,926 
                                                                            $0 
                                                                        $2,926 
                                       7
Importers (Non-OECD)
                                                                              3
                                                                          $721 
                                                                            $0 
                                                                          $721 
                                       8
Importers (OECD)
                                                                              2
                                                                          $571 
                                                                            $0 
                                                                          $571 
                                       9
TOTAL[2]
                                                                            N/A
                                                                      $333,993 
                                                                            $0 
                                                                      $333,993 
Notes:
 Costs and cost savings are annualized over five years.
 Totals may not sum due to rounding.
3.5  Sensitivity Analysis
This RIA reports cost impacts of the rule using a real discount rate of 7 percent. This rate represents the average before tax return to private capital in the US economy and is there for the rate recommended by the Office of Management and Budget in its Circular A-4 guidance on the development of regulatory analyses. An alternative to the 7 percent discount rate may be appropriate in certain cases where a rule affects consumption rather than the allocation of capital. In these cases, the real rate of return on long-term government debt may provide a reasonable proxy for the rate the average saver uses to discount future consumption. Over the last thirty years, this rate has averaged approximately 3.1 percent in real terms on a pre-tax basis. Recurring annual costs are not influenced by the choice of a discount rate. However, since the cost impacts of the rule include one-time capital expenditures, the results may be sensitive to the selection of the discount rate. Exhibits 3-10 and 3-11 report the total costs of the rule by provision using a 3 percent discount rate, assuming that the IT system is implemented in 2018 and 2022, respectively. The result is a decrease of one to seven percent in total annualized costs, or between $2,000 and $7,000 (2022 and 2018 implementation, respectively). 
EXHIBIT 3-10.TOTAL ANNUALIZED COSTS OF THE RULE BY PROVISION ($2015) USING A THREE PERCENT DISCOUNT RATE  -  2018 ELECTRONIC SYSTEM IMPLEMENTATION YEAR
                                    Row
[A]
                                 Provision
[B]
                         Total Annualized Costs[1]
[C]
                     Total Annualized Cost Savings[1]
[D]
                               Net CostS
[E=C-D]
                                       1
Read rule
                                                                       $10,302 
                                                                            $0 
                                                                       $10,302 
                                       2
Post confirmations of receipts and recovery to website
                                                                       $64,440 
                                                                            $0 
                                                                       $64,440 
                                       3
Website development
                                                                       $17,622 
                                                                            $0 
                                                                       $17,622 
                                       4
TOTAL[2]
                                                                       $92,364 
                                                                            $0 
                                                                       $92,364 
Notes:
 Costs and cost savings are annualized over five years.
 Totals may not sum due to rounding.

EXHIBIT 3-11.TOTAL ANNUALIZED COSTS OF THE RULE BY PROVISION ($2015) USING A THREE PERCENT DISCOUNT RATE  -  2022 ELECTRONIC SYSTEM IMPLEMENTATION YEAR
                                    Row
[A]
                                 Provision
[B]
                         Total Annualized Costs[1]
[C]
                     Total Annualized Cost Savings[1]
[D]
                               Net CostS
[E=C-D]
                                       1
Read rule
                                                                       $10,302 
                                                                            $0 
                                                                       $10,302 
                                       2
Post confirmations of receipts and recovery to website
                                                                      $303,968 
                                                                            $0 
                                                                      $303,968 
                                       3
Website development
                                                                       $17,622 
                                                                            $0 
                                                                       $17,622 
                                       4
TOTAL[2]
                                                                      $331,893 
                                                                            $0 
                                                                      $331,893 
Notes:
 Costs and cost savings are annualized over five years.
 Totals may not sum due to rounding.
3.6  Additional Analytic Limitations
While the analysis presented in this chapter provides reasonable estimates of the costs associated with the rule, the data and methods used in this analysis are subject to several uncertainties, many of which were noted above. Additional significant limitations are outlined below, and should be considered in the context of cumulative impacts of the Website and Revisions rules.
Changes in market dynamics resulting from the rule are unknown. To the extent that the rule imposes new costs on importers and exporters of hazardous waste, facilities may decide to engage to a lesser extent in the international trade of these materials. This could result in more or less hazardous waste being processed in the United States, depending on whether exports or imports of waste become relatively less common. Alternatively, facilities may experience greater cost savings than are quantified in this chapter, which may result in lower transaction costs and greater trade of hazardous materials with foreign nations.
Market characteristics of industry sector are held static over forecast period. Similarly, the analysis does not endeavor to account for broader market forces that may affect this industry sector over the forecast period. Relative to the analytic baseline, such affects may yield more or fewer entities involved in international trade or the number and volume of shipments.
Importer- and exporter-specific characteristics not accounted for. In practice, import and export documentation and tracking methods vary by industry and between individual facilities in the same industry. Sufficient data are not available to incorporate such considerations into the estimation of costs. Therefore, while costs are estimated separately for importers and exporters by the countries they trade with, they do not account for facility-specific differences. Furthermore, there is a wide range in the number of shipments (and notices) per entity. Thus, the average per entity cost estimates reported in this RIA may either overstate or understate costs for individual importers and exporters.


CHAPTER 4  |  Assessment of Benefits
4.1  DISCUSSION OF NON-MONETIZED BENEFITS
As described in Chapter 1, EPA designates certain secondary materials as hazardous wastes, noting that they can pose threats to human health and the environment. Under RCRA, EPA regulates the management, transportation, and ultimate disposal of those wastes. Tracking where wastes are generated and moved can help assure that wastes are not misplaced, lost, or unaccounted for. This proposed regulation, in conjunction with the final Revisions rule, refines EPA's system for tracking those wastes, to ensure that transportation across national borders does not increase the risk of exposure to the environmental and health hazards of the wastes. The dual regulations also are intended to serve the goal of improving mechanisms for communication and coordination among the regulatory entities of the different nations involved in these transactions (e.g., improved coordination between EPA and CBP on export shipments). 
Benefits directly associated with this proposed rule include the following:
 Enhanced EPA information regarding exporter and importer activities. The rule will offer improved access and ability to track compliance with terms of consent and export/import requirements until the electronic data system is operational in 2018 or 2022. EPA anticipates that better notice and monitoring of these waste handling activities during the interim time period will reduce the likelihood of exposure to these wastes.  
 Reduction of risks associated with recovery and disposal of hazardous wastes. Implementation of the proposed rule enables greater oversight by EPA and other countries on the individual import and export shipments.
 Improved ability to acquire information regarding the individual shipments of hazardous waste exported from the United States and the management by the foreign destination facilities. Currently there is a lack of data regarding individual export shipments to provide the assurance that hazardous waste exported to other countries is recycled in properly licensed facilities in an environmentally sound manner. The additional website posting requirements will help ensure that hazardous wastes are managed at the approved facilities with appropriate technologies and environmental controls. These data will be accessible to states and the public, improving overall transparency.


CHAPTER 5  |  Other Required Analyses
As required by applicable statutes and Executive Orders, this chapter summarizes EPA's analysis of equity considerations and other regulatory concerns associated with the rule. This chapter assesses potential impacts, with respect to the following issues: 
Regulatory planning and review: requires examination and quantification of costs and benefits of regulating with and without the rule;
Regulatory flexibility: focuses on the potential effects of the rule on small entities; 
Employment impacts: assesses the potential impact of the rule on employment; 
Unfunded mandates: examines the implications of the rule with respect to unfunded mandates; 
Federalism: considers potential issues related to state sovereignty; 
Tribal governments: extends the discussion of federal unfunded mandates to include impacts on Native American tribal governments and their communities; 
Environmental justice: considers potential issues for minority and low-income populations; 
Children's health protection: examines the potential impact of the rule on the health of children; 
Energy Impacts: examines the impacts of the rule on energy use, supply, and distribution; and
Joint impacts of rules: considers the combined effect of the rule with other regulations affecting foreign trade.
5.1  Regulatory Planning and Review 
Under Executive Order 12866 [58 FR 51735 (October 4, 1993)], as amended by Executive Order 13563, the Agency, in conjunction with the Office of Management and Budget's (OMB's) Office of Information and Regulatory Affairs (OIRA), must determine whether a regulatory action is "significant" and therefore subject to OMB review and the full requirements of the Executive Order. Executive Order 12866 defines "significant regulatory action" as one that is likely to result in a rule that may: 
   (1)	Have an annual effect on the economy of $100 million or more or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities; 
   (2)	Create a serious inconsistency or otherwise interfere with an action taken or planned by another agency; 
   (3)	Materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof; or 
   (4)	Raise novel legal or policy issues arising out of legal mandates, the President's priorities, or the principles set forth in the Executive Order. 
Pursuant to the terms of Executive Order 12866, as affirmed in Executive Order 13563, the Agency has determined that this rule is a significant regulatory action because it contains novel policy issues, as defined under part 3(f)(4) of the Order. Accordingly, EPA submitted this action to the Office of Management and Budget (OMB) for review under Executive Order 12866. Any changes made in response to OMB recommendations have been documented in the docket for this action.
Findings for this RIA indicate that the rule is projected to result in aggregate annualized costs (i.e., including both industry and government costs) significantly below the $100 million threshold established under part 3(f)(1) of the Executive Order. The rule is therefore not considered to be an economically significant action. 
In addition to calling for assessment of regulatory costs, the Executive Order also requires Federal agencies to assess benefits and, "recognizing that some costs and benefits are difficult to quantify, propose or adopt a regulation only upon a reasoned determination that the benefits of the intended regulation justify its costs." As described in Chapter 4 of this RIA, monetization of all the rule's benefits is not possible given limitations in the available data. Benefits of this rule include enhanced tracking of hazardous waste transportation recognized trader activities, increased regulatory efficiency, consistency with trade requirements for OECD countries, reduction of risks associated with the treatment and disposal of hazardous wastes, and improved ability to acquire information regarding exports and imports of hazardous waste. 
5.2  Regulatory Flexibility
The Regulatory Flexibility Act (RFA) as amended by the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 USC 601 et seq., generally requires an agency to prepare a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements under the Administrative Procedure Act or any other statute. This analysis must be completed unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. Small entities include small businesses, small organizations, and small governmental jurisdictions. Based on EPA's RFA/SBREFA analytic guidance, a rule is not expected to result in a significant economic impact for a substantial number of small entities if the costs of the regulation per entity are less than one percent of annual revenues for 20 percent of small entities across all sectors, or 100 small entities in the affected universe.  
Ideally, assessment of the rule's small entity impacts would identify specific entities affected by the rule as small and assess impacts for these entities. As described in previous chapters of this RIA, however, detailed data necessary for the assessment of regulatory impacts for individual entities are not available. Financial data on the potentially affected universe are limited because (1) firms exporting and importing hazardous waste, including SLABs, represent a small percentage of all firms in their respective industries (thus, industry-wide data may not be generally representative of these particular firms) and (2) many of these firms are privately-held, so financial data are not generally available. Nevertheless this analysis uses a combination of U.S. Economic Census and other data sources to make a reasonable estimate of the final rule's impact on small entities.
This analysis is composed of two parts. First, the affected industries and number of potentially affected small entities within them are identified. Next average annual revenues are estimated for potentially small entities and these revenues are compared with the total costs of the rule to determine the number of facilities affected at the one and three percent level. The number of facilities affected at these levels is reported at the end of this section. The steps in this process are as follows:
    Identify affected entities and industries. As described in Chapter 2, EPA's 2011 annual report data provide facility-level information for exporters and importers, including the name, address, and EPA ID number of exporters and importers..
    Estimate number of entities that are small. To identify the number of small entities in the potentially affected universe, this RIA relies upon the SBA's Small Business Size Standards. These standards "represent the largest size that a business (including its subsidiaries and affiliates) may be to remain classified as a small business concern." Small Business Size Standards are specified for individual 6-digit NAICS codes, and defined by either annual revenues or number of employees depending on the industry. These size standards were compared against the company financial or employment data from D&B, Manta.com, Hoovers.com, and Insideview.com to identify potentially small businesses.
    Estimate average annual revenues of affected small entities. Each potentially small entity identified in step 2 is assigned an average annual revenue based on data from the U.S. Economic Census pertaining to its NAICS industry. These revenues are estimated by dividing the total revenues of all entities below the SBA threshold by the total number of entities within each industry. To eliminate potential outliers in the data, the revenues of companies owned by multinational corporations or private investment groups were omitted from the average, even if their U.S. operations met the SBA criteria for a small business. This assumption is conservative, in that it lowers estimated average annual revenues for affected small entities.
    Estimate regulatory costs per small entity. The average costs per affected entity of the rule are presented in Chapter 3. These costs vary based on whether an entity is an importer or exporter of waste. To be conservative, these costs represent an upper bound for the average costs per small entity because they reflect costs incurred by both large and small entities. In reality, the average costs for a small entity will be lower (for example, small entities would have a smaller average number of notices and shipments per year than a larger entity). 
Exhibit 5-1 shows the range of industries represented by exporters and importers of hazardous waste and the relevant small business size standard for each industry. More than 45 industries are identified (using 6-digit NAICS codes). The small business size standards range from less than $8.2 million to less than $41.9 million in annual revenues or less than 150 to less than 1,750 employees.
EXHIBIT 5-1.DETERMINATION OF SMALL BUSINESSES IN EXPORT AND IMPORT INDUSTRIES AFFECTED BY THE PROPOSED RULE
                                  NAICS Code
                               NAICS Definition
                         Types of entities identified
                        Small Business Size Standard[1]
                                       
                                       
                                       
                                    Revenue
                                 ($ Millions)
                              Number of Employees
211111
Crude Petroleum and Natural Gas Extraction
Exporters
                                      --
                                     1,250
212291
Uranium-Radium-Vanadium Ore Mining
Importers
                                      --
                                      250
324110
Petroleum Refineries
Exporters
                                      --
                                     1,500
325180
Other Basic Inorganic Chemical Manufacturing
Exporters
                                      --
                                     1,000
325194
Cyclic Crude, Intermediate, and Gum and Wood Chemical Manufacturing
Exporters
                                      --
                                     1,250
325199
All Other Basic Organic Chemical Manufacturing
Exporters
                                      --
                                     1,250
325211
Plastics Material and Resin Manufacturing
Exporters
                                      --
                                     1,250
325510
Paint and Coating Manufacturing
Exporters
                                      --
                                     1,000
325612
Polish and Other Sanitation Good Manufacturing
Importers
                                      --
                                      750
325992
Photographic Film, Paper, Plate, and Chemical Manufacturing
Exporters
                                      --
                                     1,500
326113
Unlaminated Plastics Film and Sheet (except Packaging) Manufacturing
Importers
                                      --
                                      750
326150
Urethane and Other Foam Product (except Polystyrene) Manufacturing
Exporters
                                      --
                                      750
327213
Glass Container Manufacturing
Exporters
                                      --
                                     1,250
331110
Iron and Steel Mills and Ferroalloy Manufacturing
Exporters
                                      --
                                     1,500
331313
Alumina Refining and Primary Aluminum Production
Exporters
                                      --
                                     1,000
331512
Steel Investment Foundries
Exporters
                                      --
                                     1,000
332911
Industrial Valve Manufacturing
Exporters
                                      --
                                      750
333249
Other Industrial Machinery Manufacturing
Exporters/Importers
                                      --
                                      500
333517
Machine tool manufacturing
Importers
                                      --
                                      500
334519
Other Measuring and Controlling Device Manufacturing
Exporters
                                      --
                                      500
335314
Relay and Industrial Control Manufacturing
Exporters
                                      --
                                      750
335911
Storage Battery Manufacturing
Exporters
                                      --
                                     1,250
336320
Motor vehicle electrical and electronic equipment manufacturing
Exporters
                                      --
                                     1,000
336360
Motor Vehicle Seating and Interior Trim Manufacturing
Exporters
                                      --
                                     1,500
336412
Aircraft Engine and Engine Parts Manufacturing
Exporters
                                      --
                                     1,500
339112
Surgical and Medical Instrument Manufacturing
Exporters
                                      --
                                     1,000
423930
Recyclable Material Merchant Wholesalers
Exporters/Importers
                                      --
                                      100
424690
Other Chemical and Allied Products Merchant Wholesalers
Exporters
                                      --
                                      150
522220
Sales Financing
Exporters
                                    $ 41.9
                                      --
525910
Open-End Investment Funds
Exporters
                                    $ 35.3
                                      --
531190
Lessors of Other Real Estate Property
Exporters
                                    $ 29.9
                                      --
541512
Computer Systems Design Services
Exporters
                                    $ 29.9
                                      --
541611
Administrative Management and General Management Consulting Services
Exporters
                                    $ 16.3
                                      --
541710
RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES
Exporters
                                      --
                                      500
541711
Research and Development in Biotechnology
Exporters/Importers
                                      --
                                     1,000
561210
Facilities Support Services
Exporters
                                    $ 41.9
                                      --
561910
Packaging and Labeling Services
Exporters
                                    $ 12.0
                                      --
561990
All Other Support Services
Exporters
                                    $ 12.0
                                      --
562111
Solid Waste Collection
Exporters
                                    $ 41.9
                                      --
562112
Hazardous Waste Collection
Exporters/Importers
                                    $ 41.9
                                      --
562119
Other Waste Collection
Importers
                                    $ 41.9
                                      --
562211
Hazardous Waste Treatment and Disposal
Exporters/Importers
                                    $ 41.9
                                      --
562219
Other Nonhazardous Waste Treatment and Disposal
Exporters/Importers
                                    $ 41.9
                                      --
562920
Materials Recovery Facilities
Exporters
                                    $ 22.3
                                      --
721110
Hotels (except Casino Hotels) and Motels
Exporters
                                    $ 35.3
                                      --
813910
Business Associations
Exporters
                                     $ 8.2
                                      --
Notes:
1. SBA's small business size standards accessed at http://www.sba.gov/content/small-business-size-standards on February 10, 2016.
2. U.S. Small Business Administration. January 26, 2016 Final Rule: Small Business Size Standards for Manufacturing
3. U.S. Small Business Administration. January 26, 2016 Final Rule: Small Business Size Standards: Employee Based Size Standards in Wholesale Trade and Retail Trade
4. U.S. Small Business Administration. January 26, 2016 Final Rule: Small Business Size Standards: Industries With Employee Based Size Standards Not Part of Manufacturing, Wholesale Trade, or Retail Trade
5. U.S. Small Business Administration. January 26, 2016 Final Rule: Small Business Size Standards: Inflation Adjustment to Monetary Based Size Standards

Exhibit 5-2 presents the distribution of firms across the general types of entities affected by the proposed rule.  For U.S. firms exporting hazardous waste, this analysis estimates approximately 22 percent are small entities according to SBA's small business size standards, with these entities generating average annual revenues of approximately $41 million.  This analysis also estimates that of the U.S. firms importing hazardous waste, 25 percent are small entities, with average revenues of $8.21 million.  
EXHIBIT 5-2.PROFILE OF SMALL ENTITIES
                                  Entity Type
                             Total Number of Firms
                         Total Number of facilities[1]
    Percentage of Establishments that are Considered "Small Businesses"
                           Number of Small Entities
        Average Annual Revenues for Small Entities ($2015, millions)[3]
                                 Exporters[2]
                                      254
                                      395
                                      22%
                                      86
                                 $40.74 (mean)
                                 $9.07 (median)
                                 Importers[2]
                                      41
                                      65
                                      25%
                                      16
                                   $8.21[3]
                                     TOTAL
                                      295
                                      460
                                      N/A
                                      103
                                      N/A
Notes:
 U.S. EPA Export and Import Annual Reports, 2014.
 Financial data obtained from Dun & Bradstreet, Hoovers.com, Insideview.com, and Manta.com.
 Average revenues for small companies exporting in 2014 were not available in the dataset used. Therefore, this analysis uses the value found in the RIA for the proposed rule.

The upper bound estimate of small entities that will be affected by the rule is 103, as shown in Exhibit 5-2.  EPA conducted a screening-level assessment of these 103 potentially small entities affected by this rule.  To estimate revenues and potential impacts for these 103 entities, EPA used the following assumptions and steps:  
 In Chapter 3 of this RIA EPA calculated the average costs per entity by NAICS code, grouped by type to capture the fact that these different groups face different compliance costs.  The groups include waste exporters and importers to Canada, Mexico, OECD and non-OECD nations, described below.  Exhibit 5-3 shows the NAICS codes associated with entities of each type (exporters and importers), and the number of potentially small entities that fall under each NAICS code.  
 For entities that report NAICS codes relevant to exporters, EPA calculated the average annual revenue by NAICS code from Census data, referencing reported revenues for entities associated with the midpoint SBA threshold.  The average annual revenue across NAICS codes for exporters is $520 million (minimum $5.7 million, maximum $7,700 million).  For entities that report NAICS codes relevant to importers, EPA repeated this process, and calculated an average annual revenue of $16 million (minimum $7.8 million, maximum $20 million; all values in $2015). 
 For small entities with unknown NAICS codes (by entity type), EPA assigned average annual revenues derived above based on the entity type (exporter or importer).  
 For each entity, EPA compared the average annual costs (by entity type) to the estimated annual revenues for small entities in that NAICS sector.  
EXHIBIT 5-3.PROFILE OF SMALL ENTITIES BY NAICS CODE
                                  Entity type
                                  NAICS Code
                               NAICS Description
                       Number of Potentially Small Firms
Exporters
                                    211111
Crude Petroleum and Natural Gas Extraction
                                       4

                                    324110
Petroleum Refineries
                                      10

                                    325180
Other Basic Inorganic Chemical Manufacturing
                                       1

                                    325199
All Other Basic Organic Chemical Manufacturing
                                       3

                                    325211
Plastics Material and Resin Manufacturing
                                       2

                                    325510
Paint and Coating Manufacturing
                                       1

                                    325992
Photographic Film, Paper, Plate, and Chemical Manufacturing
                                       1

                                    326150
Urethane and Other Foam Product (except Polystyrene) Manufacturing
                                       1

                                    327213
Glass Container Manufacturing
                                       1

                                    331110
Iron and Steel Mills and Ferroalloy Manufacturing
                                       5

                                    331512
Steel Investment Foundries
                                       1

                                    332911
Industrial Valve Manufacturing
                                       1

                                    334519
Other Measuring and Controlling Device Manufacturing
                                       1

                                    335314
Relay and Industrial Control Manufacturing
                                       2

                                    335912
Primary Battery Manufacturing
                                       4

                                    336320
Motor Vehicle Electrical and Electronic Equipment Manufacturing
                                       1

                                    336360
Motor Vehicle Seating and Interior Trim Manufacturing
                                       1

                                    336412
Aircraft Engine and Engine Parts Manufacturing
                                       1

                                    339112
Surgical and Medical Instrument Manufacturing
                                       1

                                    423930
Recyclable Material Merchant Wholesalers
                                      14

                                    424690
Other Chemical and Allied Products Merchant Wholesalers
                                       3

                                    522220
Sales Financing
                                       2

                                    541512
Computer Systems Design Services
                                       2

                                    541710
Research and Development in the Physical, Engineering, and Life Sciences
                                       1

                                    541711
Research and Development in Biotechnology
                                       4

                                    561210
Facilities Support Services
                                       2

                                    561910
Packaging and Labeling Services
                                       1

                                    561990
All Other Support Services
                                       1

                                    562112
Hazardous Waste Collection
                                       3

                                    562211
Hazardous Waste Treatment and Disposal
                                       8

                                    562920
Materials Recovery Facilities
                                       1

                                    721110
Hotels (except Casino Hotels) and Motels
                                       1

Unknown
                                       2

EXPORTERS TOTAL
                                      87
Importers
                                    212291
Uranium-Radium-Vanadium Ore Mining
                                       1

                                    423930
Recyclable Material Merchant Wholesalers
                                       1

                                    541711
Research and Development in Biotechnology
                                       1

                                    562119
Other Waste Collection
                                       2

                                    562211
Hazardous Waste Treatment and Disposal
                                       5

Unknown
                                       6

IMPORTERS TOTAL
                                      16
TOTAL ACROSS ENTITY TYPES
                                      103

As discussed in Chapter 3, the industry costs of the rule are estimated to be higher in the first year than in later years due to the one-time, upfront costs of the rule (e.g., reading and understanding the rule and setting up a website). Therefore, to assess whether the costs of rule represent a significant impact to a substantial number of small entities, this regulatory flexibility analysis compares the first-year costs (as opposed to the annualized costs) with the average annual revenues of small entities.  Furthermore, to be conservative, we compare the total costs of the rule (rather than the net costs) against annual revenues to make this determination.
Using the total universe of potentially small firms, EPA then determined a weighted average first year total cost for the exporter and importer entity types, based on the proportion of entities exporting or importing to Canada, Mexico, OECD, or non-OECD nations. EPA compared these conservative first year total costs to the average revenues of potentially small entities by NAICS code, using the average revenues per entity established through the steps listed above. EPA found that none of the 103 small firms evaluated were affected at ether the one percent or the three percent level. As a result this analysis finds that the final rule will not result in SISNOSE. These results are presented by NAICS code in Exhibit 5-4. 


EXHIBIT 5-4.PROFILE OF SMALL BUSINESSES AFFECTED BY THE RULE AND ASSOCIATED FIRST YEAR COSTS AS A PERCENT OF AVERAGE ANNUAL REVENUES
                                  Entity type
                                  NAICS Code
                               NAICS Description
                       Number of Potentially Small Firms
                    Average NAICS revenue ($2015 Millions)
               Average first year cost of compliance ($2015)[1]
                  Average cost as percent of average revenue
                      Firms affected at 
1 percent level
                      Firms affected at 
3 percent level
Exporters
                                    211111
Crude Petroleum and Natural Gas Extraction
                                       4
                                   $520 [2]
                                    $971.58
                                    0.0002%
                                     None
                                     None

                                    324110
Petroleum Refineries
                                      10
                                    $7,700
                                    $971.58
                                   0.00001%
                                     None
                                     None

                                    325180
Other Basic Inorganic Chemical Manufacturing
                                       1
                                   $520 [2]
                                    $971.58
                                    0.0002%
                                     None
                                     None

                                    325199
All Other Basic Organic Chemical Manufacturing
                                       3
                                    $1,200
                                    $971.58
                                   0.00008%
                                     None
                                     None

                                    325211
Plastics Material and Resin Manufacturing
                                       2
                                    $1,100
                                    $971.58
                                   0.00009%
                                     None
                                     None

                                    325510
Paint and Coating Manufacturing
                                       1
                                     $210
                                    $971.58
                                    0.0005%
                                     None
                                     None

                                    325992
Photographic Film, Paper, Plate, and Chemical Manufacturing
                                       1
                                     $420
                                    $971.58
                                    0.0002%
                                     None
                                     None

                                    326150
Urethane and Other Foam Product (except Polystyrene) Manufacturing
                                       1
                                      $83
                                    $971.58
                                    0.0012%
                                     None
                                     None

                                    327213
Glass Container Manufacturing
                                       1
                                     $120
                                    $971.58
                                    0.0008%
                                     None
                                     None

                                    331110
Iron and Steel Mills and Ferroalloy Manufacturing
                                       5
                                    $1,000
                                    $971.58
                                    0.0001%
                                     None
                                     None

                                    331512
Steel Investment Foundries
                                       1
                                      $77
                                    $971.58
                                    0.0013%
                                     None
                                     None

                                    332911
Industrial Valve Manufacturing
                                       1
                                     $120
                                    $971.58
                                    0.0008%
                                     None
                                     None

                                    334519
Other Measuring and Controlling Device Manufacturing
                                       1
                                      $46
                                    $971.58
                                    0.0021%
                                     None
                                     None

                                    335314
Relay and Industrial Control Manufacturing
                                       2
                                     $160
                                    $971.58
                                    0.0006%
                                     None
                                     None

                                    335912
Primary Battery Manufacturing
                                       4
                                     $310
                                    $971.58
                                    0.0003%
                                     None
                                     None

                                    336320
Motor Vehicle Electrical and Electronic Equipment Manufacturing
                                       1
                                   $520 [2]
                                    $971.58
                                    0.0002%
                                     None
                                     None

                                    336360
Motor Vehicle Seating and Interior Trim Manufacturing
                                       1
                                     $320
                                    $971.58
                                    0.0003%
                                     None
                                     None

                                    336412
Aircraft Engine and Engine Parts Manufacturing
                                       1
                                     $400
                                    $971.58
                                    0.0002%
                                     None
                                     None
Exporters (Continued)
                                    339112
Surgical and Medical Instrument Manufacturing
                                       1
                                     $130
                                    $971.58
                                    0.0007%
                                     None
                                     None

                                    423930
Recyclable Material Merchant Wholesalers
                                      14
                                   $520 [2]
                                    $971.58
                                    0.0002%
                                     None
                                     None

                                    424690
Other Chemical and Allied Products Merchant Wholesalers
                                       3
                                   $520 [2]
                                    $971.58
                                    0.0002%
                                     None
                                     None

                                    522220
Sales Financing
                                       2
                                      $20
                                    $971.58
                                    0.0049%
                                     None
                                     None

                                    541512
Computer Systems Design Services
                                       2
                                      $14
                                    $971.58
                                     0. %
                                     None
                                     None

                                    541710
Research and Development in the Physical, Engineering, and Life Sciences
                                       1
                                   $520 [2]
                                    $971.58
                                    0.0002%
                                     None
                                     None

                                    541711
Research and Development in Biotechnology
                                       4
                                     $7.8
                                    $971.58
                                    0.013%
                                     None
                                     None

                                    561210
Facilities Support Services
                                       2
                                      $20
                                    $971.58
                                    0.0049%
                                     None
                                     None

                                    561910
Packaging and Labeling Services
                                       1
                                     $5.7
                                    $971.58
                                    0.017%
                                     None
                                     None

                                    561990
All Other Support Services
                                       1
                                     $5.7
                                    $971.58
                                    0.017%
                                     None
                                     None

                                    562112
Hazardous Waste Collection
                                       3
                                      $20
                                    $971.58
                                    0.0049%
                                     None
                                     None

                                    562211
Hazardous Waste Treatment and Disposal
                                       8
                                      $20
                                    $971.58
                                    0.0049%
                                     None
                                     None

                                    562920
Materials Recovery Facilities
                                       1
                                      $11
                                    $971.58
                                    0.0088%
                                     None
                                     None

                                    721110
Hotels (except Casino Hotels) and Motels
                                       1
                                      $17
                                    $971.58
                                    0.0057%
                                     None
                                     None

Unknown
                                       2
                                   $520 [2]
                                    $971.58
                                       
                                     None
                                     None

EXPORTERS TOTAL 
                                      87
                                       
Importers
                                    212291
Uranium-Radium-Vanadium Ore Mining
                                       1
                                    $16 [2]
                                    $723.67
                                    0.0045%
                                     None
                                     None

                                    423930
Recyclable Material Merchant Wholesalers
                                       1
                                    $16 [2]
                                    $723.67
                                    0.0045%
                                     None
                                     None

                                    541711
Research and Development in Biotechnology
                                       1
                                     $7.8
                                    $723.67
                                    0.0093%
                                     None
                                     None

                                    562119
Other Waste Collection
                                       2
                                      $20
                                    $723.67
                                    0.0036%
                                     None
                                     None

                                    562211
Hazardous Waste Treatment and Disposal
                                       5
                                      $20
                                    $723.67
                                    0.0036%
                                     None
                                     None

Unknown
                                       6
                                    $16 [2]
                                    $723.67
                                    0.0045%
                                     None
                                     None

IMPORTERS TOTAL
                                      16
                                       
Notes:
1.  Average first year cost of compliance for each Exporter and Importer firm was calculated as a weighted average within each entity type. The components of the weighted average are the average costs per entity exporting or importing to Canada, Mexico, OECD nations, and non-OECD nations. Each of these cost values were weighted based on the proportion of the total potentially small entity universe exporting or importing to each of these categories. 
2.  Within each Exporters and Importers, the average annual revenue calculated from all known NAICS code entities was applied to entities in NAICS codes with unknown annual revenues, and to entities with unknown NAICS codes. This value is $520 million for Exporters and $16 million for Importers.

5.3  Employment Impact Analysis
Executive Order 13563 "Improving Regulation and Regulatory Review" (76 FR 3821; January 18, 2011) requires Federal agencies to consider the employment impacts of regulatory policy. Specifically, Executive Order 13563 states, "Our regulatory system must protect public health, welfare, safety, and our environment while promoting economic growth, innovation, competitiveness, and job creation." Consistent with the requirements of the Executive Order, this RIA considers the employment impacts of the rule. Ideally, this RIA would include a quantitative assessment of these impacts, but insufficient data are available to quantify changes in employment associated with the rule. This RIA, therefore, presents a qualitative assessment of the rule's potential employment impacts.
In general, an environmental regulation can be understood as an increase in demand for a particular output: environmental quality. Meeting this new demand can result in increased demand for the various factors of production (including labor) available to the economy. However, the regulated sector generally relies on revenues generated by their other market outputs to cover the costs of supplying increased environmental quality. This can lead to reduced demand for labor and other factors of production used to produce the market output. Thus, as described in Berman and Bui (2001), the net effect of an environmental regulation on employment in regulated sectors and the overall economy is indeterminate. The costs imposed on directly regulated sectors may raise production costs and put some specific jobs at risk, while at the same time environmental regulation may create jobs in the regulated sector or other sectors, such as the environmental protection sector. Because the costs of this rule are relatively low and because the number of effected entities is relatively low, EPA believes it is unlikely that it would result in significant employment impacts.
5.4  Unfunded Mandates Analysis
Among its other purposes and federal agency rulemaking requirements, the Unfunded Mandates Reform Act (UMRA) requires federal agencies, unless otherwise prohibited by law, to assess the effects of their regulatory actions on state, local, and tribal governments and on the private sector, to determine whether any rulemaking may result in "any Federal mandate that may result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year."
Section 202 of UMRA requires federal agencies that rules that are likely to exceed this expenditure threshold to prepare a "Written Statement" containing the following five components, supply the statement to OMB, and summarize it in the Federal Register: 
 Identification of the applicable authorizing federal law;
 Qualitative and quantitative assessment of the anticipated costs and benefits of the rule including the costs and benefits to state, local, and tribal governments or the private sector, and an analysis of whether federal resources may be available to pay these costs;
 Estimates of future compliance costs and any disproportionate budgetary effects;
 Estimates of effects on the national economy such as productivity, economic growth, employment, job creation, international competitiveness; and
 Description and summary of agency's prior consultation with elected representatives of the affected state, local, and tribal governments.
Determining the private sector and state/local/tribal government shares of the proposed rule's compliance costs requires information on the extent to which regulated entities are owned by these three groups. In compiling the list of U.S. importers and exporters, this RIA did not identify any entities that were owned by state, local, or tribal governments. Nonetheless, based on the magnitude of the rule's estimated cost impacts as reported earlier in this chapter, the estimated cost of the rule would not result in annual expenditures exceeding $100 million for the private sector or state, local, and tribal governments, separately or in aggregate.
5.5  Federalism Analysis
The 1999 Federalism Executive Order 13132 furthers the policies of UMRA by establishing federalism principles, federalism policymaking criteria, and a state and local government consultation process for the development of federal regulations with implications for federalism. These include regulations and other federal policies and actions that have substantial direct effects on states, on the relationship between the federal government and the states, or on the distribution of power and responsibilities among the various levels of government. 
Pursuant to the consultation process of Executive Order 13132, this section evaluates whether the rule may "impose substantial direct compliance costs" on state and local governments. EPA's 2008 guidance for compliance with Executive Order 13132 describes two numerical methods for evaluating whether an EPA rule may have federalism implications with respect to "substantial direct compliance costs":
 The $25 million test. Annualized direct compliance cost expenditures to state and local governments in aggregate of $25 million or more.
 The one percent test. Annualized direct compliance costs faced by state and local governments are likely to equal or exceed 1percent of their annual revenues.
As indicated in the UMRA discussion above, this RIA does not estimate any costs of the rule for state and local governments because there are no direct costs anticipated for state agencies and no government-owned entities were identified in the regulated universe. Thus, the rule would not result in substantial direct compliance costs, as defined in the EPA guidance, for entities owned by state and local governments. 
EPA does not estimate that the rule would affect the relationship between the federal government and the states or on the distribution of power and responsibilities among the various levels of government. 

5.6  Tribal Governments Analysis
Executive Order 13175, entitled "Consultation and Coordination with Indian Tribal Governments" (65 FR 67249, November 9, 2000), requires EPA to develop an accountable process to ensure "meaningful and timely input by tribal officials in the development of regulatory policies that have tribal implications." As indicated in the UMRA discussion above, EPA does not estimate any costs of the rule for state and local governments. Based on these results, the rule is not expected to impose a substantial burden on tribal governments.
5.7  Environmental Justice Analysis
Executive Order 12898 (59 FR 7629, Feb. 16, 1994) directs federal agencies, to the greatest extent practicable and permitted by law, to make environmental justice part of their mission by identifying and addressing, as appropriate, disproportionately high and adverse human health or environmental effects of their programs, policies, and activities on minority populations and low-income populations in the United States. Among other actions, the Order directs agencies to improve research and data collection regarding health and environmental effects in minority and low-income communities.
EPA does not estimate that the rule would result in disproportionately high or adverse impacts for minority or low-income populations. Overall, the Agency anticipates that the rule would reduce any adverse effects associated with the management of hazardous waste, thus benefiting minority and low-income populations. As the rule encourages environmentally sound recovery of hazardous wastes, it will likely reduce the risks associated with treatment, disposal, and recovery. In addition, by strengthening notification, tracking, and reporting requirements, the rule will ensure that hazardous wastes are managed at facilities with appropriate technologies and controls.
5.8  Children's Health Protection Analysis
Executive Order 13045, entitled "Protection of Children from Environmental Health Risks and Safety Risks" (62 FR. 19885, April 23, 1997) applies to any rule that: (1) is determined to be "economically significant" as defined under Executive Order 12866, or (2) concerns an environmental health or safety risk that EPA has reason to believe may have a disproportionate effect on children. If the regulatory action meets both criteria, the Agency must evaluate the environmental health or safety effects of the planned rule on children, and explain why the planned regulation is preferable to other potentially effective and reasonably feasible alternatives considered by the Agency. 
EPA does not anticipate that the rule would lead to a disproportionate negative impact on children. As described in the Environmental Justice section above, the rule improves the information available to EPA through notification, tracking, and reporting requirements, and provides for environmentally sound disposal and recovery. Therefore, EPA expects that the rule would reduce adverse impacts on children's health, both in the United States and in foreign countries. 
5.9  Energy Impact Analysis
Executive Order 13211, "Actions Concerning Regulations that Affect Energy Supply, Distribution, or Use" (May 18, 2001), addresses the need for regulators to more fully consider the potential energy impacts of regulatory action. Under this Executive Order, agencies are required to prepare a Statement of Energy Effects when a regulatory action may have significant adverse effects on energy supply, distribution, or use, including impacts on price and foreign supplies. Additionally, the requirements obligate agencies to consider reasonable alternatives to regulatory actions with adverse effects and the impacts that such alternatives might have on energy supply, distribution, or use.
The rule would not directly regulate energy production or consumption. In addition, with annualized costs of approximately $99,000 to $334,000, this rule is not considered an economically significant action under Executive Order 12866. 
Changes in the management of hazardous waste resulting from the rule are not expected to significantly impact energy production or distribution, as these changes relate only to reporting. More stringent reporting requirements may lead to changes in the management practices of hazardous waste in foreign countries, although the effect of these changes on energy use and generation is uncertain and likely to be minimal. Aside from the potential change in waste management practices described above, the requirements of the rule would have minimal impact on energy consumption; therefore, the rule is not expected to have a significant adverse effect on energy supply, distribution, or use. In addition, no measurable adverse impacts are expected on energy prices or foreign supplies.
5.10  Joint Impacts of Rules
The joint impacts of the Website and Revisions rules are presented in this RIA (see Chapter 6).  In addition, some of the exporters and importers regulated by the Website rule are also subject to other RCRA requirements. Combined, the change to the import-export requirements and existing regulations for hazardous waste generators and transporters would ensure that the management of waste by these entities subject to both sets of regulations is protective of human health and the environment.

CHAPTER 6  |  Joint Impacts of Rules
This chapter presents the cumulative cost impacts of both the Revisions and Website rule for two potential implementation dates. Exhibit 6-1 presents the total annualized costs and cost savings of the proposed Website rule and Revisions rule by provision using a seven percent discount rate and assuming the electronic system is implemented in 2018. Exhibit 6-2 presents the total annualized costs and cost savings of the rules by provision using a seven percent discount rate and assuming the electronic system is implemented in 2022. Exhibit 6-3 presents the cumulative cost of compliance as compared with the average NAICS revenue of potentially affected small businesses. This analysis supplements the regulatory flexibility analysis reported in Section 5.2 and estimates the burden on small businesses as a result of joint impacts of both rules.     
EXHIBIT 6-1.	Total Annualized Costs of the Proposed Website Rule and Revisions Rule by Provision ($2015) using a seven percent discount rate  -  2018 Electronic System Implementation Year 
                                    ROW[A]
                                 PROVISION[B]
                           TOTAL ANNUALIZED COSTS[C]
                       TOTAL ANNUALIZED COST SAVINGS[D]
                               NET COSTS[E=C-D]
                                REVISIONS RULE
                                       1
Reading the Rule
                                                                       $12,804 
                                                                            $0 
                                                                       $12,804 
                                       2
CDX Registration
                                                                        $5,386 
                                                                            $0 
                                                                        $5,386 
                                       3
Export/Import Notices
                                                                       $24,693 
                                                                        $3,058 
                                                                       $21,635 
                                       4
Re-notifications
                                                                          $184 
                                                                            $0 
                                                                          $184 
                                       5
Annual Report
                                                                          $232 
                                                                        $2,184 
                                                                       ($1,951)
                                       6
Contracts
                                                                       $31,161 
                                                                            $0 
                                                                       $31,161 
                                       7
Provide Acknowledgment of Consent to Transporter 
                                                                            $0 
                                                                      $467,034 
                                                                     ($467,034)
                                       8
Exception Report[2]
                                                                           $11 
                                                                           $10 
                                                                            $0 
                                       9
Movement Document
                                                                    $1,361,947 
                                                                           $35 
                                                                    $1,361,912 
                                      10
Certificate of Recovery
                                                                      $180,176 
                                                                           $35 
                                                                      $180,141 
                                      11
Return of Wastes
                                                                            $0 
                                                                            $0 
                                                                            $0 
                                      12
Exemption for Wastes Destined for Laboratory Analysis
                                                                          $338 
                                                                           $18 
                                                                          $320 
                                      13
AES Requirements
                                                                            $0 
                                                                            $0 
                                                                            $0 
                                      14
Obtain EPA IDs (recognized traders)
                                                                           $14 
                                                                            $0 
                                                                           $14 
                                      15
Sub-total: Industry Costs
                                                                    $1,616,945 
                                                                      $472,374 
                                                                    $1,144,571 
                                      16
Agency Costs
                                                                      $824,877 
                                                                      $238,416 
                                                                      $586,461 
                                      17
Revisions Rule Sub-Total[3]
                                                                    $2,441,822 
                                                                      $710,790 
                                                                    $1,731,032 
                             PROPOSED WEBSITE RULE
                                      18
Reading the rule
                                                                       $11,077 
                                                                            $0 
                                                                       $11,077 
                                      19
Posting confirmations of receipts and recovery to website
                                                                       $69,285 
                                                                            $0 
                                                                       $69,285 
                                      20
Website development
                                                                       $18,947 
                                                                            $0 
                                                                       $18,947 
                                      21
Proposed Website Rule Sub-Total[3]
                                                                       $99,309 
                                                                            $0 
                                                                       $99,309 
                     REVISIONS AND PROPOSED WEBSITE  RULES
                                      22
Total Costs[3]
                                                                     $2,541,132
                                                                       $710,790
                                                                     $1,830,341
Notes:
 Costs and cost savings for the Revisions rule are annualized over 20-year time horizon. Costs and cost savings for the Proposed website rule are annualized over 5-year time horizon.   
 Unless otherwise noted, values in this RIA reflect the assumption that 20 exception reports will be submitted.  The companion Revisions rule RIA includes an additional cost estimate for the submittal of 200 exception reports.  
 Totals may not sum due to rounding. Numbers in parentheses indicate a net cost savings.

Exhibit 6-2.	Total Annualized Costs of the Proposed Website Rule and Revisions Rule by Provision ($2015) using a seven percent discount rate  -  2022 Electronic System Implementation Year
                                    ROW[A]
                                 PROVISION[B]
                           TOTAL ANNUALIZED COSTS[C]
                       TOTAL ANNUALIZED COST SAVINGS[D]
                               NET COSTS[E=C-D]
                                REVISIONS RULE
                                       1
Reading the Rule
                                                                       $12,804 
                                                                            $0 
                                                                       $12,804 
                                       2
CDX Registration
                                                                        $5,214 
                                                                            $0 
                                                                        $5,214 
                                       3
Export/Import Notices
                                                                       $22,729 
                                                                        $3,058 
                                                                       $19,671 
                                       4
Re-notifications
                                                                          $184 
                                                                            $0 
                                                                          $184 
                                       5
Annual Report
                                                                          $232 
                                                                        $2,184 
                                                                       ($1,951)
                                       6
Contracts
                                                                       $31,161 
                                                                            $0 
                                                                       $31,161 
                                       7
Provide Acknowledgment of Consent to Transporter 
                                                                            $0 
                                                                      $467,034 
                                                                     ($467,034)
                                       8
Exception Report[2]
                                                                            $7 
                                                                           $10 
                                                                           ($3)
                                       9
Movement Document
                                                                    $1,361,947 
                                                                           $24 
                                                                    $1,361,923 
                                      10
Certificate of Recovery
                                                                      $121,128 
                                                                           $24 
                                                                      $121,104 
                                      11
Return of Wastes
                                                                            $0 
                                                                            $0 
                                                                            $0 
                                      12
Exemption for Wastes Destined for Laboratory Analysis
                                                                          $338 
                                                                           $12 
                                                                          $326 
                                      13
AES Requirements
                                                                            $0 
                                                                            $0 
                                                                            $0 
                                      14
Obtain EPA IDs (recognized traders)
                                                                           $14 
                                                                            $0 
                                                                           $14 
                                      15
Sub-total: Industry Costs
                                                                    $1,555,758 
                                                                      $472,345 
                                                                    $1,083,412 
                                      16
Agency Costs
                                                                      $824,874 
                                                                      $238,416 
                                                                      $586,458 
                                      17
Revisions Rule Sub-Total[3]
                                                                    $2,380,632 
                                                                      $710,762 
                                                                    $1,669,871 
                             PROPOSED WEBSITE RULE
                                      18
Reading the rule
                                                                       $11,077 
                                                                            $0 
                                                                       $11,077 
                                      19
Posting confirmations of receipts and recovery to website
                                                                      $303,968 
                                                                            $0 
                                                                      $303,968 
                                      20
Website development
                                                                       $18,947 
                                                                            $0 
                                                                       $18,947 
                                      21
Proposed Website Rule Sub-Total[3]
                                                                      $333,993 
                                                                            $0 
                                                                      $333,993 
                     REVISIONS AND PROPOSED WEBSITE  RULES
                                      22
Total Costs[3]
                                                                     $2,714,625
                                                                       $710,762
                                                                     $2,003,863
Notes:
 Costs and cost savings for the Revisions rule are annualized over 20-year time horizon. Costs and cost savings for the Proposed website rule are annualized over 5-year time horizon.   
 Unless otherwise noted, values in this RIA reflect the assumption that 20 exception reports will be submitted.  The companion Revisions rule RIA includes an additional cost estimate for the submittal of 200 exception reports.  
 Totals may not sum due to rounding. Numbers in parentheses indicate a net cost savings.

EXHIBIT 6-3.	PROFILE of small businesses affected by the rules and associated joint cost of compliance as a percent of Average annual revenues
                                  Entity type
                                  NAICS Code
                               NAICS Description
                       Number of Potentially Small Firms
                    Average NAICS revenue ($2015 Millions)
               combined first year cost of compliance ($2015)[1]
            combined first year cost as percent of average revenue
                      Firms affected at 
1 percent level
                      Firms affected at 
3 percent level
Exporters
                                    211111
Crude Petroleum and Natural Gas Extraction
                                       4
                                   $520 [2]
                                  $2,809.27 
                                    0.0005%
                                     None
                                     None

                                    324110
Petroleum Refineries
                                      10
                                    $7,700
                                  $2,809.27 
                                   0.00004%
                                     None
                                     None

                                    325180
Other Basic Inorganic Chemical Manufacturing
                                       1
                                   $520 [2]
                                  $2,809.27 
                                    0.0005%
                                     None
                                     None

                                    325199
All Other Basic Organic Chemical Manufacturing
                                       3
                                    $1,200
                                  $2,809.27 
                                    0.0002%
                                     None
                                     None

                                    325211
Plastics Material and Resin Manufacturing
                                       2
                                    $1,100
                                  $2,809.27 
                                    0.0003%
                                     None
                                     None

                                    325510
Paint and Coating Manufacturing
                                       1
                                     $210
                                  $2,809.27 
                                    0.0013%
                                     None
                                     None

                                    325992
Photographic Film, Paper, Plate, and Chemical Manufacturing
                                       1
                                     $420
                                  $2,809.27 
                                    0.0007%
                                     None
                                     None

                                    326150
Urethane and Other Foam Product (except Polystyrene) Manufacturing
                                       1
                                      $83
                                  $2,809.27 
                                    0.0034%
                                     None
                                     None

                                    327213
Glass Container Manufacturing
                                       1
                                     $120
                                  $2,809.27 
                                    0.0023%
                                     None
                                     None

                                    331110
Iron and Steel Mills and Ferroalloy Manufacturing
                                       5
                                    $1,000
                                  $2,809.27 
                                    0.0003%
                                     None
                                     None

                                    331512
Steel Investment Foundries
                                       1
                                      $77
                                  $2,809.27 
                                    0.0036%
                                     None
                                     None

                                    332911
Industrial Valve Manufacturing
                                       1
                                     $120
                                  $2,809.27 
                                    0.0023%
                                     None
                                     None

                                    334519
Other Measuring and Controlling Device Manufacturing
                                       1
                                      $46
                                  $2,809.27 
                                    0.0061%
                                     None
                                     None

                                    335314
Relay and Industrial Control Manufacturing
                                       2
                                     $160
                                  $2,809.27 
                                    0.0018%
                                     None
                                     None

                                    335912
Primary Battery Manufacturing
                                       4
                                     $310
                                  $2,809.27 
                                    0.0009%
                                     None
                                     None

                                    336320
Motor Vehicle Electrical and Electronic Equipment Manufacturing
                                       1
                                   $520 [2]
                                  $2,809.27 
                                    0.0005%
                                     None
                                     None

                                    336360
Motor Vehicle Seating and Interior Trim Manufacturing
                                       1
                                     $320
                                  $2,809.27 
                                    0.0009%
                                     None
                                     None

                                    336412
Aircraft Engine and Engine Parts Manufacturing
                                       1
                                     $400
                                  $2,809.27 
                                    0.0007%
                                     None
                                     None
Exporters (Continued)
                                    339112
Surgical and Medical Instrument Manufacturing
                                       1
                                     $130
                                  $2,809.27 
                                    0.0022%
                                     None
                                     None

                                    423930
Recyclable Material Merchant Wholesalers
                                      14
                                   $520 [2]
                                  $2,809.27 
                                    0.0005%
                                     None
                                     None

                                    424690
Other Chemical and Allied Products Merchant Wholesalers
                                       3
                                   $520 [2]
                                  $2,809.27 
                                    0.0005%
                                     None
                                     None

                                    522220
Sales Financing
                                       2
                                      $20
                                  $2,809.27 
                                    0.014%
                                     None
                                     None

                                    541512
Computer Systems Design Services
                                       2
                                      $14
                                  $2,809.27 
                                    0.020%
                                     None
                                     None

                                    541710
Research and Development in the Physical, Engineering, and Life Sciences
                                       1
                                   $520 [2]
                                  $2,809.27 
                                    0.0005%
                                     None
                                     None

                                    541711
Research and Development in Biotechnology
                                       4
                                     $7.8
                                  $2,809.27 
                                    0.036%
                                     None
                                     None

                                    561210
Facilities Support Services
                                       2
                                      $20
                                  $2,809.27 
                                    0.014%
                                     None
                                     None

                                    561910
Packaging and Labeling Services
                                       1
                                     $5.7
                                  $2,809.27 
                                    0.049%
                                     None
                                     None

                                    561990
All Other Support Services
                                       1
                                     $5.7
                                  $2,809.27 
                                    0.049%
                                     None
                                     None

                                    562112
Hazardous Waste Collection
                                       3
                                      $20
                                  $2,809.27 
                                    0.014%
                                     None
                                     None

                                    562211
Hazardous Waste Treatment and Disposal
                                       8
                                      $20
                                  $2,809.27 
                                    0.014%
                                     None
                                     None

                                    562920
Materials Recovery Facilities
                                       1
                                      $11
                                  $2,809.27 
                                    0.026%
                                     None
                                     None

                                    721110
Hotels (except Casino Hotels) and Motels
                                       1
                                      $17
                                  $2,809.27 
                                    0.017%
                                     None
                                     None

Unknown
                                       2
                                   $520 [2]
                                  $2,809.27 
                                    0.0005%
                                     None
                                     None

EXPORTERS TOTAL 
                                      87
                                       
Importers
                                    212291
Uranium-Radium-Vanadium Ore Mining
                                       1
                                    $16 [2]
                                  $6,534.36 
                                    0.041%
                                     None
                                     None

                                    423930
Recyclable Material Merchant Wholesalers
                                       1
                                    $16 [2]
                                  $6,534.36 
                                    0.041%
                                     None
                                     None

                                    541711
Research and Development in Biotechnology
                                       1
                                     $7.8
                                  $6,534.36 
                                    0.084%
                                     None
                                     None

                                    562119
Other Waste Collection
                                       2
                                      $20
                                  $6,534.36 
                                    0.033%
                                     None
                                     None

                                    562211
Hazardous Waste Treatment and Disposal
                                       5
                                      $20
                                   $6,534.36
                                    0.033%
                                     None
                                     None

Unknown
                                       6
                                    $16 [2]
                                   $6,534.36
                                    0.041%
                                     None
                                     None

IMPORTERS TOTAL
                                      16
                                       
Notes:
1.  Average first year cost of compliance for each Exporter and Importer firm was calculated as a weighted average within each entity type. The components of the weighted average are the average costs per entity exporting or importing to Canada, Mexico, OECD nations, and non-OECD nations. Each of these cost values were weighted based on the proportion of the total potentially small entity universe exporting or importing to each of these categories. 
2.  Within each Exporters and Importers, the average annual revenue calculated from all known NAICS code entities was applied to entities in NAICS codes with unknown annual revenues, and to entities with unknown NAICS codes. This value is $520 million for Exporters and $16 million for Importers.




APPENDIX A  |  Cost Impacts by Year
Exhibits A-1 and A-2 report the cost impacts of the proposed Website rule by year using discount rates of three and seven percent .
EXHIBIT A-1.COSTS OF THE PROPOSED RULE BY ENTITY TYPE AND YEAR - 2018 ELECTRONIC SYSTEM IMPLEMENTATION DATE 
                                  TOTAL COSTS
                                     YEAR
                                  ENTITY TYPE
                                     TOTAL

                              Exporters - Canada
                              Exporters - Mexico
                             Exporters - Non-OECD
                               Exporters - OECD
                              Importers - Canada
                              Importers - Mexico
                             Importers - Non-OECD
                               Importers - OECD

                                                                           2017
                                                                      $228,711 
                                                                      $142,646 
                                                                            $0 
                                                                       $20,190 
                                                                       $33,800 
                                                                        $7,727 
                                                                        $1,541 
                                                                         $1,076
                                                                      $435,692 
                                                         Total 
(Undiscounted) 
                                                                       $228,711
                                                                       $142,646
                                                                             $0
                                                                        $20,190
                                                                        $33,800
                                                                         $7,727
                                                                         $1,541
                                                                         $1,076
                                                                       $435,692
                                                   PV Total 
(3% discount rate)
                                                                       $228,711
                                                                       $142,646
                                                                             $0
                                                                        $20,190
                                                                        $33,800
                                                                         $7,727
                                                                         $1,541
                                                                         $1,076
                                                                       $435,692
                                                    PV Total
(7% discount rate)
                                                                       $228,711
                                                                       $142,646
                                                                             $0
                                                                        $20,190
                                                                        $33,800
                                                                         $7,727
                                                                         $1,541
                                                                         $1,076
                                                                       $435,692
                                          Annualized Cost[1]
(3% discount rate)
                                                                        $48,486
                                                                        $30,240
                                                                             $0
                                                                         $4,280
                                                                         $7,165
                                                                         $1,638
                                                                           $327
                                                                           $228
                                                                        $92,364
                                        Annualized Cost[1] 
(7% discount rate) 
                                                                        $52,131
                                                                        $32,514
                                                                             $0
                                                                         $4,602
                                                                         $7,704
                                                                         $1,761
                                                                           $351
                                                                           $245
                                                                        $99,309
Notes:
 Costs and cost savings are annualized over five years. 
EXHIBIT A-2.COSTS OF THE PROPOSED RULE BY ENTITY TYPE AND YEAR - 2022 ELECTRONIC SYSTEM IMPLEMENTATION DATE 
                                  TOTAL COSTS
                                     YEAR
                                  ENTITY TYPE
                                     TOTAL

                              Exporters - Canada
                              Exporters - Mexico
                             Exporters - Non-OECD
                               Exporters - OECD
                              Importers - Canada
                              Importers - Mexico
                             Importers - Non-OECD
                               Importers - OECD

                                                                           2017
                                                                      $228,711 
                                                                      $142,646 
                                                                            $0 
                                                                       $20,190 
                                                                       $33,800 
                                                                        $7,727 
                                                                        $1,541 
                                                                        $1,076 
                                                                      $435,692 
                                                                           2018
                                                                      $135,093 
                                                                      $137,069 
                                                                            $0 
                                                                       $11,310 
                                                                       $18,087 
                                                                        $1,509 
                                                                          $478 
                                                                          $421 
                                                                      $303,968 
                                                                           2019
                                                                      $135,093 
                                                                      $137,069 
                                                                            $0 
                                                                       $11,310 
                                                                       $18,087 
                                                                        $1,509 
                                                                          $478 
                                                                          $421 
                                                                      $303,968 
                                                                           2020
                                                                      $135,093 
                                                                      $137,069 
                                                                            $0 
                                                                       $11,310 
                                                                       $18,087 
                                                                        $1,509 
                                                                          $478 
                                                                          $421 
                                                                      $303,968 
                                                                           2021
                                                                      $135,093 
                                                                      $137,069 
                                                                            $0 
                                                                       $11,310 
                                                                       $18,087 
                                                                        $1,509 
                                                                          $478 
                                                                          $421 
                                                                      $303,968 
                                                          Total
(Undiscounted) 
                                                                       $769,084
                                                                       $690,923
                                                                             $0
                                                                        $65,430
                                                                       $106,148
                                                                        $13,764
                                                                         $3,454
                                                                         $2,761
                                                                      $435,692 
                                                   PV Total 
(3% discount rate)
                                                                       $730,866
                                                                       $652,146
                                                                             $0
                                                                        $62,230
                                                                       $101,031
                                                                        $13,337
                                                                         $3,319
                                                                         $2,642
                                                                     $1,565,571
                                                    PV Total
(7% discount rate)
                                                                       $686,300
                                                                       $606,929
                                                                             $0
                                                                        $58,499
                                                                        $95,064
                                                                        $12,839
                                                                         $3,161
                                                                         $2,503
                                                                     $1,465,296
                                          Annualized Cost[1]
(3% discount rate)
                                                                       $154,940
                                                                       $138,252
                                                                             $0
                                                                        $13,192
                                                                        $21,418
                                                                         $2,827
                                                                           $704
                                                                           $560
                                                                       $331,893
                                         Annualized Cost[1]
(7% discount rate) 
                                                                       $156,432
                                                                       $138,340
                                                                             $0
                                                                        $13,334
                                                                        $21,668
                                                                         $2,926
                                                                           $721
                                                                           $571
                                                                       $333,993
Notes:
 Costs and cost savings are annualized over five years.


