Small
Business
Regulatory
Enforcement
and
Fairness
Act
Section
610
Analysis
the
Phase
III
Land
Disposal
Restriction
Rule
United
States
Environmental
Protection
Agency
Office
of
Solid
Waste
and
Emergency
Response
February
20,
2004
2
Introduction
Section
610
of
the
Regulatory
Flexibility
Act
as
amended
by
the
Small
Business
Regulatory
Enforcement
and
Fairness
Act
(
SBREFA)
requires
federal
agencies
to
periodically
review
regulations
to
determine
whether
or
not
they
have
had
a
significant
adverse
impact
to
a
substantial
number
of
small
entities.
Currently,
The
Agency
is
evaluating
whether
or
not
the
Phase
II
and
Phase
III
Land
Disposal
Restriction
(
LDR)
final
rulemakings
have
significantly
adversely
impacted
a
substantial
number
of
small
entities.
This
memorandum
presents
findings
of
the
SBREFA
analysis
on
Phase
III
of
the
LDR
rulemaking.

The
Phase
III
final
rule
was
promulgated
April
8,
1996
and
established
treatment
standards
for
newly
identified
listed
wastes
from
the
carbamate
industry
(
K156
­
K161)
and
spent
potliners
from
the
aluminum
industry
(
K088).
These
treatment
standards
are
expressed
as
a
numerical
standard
and
have
the
effect
of
requiring
that
these
wastes
be
treated
prior
to
being
land
disposed.

To
fulfill
its
obligations
under
Section
610
of
the
Regulatory
Flexibility
Act,
the
Office
of
Solid
Waste
is
conducting
an
economic
impact
screen
of
potentially
affected
small
entities
under
the
Phase
II
rule.
This
memorandum
presents
estimates
of
the
economic
impacts
of
the
Phase
III
LDR
final
rule
on
affected
small
entities
(
i.
e.,
small
businesses,
small
government
units,
or
small
nongovernmental
organizations
such
as
trade
associations
and
universities),
expressed
as
an
estimate
of
compliance
cost
to
sales
on
a
corporate
basis.

Methodology
&
Results
EPA
completed
data
collection
from
available
databases
including
the
1999
Biennial
Reporting
System
data
(
BRS)
and
Dun
and
Bradstreet
Spectrum,
as
well
as
literature
review,
phone
consultation
with
knowledgeable
authorities
and
other
data
collection
and
analysis
as
appropriate.

EPA
conducted
the
following
steps
to
complete
the
analysis:

1.
Identify
waste
handlers
who
manage
potentially
affected
volumes
of
hazardous
waste.

The
1999
BRS
data
were
used
to
identify
waste
handlers
who
manage
potentially
affected
volumes
of
newly
listed
carbamate
industry
wastes
(
waste
codes
K156
­
K161)
and
spent
potliners
from
the
aluminum
industry
(
K088).

2.
Identify
waste
handlers
from
Step
1
who
are
small
entities.

The
Agency
relied
primarily
on
Dun
and
Bradstreet
Spectrum
data
(
D&
B)
to
identify
any
waste
handlers
identified
in
Step
1
who
are
small
entities
as
defined
by
the
Small
Business
Administration
Table
of
Size
Standards
(
see
http://
www.
sba.
gov/
size/
indextableofsize.
html).
To
avoid
disclosure
of
proprietary
data
from
Dun
and
Bradstreet
facilities
are
represented
as
numbers
in
the
memorandum
instead
of
actual
facility
names
or
other
identifiers.
The
model
facilities
include
representations
of
affected
firms
and
summary
information
about
the
number
of
3
employees,
and
sales
for
the
industries
that
the
model
facilities
represent.
The
memorandum
does
not
include
any
data
regarding
the
names,
location,
number
of
employees
or
sales/
revenue
of
actual
small
entities
identified
through
data
collection
from
the
Dun
and
Bradstreet.

In
completing
this
step
diligent
efforts
were
made
to
identify
whether
each
facility
included
in
the
BRS
database
was
large
or
small.
However
because
of
variations
in
names
between
D&
B
and
BRS
as
well
as
name
changes,
facilities
and
companies
going
out
of
business,
a
determination
could
not
be
made
on
all
facilities.
In
total
there
were
70
facilities
disposing
the
waste
in
question
according
to
the
1999
BRS
data.
No
size
determination
could
be
made
on
approximately
10
percent
of
the
facilities
reported
in
BRS.
A
total
of
only
3
companies
were
identified
as
being
small.

3.
Calculate
cost
of
treatment
for
affected
small
entities.

Treatment
costs
for
the
listed
wastes
from
the
carbamate
industry
(
K156
­
K161)
and
spent
potliners
from
the
aluminum
industry
(
K088)
were
estimated.
Treatment
costs
only
include
the
treatment
for
the
specific
waste
code
and
do
not
include
treatment
for
underlying
hazardous
constituents.
The
waste
management
assumptions
for
each
of
the
three
small
companies
are
presented
in
Table
1.
Waste
volumes
are
omitted
to
avoid
disclosure
of
D&
B
data
required
to
complete
the
impact
analysis.

4.
Conduct
an
economic
impact
analysis
of
the
incremental
cost
of
treatment
to
the
sales
of
affected
small
entities
to
determine
if
there
are
significant
impacts
EPA
compared
the
incremental
compliance
costs
of
treatment
for
the
affected
waste
volumes
with
the
annual
revenues
for
the
small
companies.
Cost
impacts
are
presented
in
Table
2.
Costs
are
well
below
1
percent
of
sales,
the
highest
being
0.56
percent.
Because
of
the
relatively
low
impacts,
the
Agency
has
determined
that
the
Phase
III
LDR
restrictions
have
not
had
a
significant
adverse
impact
to
a
substantial
number
of
small
entities.

Phase
III
LDR
Small
Business
Baseline
and
Compliance
Management
Practices
Facility
Number
1999
Generation
Quantity
(
tons)
1
Baseline
Management
2
1999
Management
1
1
Assume
Subtitle
C
Landfill
at
Chemical
Waste
Management
of
the
NW
Assume
off­
site
management
at
Chemical
Waste
Management
of
NW
3
2
Assume
Subtitle
C
Landfill
at
Chemical
Waste
Management
of
the
NW
Assume
off­
site
management
at
Chemical
Waste
Management
of
NW
3
Phase
III
LDR
Small
Business
Baseline
and
Compliance
Management
Practices
Facility
Number
1999
Generation
Quantity
(
tons)
1
Baseline
Management
2
1999
Management
1
4
3
Assume
off­
site
incineration
of
waste
sludges
with
multiple
waste
codes
(
K161
and
Dcodes
1
Assume
Subtitle
C
Landfill
of
waste
solids
with
single
(
K161)
waste
code.
1
Assume
off­
site
incineration.

1
1999
generation
and
management
information
obtained
from
the
1999
Biennial
Report
Database
has
been
withheld
to
avoid
disclosure.
2
Baseline
management
method
information
for
generators
of
spent
aluminum
potliner
was
obtained
from
the
1995
Biennial
Report
Database.
3
The
Phase
III
LDR
K088
treatment
standards
became
effective
in
October
of
1997.
This
created
a
shift
in
management
practices
at
the
end
of
1997
to
the
Reynolds'
thermal
treatment
plant
in
Gum
Springs,
Arkansas,
and
Chem
Waste
Management's
on­
site
storage
facility
in
Oregon
(
near
the
City
of
Arlington).
A
$
245/
ton
1998
price
quote
(
treatment
=
$
80,
disposal
=
$
80,
and
storage
=
$
85)
for
the
Chem
Waste
Management
storage
facility
was
obtained
from
Federal
Register,
Volume
63,
Number
185,
September
24,
1998,
pp.
51260.
4
The
Phase
III
LDR
K161
treatment
standards
became
effective
in
July
of
1996.
The
listing
of
this
waste
as
hazardous
became
effective
prior
to
the
date
the
LDR
treatment
standards
became
effective
and
would
have
required
Subtitle
C
landfill.

Table
2.
Facility­
Specific
Summary
of
LDR
Phase
III
Impacts
on
Small
Businesses
Facility
Sales
1/
LDR
Costs
as
%
of
Sales
1
$
157,000,000
0.56%

2
$
124,000,000
0.48%

3
$
187,000,000
0.01%
1/
Sales
values
rounded
to
nearest
$
1
million.
