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Statement of Need: Only 25 percent of the facilities in this industry are currently regulated by national effluent limitations. Most of the industry has wastewater treatment that is inadequate, in terms of the best available technology. Those facilities that do have wastewater treatment designed those systems to meet effluent limits established by EPA over 20 years ago. The proposed MP&M limitations are based on technologies that achieve much lower levels of pollutants -- for example, an 80 percent reduction in cyanide and chromium.

Summary of the Legal Basis: The Clean Water Act requires EPA to establish effluent limitations guidelines and standards to limit the pollutants discharged from point sources. In addition, EPA is bound by a provision in a Consent Decree entered in settlement of Natural Resources Defense Council et al. v. Reilly (D.D.C. No. 89-2980) to propose regulations for this industry by October 2000.

Alternatives: The Clean Water Act directs EPA to establish a technology basis for the effluent guidelines. Limitations are based on the performance of specific technology levels, such as the best available technology economically achievable. EPA is considering a range of pollution control technologies and is also considering flow exemptions to reduce the impact on small dischargers

Anticipated Costs and Benefits: EPA expects effluent reduction benefits from more than 10,000 facilities. The estimated cost of the proposed rule is $1.9 billion, including operating and maintenance costs and annualized capital costs. For more than half of the facilities, the costs are less than $50,000 per facility. Higher costs are concentrated among a small segment of the industry. Estimated annual benefits range from $1.0 billion to $2.5 billion. These monetized benefits include health benefits (reduction in cancer and other illness), recreational benefits, and administrative savings from reduced pollutant loadings in biosolids.

Risks: EPA estimates that compliance with this regulation will reduce the annual discharge of conventional pollutants by at least 115 million pounds, priority pollutants by 12 million pounds, and non-conventional metal and organic pollutants by 43 million pounds. These reductions represent significant improvements in water quality. The amounts are substantial in terms of point source controls.