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Statement of Need: EPA is revising the definition of solid waste to increase recycling.

Summary of the Legal Basis: Association of Battery Recyclers v. EPA, 203 F. 2d 1047 (D.C. Cir. 2000); American Mining Congress v. EPA, 824 F. 2d 1177 (D.C. Cir. 1987) and other cases.

Alternatives: We have solicited comment in the proposal on several alternative regulatory options, including a broad exclusion for legitimately recycled materials, and are evaluating public comments on all available options.

Anticipated Costs and Benefits: If the exclusions are promulgated as proposed and are adopted by all states, EPA expects this action to result in a net effect of $107 million in average annual cost savings to about 4600 facilities in 530 industries, and is expected to remove from RCRA regulation 0.65 million tons per year of hazardous secondary materials currently managed as RCRA hazardous waste, and 0.06 million tons (9%) of hazardous waste that is currently disposed (i.e., landfilled or incinerated), which EPA expects may switch to recycling as a result of this rule. The breakdown of net cost savings per exclusion is $87 million per year for materials recycled onsite, by the same company, or through a tolling arrangement, $19 million per year for intercompany offsite recycling, and one million per year for case-by-case non-waste determinations. These estimates are within the uncertainty range of $93 million to $205 million in annual materials management cost savings, and 0.33 to 1.70 million tons per year in affected hazardous secondary materials, respectively, for the net effect of the proposed regulatory exclusions.

Risks: EPA has conducted three new studies that address the following risk-related questions: (1) How do recyclers ensure that industrial recycling is done in an environmentally safe manner?; (2) to what extent has industrial recycling resulted in past environmental problems?; and (3) are there certain economic forces that can explain environmental problems resulting from such recycling? EPA used these studies in developing our 2007 proposal.