Analysis - The Institute for Southern Studies

disposal units, can exceed the human health hazard quotient (HQ) or Maximum Contaminant Limit (MCL). Chapter 5 of this RIA
provides a list of contaminants of concern in CCR surface impoundment effluent and potential human health and environmental effects.
4. Dry CCR disposal risks: Human health effects from improperly managed dry disposal, which are based on ongoing research by EPA’s
Office of Research & Development (ORD), may pose greater risks than previously estimated by EPA in 2000 and 2007.
ES-4: Economic & Environmental Benefits from Future Increase in CCR Beneficial Uses by Other Industries
This RIA evaluated the potential impact that the CCR proposed rule may have on beneficial uses of CCR by other industries. Baseline CCR
beneficial use at the current 62 million tons per year rate (2009) is estimated in this RIA to provide $26 billion per year in nationwide social
benefits consisting of: (a) materials cost savings, plus (b) lifecycle avoided pollution benefits, plus (c) avoided CCR disposal costs to the
electric utility industry. On a present value basis over the 50-year future period-of-analysis (2012-2061) applied in this RIA, the present value
of CCR beneficial use amounts to $778 billion (@7% discount). Although the industries which use CCR for beneficial uses are not subject to
the requirements of the CCR proposed rule, this RIA presents three alternative scenarios of potential induced effect of the CCR rule on future
CCR beneficial use, consisting of increased use (scenario #1), decreased use (scenario #2), and no change (scenario #3). This RIA quanfities
both scenario #1 and scenario #2 incrementally in relation to the “no change” scenario #3. EPA believes the increasing beneficial use scenario
#1 is most likely because (a) the proposed CCR regulation is targeted at CCR disposal not at CCR beneficial uses, (b) all CCR regulatory
options retain the existing RCRA Bevill exemption for CCR beneficial uses, and (c) the added cost of regulatory compliance will make
beneficial use relatively more cost-effective and represent an “avoided disposal cost incentive” 4 to electric utility plants to increase their supply
of CCR to industrial markets for CCR as a raw or intermediate input into industrial manufacturing and construction activities. Furthermore,
EPA does not believe that market “stigma” of CCR regulation under RCRA Subtitle C --- as alleged in numerous stakeholder letters to the EPA
in 2009 --- will result in a reduction in future annual CCR beneficial use, because the proposed rule designates the Subtitle C option as a
“special waste” rather than as a “hazardous waste.” Summary Exhibit 3 below presents the results for both the increase scenario #1 and the
decrease scenario #2.
4 The concept of “avoided disposal cost incentive” is recognized and defined by the American Coal Ash Association (ACAA) on its website as follows:
“If a [coal-fired electric utility] plant markets its [CCR] into commercial applications, then disposal of this [CCR] is not required. Not only is a revenue stream
created for the [coal-fired electricity plant] but also the need to dispose of the [CCR] is avoided. As discussed above, disposal is not just the transportation and
placement of [CCR] in a disposal site. The need for future space is a concern. If [CCR is] marketed, then the need to develop future [CCR disposal] sites
(including land acquisition, permitting, design and construction costs) is avoided …. It is not uncommon for a company to help offset the costs of transportation or
placement at construction sites by providing the contractor or trucking firm a payment of some sort. For example, if the cost of disposal at a plant is normally four
dollars a ton, then the company may arrange a payment of four dollars or less to the contractors to cover transportation and placement costs. The difference
between the amount of this payment and the cost of disposal is also referred to as “avoided disposal costs.” Source: ACAA Frequently Asked Question nr. 14
webpage at: http://acaa.affiniscape.com/displaycommon.cfm?an=1&subarticlenbr=5#Q14
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