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Regulatory Update Articles

 

 

 

 

 

 

 

 

 

 

 

 

EPA TO REQUIRE ADDITIONAL TESTING AFTER TCE RISK ASSESSMENT

EPA will require the parties responsible for contamination at a California Superfund site to perform additional testing for trichlorethylene (TCE) because of concerns raised by a controversial agency risk assessment, which found that TCE posed a much higher risk of cancer than previously thought, according to agency sources.

The Region IX request marks one of the first instances that EPA has required additional testing for TCE in response to the risk assessment released last summer, and raises the possibility of additional widespread testing for the contaminant at numerous Superfund sites around the country, agency sources say. TCE is one of the most common Superfund pollutants and was a widely used degreaser at manufacturing and defense sites before its health risks were discovered.

The additional testing called for by the region confirms the fears of the industry and military officials who criticized the TCE review as flawed and worried that it would lead to additional cleanup costs. "It will require much more burdensome remediation plans," says one industry source, who says industry and the Department of Defense (DOD) "have been complaining to everyone who will listen" about risk assessment, including the White House Office of Management & Budget and Capitol Hill lawmakers.

According to regional sources, the request is being driven by a recent agency risk assessment that found cancer and a number of health risks from TCE to be much higher than previously thought. To be on the safe side, we’re asking that the [PRPs] do some air quality monitoring," says one source.

The risk assessment, approved by the agency’s Science Advisory Board in June, has been contested by the military and industry scientists who say the review has serious flaws, and will tighten current cleanup levels by a factor of five. DOD has estimated that the TCE risk assessment could lead to billions in cleanup costs.

The industry source declined to say which lawmakers may act on the TCE risk assessment, but predicts that the Armed Services committees may act "in the next few months."

(Superfund Report - October 14, 2002)

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INDUSTRY PRESSES EPA TO CLARIFY BROWNFIELDS LIABILITY PROVISIONS

Less than a year after President Bush signed the new brownfields liability relief law, industry officials are raising concerns that its liability provisions are ambiguous and fail to provide developers and investors with the necessary legal certainty they need to proceed with their development plans.

As a result, several industry attorneys and other legal experts are calling on EPA to clarify unresolved liability issues, either through guidance, rule makings or even congressional amendments in order to avoid litigating issues that courts have been forced to resolve in the past.

But one informed source fears EPA enforcement officials may be reluctant to quickly issue administrative clarifications on these liability provisions. The source says agency officials are considering draft guidance proposals to address some of the concerns.

Agency officials are still reluctant to reveal their plans, telling attendees at their recent Brownfields 2002 conference in Charlotte, NC, only that they are developing guidance and regulations to resolve some of the issues, although they have established no timeframes.

Chief among concerns is language in Subtitle B of the law, which amends the cost recovery provision of CERCLA to provide liability relief for bona fide prospective purchasers (BFPP) of brownfields as long as they meet several conditions. However, sources say the legislative language detailing these conditions is unclear and must be clarified.

Among the concerns is the requirement that a prospective purchaser make all "appropriate inquiry" into previous ownership and uses of a site, and whether that means full compliance with "American Society for Testing & Materials" standards, the procedures that direct how initial assessments of a property should be conducted.

In addition, to attain the BFPP exemptions, a person must exercise "appropriate care" by taking "reasonable steps" to stop continuing and future releases from occurring. Sources say that language is so vague it is scaring off potential buyers. "Could it mean full cleanup?" asks one source. "I would hope [it means] less, not more."

The fact that the BFPP exemptions only apply prospectively raises questions such as whether post-enactment tenant of a re-enactment owner is precluded from obtaining BFPP status, sources say.

Industry is also questioning what is considered a release under the law, noting that CERCLA defines a release as including leaching, which suggests a BFPP could have to undertake expensive remediation. "Where do you draw the line?" asked one official.

(Superfund Report - November 25, 2002)

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DEP GUIDANCE ON SOLID WASTE FACILITY; HARMS/BENEFITS ANALYSIS

On August 24, 2002, DEP issued important Guidance affecting the future permit approval process for Soil Waste Facilities. Key issues are:

  • The Department will perform the Environmental Assessment in Phase l or prior to other technical review for applicable municipal and residual waste permit applications. If the Department is aware of technical deficiencies or other issues that would preclude issuance of the permit, it may deny the application without conducting an environmental assessment review.
  • This policy applies to applications for municipal and residual waste disposal or processing permits specified in 25 Pa. Code §271.126 and §287.126 (relating to requirement for environmental assessment).
  • The environmental assessment is designed to ensure that environmental harms from proposed municipal and residual waste disposal and processing facilities are mitigated to the fullest extent possible. If harms are not completely mitigated, (and for facilities listed in sections 271.127(c) and 287.127(c)), the benefits of the project to the public must clearly outweigh the known and potential environmental harms. The term "clearly" refers to the level of proof required, not to the amount of the benefits provided in relation to the remaining harms.
  • Five general principles should be considered when evaluating harms and benefits in environmental assessments. These are discussed more fully throughout this document.
  • Compare the proposed facility or modification to the conditions that would exist if the project did not move forward and not to other potential uses of the property or to other properties.
  • Focus on harms and benefits that relate to the proposed modification when a facility has previously been subject to an environmental assessment.
  • Look at and beyond compliance with statutes and regulations. Harms may exist even when the law is complied with, and benefits may arise inherently from the project, through compliance with the law, or by intention.
  • Evaluate harms individually and collectively; evaluate mitigation measures individually and collectively; and evaluate benefits individually and collectively because impact from the facility may be greater than the sum of its parts.
  • Consider the anticipated closing of the facility in determining the duration of known and potential harms and benefits. Some harms and benefits will last for a limited time period and others may last longer even after the facility closes.
  • Environmental Harms and Mitigation
  • Under §271.127(b) and 287.127a(b), the applicant’s environmental assessment shall describe the known and potential environmental harms of the proposed project. These include, among other things, adverse impacts relating to traffic, aesthetics, noise, odor, dust, air quality and airport safely. The applicant shall provide the Department with a written mitigation plan that explains how the applicant plans to mitigate each identified known and potential environmental harm. If the Department or another person identifies additional environmental harms, the applicant must provide a mitigation plan for them, as well. The environmental assessment must also describe known and potential environmental harms that are not mitigated.
  • Harm from waste vehicles traveling to and from the facility should be considered. Vehicle-related harm is considered an environmental harm.
  • Something can amount to a harm even if it meets the requirements of the law.
  • An impact can also amount to a harm even if it occurs away from the host or local municipality.
  • Mitigation
  • The Department will evaluate each mitigation measure and will collectively review mitigation measures to ensure that individually and collectively they adequately protect the environment and the public health, safety and welfare.
  • The applicant must demonstrate that a proposed mitigation measure will have continuous and long lasting success.
  • A harm is not necessarily considered completely mitigated simply because the applicant has obtained a permit or approval from another Bureau of the Department or another Commonwealth agency.
  • Mitigation plans should be approved before a permit is granted and mitigation measures must be completed before the harm that is being mitigated occurs.
  • Applications that must identify benefits
  • Applications for the following types of facilities must demonstrate that the benefits of the project to the public clearly outweigh the known and potential environmental harms: municipal waste landfills, resource recovery facilities, construction/demolition waste landfills, noncaptive residual waste landfills, noncaptive residual waste disposal impoundments and noncaptive residual waste incinerators.
  • Benefits
  • An applicant must describe in detail the benefits relied upon. Section 271 and 287.127(c), (d) explain that the benefits of the project shall consist of social and economic benefits that remain after taking into consideration the known and potential social and economic harms of the project and shall also consist of the environmental benefits of the project, if any.
  • Benefits may arise inherently from the project (e.g., serving a need for disposal or processing capacity), or from compliance with the law (e.g., paying host municipality benefit fees and providing recycling drop-off centers), and benefits may also be intentionally created (e.g., charitable contributions).
  • As a general rule, the Department should compare the applicant’s proposal to the conditions that would exist if the project did not move forward in determining whether something amounts to a benefit, rather than comparing it to other potential uses of the property or to other properties.
  • Social and Economic Harm
  • Social and economic harms include, among other things, reduction in residential property values and interference with civic pride. Social and economic harms may be mitigated.
  • Balancing
  • The regulations require that the benefits of the project to the public clearly outweigh the known and potential environmental harms.

The factors that should be considered for each harm and benefit are the following:

  • Duration
  • Intensity.
  • Frequency.
  • Reach, or who will be affected.
  • Sensitivity of receptor.
  • Known or potential.
  • Other relevant factors.
  • Once each harm and benefit is evaluated individually with these factors in mind, it should be evaluated collectively; harms with harms, and benefits with benefits.
  • It must be clear to the Department that the project is more beneficial than harmful in order for it to proceed to the Phase ll (technical review) in the application process.

This Guidance will make it more difficult to site new solid waste facilities in PA. The industry has already challenged the harms/benefits analysis permitting approach (see the related article below). Stay tuned on this one.

– Gary Brown  

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PA DEP VAPOR INTRUSION GUIDANCE

PA DEP recently proposed changes to the Act 2 Land Recycling Vapor Intrusion Guidance. Key highlights are as follows:

  • If a property does not currently have dwellings (non-residential) and it is possible that future development will consist of occupied buildings (residential), the deed acknowledgment requirements shall apply pursuant to Chapter 250.303(g).
  • If a site has separate phase liquid (SPL) within 100 feet of the receptor and samples collected at 50 feet from the receptor indicate no SPL, then further soil gas sampling would not be required at the receptor. If SPL is found within 50 feet of the receptor, soil gas would be required at the receptor.
  • A responsible party needs only sample and analyze for those constituents pertaining to the particular release at the site that are on the COPIAC list or in Tables 1,2,4,5 in the Guidance. If the constituent is not listed in the tables and it is found to be a concern at a particular site, then a site-specific analysis should be used.
  • For soil gas sampling, at least 2 quarterly samples (spring & winter to account for seasonal variations) must be collected during evening hours.
  • Because sampling VOCs in indoor air can be complicated by these other sources of VOCs within a dwelling, the guidance gives an option of taking soil as measurements at a distance not to exceed 5 feet from the dwelling and compared to MSCs for soil gas.
  • Where OSHA regulations are applicable at the site including PELs, OSHA-derived screens may be used as an alternative to the default EPA-derived screen if so documented.
  • Specifics concerning soil gas and indoor air sampling are addressed in a Technical Guidance Manual TGM) revision.
  • It is recommended that soil gas samples be collected periodically (e.g., four quarterly samples over a year). The MA DEP guidance that is referenced recommends that 1-2 soil gas sampling probes be installed adjacent to the structure. Specifics concerning soil gas and indoor air sampling are addressed in a Technical Guidance Manual (TGM) revision.
  • If separate phase liquid (SPL) exists within 100 feet of a receptor, then sampling in or around the receptor to attain the Statewide Health Standard is required.

Revisions were made to toxicity values as follows:

  • Chloroform – new EPA RBC
  • Ethylbenzene - new Residential & Non-Residential MSC and EPA RBC
  • MTBE - new EPA RBC
  • PCE - new Residential and Non-Residential MSC and EPA RBC
  • TCE - new Residential and Non-Residential MSC and EPA RBC
  • 1,1,2 - Trichloroethane - new EPA RBC
  • 1,1 - Dichloroethene - new Residential and Non-Residential MSC

These changes may require further studies at many PA Brownfields sites where releases involve petroleum constituents or solvents. Additionally, for projects in progress, revisions to Act 2 Notices of Intent to Remediate may be needed as attainment of vapor intrusion standards is an "overlay" standard which may not have been considered during remedial investigation work. RT already has experience using the vapor intrusion standards at a number of solvent and petroleum release sites. Call Chris Orzechowski, 610-265-1510 x32 or Gary Brown, 610-265-1510 x34 for more information.

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PA WATER RESOURCES BILL PASSES

The House joined the Senate in late fall to send the bipartisan Water Resources Planning Act to Gov. Schweiker’s desk ending a more than 20 year effort to adopt water resources legislation to Pennsylvania.

"For three decades, Pennsylvania has relied on a water plan that provided little or no help in battling drought conditions," said Gov. Schweiker. "By their overwhelming bi-partisan approval, members of the General Assembly have joined this Administration to ensure that Pennsylvania will no longer sit back and wait for the next drought to occur."

This legislation will allow the Commonwealth to measure how much water we’re using and where water resources are in jeopardy. Those are tools we must have in order to protect one of our most important natural resources," added Gov. Schweiker.

The Act requires DEP to develop a new State Water Plan over the next five years working with both regional and statewide water resources advisory committees whose membership includes environmental, local government, technical and water user interests. The Plan will help answer three basic questions: How much water do we have? How is the water being used? Where will the demand for water outstrip the supply?

The Act, contained in House Bill 2302, specifically preserves the existing authority of DEP and local governments to regulate water. Governor Schweiker signed the bill before the end of 2002.

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ACCELERATION OF BROWNFIELD CLEANUP AND REUSE ANNOUNCED BY NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION

A new NJ DEP directive identifies and directs, pursuant to Executive Order No. 38, implementation of policy and program changes needed to reduce regulatory uncertainty, to reconcile business and regulatory decision timeframes, to expand potential reuses of brownfield sites, and to ensure that owners responsible for contamination no longer have the option of leaving their sites idle rather than meet their cleanup obligations. Each of these changes will be undertaken in consultation with DEP’s partners in brownfield redevelopment: The Office of Smart Growth and other offices of the Department of Community Affairs; the Economic Development Administration and other offices of the Department of Commerce, the State Planning Commission, the Brownfields Task Force, municipalities, and other interested constituencies.

Definitions

The term "brownfield" refers to, abandoned, idled, or underutilized industrial or commercial sites where expansion, redevelopment or reuse is complicated by actual or perceived environmental contamination. Brownfield sites may also include sites that were once heavily contaminated and where clean-up has been completed but redevelopment has not been initiated.

The term "smart growth area" means the State’s urban, suburban and rural population centers, the revitalization of which is essential to the prevention of sprawl and degradation of natural and agricultural resources and environmental quality. Smart growth areas shall be identified in coordination with the Office of Smart Growth in the Department of Community Affairs, the Economic Development Administration in the Department of Commerce, the State Planning Commission, municipalities, and interested constituencies.

Policy

DEP shall implement the following measures prospectively to encourage the remediation of reuse of brownfield sites, particularly in smart growth areas:

Reducing Regulatory Uncertainty

  • Office of Brownfield Reuse: The Department shall establish, within the Site Remediation Program, an Office of Brownfield Reuse. This Office shall serve as the focal point for the Department’s brownfield programs, and shall be charged with informing the public and those interested in brownfield reuse, about these programs. Furthermore, this Office shall develop and implement new policies and programs to encourage brownfield remediation and reuse, and shall set priorities among brownfield sites that may be appropriate for accelerated cleanup and redevelopment and shall directly oversee the remediation of high priority brownfield projects identified by the Department.
  • Liability Reform: The Department shall not assert liability for damages or compensatory restoration against non-liable brownfield developers at sites at which there is no historical natural resource injury. This policy shall not diminish responsibility for restoration actions that are inherent in remedial activity.
  • No Further Action Letters: The Department shall issue No Further Action Letters for soils when remediation of soils at a brownfield property is complete, but groundwater contamination may remain. The Department shall also issue No Further Action Letters for groundwater when a Classification Exception Area has been established for a brownfield site and natural attenuation has been approved as the appropriate remedial action.
  • Letting Developers Get to Closing: The Department shall permit non-liable brownfield developers to perform as necessary, a well survey, potable well sampling and analysis , and a determination of groundwater flow direction, promptly within thirty (30) days after purchasing a brownfield property, rather than requiring such developers to perform these activities prior to purchase. The procedures of current and proposed technical regulations and manuals shall conform to this policy.

Aligning Regulatory and Redevelopment Objectives and Timetables

  • Area-wide Brownfield Reuse Program: The Department shall establish an area-wide brownfield development program that will enable communities to plan comprehensively for the remediation and reuse of multiple brownfield sites. The Department will assist these communities through coordinated remediation oversight of the brownfield properties and assist with the coordination of relevant programs both within the Department and within other federal and state agencies. The first sites selected shall be in Camden, Elizabeth, and Trenton, with further sites to be selected through application to the Department. This program shall compliment applicable brownfield programs and incentives.
  • Expanded Use of Market Tools: The Department shall encourage the use of financial and market instruments to help manage and allocate financial risks associated with the uncertainties of complex and long-term cleanups while providing communities with greater assurance that clean-up requirements will be met. These may include the use of sureties, insurance products, and trust fund mechanisms to: a) manage or reduce risks of uncertainty concerning potential costs of future remedial decisions; b) allow brownfield developers of single sites in areas affected by ubiquitous groundwater contamination to resolve their groundwater liability through establishment of a groundwater trust for DEP to use for future and comprehensive groundwater remediation efforts; c) ensure the reliability of institutional and engineering controls, and where appropriate, to reduce the burden on the regulated communities of maintaining these controls; and; d) otherwise provide greater certainty to potential developers and greater assurance to communities that cleanup needs will be met.
  • "Clean-up Star" Program: The Department shall develop a "Clean-up Star" program to perform the role of environmental consultants and to accelerate brownfield site development. This program shall include the following elements:
    • a)Following reasonable public notice of selection criteria and expected qualifications, DEP will establish a list of pre-qualified consultant professionals sufficiently qualified to oversee remedial work with minimal oversight;

    • b) For developers and reasonable parties willing to select and fund the use of consultant professionals form the pre-qualified list and provide by contract with the consultant that the consultant will act at the direction of the DEP, DEP will make use of the consultant to expedite remedial analysis, evaluation and decisions;

    • c) DEP will make this option available initially at sites presenting relatively low or moderate risk and less complex clean-up challenges;

    • d) DEP shall develop appropriate auditing requirements and other safeguards to ensure that public health and environmental standards are rigorously enforced, and that pre-qualified professionals who perform inadequate work are removed from this list promptly;

    • e) DEP shall convene an advisory group of interested constituencies and appropriate representatives of interested labor organizations to oversee and guide implementation of this initiative;

    • f) The DEP labor management committee shall audit the program annually to ensure that it is not used to reduce or divert the internal staffing and resources devoted to site remediation;

  • Technical Review Panel: The Department shall establish a technical review panel, comprised of senior DEP technical staff, to expedite final clean-up decisions where remedial action has been delayed by disagreements between brownfield developers (or other responsible parties) and DEP case managers on the best approach to meeting standards and technical requirements to protect public health and the environment.

Expanding Potential Reuses of Brownfield Sites

  • Brownfields to Greenfields: The DEP Office of Brownfield Reuse shall coordinate with the Green Acres Program, the Division of Fish and Wildlife, municipal officials, and community and environmental leaders to identify opportunities to pilot new potential reuses for Brownfield sites. This effort shall focus particularly on identifying brownfield sites that may be used for residential development projects, for local and regional parks, for recreation areas, for off road vehicle use areas, and for natural resources restoration. Where bonafide conservation groups have an interest in stewardship at sites being restored for these purposes. DEP shall develop appropriate prospective purchaser agreements to address potential liability arising from ownership. The Office of Brownfield reuse shall identify at least two "brownfield to greenfield" pilots over the next twelve (12) months.

Promoting Cleanup and Reuse of "Warehoused" Sites

  • Zero Tolerance for "Warehousing:" Where industrial owners of contaminated brownfield sites have chosen to "warehouse" the properties by leaving them abandoned and avoiding or delaying remediation, the Department shall assist impacted communities to ensure that a beneficial reuse occurs. Where appropriate, the Department shall utilize its enforcement authorities to acquire remediation. Where a municipality determines to require a warehoused property through condemnation, the Department shall, in appropriate circumstances, partner with the municipality by a) allowing the municipality to assume a leading role in implementing remedial action; b) by providing appropriate assurances concerning the scope of liability; and c) by ensuring the responsible parties pay for the cost of remediation.

The Assistant Commissioner for site remediation shall report to the Commissioner on progress and achievements in implementing this directive on or before January 1, 2004. This directive is a statement of policy intended for the fair and efficient administration of the Department of Environmental Protection and shall not be construed to create any legal or equitable rights or to provide the basis for any judicial or administrative remedy.

RT believes that this Policy Directive, announced in late November, could help to advance NJ’s Brownfields Program. Reuse of Brownfield Sites in NJ, have been hampered by slow approvals and conflicting objectives. This directive helps give better direction to DEP staff and those involved in Brownfield Site Redevelopment, on how to proceed to reuse existing infrastructure and minimize sprawl. For more information call Tom Brady at 856-467-2276.

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CALIFORNIA CLEAN-AIR CZAR’S SHIFT IS NEW BOOST FOR DIESEL ENGINES

For three decades, Alan Lloyd has regarded diesel as a dirty word, synonymous with brown haze and cancer causing brown soot. It’s a view that he has shared with environmental activists across the U.S.

But in a striking change of heart that could alter the kinds of cars and trucks Americans drive, the chairman of the powerful California’s Air Resources Board is taking a new look at diesel vehicles. He thinks they are poised to emerge as part of the solution to a different environmental problem that’s gaining more attention in the U.S.: global warming.

Coming from the head of California’s pugnacious clean-air agency, that amounts to environmental apostasy. In the decades following World War II, California was a main instigator of the world’s fight against smog, and it has waged that battle aggressively ever since. CARB’s mandates for pollution cuts in everything from gas cans, to lawnmowers to 18 wheelers have been celebrated by environmentalists, criticized by industry and mimicked by national governments from Washington to Europe.

Nowhere has CARB been more aggressive than in it’s campaign to clean-up automobiles - a priority that reflects California’s position as the nation’s biggest single auto market; accounting for 12% of U.S. sales. Over the years, CARB’s edicts have often shaped Environmental Protection Agency policy and thus the way Detroit designs cars.

But now, Dr. Lloyd is being forced to address the issue of global warming, and here, diesel engines are the greener option because they don’t pump out as much so-called greenhouse gas as gasoline engines do. Diesels still aren’t as clean as their gasoline-powered cousins in terms of smog pollutants. But Dr. Lloyd says he has concluded that a new generation of high-tech diesels developed for Europe bears little resemblance to the smoke-spewers that Americans remember from the 1970s and the 1980s. He says he thinks it’s possible that within five years - tomorrow in the world of cars and trucks - the auto industry will have bridged the gap.

"Ten years ago, I wouldn’t have believed what I’m telling you now," says Dr. Lloyd, who in the past several weeks has begum a series of closed-door meetings with auto-industry officials to discuss several clean-car technologies. "However, we have confidence that, given our past history, the auto-industry will rise to the challenge, and we will have light-duty diesel in the U.S. and California."

Dr. Lloyd isn’t the only environmental official reassessing diesel. Earlier this year, EPA tested a new version of a diesel car from Toyota Motor Corp. that’s under development for future sale in Europe. The agency concluded that the car already meets a round of tough new smog standards that are set to phase in between 2003 and 2007 in the U.S. EPA officials are scheduled to explain those test results today at an auto-industry conference in San Diego. And they expect to test more diesel cars, as well as sport-utility vehicles from other manufactures before the end of the year.

"Clean diesel sounds like an oxymoron," says Margo Oge, head of the U.S. Environmental Protection Agency’s Office of Transportation and Air Quality. "It’s not."

Detroit’s Big Three and their European and Japanese rivals face growing pressure to make their vehicles more fuel efficient to reduce dependence on Middle East oil and help low global warming. Though the U.S. says that it won’t ratify the Kyoto treaty to curb global warming the specter of the California automotive greenhouse-gas-law - the first in the nation - and the likelihood of tougher, fuel economy standards, have the auto industry scrambling to make its vehicles more efficient. As "light trucks", a category that includes; SUVs, pickup trucks and minivans, have soared into popularity in the US, they’ve dragged down the average fuel economy of the fleet to the lowest level in two decades.

The industry argues that esoteric technologies such as battery-powered vehicles are impractical and won’t sell. With increasing frustration and urgency, auto makers are making the pitch to American regulators that a smarter response to the country’s fuel consumption can be found in the success of diesels across the Atlantic.

At the center of the debate is a contraption invented in the 1890s by the Paris born German scientist Rudolph Diesel. Unlike the traditional internal-combustion engines, which generates a spark to ignite fuel compressed with air in a cylinder, Dr. Diesel’s motor compresses the air inside the cylinder much more, making the air so hot that it when fuel hits it, it explodes without need of a spark.

Dr. Diesel’s "compression ignition" process produces more energy per unit of fuel than the spark method does. But because its combustion occurs at such high temperatures, the process also produces more nitrogen oxide, which contributes to smog. And because the diesel engine mixes the fuel with the air later than a gasoline engine does, some of the fuel remains unburned, producing soot particles.

Over the years, diesel’s relative efficiency won supporters on a continent where energy has traditionally cost more than in the US. After World War II, many European governments intentionally began stoking the diesel trend, implementing fuel taxes, that to this day, make diesel cheaper at the pump than gasoline. In Germany, a gallon of diesel costs an average of 3.32 ($3.25), while a gallon of standard unleaded gasoline costs 4.01.

Dr Lloyd’s reassessment of diesel was sparked by a chat that he had in July with his boss; Gov. Gray Davis. They were standing in a log cabin in the Presidio, a San Francisco park overlooking the Golden Gate Bridge, at a reception held after Gov. Davis signed the bill to cut automotive greenhouse-gas emissions.

The California legislation, set to take effect in 2009, marked a big defeat for auto makers. They saw it as threatening their ability to keep selling SUVs and pickups in the state that’s the biggest auto market in the nation. Even before the measure passed the legislature, industry officials said that they would challenge it in court.

Gov. Davis’ message to Dr. Lloyd at the Presidio was to try to head off a blowup over the greenhouse-gas-law. He said, "I want you to sit down with the auto companies and try to work something out," Dr. Lloyd recalls. He said " I don’ t want to put the auto industry out of business. We need to work together." and I said, "I get the message."

Two weeks later, in early August, Dr. Lloyd headed to Michigan for the auto industry’s annual get-together in the resort town of Traverse City. He sat up and took notice when he heard several presentations on the advances diesel have made in Europe, particularly one from Gerhard Schmidt, head of research at Ford Motor Company, and preciously a diesel expert at Germany’s Bayerische Motoren Werke AG. "Diesel emissions are not where we want them to be yet, but the trend is downward," Dr. Lloyd concluded approvingly.

Auto executives who have spoken to Dr. Lloyd recently say they’re taken aback by his new attitude. Reginald D. Modlin, director of environmental and energy planning for Chrysler, reported the news to his home office near Detroit after he talked recently with the regulator. "We took it back and said, ‘Alan just said something good about diesel!’ " Mr. Modlin recalls.

The big question is whether the industry will figure out how to make diesels that meet the new anti-smog rules. Unlike current standards, the new ones demand that diesels achieve the same low pollution levels as gasoline cars for nitrogen oxide, soot particulate and other pollutants. For an average passenger car, the new rules will require a 77% drop in nitrogen oxide emissions and an 88% drop on particulate emissions.

In practice, the standards will be even tougher in California than elsewhere in the country. Washington’s rules will let auto makers sell some diesel vehicles that emit more than the mandated average amount of some pollutants, as long as the companies offset those dirty vehicles with some extra clean ones. But the California rules require all vehicles to meet the average.

Auto executives say that they are hopeful, but not certain, they’ll be able to meet the anti-smog standards by 2007. Asked to rate the probability, Ford’s Dr. Schmidt says: "I would grade it higher than 50%."

Industry researchers are working on two main technologies. One is a "trap" to catch more soot particles before they are sent out to the tailpipe. Another is a "catalyst" to collect nitrogen oxide and then break up most of it into nitrogen and oxygen that would be released harmlessly into the air. A big hurdle is that the nitrogen-oxide device won’t work reliably with today’s US diesel fuel, which contains a lot more sulfur than European diesel does. New EPA rules lowering the sulfur content of US diesel to levels the auto industry says are acceptable aren’t scheduled to take effect until 2006.

Dr. Lloyd has his own incentive to resolve the fight: guarding California’s ability to keep pushing the environmental envelope which would be threatened if auto makers win the legal and political argument that California’s regulations are to extreme. "There will be some people on the environmental side who will be unhappy," the CARB chief says. "I’m getting older - I hope wiser - in some of these cases. I realize you have limited time as you try to work things out. And trying to waste energy with hot rhetoric, it’s not worth the time."

(By Jeffery Ball - The Wall Street Journal - 10/24/02)

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INSURERS WRITING THEM OFF - INSURERS ARE MOST LIKELY TO DENY OR CANCEL COVERAGE FOR HOMES - MOLD IS A KEY ISSUE

When it comes to homeowners insurance, honestly, it seems, is more likely to result in a policy.

At least that is what sellers and buyers are finding these days, according to real estate agents. Insurers are cautious about writing new policies just about everywhere, as if they are not abandoning states, they are making what they do offer more costly.

In addition, they are scrutinizing sellers and buyers much more carefully to check for things that might increase risk.

It seems the sellers forgot to mention claims they had made for water related damage on the disclosure forms.

People wanting to live in low and moderate income neighborhoods in Philadelphia and other older cities have long had trouble with obtaining comprehensive homeowners insurance at reasonable prices.

Over the years, owners of houses with flat roofs - as common as bricks in the city of row-houses - have been rejected, said Christopher J. Ryan, a broker with the Prudential Fox & Roach in the Art Museum area. Insurers have become stricter.

According to Robert P. Hartwig, vice president and chief economists of the Insurance Information Institute in New York, it "is the extraordinary number of catastrophes, the high cost of home repairs, the aging of the U.S. Housing stock and the emergence of mold claims that are pushing homeowners insurance rates upward."

Mold claims- virtually non-existent a few years ago - cost homeowners’ insurers more than $1 billion last year, about five times the cost in 2000, Hartwig said.

But that is not the whole story. Insurance experts and the National Association of Realtors suggest that, to compete for business, companies kept premiums artificially low in the middle to late 1990s, using high returns from Wall Street investments to make up the difference.

So, "if", as Hartwig contends, "homeowners’ insurers over the past decade paid out $1.18 in losses and expenses for every $1 they earned premiums," such pay-outs didn’t begin affecting the bottom line until investment income bottomed out.

In 2001, homeowners insurance paid out $8.9 billion more in losses and expenses than they received in premiums, Hartwig said. It was the second worst year on record (1992, and Hurricane Andrew produced $11.5 billion in losses).

Texas has been particularly hard hit by premium increases and insurance company pullbacks spurred by the multimillion dollar Ballard case, in which a jury decided that Farmer’s Insurance Co. - which with Allstate and State Farm, writes 66 percent of Texas’ policies - had mishandled a family’s claim for black mold damage to their house.

Farmers was going to pull out of the state entirely, but reached a compromise with the Texas Insurance Commission late last month that ended the threat for now.

Including the Ballard decision which is being appealed, Texas mold claims in 2001 cost insurers more than $850 million, compared with virtually nothing just a few years earlier, Hartwig said.

The number of mold claims in the state increased by 1,300 percent between the first quarter of 2000 and the fourth quarter of 2001, while insurer pay-outs through the third quarter of last year increased 1,200 percent, Hartwig said.

"Runaway costs associated with mold claims are having an adverse effect on the availability and affordability of homeowners insurance in Texas, and increasingly in other states," Hartwig said.

California, for example, has seen a large spike in water-damage claims, which often give rise to mold claims. Water claims accounted for 32 percent of all claims in 2001, up from 24 percent in 1997.

Over the same period, the average claims surged from $2,537 to $4,730, Hartwig said.

To weed out potentially troublesome customers, insurance companies have been turning to a resource that has been around since the late 1980s but was little used until the 1990s. It is called CLUE, which stands for Comprehensive Loss Underwriting Exchange. The computerized system, used by about 90 percent of underwriters, is a database of claims made by consumers.

It is through CLUE that insurers found out about the oversights on the two disclosure forms in Paoli.

(By Alan J. Heavens - The Philadelphia Inquirer - 12/15/02)

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OLD SINGLE WALLED PISTON HYDRAULIC LIFTS AND ELEVATORS BITING THE DUST

At RT Review Press Time, notices were going out from a number of elevator and lift service companies, that in 2003, they no longer accept environmental responsibility and lift maintenance responsibility for hydraulic piston driven elevators and lifts. The reason for this is an increasing number of releases from such units, where owners or property managers hold the service company responsible for the release.

These types of units suffer from many of the same deficiencies as underground storage tanks, in that piping systems can fail catastrophically due to air hammer or other pressure conditions causing blow offs at elbows, sometimes releasing the entire contents of the hydraulic reservoir into soil and/or groundwater in a number of minutes following the pipeline or fitting breakage. RT has experience at investigating and managing releases resulting from such failures at a number of sites, including releases in service facilities, malls, under office buildings, etc.

New double wall piston systems are available, but installation is both expensive and time consuming. Drilling rigs need to be set up in most cases to remove the old sleeves and pistons, frequently costing $15,000 to $30,000 per unit, with "downtime" of one to two weeks. Knowledgeable commercial property managers, who have looked at the situation from a "life cycle" standpoint, have reached the conclusion that electric elevators, or upgrading to electric elevators is the most cost effective long term approach. Further, major national owners of tire battery and auto centers generally made the decision to only use "aboveground" electric lifts, thus avoiding environmental liability concerns altogether, long ago. For more information on the hydraulic lift situation call Gary Brown at 800-725-0593 Ext. 34.

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PA SAFE FILL REGULATIONS MOVE TOWARD FINALIZATION

At RT Review press time, the Pennsylvania Department of Environmental Protection (PADEP) proposed Safe fill Regulations were moving toward finalization. In the closing of the months of the year 2002;

  • More than 100 sites were applying for general permits, after the DEP made available a new state wide general permit to allow for the maximum recycling of recycled asphalt pavement into sub-base, shoulder back-up and cold mix products. This major move by PENNDOT and the highway construction industry addresses any concerns that highway construction materials were not being managed in accordance with the residual waste regulations.

  • On behalf of the Pennsylvania Pavement Association, RT Environmental Services, working with Dennis Stainken, PHD, prepared an alternative "bioavailability" demonstration approach for meeting statewide health standards for arsenic. DEP’s current direct contact standard for 12 milligrams per kilogram, has been criticized as being set too low, below background levels of arsenic in soils in may instances. Use of an alternative "bioavailability" test to demonstrate attainment with the statewide standards would help resolve the key remaining technical concerns regarding the Safe Fill regulations, that contractors would have to manage large volumes of soil as waste even though they’re not really affected by "releases". The "bioavailability" leaching procedure has been used at several sites in NJ, gaining NJDEP approval, in some instances, to support residential development. PADEP will consider the approach in the next several months as an alternative attainment approach and it is hoped that DEP approval is gained for the bioavailability leaching approach such that this tool will be available early in the 2003 construction season.

  • DEP was planning to publish in the PA Bulletin, an Advance Notice of Final Rulemaking, after which there would be one final sixty day comment period, and possibly, public meetings. The final regulations would then come into effect early in the construction season, perhaps between March and June.
  • DEP has also been conducting outreach among various construction industry trade associations. Although Safe Fill materials management is a controversial issue, it is also true that there is a "plus side" for contractors after the regulations become finalized. Each year there have been a number of instances of litigation against contractors, who moved materials they thought were "clean" to other sites, only to find out that the material was contaminated and could be considered waste. In other instances, contractors were assured that the material was "clean", but when it was found out that the material was contaminated, illegal disposal was alleged to have taken place.

    Although many smart site owners have taken their sites through the Act 2 Land Recycling Program, finalization of the Safe Fill regulations will give another tool to earthwork, utility, and site work contractors to force owners to properly test materials, well in advance of contracting, so as to avoid liability, costly fines and large cost increases during the work at the site. Under the Act 2 program, there are also advantages where mildly impacted materials can be moved between Act 2 sites, with DEP approval. One site developer in Philadelphia saved nearly $200,000 in commercial facility site work by taking advantage of the Act 2 program. More options will be available under the Safe Fill regulation permit by rule provisions to facilitate such reuse of materials in the future. To take advantage of these options, it essential that owners plan now to follow the regulation and test sites in advance, as is already being implemented on many major projects.

    As a reminder, the 1996 Clean Fill Guidance Document issued by DEP, remains in effect; as was noticed in the Pennsylvania Bulletin last year, this document can be used in conjunction with the current residential state-wide health standards. If you would like a copy of the current limits that have to be used, or if you would like a summary of the proposed Safe Fill regulations, which all contractors need to be aware of, please stop by our web-site at www.rtenv.com, or call us at 800-725-0593.

    We will shortly be announcing a final round of training sessions throughout Pennsylvania, to be held in late February or early March, to review all final elements of the Safe Fill regulations, based on the Advance Notice of Final Rulemaking which is expected to be issued shortly. To make sure that you receive a copy of the seminar announcement, please call Valerie Powers at 610-265-1510, ext.24.

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    SWITCH TO WET CLEANING BENEFITS DRY CLEANERS

    Dry cleaners in two California counties who switched from chemical solvents to professional wet cleaning regard it as a good business decision and would recommend it to others, according to a new Occidental College study.

    Each of the five owner operated cleaners in the study - the first to assess the viability of the switch to wet cleaning by multiple cleaners - reported that they were able to process the full range of garments they had once dry cleaned, maintain comparable levels of customer satisfaction, and cut their operating costs.

    The study by Occidental’s Pollution Prevention Education and Research Center (PPERC), comes on the eve of a November 1 vote by the board of the South Coast Air Quality Management District (AQMD) on whether to become the country’s first air quality agency to require dry cleaners to phase out the use of perchlororthylene (perc).

    A chemical cleaning solvent used by 85 percent of all dry cleaners, perc is classified as a toxic air contaminant and a major groundwater pollutant in Southern California.

    Through these five case studies, we have learned about the keys to making a quick, smooth, and successful transition to wet cleaning," said Peter Sinsheimer, PPERC director and senior author of the report.

    Professional wet cleaning is one of several alternatives to the use of perc. Introduced in Germany in 1991, it is a non-toxic, water based system that uses computer controlled washing and drying machines, biodegradable detergents and specialized finishing equipment to clean wool, silk, rayon and other delicate fibers often labeled "dry clean only."

    The five cleaners who participated in the study have anywhere from two to 27 years previous experience as conventional dry cleaners and all had serious reservations at first about making the switch to wet cleaning - concerns that it might increase shrinkage, be more time consuming, or less effective.

    But after making the switch, each of the five" considered switching a good business decision, a fact that reflects their confidence in the quality of wet cleaning and their confidence in the system’s financial viability," the report states.

    The PPERC report is available at:

    http://departments.oxy.edu/uepi/pperc/resources/index.htm

    (Environment News Service - 10/30/02)

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    FIBERGLASS GASOLINE TANK SYSTEMS ARE SUSPECT SOURCES OF MTBE VAPOR RELEASES

    New studies of MTBE in California are suggesting that fiberglass underground storage tank systems may be the source of MTBE contamination in groundwater. Studies completed by the University of California, and new tracer type testing conducted at several hundred service station sites indicate that vapor releases of MTBE into soils have occurred at more then 60% of upgraded service stations. The mechanism for groundwater contamination is that once the MTBE vapor releases into soils, infiltrating rainwater interacting with the vapor contaminates the groundwater.

    The studies did not find that there were many "liquid" releases from underground storage tank systems. However, there is no current accepted methodology for testing fiberglass tanks and piping systems for MTBE vapor permeation. Vapor appears to be leaking near the tank top/fill areas. Upon urging from Florida Environmental Officials, EPA officials are now taking a more serious look at this issue.

    The California studies cause one to question why Stage II vapor recovery systems, were forced upon the petroleum industry, without testing to determine whether or not fiberglass piping systems could contain vapors. (Stage II vapor recovery systems return vapors from fueling to tanks with a vacuum assist.) It appears that the problem is that after MTBE gained favor as an oxygenate tank/piping system vapor releases became critical because MTBE vapors released into soil simply are not readily biodegrade. It is very disappointing that so many regulatory and technical changes were implemented without adequate environmental engineering studies and materials compatibility testing for a product, gasoline, which is ubiquitously used throughout the Country.

    Impacts on the Industry

    The California studies have been driven mainly by the new 0.005 gallon per hour (gph) lead detection requirement set forth by the State of California Water Resource Control Board. This new leak detection requirement is a magnitude of order less than the current standard set in many states, such as PA and NJ, of 0.05 gph, but as many in the industry know, California is a forerunner of environmental regulations, and likely a sign of things to come.

    Unfortunately, very few of the current tank monitoring systems can achieve this lower leak detection rate. One method that has shown very promising results is Tracer Testing. Tracer Testing is not a new technology, the method has been around for a number of years, but newer enhanced methods of employment are being developed. RT has been talking with Tracer Research, one of the few companies to offer the Enhanced Tracer Testing and currently approved by the State of California, to keep abreast of these new technology for our clients. According to Tracer Research, the technology is still in development and not readily available on the east coast. However, arrangements can be made to conduct a test at a site. Currently, the more advanced test costs about $10,000 to conduct for an average size gasoline retail station.

    The cost of the test is expected to decrease over the next several years as the technology improves and become more readily available. For now, RT recommends the Enhanced Tracer Test be considered for sites with suspect on-going releases, or for sites where MTBE releases appear to be a continual problem. If interested, please contact RT to discuss your specific situation.

    Peter Malik - Remediation Group Manager

    National Issues

    The California studies appear to show why MTBE releases are being found at so many service station sites, which is unsettling. It is a significant environmental engineering failure, that a "rush to judgement" to solve an air emissions problem resulted in impacts to groundwater throughout the Country. Lets hope that regulatory officials who should know how to properly implement major environmental programs with national significance move quickly to put proper engineering science behind future regulatory and legal mandates, and allow time for proper materials and compatibility testing.

    Basic environmental engineering common sense tells us that California studies have identified a major problem - underground piping and fillings used for vapor storage, usually fiberglass pipe, may not be an appropriate material for vapor containment. Of significance from a material standpoint is that aboveground piping, usually of steel or other metal construction is used in refinery and chemical plant applications. Pipes are usually aboveground so that any vapor leaks can be tested and repaired.

    We at RT are concerned that this problem has national significance, with added emphasis in California and New Jersey, where vacuum assisted Stage II recovery systems were required by regulatory agencies. Regulatory agencies throughout the nation should move quickly to determine the extent of this problem, and work through tank system piping replacement and upgrading needs, where found to be needed, to avoid further impacts to groundwater at retail service station locations. The very large volume of gasoline that we consume should make this a top priority.

    Gary R. Brown, P.E. - President

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