Document xDN3vD5dbdrVe8EXOzkEepDQ

ENVIRONMENTAL POLICY STAFF MONTHLY REPORT APRIL, MAY, JUNE, 1984 -MONSANTO ENVIROMCNTAL INFORMATION NETWORK Distribution List 218 G03032 TABLE OF CONTENTS UPFRONT Supreme Court Ruling is Partial Victory --------------EPA May Review Lasso Registration ---------------------Nitro Trial Underway -----------------------------------Monsanto Communicates Position on Agent Orange Settlement-----------------------------------------Monsanto Helps Launch Clean Sites, Inc. --------------Public Compensation a Major Emerging Issue ------------ l 1 2 2 2 2 PRODUCTS/ENVIRONMENT Superfund Sites Update ---------------------------------DMEH Industrial Health Lab Receives Accreditation ----Product Highlights -------------------------------------Fuhremann Chairs ACS Pesticide Risk Session ----------State Consumer Programs Heighten Waste Disposal Awareness -----------------------------------------Water Quality Report Available ------------------------Ground Water Protection Positions Defined ------------- 3 3 4 4 4 4 5 EMPLOYEE S/P LANTS Hazard Communication Guidelines in Effect ------------Use Care in Submitting Regulatory Information -------- Environmental Seminar Held for Brussels Employees ----Plant Water Quality Discharge Data in Review ---------Krummrich Plant Slated for Superfund Inspection ------OSHA Delays Issuing Revised Medical Records Standard -- Krummrich Receives Air Operating Permit --------------Maleic Anhydride Operating Permit Received by Pensacola -----------------------------------------Kuala Lumpur Plant Implementing Waste Water Program -EPA-PCB Inspection at Trenton Plant -------------------Corporate PCB Inventory Completed ---------------------PCB Verdict in Bad Axe, M i c h i g a n ----------------------- 5 5 5 6 6 6 6 6 7 7 7 7 LAWS/REGULATIONS Environmental Legislative Reauthorization Lags -------Legal Challenges to OSHA Standard Unresolved ---------1985 Budget Increase Proposed by OSHA -----------------EPA Drafts PMN R&D Exemption R u l e ---------------------More PMN Data Demanded by E P A -------------------------TSCA Import Rule Modified with Key B r o k e r s -----------EPA Challenges Confidentiality Claims -----------------Australia Formalizing Toxic Substances Control -------Update: EPA/OSHA Relationship - Section 9, TSCA ------EPA Discloses Intentions on Water Quality Permits ----- 7 8 9 9 9 9 10 10 10 11 $$ THE WIZARD OF ID-- By Parker and Hart IP&IMNP1H4t |g0 T ~ STOP USlN<MNMWl^ P1CUP ....Buringir /4W17IU faprcF/flir t&mcr J MU ' 0ToP T NcTTTHlN' wem-me nnv- , P4TUPg$! UPFRONT Supreme Court Ruling is Partial Victory The U.S. Supreme Court, on June 26, ruled that pesticide registration data containing trade secrets, submitted to the EPA, is indeed property and that a large portion of this data is protected by the Fifth Amendment. This ruling came in a case originally brought by Monsanto against the EPA in Federal District Court in which the Company challenged the constitutionality of certain provisions of FIFRA. The lower court found in our favor and the EPA appealed that ruling to the Supreme Court. While the Supreme Court did uphold the constitutionality of the FIFRA provisions we challenged, it made clear that our data submitted to the EPA between 1972 and 1978 cannot be taken without recognition of our rights as owners and that we must be compensated for any trade secrets that are used or disclosed by EPA. Data submitted before October of 1972 or after September of 1978 are given protection by provisions of FIFRA as amended in 1978. EPA May Review Lasso Registration A trade publication has said that the U.S. EPA may conduct a special review of alachlor, the active ingredient in Lasso herbicide, because of studies showing that rats and mice fed extremely large amounts of alachlor developed tumors. In a June 11 news release, Monsanto's Will Carpenter said that if the review is done, "The agency will evaluate the risks and benefits of the product. We believe that the results of any such evaluation will demonstrate that the enormous benefits to farmers and consumers far outweigh any risks suggested in laboratory tests and that the agency will continue the product's registration." - 2- Nitro Trial Underway On June 18 in the U.S. District Court in Charleston, W. Va., the trial began in the first test case involving seven of some 170 former Monsanto workers suing the company for more than $700 million for alleged health harm from workplace exposure to dioxin and other chemicals. The trial is likely to last several months. The plaintiffs are presenting their case first, so for the next few months, the media will report mostly their side of the story. When the company takes over, it will present a very solid scientific defense. The case is important both because of its financial size and because it is the first in which a federal court will be asked to rule on the human health effects of dioxin. Monsanto Communicates Position on Agent Orange Settlement Monsanto's position on the out-of-court Agent Orange settlement received widespread dissemination in employee communications and the national news media. President and Chief Operating Officer R. J. Mahoney, addressing the expense of a long trial, the negative media attention, and the potential damage to Monsanto's reputation as a concerned, sensitive, sociallyresponsible company, stressed that the settlement "should not be taken as a signal to others that it is 'open season' on Monsanto." The full text of Mr. Mahoney's comments, as it appeared in the St. Louis Post-Dispatch , is attached to the back of this report. Monsanto Helps Launch Clean Sites, Inc. On May 31, after 10 months of planning, Chairman Louis Fernandez joined other industry and environmental leaders in announcing the creation of Clean Sites, Inc., the new, non-profit company intended to clean up abandoned hazardous waste sites. Dr. Fernandez was instrumental in establishing Clean Sites, which has been endorsed by the EPA and whose efforts will supplement those of EPA. Other chemical organizations active from the beginning in creating Clean Sites include DuPont, Exxon Chemical and CMA. Dr. Fernandez will serve on the new company's nine-member board of directors. Clean Sites' first task is to hire staff and get organized. Which waste sites it will tackle first, and how Monsanto will participate in its activities are questions yet to be answered. A fact sheet on Clean Sites is at the back of this report. Public Compensation a Major Emerging Issue Indications are that the subject of public compensation will remain on the front burner throughout 1984 at the federal and state levels, with a growing number of hearings scheduled at both levels. On the national s c e n e T o m Evans and Bill McCarville f 3) - 3- provide Monsanto oversight on this issue through CMA's Public Compensation Committee, the U.S. Chamber of Commerce and the National Association of Manufacturers (NAM). At the state level, government affairs representatives report that public compensation is an issue in at least seven states: New Jersey, California, Massachusetts, Minnesota, New York, Delaware and Illinois. PRODUCTS/ENVIRONMENT Superfund Sites Update Through the first four months of this year, Monsanto has received 20 "Potentially Responsible Party" (PRP) notifications, with four being "Non-National Priority List" sites. The most recent notification of a PRP site: Sheridan Disposal Services in Fort Bend County, Texas. Monsanto involvement consists of 21,000 gallons of tank-car-cleaning and resin wastes. MFI is involved in PRP organization. The site is not, at present, on the national priority list. Woburn, Mass. -- EPA Region I has advised Monsanto that the Stauffer Chemical Phase II report should be available for review by late July or early August. EPA's notification is in response to our earlier indicated desire to review the report, following Stauffer's decision not to accept our offer of limited involvement in the Phase II study. Chem-Dyne, Hamilton, Ohio -- The court has ordered EPA to provide either a dollar or cleanup scope basis for settlement by August 1. Monsanto discussions with other defendants contributed to a more positive approch to settlement among various groups of principal responsible parties (PRP's). Seymour, Ind. -- The Justice Department reversed its position (page three - March EPS issue) and did not grant 60-day stays as requested by PRP's. However, expectations are that the government will not pursue active litigation in the immediate future with the extent of cleanup required still remaining to be defined. Monsanto and other PRP's reached agreement to engage a consultant to monitor and stay current with the EPA cleanup assessment study. DMEH Industrial Health Lab Receives Accreditation DMEH's Industrial Health chemistry group's laboratory in the St. Louis Research Center has received accreditation by the American Industrial Health Association (AIHA). The laboratory provides analytical support to non-routine special projects associated with Monsanto's industrial hygiene program. Chromotographic analysis of samples related to high hazard evaluations, employee complaints, unknown workplace contaminants and OSHA inspections are the main thrust of the laboratory. 4. D - 4- Product Highlights Asbestos: OSHA has issued its proposed standard for asbestos. It covers the possibility of including exposure levels geared to two different levels -- .2 and .5 fibers per cubic centimeter. Monsanto submitted its comments on the proposed standard by May 25 due date, and for a hearing scheduled for June 19. Issuance of the proposed standard follows the Agency's earlier request of the Federal Fifth Circuit Court for an emergency temporary standard which was denied. Formaldehyde: OSHA continues to be placed under pressure to react to formaldehyde concerns. However, the agency indicates that it has no intention, at this point, of yielding to the pressures. Benzene: OSHA's final draft of a proposed benzene regulation is nearing completion and is expected to be issued within the next several months. Fuhremann Chairs ACS Pesticide Risk Session Tom Fuhremann chaired a recent American Chemical Society symposium session on risk determination for agricultural workers from dermal exposure to pesticides. The ACS symposium on this subject is an area in which Monsanto has been developing data for assessing risks associated with its herbicides. Tom's selection to chair one of the symposium sessions was in recognition of his industry leadership role in this area. State Consumer Programs Heighten Waste Disposal Awareness Several states, among them Ohio, Maryland and Florida, are taking the initiative in launching consumer awareness programs aimed at the proper and safe disposal of hazardous substances by home users. Objective of the programs is to minimize the environmental impact of potentially hazardous substances used around the home and garden. More information on these programs is available from Bill Westendorf, St. Louis, 694-2193. Water Quality Report Available The Association of State and Interstate Water Pollution Control Administrators, in cooperation with the EPA, has issued a report entitled, "America's Clean Water," following a two-year study supported by a grant from the EPA. The report summarizes water quality of streams and lakes, discusses gains made in treatment and summarizes state programs. A copy of the report is available from operating company DEO's or C. D. Malloch, G3WG, St. Louis. Ground Water Protection Positions Defined The EPA defended its ground water protection strategy in recent testimony before a House Subcommittee. The agency's position is that states can, and should, have primary responsibility for ground water protection. Other testifiers expressed their concern that there was not appropriate quality/ quantity relationships addressed in EPA's proposed strategy. The chemical industry restated its earlier comments on the agency's proposed policy with a CMA representative testifying that EPA's strategy "will not result in comprehensive ground water management, will not recognize the primacy of the states management role, does not adequately address the many valuable uses of ground water, and does not realistically consider present sources of pollution." The general consensus is that ground water legislation is probably a year away from passage by Congress. EMPLOYEES/PLANTS Hazard Communication Guidelines in Effect The recently-issued Hazard Communication (right-to-know) Program Manual provides all plant locations with corporate policy guidelines for compliance to the new OSHA standard when it becomes effective. Design of this manual was also made with ultimate compliance to state laws in mind. The policy guidelines cover relevant information to be included on Monsanto labels to insure compliance to all state right-to-know laws as well as the Federal Hazard Communication Standard. Guideline instructions also are provided for revising all Material Safety Data Sheets to comply with the new OSHA standard. Use Care in Submitting Regulatory Information EPS's Mort Mullins cautions plant personnel and others who must submit information to regulatory agencies in support of permit application, periodic reporting or for other reasons to be factual and accurate, but not to volunteer information that is not sought. Unfortunately, business information claimed as "confidential" may wind up in public readingrooms of the regulatory agencies. Mort says that telling the regulators more than they want to know "can provide a competitor with a surprisingly complete process description of your plant." Environmental Seminar Held for Brussels Employees Approximately 250 Brussels office employees participated in a recent in-house seminar designed to broaden awareness of Monsanto's commitment to environmentally-safe manufacture, distribution and marketing of products. The two-hour program was well-received. Reaching a wider audience of Monsanto Europe-Africa employees with this kind of awareness program is being considered. $ - 6- Plant Water Quality Discharge Data in Review A corporate review of water quality discharge data by all plants is underway. Criteria used in the review, being conducted by Tom Hoogheem, include only data collected since January 1, 1982. Data collection guidelines: It must be representative of plant operations? it must have been collected using approved EPA sampling and analytical procedures; it must have had adequate quality control and assurance, and there must have been a sufficient quantity of data. The quantity question will be judged on the basis of a certain number of data sets, depending on the situation and the discharge. Where data gaps exist, corporate will make recommendations to each plant so that it can budget to fulfill the gaps for 1985. A target date of July 1, 1984 was set to allow operating companies and their plants to have their programs developed. Krummrich Plant Slated for Superfund Inspection Ecology and Environment, Inc., has notified the Krummrich plant that it has been contracted by the Region V EPA office to conduct a plant inspection under CERCLA. The EPA contractor will review areas identified by the plant in the submission of its 1980 CERCLA report. OSHA Delays Issuing Revised Medical Records Standard OSHA has indicated that it may not reissue a revised Access to Medical Records Standard until after the November election. This would seem to indicate that the agency has not accepted a court decision that the rule is a regulation, and not a standard. The agency is considering revising its proposal so that it may reintroduce it as a standard to force the court to reconsider its original decision. Krummrich Receives Air Operating Permit The State of Illinois EPA office approved Monsanto's Air Operating Permit for the Krummrich plant's Department 247 Santoflex operation. The permit runs for three years with expiration June 30, 1987. Maleic Anhydride Operating Permit Received by Pensacola The Florida Department of Environmental Regulation has issued a final operating permit for the Pensacola plant's maleic anhydride facility. The term of the permit is five years. Relief from the conditions of the previous permit was obtainedin several areas, including elimination of the VOC monitoring requirement. - 7- Kuala Lumpur Plant Implementing Waste Water Program The Kuala Lumpur plant has developed a comprehensive program to identify and characterize all of its wastewater streams. Indications are that the biological treatment plant will be capable of treating the effluent from the acid treatment process, the dilute acid stream, and the septic tank overflows. EFA-PCB Inspection at Trenton Plant An EPA-PCB enforcement inspection was held at the Trenton plant recently. Only seven minor points were noted and the inspector was generally complimentary of the plant's PCB records a n d 'compliance activities. Corporate PCB Inventory Completed The corporate inventory of all Monsanto U.S. sites has been completed. This information, required by TSCA for each site, is compiled annually to provide a reading on Monsanto's PCB disposal activities for the past year. Details of the inventory have been given to the DEOs. PCB Verdict in Bad Axe, Michigan A jury of six women in Bad Axe, Michigan awarded $810,000 to a rural Michigan farm family for economic loss and health effects alleged to have resulted from the use of PCBs in a sealant used to coat the insides of two dairy silos. Three additional Michigan silo-related cases have been consolidated for trial purposes. That trial is currently scheduled to commence next fall. Hundreds of PCB-coated silos exist throughout the Midwest. Monsanto is considering whether to appeal the Bad Axe verdict. LAWS/REGULATIONS Environmental Legislative Reauthorization Lags Congressional activity on national issues is expected to peak in the coming months as members of the House and Senate posture themselves for favorable media attention before the November elections. Environmental legislation is receiving considerable attention from Congress. However, nearly every piece of major environmental legislation remains to be reauthorized. One example: the size of the Superfund (CERCLA) funding task and taxation method continues to be debated. Studies by CMA, OMB, EPA and the Department of Commerce, all come to the conclusion that the task is beyond the scope of the present $1.6 billion fund and more likely to be in the $8 to $16 billion range for 1,400 to 2,200 sites. $ - 8- In other legislative highlights: -- Testimony on Senate amendments to the CAA and mark-up of S768 by the Environment and Public Works Committee have been completed. However, the general consensus at this time continues to be that there will be no final CAA legislation this year. -- On June 26, the House passed H.R. 3282, the Water Quality Renewal Act of 1984 by a vote of 405 yeas to 11 nays. The bill contains 57 sections, a few of which are of benefit to Monsanto (deadline extensions, ten year permit, and certain water quality/procedure studies). However, the bill does contain newly strengthened criminal and administrative penalty sections, post-BAT requirements and new water quality criteria provisions not viewed in Monsanto's best interest. The bill now goes to the Senate for their consideration. The Senate is considering its own, different water bill (S.431). It includes a pretreatment amendment introduced by Senator Symms in late June. The possibility of a conference passed bill in 1984 still seems doubtful. Senate staffs are currently developing amendments for TSCA in the following areas: Increased data requirements for premanufacturing notices. Less discretion regarding protection of confidential information. Mandated control of chemicals based on hazard assessments. Authorization of negotiated testing. The Senate initiatives are reasonably consistent with the House amendments introduced late last year. Monsanto and CMA are taking steps in dealing with these congressional concerns. The federal Insecticide, Fungicide and Rodenticide Act is generating little enthusiasm among members of Congress for extensive oversight or revision. It is anticipated that the current Act will be reauthorized for one or two years. Legal Challenges to OSHA Standard Unresolved As yet, no legal briefs have been entered concerning the challenges to the OSHA Hazard Communication (Right-to-Know) standard in the Appeals Court. The State of Illinois has joined New Jersey, New York and Connecticut as litigants of the challenge to the federal standard. The New Jersey State Chamber of Commerce is considering seeking a stay of the effective date of the state law. Monsanto supports this 4$ - 9- challenge as long as the Chamber group does not attempt to broaden the litigation to include the principle of preemption. Monsanto's overall position on this state/federal issue is for expeditious final settlement in the federal court. The states of Arizona, North Carolina, South Carolina and Tennessee are reported to be accepting the federal standard at their state levels. 1985 Budget Increase Proposed by OSHA A $5.1 million budget hike to $217.1 million is being sought by OSHA for its fiscal 1985 budget. The major increase covers statistical activity with little increase in enforcement and state programs and with virtually no increase for standards-setting and technical effort. EPA Drafts PMN R&D Exemption Rule EPA is nearing draft completion of a proposed premanufacturing notice (PMN) to cover R&D exemptions and the definitions of possession, control and data on related chemicals. These three issues were withdrawn from EPA's final PMN rule last year because of a CMA petition which showed serious industry burdens as then framed. The new rule being drafted is expected to closely follow the CMA suggestions on the three issues. The R&D exemption is particularly important to Monsanto. Current Research Center policy on dealing with new substances is expected to satisfy most, if not all, of the EPA requirements. Pilot plant operations will likely require more recordkeeping. Following the availability of EPA's draft for public comment, the proposed rule is expected to be published later this year. More PMN Data Demanded by EPA EPA continues to make liberal use of its authority to demand more PMN data under TSCA Section 5(e) authority. Recently, four Monsanto PMN's were caught in the 5(e) web, requiring numberous telephone discussions and several meetings with the agency. So far, our arguments have been successful, or we have agreed that additional testing is appropriate. TSCA Import Rule Modified with Key Brokers The Monsanto procedure for TSCA certification of imported chemicals (page nine, March EPS issue) was rejected by two of our key import brokers. The brokers were concerned that the Monsanto procedure, which involves our certification to the brokers for subsequent broker certification to customers, places too much regulatory liability on them. We have modified our procedure for these brokers by providing them with Monsanto facsimile certifications for use with their customers. - 10- EPA Challenges Confidentiality Claims More than 600 health and safety studies have been submitted to EPA by Monsanto under requirements of TSCA Section 4 (d) rules. Only a few of these submissions have claims of confidentiality, either for percentage components of formulation, process information or non-pertinent information such as on chemicals other than those covered in the rule. The Agency has challenged four of our confidentiality claims as being unauthorized and have required that we substantiate. We are substantiating our claims and believe that we can easily support our position of confidentiality in three of the four cases. Australia Formalizing Toxic Substances Control The Australian government is developing a premanufacturing notice (PMN) procedure to formalize voluntary toxic substances control. Indications are that Australia will develop their requirements more along the lines of the European 6th amendment than TSCA. Monsanto supports this approach. While the European system requires PMN testing, this disadvantage is offset by liberal exemptions and other advantages. The issue of protection of confidential information in Australia, however, is not resolved and is receiving the active attention of Monsanto. Update: EPA/OSHA Relationship - Section 9, TSCA Tom Evans and Ron Condray are jointly co-chairing an industry ad hoc committee to oversee the continuing relationship program between the EPA and OSHA concerning EPA's apparent interest in regulating materials in the workplace (Section 9, TSCA). EPA has stated that it would prefer to continue an informal relationship with OSHA, sharing the regulatory initiatives on a cooperative basis. OSHA management, on the other hand, feels very strongly that if they are pushed by EPA in this area, they will require that EPA formally use Section 9 of TSCA which gives OSHA the opportunity to accept or reject EPA's assessment and preclude EPA from regulating. The Monsanto and CMA position is that regulation in the workplace should be left with OSHA, not EPA. - 11- EPA Discloses Intentions on Water Quality Permits At a recent CMA Biomonitoring Seminar, EPA speakers stated that the agency intends to move slowly and cautiously toward implementing the water quality-based approach and toxicity limits. Expectations are that it could be as long as two years before the chemical industry would start seeing toxicity limits put into permits. EPA states the limits may be incorporated in a few permits in the next few years, to see how the process works. F K A X K ftI1 M 1 1 T BOBTHAVES tub numW one issusf WHY, TUBBNvifiom^ oF COu&E! -0 O 0 - Passion Too High, Spotlights Too Bright Why Monsanto Agreed To Settle With Veterans On Agent Orange By Richard J. Mahoney We settled this controversial case b ecause, when all the factors were weighed, it was the right thing to do. Contrary to what might have been printed or said In the settlement's aftermath, we settled in spite of out firm belief that we had a very strong case, and in spite o f the lack of scientific evidence that exposure to trace amounts of dioxin could cause the human health effects claimed by the veterans. But It sometimes happens in life that the right thing to do is different from being right Even though we believe that Monsanto and the other chemical companies involved in the suit were "right" on the legal issues, there were compelling reasons for not letting the suit go to trial. a For many years, this painful and complex case has been an enduring symbol for some Vietnam veterans. They believe that our country has treated veterans, at best, as invisible, and, at worst ns reminders of America's first military defeat. The anger and resentment of these veterans and their families focused, not surprisingly, on what they saw as a very concrete example of their country's lack of concern for their welfare. The Agent Orange case to them, and to many average citizens watching this issue debated on the evening news, was no longer simply a lawsuit against chemical companies. The question of whether or not dioxin exposure could reasonably be cited as a cause of their health problems was often confused by the larger social and political issues. To many observers, the case had become a "cause," a rallying point, representing the failure of our government to discharge its responsibility to those who had served It well. It should be noted that Judge Weinstein helped both the plaintiffs and the defendants focus our thinking on these larger issues; in other words, whether it was in the interests of either side for this case to go to trial, regardless of who was right or wrong. Seen from that perspective, the entire cause, if not the case Itself, was a loser, regardless of the outcome before a Brooklyn jury. As experience has taught us, causes are not won in courts of law-- they are decided before the people In the court of public opinion. We knew that there was no way to get the public or the veterans to focus on the more narrow legal Issues In the case. The level of passion was too high and the spotlights were too bright In the final analysis, Monsanto did not believe that anyone benefited from our company ' becoming part of the last battleground of the most divisive and painful Incident In our nation's recent history, the Vietnam War. By settling prior to the trial, Monsanto and the other defendants are agreeing to establish a $180 million fund from which the veterans and their families will be reimbursed for relevant medical expenses. The amounts proposed to be contributed by individual companies have been ordered by the Judge to remain confidential. Are the claims of these veterans and their families legitimate? Some veterans are suffering, as are members of their families. Their exposure, emotional tensions and risks were many and unusual in the Vietnam conflict No reasonable person could remain unmoved by what we've all seen and read, but we unequivocally maintain that there is no credible scientific evidence to suggest that their medical problems are caused by dioxin. Despite the evidence, the veterans, their.families, and many Americans will never believe that aHad we not settled, the case would have continued for years, and our being right In our own minds on the facts may not have been enough to convince the courts--or the world. We do not believe that the expense of a long trial, the negative media attention, and most important, the potential dam age to Monsanto's reputation as a concerned, sensitive, socially responsible company constituted an acceptable price to pay. On the other hand, the settlement is, in our opinion, a fair arrangement to put the Agent Orange case behind us once and for all. Our agreement to settle the case, however, should not be taken as a signal to others that IPs open season on Monsanto. There are still other dioxinrelated lawsuits In which Monsanto is a defendant The circumstances in those cases are vastly different and each will be Judged on Its own merit Recent scientific studies have confirmed our position that dioxin is not the dangerous chemical the public has been led to believe, and we have no Intention of allowing our decision on the Agent Orange case to be used as precedent In other cases. Richard J. Mahoney is president and chiefexecutive officer ofMonsanto Co. , The Conservation Foundation 1717 Massachusetts Avenue, N.W., Washington, D.C. 20036 Telephone (202)797-4300 Cable CONSERVIT FACT SHEET CLEAN SITES, INC. PRIVATE SECTOR ACTION TO SPEED THE CLEANUP OF HAZARDOUS WASTE SITES INACTIVE HAZARDOUS WASTE SITES -- A MAJOR NATIONAL CONCERN A major mismatch exists between the size of the hazardous waste site problem and the pace of cleanup. Since Superfund was enacted in 1980, the Environmental Protection Agency (EPA) has identified over 16,000 potential problem sites. 552 sites have been or are on EPA's National Priority List (NPL), and EPA has estimated that the List will grow to between 1,400 and 2,200. To date, only a few of these sites have been cleaned up with public funds. The potential for more costly and dangerous pollution, particularly groundwater contamination, increases as cleanup is postponed. Four major obstacles have slowed waste site cleanup: 1) An effective method for assessing liability among private parties has not been found. 2) Public policy has generally required too much technical certainty, too soon, in the cleanup process. 3) Not enough people have been involved who have the broad-based managerial skills required to accomplish the complex tasks in cleanup. 4) The current approach to cleanup has not allowed the cleanup process to be divided into discrete, manageable segments. -more- -2- CLEAN SITES, INC. -- A NEW APPROACH TO PRIVATE PARTY CLEANUP Clean Sites, Inc., a new nonprofit corporation, will increase private sector involvement in hazardous waste site cleanup, and speed the overall pace of remedial action. Clean Sites' efforts will supplement, not supplant, EPA and other government work under Superfund: The objective is to clean up sites additional to those the government will clean up. CSI's priorities for selecting sites are still under development. All work by Clean Sites will conform to EPA policy and be approved by EPA. EPA retains full authority to recover cleanup costs from responsible parties. Clean Sites depends upon effective enforcement and cleanup action by EPA to encourage private cleanup. Clean Sites is no substitute for Superfund reauthorization. Clean Sites, as a private entity, may be asked to enlist other private resources to assist in overcoming obstacles in the cleanup process: e Companies involved at waste sites will be helped to apportion responsibility and map out cleanup plans in a more candid, less adversarial atmosphere than now exists. Industry's deep reservoir of engineering, scientific, and, most importantly, managerial skills can be enlisted in ways that assure public confidence. Clean Sites will perform three important functions: 1) It will coalesce responsible parties, resolve disputes among them, and present allocations to the government. 2) It will assure the public and the government that private party cleanups are acceptable through technical asssistance, review, and close contact with affected communities. 3) Subject to EPA approval of plans, it will oversee the cleanup of sites, especially those that may involve both private and public money. -more- THE CLEAN SITES. INC.* ORGANIZATION Russell E. Train, EPA Administrator from 1973 to 1977, will chair the Board of Directors. Other Board members will include leaders from the industrial, environmental, and educational sectors, including: Douglas H. Costle, EPA Administrator from 1977 to 1981; Louis Fernandez, Chairman of the Board, Monsanto Company; William K. Reilly, President, The Conservation Foundation; Other Board members will be announced at the May 31 press conference. Dr. Charles W. Powers, Executive Director of the Health Effects Institute in Cambridge, Massachusetts, will serve as President. The President is also a Board member. Three operating divisions will report to the President: 1) A coalescing/dispute resolution group; 2) A group to evaluate the technical and scientific .adequacy of cleanups; and 3) A group to oversee the management of actual cleanup. Each division will also have an advisory board composed of distinguished experts in relevant disciplines. Clean Sites will use both permanent staff members and experts on loan from industry: By the end of its first year of operation, Clean Sites expects to have nearly 40 permanent and on-loan staff to begin work on 20 sites. By 1986, Clean Sites anticipates action on 60 sites annually. The bylaws and articles of incorporation for Clean Sites, Inc., have been filed in the District of Columbia and are public documents. -more- FUNDING FOR CLEAN SITES. INC Clean Sites' estimated operating budget will be $4.5 million during its first full year of operation, rising to $12 to 15 million in the third year and beyond. Clean Sites will depend initially upon voluntary contributions -- up to 50% of operational funds has been committed by the chemical industry. The remainder will be contributed by the other waste generating industries, including the motor vehicles, aerospace, rubber, petroleum refining, metal manufacturing, electronics, appliance, office equipment, and computer industries. Contributions also will be sought from private foundations. As Clean Sites develops a track record in accomplishing fast and effective cleanups, it expects to be increasingly supported by fees for its services. THE CONSERVATION FOUNDATION AND THE STEERING COMMITTEE PROCESS Clean Sites, Inc., is the product of ten months of discussions among chemical industry executives, leaders in the environmental community, and other prominent citizens. The Conservation Foundation, a Washington, D.C.-based foundation devoted to research and analysis of environmental issues, offered its good offices and support to study the issue of private sector cleanup. The Foundation convened a Steering Committee, chaired by Dr. Fernandez and composed of, in addition to Hr. Costle and Mr. Reilly: -- Henry L. Diamond, Partner, Beveridge and Diamond, and former Commissioner, New York State Department of Environmental Conservation; -- Robert C. Forney, Executive Vice President, E. I. duPont de Nemours & Company; Jay D. Hair, Executive Vice President, National Wildlife Federation; Edwin C. Holmer, President, Exxon Chemical Company; and -more- 0 -5 -- Robert A. Roland, President, Chemical Manufacturers Association. A working group was co-chaired by Dr. Powers and by H. Eugene McBrayer, Executive Vice President, Exxon Chemical Company. The group was voluntary and had no sanction from the federal government but was encouraged by EPA Administrator William D. Ruckelshaus. In its deliberations, the Committee and Working Group met with a wide variety of state and local officials, citizens in affected communities, members of public interest organizations, attorneys, and federal officials. -0-