Elemental Mercury Management and Storage Fees, 70402-70410 [2019-27672]
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Federal Register / Vol. 84, No. 246 / Monday, December 23, 2019 / Rules and Regulations
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BILLING CODE 7590–01–P
DEPARTMENT OF ENERGY
10 CFR Part 955
RIN 1903–AA11
Elemental Mercury Management and
Storage Fees
Office of Environmental
Management, U.S. Department of
Energy.
ACTION: Final rule.
AGENCY:
The Department of Energy
publishes a final rule to establish a fee
for long-term management and storage
of elemental mercury in accordance
with the Mercury Export Ban Act.
DATES: This rule is effective January 22,
2020.
FOR FURTHER INFORMATION CONTACT:
David Haught, U.S. Department of
Energy, Office of Environmental
Management, Office of Waste Disposal
(EM–4.22), 1000 Independence Avenue
SW, Washington, DC 20585, Telephone:
(202) 586–5000, Email:
mercury.mgt.fee@em.doe.gov.
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SUMMARY:
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SUPPLEMENTARY INFORMATION:
I. Background
II. Discussion of Fee Basis
III. Response to Comments
IV. Regulatory Review
V. Approval of the Secretary of Energy
I. Background
Section 5(a)(1) of the Mercury Export
Ban Act, as amended (MEBA), 42 U.S.C.
6939f(a)(1), provides that the
Department of Energy (DOE) shall
designate a facility for the purpose of
long-term management and storage of
elemental mercury generated within the
United States.1 MEBA section 5(b)(1), 42
U.S.C. 6939f(b)(1), further provides that
DOE shall assess and collect a fee at the
time of delivery for providing such
management and storage based on the
pro rata cost of long-term management
and storage of elemental mercury
delivered to the facility. MEBA provides
that the fee shall be made publicly
available by October 1, 2018. MEBA
section 5(b)(1)(B)(i), 42 U.S.C.
6939f(b)(1)(B)(i). The fee may be
adjusted annually and shall be set in an
amount sufficient to cover costs
described in MEBA section 5(b)(2), 42
U.S.C. 6939f(b)(2), subject to certain
adjustments. MEBA section
5(b)(1)(B)(ii)–(iv), 42 U.S.C.
6939f(b)(1)(B)(ii)–(iv).
In accordance with MEBA section
5(b), 42 U.S.C. 6939f(b), DOE establishes
this fee after consultation with persons
who are likely to deliver elemental
mercury to a designated facility, and
with other interested persons. DOE
convened teleconferences from May
2017 through July 2019 and held a
meeting on August 1–2, 2018, in
Washington, DC, to discuss
considerations for the basis of the fee for
long-term management and storage of
elemental mercury including length of
time in storage, the cost of eventual
treatment and disposal technology, and
different operational scenarios.
Participants included representatives of
generators producing elemental mercury
incidentally from the beneficiation or
processing of ore, or related pollution
1 Elemental mercury stored at the facility will be
classified as a hazardous waste under the Resource
Conservation and Recovery Act and its
implementing regulations. MEBA Section 3
prohibits the sale, distribution or transfer of
elemental mercury stored by DOE, and MEBA
Sections 5(d)(1) and 5(g)(2)(B) require that the
elemental mercury be stored at facilities having
permits to manage RCRA hazardous waste (with the
exception of waste elemental mercury generated by
certain generators, and which is destined for the
long-term storage facility as allowed by 42 U.S.C.
6939f(g)(2)(D)). Based on the description of
elemental mercury that is destined for and stored
at the DOE long-term storage facility, the RCRA
hazardous waste code U151 applies (see 40 CFR
261.33).
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control activities. DOE also consulted
with members of the Environmental
Technology Council, a private
organization whose members include
persons likely to deliver elemental
mercury to the designated DOE storage
facility, on January 23, 2019.
The proposed rule would have
established the fee for long-term
management and storage of elemental
mercury at the designated DOE storage
facility as $55,100 per metric ton (MT),2
plus a receiving charge of $3,250 per
shipment. In response to comments
received regarding the proposed rule,
DOE has adjusted the fee downward to
$37,000 per MT. In accordance with
MEBA section 5(b)(1)(B)(ii), 42 U.S.C.
6939f(b)(1)(B)(ii), this fee may be
adjusted annually according to the
factors described in Section II,
Discussion of Fee Basis.
II. Discussion of Fee Basis
The fee per metric ton is the sum of
(1) the net present value of elementary
mercury storage for fifteen years using
the 15-year real interest rate from Office
of Management and Budget (OMB)
Circular A–94; (2) the pro-rated cost of
materials required for storage of
elemental mercury; (3) the present value
of the cost of transporting elemental
mercury from the storage facility to a
treatment facility in the sixteenth year
using the 15-year real interest rate from
OMB Circular A–94; and (4) the present
value of the cost of treatment and
disposal in the sixteenth year using the
15-year real interest rate from OMB
Circular A–94. While there is no current
regulatory framework to treat and
dispose of elemental mercury in the
U.S., DOE is assuming a scenario in
which there is treatment and disposal
capacity for high-concentration
elemental mercury waste in the future.
In accordance with 42 U.S.C.
6939f(b)(1)(B), because the designated
facility was not operational on January
1, 2019, DOE will adjust the fee adopted
in this final rule and assessed for
elemental mercury delivered to the
designated facility to subtract the cost of
the temporary accumulation for those
generators accumulating elemental
mercury in a facility pursuant to 42
U.S.C. 6939f(g)(2)(B) and (D)(iv) during
the period in which the designated
facility is not operational. The
subtraction will occur after receipt and
approval of invoices outlining
acceptable costs.
In accordance with 42 U.S.C.
6939f(b)(1)(B)(ii), DOE may adjust the
fee annually. As stated in the proposed
rule, DOE will adjust the fee by
2 One
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adjusting the parameters used in
calculating the fee. If this adjustment
results in a significant adjustment of the
fee, DOE will provide an opportunity for
public participation. The parameters
subject to adjustment are as follows:
• Number of years that elemental
mercury will reside in storage at the
DOE designated facility.
• Cost to store 1 MT of elemental
mercury for the number of years that
elemental mercury will reside in storage
at the DOE designated facility.
• Pro-rated cost of materials required
for storage of elemental mercury.
• Cost of transportation from the
elemental mercury storage facility to a
treatment facility.
• Cost of treatment of elemental
mercury, and disposal of the treated
waste form.
• Real interest rate from OMB
Circular A–94.
The breakdown of the storage cost per
metric ton is given by the following
table:
Year
Receipt
Management
Lease
Oversight
State tax
Removal
1 .....................
2–15 ...............
16 ...................
$570.00
..........................
..........................
$300.84
300.84
..........................
$300.84
300.84
..........................
$117.17
60.17
..........................
..........................
$120.34
120.34
..........................
..........................
$9570.00
The cost of storage from the table
above is $12,900. The net present value
of this total, using the 15-year real
interest rate from OMB Circular A–94
(1.45%), is $11,500. DOE has used 6
hours of labor at $95/hour for receipt of
each metric ton of elemental mercury
for unloading from transportation
vehicles, verifying compliance with
waste acceptance criteria, logging
receipt and placement in storage.
Storage costs are $300.84/MT-year for
management, and DOE has allocated
$30,234.42 lease costs across an initial
contracted inventory of 1,206 MT,
resulting in $300.84/MT in lease costs.
State taxes are computed at 20%
beginning 1 year after incurring the
management and lease expense.
Oversight expenses are computed at
10% of total annual costs for monitoring
of program performance and performing
audit functions to assure integrity of the
waste acceptance process. Finally, DOE
has used 6 hours of labor at $95/hour for
removal of elemental mercury from
racks, logging shipment and placing on
transportation vehicles awaiting
shipment to a treatment facility. DOE
has allocated the cost of acquiring racks
and other required materials for storage
across an initial contracted inventory of
1,206 MT, resulting in a per metric ton
cost for materials of $200/MT. Adding
the cost per metric ton of materials to
the net present value of the table above
results in a total cost of storage of
$11,700/MT.
The present value of the cost of
transportation in the sixteenth year
using the 15-year real interest rate from
OMB Circular A–94 (1.45%) is $800.
The current year cost basis is $1,000,
assuming approximately 1,800 miles
traveled.
The present value of the cost of
treatment and disposal of elemental
mercury in the sixteenth year using the
15-year real interest rate from OMB
Circular A–94 (1.45%) is $24,500.
The resulting fee per metric ton is
given by the following table:
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Total
$1,288.85
782.18
690.34
Consultation took the form of
meetings and teleconferences, from May
2017 through July 2019, with
representatives from Newmont Mining
Total ..............................
37,000 Corporation, Barrick Gold Corporation,
Coeur Rochester, Inc., and members of
III. Response to Comments
the Environmental Technology Council,
DOE published the proposed rule to
some of which had made the
establish the fee for the management
certification provided for in 42 U.S.C.
and storage of elemental mercury on
6939f(g)(2)(B) and were storing
October 4, 2019. (84 FR 53066). DOE
elemental mercury for clients until the
received comments from interested
DOE facility opens.3
parties that are available at the
As noted by commenters, DOE
following link https://
engaged in extensive discussions with
www.regulations.gov/docket?D=DOEstakeholders. During these discussions,
HQ-2019-0037. DOE responds to the
the basis for the fee calculation (i.e.,
comments received on the proposal in
storage for an unspecified, but limited,
this section, including changes made to
time followed by treatment and disposal
reduce the proposed fee that were made at another location) was presented.
in response to those comments.
Stakeholders provided information to
DOE that was evaluated as part of
Comment: DOE must withdraw the
development of the proposed rule. DOE
proposed rule.
shared its concerns with some of the
Response: As discussed in the
scenarios suggested by stakeholders
paragraphs that follow, DOE has
addressed the comments received on the during consultation.
In developing the proposed fee and
proposed rule that form the basis for the
the fee established in this final rule,
commenters’ withdrawal request and
with respect to storage costs, DOE used
has revised it accordingly. As a result,
DOE declines to withdraw the proposed source selection sensitive information in
accordance with Federal Acquisition
rule.
Regulation (FAR) 2.101 and FAR 3.104
Comment: DOE failed to provide
and is not approved for release to the
information in an accompanying
public. DOE received information on
administrative record that would allow
sufficient public review of the proposed preliminary pricing for treatment and
disposal that it determined was business
rule.
confidential information. DOE estimated
Response: As required by the Mercury
expected pricing for treatment and
Export Ban Act, as amended (MEBA),
disposal using publicly available pricing
DOE consulted with persons likely to
for similar treatment and disposal in
deliver elemental mercury to the
accordance with the DOE Cost
designated facility on the fee prior to
Estimating Guide (DOE–G–413.3–21)
publication of the proposed rule.
and found a reasonable expected price
Beginning in 2016, DOE contacted the
range of $24,000/MT to $34,600/MT.
operators of facilities that had made the
Since the preliminary pricing fell within
certification provided for in 42 U.S.C.
6939f(g)(2)(B) to collect information on
3 DOE also notes that it held an ex parte meeting
elemental mercury storage and who was with Environmental Technology Council (ETC)
using the storage. This led
members on November 21, 2019. At this meeting,
ETC members expressed their concerns with the
representatives of the Department to
rulemaking. The ex parte meeting has been
reach out to members of the mining
included in the record for this rulemaking and is
community and to the Nevada Mining
available at https://www.energy.gov/gc/legalAssociation.
resources/ex-parte-communications.
Storage cost ..........................
Transportation cost ..............
Treatment and disposal cost
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$11,700
800
24,500
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the expected cost range, DOE has
adopted $30,900/MT as the cost of
treatment and disposal. DOE used
information provided during the
consultation process as the basis for an
estimate for the costs to transport
elemental mercury from the storage
facility to a future treatment facility.
DOE used publicly available
information from OMB Circular A–94 as
a source for relevant interest rates.
Given the level of consultation and
engagement with persons likely to
deliver elemental mercury to the
facility, as well as, the straightforward
fee basis, DOE believes sufficient
information was provided to allow the
public to meaningfully comment on the
proposed rule and to support the fee
established in this final rule.
Comment: DOE failed to consider
alternatives to the scenario presented in
the proposed rule, including scenarios
presented during consultation.
Response: During consultation, DOE
discussed and considered scenarios
suggested by the meeting participants.
These discussions included the scenario
that ultimately became the basis for the
proposed fee.
The scenarios discussed included
indefinite storage (including storage at
Hawthorne Army Depot (HWAD)), and
storage for a relatively short period of
time until a regulatory framework for
treatment and disposal in the U.S.
becomes available, and subsequent
treatment and disposal in the United
States.
Commenters indicated that storage at
HWAD is significantly less expensive
than the basis for the proposed rule. On
multiple occasions since MEBA was
passed DOE discussed the use of HWAD
for storage of elemental mercury with
the Department of Defense (DoD),
including as recently as December 2018
and January 2019. During these
discussions DOE and DoD noted that 10
U.S.C. 2692 generally prohibits the
storage of non-defense toxic and
hazardous materials. The Secretary of
Defense may grant exceptions to this
prohibition when essential to protect
the health and safety of the public from
imminent danger if the Secretary
otherwise determines the exception is
essential, and if the storage or disposal
authorized does not compete with
private enterprise. However, neither of
these conditions can be met because
elemental mercury is currently being
stored safely at privately owned
facilities that made the certification
provided for in 42 U.S.C. 6939f(g)(2)(B),
and DOE has evaluated reasonable
alternative locations for storage of
elemental mercury.
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Comment: The use of a leased facility
is not permitted under MEBA.
Response: The phrase ‘‘facility or
facilities of [DOE]’’ is not defined in
MEBA. DOE operates at both DOEowned and -leased facilities, and DOE
has construed the term ‘‘DOE facility’’ to
refer to an assortment of ownership and
lease relationships. MEBA Section 5(f)
authorizes DOE to establish such terms,
conditions, and procedures as are
necessary to carry out MEBA Section 5.
As noted in the Long-Term Management
and Storage of Elemental Mercury
Environmental Impact Statement (EIS)
at page 1–3 fn. 2, DOE has interpreted
MEBA Section 5 to authorize DOE to
designate existing and/or new storage
facilities at property owned or leased by
DOE.
Comment: DOE has included costs in
the fee basis that are not recoverable
under MEBA.
Response: MEBA section
5(b)(1)(B)(iii), 42 U.S.C.
6939f(b)(1)(B)(iii), provides that fees
shall be set in an amount sufficient to
cover costs set forth in MEBA section
5(b)(2), 42 U.S.C. 6939f(b)(2). Such costs
are costs to DOE of providing
management and storage, including
operation and maintenance, security,
monitoring, reporting, personnel,
administration, inspections, training,
fire suppression, closure, and other
costs required for compliance with
applicable law.
In accordance with MEBA, the costs
associated with land acquisition or
permitting of the facility under the Solid
Waste Disposal Act or other applicable
law are not recoverable. The DOE lease
agreement for elemental mercury storage
only includes a leasehold interest in the
portion of the buildings used only;
therefore, the lease arrangement does
not qualify as land acquisition. DOE has
received a cost estimate of necessary
permit modifications but has not
included them in the fee basis. No
building design or construction costs
have been incurred and included in the
basis for the fee calculation.
In summary, DOE did not include any
non-recoverable costs in the basis for
the proposed fee. In addition, DOE
plans to fulfill its elemental mercury
storage mission by hiring a contractor to
operate the facility; therefore, DOE
believes the inclusion of contractors’
profit is a recoverable cost under MEBA.
Comment: DOE failed to consult with
persons likely to deliver elemental
mercury as required by MEBA. DOE
should provide summaries of the
meetings and teleconferences.
Response: As required by MEBA, DOE
consulted with persons likely to deliver
elemental mercury to the designated
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facility on the fee prior to publication of
the proposed rule. This included
meetings and teleconferences conducted
between May 2017 and July 2019 with
persons representing Newmont Mining
Corporation, Barrick Gold Corporation,
and Coeur Rochester, Inc., and members
of the Environmental Technology
Council, some of which had made the
certification provided for in 42 U.S.C.
6939f(g)(2)(B) and are storing elemental
mercury for clients until the DOE
facility opens.
During consultation, DOE discussed
and considered scenarios suggested by
the meeting participants. These
discussions included the scenario that
ultimately became the basis for the
proposed fee.
The scenarios discussed included
indefinite storage (including storage at
Hawthorne Army Depot (HWAD)), and
storage for a relatively short period of
time until a regulatory framework for
treatment and disposal in the U.S.
becomes available, and subsequent
treatment and disposal in the United
States.
As noted above, DOE evaluated the
use of HWAD with DoD. During
consultation, DOE kept participants
informed of the results of its
investigations.
During a meeting in Washington, DC,
on January 23, 2019, DOE presented
information to members of the
Environmental Technology Council
(ETC), some of which had made the
certification provided for in 42 U.S.C.
6939f(g)(2)(B) and are storing elemental
mercury for clients until the DOE
facility opens. Additionally, DOE spoke
with a representative of ETC on
multiple occasions to apprise ETC of the
status of preparing the proposed rule
and the development of the fee basis.
DOE also has maintained a dialog
with appropriate personnel from the
Nevada Department of Environmental
Protection and the Texas Commission
on Environmental Quality during the
development of the proposed rule.
DOE believes the level of outreach
and consultation that the agency
engaged in meets the requirements of
MEBA. DOE provided further
opportunities for input from interested
parties and the public through
publication of the proposed rule and
solicitation of comments.
Comment: DOE provided insufficient
time for the public to comment on the
proposed rule and should extend the
public comment period.
Response: Given the extensive
discussions with stakeholders, the
straightforward fee basis, and the fact
that the proposed fee was based on a
scenario discussed multiple times
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during the consultations, DOE did not
believe extension of the public comment
period was necessary.
Comment: DOE failed to consider less
expensive options.
Response: DOE based the proposed
fee on information received from a U.S.
vendor in response to a solicitation in
preparing the proposed rule. In 2017,
DOE compared the response to the price
for elemental mercury storage by
companies engaged in elemental
mercury storage that had made
certifications in accordance with 42
U.S.C. 6939f(g)(2)(B). Among those
companies that responded, the only
company that provided specific pricing
information indicated $1,200/MT-year
was their price for this service. This
price information was confirmed by
stakeholders that are users of these
facilities during consultation. In 2019,
DOE also reviewed the responses to a
Request for Expressions of Interest
received from multiple potential
offerors before the solicitation was
issued. This led DOE to the conclusion
that a reasonable market price for
storage of elemental mercury was in a
range of approximately $1,000/MT-year
to $2,200/MT-year. Since the average
annual cost of storage in the scenario
used as the basis for the fee is $780/MT,
DOE considers this basis to represent a
cost-efficient approach.
Several comments were received
suggesting that the price for storage
should be more on the order of $80/MTyear, some suggesting that this is the
cost of storage at HWAD. HWAD storage
of elemental mercury is not subject to
the Resource Conservation and
Recovery Act (RCRA), nor is it required
to accept shipments from sources as
varied as those expected at the DOE
designated facility. DOE is unable to
verify the components of the suggested
HWAD costs in order to appropriately
make a direct comparison to HWAD.
DOE contacted DoD regarding the
possibility of using HWAD as the DOE
facility for long-term management and
storage of elemental mercury and found
that, in accordance with 10 U.S.C. 2692,
the facility was prohibited from
accepting non-defense related
hazardous waste. As discussed in
response to an earlier comment, to
waive the prohibition, two conditions
must be met: (1) There must be an
imminent danger to public health and
safety; and (2) the storage must not
compete with private enterprise. Since
neither of these conditions could be
met, DOE determined that use of HWAD
as the DOE facility for long-term
management and storage of elemental
mercury was not viable.
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DOE has not proposed to treat
elemental mercury in the United States
and dispose of the resulting mercury
compound in Canada. DOE notes,
however, that treatment of elemental
mercury in the United States and
subsequent disposal of the resulting
mercury compound in Canada is an
option for generators of elemental
mercury.
Comment: DOE is using an escalation
rate for storage costs that is too high.
Response: DOE has revised the fee
basis to use discounted funds and has
eliminated the escalation rate used in
the proposed rule. Consistent with
discussions with participants during
consultation, OMB Circular A–94 rates
are used. The fee basis has been revised
using the 15-year real rate from OMB
Circular A–94 (1.45%).
Comment: DOE should have used
discount rates rather than escalating all
costs.
Response: DOE has revised the
calculation of the proposed fee to use
discounted funds and has eliminated
the escalation rate used in the proposed
rule. The resulting fee basis has been
reduced from $55,100 per MT plus a
receiving charge of $3,250 per shipment,
to $37,000 per MT.
Comment: DOE failed to provide an
explanation for the receiving charge.
Response: The receiving charge is the
cost of purchasing required materials,
unloading the elemental mercury from
the truck, moving it to its storage
location, checking compliance with the
Waste Acceptance Criteria and logging
the shipment.
In response to comments received on
the proposed fee, DOE has revised the
fee basis to allocate the receiving charge
on a per MT basis. As a result, the
additional per shipment charge has been
deleted.
Comment: DOE failed to provide an
explanation for the removal charge.
Response: The removal charge is the
cost of removing elemental mercury
from storage, loading it onto a truck and
logging the shipment. This charge is
allocated on a per MT basis.
Comment: DOE failed to provide an
explanation for the transportation cost.
Response: As described in the
preamble of the proposed rule, the
transportation cost is the cost to
transport elemental mercury accepted
for storage at the DOE facility to an
assumed treatment facility after the
storage period.
During consultation, DOE learned that
generators of elemental mercury in
Nevada were paying approximately
$1,000 for a shipment of up to 15 MT
of elemental mercury from Nevada to
Alabama for storage. DOE assumed a
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70405
similar mileage of approximately 1,800
miles for shipment from the DOE
designated storage facility to a future
treatment facility. The mileage is based
on transportation from Andrews
County, TX to Hellertown, PA. DOE
considered Hellertown, PA to be a
reasonable hypothetical location for
treatment of elemental mercury prior to
eventual disposal.
The fee has been revised to reflect
payment of $1,000 for transportation in
year 16 using discounted funds (now,
$800/MT).
Comment: DOE failed to provide an
explanation for the treatment and
disposal cost.
Response: DOE is assuming a
treatment and disposal technology
similar to that which is currently
available for disposal in Canada (i.e.,
conversion to red mercury sulfide and
disposal in a regulated landfill).
DOE has kept apprised of
developments in the private sector
associated with the development of
treatment and disposal technologies and
adjusted the fee basis accordingly. As
described in the proposed rule, the
pricing is based on preliminary pricing
from a U.S. vendor and DOE is treating
the source as business sensitive. DOE
compared the preliminary pricing to
treatment and disposal in Canada,
making appropriate adjustments using
the guidance from the DOE Cost
Estimating Guide (DOE–G–413.3–21) for
a Class 2 cost estimate and found that
the preliminary pricing fell within the
range for such an estimate. DOE noted
that the technical approach under
consideration includes additional
encapsulation relative to the currently
available disposal in Canada and that no
current actions to gain regulatory
approval are in progress.
This is included only as a cost basis
for an assumed treatment and disposal
capability in the U.S. at some future
date. It does not imply a commitment on
the part of the Environmental Protection
Agency (EPA) to promulgate a
regulatory framework for treatment and
disposal.
Comment: Why did DOE not consider
disposal in Canada?
Response: MEBA directs DOE to
designate a facility for long-term
management and storage of elemental
mercury generated within the United
States. DOE notes, however, that
treatment of elemental mercury in the
United States and subsequent disposal
of the resulting mercury compound in
Canada is an option for generators of
elemental mercury.
Comment: The proposed fee is too
high.
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Response: DOE based the proposed
fee on information received from a U.S.
vendor in response to a solicitation in
preparing the proposed rule. DOE
reviewed the response and compared it
to market information provided by
companies engaged in elemental
mercury storage that had made
certifications in accordance with 42
U.S.C. 6939f(g)(2)(B). This price
information was confirmed by
stakeholders that are users of these
facilities during consultation. In 2019,
DOE also reviewed the responses to a
Request for Expressions of Interest
received from multiple potential
offerors before the solicitation was
issued. This led DOE to the conclusion
that a reasonable market price for
storage of elemental mercury was in a
range of $1,000/MT-year to $2,200/MTyear.
The receiving charge is the cost of
purchasing required materials,
unloading the elemental mercury from
the truck, moving it to its storage
location, checking compliance with the
Waste Acceptance Criteria and logging
the shipment.
In response to comments received on
the proposed fee, DOE has revised the
fee basis to properly allocate the
receiving charge on a per MT basis. As
a result, the additional per shipment
charge has been deleted.
The removal charge is the cost of
removing elemental mercury from
storage, loading it onto a truck and
logging the shipment. This charge is
allocated on a per MT basis.
During consultation, DOE learned that
generators of elemental mercury in
Nevada were paying approximately
$1,000 for a shipment of up to 15 MT
of elemental mercury from Nevada to
Alabama for storage. DOE assumed a
similar mileage of approximately 1,800
miles for shipment from the DOE
designated storage facility to a future
treatment facility. The mileage is based
on transportation from Andrews
County, TX to Hellertown, PA. DOE
considered Hellertown, PA to be a
reasonably hypothetical location for
treatment of elemental mercury prior to
eventual disposal.
The fee has been revised to reflect
payment of $1,000 for transportation in
year 16 using discounted funds (now,
$800/MT). DOE has kept apprised of
developments in the private sector
associated with the development of
treatment and disposal technologies and
adjusted the basis accordingly. As
described in the proposed rule, the
pricing is based on preliminary pricing
from a U.S. vendor and DOE is treating
the source as business sensitive. DOE
compared the preliminary pricing to
treatment and disposal in Canada,
making appropriate adjustments using
the guidance from the DOE Cost
Estimating Guide (DOE–G–413.3–21) for
a Class 2 cost estimate and found that
the preliminary pricing fell within the
range for such an estimate. DOE noted
that the technical approach under
consideration includes additional
encapsulation relative to the currently
available disposal in Canada and that no
current actions to gain regulatory
approval are in progress. DOE has also
revised the calculation of the proposed
fee to use discounted funds. The
resulting fee basis has been reduced
from $55,100 per MT plus a receiving
charge of $3,250 per shipment, to
$37,000 per MT. The cost breakdown is
given by the following schedule:
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Description
Cost
Net present value (NPV) of Total Storage Cost of 15 years of storage @15-year real rate (1.45%)—includes per metric ton materials cost ........................................................................................................................................................................................
Present value (PV) of Transportation cost ($1,000) in year 15 @15-year real rate (1.45%) .............................................................
PV of Treatment and Disposal cost ($30,900) in year 15 @15-year real rate (1.45%) .....................................................................
$11,700
800
24,500
Total Fee/MT (rounded to nearest $) ...........................................................................................................................................
37,000
Comment: Why is DOE using 15 years
of storage as a basis for the fee?
Response: MEBA requires DOE to
designate and operate a facility or
facilities for the long-term management
and storage of elemental mercury per 42
U.S.C. 6939f. Under the Resource
Conservation and Recovery Act, EPA is
responsible for promulgating regulations
for storage, treatment, and disposal of
elemental mercury (and other mercury
wastes) in the United States. Currently
no treatment standard exists or has been
proposed that would allow land
disposal of high-purity elemental
mercury waste, waste mercury
compounds, or other high-concentration
mercury wastes. Although it is
reasonable to assume that this situation
may change in the future—as reflected
by DOE’s estimate of 15 years of
storage—it does not imply a
commitment on the part of EPA to
promulgate a regulatory framework for
treatment and disposal. Following
consultations with EPA, DOE selected
15 years of storage in recognition of
DOE’s and EPA’s respective roles. DOE
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believes this amount of time is
reasonable given the uncertainty
associated with the timing of
establishing a regulatory framework for
the treatment and disposal of highpurity elemental mercury.
Comment: Will there be any other
costs at a future time?
Response: Once the fee has been paid
and the elemental mercury has been
accepted, there will be no other costs
imposed on generators.
Comment: Will DOE take ownership
of the elemental mercury received?
Response: MEBA directs DOE to take
custody of elemental mercury delivered
to the facility for long-term management
and storage of elemental mercury and to
hold harmless, defend and provide
indemnification to persons who deliver
elemental mercury to the facility. Once
the fee has been paid and the elemental
mercury is accepted at the facility, DOE
assumes responsibility for its storage
and disposition.
Comment: Will there be an
opportunity for public participation for
future fee increases?
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Response: As provided for by MEBA,
DOE may adjust the fee annually. If this
adjustment results in a significant
alteration of the fee, DOE will provide
an opportunity for public participation.
The parameters that are subject to
adjustment, as revised in response to
public comments, are as follows:
• Number of years that elemental
mercury will reside in storage at the
DOE designated facility.
• Cost to store 1 MT of elemental
mercury for the number of years that
elemental mercury will reside in storage
at the DOE designated facility.
• Pro-rated cost of materials required
for storage of elemental mercury
• Cost of shipment from the
elemental mercury storage facility to a
treatment facility.
• Cost of treatment of elemental
mercury, and disposal of the treated
waste form.
• Real interest rate from OMB
Circular A–94.
Comment: Why does elemental
mercury delivered to the DOE facility
need to be 99.5% pure?
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Response: The requirement for 99.5%
purity is consistent with the guidance
published by DOE in 2009 and has been
chosen based on the need to store the
elemental mercury for an indefinite
period. As noted in the Long-Term
Management and Storage of Elemental
Mercury EIS at page 2–1 fn. 3, the
treatment standard for wastes
containing high concentrations of
mercury (greater than 260 parts per
million) is recovery through roasting or
retorting, which is performed at various
commercial waste recovery facilities.
This process yields high-purity
elemental mercury (e.g., elemental
mercury that is at least 99.5 percent
pure by volume) that is generally
acceptable for reintroduction back into
commerce and is analogous to the
materials to be stored in a DOE
designated storage facility.
Comment: The Supplement Analysis
(SA) notes that Waste Control
Specialists (WCS) existing buildings
will have to be redesigned, even though
no new buildings will have to be built.
Again, such costs cannot be included in
the fee proposal.
Response: The Supplement Analysis
EIS–0423–SA–01 makes no such
statement.
The WCS facility is permitted to
receive elemental mercury currently and
no structural upgrades are anticipated.
Consequently, no design or construction
costs are included in the fee basis for
the proposed fee.
Comment: Will the receiving charge
be reduced for shipments under 15 MT?
Response: DOE has revised the fee
basis to allocate the receiving charge on
a per MT basis. As a result, the
additional per shipment charge has been
deleted.
Comment: The facility should have
been designated/proposed prior to
publishing the proposed fee.
Response: DOE acknowledges that the
language of MEBA envisions
designation of a facility prior to the
establishment of the fee. DOE has
designated a facility for long-term
management and storage of elemental
mercury since publication of the
proposed rule.
Comment: DOE should consider
investing funds in non-U.S. securities
for a better return.
Response: MEBA requires DOE to
asses and collect the fee, but it does not
authorize DOE to retain fee proceeds
and invest or otherwise use them.
Absent a DOE authority to retain the
funds, they will be deposited in the
Treasury pursuant to 31 U.S.C. 3302
(Miscellaneous Receipts Act).
Comment: If costs end up lower than
the fee basis, will there be a rebate?
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Response: DOE will not provide
rebates if the actual costs end up lower
than the fee basis. Similarly, if costs end
up higher than the fee basis, DOE will
not invoice generators that have
previously delivered elemental mercury
to the DOE designated facility for such
additional costs.
Comment: Will DOE petition EPA to
change the RCRA standard to allow
treatment and disposal in U.S.?
Response: This comment is outside
the scope of the rulemaking to establish
a fee for the long-term management and
storage of elemental mercury.
Comment: Mercury collected from
recycling should not be subject to fees.
Response: MEBA directs DOE to
assess and collect a fee at the time of
delivery of elemental mercury to the
facility for long-term management and
storage of such elemental mercury.
MEBA does not include exceptions for
elemental mercury collected from
recycling.
Comment: Mercury collected from
recycling should not be defined as
hazardous waste.
Response: This comment is outside
the scope of the rulemaking to establish
a fee for the long-term management and
storage of elemental mercury.
Comment: The proposed fee will
substantially reduce recycling.
Response: MEBA directs DOE to
conduct a study, in consultation with
EPA, on the impact of the long-term
management and storage program for
elemental mercury on mercury
recycling, and include proposals, if
necessary, to mitigate any negative
impacts. DOE continues to gather
empirical information to assess these
impacts.
Comment: The proposed fee will
promote exportation of elemental
mercury.
Response: To export elemental
mercury, a person must petition the
Administrator of EPA, who may grant
an exemption provided that the
conditions of 15 U.S.C. 2611
(c)(4)(A)(i)–(vii) are met. To date EPA
has not granted any exemptions under
this part of the MEBA (for more
information, see: https://www.epa.gov/
mercury/questions-and-answersmercury-export-ban-act-meba-2008).
DOE has not received any information
to suggest the proposed fee will result
in a significant increase in such
petitions.
Comment: Landfilling of mercury is
not condoned.
Response: For purposes of estimating
the fee, DOE has assumed a scenario in
which elemental mercury is disposed in
a regulated landfill following treatment
by conversion to red mercury sulfide.
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This method of treatment of elemental
mercury and subsequent disposal of the
resulting mercury compound is used
safely in Canada.
Although there is no current
regulatory framework that allows this
practice in the U.S., in order to establish
a fee basis, as required by MEBA, DOE
considered it reasonable to assume that
such a framework may exist in the
future.
Comment: What happens after 15
years?
Response: The fee was calculated
estimating 15 years of storage followed
by treatment and disposal. DOE
acknowledges that in the absence of a
regulatory framework for such treatment
and disposal, elemental mercury in
storage at the DOE facility would
continue to be stored beyond 15 years.
Comment: What about
Comprehensive Environmental
Response, Compensation, and Liability
Act (CERCLA) liability?
Response: MEBA directs DOE to take
custody of elemental mercury delivered
to the facility for long-term management
and storage of elemental mercury and to
hold harmless, defend and provide
indemnification to persons who deliver
elemental mercury to the facility.
Comment: What are the acceptance
criteria at the DOE facility for long-term
management and storage of elemental
mercury?
Response: The Waste Acceptance
Criteria (DOE/EM–0007) is available at
https://www.energy.gov/sites/prod/files/
2019/12/f69/Waste-Acceptance-CriteriaFinal-12-12-2018.pdf.
Comment: DOE failed to consider the
environmental impact of the fee.
Response: The EIS evaluated seven
government and commercial sites and
the supplemental environmental impact
statement (SEIS) evaluated additional
alternatives for a facility at and in the
vicinity of the Waste Isolation Pilot
Plant (WIPP) for long-term management
and storage of elemental mercury. The
EIS and SEIS noted the relevant
statutory provision regarding
assessment and collection of a fee. The
assessment and collection of the fee is
part of the implementation of the
proposed action. Elemental mercury
that is not delivered to the long-term
management and storage site would
continue to be managed and stored by
the current holder of the elemental
mercury. While DOE cannot determine
which specific elemental mercury
would continue to be managed by the
current holder at a given fee basis, such
elemental mercury would have impacts
similar to those analyzed under the no
action alternative in the EIS and SEIS.
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Comment: The Council on
Environmental Quality (CEQ)
regulations require cost-benefit analyses
to be appended to or incorporated into
an EIS because they are relevant to the
choices among environmentally
different alternatives.
Response: CEQ National
Environmental Policy Act (NEPA)
Regulations (40 CFR 1502.23) require
that a cost-benefit analysis be
incorporated by reference or appended
only ‘‘[i]f a cost-benefit analysis relevant
to the choice among environmentally
different alternatives is being
considered for the proposed action.’’ As
discussed in the Record of Decision,
DOE’s decision was ‘‘[b]ased on
consideration of the analysis in the
Final Elemental Mercury Storage EIS,
SEIS, and recently prepared SA’’ and
‘‘on other programmatic, policy, logistic,
and cost considerations.’’
Comment: The EIS/SEIS/SA did not
discuss potential environmental impacts
of treatment and disposal of elemental
mercury, or of transportation of
elemental mercury for treatment and
disposal.
Response: DOE has not proposed to
treat and dispose of elemental mercury,
or to transport elemental mercury for
treatment and disposal. Thus, DOE has
not analyzed the potential
environmental impacts of such a
proposal. Nonetheless, DOE has used
treatment, disposal, and related
transportation costs to calculate the fee
for long-term elemental mercury
management and storage. Although
commenters have provided feedback
regarding the components of a fee
calculation based on this scenario,
comments have not supported basing
the fee on indefinite storage of
elemental mercury.
IV. Regulatory Review
A. Review Under Executive Order 12866
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This final rule has been determined
not to be a ‘‘significant regulatory
action’’ under Executive Order 12866,
‘‘Regulatory Planning and Review,’’ 58
FR 51735 (October 4, 1993), as amended
by Executive Order 13258, 67 FR 9385
(February 26, 2002). Accordingly, this
action was not subject to review under
that Executive Order by the Office of
Information and Regulatory Affairs
(OIRA) of the Office of Management and
Budget.
B. Review Under the National
Environmental Policy Act
In accordance with the National
Environmental Policy Act (NEPA) of
1969 (42 U.S.C. 4321 et seq.), the
Council on Environmental Quality
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regulations and the DOE regulations
implementing NEPA, DOE prepared the
following documents analyzing the
potential environmental impacts of
long-term management and storage of
elemental mercury: Long-Term
Management and Storage of Elemental
Mercury Environmental Impact
Statement (DOE/EIS–0423, January
2011); Long-Term Management and
Storage of Elemental Mercury
Supplemental Environmental Impact
Statement (DOE/EIS–0423–S1,
September 2013); and Supplement
Analysis of the Final Long-Term
Management and Storage of Elemental
Mercury Environmental Impact
Statement (DOE/EIS–423–SA–01). The
environmental impact statement (and
the supplemental environmental impact
statement) noted the relevant statutory
provision regarding assessment and
collection of a fee. The assessment and
collection of the fee is part of the
implementation of the action.
C. Review Under the Regulatory
Flexibility Act
The Regulatory Flexibility Act (5
U.S.C. 601 et seq.) requires preparation
of an initial regulatory flexibility
analysis for any rule that by law must
be proposed for public comment, unless
the agency certifies that the rule, if
promulgated, will not have a significant
economic impact on a substantial
number of small entities. As required by
Executive Order 13272, ‘‘Proper
Consideration of Small Entities in
Agency Rulemaking,’’ 67 FR 53461
(August 16, 2002), DOE published
procedures and policies on February 19,
2003, to ensure that the potential
impacts of its rules on small entities are
properly considered during the
rulemaking process (68 FR 7990). DOE
has made its procedures and policies
available on the Office of General
Counsel’s website: https://
www.energy.gov/sites/prod/files/gcprod/
documents/eo13272.pdf.
DOE has reviewed this rule under the
provisions of the Regulatory Flexibility
Act and the procedures and policies
published on February 19, 2003. For the
reasons explained below, DOE has
determined that this rule, if adopted,
will not have a significant economic
impact on a substantial number of small
entities.
In 2019, DOE published Supplement
Analysis of the Final Long-Term
Management and Storage of Elemental
Mercury Environmental Impact
Statement (DOE/EIS–423–SA–01) that
updated the expected inventory during
the next 40 years to 6,800 MT. DOE
expects approximately 35–50 entities to
pay the fee established in this final rule.
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DOE expects that the majority of the fees
paid will be paid by less than 10 of
these entities. The Nevada Mining
Association (NMA) membership
includes the generators of elemental
mercury that are expected to deliver the
majority of elemental mercury to the
DOE facility. DOE contacted NMA for
information to help determine how
many of its membership qualify as small
entities under NAICS codes 212221
(Gold ore mining, 1500 employees),
212222 (Silver ore mining, 250
employees), 212230 (Copper, nickel,
lead and zinc mining, 750 employees)
and 212299 (All other metal ore mining,
750 employees). The information
received showed that there are 31
entities that fall below the small
business standards versus 2 entities that
exceeded the standard. DOE estimates
that the largest impact would be to
entities engaged in mining that do not
qualify as small entities under NAICS
codes. This impact will vary based on
ore grade and price fluctuations in the
precious metals market.
Some entities that have either
accepted elemental mercury for storage,
in accordance with 42 U.S.C.
6939f(g)(2)(B) or have placed elemental
mercury in storage in accordance with
42 U.S.C. 6939f(g)(2)(B) or (D), awaiting
the start of operation at the DOE facility
will be required to pay the fee for
storage at the DOE site. These entities
would be classified under the NAICS
codes in the previous paragraph or
NAICS code 562112 (Hazardous Waste
Collection, $41.5M). The largest of these
impacts are likely be a one-time expense
shortly after the start of operations at the
DOE facility. DOE determined, however,
that none of these entities are likely to
be small entities.
As a result of MEBA, with the
exception of elemental mercury that has
been placed in storage in accordance
with 42 U.S.C. 6939f(g)(2)(B) or (D),
generators of elemental mercury can
either send elemental mercury that is
being discarded to the DOE designated
facility for long- term management and
storage, or treat the elemental mercury
to form a mercury compound and then
export the mercury compound for
environmentally sound disposal in
accordance with 15 U.S.C.
2611(c)(7)(A)–(B) and (D). Export of
mercury compounds for
environmentally sound disposal in
another country may also be subject to
that country’s obligations under the
Basel Convention, if applicable, and that
country’s applicable domestic laws and
regulations. While international sales
generally are prohibited by MEBA’s
export ban, 42 U.S.C. 2611(c)(1), nonFederal generators may also consider
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domestic sales of elemental mercury.4
Although domestic sale of elemental
mercury is an option without a negative
economic impact, it is likely that the
supply would exceed demand and thus
that option may not be viable for some
non-Federal generators. As stated above,
for those non-Federal generators for
whom sale is not a viable option, the
available options are sending the
elemental mercury to the DOE
designated facility or environmentally
sound disposal of certain mercury
compounds in accordance with 15
U.S.C. 2611(c)(7)(D). Treatment and
disposal is available at a cost of
approximately $26,500 (USD) per metric
ton in Canada, for example, and
generators can choose this option if it is
more cost effective for them.
Because DOE has determined that
entities currently storing elemental
mercury who will be required to pay the
fee established by DOE for storage in the
DOE facility are not likely to be small
entities, and because those entities not
required to pay the fee established by
DOE for storage in the DOE facility can
choose another disposal option if that
option is more cost effective for them,
DOE has determined that this rule does
not have a significant economic impact
on a substantial number of small
entities.
DOE’s certification and supporting
statement of factual basis was provided
to the Chief Counsel for Advocacy of the
Small Business Administration
pursuant to 5 U.S.C. 605(b). The
Department did not receive any
comments on the certification and has
responded to comments regarding the
economic impacts of the rule in Section
III of this final rule.
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D. Review Under the Paperwork
Reduction Act
This rulemaking would impose no
new information or recordkeeping
requirements. Accordingly, OMB
clearance is not required under the
Paperwork Reduction Act (PRA) of 1995
(44 U.S.C. 3501 et seq.).
Notwithstanding any other provision
of the law, no person is required to
respond to, nor shall any person be
subject to a penalty for failure to comply
with, a collection of information subject
to the requirements of the PRA, unless
that collection of information displays a
currently valid OMB Control Number.
4 MEBA provides that ‘‘no Federal agency shall
convey, sell, or distribute . . . any elemental
mercury under the control or jurisdiction of the
Federal agency.’’ 15 U.S.C. 2605(f). MEBA provides
an exception for ‘‘a transfer between Federal
agencies of elemental mercury under the control or
jurisdiction of the Federal agency.’’ Id. at 15 U.S.C.
2605(f)(2)(A).
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E. Review Under the Unfunded
Mandates Reform Act
Title II of the Unfunded Mandates
Reform Act of 1995 (Pub. L. 104–4)
requires each Federal agency to prepare
a written assessment of the effects of
any Federal mandate in a proposed or
final agency regulation that may result
in the expenditure by States, tribal or
local governments, in the aggregate, or
by the private sector, of $100 million in
any one year. The Act also requires
Federal agencies to develop an effective
process to permit timely input by
elected officials of State, tribal, or local
governments on a proposed significant
intergovernmental mandate, and
requires an agency plan for giving notice
and opportunity to provide timely input
to potentially affected small
governments before establishing any
requirements that might significantly or
uniquely affect small governments. DOE
has determined that this rule does not
contain any Federal mandates exceeding
$100 million in any one year affecting
States, tribal, or local governments, or
the private sector, and, thus, no
assessment or analysis is required under
the Unfunded Mandates Reform Act of
1995.
F. Review Under Executive Order 12988
With respect to the review of existing
regulations and the promulgation of
new regulations, section 3(a) of
Executive Order 12988, ‘‘Civil Justice
Reform’’ 61 FR 4779 (February 7, 1996),
imposes on Federal agencies the general
duty to adhere to the following
requirements: (1) Eliminate drafting
errors and ambiguity; (2) write
regulations to minimize litigation; (3)
provide a clear legal standard for
affected conduct rather than a general
standard; and (4) promote simplification
and burden reduction. With regard to
the review required by section 3(a),
section 3(b) of Executive Order 12988,
specifically requires that Federal
agencies make every reasonable effort to
ensure that the regulation: (1) Clearly
specifies the preemptive effect, if any;
(2) clearly specifies any effect on
existing Federal law or regulation; (3)
provides a clear legal standard for
affected conduct while promoting
simplification and burden reduction; (4)
specifies the retroactive effect, if any; (5)
adequately defines key terms; and (6)
addresses other important issues
affecting the clarity and general
draftsmanship under guidelines issued
by the Attorney General. Section 3(c) of
Executive Order 12988 requires
executive agencies to review regulations
in light of applicable standards in
section 3(a) and section 3(b) to
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determine whether they are met or it is
unreasonable to meet one or more of
them. DOE has completed the required
review and determined that, to the
extent permitted by law, this rule meets
the relevant standards of Executive
Order 12988.
G. Review Under Executive Order 13132
Executive Order 13132, ‘‘Federalism,’’
64 FR 43255 (August 10, 1999) imposes
certain requirements on agencies
formulating and implementing policies
or regulations that preempt State law or
that have federalism implications.
Agencies are required to examine the
constitutional and statutory authority
supporting any action that would limit
the policymaking discretion of the
States and to carefully assess the
necessity for such actions. The
Executive order also requires agencies to
have an accountable process to ensure
meaningful and timely input by State
and local officials in the development of
regulatory policies that have federalism
implications. On March 14, 2000, DOE
published a statement of policy
describing the intergovernmental
consultation process it will follow in the
development of such regulations. (65 FR
13735). DOE has examined this rule and
has determined that it would not
preempt State law and would not have
substantial direct effects on the States,
on the relationship between the national
government and the States, or on the
distribution of power and responsibility
among the various levels of government.
No further action is required by
Executive Order 13132.
H. Review Under the Treasury and
General Government Appropriations
Act, 1999
Section 654 of the Treasury and
General Government Appropriations
Act, 1999 (Pub. L. 105–277) requires
Federal agencies to issue a Family
Policymaking Assessment for any
proposed rule that may affect family
well-being. This rule would have no
impact on the autonomy or integrity of
the family as an institution.
Accordingly, DOE has concluded that it
is not necessary to prepare a Family
Policymaking Assessment.
I. Review Under Executive Order 13211
Executive Order 13211, ‘‘Actions
Concerning Regulations That
Significantly Affect Energy, Supply,
Distribution, or Use,’’ 66 FR 28355 (May
22, 2001) requires preparation and
submission to OMB of a Statement of
Energy Effects for any significant energy
action. A ‘‘significant energy action’’ is
defined as any action by an agency that
promulgated or is expected to lead to
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Federal Register / Vol. 84, No. 246 / Monday, December 23, 2019 / Rules and Regulations
promulgation of a final rule, and that:
(1)(i) Is a significant regulatory action
under Executive Order 12866, or any
successor order; and (ii) is likely to have
a significant adverse effect on the
supply, distribution, or use of energy; or
(2) is designated by the Administrator of
OIRA as a significant energy action. For
any significant energy action, the agency
must give a detailed statement of any
adverse effects on energy supply,
distribution, or use should the proposal
be implemented, and of reasonable
alternatives to the action and their
expected benefits on energy supply,
distribution, and use. DOE has
determined that this rule would not
have a significant adverse effect on the
supply, distribution, or use of energy.
The Administrator of OIRA has also not
determined that this rule is a significant
energy action. Thus, the requirement to
prepare a Statement of Energy Effects
does not apply.
J. Review Under the Treasury and
General Government Appropriations
Act, 2001
The Treasury and General
Government Appropriations Act, 2001
(44 U.S.C. 3516 note) provides for
agencies to review most dissemination
of information to the public under
guidelines established by each agency
pursuant to general guidelines issued by
OMB. OMB guidelines were published
at 67 FR 8452 (Feb. 22, 2002), and DOE
guidelines were published at 67 FR
62446 (Oct. 7, 2002). DOE has reviewed
this rule under the OMB and DOE
guidelines and has concluded that it is
consistent with applicable policies in
those guidelines.
K. Review Under Executive Orders
13771
This rule is not subject to the
requirements of E.O. 13771 (82 FR 9339,
February 3, 2017) because this rule is
considered to be a ‘‘transfer rule.’’
L. Congressional Notification
As required by 5 U.S.C. 801, DOE will
report to Congress on the promulgation
of this rule prior to its effective date.
The report will state that it has been
determined that the rule is a ‘‘major
rule’’ as defined by 5 U.S.C. 804(2).
lotter on DSKBCFDHB2PROD with RULES
V. Approval of the Secretary of Energy
The Secretary of Energy has approved
publication of this final rule.
List of Subjects in 10 CFR Part 955
Elemental mercury, Hazardous waste
treatment, storage, and disposal,
Reporting and recordkeeping
requirements.
VerDate Sep<11>2014
16:18 Dec 20, 2019
Jkt 250001
Signed in Washington, DC, on December
18, 2019.
Paul M. Dabbar,
Under Secretary for Science.
For the reasons set forth in the
preamble, the Department of Energy
adds part 955 to title 10 of the Code of
Federal Regulations to read as follows:
■
PART 955—FEE FOR LONG-TERM
MANAGEMENT AND STORAGE OF
ELEMENTAL MERCURY UNDER THE
MERCURY EXPORT BAN ACT OF 2008,
AS AMENDED
Sec.
955.1
955.2
955.3
955.4
955.5
Purpose.
Scope and applicability.
Definitions.
Payment of fees.
Schedule of fees.
Authority: 42 U.S.C. 6939f(b).
§ 955.1
Purpose.
This part establishes a fee for longterm management and storage of
elemental mercury in accordance with
the Mercury Export Ban Act of 2008, as
amended, section 5(b), (42 U.S.C.
6939f(b)).
§ 955.2
Scope and applicability.
This part applies to persons who
deliver elemental mercury to the U.S.
Department of Energy (DOE) designated
facility for long-term management and
storage.
§ 955.3
Definitions.
The following definitions are
provided for purposes of this part:
DOE means the U.S. Department of
Energy.
Elemental mercury means the element
with the chemical symbol Hg and
atomic number 80 in its liquid form.
The form acceptable to DOE is at least
99.5% elemental mercury by volume.
DOE will not accept elemental mercury
in environmental media or consumer
products (fluorescent lamps, batteries,
etc.) or elemental mercury in
manufactured items (manometers,
thermometers, switches, etc.).
Metric ton means 1,000 kilograms
(approximately 2,204 lbs.).
§ 955.4
Payment of fees.
Fees are payable upon delivery of
elemental mercury to the DOE facility.
All fee payments are to be made payable
to the U.S. Department of Energy. The
payments are to be made in U.S. funds
by electronic funds transfer such as
ACH (Automated Clearing House) using
E.D.I. (Electronic Data Interchange),
check, draft, money order, or credit
card.
PO 00000
Frm 00018
Fmt 4700
Sfmt 4700
§ 955.5
Schedule of fees.
(a) Persons delivering elemental
mercury to the DOE facility for longterm management and storage of
elemental mercury shall pay fees in
accordance with paragraph (b) of this
section.
(b) The fee per metric ton is the sum
of:
(1) The net present value of
elementary mercury storage for the
number of years in storage using the
appropriate interest rate from Office of
Management and Budget (OMB)
Circular A–94;
(2) The pro-rated cost of materials
required for storage of elemental
mercury;
(3) The present value of the cost of
transporting elemental mercury from the
storage facility to a treatment facility in
the year following the last year of
storage using the appropriate interest
rate from OMB Circular A–94; and
(4) The present value of the cost of
treatment and disposal in the year
following the last year of storage using
the appropriate interest rate from OMB
Circular A–94.
(c) The values in paragraphs (b)(1)
through (4) of this section may be
updated annually. These values are
posted to the DOE Long-Term
Management and Storage of Elemental
Mercury website (https://
www.energy.gov/em/services/wastemanagement/waste-and-materialsdisposition-information/long-termmanagement-and). DOE will publish
notice in the Federal Register when the
values are updated to inform the public
of the updates.
[FR Doc. 2019–27672 Filed 12–20–19; 8:45 am]
BILLING CODE 6450–01–P
BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Part 1026
Truth in Lending Act (Regulation Z)
Adjustment To Asset-Size Exemption
Threshold
Bureau of Consumer Financial
Protection.
ACTION: Final rule; official
interpretation.
AGENCY:
The Bureau of Consumer
Financial Protection (Bureau) is
amending the official commentary that
interprets the requirements of the
Bureau’s Regulation Z (Truth in
Lending) to reflect a change in the assetsize threshold for certain creditors to
qualify for an exemption to the
requirement to establish an escrow
SUMMARY:
E:\FR\FM\23DER1.SGM
23DER1
Agencies
[Federal Register Volume 84, Number 246 (Monday, December 23, 2019)]
[Rules and Regulations]
[Pages 70402-70410]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27672]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
10 CFR Part 955
RIN 1903-AA11
Elemental Mercury Management and Storage Fees
AGENCY: Office of Environmental Management, U.S. Department of Energy.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of Energy publishes a final rule to establish a
fee for long-term management and storage of elemental mercury in
accordance with the Mercury Export Ban Act.
DATES: This rule is effective January 22, 2020.
FOR FURTHER INFORMATION CONTACT: David Haught, U.S. Department of
Energy, Office of Environmental Management, Office of Waste Disposal
(EM-4.22), 1000 Independence Avenue SW, Washington, DC 20585,
Telephone: (202) 586-5000, Email: [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
II. Discussion of Fee Basis
III. Response to Comments
IV. Regulatory Review
V. Approval of the Secretary of Energy
I. Background
Section 5(a)(1) of the Mercury Export Ban Act, as amended (MEBA),
42 U.S.C. 6939f(a)(1), provides that the Department of Energy (DOE)
shall designate a facility for the purpose of long-term management and
storage of elemental mercury generated within the United States.\1\
MEBA section 5(b)(1), 42 U.S.C. 6939f(b)(1), further provides that DOE
shall assess and collect a fee at the time of delivery for providing
such management and storage based on the pro rata cost of long-term
management and storage of elemental mercury delivered to the facility.
MEBA provides that the fee shall be made publicly available by October
1, 2018. MEBA section 5(b)(1)(B)(i), 42 U.S.C. 6939f(b)(1)(B)(i). The
fee may be adjusted annually and shall be set in an amount sufficient
to cover costs described in MEBA section 5(b)(2), 42 U.S.C.
6939f(b)(2), subject to certain adjustments. MEBA section
5(b)(1)(B)(ii)-(iv), 42 U.S.C. 6939f(b)(1)(B)(ii)-(iv).
---------------------------------------------------------------------------
\1\ Elemental mercury stored at the facility will be classified
as a hazardous waste under the Resource Conservation and Recovery
Act and its implementing regulations. MEBA Section 3 prohibits the
sale, distribution or transfer of elemental mercury stored by DOE,
and MEBA Sections 5(d)(1) and 5(g)(2)(B) require that the elemental
mercury be stored at facilities having permits to manage RCRA
hazardous waste (with the exception of waste elemental mercury
generated by certain generators, and which is destined for the long-
term storage facility as allowed by 42 U.S.C. 6939f(g)(2)(D)). Based
on the description of elemental mercury that is destined for and
stored at the DOE long-term storage facility, the RCRA hazardous
waste code U151 applies (see 40 CFR 261.33).
---------------------------------------------------------------------------
In accordance with MEBA section 5(b), 42 U.S.C. 6939f(b), DOE
establishes this fee after consultation with persons who are likely to
deliver elemental mercury to a designated facility, and with other
interested persons. DOE convened teleconferences from May 2017 through
July 2019 and held a meeting on August 1-2, 2018, in Washington, DC, to
discuss considerations for the basis of the fee for long-term
management and storage of elemental mercury including length of time in
storage, the cost of eventual treatment and disposal technology, and
different operational scenarios. Participants included representatives
of generators producing elemental mercury incidentally from the
beneficiation or processing of ore, or related pollution control
activities. DOE also consulted with members of the Environmental
Technology Council, a private organization whose members include
persons likely to deliver elemental mercury to the designated DOE
storage facility, on January 23, 2019.
The proposed rule would have established the fee for long-term
management and storage of elemental mercury at the designated DOE
storage facility as $55,100 per metric ton (MT),\2\ plus a receiving
charge of $3,250 per shipment. In response to comments received
regarding the proposed rule, DOE has adjusted the fee downward to
$37,000 per MT. In accordance with MEBA section 5(b)(1)(B)(ii), 42
U.S.C. 6939f(b)(1)(B)(ii), this fee may be adjusted annually according
to the factors described in Section II, Discussion of Fee Basis.
---------------------------------------------------------------------------
\2\ One metric ton is 2,204.62 lbs.
---------------------------------------------------------------------------
II. Discussion of Fee Basis
The fee per metric ton is the sum of (1) the net present value of
elementary mercury storage for fifteen years using the 15-year real
interest rate from Office of Management and Budget (OMB) Circular A-94;
(2) the pro-rated cost of materials required for storage of elemental
mercury; (3) the present value of the cost of transporting elemental
mercury from the storage facility to a treatment facility in the
sixteenth year using the 15-year real interest rate from OMB Circular
A-94; and (4) the present value of the cost of treatment and disposal
in the sixteenth year using the 15-year real interest rate from OMB
Circular A-94. While there is no current regulatory framework to treat
and dispose of elemental mercury in the U.S., DOE is assuming a
scenario in which there is treatment and disposal capacity for high-
concentration elemental mercury waste in the future.
In accordance with 42 U.S.C. 6939f(b)(1)(B), because the designated
facility was not operational on January 1, 2019, DOE will adjust the
fee adopted in this final rule and assessed for elemental mercury
delivered to the designated facility to subtract the cost of the
temporary accumulation for those generators accumulating elemental
mercury in a facility pursuant to 42 U.S.C. 6939f(g)(2)(B) and (D)(iv)
during the period in which the designated facility is not operational.
The subtraction will occur after receipt and approval of invoices
outlining acceptable costs.
In accordance with 42 U.S.C. 6939f(b)(1)(B)(ii), DOE may adjust the
fee annually. As stated in the proposed rule, DOE will adjust the fee
by
[[Page 70403]]
adjusting the parameters used in calculating the fee. If this
adjustment results in a significant adjustment of the fee, DOE will
provide an opportunity for public participation. The parameters subject
to adjustment are as follows:
Number of years that elemental mercury will reside in
storage at the DOE designated facility.
Cost to store 1 MT of elemental mercury for the number of
years that elemental mercury will reside in storage at the DOE
designated facility.
Pro-rated cost of materials required for storage of
elemental mercury.
Cost of transportation from the elemental mercury storage
facility to a treatment facility.
Cost of treatment of elemental mercury, and disposal of
the treated waste form.
Real interest rate from OMB Circular A-94.
The breakdown of the storage cost per metric ton is given by the
following table:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Year Receipt Management Lease Oversight State tax Removal Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
1....................................... $570.00 $300.84 $300.84 $117.17 .............. .............. $1,288.85
2-15.................................... .............. 300.84 300.84 60.17 $120.34 .............. 782.18
16...................................... .............. .............. .............. .............. 120.34 $9570.00 690.34
--------------------------------------------------------------------------------------------------------------------------------------------------------
The cost of storage from the table above is $12,900. The net
present value of this total, using the 15-year real interest rate from
OMB Circular A-94 (1.45%), is $11,500. DOE has used 6 hours of labor at
$95/hour for receipt of each metric ton of elemental mercury for
unloading from transportation vehicles, verifying compliance with waste
acceptance criteria, logging receipt and placement in storage. Storage
costs are $300.84/MT-year for management, and DOE has allocated
$30,234.42 lease costs across an initial contracted inventory of 1,206
MT, resulting in $300.84/MT in lease costs. State taxes are computed at
20% beginning 1 year after incurring the management and lease expense.
Oversight expenses are computed at 10% of total annual costs for
monitoring of program performance and performing audit functions to
assure integrity of the waste acceptance process. Finally, DOE has used
6 hours of labor at $95/hour for removal of elemental mercury from
racks, logging shipment and placing on transportation vehicles awaiting
shipment to a treatment facility. DOE has allocated the cost of
acquiring racks and other required materials for storage across an
initial contracted inventory of 1,206 MT, resulting in a per metric ton
cost for materials of $200/MT. Adding the cost per metric ton of
materials to the net present value of the table above results in a
total cost of storage of $11,700/MT.
The present value of the cost of transportation in the sixteenth
year using the 15-year real interest rate from OMB Circular A-94
(1.45%) is $800. The current year cost basis is $1,000, assuming
approximately 1,800 miles traveled.
The present value of the cost of treatment and disposal of
elemental mercury in the sixteenth year using the 15-year real interest
rate from OMB Circular A-94 (1.45%) is $24,500.
The resulting fee per metric ton is given by the following table:
Storage cost............................................ $11,700
Transportation cost..................................... 800
Treatment and disposal cost............................. 24,500
---------------
Total............................................... 37,000
III. Response to Comments
DOE published the proposed rule to establish the fee for the
management and storage of elemental mercury on October 4, 2019. (84 FR
53066). DOE received comments from interested parties that are
available at the following link https://www.regulations.gov/docket?D=DOE-HQ-2019-0037. DOE responds to the comments received on the
proposal in this section, including changes made to reduce the proposed
fee that were made in response to those comments.
Comment: DOE must withdraw the proposed rule.
Response: As discussed in the paragraphs that follow, DOE has
addressed the comments received on the proposed rule that form the
basis for the commenters' withdrawal request and has revised it
accordingly. As a result, DOE declines to withdraw the proposed rule.
Comment: DOE failed to provide information in an accompanying
administrative record that would allow sufficient public review of the
proposed rule.
Response: As required by the Mercury Export Ban Act, as amended
(MEBA), DOE consulted with persons likely to deliver elemental mercury
to the designated facility on the fee prior to publication of the
proposed rule. Beginning in 2016, DOE contacted the operators of
facilities that had made the certification provided for in 42 U.S.C.
6939f(g)(2)(B) to collect information on elemental mercury storage and
who was using the storage. This led representatives of the Department
to reach out to members of the mining community and to the Nevada
Mining Association.
Consultation took the form of meetings and teleconferences, from
May 2017 through July 2019, with representatives from Newmont Mining
Corporation, Barrick Gold Corporation, Coeur Rochester, Inc., and
members of the Environmental Technology Council, some of which had made
the certification provided for in 42 U.S.C. 6939f(g)(2)(B) and were
storing elemental mercury for clients until the DOE facility opens.\3\
---------------------------------------------------------------------------
\3\ DOE also notes that it held an ex parte meeting with
Environmental Technology Council (ETC) members on November 21, 2019.
At this meeting, ETC members expressed their concerns with the
rulemaking. The ex parte meeting has been included in the record for
this rulemaking and is available at https://www.energy.gov/gc/legal-resources/ex-parte-communications.
---------------------------------------------------------------------------
As noted by commenters, DOE engaged in extensive discussions with
stakeholders. During these discussions, the basis for the fee
calculation (i.e., storage for an unspecified, but limited, time
followed by treatment and disposal at another location) was presented.
Stakeholders provided information to DOE that was evaluated as part of
development of the proposed rule. DOE shared its concerns with some of
the scenarios suggested by stakeholders during consultation.
In developing the proposed fee and the fee established in this
final rule, with respect to storage costs, DOE used source selection
sensitive information in accordance with Federal Acquisition Regulation
(FAR) 2.101 and FAR 3.104 and is not approved for release to the
public. DOE received information on preliminary pricing for treatment
and disposal that it determined was business confidential information.
DOE estimated expected pricing for treatment and disposal using
publicly available pricing for similar treatment and disposal in
accordance with the DOE Cost Estimating Guide (DOE-G-413.3-21) and
found a reasonable expected price range of $24,000/MT to $34,600/MT.
Since the preliminary pricing fell within
[[Page 70404]]
the expected cost range, DOE has adopted $30,900/MT as the cost of
treatment and disposal. DOE used information provided during the
consultation process as the basis for an estimate for the costs to
transport elemental mercury from the storage facility to a future
treatment facility. DOE used publicly available information from OMB
Circular A-94 as a source for relevant interest rates.
Given the level of consultation and engagement with persons likely
to deliver elemental mercury to the facility, as well as, the
straightforward fee basis, DOE believes sufficient information was
provided to allow the public to meaningfully comment on the proposed
rule and to support the fee established in this final rule.
Comment: DOE failed to consider alternatives to the scenario
presented in the proposed rule, including scenarios presented during
consultation.
Response: During consultation, DOE discussed and considered
scenarios suggested by the meeting participants. These discussions
included the scenario that ultimately became the basis for the proposed
fee.
The scenarios discussed included indefinite storage (including
storage at Hawthorne Army Depot (HWAD)), and storage for a relatively
short period of time until a regulatory framework for treatment and
disposal in the U.S. becomes available, and subsequent treatment and
disposal in the United States.
Commenters indicated that storage at HWAD is significantly less
expensive than the basis for the proposed rule. On multiple occasions
since MEBA was passed DOE discussed the use of HWAD for storage of
elemental mercury with the Department of Defense (DoD), including as
recently as December 2018 and January 2019. During these discussions
DOE and DoD noted that 10 U.S.C. 2692 generally prohibits the storage
of non-defense toxic and hazardous materials. The Secretary of Defense
may grant exceptions to this prohibition when essential to protect the
health and safety of the public from imminent danger if the Secretary
otherwise determines the exception is essential, and if the storage or
disposal authorized does not compete with private enterprise. However,
neither of these conditions can be met because elemental mercury is
currently being stored safely at privately owned facilities that made
the certification provided for in 42 U.S.C. 6939f(g)(2)(B), and DOE has
evaluated reasonable alternative locations for storage of elemental
mercury.
Comment: The use of a leased facility is not permitted under MEBA.
Response: The phrase ``facility or facilities of [DOE]'' is not
defined in MEBA. DOE operates at both DOE-owned and -leased facilities,
and DOE has construed the term ``DOE facility'' to refer to an
assortment of ownership and lease relationships. MEBA Section 5(f)
authorizes DOE to establish such terms, conditions, and procedures as
are necessary to carry out MEBA Section 5. As noted in the Long-Term
Management and Storage of Elemental Mercury Environmental Impact
Statement (EIS) at page 1-3 fn. 2, DOE has interpreted MEBA Section 5
to authorize DOE to designate existing and/or new storage facilities at
property owned or leased by DOE.
Comment: DOE has included costs in the fee basis that are not
recoverable under MEBA.
Response: MEBA section 5(b)(1)(B)(iii), 42 U.S.C.
6939f(b)(1)(B)(iii), provides that fees shall be set in an amount
sufficient to cover costs set forth in MEBA section 5(b)(2), 42 U.S.C.
6939f(b)(2). Such costs are costs to DOE of providing management and
storage, including operation and maintenance, security, monitoring,
reporting, personnel, administration, inspections, training, fire
suppression, closure, and other costs required for compliance with
applicable law.
In accordance with MEBA, the costs associated with land acquisition
or permitting of the facility under the Solid Waste Disposal Act or
other applicable law are not recoverable. The DOE lease agreement for
elemental mercury storage only includes a leasehold interest in the
portion of the buildings used only; therefore, the lease arrangement
does not qualify as land acquisition. DOE has received a cost estimate
of necessary permit modifications but has not included them in the fee
basis. No building design or construction costs have been incurred and
included in the basis for the fee calculation.
In summary, DOE did not include any non-recoverable costs in the
basis for the proposed fee. In addition, DOE plans to fulfill its
elemental mercury storage mission by hiring a contractor to operate the
facility; therefore, DOE believes the inclusion of contractors' profit
is a recoverable cost under MEBA.
Comment: DOE failed to consult with persons likely to deliver
elemental mercury as required by MEBA. DOE should provide summaries of
the meetings and teleconferences.
Response: As required by MEBA, DOE consulted with persons likely to
deliver elemental mercury to the designated facility on the fee prior
to publication of the proposed rule. This included meetings and
teleconferences conducted between May 2017 and July 2019 with persons
representing Newmont Mining Corporation, Barrick Gold Corporation, and
Coeur Rochester, Inc., and members of the Environmental Technology
Council, some of which had made the certification provided for in 42
U.S.C. 6939f(g)(2)(B) and are storing elemental mercury for clients
until the DOE facility opens.
During consultation, DOE discussed and considered scenarios
suggested by the meeting participants. These discussions included the
scenario that ultimately became the basis for the proposed fee.
The scenarios discussed included indefinite storage (including
storage at Hawthorne Army Depot (HWAD)), and storage for a relatively
short period of time until a regulatory framework for treatment and
disposal in the U.S. becomes available, and subsequent treatment and
disposal in the United States.
As noted above, DOE evaluated the use of HWAD with DoD. During
consultation, DOE kept participants informed of the results of its
investigations.
During a meeting in Washington, DC, on January 23, 2019, DOE
presented information to members of the Environmental Technology
Council (ETC), some of which had made the certification provided for in
42 U.S.C. 6939f(g)(2)(B) and are storing elemental mercury for clients
until the DOE facility opens. Additionally, DOE spoke with a
representative of ETC on multiple occasions to apprise ETC of the
status of preparing the proposed rule and the development of the fee
basis.
DOE also has maintained a dialog with appropriate personnel from
the Nevada Department of Environmental Protection and the Texas
Commission on Environmental Quality during the development of the
proposed rule.
DOE believes the level of outreach and consultation that the agency
engaged in meets the requirements of MEBA. DOE provided further
opportunities for input from interested parties and the public through
publication of the proposed rule and solicitation of comments.
Comment: DOE provided insufficient time for the public to comment
on the proposed rule and should extend the public comment period.
Response: Given the extensive discussions with stakeholders, the
straightforward fee basis, and the fact that the proposed fee was based
on a scenario discussed multiple times
[[Page 70405]]
during the consultations, DOE did not believe extension of the public
comment period was necessary.
Comment: DOE failed to consider less expensive options.
Response: DOE based the proposed fee on information received from a
U.S. vendor in response to a solicitation in preparing the proposed
rule. In 2017, DOE compared the response to the price for elemental
mercury storage by companies engaged in elemental mercury storage that
had made certifications in accordance with 42 U.S.C. 6939f(g)(2)(B).
Among those companies that responded, the only company that provided
specific pricing information indicated $1,200/MT-year was their price
for this service. This price information was confirmed by stakeholders
that are users of these facilities during consultation. In 2019, DOE
also reviewed the responses to a Request for Expressions of Interest
received from multiple potential offerors before the solicitation was
issued. This led DOE to the conclusion that a reasonable market price
for storage of elemental mercury was in a range of approximately
$1,000/MT-year to $2,200/MT-year. Since the average annual cost of
storage in the scenario used as the basis for the fee is $780/MT, DOE
considers this basis to represent a cost-efficient approach.
Several comments were received suggesting that the price for
storage should be more on the order of $80/MT-year, some suggesting
that this is the cost of storage at HWAD. HWAD storage of elemental
mercury is not subject to the Resource Conservation and Recovery Act
(RCRA), nor is it required to accept shipments from sources as varied
as those expected at the DOE designated facility. DOE is unable to
verify the components of the suggested HWAD costs in order to
appropriately make a direct comparison to HWAD.
DOE contacted DoD regarding the possibility of using HWAD as the
DOE facility for long-term management and storage of elemental mercury
and found that, in accordance with 10 U.S.C. 2692, the facility was
prohibited from accepting non-defense related hazardous waste. As
discussed in response to an earlier comment, to waive the prohibition,
two conditions must be met: (1) There must be an imminent danger to
public health and safety; and (2) the storage must not compete with
private enterprise. Since neither of these conditions could be met, DOE
determined that use of HWAD as the DOE facility for long-term
management and storage of elemental mercury was not viable.
DOE has not proposed to treat elemental mercury in the United
States and dispose of the resulting mercury compound in Canada. DOE
notes, however, that treatment of elemental mercury in the United
States and subsequent disposal of the resulting mercury compound in
Canada is an option for generators of elemental mercury.
Comment: DOE is using an escalation rate for storage costs that is
too high.
Response: DOE has revised the fee basis to use discounted funds and
has eliminated the escalation rate used in the proposed rule.
Consistent with discussions with participants during consultation, OMB
Circular A-94 rates are used. The fee basis has been revised using the
15-year real rate from OMB Circular A-94 (1.45%).
Comment: DOE should have used discount rates rather than escalating
all costs.
Response: DOE has revised the calculation of the proposed fee to
use discounted funds and has eliminated the escalation rate used in the
proposed rule. The resulting fee basis has been reduced from $55,100
per MT plus a receiving charge of $3,250 per shipment, to $37,000 per
MT.
Comment: DOE failed to provide an explanation for the receiving
charge.
Response: The receiving charge is the cost of purchasing required
materials, unloading the elemental mercury from the truck, moving it to
its storage location, checking compliance with the Waste Acceptance
Criteria and logging the shipment.
In response to comments received on the proposed fee, DOE has
revised the fee basis to allocate the receiving charge on a per MT
basis. As a result, the additional per shipment charge has been
deleted.
Comment: DOE failed to provide an explanation for the removal
charge.
Response: The removal charge is the cost of removing elemental
mercury from storage, loading it onto a truck and logging the shipment.
This charge is allocated on a per MT basis.
Comment: DOE failed to provide an explanation for the
transportation cost.
Response: As described in the preamble of the proposed rule, the
transportation cost is the cost to transport elemental mercury accepted
for storage at the DOE facility to an assumed treatment facility after
the storage period.
During consultation, DOE learned that generators of elemental
mercury in Nevada were paying approximately $1,000 for a shipment of up
to 15 MT of elemental mercury from Nevada to Alabama for storage. DOE
assumed a similar mileage of approximately 1,800 miles for shipment
from the DOE designated storage facility to a future treatment
facility. The mileage is based on transportation from Andrews County,
TX to Hellertown, PA. DOE considered Hellertown, PA to be a reasonable
hypothetical location for treatment of elemental mercury prior to
eventual disposal.
The fee has been revised to reflect payment of $1,000 for
transportation in year 16 using discounted funds (now, $800/MT).
Comment: DOE failed to provide an explanation for the treatment and
disposal cost.
Response: DOE is assuming a treatment and disposal technology
similar to that which is currently available for disposal in Canada
(i.e., conversion to red mercury sulfide and disposal in a regulated
landfill).
DOE has kept apprised of developments in the private sector
associated with the development of treatment and disposal technologies
and adjusted the fee basis accordingly. As described in the proposed
rule, the pricing is based on preliminary pricing from a U.S. vendor
and DOE is treating the source as business sensitive. DOE compared the
preliminary pricing to treatment and disposal in Canada, making
appropriate adjustments using the guidance from the DOE Cost Estimating
Guide (DOE-G-413.3-21) for a Class 2 cost estimate and found that the
preliminary pricing fell within the range for such an estimate. DOE
noted that the technical approach under consideration includes
additional encapsulation relative to the currently available disposal
in Canada and that no current actions to gain regulatory approval are
in progress.
This is included only as a cost basis for an assumed treatment and
disposal capability in the U.S. at some future date. It does not imply
a commitment on the part of the Environmental Protection Agency (EPA)
to promulgate a regulatory framework for treatment and disposal.
Comment: Why did DOE not consider disposal in Canada?
Response: MEBA directs DOE to designate a facility for long-term
management and storage of elemental mercury generated within the United
States. DOE notes, however, that treatment of elemental mercury in the
United States and subsequent disposal of the resulting mercury compound
in Canada is an option for generators of elemental mercury.
Comment: The proposed fee is too high.
[[Page 70406]]
Response: DOE based the proposed fee on information received from a
U.S. vendor in response to a solicitation in preparing the proposed
rule. DOE reviewed the response and compared it to market information
provided by companies engaged in elemental mercury storage that had
made certifications in accordance with 42 U.S.C. 6939f(g)(2)(B). This
price information was confirmed by stakeholders that are users of these
facilities during consultation. In 2019, DOE also reviewed the
responses to a Request for Expressions of Interest received from
multiple potential offerors before the solicitation was issued. This
led DOE to the conclusion that a reasonable market price for storage of
elemental mercury was in a range of $1,000/MT-year to $2,200/MT-year.
The receiving charge is the cost of purchasing required materials,
unloading the elemental mercury from the truck, moving it to its
storage location, checking compliance with the Waste Acceptance
Criteria and logging the shipment.
In response to comments received on the proposed fee, DOE has
revised the fee basis to properly allocate the receiving charge on a
per MT basis. As a result, the additional per shipment charge has been
deleted.
The removal charge is the cost of removing elemental mercury from
storage, loading it onto a truck and logging the shipment. This charge
is allocated on a per MT basis.
During consultation, DOE learned that generators of elemental
mercury in Nevada were paying approximately $1,000 for a shipment of up
to 15 MT of elemental mercury from Nevada to Alabama for storage. DOE
assumed a similar mileage of approximately 1,800 miles for shipment
from the DOE designated storage facility to a future treatment
facility. The mileage is based on transportation from Andrews County,
TX to Hellertown, PA. DOE considered Hellertown, PA to be a reasonably
hypothetical location for treatment of elemental mercury prior to
eventual disposal.
The fee has been revised to reflect payment of $1,000 for
transportation in year 16 using discounted funds (now, $800/MT). DOE
has kept apprised of developments in the private sector associated with
the development of treatment and disposal technologies and adjusted the
basis accordingly. As described in the proposed rule, the pricing is
based on preliminary pricing from a U.S. vendor and DOE is treating the
source as business sensitive. DOE compared the preliminary pricing to
treatment and disposal in Canada, making appropriate adjustments using
the guidance from the DOE Cost Estimating Guide (DOE-G-413.3-21) for a
Class 2 cost estimate and found that the preliminary pricing fell
within the range for such an estimate. DOE noted that the technical
approach under consideration includes additional encapsulation relative
to the currently available disposal in Canada and that no current
actions to gain regulatory approval are in progress. DOE has also
revised the calculation of the proposed fee to use discounted funds.
The resulting fee basis has been reduced from $55,100 per MT plus a
receiving charge of $3,250 per shipment, to $37,000 per MT. The cost
breakdown is given by the following schedule:
------------------------------------------------------------------------
Description Cost
------------------------------------------------------------------------
Net present value (NPV) of Total Storage Cost of 15 $11,700
years of storage @15-year real rate (1.45%)--includes
per metric ton materials cost..........................
Present value (PV) of Transportation cost ($1,000) in 800
year 15 @15-year real rate (1.45%).....................
PV of Treatment and Disposal cost ($30,900) in year 15 24,500
@15-year real rate (1.45%).............................
---------------
Total Fee/MT (rounded to nearest $)................. 37,000
------------------------------------------------------------------------
Comment: Why is DOE using 15 years of storage as a basis for the
fee?
Response: MEBA requires DOE to designate and operate a facility or
facilities for the long-term management and storage of elemental
mercury per 42 U.S.C. 6939f. Under the Resource Conservation and
Recovery Act, EPA is responsible for promulgating regulations for
storage, treatment, and disposal of elemental mercury (and other
mercury wastes) in the United States. Currently no treatment standard
exists or has been proposed that would allow land disposal of high-
purity elemental mercury waste, waste mercury compounds, or other high-
concentration mercury wastes. Although it is reasonable to assume that
this situation may change in the future--as reflected by DOE's estimate
of 15 years of storage--it does not imply a commitment on the part of
EPA to promulgate a regulatory framework for treatment and disposal.
Following consultations with EPA, DOE selected 15 years of storage in
recognition of DOE's and EPA's respective roles. DOE believes this
amount of time is reasonable given the uncertainty associated with the
timing of establishing a regulatory framework for the treatment and
disposal of high-purity elemental mercury.
Comment: Will there be any other costs at a future time?
Response: Once the fee has been paid and the elemental mercury has
been accepted, there will be no other costs imposed on generators.
Comment: Will DOE take ownership of the elemental mercury received?
Response: MEBA directs DOE to take custody of elemental mercury
delivered to the facility for long-term management and storage of
elemental mercury and to hold harmless, defend and provide
indemnification to persons who deliver elemental mercury to the
facility. Once the fee has been paid and the elemental mercury is
accepted at the facility, DOE assumes responsibility for its storage
and disposition.
Comment: Will there be an opportunity for public participation for
future fee increases?
Response: As provided for by MEBA, DOE may adjust the fee annually.
If this adjustment results in a significant alteration of the fee, DOE
will provide an opportunity for public participation. The parameters
that are subject to adjustment, as revised in response to public
comments, are as follows:
Number of years that elemental mercury will reside in
storage at the DOE designated facility.
Cost to store 1 MT of elemental mercury for the number of
years that elemental mercury will reside in storage at the DOE
designated facility.
Pro-rated cost of materials required for storage of
elemental mercury
Cost of shipment from the elemental mercury storage
facility to a treatment facility.
Cost of treatment of elemental mercury, and disposal of
the treated waste form.
Real interest rate from OMB Circular A-94.
Comment: Why does elemental mercury delivered to the DOE facility
need to be 99.5% pure?
[[Page 70407]]
Response: The requirement for 99.5% purity is consistent with the
guidance published by DOE in 2009 and has been chosen based on the need
to store the elemental mercury for an indefinite period. As noted in
the Long-Term Management and Storage of Elemental Mercury EIS at page
2-1 fn. 3, the treatment standard for wastes containing high
concentrations of mercury (greater than 260 parts per million) is
recovery through roasting or retorting, which is performed at various
commercial waste recovery facilities. This process yields high-purity
elemental mercury (e.g., elemental mercury that is at least 99.5
percent pure by volume) that is generally acceptable for reintroduction
back into commerce and is analogous to the materials to be stored in a
DOE designated storage facility.
Comment: The Supplement Analysis (SA) notes that Waste Control
Specialists (WCS) existing buildings will have to be redesigned, even
though no new buildings will have to be built. Again, such costs cannot
be included in the fee proposal.
Response: The Supplement Analysis EIS-0423-SA-01 makes no such
statement.
The WCS facility is permitted to receive elemental mercury
currently and no structural upgrades are anticipated. Consequently, no
design or construction costs are included in the fee basis for the
proposed fee.
Comment: Will the receiving charge be reduced for shipments under
15 MT?
Response: DOE has revised the fee basis to allocate the receiving
charge on a per MT basis. As a result, the additional per shipment
charge has been deleted.
Comment: The facility should have been designated/proposed prior to
publishing the proposed fee.
Response: DOE acknowledges that the language of MEBA envisions
designation of a facility prior to the establishment of the fee. DOE
has designated a facility for long-term management and storage of
elemental mercury since publication of the proposed rule.
Comment: DOE should consider investing funds in non-U.S. securities
for a better return.
Response: MEBA requires DOE to asses and collect the fee, but it
does not authorize DOE to retain fee proceeds and invest or otherwise
use them. Absent a DOE authority to retain the funds, they will be
deposited in the Treasury pursuant to 31 U.S.C. 3302 (Miscellaneous
Receipts Act).
Comment: If costs end up lower than the fee basis, will there be a
rebate?
Response: DOE will not provide rebates if the actual costs end up
lower than the fee basis. Similarly, if costs end up higher than the
fee basis, DOE will not invoice generators that have previously
delivered elemental mercury to the DOE designated facility for such
additional costs.
Comment: Will DOE petition EPA to change the RCRA standard to allow
treatment and disposal in U.S.?
Response: This comment is outside the scope of the rulemaking to
establish a fee for the long-term management and storage of elemental
mercury.
Comment: Mercury collected from recycling should not be subject to
fees.
Response: MEBA directs DOE to assess and collect a fee at the time
of delivery of elemental mercury to the facility for long-term
management and storage of such elemental mercury. MEBA does not include
exceptions for elemental mercury collected from recycling.
Comment: Mercury collected from recycling should not be defined as
hazardous waste.
Response: This comment is outside the scope of the rulemaking to
establish a fee for the long-term management and storage of elemental
mercury.
Comment: The proposed fee will substantially reduce recycling.
Response: MEBA directs DOE to conduct a study, in consultation with
EPA, on the impact of the long-term management and storage program for
elemental mercury on mercury recycling, and include proposals, if
necessary, to mitigate any negative impacts. DOE continues to gather
empirical information to assess these impacts.
Comment: The proposed fee will promote exportation of elemental
mercury.
Response: To export elemental mercury, a person must petition the
Administrator of EPA, who may grant an exemption provided that the
conditions of 15 U.S.C. 2611 (c)(4)(A)(i)-(vii) are met. To date EPA
has not granted any exemptions under this part of the MEBA (for more
information, see: https://www.epa.gov/mercury/questions-and-answers-mercury-export-ban-act-meba-2008).
DOE has not received any information to suggest the proposed fee
will result in a significant increase in such petitions.
Comment: Landfilling of mercury is not condoned.
Response: For purposes of estimating the fee, DOE has assumed a
scenario in which elemental mercury is disposed in a regulated landfill
following treatment by conversion to red mercury sulfide. This method
of treatment of elemental mercury and subsequent disposal of the
resulting mercury compound is used safely in Canada.
Although there is no current regulatory framework that allows this
practice in the U.S., in order to establish a fee basis, as required by
MEBA, DOE considered it reasonable to assume that such a framework may
exist in the future.
Comment: What happens after 15 years?
Response: The fee was calculated estimating 15 years of storage
followed by treatment and disposal. DOE acknowledges that in the
absence of a regulatory framework for such treatment and disposal,
elemental mercury in storage at the DOE facility would continue to be
stored beyond 15 years.
Comment: What about Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA) liability?
Response: MEBA directs DOE to take custody of elemental mercury
delivered to the facility for long-term management and storage of
elemental mercury and to hold harmless, defend and provide
indemnification to persons who deliver elemental mercury to the
facility.
Comment: What are the acceptance criteria at the DOE facility for
long-term management and storage of elemental mercury?
Response: The Waste Acceptance Criteria (DOE/EM-0007) is available
at https://www.energy.gov/sites/prod/files/2019/12/f69/Waste-Acceptance-Criteria-Final-12-12-2018.pdf.
Comment: DOE failed to consider the environmental impact of the
fee.
Response: The EIS evaluated seven government and commercial sites
and the supplemental environmental impact statement (SEIS) evaluated
additional alternatives for a facility at and in the vicinity of the
Waste Isolation Pilot Plant (WIPP) for long-term management and storage
of elemental mercury. The EIS and SEIS noted the relevant statutory
provision regarding assessment and collection of a fee. The assessment
and collection of the fee is part of the implementation of the proposed
action. Elemental mercury that is not delivered to the long-term
management and storage site would continue to be managed and stored by
the current holder of the elemental mercury. While DOE cannot determine
which specific elemental mercury would continue to be managed by the
current holder at a given fee basis, such elemental mercury would have
impacts similar to those analyzed under the no action alternative in
the EIS and SEIS.
[[Page 70408]]
Comment: The Council on Environmental Quality (CEQ) regulations
require cost-benefit analyses to be appended to or incorporated into an
EIS because they are relevant to the choices among environmentally
different alternatives.
Response: CEQ National Environmental Policy Act (NEPA) Regulations
(40 CFR 1502.23) require that a cost-benefit analysis be incorporated
by reference or appended only ``[i]f a cost-benefit analysis relevant
to the choice among environmentally different alternatives is being
considered for the proposed action.'' As discussed in the Record of
Decision, DOE's decision was ``[b]ased on consideration of the analysis
in the Final Elemental Mercury Storage EIS, SEIS, and recently prepared
SA'' and ``on other programmatic, policy, logistic, and cost
considerations.''
Comment: The EIS/SEIS/SA did not discuss potential environmental
impacts of treatment and disposal of elemental mercury, or of
transportation of elemental mercury for treatment and disposal.
Response: DOE has not proposed to treat and dispose of elemental
mercury, or to transport elemental mercury for treatment and disposal.
Thus, DOE has not analyzed the potential environmental impacts of such
a proposal. Nonetheless, DOE has used treatment, disposal, and related
transportation costs to calculate the fee for long-term elemental
mercury management and storage. Although commenters have provided
feedback regarding the components of a fee calculation based on this
scenario, comments have not supported basing the fee on indefinite
storage of elemental mercury.
IV. Regulatory Review
A. Review Under Executive Order 12866
This final rule has been determined not to be a ``significant
regulatory action'' under Executive Order 12866, ``Regulatory Planning
and Review,'' 58 FR 51735 (October 4, 1993), as amended by Executive
Order 13258, 67 FR 9385 (February 26, 2002). Accordingly, this action
was not subject to review under that Executive Order by the Office of
Information and Regulatory Affairs (OIRA) of the Office of Management
and Budget.
B. Review Under the National Environmental Policy Act
In accordance with the National Environmental Policy Act (NEPA) of
1969 (42 U.S.C. 4321 et seq.), the Council on Environmental Quality
regulations and the DOE regulations implementing NEPA, DOE prepared the
following documents analyzing the potential environmental impacts of
long-term management and storage of elemental mercury: Long-Term
Management and Storage of Elemental Mercury Environmental Impact
Statement (DOE/EIS-0423, January 2011); Long-Term Management and
Storage of Elemental Mercury Supplemental Environmental Impact
Statement (DOE/EIS-0423-S1, September 2013); and Supplement Analysis of
the Final Long-Term Management and Storage of Elemental Mercury
Environmental Impact Statement (DOE/EIS-423-SA-01). The environmental
impact statement (and the supplemental environmental impact statement)
noted the relevant statutory provision regarding assessment and
collection of a fee. The assessment and collection of the fee is part
of the implementation of the action.
C. Review Under the Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires
preparation of an initial regulatory flexibility analysis for any rule
that by law must be proposed for public comment, unless the agency
certifies that the rule, if promulgated, will not have a significant
economic impact on a substantial number of small entities. As required
by Executive Order 13272, ``Proper Consideration of Small Entities in
Agency Rulemaking,'' 67 FR 53461 (August 16, 2002), DOE published
procedures and policies on February 19, 2003, to ensure that the
potential impacts of its rules on small entities are properly
considered during the rulemaking process (68 FR 7990). DOE has made its
procedures and policies available on the Office of General Counsel's
website: https://www.energy.gov/sites/prod/files/gcprod/documents/eo13272.pdf.
DOE has reviewed this rule under the provisions of the Regulatory
Flexibility Act and the procedures and policies published on February
19, 2003. For the reasons explained below, DOE has determined that this
rule, if adopted, will not have a significant economic impact on a
substantial number of small entities.
In 2019, DOE published Supplement Analysis of the Final Long-Term
Management and Storage of Elemental Mercury Environmental Impact
Statement (DOE/EIS-423-SA-01) that updated the expected inventory
during the next 40 years to 6,800 MT. DOE expects approximately 35-50
entities to pay the fee established in this final rule. DOE expects
that the majority of the fees paid will be paid by less than 10 of
these entities. The Nevada Mining Association (NMA) membership includes
the generators of elemental mercury that are expected to deliver the
majority of elemental mercury to the DOE facility. DOE contacted NMA
for information to help determine how many of its membership qualify as
small entities under NAICS codes 212221 (Gold ore mining, 1500
employees), 212222 (Silver ore mining, 250 employees), 212230 (Copper,
nickel, lead and zinc mining, 750 employees) and 212299 (All other
metal ore mining, 750 employees). The information received showed that
there are 31 entities that fall below the small business standards
versus 2 entities that exceeded the standard. DOE estimates that the
largest impact would be to entities engaged in mining that do not
qualify as small entities under NAICS codes. This impact will vary
based on ore grade and price fluctuations in the precious metals
market.
Some entities that have either accepted elemental mercury for
storage, in accordance with 42 U.S.C. 6939f(g)(2)(B) or have placed
elemental mercury in storage in accordance with 42 U.S.C.
6939f(g)(2)(B) or (D), awaiting the start of operation at the DOE
facility will be required to pay the fee for storage at the DOE site.
These entities would be classified under the NAICS codes in the
previous paragraph or NAICS code 562112 (Hazardous Waste Collection,
$41.5M). The largest of these impacts are likely be a one-time expense
shortly after the start of operations at the DOE facility. DOE
determined, however, that none of these entities are likely to be small
entities.
As a result of MEBA, with the exception of elemental mercury that
has been placed in storage in accordance with 42 U.S.C. 6939f(g)(2)(B)
or (D), generators of elemental mercury can either send elemental
mercury that is being discarded to the DOE designated facility for
long- term management and storage, or treat the elemental mercury to
form a mercury compound and then export the mercury compound for
environmentally sound disposal in accordance with 15 U.S.C.
2611(c)(7)(A)-(B) and (D). Export of mercury compounds for
environmentally sound disposal in another country may also be subject
to that country's obligations under the Basel Convention, if
applicable, and that country's applicable domestic laws and
regulations. While international sales generally are prohibited by
MEBA's export ban, 42 U.S.C. 2611(c)(1), non-Federal generators may
also consider
[[Page 70409]]
domestic sales of elemental mercury.\4\ Although domestic sale of
elemental mercury is an option without a negative economic impact, it
is likely that the supply would exceed demand and thus that option may
not be viable for some non-Federal generators. As stated above, for
those non-Federal generators for whom sale is not a viable option, the
available options are sending the elemental mercury to the DOE
designated facility or environmentally sound disposal of certain
mercury compounds in accordance with 15 U.S.C. 2611(c)(7)(D). Treatment
and disposal is available at a cost of approximately $26,500 (USD) per
metric ton in Canada, for example, and generators can choose this
option if it is more cost effective for them.
---------------------------------------------------------------------------
\4\ MEBA provides that ``no Federal agency shall convey, sell,
or distribute . . . any elemental mercury under the control or
jurisdiction of the Federal agency.'' 15 U.S.C. 2605(f). MEBA
provides an exception for ``a transfer between Federal agencies of
elemental mercury under the control or jurisdiction of the Federal
agency.'' Id. at 15 U.S.C. 2605(f)(2)(A).
---------------------------------------------------------------------------
Because DOE has determined that entities currently storing
elemental mercury who will be required to pay the fee established by
DOE for storage in the DOE facility are not likely to be small
entities, and because those entities not required to pay the fee
established by DOE for storage in the DOE facility can choose another
disposal option if that option is more cost effective for them, DOE has
determined that this rule does not have a significant economic impact
on a substantial number of small entities.
DOE's certification and supporting statement of factual basis was
provided to the Chief Counsel for Advocacy of the Small Business
Administration pursuant to 5 U.S.C. 605(b). The Department did not
receive any comments on the certification and has responded to comments
regarding the economic impacts of the rule in Section III of this final
rule.
D. Review Under the Paperwork Reduction Act
This rulemaking would impose no new information or recordkeeping
requirements. Accordingly, OMB clearance is not required under the
Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. 3501 et seq.).
Notwithstanding any other provision of the law, no person is
required to respond to, nor shall any person be subject to a penalty
for failure to comply with, a collection of information subject to the
requirements of the PRA, unless that collection of information displays
a currently valid OMB Control Number.
E. Review Under the Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4) requires each Federal agency to prepare a written assessment of the
effects of any Federal mandate in a proposed or final agency regulation
that may result in the expenditure by States, tribal or local
governments, in the aggregate, or by the private sector, of $100
million in any one year. The Act also requires Federal agencies to
develop an effective process to permit timely input by elected
officials of State, tribal, or local governments on a proposed
significant intergovernmental mandate, and requires an agency plan for
giving notice and opportunity to provide timely input to potentially
affected small governments before establishing any requirements that
might significantly or uniquely affect small governments. DOE has
determined that this rule does not contain any Federal mandates
exceeding $100 million in any one year affecting States, tribal, or
local governments, or the private sector, and, thus, no assessment or
analysis is required under the Unfunded Mandates Reform Act of 1995.
F. Review Under Executive Order 12988
With respect to the review of existing regulations and the
promulgation of new regulations, section 3(a) of Executive Order 12988,
``Civil Justice Reform'' 61 FR 4779 (February 7, 1996), imposes on
Federal agencies the general duty to adhere to the following
requirements: (1) Eliminate drafting errors and ambiguity; (2) write
regulations to minimize litigation; (3) provide a clear legal standard
for affected conduct rather than a general standard; and (4) promote
simplification and burden reduction. With regard to the review required
by section 3(a), section 3(b) of Executive Order 12988, specifically
requires that Federal agencies make every reasonable effort to ensure
that the regulation: (1) Clearly specifies the preemptive effect, if
any; (2) clearly specifies any effect on existing Federal law or
regulation; (3) provides a clear legal standard for affected conduct
while promoting simplification and burden reduction; (4) specifies the
retroactive effect, if any; (5) adequately defines key terms; and (6)
addresses other important issues affecting the clarity and general
draftsmanship under guidelines issued by the Attorney General. Section
3(c) of Executive Order 12988 requires executive agencies to review
regulations in light of applicable standards in section 3(a) and
section 3(b) to determine whether they are met or it is unreasonable to
meet one or more of them. DOE has completed the required review and
determined that, to the extent permitted by law, this rule meets the
relevant standards of Executive Order 12988.
G. Review Under Executive Order 13132
Executive Order 13132, ``Federalism,'' 64 FR 43255 (August 10,
1999) imposes certain requirements on agencies formulating and
implementing policies or regulations that preempt State law or that
have federalism implications. Agencies are required to examine the
constitutional and statutory authority supporting any action that would
limit the policymaking discretion of the States and to carefully assess
the necessity for such actions. The Executive order also requires
agencies to have an accountable process to ensure meaningful and timely
input by State and local officials in the development of regulatory
policies that have federalism implications. On March 14, 2000, DOE
published a statement of policy describing the intergovernmental
consultation process it will follow in the development of such
regulations. (65 FR 13735). DOE has examined this rule and has
determined that it would not preempt State law and would not have
substantial direct effects on the States, on the relationship between
the national government and the States, or on the distribution of power
and responsibility among the various levels of government. No further
action is required by Executive Order 13132.
H. Review Under the Treasury and General Government Appropriations Act,
1999
Section 654 of the Treasury and General Government Appropriations
Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family
Policymaking Assessment for any proposed rule that may affect family
well-being. This rule would have no impact on the autonomy or integrity
of the family as an institution. Accordingly, DOE has concluded that it
is not necessary to prepare a Family Policymaking Assessment.
I. Review Under Executive Order 13211
Executive Order 13211, ``Actions Concerning Regulations That
Significantly Affect Energy, Supply, Distribution, or Use,'' 66 FR
28355 (May 22, 2001) requires preparation and submission to OMB of a
Statement of Energy Effects for any significant energy action. A
``significant energy action'' is defined as any action by an agency
that promulgated or is expected to lead to
[[Page 70410]]
promulgation of a final rule, and that: (1)(i) Is a significant
regulatory action under Executive Order 12866, or any successor order;
and (ii) is likely to have a significant adverse effect on the supply,
distribution, or use of energy; or (2) is designated by the
Administrator of OIRA as a significant energy action. For any
significant energy action, the agency must give a detailed statement of
any adverse effects on energy supply, distribution, or use should the
proposal be implemented, and of reasonable alternatives to the action
and their expected benefits on energy supply, distribution, and use.
DOE has determined that this rule would not have a significant adverse
effect on the supply, distribution, or use of energy. The Administrator
of OIRA has also not determined that this rule is a significant energy
action. Thus, the requirement to prepare a Statement of Energy Effects
does not apply.
J. Review Under the Treasury and General Government Appropriations Act,
2001
The Treasury and General Government Appropriations Act, 2001 (44
U.S.C. 3516 note) provides for agencies to review most dissemination of
information to the public under guidelines established by each agency
pursuant to general guidelines issued by OMB. OMB guidelines were
published at 67 FR 8452 (Feb. 22, 2002), and DOE guidelines were
published at 67 FR 62446 (Oct. 7, 2002). DOE has reviewed this rule
under the OMB and DOE guidelines and has concluded that it is
consistent with applicable policies in those guidelines.
K. Review Under Executive Orders 13771
This rule is not subject to the requirements of E.O. 13771 (82 FR
9339, February 3, 2017) because this rule is considered to be a
``transfer rule.''
L. Congressional Notification
As required by 5 U.S.C. 801, DOE will report to Congress on the
promulgation of this rule prior to its effective date. The report will
state that it has been determined that the rule is a ``major rule'' as
defined by 5 U.S.C. 804(2).
V. Approval of the Secretary of Energy
The Secretary of Energy has approved publication of this final
rule.
List of Subjects in 10 CFR Part 955
Elemental mercury, Hazardous waste treatment, storage, and
disposal, Reporting and recordkeeping requirements.
Signed in Washington, DC, on December 18, 2019.
Paul M. Dabbar,
Under Secretary for Science.
0
For the reasons set forth in the preamble, the Department of Energy
adds part 955 to title 10 of the Code of Federal Regulations to read as
follows:
PART 955--FEE FOR LONG-TERM MANAGEMENT AND STORAGE OF ELEMENTAL
MERCURY UNDER THE MERCURY EXPORT BAN ACT OF 2008, AS AMENDED
Sec.
955.1 Purpose.
955.2 Scope and applicability.
955.3 Definitions.
955.4 Payment of fees.
955.5 Schedule of fees.
Authority: 42 U.S.C. 6939f(b).
Sec. 955.1 Purpose.
This part establishes a fee for long-term management and storage of
elemental mercury in accordance with the Mercury Export Ban Act of
2008, as amended, section 5(b), (42 U.S.C. 6939f(b)).
Sec. 955.2 Scope and applicability.
This part applies to persons who deliver elemental mercury to the
U.S. Department of Energy (DOE) designated facility for long-term
management and storage.
Sec. 955.3 Definitions.
The following definitions are provided for purposes of this part:
DOE means the U.S. Department of Energy.
Elemental mercury means the element with the chemical symbol Hg and
atomic number 80 in its liquid form. The form acceptable to DOE is at
least 99.5% elemental mercury by volume. DOE will not accept elemental
mercury in environmental media or consumer products (fluorescent lamps,
batteries, etc.) or elemental mercury in manufactured items
(manometers, thermometers, switches, etc.).
Metric ton means 1,000 kilograms (approximately 2,204 lbs.).
Sec. 955.4 Payment of fees.
Fees are payable upon delivery of elemental mercury to the DOE
facility. All fee payments are to be made payable to the U.S.
Department of Energy. The payments are to be made in U.S. funds by
electronic funds transfer such as ACH (Automated Clearing House) using
E.D.I. (Electronic Data Interchange), check, draft, money order, or
credit card.
Sec. 955.5 Schedule of fees.
(a) Persons delivering elemental mercury to the DOE facility for
long-term management and storage of elemental mercury shall pay fees in
accordance with paragraph (b) of this section.
(b) The fee per metric ton is the sum of:
(1) The net present value of elementary mercury storage for the
number of years in storage using the appropriate interest rate from
Office of Management and Budget (OMB) Circular A-94;
(2) The pro-rated cost of materials required for storage of
elemental mercury;
(3) The present value of the cost of transporting elemental mercury
from the storage facility to a treatment facility in the year following
the last year of storage using the appropriate interest rate from OMB
Circular A-94; and
(4) The present value of the cost of treatment and disposal in the
year following the last year of storage using the appropriate interest
rate from OMB Circular A-94.
(c) The values in paragraphs (b)(1) through (4) of this section may
be updated annually. These values are posted to the DOE Long-Term
Management and Storage of Elemental Mercury website (https://www.energy.gov/em/services/waste-management/waste-and-materials-disposition-information/long-term-management-and). DOE will publish
notice in the Federal Register when the values are updated to inform
the public of the updates.
[FR Doc. 2019-27672 Filed 12-20-19; 8:45 am]
BILLING CODE 6450-01-P