Proposed Rule2023-28498

Clean Water Act Effluent Limitations Guidelines and Standards for the Meat and Poultry Products Point Source Category

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
January 23, 2024

Issuing agencies

Environmental Protection Agency

Abstract

The Environmental Protection Agency (EPA or the Agency) is proposing a regulation to revise the technology-based effluent limitations guidelines and standards (ELGs) for the meat and poultry products (MPP) point source category. The proposed rule would improve water quality and protect human health and the environment by reducing the discharge of nutrients and other pollutants to the nation's surface waters. EPA is proposing several regulatory options, including the preferred option discussed in this notice. The preferred option is estimated to cost $232 million annually and reduce pollutant discharges by approximately 100 million pounds per year.

Full Text

<html>
<head>
<title>Federal Register, Volume 89 Issue 15 (Tuesday, January 23, 2024)</title>
</head>
<body><pre>
[Federal Register Volume 89, Number 15 (Tuesday, January 23, 2024)]
[Proposed Rules]
[Pages 4474-4537]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-28498]



[[Page 4473]]

Vol. 89

Tuesday,

No. 15

January 23, 2024

Part III





 Environmental Protection Agency





-----------------------------------------------------------------------





40 CFR Part 432





Clean Water Act Effluent Limitations Guidelines and Standards for the 
Meat and Poultry Products Point Source Category; Proposed Rule

Federal Register / Vol. 89 , No. 15 / Tuesday, January 23, 2024 / 
Proposed Rules

[[Page 4474]]


-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 432

[EPA-HQ-OW-2021-0736; FRL-8885-01-OW]
RIN 2040-AG22


Clean Water Act Effluent Limitations Guidelines and Standards for 
the Meat and Poultry Products Point Source Category

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule and notice of public hearing.

-----------------------------------------------------------------------

SUMMARY: The Environmental Protection Agency (EPA or the Agency) is 
proposing a regulation to revise the technology-based effluent 
limitations guidelines and standards (ELGs) for the meat and poultry 
products (MPP) point source category. The proposed rule would improve 
water quality and protect human health and the environment by reducing 
the discharge of nutrients and other pollutants to the nation's surface 
waters. EPA is proposing several regulatory options, including the 
preferred option discussed in this notice. The preferred option is 
estimated to cost $232 million annually and reduce pollutant discharges 
by approximately 100 million pounds per year.

DATES: Comments must be received on or before March 25, 2024.
    Public hearing: EPA will hold two public hearings about this 
proposed rule on January 24, 2024 and January 31, 2024. Visit EPA's 
website at <a href="https://www.epa.gov/eg/meat-and-poultry-products-effluent-guidelines-2024-proposed-rule">https://www.epa.gov/eg/meat-and-poultry-products-effluent-guidelines-2024-proposed-rule</a> for additional information about the 
public hearings and for any potential changes to the public hearing 
schedule.

ADDRESSES: You may send comments, identified by Docket ID No. EPA-HQ-
OW-2021-0736, by any of the following methods:
    <bullet> Federal eRulemaking Portal: <a href="https://www.regulations.gov/">https://www.regulations.gov/</a> 
(our preferred method). Follow the online instructions for submitting 
comments.
    <bullet> Mail: U.S. Environmental Protection Agency, EPA Docket 
Center, Office of Water Docket, Mail Code 28221T, 1200 Pennsylvania 
Avenue NW, Washington, DC 20460.
    <bullet> Hand Delivery or Courier: EPA Docket Center, WJC West 
Building, Room 3334, 1301 Constitution Avenue NW, Washington, DC 20004. 
The Docket Center's hours of operations are 8:30 a.m.-4:30 p.m., 
Monday-Friday (except Federal Holidays).
    Instructions: All submissions received must include the Docket ID 
No. for this rulemaking. Comments received may be posted without change 
to <a href="https://www.regulations.gov/">https://www.regulations.gov/</a>, including any personal information 
provided. For detailed instructions on sending comments and additional 
information on the rulemaking process, see the ``Public Participation'' 
heading of the SUPPLEMENTARY INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: Steve Whitlock, Engineering and 
Analysis Division, Office of Water (4303T), Environmental Protection 
Agency, 1200 Pennsylvania Avenue NW, Washington, DC 20460; telephone 
number: 202-566-1541; email address: <a href="/cdn-cgi/l/email-protection#aef9c6c7dac2c1cdc580fddacbd8cbeecbdecf80c9c1d8"><span class="__cf_email__" data-cfemail="94c3fcfde0f8fbf7ffbac7e0f1e2f1d4f1e4f5baf3fbe2">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: 
    Preamble Acronyms and Abbreviations. EPA uses multiple acronyms and 
terms in this preamble. While this list may not be exhaustive, to ease 
the reading of this preamble and for reference purposes, EPA defines 
terms and acronyms used in Appendix A of this preamble.
    Supporting Documentation. The proposed rule is supported by several 
documents, including:
    <bullet> Technical Development Document for Proposed Effluent 
Limitations Guidelines and Standards for the Meat and Poultry Products 
Point Source Category (TDD), Document No. 821-R-23-011. This report 
summarizes the technical and engineering analyses supporting the 
proposed rule including cost methodologies, pollutant removal 
estimates, non-water quality environmental impacts, and calculation of 
the proposed effluent limitations.
    <bullet> Environmental Assessment Analysis for Proposed Effluent 
Limitations Guidelines and Standards for the Meat and Poultry Products 
Point Source Category (EA Report), Document No. 821-R-23-012. This 
report summarizes the potential environmental and human health impacts 
estimated to result from implementation of the proposed rule. The 
report also describes the environmental justice analysis conducted.
    <bullet> Benefit and Cost Analysis for Proposed Effluent 
Limitations Guidelines and Standards for the Meat and Poultry Products 
Point Source Category (BCA Report), Document No. 821-R-23-013. This 
report summarizes the societal benefits and costs estimated to result 
from implementation of the proposed rule.
    <bullet> Regulatory Impact Analysis for Proposed Effluent 
Limitations Guidelines and Standards for the Meat and Poultry Products 
Point Source Category (RIA), Document No. 821-R-23-014. This report 
presents a profile of the MPP industry, a summary of estimated costs 
and impacts associated with the proposed rule, and an assessment of the 
potential impacts on employment and small businesses.
    <bullet> Docket Index for the Proposed Effluent Limitations 
Guidelines and Standards for the Meat and Poultry Products Point Source 
Category. This document provides a list of the additional memoranda, 
references, and other information EPA relied on for the proposed 
revisions to the MPP ELGs.

Table of Contents

I. Executive Summary
    A. Purpose of Rule
    B. Summary of Proposed Rule
II. Public Participation
III. General Information
    A. Does this action apply to me?
    B. What action is the Agency taking?
    C. What is the Agency's authority for taking this action?
    D. What are the incremental costs and benefits of this action?
IV. Background
    A. Clean Water Act
    B. Effluent Limitations Guidelines and Standards
    1. Best Practicable Control Technology Currently Available (BPT)
    2. Best Conventional Pollutant Control Technology (BCT)
    3. Best Available Technology Economically Achievable (BAT)
    4. Best Available Demonstrated Control Technology (BADCT) for 
New Source Performance Standards (NSPS)
    5. Pretreatment Standards for Existing Sources (PSES)
    6. Pretreatment Standards for New Sources (PSNS)
    C. Actions Leading to Revisions to the Meat and Poultry Products 
Rule
    1. National Review of Nutrient Discharges From Industrial 
Sources
    2. Detailed Study of Meat and Poultry Products
    3. Announcement of Rule in Preliminary Effluent Guidelines Plan 
15
    4. Litigation and Consent Decree
V. Meat and Poultry Products Industry Description
    A. General Description of Industry
    B. Control and Treatment Technologies
    1. Conventional Pollutant Removal
    2. Biological/Organic Pollutant Removal
    3. Phosphorus Removal
    4. Pathogen Removal
    5. Chlorides Removal
    6. Solids Handling
VI. Data Collection
    A. Information From the Meat and Poultry Products Industry
    1. Survey
    2. Stakeholder Meetings and Outreach
    B. Economic Data
    1. Facility and Firm-Level Economic Data
    2. Industry and Sector-Level Economic Data

[[Page 4475]]

    C. Other Data Sources
    1. Site Visits
    2. Wastewater Sampling
VII. Proposed Regulation
    A. Description of the Options
    B. Proposed Changes to Subcategories
    C. Rationale for the Preferred Option (Option 1)
    1. Direct Discharging Facilities (BAT)
    a. Availability of Nitrogen and Phosphorus Removal Technologies
    b. Economic Achievability of Nitrogen and Phosphorus Removal
    c. Non-Water Quality Environmental Impacts of Nitrogen and 
Phosphorus Removal
    2. Indirect Discharging Facilities (PSES/PSNS)
    a. BAT Rationale for PSES/PSNS for Nutrients
    b. BPT/BCT Rationale for PSES/PSNS for Conventional Pollutant
    c. Technological Availability
    d. Costs of Conventional Pollutants Removal (BPT/BCT)
    e. Non-Water Quality Environmental Impacts (BPT/BCT)
    D. Rationale for Other Regulatory Options Proposed (Options 2 
and 3)
    E. Rationale for Rejecting Options 2 and 3 as the Preferred 
Option
    F. Additional Provisions
    G. Small Business Considerations From the Small Business 
Advocacy Review Panel
VIII. Costs, BPT Wholly Disproportionate Cost Test, Economic 
Achievability, and Other Economic Impacts
    A. BPT Wholly Disproportionate Cost Test
    B. BCT Cost Test
    C. Economic Achievability Analysis for BAT
    1. Facility Closure Analysis (BAT)
    2. BAT Cost-to-Revenue Analyses
    D. Other Economic Analyses
    1. Facility Closure Analysis
    2. Facility and Firm Level Cost-to-Revenue Analyses
    3. Market Effects
    4. Employment Effects
    5. Chlorides Removal Costs and Impacts
IX. Pollutant Loadings
    A. Estimate of Existing Industry Pollutant Discharges
    B. Summary of Incremental Changes of Pollutant Loadings From 
Regulatory Options
X. Non-Water Quality Environmental Impacts
    A. Energy Requirements
    B. Air Pollution
    C. Solid Waste Generation
XI. Environmental Assessment
    A. Introduction
    B. Summary of Environmental and Human Health Impacts
    C. Environmental Assessment Methodology
    D. Results From the Environmental Assessment
    1. Improvements in Surface Water Quality
    2. Improvements to Vulnerable Species Habitats
    3. Human Health Impact Improvements
XII. Benefits Analysis
    A. Categories of Benefits Analyzed
    B. Quantification and Monetization of Benefits
    1. Human Health Effects From Surface Water Quality Changes
    2. Ecological Condition and Recreational Use Effects From 
Changes in Surface Water Quality Improvements
    3. Changes in Air Quality Related Effects
    4. Other Quantified and/or Monetized Benefits
    C. Total Monetized Benefits
    D. Non-Monetized Benefits
XIII. Environmental Justice Impacts
    A. Literature Review
    B. Screening Analysis
    C. Community Outreach
    D. Distribution of Benefits
    1. Drinking Water Quality
    2. Fisher Population
    E. Results of the Analysis
XIV. Development of Effluent Limitations and Standards
    A. Criteria Used To Select Data as the Basis for the Limitations 
and Standards
    B. Data Selection for Each Technology Option
XV. Regulatory Implementation
    A. Implementation of New Limitations and Standards
    B. Reporting and Recordkeeping Requirements
    C. Applicability of PSNS/NSPS Requirements
XVI. Related Acts of Congress, E.O.s, and Agency Initiatives
    A. Executive Order 12866: Regulatory Planning and Review and 
Executive Order 14094: Modernizing Regulatory Review
    B. Paperwork Reduction Act
    C. Regulatory Flexibility Act
    D. Unfunded Mandates Reform Act
    E. E.O. 13132: Federalism
    F. E.O. 13175: Consultation and Coordination With Indian Tribal 
Governments
    G. E.O. 13045: Protection of Children From Environmental Health 
Risks and Safety Risks
    H. E.O. 13211: Actions That Significantly Affect Energy Supply, 
Distribution, or Use
    I. National Technology Transfer and Advancement Act
    J. E.O. 12898: Federal Actions To Address Environmental Justice 
in Minority Populations and Low-Income Populations; Executive Order 
14096 Revitalizing Our Nation's Commitment to Environmental Justice 
for All
Appendix A to the Preamble: Definitions, Acronyms, and Abbreviations 
Used in This Preamble

I. Executive Summary

A. Purpose of Rule

    EPA is proposing revisions to a regulation that would apply to 
wastewater discharges from meat and poultry products (MPP) facilities. 
The MPP industry discharges large quantities of nutrients, such as 
nitrogen and phosphorus, that enter the Nation's waters. Nutrient 
pollution is one of the most widespread, costly, and challenging 
environmental problems impacting water quality in the United States. 
Excessive nitrogen and phosphorus in surface water can lead to a 
variety of problems, including eutrophication and harmful algal blooms, 
that have negative impacts on human health and the environment. EPA 
reported in Preliminary Effluent Guidelines Program Plan 15 
(Preliminary Plan 15. USEPA. 2021. EPA-821-R-21-003) that the MPP 
industry discharges the highest phosphorus levels and second highest 
nitrogen levels of all industrial categories.
    The MPP industry has an estimated 5,055 facilities across the 
country that engage in meat and/or poultry slaughter, further 
processing, and/or rendering. Proposed requirements would reduce the 
amount of nutrients and other pollutants discharged from the MPP 
industry, both directly into waters of the United States under state or 
EPA-issued NPDES permits and indirectly via sanitary sewers or 
transport to and through municipal sewage treatment plants, also known 
as Publicly Owned Treatment Works (POTWs). Importantly, this rule would 
advance progress on environmental justice goals.
    EPA initially promulgated the MPP ELGs in 1974 and amended the 
regulation in 2004. It currently applies only to direct dischargers 
(those that discharge directly to a water of the United States), and 
only to about 150 of the 5,055 MPP facilities in the industry. 
Phosphorus is not regulated under the current ELGs. Pollutants in the 
wastewater from MPP indirect dischargers, which are not currently 
regulated by the ELGs, can interfere with or pass through POTWs. 
Research also shows communities near MPP facilities are likely to 
experience multiple environmental stressors, and in these communities, 
minority and low-income percentiles exceed national averages. 
Additionally, some MPP facilities are already using available and 
affordable technologies that can be used at additional facilities 
nationwide to reduce pollutant discharges from the MPP industry.
    EPA is considering a range of options in this rulemaking. The 
options include more stringent effluent limitations on total nitrogen, 
new effluent limitations on total phosphorus, updated effluent 
limitations for other pollutants, new pretreatment standards for 
indirect dischargers, and revised production thresholds for some of the 
subcategories in the existing rule. EPA is also requesting comment on 
potential effluent limitations on chlorides for high chloride waste 
streams, establishing effluent limitations for E.

[[Page 4476]]

coli for direct dischargers, and including conditional limits for 
indirect dischargers that discharge to POTWs that remove nutrients to 
the extent that would be required under the proposed pretreatment 
standards in certain regulatory options. Each option would result in 
different levels of pollutant reduction and costs.
    EPA is proposing a preferred regulatory option (described in 
section VII below) and seeking comment on the other options. EPA 
estimates the preferred regulatory option (Option 1) would reduce 
pollutant discharges by approximately 100 million pounds per year. EPA 
predicts the preferred regulatory option would result in environmental 
and ecological improvements, including reduced adverse impacts to 
wildlife and human health.
    EPA estimates that the proposed rule based on the preferred 
regulatory option will cost $232 million per year in social costs and 
result in $90 million per year in monetized benefits using a 3 percent 
discount rate and $227 million per year in social costs and result in 
$85 million per year in monetized benefits using a 7 percent discount 
rate. The benefit numbers are based on modeling water quality 
improvements in five regional water basins and then extrapolating the 
benefits results from those basins to remainder of the country.\1\ The 
benefit estimates also include the national effects of increased air 
pollution and greenhouse gas emissions under the rule.
---------------------------------------------------------------------------

    \1\ See Section 3 of the Benefit and Costs Analysis for 
descriptions of the water quality modeling and monetized benefit 
calculations. See Appendix E of the Benefit and Costs Analysis for 
descriptions of the approach for extrapolating the regional water 
quality benefits to the rest of the country.
---------------------------------------------------------------------------

    Not all costs and benefits can be fully quantified and monetized, 
and importantly, EPA anticipates the proposed rule would also generate 
important unquantified benefits (e.g., improved habitat conditions for 
plants, invertebrates, fish, amphibians, and the wildlife that prey on 
aquatic organisms). Furthermore, while some health benefits and 
willingness to pay for water quality improvements have been quantified 
and monetized, those estimates may not fully capture all important 
water quality-related benefits.

B. Summary of Proposed Rule

    EPA proposes to revise the ELGs for the MPP industry based on Best 
Practicable Control Technology Currently Available (BPT), Best 
Conventional Pollutant Control Technology (BCT), Best Available 
Technology Economically Achievable (BAT), Best Available Demonstrated 
Control Technology (BADCT) for New Source Performance Standards (NSPS), 
Pretreatment Standards for Existing Sources (PSES), and Pretreatment 
Standards for New Sources (PSNS). BPT, BCT, and BAT would apply to 
existing facilities that directly discharge to waters of the U.S. 
BADCT/NSPS would apply to new sources that directly discharge to waters 
of the U.S. PSES and PSNS would apply to existing and new sources, 
respectively, that discharge indirectly via POTWs.
    EPA is proposing three regulatory options that build on the current 
MPP ELGs. Option 1, which is EPA's preferred regulatory option in this 
proposed rule, would include new phosphorus limits and revised nitrogen 
limits \2\ for large direct dischargers and new pretreatment standards 
on certain conventional pollutants for large indirect dischargers. 
Here, large refers to the existing production thresholds in the current 
MPP ELGs. Option 2 would include the requirements in Option 1 and add 
nutrient limits for indirect discharging first processors and renderers 
above specified production thresholds. Option 3 would be similar to 
Option 2 but with lower production thresholds for the nutrient limits 
and conventional pollutant limits for both direct and indirect 
dischargers. In contrast to Options 1 and 2, Option 3 would use lower 
production thresholds than those in the existing rule. All three 
options would minimize impacts to small firms, based on the impact 
thresholds described in EPA's Regulatory Flexibility Act guidance for 
assessing impacts to small firms in terms of a cost to revenue ratio. 
While Option 3 includes limits for more facilities than Options 1 and 
2, it is similarly structured to avoid significant impacts to small 
firms. Option 3 would achieve the greatest amount of pollutant 
reductions of the three options. Option 3 would also simplify the 
existing rule by utilizing the same size thresholds for all 
subcategories. For example, total phosphorus limits would apply to 
direct discharging facilities in all subcategories producing greater 
than or equal to 10 million pounds per year under Option 3. Under 
Options 2 and 3, EPA also proposes to include ``conditional limits,'' 
which would allow an exemption from nutrient pretreatment standards for 
indirect dischargers that are discharging to POTWs that have nutrient 
removal capabilities that result in equivalent nutrient removal.
---------------------------------------------------------------------------

    \2\ The terms nitrogen and phosphorus refer to total nitrogen 
and total phosphorus throughout this document.
---------------------------------------------------------------------------

    The following discussion is organized by discharge type (direct or 
indirect) and by facility status (existing or new):
Direct Discharges From Existing Sources
    Options 1 and 2: BAT would include new phosphorus effluent 
limitations based on chemical removal and more stringent nitrogen 
effluent limitations based on biological treatment to achieve full 
denitrification. BCT and BPT for the conventional pollutants 
(biochemical oxygen demand (BOD), total suspended solids (TSS), oil & 
grease, pH) limits would remain unchanged from the current MPP ELG. 
These limits would apply to direct discharging facilities based on the 
same production thresholds as the existing rule: 50 million pounds per 
year of finished product produced for meat further processors 
(Subcategories F-I), 50 million pounds per year of live weight killed 
(LWK) for meat slaughtering (Subcategories A-D), 100 million pounds per 
year of LWK for poultry slaughtering (Subcategories K), 7 million 
pounds of finished product per year for poultry further processors 
(Subcategory L), and 10 million pounds per year of raw material 
processed for renderers (Subcategory J). The limits for facilities in 
Subcategory E would not be changed.
    Option 3: BAT would include the same BAT requirements as Option 1, 
with lower production thresholds for applicability. Specifically, BAT 
would include new phosphorus effluent limitations based on chemical 
removal for facilities in all subcategories that are producing greater 
than or equal to 10 million pounds per year. Additionally, BAT would 
include new and/or more stringent nitrogen limits based on biological 
treatment to achieve full denitrification for facilities in all 
subcategories producing greater than or equal to 20 million pounds per 
year. BAT for ammonia as N limits and BCT and BPT limits for 
conventional pollutants (BOD, TSS, oil & grease, fecal coliform, pH) 
limits would remain unchanged from the current MPP ELGs. The limits for 
facilities in Subcategory E would not be changed.
Indirect Discharges to POTWs From Existing Sources
    Option 1: PSES would include new conventional pollutant limits 
based on BPT and BCT limits for BOD, TSS, and oil & grease based on 
screening and dissolved air flotation (DAF) technology. Under this 
option, pretreatment standards would apply to facilities producing 
greater than: 50

[[Page 4477]]

million pounds per year of finished product for meat further processors 
(Subcategories F-I), 50 million pounds per year of LWK for meat 
slaughtering (Subcategories A-D), 100 million pounds per year of LWK 
for poultry slaughtering (Subcategory K), 7 million pounds per year of 
finished product for poultry further processors (Subcategory L), and 10 
million pounds per year of raw material processed by renderers 
(Subcategory J). No new PSES based on pretreatment standards for 
nitrogen and phosphorus would be established under Option 1.
    Option 2: Option 2 would include the same PSES requirements for 
conventional pollutants as Option 1. Additionally, PSES would include 
new pretreatment standards based on BAT for phosphorus based on 
chemical removal and new nitrogen pretreatment standards based on 
biological treatment to achieve full denitrification. The nitrogen and 
phosphorus PSES requirements would include facilities with production 
thresholds greater than or equal to: 200 million pounds per year of LWK 
for meat slaughtering (Subcategories A-D), 200 million pounds per year 
of LWK for poultry slaughtering (Subcategory K), and 350 million pounds 
per year processed by renderers (Subcategory J).
    Option 3: Option 3 would include the same PSES requirements as 
Option 2, with lower production thresholds for applicability. 
Specifically, PSES would include new conventional pollutant 
pretreatment standards based on BPT/BCT for BOD, TSS, and oil & grease 
based on screening and DAF techniques for all indirect MPP facilities 
producing greater than 5 million pounds per year. Additionally, PSES 
would include new phosphorus and nitrogen pretreatment standards based 
on BAT for all indirect MPP facilities producing greater than 30 
million pounds per year.
Direct Discharges From New Sources
    Under all options, NSPS based on BADCT would be equal to BAT, BPT, 
and BCT. Thus, Options 1, 2 and 3 would contain the same requirements 
for existing and new direct discharging facilities.
Indirect Discharges From New Sources
    Under all options, PSNS would be equal to PSES. Thus, Options 1, 2, 
and 3 would contain the same requirements for existing and new indirect 
discharging facilities.
    Additional details about the proposed ELGs are described in Section 
VII of this preamble.

II. Public Participation

    Submit your comments, identified by Docket ID No. EPA-HQ-OW-2021-
0736, at <a href="https://www.regulations.gov">https://www.regulations.gov</a> (our preferred method), or the 
other methods identified in the ADDRESSES section. Once submitted, 
comments cannot be edited or removed from the docket. EPA may publish 
any comment received to its public docket. Do not submit to EPA's 
docket at <a href="https://www.regulations.gov">https://www.regulations.gov</a> any information you consider to 
be Confidential Business Information (CBI), Proprietary Business 
Information (PBI), or other information whose disclosure is restricted 
by statute. Multimedia submissions (audio, video, etc.) must be 
accompanied by a written comment. The written comment is considered the 
official comment and should include discussion of all points you wish 
to make. EPA will generally not consider comments or comment contents 
located outside of the primary submission (i.e., on the web, cloud, or 
other file sharing system). Please visit <a href="https://www.epa.gov/dockets/commenting-epa-dockets">https://www.epa.gov/dockets/commenting-epa-dockets</a> for additional submission methods; the full EPA 
public comment policy; information about CBI, PBI, or multimedia 
submissions; and general guidance on making effective comments.

III. General Information

A. Does this action apply to me?

    Entities potentially regulated by any final rule following this 
action include:

                               Table III-1
------------------------------------------------------------------------
                                                         North American
                                                            Industry
           Category              Example of regulated    Classification
                                        entity           System (NAICS)
                                                              Code
------------------------------------------------------------------------
Industry......................  Facilities engaged in
                                 slaughtering,
                                 further processing,
                                 or rendering of meat
                                 and poultry
                                 products, which may
                                 include the
                                 following sectors:
                                Meat Packing Plants..              31161
                                Animal (except                    311611
                                 Poultry)
                                 Slaughtering.
                                Meat Processed from               311612
                                 Carcasses.
                                Sausages and Other                311612
                                 Prepared Meat
                                 Products.
                                Poultry Slaughtering              311615
                                 and Processing.
                                Meat & Meat Product               422470
                                 Wholesalers.
                                Poultry Processing...             311615
                                Rendering and Meat By-            311613
                                 Product Processing.
                                Support Activities                 11521
                                 for Animal
                                 Production.
                                Prepared Feed and                 311119
                                 Feed Ingredients for
                                 Animals and Fowls,
                                 Except Dogs and Cats.
                                Dog and Cat Food                  311111
                                 Manufacturing.
                                Other Animal Food                 311119
                                 Manufacturing.
                                All Other                         311999
                                 Miscellaneous Food
                                 Manufacturing.
                                Animal and Marine                 311613
                                 Fats and Oils.
                                Livestock Services,               311611
                                 Except Veterinary.
------------------------------------------------------------------------

    This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be regulated by this 
action. This table includes the types of entities that the EPA is now 
aware could potentially be regulated by this action. Other types of 
entities not included could also be regulated. To determine whether 
your entity is regulated by this action, you should carefully examine 
the applicability criteria found in 40 CFR 432.1, 432.10, 432.20, 
432.30, 432.40, 432.50, 432.60, 432.70, 432.80, 432.90, 432.100, 
432.110, and 432.120 and the definitions in 40 CFR 432.2. If you have 
questions regarding the applicability of this action to a particular 
entity, consult

[[Page 4478]]

the person listed in the FOR FURTHER INFORMATION CONTACT section.

B. What action is the Agency taking?

    The Agency is proposing to revise the existing MPP ELGs and is 
soliciting comment on possible revisions and additions to the ELGs for 
existing and new sources in the MPP point source category.

C. What is the Agency's authority for taking this action?

    EPA is proposing to promulgate this rule under the authority of 
sections 301, 304, 306, 307, 308, 402, and 501 of the Clean Water Act 
(CWA), 33 U.S.C. 1311, 1314, 1316, 1317, 1318, 1342, and 1361.

D. What are the incremental costs and benefits of this action?

    This proposed action is estimated to cost $232 million per year in 
social costs and result in $90 million per year in monetized benefits 
using a 3 percent discount rate and $227 million per year in social 
costs and result in $85 million per year in monetized benefits using a 
7 percent discount rate. The current benefit numbers reflect the 
national effects of increased air pollution and greenhouse gas 
emissions under the rule. EPA also expects that there will be 
additional non-monetized benefits that result from the proposed action. 
See the Benefits Cost Analysis for additional information on 
monetization and quantification of health, ecological, market, and 
economic productivity benefits.

IV. Background

A. Clean Water Act

    Congress passed the Federal Water Pollution Control Act Amendments 
of 1972, also known as the Clean Water Act (``CWA'' or ``the Act''), to 
``restore and maintain the chemical, physical, and biological integrity 
of the Nation's waters'' (33 U.S.C. 1251(a)). The CWA establishes a 
comprehensive program for protecting our nation's waters. Among its 
core provisions, the CWA prohibits the discharge of pollutants from a 
point source to waters of the United States (WOTUS), except as 
authorized under the CWA. Under section 402 of the CWA, discharges may 
be authorized through a National Pollutant Discharge Elimination System 
(NPDES) permit. The CWA establishes a two-pronged approach for these 
permits: technology-based controls that establish the floor of 
performance for all dischargers, and water quality-based limits where 
the technology-based limits are insufficient for the discharge to meet 
applicable water quality standards. To serve as the basis for the 
technology-based controls, the CWA authorizes EPA to establish 
nationally applicable, technology-based effluent limitations guidelines 
and new source performance standards for discharges from different 
categories of point sources, such as industrial, commercial, and public 
sources.
    Direct dischargers must comply with effluent limitations in NPDES 
permits. Technology-based effluent limitations in NPDES permits are 
derived from effluent limitations guidelines (CWA sections 301(b) and 
304, 33 U.S.C. 1311(b) and 1314) and new source performance standards 
(CWA section 306, 33 U.S.C. 1316) promulgated by EPA, or based on best 
professional judgment (BPJ) where EPA has not promulgated an applicable 
effluent limitations guideline or new source performance standard (CWA 
section 402(a)(1)(B), 33 U.S.C. 1342(a)(1)(B); 40 CFR 125.3(c)). The 
effluent limitations guidelines and new source performance standards 
established by regulation for categories of industrial dischargers are 
based on the degree of control that can be achieved using various 
levels of pollution control technology, as specified in the Act.
    The CWA also authorizes EPA to promulgate nationally applicable 
pretreatment standards that restrict pollutant discharges from 
categories of indirect dischargers (i.e., facilities that introduce 
wastewater to POTWs), as outlined in CWA sections 307(b) and (c), and 
304(g) (33 U.S.C. 1317(b) and (c), and 1314(g)). EPA establishes 
national categorical pretreatment standards for those pollutants in 
wastewater from indirect dischargers that may pass through, interfere 
with, or are otherwise incompatible with POTW operations (CWA section 
307(b), 33 U.S.C. 1317(b)). Generally, in determining whether 
pollutants pass through a POTW when considering the establishment of 
categorical pretreatment standards, EPA compares the percentage of 
pollutant removed by typical POTWs achieving secondary treatment with 
the percentage of the pollutant removed by facilities meeting the 
candidate technology basis (e.g., BPT or BAT) (46 FR 9408, 9416 (Jan. 
28, 1981)). A pollutant is deemed to pass through a POTW when the 
average percentage removed by well-operated POTWs performing secondary 
treatment is less than the average percentage removed by direct 
dischargers operating the BPT/BAT technology basis. Pretreatment 
standards are designed to ensure that wastewaters from direct and 
indirect industrial dischargers are subject to similar levels of 
treatment (CWA section 301(b) and 33 U.S.C. 1311(b). The legislative 
history of the 1977 CWA amendments explains that pretreatment standards 
are technology-based and analogous to technology-based effluent 
limitations for direct dischargers. As further explained in the 
legislative history, the combination of pretreatment and treatment by 
the POTW is intended to achieve the level of treatment that would be 
required if the industrial source were making a direct discharge (Conf. 
Rep. No. 95-830, at 87 (1977), reprinted in U.S. Congress, Senate 
Committee on Public Works (1978), A Legislative History of the CWA of 
1977, Serial No. 95-14 at 271 (1978)). For categorical pretreatment 
standards, EPA's approach for passthrough satisfies two competing 
objectives set by Congress: (1) That standards for indirect dischargers 
be equivalent to standards for direct dischargers; and (2) that the 
treatment capability and performance of the POTWs be recognized and 
taken into account in regulating the discharge of pollutants from 
indirect dischargers (CWA sections 301(b)(1)(A) and 301(b)(1)(E) (33 
U.S.C. 1311(b)(1)(A) and 1311(b)(1)(E)). In addition, POTWs are 
required to implement local treatment limits applicable to their 
industrial indirect dischargers to satisfy any local requirements (40 
CFR 403.5).
    EPA promulgates national ELGs for major industrial categories for 
three classes of pollutants: (1) Conventional pollutants (i.e., BOD, 
TSS, oil & grease, fecal coliform, and pH), as outlined in CWA section 
304(a)(4) (33 U.S.C. 1314(a)(4) and 40 CFR 401.16); (2) toxic 
pollutants (e.g., toxic metals such as arsenic, mercury, selenium, and 
chromium; toxic organic pollutants such as benzene, benzo-a-pyrene, 
phenol, and naphthalene), as outlined in CWA section 307(a) (33 U.S.C. 
1317(a), 40 CFR 401.15, and 40 CFR 423 appendix A); and (3) 
nonconventional pollutants, which are those pollutants that are not 
categorized as conventional or toxic (e.g., ammonia-N, nitrogen, 
phosphorus, and total dissolved solids (TDS)).

B. Effluent Limitations Guidelines and Standards (ELGs)

    EPA develops ELGs that are technology-based regulations for a 
category of dischargers. EPA bases these regulations on performance of 
control and treatment technologies in light of the factors specified in 
CWA section 304(b) and 306 (33 U.S.C. 1314(b), 1316), but after the 
limitations and standards are established, dischargers may use any 
technology that meets the limitations and standards. The legislative 
history of CWA section 304(b) (33 U.S.C. 1314(b)), which is the heart 
of the effluent guidelines program,

[[Page 4479]]

describes the need to press toward higher levels of control through 
research and development of new processes, modifications, replacement 
of obsolete plants and processes, and other improvements in technology, 
taking into account the cost of controls. Congress has also stated that 
EPA does not consider water quality impacts on individual water bodies 
as the guidelines are developed (Statement of Senator Muskie, October 
4, 1972, reprinted in A Legislative History of the Water Pollution 
Control Act Amendments of 1972, at 170. (U.S. Senate, Committee on 
Public Works, Serial No. 93-1, January 1973); Southwestern Elec. Power 
Co. v. EPA, 920 F.3d at 1005, ``The Administrator must require 
industry, regardless of a discharge's effect on water quality, to 
employ defined levels of technology to meet effluent limitations.'' 
(citations and internal quotations omitted). CWA sections 304(b), 
304(g), and 306(b) (33 U.S.C. 1314(b), 1314(g) and 1316(b)) authorize 
revision of ELGs where appropriate.
    The CWA specifies four types of technology-based ELGs applicable to 
direct dischargers and two types of pretreatment standards applicable 
to indirect dischargers, referred to collectively as ``effluent 
limitations guidelines and standards (ELGs)''. These ELGs are 
summarized below.
1. Best Practicable Control Technology Currently Available (BPT)
    For existing direct dischargers, the Act specifies two 
increasingly-stringent levels of control. The first level of control, 
BPT, applies to all pollutants (conventional, toxic, and 
nonconventional pollutants). Traditionally, as is consistent with the 
statute, its legislative history and caselaw, EPA defines ``currently 
available'' based on the average of the best performance of facilities 
within the industry, grouped to reflect various ages, sizes, processes, 
or other common characteristics (Chem. Mfrs. Assn. v. EPA, 870 F.2d 
177, 207-208 (1989)). The statute specifies a number of factors for 
consideration in establishing or revising BPT: the cost of achieving 
effluent reductions in relation to the effluent reduction benefits, the 
age of equipment and facilities, the processes employed, the 
engineering aspects of the control technologies, process changes, non-
water quality environmental impacts (including energy requirements), 
and such other factors as the Administrator deems appropriate (CWA 
section 304(b)(1)(B), 33 U.S.C. 1314(b)(1)(B)). If, however, existing 
performance is uniformly inadequate, EPA may establish limitations 
based on higher levels of control than what is currently in place in an 
industrial category, based on an Agency determination that the 
technology is available in another category or subcategory and can be 
practicably applied.
2. Best Conventional Pollutant Control Technology (BCT)
    BCT represents the second level of stringency for controlling 
discharge of conventional pollutants. In addition to other factors 
specified in CWA section 304(b)(4)(B) (33 U.S.C. 1314(b)(4)(B)), the 
CWA requires that EPA establish BCT limitations after consideration of 
a two-part ``cost-reasonableness'' test. EPA explained its methodology 
for the development of BCT limitations in July 1986 (51 FR 24974 (July 
9, 1986)). The Act designates the following as conventional pollutants: 
BOD, TSS, fecal coliform, pH, and any additional pollutants defined by 
the Administrator as conventional (CWA section 304(a)(4); 33 U.S.C. 
1314(a)(4)). The Administrator designated oil & grease as an additional 
conventional pollutant (44 FR 44501 (July 30, 1979) and 40 CFR 401.16).
3. Best Available Technology Economically Achievable (BAT)
    BAT represents the second level of stringency for controlling 
discharge of toxic and nonconventional pollutants (including 
nutrients). Courts have referred to this as the CWA's ``gold standard'' 
for controlling discharges from existing sources (Southwestern Elec. 
Power Co. v. EPA, 920 F.3d at 1003). In general, BAT represents the 
best available, economically achievable performance of facilities in 
the industrial subcategory or category, considering the factors 
specified in CWA section 304(b) (33 U.S.C. 1314(b)). As the statutory 
phrase intends, EPA considers the technological availability and 
economic achievability in determining what level of control represents 
BAT (CWA section 301(b)(2)(A), 33 U.S.C. 1311(b)(2)(A)). The statute 
specifies a number of factors for consideration in establishing or 
revising BAT: the cost of achieving BAT effluent reductions, the age of 
equipment and facilities involved, the process employed, potential 
process changes, and non-water quality environmental impacts, including 
energy requirements, and such other factors as the Administrator deems 
appropriate (CWA Section 304(b)(2)(B), 33 U.S.C. 1314(b)(2)(B)). The 
Agency retains considerable discretion in assigning the weight to be 
accorded these factors (Weyerhaeuser Co. v. Costle, 590 F.2d 1011, 1045 
(D.C. Cir. 1978)). EPA usually determines economic achievability based 
on the effect of the cost of compliance with BAT limitations on overall 
industry and subcategory financial conditions (Chem. Mfrs. Assn. v. 
EPA, 870 F.2d 177, 251-52 (5th Cir. 1988)).
    BAT reflects the highest performance in the industry and may 
reflect a higher level of performance than is currently being achieved 
based on technology transferred from a different subcategory or 
category, bench scale or pilot plant studies, or foreign plants 
(Southwestern Elec. Power Co. v. EPA, 920 F.3d at 1006; American Paper 
Inst. v. Train, 543 F.2d 328, 353 (D.C. Cir. 1976); American Frozen 
Food Inst. v. Train, 539 F.2d 107, 132 (D.C. Cir. 1976)). BAT may be 
based upon process changes or internal controls, even when these 
technologies are not common industry practice (American Frozen Foods, 
539 F.2d at 132, 140; Reynolds Metals Co. v. EPA, 760 F.2d 549, 562 
(4th Cir. 1985); California & Hawaiian Sugar Co. v. EPA, 553 F.2d 280, 
285-88 (2nd Cir. 1977)).
4. New Source Performance Standards (NSPS)
    NSPS reflect effluent reductions that are achievable based on 
BADCT. Owners of new sources have the opportunity to install the best 
and most efficient production processes and wastewater treatment 
technologies. As a result, NSPS should represent the most stringent 
controls attainable through the application of the BADCT for all 
pollutants (that is, conventional, nonconventional, and toxic 
pollutants). In establishing NSPS, EPA is directed to take into 
consideration the cost of achieving the effluent reduction and any non-
water quality environmental impacts and energy requirements (CWA 
section 306(b)(1)(B), 33 U.S.C. 1316(b)(1)(B)).
5. Pretreatment Standards for Existing Sources (PSES)
    CWA section 307(b) (33 U.S.C. 1317(b)), of the Act calls for EPA to 
issue pretreatment standards for discharges of pollutants to POTWs. 
PSES are designed to prevent the discharge of pollutants that pass 
through, interfere with, or are otherwise incompatible with the 
operation of POTWs. Categorical pretreatment standards are technology-
based and are analogous to BPT and BAT effluent limitations guidelines, 
and thus, the Agency typically considers the same factors in 
promulgating PSES as it considers in promulgating BPT/BAT. The General 
Pretreatment Regulations,

[[Page 4480]]

which set forth the framework for the implementation of categorical 
pretreatment standards, are found at 40 CFR part 403. These regulations 
establish general pretreatment standards that apply to all non-domestic 
dischargers (52 FR 1586 (January 14, 1987)).
6. Pretreatment Standards for New Sources (PSNS)
    CWA section 307(c) (33 U.S.C. 1317(c)) calls for EPA to promulgate 
PSNS. Such pretreatment standards must prevent the discharge of any 
pollutant into a POTW that may interfere with, pass through, or may 
otherwise be incompatible with the POTW. EPA promulgates PSNS based on 
BADCT for new sources. New indirect dischargers have the opportunity to 
incorporate into their facilities the best available demonstrated 
technologies. The Agency typically considers the same factors in 
promulgating PSNS as it considers in promulgating NSPS.

C. Actions Leading to Proposed Revisions to the MPP ELGs

1. National Review of Nutrient Discharges From Industrial Sources 
(USEPA. 2019. EPA-821-R-19-005)
    EPA conducted a cross-industry review of publicly available 
discharge monitoring report (DMR) and toxics release inventory (TRI) 
data from 2015 on nutrient discharges from industrial point source 
categories. This review identified industries, based on their 
discharges of nutrients in wastewater and the potential to reduce their 
nutrient discharges, that may be candidates for ELG development or 
revision and prioritized them for further review. EPA then ranked 
industrial categories by the nutrient loads in their wastewater 
discharges, specifically looking at the median facility load and number 
of facilities reporting discharges. The MPP industry ranked as one of 
the highest in the analysis for total nitrogen and total phosphorus, 
leading EPA to focus on this industry (USEPA. 2019. EPA-HQ-OW-2019-
0618).
    To better understand the MPP industry and related nutrient sources, 
discharges, and treatment, EPA reviewed historical documentation 
supporting the development of the existing MPP ELGs, analyzed 2015 DMR 
and TRI data, and contacted several MPP facilities. Many MPP facilities 
discharging high amounts of nutrients are located in EPA Regions 4 and 
5, which provided information on the development of nutrient permit 
limits and current practices for managing wastewater containing 
nutrients at MPP facilities. Many of these facilities had permits with 
water-quality-based ammonia limits more stringent than the existing 
2004 MPP ELGs. More than half of the permits reviewed also included 
water quality-based limits or monitoring requirements for total 
Kjeldahl nitrogen (TKN), nitrate/nitrite, and/or total phosphorus, 
which are not regulated under the 2004 MPP ELG.
    EPA found that some MPP facilities are performing better than the 
existing 2004 ELG for nutrient discharges (nitrogen and ammonia), as 
well as removing phosphorus, which is not regulated under the existing 
ELG. For nitrogen, the median annual average of 97 direct discharging 
MPP facilities was 32.8 mg/L, which is well below the 2004 ELG monthly 
averages of 103 mg/L for poultry and 132 mg/L for meat processors. For 
ammonia, the median annual average for 119 facilities was approximately 
0.5 mg/L, which is far lower than the 4 mg/L required under the ELG 
regulations. For phosphorus, which is not regulated under the existing 
ELGs, the median annual average of 140 MPP facilities was less than 2 
mg/L indicating that some MPP facilities are meeting water-quality 
based low phosphorus limits of their NPDES permits using current 
treatment technologies. These initial results indicated that revised 
ELGs may be appropriate as the industry is capable of achieving 
effluent limitations well below the current 2004 regulations.
2. Detailed Study of Meat and Poultry Products (USEPA. 2021. EPA-821-R-
21-003)
    As a result of the cross-industry review of nutrients in industrial 
wastewater and the further review of the MPP category, EPA began a 
detailed study of the MPP industry. The goals of the MPP detailed study 
were to gain a better understanding of the industry and evaluate 
whether the ELGs should be revised.
    EPA began by collecting publicly available information about the 
MPP industry. To obtain a list of facilities that may be part of the 
MPP industry, EPA evaluated industry directories from the U.S. 
Department of Agriculture (USDA) Food Safety Inspection Service (FSIS), 
the U.S. Food and Drug Administration (FDA), and the National Renderers 
Association (NRA). To further develop this list, EPA evaluated 
information from POTW Annual Reports, EPA's Integrated Compliance 
Information System National Pollutant Discharge Elimination System 
(ICIS-NPDES) database, and EPA's TRI database. EPA also engaged with 
EPA regions, federal agencies, States, clean water organizations, 
industry stakeholders, environmental groups, and communities in close 
proximity to MPP facilities to understand different perspectives on the 
industry and effects of the industry on communities and to gain 
insights into the industry.
    EPA used the publicly available information to analyze the 
industry. EPA found that the MPP industry discharges the highest 
phosphorus levels and second highest nitrogen levels of all industrial 
categories. EPA found the nutrient discharges are from numerous 
facilities across the country and that the nutrient pollutants are at 
concentrations that can be reduced with current wastewater treatment 
technology. Further, some of the studied facilities were already 
removing nutrients and achieving effluent concentrations well below the 
limitations in the existing MPP ELGs.
    During the detailed study, EPA compiled a list of over 7,000 
facilities from the sources listed above that potentially processed 
meat and poultry products and might be part of the MPP industry. Of 
these, EPA estimated that approximately 300 are likely direct 
dischargers. During the rulemaking process, EPA refined the list to 
5,055 MPP facilities, of which 171 are direct dischargers. As the 
existing ELGs only apply to a subset of the direct dischargers, the 
2004 MPP ELGs cover approximately 150 facilities. As mentioned, the 
wastewater from the direct dischargers has high amounts of nutrients. 
Around 120 of the estimated 150 direct dischargers discharge to waters 
listed as impaired, with much of the MPP total nitrogen and total 
phosphorus load discharging to waters impaired for algal growth, 
ammonia, nutrients, and/or oxygen depletion.
    As the majority of MPP facilities are indirect dischargers, which 
are not currently subject to national categorical pretreatment 
standards, EPA also studied POTWs that receive MPP wastewater. In 
reviewing permits for POTWs that receive MPP wastewater, EPA found the 
majority do not have limits for nitrogen or phosphorus. Thus, many 
POTWs may not be removing much of the nutrient load discharged by MPP 
industrial users because many POTWs do not have tertiary treatment 
designed to remove nutrients. Additionally, many of the POTWs (73%) had 
permit violations for pollutants found in MPP wastewater (analysis 
included BOD, TSS, chlorides, nitrogen, phosphorus, E. coli, total 
residual chlorine (TRC), coliforms, metals, ammonia, and oil & grease). 
The

[[Page 4481]]

collected data thus indicates MPP facilities may be causing or 
contributing to violations of POTW permit limits (EUSEPA. 2021. PA-HQ-
OW-2021-0547-0110).
    National ELGs can help ensure that all people in the vicinity of 
industrial direct and indirect discharges receive the same degree of 
protection from environmental and health hazards, and equal access to 
the decision-making process to have a healthy environment in which to 
live, learn, and work. To assess information related to environmental 
justice, EPA conducted screening analyses of areas with MPP facilities 
and found 82% of MPP facilities that directly discharge wastewater to 
waters of the U.S. are within one mile of census block groups with 
demographic or environmental characteristics of concern. This indicates 
that such facilities may be disproportionately impacting communities of 
concern and therefore revised wastewater regulations may benefit these 
communities.\3\
---------------------------------------------------------------------------

    \3\ Characteristics of concern in this analysis are defined as 
demographic or environmental indexes above the 80th percentile in a 
state based on data available in the 2020 release of EJSCREEN. 
Census block groups with one or more indexes above this threshold 
were considered communities of concern.
---------------------------------------------------------------------------

3. Announcement of Rule in Preliminary Effluent Guidelines Plan 15
    In 2021, in the Preliminary Effluent Guidelines Program Plan 15 
(Preliminary Plan 15), EPA announced a rulemaking to revise the 
existing discharge standards for the MPP industry (USEPA. 2021. EPA-
821-R-21-003).
4. Litigation and Consent Decree
    On December 23, 2022, Plaintiffs Cape Fear River Watch, Rural 
Empowerment Association for Community Help, Waterkeepers Chesapeake, 
Waterkeeper Alliance, Humane Society of the United States, Food & Water 
Watch, Environment America, Comite Civico del Valle, Center for 
Biological Diversity, and Animal Legal Defense Fund filed a complaint 
alleging that EPA's failure to revise ELGs and to promulgate 
pretreatment standards for the MPP category constituted failures to act 
by statutory deadlines in violation of the CWA and Administrative 
Procedures Act (``APA'') (Cape Fear River Watch et al. v. United States 
Environmental Protection Agency, No. 1:22-cv-03809 (D. D.C)).
    Although EPA was in the process of conducting the MPP rulemaking, 
EPA had not publicly announced any specific timeline for completion. 
The parties initiated settlement discussions, resulting in a proposed 
consent decree with deadlines for completion of the rulemaking, which 
EPA entered into after public notice and comment (88 FR 12930 (Mar. 1, 
2023)). Under the consent decree, EPA has obligations to sign a notice 
of proposed rulemaking by December 13, 2023 and to sign a decision 
taking final action on the proposal by August 31, 2025 (Consent Decree, 
Cape Fear River Watch et al. v. EPA, Case No. 1:22-cv-03809-BAH (05/03/
23)).

V. Meat and Poultry Products Industry Description

A. General Description of Industry

    The MPP point source category includes facilities ``engaged in the 
slaughtering, dressing and packing of meat and poultry products for 
human consumption and/or animal food and feeds. Meat and poultry 
products for human consumption include meat and poultry from cattle, 
hogs, sheep, chickens, turkeys, ducks and other fowl as well as 
sausages, luncheon meats and cured, smoked or canned or other prepared 
meat and poultry products from purchased carcasses and other materials. 
Meat and poultry products for animal food and feeds include animal 
oils, meat meal and facilities that render grease and tallow from 
animal fat, bones and meat scraps'' (40 CFR 432.1).
    Based on industry responses to the 2022 MPP Questionnaire, EPA 
estimates there are 5,055 MPP facilities currently in operation. Table 
V-1 shows the estimated number of MPP facilities based on facility 
process based on the 2022 MPP Questionnaire and other publicly 
available data sources. ``Meat First'' refers to facilities that 
slaughter animals excluding poultry. ``Meat Further'' refers to 
facilities that further process animal products excluding poultry. 
``Poultry First'' refers to facilities that slaughter poultry. 
``Poultry Further'' refers to facilities that further process poultry. 
Facilities that process meat and poultry were classified by the type 
which they process the most. ``Render'' refers to facilities that only 
process meat and poultry offcuts, trimmings, bones, dead animals, scrap 
materials, and other related usable by-products. For more information 
on how facilities were classified, see the Meat and Poultry Products 
(MPP) Profile Methodology Memorandum (USEPA. 2023. DCN MP00306).

                  Table V-1--Number of Facilities in MPP Industry by Process and Discharge Type
----------------------------------------------------------------------------------------------------------------
                                                                       Number of facilities
                                                 ---------------------------------------------------------------
                     Process                          Direct         Indirect          Zero
                                                    dischargers     dischargers     dischargers        Total
----------------------------------------------------------------------------------------------------------------
Meat First......................................              47             509             270             826
Meat Further....................................              29           2,741             690           3,460
Poultry First...................................              70             168              52             290
Poultry Further.................................               6             169             119             294
Render..........................................              19             121              45             185
                                                 ---------------------------------------------------------------
    Total.......................................             171           3,708           1,176           5,055
----------------------------------------------------------------------------------------------------------------
Source: DCNMP00306.

    As shown in Table V-1, there are a large number of MPP facilities 
in each sector. These facilities are located across the country. 
Although first processors/slaughterhouses tend to be larger, there is a 
large range in production volumes across the industry. Based on the 
questionnaire, 171 facilities have NPDES permits and discharge 
wastewater directly to waters of the U.S. An additional 3,708 
facilities discharge wastewater to POTWs, and 1,176 facilities do not 
discharge process wastewater. MPP effluent discharges contain 
pollutants including nitrogen, phosphorus, ammonia, oil & grease, BOD, 
and chlorides.

B. Control and Treatment Technologies

    EPA evaluated technologies available to control and treat 
wastewater

[[Page 4482]]

generated by the MPP industry. EPA has not identified any practical 
difference in types of treatment technologies between meat products and 
poultry products facilities. Some MPP processes result in wastewater 
streams with higher concentrations of pollutants, but facilities across 
the industry generally contain the same pollutants, including nitrogen, 
phosphorus, oil & grease, BOD, TSS, and chlorides.
    The pollutants in MPP wastewaters are similar to those in domestic 
wastewater. POTWs often have similar wastewater treatment technologies 
as direct discharging MPP facilities. However, some indirect MPP 
wastewater discharges have pollutant loads that the receiving POTW 
cannot handle. These indirect discharges may cause passthrough or 
interference as those terms are defined in EPA's general pretreatment 
regulations at 40 CFR 403.3(k) and (p). Also, many POTWs are not 
equipped to effectively treat all pollutants found in MPP wastewater 
such as nitrogen, phosphorus, and chlorides. Thus, indirect discharging 
MPP facilities may need to treat their wastewater before sending it to 
their POTW in order to meet any local limits established by the control 
authority under EPA's general pretreatment regulations (40 CFR part 
403).
    EPA evaluated available technologies that can be used to treat or 
remove MPP pollutants, individually and in treatment trains. This 
section is split into subsections based on type of pollutant removal, 
including conventional pollutants, phosphorus, nitrogen, pathogens, and 
chlorides. As the evaluated technologies result in sludge production, 
technologies for solids handling are also included. Discussions on 
treatment trains are included within applicable sections.
1. Conventional Pollutant Removal
    MPP process wastewater contains oil & grease, TSS, and BOD, which 
are all conventional pollutants. These pollutants can be removed with 
primary treatment, which removes floating and settleable solids. 
Typical treatment technologies include screens and DAF.
    a. Screening: Screens are generally the first treatment unit in a 
wastewater treatment train. Screens are inexpensive and remove large 
solid particles from the wastewater that may otherwise damage or 
interfere with downstream equipment and treatment processes. At some 
facilities, the materials removed by the screens may be used as raw 
material at rendering facilities.
    b. Dissolved air flotation (DAF): DAF is used extensively in the 
primary treatment of MPP wastewaters to remove suspended solids and oil 
& grease. In a DAF unit, air is dissolved into the wastewater, forming 
small bubbles. As the air bubbles float to the surface, solids attach 
to the air bubbles, and rise to the top of the unit forming a layer of 
floating pollutants. A skimmer is used to continuously remove this 
layer of floating solids, while a bottom sludge collector removes any 
solids that settle to the bottom. In some facilities, such as 
renderers, the removed solids can be recycled to the facility as raw 
materials.
    c. Chemical Addition: Polymers, flocculants, and phosphorus 
precipitating chemicals may be added to, or prior to, the DAF. The 
chemical addition increases the removal of pollutants from the 
wastewater. Adding chemicals to remove phosphorus can help facilities 
meet phosphorus effluent limits. For facilities that recycle materials 
from the DAF to the facility, chemicals addition may not be possible as 
this would contaminate the raw material.
2. Biological/Organic Pollutant Removal
    BOD, nitrogen, and phosphorus are removed through biological, 
physical, and chemical processes. Biological processes can be used to 
achieve low levels of BOD and nitrogen and are commonly used at MPP 
facilities. Microorganisms used in biological wastewater treatment 
require phosphorus for cell synthesis and energy transport and 
typically remove 10 to 30 percent of influent phosphorus. Through 
biological treatment, organic compounds are broken down with bacteria 
into products including water, CO<INF>2</INF>, N<INF>2</INF>, and 
CH<INF>4</INF>.
    a. Anaerobic biological treatment: In anaerobic wastewater 
treatment, facultative and anaerobic microorganisms reduce organic 
matter and BOD into gaseous methane and carbon dioxide. The gases may 
be released into the atmosphere, captured and flared, or used as 
biogas. Anaerobic treatment systems have negligible energy requirements 
and can treat high-strength wastewaters. Anaerobic lagoons are a 
typical anaerobic system used at MPP facilities. Due to the detention 
time, these lagoons also equalize wastewater flow. The lagoons are not 
mixed to maintain anaerobic conditions. Anaerobic lagoons can reduce 
BOD by 95 percent and suspended solids by 95 percent (Johns. 1995; \4\ 
USEPA. 1974; \5\ USEPA. 1975).\6\
---------------------------------------------------------------------------

    \4\ Johns, M.R. 1995. Developments in wastewater treatment in 
the meat processing industry: A review. Bioresource Technology 54. 
EPA-HQ-OW-2002-0014-2410. DCN 300232.
    \5\ USEPA (U.S. Environmental Protection Agency). 1974, 
February. Development Document for Effluent Limitation Guidelines 
and New Source Performance Standards for the Red Meat Processing 
Segment of the Meat Product and Rendering Processing Point Source 
Category. Washington, DC. DCN MP00348.
    \6\ USEPA (U.S. Environmental Protection Agency). 1975, April. 
Development Document for Effluent Limitation Guidelines and New 
Source Performance Standards for the Poultry Segment of the Meat 
Product and Rendering Processing Point Source Category. Washington, 
DC. DCN MP00349.
---------------------------------------------------------------------------

    b. Aerobic biological treatment: In aerobic wastewater treatment, 
microorganisms require oxygen to degrade organic material into water, 
carbon dioxide, and organic compounds. Aerobic degradation is faster 
than anaerobic degradation. Soluble BOD reductions up to 95 percent are 
possible. Aerated lagoons have fixed, floating, or diffused air systems 
to aerate the water. Aerobic lagoons (naturally aerated systems) use 
algae to aerate the system through photosynthesis.
    c. Anoxic biological treatment: Anoxic wastewater treatment systems 
are oxygen deficient, and bacteria break down nitrogenous compounds 
into oxygen and nitrogen gas.
    d. Activated sludge: This system includes an aeration tank followed 
by a settling tank. Settled solids from the second tank are recycled 
back into the aeration tank. Under optimal conditions, this process can 
achieve 95 percent reductions in BOD, suspended solids, and reductions 
in ammonia nitrogen (Johns. 1995; USEPA. 1974; USEPA. 1975).
    e. Sequencing batch reactor (SBR): An SBR completes the activated 
sludge process in a single reactor. The system first fills with 
wastewater, then the reaction in which bacteria break down organic 
compounds in the presence of oxygen occurs for some time, then the 
system is given time to settle and separate the microorganisms from the 
treated effluent, and then the tank is discharged. SBR systems provide 
high removal rates of BOD and suspended solids, can be designed for 
nitrification, and can remove nitrogen and phosphorus. SBRs are ideal 
for low flow processes as they do not need to run continuously, and the 
systems allow for operational and loading flexibility (Glenn et al. 
1990).\7\
---------------------------------------------------------------------------

    \7\ Glenn, S.L., R.T., Norris, Jr., and J.T. Sommerfield. 1990. 
Discrete-event simulation in wastewater treatment. Journal of 
Environmental Science and Health, 25 (4).
---------------------------------------------------------------------------

    f. Multistage biological treatment for nitrogen removal: Nitrogen 
removal is a

[[Page 4483]]

two-step process: nitrification and denitrification.
    i. Nitrification is a two-step aerobic process. First, ammonia is 
oxidized into nitrite by Nitrosomonas bacteria. Then, nitrite is 
oxidized into nitrate by Nitrobacter bacteria (Metcalf & Eddy, Inc. 
1991).\8\
---------------------------------------------------------------------------

    \8\ Metcalf & Eddy, Inc. 1991. Wastewater Engineering: 
Treatment, Disposal, and Reuse. 3rd Edition, McGraw-Hill, Inc. DCN 
MP00334.
---------------------------------------------------------------------------

    ii. Denitrification: Nitrite and nitrate are reduced by 
heterotrophic bacteria into nitrogen gas in anaerobic conditions. A 
carbon source, such as methanol, may need to be added to keep the 
microbes healthy.
    Biological treatment systems are often used in series to achieve 
high rates of nitrogen removal. Wastewater flows from one system to the 
next, with recycle streams and returned activated sludge returning to 
various locations of the system. Some examples include:
    i. Modified Ludzack-Ettinger (MLE): The MLE is a two-stage system 
in which an anoxic stage is followed by an aerobic stage, before 
wastewater goes to a clarifier. Mixed liquor with high levels of 
nitrate is recycled from the aerobic stage back to the influent. 
Activated sludge from the clarifier is also recycled back to the 
influent. The MLE process removes most of the BOD and can achieve a 
nitrogen removal of 80 percent.
    ii. Bardenpho: This is a four-stage process: anoxic, aerobic, 
anoxic, aerobic, followed by a secondary clarifier. Mixed liquor with 
high levels of nitrate is recycled from the first aerobic stage back to 
the first anoxic stage. Activated sludge from the clarifier is recycled 
back to the influent. Nitrification occurs primarily in the second 
stage (aerobic). Denitrification occurs in the first and third stages 
(anoxic). The final aeration stage removes nitrogen gas from the system 
and increases the concentration of dissolved oxygen. The four-stage 
Bardenpho process achieves higher rates of nitrogen removal compared to 
the two-stage MLE process.
    iii. Modified Bardenpho: This is a five-stage process: anaerobic, 
anoxic, aerobic, anoxic, aerobic, followed by a secondary clarifier. As 
in the Bardenpho process, mixed liquor with high levels of nitrate is 
recycled from the first aerobic stage back to the first anoxic stage 
and activated sludge from the clarifier is recycled back to the 
influent. The anaerobic stage at the beginning of the system results in 
biological phosphorus removal. Phosphate-accumulating organisms (PAOs) 
are recycled from the aerobic stage in the mixed liquor to the 
anaerobic stage. In the following aerobic stages, PAOs uptake large 
amounts of phosphorus (USEPA. 2021. EPA 830-R-01-001).
    iv. Other: There are many other processes that use multiple stages 
of treatment to remove nitrogen. These include A2/O, step feed, 
University of Capetown (UCT) processes, oxidation ditches, and the 
Schreiber process, amongst others (USEPA. 2004. EPA-821-R-04-011).
    g. Membrane bioreactor (MBR): MBRs use membranes to separate 
liquids and solids. The liquid stream then passes through anoxic and 
aerobic zones, in similar processes to the biological treatment systems 
described above. As the membranes greatly reduce the suspended solids 
in the liquid stream, MBR removes nitrogen and phosphorus (USEPA. 2009. 
EPA/600/R[hyphen]09/012).
    h. Enhanced Biological Phosphorus Removal: Microorganisms used in 
biological wastewater treatment require phosphorus for cell synthesis 
and energy transport. In the treatment of typical domestic wastewater, 
between 10 and 30 percent of influent phosphorus is removed by 
microbial assimilation, followed by clarification or filtration. 
However, phosphorus assimilation in excess of requirements for cell 
maintenance and growth, known as luxury uptake, can be induced by a 
sequence of anaerobic and aerobic conditions (Metcalf & Eddy, Inc. 
1991). As explained above, the modified Bardenpho process removes 
phosphorus biologically.
3. Phosphorus Removal
    As mentioned in the biological/organic pollutant removal section, 
some phosphorus is removed in biological treatment processes. To 
achieve low levels of phosphorus, chemical addition and/or tertiary 
filters can be used.
    a. Chemical addition: Phosphorus can be removed from wastewater by 
precipitation using metal salts [ferric chloride, aluminum sulfate 
(alum)] or lime. Polymers may also be added to increase the removal 
efficiency. The chemicals may be added prior to or in the DAF, in 
primary clarifier effluent, in biological treatment processes prior to 
secondary clarification, or after secondary clarification. The 
precipitated phosphorus is removed with other biosolids (Metcalf & 
Eddy, Inc. 1991).
    b. Tertiary Filters: Filters following chemical phosphorus removal 
can be used to achieve high removal rates of phosphorus. Tertiary 
filtration may include sand filters, ion-exchange, membranes, and 
others.
4. Pathogen Removal
    Disinfection destroys remaining pathogenic microorganisms and is 
generally required for all MPP wastewaters being discharged to surface 
waters. Chlorination/dechlorination, Ultra-Violet (UV), and some 
filters can be used to meet effluent limits for pathogens and to 
inactivate pathogenic microorganisms prior to discharge to surface 
waters.
    a. Chlorination/dechlorination: Chlorine disinfects wastewater 
through oxidation reactions with cellular material which results in the 
destruction of pathogens. Mixing and contact time in a chlorine contact 
chamber are critical factors to ensure proper disinfection. The 
chlorine compounds commonly used for wastewater disinfection are 
chlorine gas, calcium hypochlorite, sodium hypochlorite, and chlorine 
dioxide (Metcalf & Eddy, Inc. 1991). Chlorine residuals are toxic to 
aquatic life, so dechlorination is often necessary. Sulfur dioxide can 
be added, as it reacts with both free chlorine and chloramines with 
chloride ions, lowering chlorine residuals (USEPA, 1999. EPA 832-F-99-
062).
    b. Ultra-Violet (UV): Radiation emitted from UV light is an 
effective bactericide and virucide and does not generate any toxic 
compounds. Wavelengths between 250 and 270 nm inactivates cells (USEPA, 
1999. EPA 832-F-99-064). UV lamps can be submerged in the wastewater or 
suspended outside the wastewater.
    c. Tertiary Filtration: Filters and membranes with pore sizes 
smaller than pathogens can be used to remove pathogens from wastewater. 
Ultrafiltration, membranes, and reverse osmosis are options.
5. Chlorides Removal
    Some MPP processes, including hides processing, meat and poultry 
koshering, and further processing techniques, such as curing, brining, 
and pickling, commonly produce wastewater streams with high levels of 
chlorides. Some facilities engage in water softening, which can also 
produce high chlorides wastestreams. Wastewater treatment technologies 
commonly found at POTWs and many MPP facilities do not remove 
chlorides. The optimal chlorides treatment technologies for a facility 
depends on wastewater strength, climate, land availability, and cost. 
High chloride wastestreams may be able to be separated from other 
wastestreams, which can reduce costs and energy required for treatment.
    a. Hauling: Facilities may choose to haul high chloride wastewater 
(also

[[Page 4484]]

called brine) offsite in tanker trucks. The wastewater may be taken to 
a renderer where it may be used for production purposes, transported to 
a facility equipped to treat and/or dispose of brine, or taken offsite 
for deep-well injection or other means of disposal. Hauling can be 
costly as compared to other options, especially for large amounts of 
wastewater.
    b. Evaporation ponds: Brine wastewater may be disposed into shallow 
ponds exposed to the sun. The water evaporates, leaving salt. The salt 
will need to be emptied from the ponds occasionally to allow the ponds 
to be reused. This technology relies on solar evaporation and is best 
in dry/semi-dry climates. Land space for the ponds is also necessary. 
Due to the potential for groundwater pollution, the ponds should be 
lined (Panagopoulos et al. 2019).\9\
---------------------------------------------------------------------------

    \9\ Panagopoulos, A., Haralambous, K.J., and Loizidou, M. 2019. 
Desalination brine disposal methods and treatment technologies--A 
review. Science of The Total Environment, 693. <a href="https://doi.org/10.1016/j.scitotenv.2019.07.351">https://doi.org/10.1016/j.scitotenv.2019.07.351</a>.
---------------------------------------------------------------------------

    c. Evaporation systems/Crystallizers: Brine water is concentrated 
to near saturation, which results in salt crystallization. Heat is used 
to evaporate the water. The systems are often costly as compared to 
other options and corrosion is common if proper materials of 
construction are not utilized (Zhang et al. 2021).\10\
---------------------------------------------------------------------------

    \10\ Zhang, C., Shi, Y., Shi, L., Li, H., Li, R., Hong, S., 
Zhuo, S., Zhang, T., Wang, P. 2021. Designing a next generation 
solar crystallizer for real seawater brine treatment with zero 
liquid discharge. Nature Communications, 12. <a href="https://www.nature.com/articles/s41467-021-21124-4">https://www.nature.com/articles/s41467-021-21124-4</a>.
---------------------------------------------------------------------------

    d. Deep-well injection: Fluids such as brine/salt water can be 
injected underground into porous geological formations. The well is 
normally 500 to1500 meters deep. Constructing a well can be costly, and 
deep-well injection is not allowed in some parts of the U.S. 
(Panagopoulos et al. 2019).
6. Solids Handling
    Some wastewater treatment technologies produce industrial sludge. 
In the MPP industry, sludge is primarily generated by the DAF and 
clarifiers. The sludge contains oil & grease, organic materials, 
nitrogen, phosphorus, and chemicals/polymers added in the treatment 
system. The sludge may have a high-water content, which can be reduced, 
to reduce volume and save hauling and landfilling costs. Common 
dewatering technologies include gravity thickening units and the belt 
filter press. The sludge may be incinerated, land applied, or 
landfilled, depending on State, local and federal regulations and 
disposal method availability.

VI. Data Collection

A. Information From the Meat and Poultry Products Industry

    The Agency evaluated the following databases online to locate data 
and information to support regulatory development: The Agency's ICIS-
NPDES database, USDA's Food Safety and Inspection Service's Hazard 
Analysis and Critical Control Point (HACCP) Databases, the 2020 U.S. 
Census of Manufactures, Dun & Bradstreet (D&B) Hoover's database, and 
Experian's Business TargetIQ database. In addition, the Agency 
conducted a thorough collection and review of secondary sources, which 
include data, reports, and analyses published by government agencies; 
reports and analyses published by the MPP industry and its associated 
organizations; and publicly available financial information compiled by 
both government and private organizations.
    EPA met with or consulted the following organizations for industry 
information including facility names, addresses and contact 
information: National Cattlemen's Beef Association, National Pork 
Producers Council, North American Meat Institute, the North American 
Renderers Association, and the U.S. Poultry & Egg Association.
    The documents cited above were all used by EPA in developing the 
industry profile, a survey sampling frame, and for stratifying the 
survey sampling frame. In addition to these publications, EPA examined 
many other documents that provided useful overviews and analysis of the 
MPP industry. EPA also conducted general internet searches by company 
name.
1. Survey
    Publicly available data on MPP facilities are limited. EPA has 
based the population of MPP facilities on data largely from the USDA 
FSIS. The FSIS dataset compiles information on facility name and 
location, type(s) of meat and poultry processed, and limited details on 
size (both employees and amount processed). USDA FSIS does not report 
details specific to wastewater generation or wastewater treatment. EPA 
also included a list of renderers from the NRA, and MPP facilities in 
the ICIS-NPDES dataset, in developing the list of MPP facilities. These 
data are limited since the NPDES data generally includes only those 
facilities directly discharging wastewater, although some individual 
States require pretreatment permits to also be reported.
    In order to supplement publicly available data sources, EPA 
conducted a survey of the MPP industry. EPA developed two 
questionnaires to collect site-specific technical and economic 
information to provide a more robust record to support developing 
regulatory options and conduct analyses required by statutes and 
executive orders. EPA's Office of Water administered a Census 
Questionnaire and a Detailed Questionnaire to facilities engaging in 
meat and poultry processing, including those currently regulated under 
40 CFR part 432, and facilities that discharge wastewater directly to 
waters of the U.S., indirectly to POTWs, or do not discharge 
wastewater. The Census Questionnaire was administered as a census of 
the industry to confirm the industry population, as well as general 
information on the industry, including:
    <bullet> Processing details (including type of meat or poultry and 
type of processing),
    <bullet> Type and size (both production and employees) of the 
facility, and
    <bullet> Wastewater generation and treatment information.
    EPA used information collected through the Census Questionnaire to 
confirm the list of facilities that fall within the MPP industry and to 
identify which MPP facilities generate, treat, and/or discharge 
wastewater. A statistically representative subset of different types of 
MPP facilities were asked to complete a more detailed set of questions. 
This Detailed Questionnaire collected the same information as the 
Census Questionnaire and additional details on processing operations, 
types and amount of wastewater generated by operation, wastewater 
treatment details, and economic data. In addition, EPA collected and 
analyzed wastewater samples from six MPP facilities that received the 
Detailed Questionnaire to characterize raw waste streams, wastewater 
treatment systems, and treated effluent for pollutants of interest.
    At the outset of EPA's development of the questionnaires, based on 
data primarily from USDA FSIS and ICIS-NPDES, EPA estimated the MPP 
industry had between 7,000 and 8,000 facilities. Because no one data 
source collects information from all MPP facilities, the exact number 
was unclear at the time the questionnaires were developed. EPA refined 
the list of facilities by identifying additional or duplicate 
facilities and working with trade associations to identify facilities 
that do not process meat or poultry. EPA conducted a statistical sample 
of facilities on the list and sent 1,565 unique facilities the Detailed 
Questionnaire and the other facilities were sent the Census 
Questionnaire. EPA stratified the list of facilities (i.e., the 
sampling frame) into groups based

[[Page 4485]]

on the stage of operation (i.e., slaughter, further processor, 
renderer), the meat type (i.e., meat, poultry), and production, to 
increase sample precision. Each facility fell within one or more 
strata. EPA estimated the number of facilities to sample from each 
stratum based on acceptable error, confidence level, and expected 
response rate using Cochran's sample size formula. The target sample 
size was 1,633 and these 1,565 represent the 1,633 facility-strata 
combination as some facilities fell in multiple strata and represent 
multiple strata. The Detailed Questionnaire included all questions in 
the Census Questionnaire. Both questionnaires were issued at the same 
time and requested data for 2021. Data from 2021 represents the most 
recent year for which complete technical and economic data were 
available as EPA administered the survey in 2022. The Detailed 
Questionnaire also asked for some data from 2017 and 2019 to evaluate 
recent trends in industry operation and economics. EPA administered the 
data collection under the authority of section 308 of the Federal Water 
Pollution Control Act, 33 U.S.C. 1318 and in accordance with the 
Paperwork Reduction Act, 44 U.S.C. 3501-3521.\11\ The questionnaires 
can be found in Docket ID Number EPA-HQ-OW-2021-0736. Additional 
details on the questionnaire methodology can be found in the TDD.
---------------------------------------------------------------------------

    \11\ EPA ICR No. 2701.01, OMB Control No. 2040-NEW.
---------------------------------------------------------------------------

2. Stakeholder Meetings and Outreach
    EPA encouraged the participation of all interested parties 
throughout the development of the MPP rule. The Agency conducted 
outreach to trade associations that represent the vast majority of the 
facilities that will be affected by the rule. EPA met with various 
stakeholders to discuss aspects of the regulation development. EPA also 
participated in industry meetings and gave presentations on the status 
of the regulation development. A comprehensive list and description of 
these meetings can be found in the TDD. EPA also met with environmental 
groups and Tribal communities and conducted environmental justice 
outreach. For details on these meetings, see the Environmental 
Assessment for the Proposed Effluent Limitations Guidelines and 
Standards for the Meat and Poultry Products Point Source Category (U.S. 
EPA, 2023. EPA 821-R-23-012).

B. Economic Data

    EPA analyzed the economic impact of the proposed regulation on both 
discharging facilities and the firms that own them. These analyses form 
the basis of EPA's proposed determination that the regulation is 
economically achievable. EPA also analyzed larger market wide impacts 
on production levels, prices, and employment. EPA relied on existing 
sources of economic data for these analyses and to supplement facility 
and firm information obtained from the industry survey.
1. Facility and Firm-Level Economic Data
    When questionnaire responses were available for a facility and its 
owner, that information was used for the impact analyses, such as the 
closure analyses and the cost-to-revenue screening analyses that are 
described in detail in section VIII. When information from the 
questionnaire was not available, however, EPA relied on two primary 
sources of external data. The first data source was the USDA FSIS 
facility-level information. This information was used to supplement 
facility production and employment estimates. The second data source 
was D&B Hoovers database of business information. This source was used 
to supplement revenue, employment, and ownership information at both 
the firm and facility level.
2. Industry and Sector-Level Economic Data
    After estimating facility and firm level costs, EPA analyzed the 
potential effect on market prices for major industry commodities such 
as, beef, pork, broiler chickens, and turkeys. EPA also analyzed the 
potential for changes to national and regional production-levels for 
these commodities. EPA estimated changes to both short-term and long-
term employment levels. Finally, EPA also estimated potential changes 
to the barriers-to-entry for this industry as well as industry 
consolidation trends.
    The primary data source for the sector and industry-level analyses 
is USDA's Economic Research Service (ERS). The ERS analyzes trends and 
emerging issues in the agricultural sector and regularly publish data 
on farm sector performance and farm households' well-being; farm size 
and concentration; market analysis, data, and projections on commodity 
supply, demand, and prices; and Federal farm policies. EPA also used 
results from agricultural market studies published in peer reviewed 
journals.

C. Other Data Sources

    EPA conducted several data collection activities in support of 
developing the proposed rule. EPA used these data to develop an 
industry profile, evaluate industry subcategorization, determine 
wastewater characteristics and potential pollution control 
technologies, review potential pollutant load reductions and costs 
associated with certain technology options, review environmental 
impacts associated with discharges from this industry, and develop 
pollutant limitations.
1. Site Visits
    During 2022, EPA conducted site visits at nine different MPP 
facilities, specifically three meat facilities, five poultry 
facilities, and one independent rendering facility. In selecting 
candidates for site visits, EPA attempted to identify facilities with 
advanced wastewater treatment technologies across the different types 
of operations performed in the industry. During each visit, EPA 
collected information on facility process operations including recent 
changes and upgrades, wastewater treatment operations, water usage, and 
waste management operations. See the TDD for additional details on site 
visits.
2. Wastewater Sampling
    Between August and November 2022, EPA conducted a sampling program 
at six MPP facilities located throughout the United States to collect 
wastewater characterization data and treatment performance data.
    EPA selected facilities based on nitrogen and phosphorus discharge 
data reported in DMRs and wastewater treatment information obtained 
from permits, permit application data, and site visits. EPA selected 
three meat facilities, two poultry facilities, and one independent 
rendering facility with low discharges of nutrients and/or phosphorus. 
All selected facilities were direct discharge facilities.
    During each sampling episode, EPA collected wastewater samples for 
five consecutive days. Sampling points varied by facility and 
wastewater treatment system, but in general, EPA collected the 
following samples at all selected facilities:
    <bullet> Treatment system influent (untreated wastewater). Sample 
collected downstream of screening (if present) to ensure large solids 
were removed to facilitate sampling.
    <bullet> Effluent from primary treatment (or influent to biological 
treatment). Primary treatment typically included a DAF unit or 
anaerobic basin/lagoon.

[[Page 4486]]

    <bullet> Effluent from biological treatment (or influent to 
tertiary treatment). Biological treatment typically included complete 
nitrification/denitrification.
    <bullet> Effluent from tertiary treatment (e.g., filters, 
disinfection, and/or chlorination/dechlorination), if tertiary 
treatment was in place.
    <bullet> Final effluent from the treatment system, if different 
than effluent from last level of treatment (e.g., reaeration basin).
    EPA also collected operations data during the sampling episode to 
allow for an engineering assessment of the design, operation, and 
performance of treatment systems at MPP facilities. Specifically, EPA 
collected system design information, as well as daily operations data 
(e.g., production, wastewater flow, chemical additions, sludge 
generation). See the TDD and facility-specific sampling episode reports 
(USEPA. 2023. DCN MP00326, DCN MP00333, DCN MP00332, DCN MP00317, DCN 
MP00315, DCN MP00311) for details on the sampling points selected for 
each facility and the operational data collected.
    Based on conversations with industry, most MPP facilities use 
drinking water sources (public water supplies or well water) for all 
source water. Furthermore, facilities may treat their source water with 
sodium hypochlorite (NaOCl) or water softeners before use as the 
facilities are generating food-grade products (USEPA. 2022. DCN 
MP00123, DCN MP00276, DCN MP00138, DCN MP00142). For these reasons and 
because EPA does not expect drinking water to contain nutrients or 
other pollutants at levels found in MPP wastewater, EPA did not collect 
source water samples.
    EPA identified pollutants of interest in MPP wastewater based on 
data from the previous MPP rulemaking (USEPA, 2004) and literature 
searches. Below is a list of pollutant or pollutant groups chosen by 
EPA for the MPP sampling program.

<bullet> Biochemical oxygen demand (BOD) and carbonaceous biochemical 
oxygen demand (CBOD)
<bullet> Chemical Oxygen Demand (COD)
<bullet> Inorganic anions
<bullet> Oil & grease
<bullet> Nitrogen compounds
<bullet> Total and ortho-phosphorus
<bullet> TSS and TDS
<bullet> Total organic carbon (TOC)
<bullet> Bacteria (fecal coliform, Escherichia coli (E. coli)) and 
enterococci)
<bullet> Metals

    See the Pollutants of Concern (POC) Analysis for the Meat and 
Poultry Products (MPP) Proposed Rule (USEPA. 2023. DCN MP00190), which 
presents a table of the pollutants by analytical method and 
corresponding baseline values. See the Generic Sampling and Analysis 
Plan (GSAP) (USEPA. 2023. DCN MP00136) and the facility-specific 
sampling and analysis plans (SAPs) (USEPA. 2023. DCN MP00149, DCN 
MP00137, DCN MP00150, DCN MP00151, DCN MP00152, DCN MP00153) for more 
information on sampling procedures. EPA has included in the MPP 
Rulemaking Record all information collected for which each facility has 
not asserted a claim of CBI or which would indirectly reveal 
information claimed to be CBI.

VII. Proposed Regulation

A. Description of the Options

    As previously described, EPA's 2019 cross-cutting review of 
nutrient discharges from 59 industrial categories found that the MPP 
point source category discharged some of the highest nitrogen and 
phosphorus levels of all industries. OW initiated a detailed study in 
2020 and announced a rulemaking to revise the ELGs in EPA's Preliminary 
Plan 15 based on information suggesting facilities can do more to 
control nutrients and other pollutants and that revisions could reduce 
discharges affecting underserved and overburdened communities (USEPA. 
2021. EPA-821-R-21-003). EPA identified technologies currently in use 
by MPP facilities that can further reduce nitrogen discharges below the 
levels that are found in the existing ELGs, which were last revised in 
2004. In addition, MPP facilities are currently using technologies to 
remove phosphorus, which is not regulated under the existing MPP ELGs. 
This proposal evaluates three regulatory options as shown in Table VII-
2 of this preamble. While developing these regulatory options, EPA's 
goal was to reduce pollutant discharges to surface waters, reduce and/
or eliminate interference and passthrough at POTWs receiving MPP 
wastewater, and establish effluent limits and pretreatment standards 
based on technologies that are available and economically achievable 
for the industry, while minimizing impacts to small business.
    EPA considered and continues to consider ways to minimize impacts 
to small business when developing the regulatory options consistent 
with the statutory factors. As described in Section V, EPA identified 
5,055 MPP facilities generating process wastewater, and 3,879 of these 
facilities discharge to waters of the U.S. directly or indirectly. EPA 
carefully considered impacts of new or revised effluent limitations and 
pretreatment standards on small business by using facility production 
thresholds to distinguish smaller facilities with lower revenues from 
larger facilities. In developing the options, EPA evaluated differing 
thresholds for applicability of the proposed rule provisions to 
evaluate how impacts to small business would vary as more and smaller 
facilities would be subject to new and/or more stringent effluent 
limitations and pretreatment standards. The record supports that the 
impacts to small business from the preferred option (Option 1) would 
not be significant (see Section XVI.C). Under Option 1, most MPP 
facilities (79 percent) fall below the proposed production thresholds, 
and therefore, would have no new limitations. The proposed new 
limitations under Option 1 would impact 844 facilities, representing 21 
percent of the total number of MPP facilities discharging to waters of 
the U.S. and to POTWs.
    Under the most expansive option proposed (Option 3), new 
limitations would impact 1,618 facilities of the 3,879, or 42 percent 
of facilities discharging to waters of the U.S. and to POTWs. EPA also 
considered minimizing impacts to small businesses by basing effluent 
limitations on lower cost wastewater treatment technologies for 
facilities with lower production. For example, in Option 3, indirect 
discharging facilities producing below 5 million pounds per year would 
have no new requirements and indirect discharging facilities producing 
between 5 and 30 million pounds per year would have effluent 
limitations based on lower cost pretreatment technologies consisting of 
screening and DAF to control conventional pollutants only. Facilities 
producing 30 million pounds per year or greater would have additional 
requirements that include both conventional pollutant removal and 
nitrogen and phosphorus removal, and this would impact only 21 percent 
of indirect discharging facilities.
    Table VII-1 shows the total number of MPP facilities that have 
discharges followed by the number of facilities that EPA estimates 
would incur costs to comply with the requirements of the various 
regulatory options. All options build on the existing MPP ELGs and are 
based on three technologies: conventional pollutant (e.g., BOD, TSS, 
Oil & Grease) removal by screening and DAF, phosphorus removal by 
chemical precipitation, and nitrogen removal by biological treatment to 
achieve full denitrification. Each option

[[Page 4487]]

incrementally increases the subcategories and/or number of facilities 
to which the effluent limitations and pretreatment standards would 
apply. Nitrogen and phosphorus are two primary pollutants to be reduced 
with these regulatory options and the processes involved in removal are 
briefly described next.

 Table VII-1--Number of MPP Facilities--Total Discharging Facilities and Number That Would Incur Costs Under the
                                     Requirements of the Regulatory Options
----------------------------------------------------------------------------------------------------------------
                                                                                                    Total #
                                                                                 Total #           facilities
             Regulatory option                       Discharge type            dischargers      incurring costs
                                                                                                   under ELG
----------------------------------------------------------------------------------------------------------------
Option 1...................................  Directs......................                171                126
                                             Indirects....................              3,708                719
                                                                           -------------------------------------
                                                         Total                          3,879                845
Option 2...................................  Directs......................                171                126
                                             Indirects....................              3,708                719
                                                                           -------------------------------------
                                                         Total                          3,879                845
Option 3...................................  Directs......................                171                135
                                             Indirects....................              3,708               1485
                                                                           -------------------------------------
                                                         Total                          3,879              1,620
----------------------------------------------------------------------------------------------------------------

    Nitrogen removal is carried out through a three-step biological 
process: (1) The conversion of ammonia from organic nitrogen by 
hydrolysis and microbial activities, called ammonification; (2) the 
aerobic conversion of ammonia to nitrate by reacting the ammonia with 
oxygen in a process called nitrification; and (3) the conversion of 
nitrate to nitrogen gas by reacting the nitrate with organic carbon 
under anoxic conditions in a process called denitrification. Phosphorus 
can be removed from wastewater by biological uptake by microorganisms 
and by chemical precipitation with a metal cation. Depending on the 
target concentration, a plant process might employ both technologies. 
Such a combined approach might be of particular benefit if the target 
concentration is very low and the starting concentration is high. In 
such a case, biological removal is used to remove the bulk of the 
phosphorus, and chemical polishing follows to achieve the final 
concentration; such an approach tends to reduce sludge formation from 
denitrification (USEPA. 2008. EPA 832-R-08-006).
    For direct dischargers, all proposed options would establish 
revised effluent limitations that build upon the wastewater treatment 
systems that are the basis of the existing MPP ELGs. The ELGs that 
currently apply to these facilities are based on screens, DAF, 
anaerobic lagoons, biological treatment to achieve nitrification and 
partial denitrification, and chlorination/dechlorination. The effluent 
limitations for direct dischargers in today's proposal are based on 
more complete denitrification. Therefore, large facilities that already 
have denitrification technology for nitrogen removal would likely need 
to add more complete denitrification and chemical phosphorus removal 
technologies to comply with the proposed effluent limitations for total 
nitrogen and phosphorus. Smaller facilities could be subject to 
nutrient limits under the lower production thresholds in Option 3 and 
would presumably need to install this technology for the first time, 
since these facilities are currently below the applicability threshold 
for the existing ELG.
    Since there are no national pretreatment standards applicable to 
the MPP category, indirect discharging facilities are currently only 
subject to any local limits established by the control authority under 
the general pretreatment regulations at 40 CFR part 403. Wastewater 
treatment in place at indirect discharging facilities therefore ranges 
from no treatment to some treatment. Treatment ranges from basic 
treatment, such as screens and oil water separators, or more complex 
treatment such as DAF, anaerobic lagoons, biological treatment to 
achieve nitrification and denitrification, and phosphorus removal. To 
meet the proposed conventional pollutant pretreatment standards under 
the preferred Option 1, which is based on screens and DAF technology, 
existing indirect discharging facilities with no treatment in place now 
would likely need to install similar technologies. To meet the nitrogen 
and phosphorus pretreatment standards contained in Options 2 and 3, 
many indirect dischargers would likely need to add additional treatment 
such as anaerobic lagoons, biological treatment to achieve 
nitrification and full denitrification, and chemical phosphorus removal 
technologies. However, as described later in this preamble, EPA is 
proposing to include ``conditional limits'' under Options 2 and 3 which 
would allow an exemption from nutrient pretreatment standards for 
indirect dischargers that are discharging to POTWs that have nutrient 
removal capabilities that result in equivalent nutrient removal.
    Option 1 is EPA's preferred option and builds on the existing MPP 
ELGs by adding new effluent limitations for large direct and indirect 
dischargers. Option 1 would include new phosphorus limits for large 
direct dischargers based on chemical phosphorus removal technology, 
more stringent nitrogen limits for large direct dischargers based on 
full (not partial) denitrification, and new conventional pollution 
limits (pretreatment standards) for large indirect dischargers based on 
very basic wastewater treatment such as screening and DAF technologies 
to prevent passthrough and interference at POTWs. EPA requests comment 
on the concept of allowing POTWs, control authorities, or permit 
authorities to waive, under certain circumstances, the new conventional 
pollutant limits for large indirect dischargers. Although EPA is 
unclear how this would work in practice, it is possible that POTWs not 
experiencing passthrough and interference may be able to waive these 
pretreatment standards while continuing to prevent passthrough and 
interference. Additionally, POTWs that perform denitrification may want 
to waive BOD limits for their MPP industrial users so they can receive 
more carbon to support bacterial conversion of nitrates to nitrogen 
gas. EPA requests comment both on whether

[[Page 4488]]

such waivers should be allowed, and the demonstration necessary to 
justify such waivers.
    Large refers to the existing rule production thresholds of greater 
than 50 million pounds per year of finished product produced for meat 
further processors (Subcategories F-I) and in terms of LWK for meat 
slaughtering (Subcategories A-D). For poultry slaughtering (Subcategory 
K) large also refers to existing rule production thresholds of greater 
than 100 million pounds per year of LWK, greater than 7 million pounds 
per year of finished product produced for poultry further processors 
(Subcategory L), and 10 million pounds per year of raw material 
processed for renderers (Subcategory J).
    Option 2 builds on (includes all requirements in) Option 1 and 
would add nitrogen and phosphorus pretreatment standards for some large 
indirect discharging slaughterhouses and renderers. Specifically, 
Option 2 would add phosphorus and nitrogen limits for indirect 
discharging slaughterhouses producing greater than or equal to 200 
million pounds per year and indirect discharging renderers producing 
greater than or equal to 350 million pounds per year.
    Option 3 extends the requirements for both direct and indirect 
discharging facilities under Options 1 and 2 to smaller facilities. For 
direct discharging facilities, Option 3 would apply phosphorus and 
nitrogen limits to all subcategories producing greater than or equal to 
10 million pounds per year, and additional more stringent nitrogen 
limits in all subcategories producing greater than or equal to 20 
million pounds per year. For all indirect discharging facilities, 
Option 3 would require conventional pollutant limits for facilities 
producing greater than 5 million pounds per year, and nitrogen and 
phosphorus limits for facilities producing greater than 30 million 
pounds per year.
    Additionally, all options would include stricter fecal coliform 
limits for direct discharging facilities, based on chlorination/
dechlorination and UV disinfection (which is the same technology basis 
for the existing limitations for fecal coliform).
    In addition to the options described above, EPA solicits comment on 
including three additional requirements in any final rule. First, 
limitations on the discharge of chlorides by establishing a zero 
discharge of pollutants requirement for certain high chlorides 
wastestreams. The technology basis for this requirement is segregation 
of these wastestreams from other process wastewater streams and 
management via sidestream evaporation. EPA solicits comment on 
including this provision for all facilities (both direct and indirect) 
producing more than 5 million pounds per year with high chlorides 
processes. Second, EPA solicits comment on conditional limitations for 
phosphorus and nitrogen discharges from indirect dischargers under 
Options 2 and 3. Third, EPA solicits comment on limitations on E. coli 
for direct discharging facilities.

B. Proposed Changes to Subcategories

    As described above, EPA proposes to revise ELGs for facilities in 
the following MPP subcategories: Simple Slaughterhouses (Subcategory 
A), Complex Slaughterhouses (Subcategory B), Low-Processing 
Packinghouses (Subcategory C), and High-Processing Packinghouses 
(Subcategory D). Although the proposed options may establish differing 
production thresholds for applicability under these subcategories, EPA 
proposes to leave the definitions of these subcategories unchanged 
because the definitions are not based on production thresholds and 
effluent limitations in the proposed regulatory options would apply to 
a subset of these subcategories as they are currently defined.
    The Agency is not proposing revised ELGs for the small processor 
category (Subcategory E). Subcategory E is defined based on a size 
threshold of no more than 6,000 pounds per day (2.19M pounds per year) 
of any type or combination of finished product. EPA also proposes to 
leave applicability definitions for Subcategory E unchanged.
    EPA is proposing revised limitations and new pretreatment standards 
for facilities in the following MPP subcategories: Meat Cutters 
(Subcategory F), Sausage and Luncheon Meats Processors (Subcategory G), 
Ham Processors (Subcategory H), and Canned Meats Processors 
(Subcategory I). Subcategories F-I are currently defined based on a 
production rate greater than 6,000 pounds per day (2.19 million pounds 
per year), and EPA proposes to leave the definitions for these 
subcategories unchanged. However, EPA proposes to apply effluent 
limitations to a subset of these subcategories based on production 
thresholds, which could change under the proposed regulatory options.
    EPA is also proposing retaining the Renderer (Subcategory J) 
subcategory and revising the limitations and proposing new pretreatment 
standards for facilities in this subcategory. EPA proposes to leave the 
applicability definitions for Renderers (Subcategory J) unchanged as 
facilities using raw material at rates greater than 10 million pounds 
per year. However, EPA proposes to apply effluent limitations to a 
subset of these subcategories based on production thresholds, which 
could change under the proposed regulatory options.
    EPA is proposing establishing revised limitations and new 
pretreatment standards for facilities in the poultry subcategories. The 
poultry subcategories (Subcategory K, Poultry First Processing and 
Subcategory L, Poultry Further Processing) are not defined based on 
production and EPA proposes to leave the applicability definitions 
unchanged. However, EPA proposes to apply effluent limitations to a 
subset of these subcategories based on production thresholds, which 
could change under the proposed regulatory options.
    In summary, EPA is retaining the existing subcategories and 
proposing revisions to applicable effluent limitations and addition of 
new pretreatment standards for most of these subcategories. The 
proposed ELGs apply to subsets of facilities in each subcategory based 
on production thresholds. In establishing the original ELGs for this 
industry and in the 2004 revisions, EPA broke the industry down into 
subcategories with similar characteristics. This breakdown recognized 
the major differences among companies within the industry, which might 
reflect, for example, different processes or economies of scale. 
Subdividing an industry into subcategories results in more tailored 
regulatory standards, thereby increasing regulatory predictability and 
diminishing the need to address variations among facilities through a 
variance process (Weyerhaeuser Co. v. Costle, 590 F. 2d 1011, 1053 
(D.C. Cir. 1978)). EPA proposes to retain the subcategories in the rule 
as they reflect differences in processes and wastewater strength and 
composition and EPA has not identified any additional processes or 
changes in processes since the 2004 rulemaking that would warrant 
revision of the existing subcategories or consideration of any 
additional subcategories.
    In addition to some specific requests for comment included 
throughout this proposal, EPA solicits comment on all aspects of this 
proposal, including the information, data, and assumptions EPA relied 
upon to develop the three regulatory options, as well as the proposed 
effluent limitations and pretreatment standards for existing and new 
facilities, and additional provisions (see Section F below) included in 
this proposal.

[[Page 4489]]



                                   Table VII-2--Summary of Regulatory Options
----------------------------------------------------------------------------------------------------------------
                                            Direct dischargers                     Indirect dischargers
                                 -------------------------------------------------------------------------------
                                                          Applicable                              Applicable
                                   Technology basis       facilities       Technology basis       facilities
----------------------------------------------------------------------------------------------------------------
Option 1........................  Adds to existing    >50 million lbs/yr  Conventional        >50 million lbs/yr
                                   ELG: full           of finished         pollution limits    of finished
                                   denitrification,    product produced    based on            product produced
                                   chemical            for meat further    screening/grit      for meat further
                                   phosphorus          processors, >50     removal, DAF, and   processors, >50
                                   removal, filter.    million lbs/yr      dewatering/solids   million lbs/yr
                                                       LWK for meat        handling.           LWK for meat
                                                       slaughtering,                           slaughtering,
                                                       >100 million lbs/                       >100 million lbs/
                                                       yr of LWK for                           yr of LWK for
                                                       poultry                                 poultry
                                                       slaughtering, >7                        slaughtering, >7
                                                       million lbs/yr of                       million lbs/yr of
                                                       finished product                        finished product
                                                       produced for                            produced for
                                                       poultry further                         poultry further
                                                       processors, >10                         processors, >10
                                                       million lbs/yr of                       million lbs/yr of
                                                       raw material                            raw material
                                                       processed for                           processed for
                                                       renderers.                              renderers.
Option 2........................  Same technology as  Same facilities as  Same technologies   Option 1
                                   Option 1.           Option 1.           as Option 1 plus    facilities plus
                                                                           anaerobic lagoon    slaughterhouses
                                                                           (BOD                producing >=200
                                                                           pretreatment),      million lbs/yr
                                                                           activated sludge    and renderers
                                                                           (nitrification      processing >=350
                                                                           and full            million lbs/yr
                                                                           denitrification),   raw material.
                                                                           chemical P
                                                                           removal, filter.
Option 3........................  Same technology as  Phosphorus and      Same technology as  Conventional
                                   Option 1.           nitrogen limits     Option 2.           limits for
                                                       for all direct                          facilities
                                                       discharging                             producing >5
                                                       facilities                              million lbs/yr
                                                       producing >= 10                         plus nitrogen and
                                                       million lbs/yr,                         phosphorus limits
                                                       and more                                for all
                                                       stringent                               facilities >30
                                                       nitrogen limits                         million lbs/yr.
                                                       to all facilities
                                                       producing >=20
                                                       million lbs/yr.
----------------------------------------------------------------------------------------------------------------

C. Rationale for the Preferred Option (Option 1)

    Considering the statutory criteria and factors described in Section 
IV above, EPA proposes to revise the ELGs based on BPT, BCT, BAT, PSES, 
PSNS, and BADCT (for NSPS) based on the technologies described in its 
preferred Option 1. EPA also solicits comment on the other proposed 
options (Options 2 and 3), and any other permutation of these options, 
although they are not the preferred option in this proposed rule for 
the reasons discussed in section VII. E below.
    As described in section IV, the CWA defines two increasingly 
stringent levels of control to be used for developing limits for 
classes of pollutants and specifies factors that need to be considered. 
BPT is the first level of control and applies to all pollutants 
(Southwestern Electric Power Co. v. EPA, 920 F.3d 999, 1006 (5th Cir. 
2019)). BPT limits are set based on the facilities representing ``the 
average of the best'' wastewater treatment in use by the industry. 
Statutory factors include consideration of total cost in relation to 
benefits; costs cannot be ``wholly disproportionate'' to benefits 
(Chem. Mfrs. Assn. v. EPA, 870 F.2d 177, 205 (5th Cir. 1989)).
    BAT represents the second level of control for toxic and non-
conventional pollutants such as nitrogen and phosphorus. In setting 
BAT, EPA uses not the ``average'' plant, but rather the ``single best 
performing plant'' in the industry (Chem. Mfrs. Assn. v. EPA, 870 F. 2d 
at 226 (5th Cir. 1989)). Unlike BPT, the BAT factors omit a cost-
benefit analysis, and replace it with a requirement to consider only 
the ``cost of achieving such effluent reduction'' (Southwestern Elec. 
Power Co. v. EPA, 920 F.3d at 1006 (5th Cir. 2019)). The CWA requires 
that BAT be ``economically achievable,'' which has been interpreted to 
mean that the costs of controls can be ``reasonably borne'' by the 
industry (Chem. Mfrs. Ass'n, 870 F.2d at 262 (5th Cir. 1989); BP 
Exploration & Oil, 66 F.3d 784, 799-800 (6th Cir. 1996)). BCT 
represents the second level of control for conventional pollutants such 
as oil & grease, BOD, TSS, fecal coliform, and pH. Statutory factors 
for BCT include a cost-reasonableness test.
    Under the preferred Option 1, for direct dischargers, EPA proposes 
to revise BPT/BAT for nitrogen and phosphorus and BPT/BCT for fecal 
coliform. For indirect dischargers, EPA proposes to establish PSES and 
PSNS based on BPT/BCT for TSS, BOD, and oil & grease.
1. Direct Discharging Facilities (BAT)
    For direct dischargers, EPA proposes BAT effluent limitations for 
nitrogen based on biological treatment to achieve full denitrification 
and BAT effluent limitations for phosphorus based on biological 
treatment with chemical precipitation with filtration. After 
considering the factors specified in CWA section 304(b)(2)(B) (33 
U.S.C. 1314(b)(2)(B)), EPA proposes to find that this technology is 
technologically available, economically achievable, and has acceptable 
non-water quality environmental impacts.
(a) Availability of Nitrogen and Phosphorus Removal Technologies
    ``In setting BAT, EPA uses not the average plant, but the optimally 
operating plant, the pilot plant which acts as a beacon to show what is 
possible'' (Kennecott v. EPA, 780 F.2d 445, 448 (4th Cir. 1985), citing 
A Legislative History of the Water Pollution Control Act Amendments of 
1972, 93d Cong., 1st Sess. (Comm. Print 1973), at 798)). BAT is 
supposed to reflect the highest performance in the industry and may 
reflect a higher level of performance than is currently being achieved 
based on technology transferred from a different subcategory or 
category, bench scale or pilot plant studies, or foreign plants 
(Southwestern Elec. Power Co. v. EPA, 920 F.3d at 1006; Am. Paper Inst. 
v. Train, 543 F.2d 328, 353 (D.C. Cir. 1976); Am. Frozen Food Inst. v. 
Train, 539 F.2d 107, 132 (D.C. Cir. 1976)). BAT may be based upon 
process changes or internal controls, even when these technologies are 
not common industry practice (Am. Frozen Foods, 539 F.2d at 132, 140; 
Reynolds Metals Co. v. EPA, 760 F.2d

[[Page 4490]]

549, 562 (4th Cir. 1985); California & Hawaiian Sugar Co. v. EPA, 553 
F.2d 280, 285-88 (2nd Cir. 1977)). As recently reiterated by the U.S. 
Court of Appeals for the Fifth Circuit, ``Under our precedent, a 
technological process can be deemed available for BAT purposes even if 
it is not in use at all, or if it is used in unrelated industries. Such 
an outcome is consistent with Congress'[s] intent to push pollution 
control technology'' (Southwestern Elec. Power Co. v. EPA, 920 F.3d at 
1031, citation and internal quotations omitted). The technology bases 
for BAT are currently in use by MPP facilities across the sector. EPA 
has identified 14 facilities using enhanced nitrogen removal 
technologies and 22 using phosphorus removal technologies in both meat 
and poultry processing and rendering. These technologies are also 
widely used in municipal wastewater treatment in the U.S. and around 
the world. Accordingly, EPA proposes to find that such technologies are 
``available'' within the meaning of the statute.
(b) Economic Achievability of Nitrogen and Phosphorus Removal
    EPA proposes to find that the proposed BAT effluent limitations for 
total nitrogen and total phosphorus under the preferred Option 1 are 
economically achievable. Courts have interpreted economic achievability 
to mean that the cost of the regulations can be ``reasonably borne'' by 
the industry as a whole (Chem. Mfrs. Ass'n v. EPA, 870 F.2d 177, 262 
(5th Cir. 1989); BP Exploration & Oil v. EPA, 66 F.3d 784, 799-800 (6th 
Cir. 1996); see also Nat'l Wildlife Fed'n v. EPA, 286 F.3d 554, 570 
(D.C. Cir. 2002); CPC Int'l Inc. v. Train, 540 F.2d 1329, 1341-42 (8th 
Cir. 1976), cert. denied, 430 U.S. 966 (1977)). `Congress clearly 
understood that achieving the CWA's goal of eliminating all discharges 
would cause ``some disruption in our economy,'' including plant 
closures and job losses' (Chem. Mfrs. Ass'n v. EPA, 870 F.2d at 252, 
citations omitted; see also id. at 252 n.337, reviewing cases in which 
courts have upheld EPA's regulations that projected up to 50 percent 
closure rates).
    EPA assesses economic achievability using two primary approaches. 
The main approach is to use a discounted cash flow analysis to predict 
the number of possible closures resulting from implementation of the 
regulatory option. The closure analysis compares the future costs of 
compliance to the facility's estimated future earnings during the same 
period. For this analysis, EPA is considering a facility that shows 
positive future earnings without the rule and negative future earnings 
with the rule (regardless of magnitude of the earnings) to be a 
potential closure. EPA often also uses a simple financial screening 
analysis to compare facility compliance cost-to-revenue (CTR), in order 
to assess the relative magnitude of the economic impacts to each 
facility. The higher the ratio of cost to revenue, the greater the 
potential impact on the facility. Facilities experiencing significant 
economic impacts may, among other possibilities, reduce production 
levels, make changes to production and facility operations, forgo 
future expansion, or close. A cost-to-revenue analysis does not predict 
these responses but is a reasonable way to assess the likelihood of 
these types of impacts. On the other hand, some indirect facilities, 
depending on how their utility fees are structured, may incur lower 
payments to the receiving POTW due to lower pollutant loads being sent 
to the POTW.
    EPA proposes to find that the preferred Option 1 is economically 
achievable in terms of affordability to the industry as a whole because 
results from both the BAT analysis of potential closures and the BAT 
CTR analysis show that potential closures and financial impacts are 
limited to a single facility that accounts for approximately one 
percent of discharging facilities and less than one percent (0.02 
percent) of the total universe of MPP facilities. See Section VIII and 
the Cost and Economic Impact Screening Analyses and the Facility 
Closure Analysis sections of the RIA for more detailed results. 
Additionally, EPA also performed a market analysis that estimates the 
proposed Option 1 would change market prices for major meat and poultry 
commodities by less than a tenth of a percent. See the Market Impact 
Analysis section of the RIA for more detailed results.
    The annualized social cost of the preferred option is $232 million 
and $227 million using a three percent and seven percent discount rate 
respectively. The total cost of a rulemaking does not in and of itself 
inform the Agency about its impact to the industry as a whole without 
understanding the economic conditions of that industry. For example, an 
industry with total annual sales of only $20 to $30 billion might 
experience disruptions due to annual costs of this magnitude. However, 
the MPP industry, as classified under NAICS 3116, is a relatively large 
industry. The American Survey of Manufacturers estimates that total 
sales for the industry in 2021 were $267 billion.\12\ Given the size of 
the MPP industry, EPA does not consider the total annual cost of the 
preferred Option 1 to be a determinative factor with respect to 
economic achievability.
---------------------------------------------------------------------------

    \12\ U.S. Census Bureau. (2022). 2021 Annual Survey of 
Manufacturers: Summary Statistics for Industry Groups and Industries 
in the U.S.: 2018-2021.
---------------------------------------------------------------------------

(c) Non-Water Quality Environmental Impacts of Nitrogen and Phosphorus 
Removal
    EPA proposes to find that the non-water quality environmental 
impacts of the preferred Option 1 (full denitrification, chemical 
phosphorus removal, and filtering) are acceptable. For further 
discussion of these impacts, see Section X.
    EPA's preferred Option 1 for direct dischargers, which EPA 
estimates would require 125 of 171 total direct dischargers to install 
additional wastewater controls, would add an estimated additional 
78,989 MWh of demand to the U.S. power grid. This would increase the 
total power demand of the U.S. by 0.0000019 percent, based on the U.S. 
generating 4,108 billion MWh in 2021 nationwide (EIA, 2021).\13\ 
Preferred Option 1 for direct dischargers is also estimated to increase 
the US CO<INF>2</INF> emissions by 34,898 tons per year, or an 0.00058 
percent increase of the nationwide total (Climate Change Indicators: 
U.S. Greenhouse Gas Emissions. USEPA. 2023).\14\ In 2020, U.S. 
CO<INF>2</INF> greenhouse gas emissions totaled 5,981 million metric 
tons of CO<INF>2</INF> equivalents. EPA also estimates that an 
additional 286,685 tons of sludge will be generated under preferred 
Option 1. EPA proposes to find that the additional energy requirements, 
greenhouse gas emissions and sludge production are acceptable under the 
Act.
---------------------------------------------------------------------------

    \13\ U.S. Energy Information Administration. 2021. Electric 
Power Annual Report. <a href="http://www.eia.gov/electricity/annual">www.eia.gov/electricity/annual</a>.
    \14\ <a href="https://www.epa.gov/climate-indicators/climate-change-indicators-us-greenhouse-gas-emissions">https://www.epa.gov/climate-indicators/climate-change-indicators-us-greenhouse-gas-emissions</a>.
---------------------------------------------------------------------------

2. Indirect Discharging Facilities (PSES/PSNS)
    To control pollutants discharged by indirect discharging 
facilities, EPA establishes categorical pretreatment standards for 
existing sources (PSES) and for new sources (PSNS). Before establishing 
PSES/PSNS for a pollutant, EPA examines whether the pollutant ``passes 
through'' a POTW or interferes with the POTW operation or sludge 
disposal practices. In determining whether a pollutant passes through 
POTWs for these purposes, EPA typically compares the percentage of a 
pollutant removed by well-operated

[[Page 4491]]

POTWs performing secondary treatment to the percentage removed by 
direct dischargers operating the BPT/BAT technology basis. A pollutant 
is determined to pass through POTWs when the average percentage removed 
nationwide by well-operated POTWs performing secondary treatment is 
less than the average percentage removed by direct dischargers 
operating the BPT/BAT technology basis. EPA establishes pretreatment 
standards for those pollutants regulated under BPT/BAT that pass 
through POTWs. In this way, the standards for indirect dischargers are 
equivalent to direct dischargers in that the treatment capability and 
performance of POTWs is recognized and taken into account in regulating 
the pollutants from indirect dischargers.
    The Meat and Poultry Products POTW Passthrough Analysis (the 
Passthrough Analysis) indicates that oil & grease, BOD, TSS, TN and TP 
pass through POTWs (USEPA. 2023. DCN MP00309). EPA did not conduct its 
traditional passthrough analysis for the management of high chloride 
wastestreams that are being included for consideration as an additional 
regulated waste stream under all the proposed regulatory options. 
Rather, for chlorides, because the BAT technology for the proposed 
zero-discharge limitations and standards would achieve 100 percent 
removal of chlorides, and POTWs do not remove chlorides, the record 
supports a finding of passthrough absent this analysis.
(a) BAT Rationale for PSES/PSNS for Nutrients
    After considering all the relevant statutory factors and wastewater 
technologies presented in this preamble and the TDD, EPA is not 
proposing to establish pretreatment standards (PSES/PSNS) for nitrogen 
and phosphorus removal for indirect dischargers under its preferred 
Option 1 for the reasons discussed in Section VII.E below. However, EPA 
is soliciting comment on the other proposed regulatory options (Options 
2 and 3) and any other regulatory options that would include such 
pretreatment standards for nutrients (See Section VII.D below).
(b) BPT/BCT Rationale for PSES/PSNS for Conventional Pollutants
    Under preferred Option 1, EPA proposes to establish PSES based on 
the BPT level of control for conventional pollutants (BOD, TSS, oil & 
grease) based on screening and DAF technologies. After considering all 
the relevant factors and wastewater technologies presented in this 
preamble and in the TDD, EPA proposes to find that this technology is 
available, imposes costs that are not wholly disproportionate to 
effluent reduction benefits, and has acceptable non-water quality 
environmental impacts.
(c) Technological Availability
    Courts have interpreted BPT to represent the ``average of the 
best'' performance (EPA v. National Crushed Stone Assn., 449 U.S. 64, 
76 (1977). See also, Kennecott Copper v. EPA, 612 F.2d 1232, 1238 (10th 
Cir. 1979); Weyerhaeuser Co. v. Costle, 590 F.2d 1011, 1059, 1062 (D.C. 
Cir. 1978); American Petroleum Institute v. EPA, 540 F.2d 1023, 1034 
(10th Cir. 1976); American Frozen Food Institute v. Train, 539 F.2d 
107, 117, 119 (D.C. Cir.1976); American Meat Inst. v. EPA, 526 F.2d 
442, 462 (7th Cir. 1975); cert. denied, 430 U.S. 922 (1977); Tanners' 
Council of America, Inc. v. Train, 540 F.2d 1188, 1191 (4th Cir.1976)). 
The technologies forming the bases for the proposed BPT revisions 
represent the average of the best performance as they are in use by MPP 
facilities across the subcategories. EPA has identified 21 indirect 
discharging facilities using screening and DAF technologies in both 
meat and poultry processing and rendering. In addition, these 
technologies are widely used at direct discharging facilities. Most 
facilities use some type of oil & grease removal technology, and DAF is 
the most commonly used by MPP facilities. Furthermore, these 
technologies are widely used by a variety of industrial classes and in 
municipal wastewater treatment for the control of conventional 
pollutants. See the TDD for additional discussion of DAF. DAF 
technologies have a small footprint, and EPA has no data indicating 
that the facilities that would be subject to pretreatment standards for 
conventional pollutants under the preferred Option 1 would not be able 
to implement DAF technologies at existing and new facilities.
(d) Costs of Conventional Pollutants Removal (BPT/BCT)
    Caselaw and the CWA's legislative history indicate that to revise 
BPT, EPA is to employ a limited cost-benefit balancing test, applying 
controls unless the costs are wholly disproportionate to the effluent 
reduction benefits (Chem. Mfrs. Ass'n v. EPA, 870 F.2d 177, 204, 205 
(5th Cir. 1989); Kennecott Copper v. EPA, 612 F.2d 1232, 1238 (10th 
Cir. 1979); American Meat Inst. v. EPA, 526 F.2d 442, 453 (7th Cir. 
1975); cert. denied, 430 U.S. 922 (1977); America Frozen Food v. Train, 
539 F.2d 107, 117, 119 (D.C. Cir. 1976). See also, A Legislative 
History of the Water Pollution Control Act Amendments of 1972, 93d 
Cong. 1st Sess. at 169-170 (Comm. Print 1973)). EPA's analysis shows 
that the effluent reduction benefits are not wholly disproportionate to 
the costs of conventional pollutant removal technologies under the 
preferred Option 1 (see Section VIII.A for additional details). The 
costs are $32.84 million, and the effluent reduction is 234 million 
pounds per year of pollutants removed. Additionally, upgrading from the 
candidate BPT to BCT candidate technology (which is screening/grit 
removal, DAF, anaerobic lagoon, and biological treatment) did not pass 
the BCT cost test, and thus, EPA is proposing to set BCT as equal to 
BPT (see Section VIII B.).
(e) Non-Water-Quality Environmental Impacts (BPT/BCT)
    The record supports that removal of conventional pollutants under 
the preferred Option 1 would have acceptable non-water quality 
environmental impacts, including energy requirements (see Section X of 
this preamble).
    EPA's preferred Option 1 includes removal of the conventional 
pollutants BOD, oil & grease, and TSS from the meat and poultry 
facility's discharge before sending it to the POTW for further 
treatment. Under Option 1, 719 out of 3,708 indirect discharging 
facilities would incur an estimated 1,699 MWh of energy demand. 
Although most of this energy demand would be a shift from the POTW to 
the MPP facility, some portion of this could result in an additional 
energy demand to the U.S. power grid. This total power demand under 
preferred Option 1 is 0.000000041 percent of the U.S. power generation 
(based on 4,108 billion MWh in 2021 nationwide), which EPA proposes to 
find is acceptable (EIA, 2021).\15\ EPA also proposes to find that the 
additional GHG increases would be acceptable. Preferred Option 1 for 
indirect dischargers is estimated to increase the U.S. CO<INF>2</INF> 
emissions by 753 tons per year, or an 0.000013 percent increase of the 
nationwide total (based on U.S. CO<INF>2</INF> greenhouse gas emissions 
of 5,981 million metric tons of CO<INF>2</INF> equivalents in 2020) 
(Climate Change Indicators: U.S. Greenhouse Gas Emissions. USEPA. 
2023). Similarly preferred Option 1 for indirect dischargers would 
increase the sludge production by an estimated 11,961 tons of sludge 
per year, across 719 indirectly

[[Page 4492]]

discharging facilities, which EPA also proposes to find to be 
acceptable.
---------------------------------------------------------------------------

    \15\ U.S. Energy Information Administration. 2021. Electric 
Power Annual Report. <a href="http://www.eia.gov/electricity/annual">www.eia.gov/electricity/annual</a>.
---------------------------------------------------------------------------

D. Rationale for Other Regulatory Options Proposed (Options 2 and 3)

    EPA also evaluated the applicability of the statutory factors with 
respect to the other regulatory options proposed (Options 2 and 3), 
although EPA is not proposing these as the preferred option for the 
reasons discussed in Section VII.E below. With respect to technological 
availability, the technologies assessed for Options 2 and 3 are widely 
used in municipal wastewater treatment in the U.S. and around the 
world. The record supports that such technologies are available in that 
they effectively remove the pollutants addressed in this rulemaking. 
However, there may be constraints on availability of nutrient removal 
technologies with respect to indirect dischargers (as discussed in 
Section VII.E below), and EPA solicits information about such potential 
constraints. With respect to the statutory cost tests for BPT, BCT and 
BAT for Options 2 and 3, see Section VIII below. EPA's comparison of 
costs to benefits of the proposed BPT/BCT limitations under those 
options would historically support a finding that the costs are not 
``wholly disproportionate'' to the benefits. Similarly, the possible 
facility closures and cost to revenue ratio of the proposed BAT 
limitations are within the range of impacts that EPA has historically 
considered to be economically achievable, as required by CWA section 
301(b)(2)(A) (33 U.S.C. 1311(b)(2)(A)). EPA reasonably considered 
impacts on small businesses in setting production thresholds for 
applicability based on avoiding cost to revenue ratios indicating 
likelihood of economic impacts, as identified in the Regulatory 
Flexibility Analysis guidance (CWA section 304(b)(2)(B), authorizing 
consideration of ``such other factors as the Administrator deems 
appropriate'' in establishing BAT). With respect to non-water quality 
environmental impacts of the BPT/BCT and BAT technologies under Options 
2 and 3, see Section X below. EPA solicits comment on whether these 
proposed options--or other regulatory options based on different 
production thresholds or technologies--would meet the applicable 
statutory factors and should form the basis of any final rule.

E. Rationale for Rejecting Options 2 and 3 as the Preferred Option

    As discussed above, EPA considered two proposed options (Options 2 
and 3) that would be more expansive than Option 1. EPA did not select 
these as the preferred option due to several potential concerns. First, 
EPA is concerned that the more expansive options may impede the Biden 
Administration's initiatives to expand independent meat and poultry 
processing capacity and enhance the resilience of the food supply 
chain, as reflected in Executive Order (E.O.) 14036 (July 9, 2021). 
This is a crucial Administration priority to protect against the type 
of supply chain disruptions that arose during the COVID-19 pandemic. In 
issuing the E.O., the Administration explained that without such 
diversification, ``our food supply chains are susceptible to shocks,'' 
and that ``[w]hen COVID-19 or other disasters such as fires or 
cyberattacks shutter a plant, many ranchers have no other place to take 
their animals'' See Fact Sheet: The Biden-Harris Action Plan for a 
Fairer, More Competitive, and More Resilient Meat and Poultry Supply 
Chain (The White House. 2022) (noting that ``our overreliance on just a 
handful of giant processors leaves us all vulnerable, with any 
disruptions at these bottlenecks rippling throughout our food 
system.'').\16\
---------------------------------------------------------------------------

    \16\ <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2022/01/03/fact-sheet-the-biden-harris-action-plan-for-a-fairer-more-competitive-and-more-resilient-meat-and-poultry-supply-chain/">https://www.whitehouse.gov/briefing-room/statements-releases/2022/01/03/fact-sheet-the-biden-harris-action-plan-for-a-fairer-more-competitive-and-more-resilient-meat-and-poultry-supply-chain/</a>.
---------------------------------------------------------------------------

    Relative to many other industries regulated by ELGs, the MPP 
industry plays a critical role in the nation's food supply chain. The 
supply chain disruptions during the COVID-19 pandemic highlighted the 
problems with the consolidation of the industry over the last 50 years 
and how susceptible it is to shocks. The pandemic disrupted both the 
market supply and demand patterns typically observed. As the demand for 
meat and poultry from restaurants declined dramatically in response to 
the public lock down efforts, the demand for meat from grocery stores 
and on-line sources rose.\17\ At the same time, COVID began to spread 
rapidly through meat and poultry processing facilities. This resulted 
in a significant short-run disruption to supply as facilities 
temporarily closed and many more reduced line speeds due to both worker 
shortages and safety concerns.\18\ These combined changes to demand and 
supply led to shortages and higher prices for many meat and poultry 
commodities (The White House. 2022).
---------------------------------------------------------------------------

    \17\ Hobbs J.E. (2021). The Covid-19 pandemic and meat supply 
chains. Meat science, 181, 108459. <a href="https://doi.org/10.1016/j.meatsci.2021.108459">https://doi.org/10.1016/j.meatsci.2021.108459</a>.
    \18\ Whitehead, D., & Brad Kim, Y.H. (2022). The Impact of COVID 
19 on the Meat Supply Chain in the USA: A Review. Food science of 
animal resources, 42(5), 762-774. <a href="https://doi.org/10.5851/kosfa.2022.e39">https://doi.org/10.5851/kosfa.2022.e39</a>.
---------------------------------------------------------------------------

    EPA's analysis showed Options 2 and 3 have more potential facility 
closures than Option 1 due to the requirements imposed on additional 
facilities, thus potentially harming the Administration's priority to 
expand and diversify the meat and poultry processing industry. For this 
reason, EPA is selecting Option 1 as the preferred proposed option at 
this time, rather than more expansive options, as it would allow the 
Agency to achieve significant reductions in nutrients and conventional 
pollutants in a way that avoids potential supply chain disruptions in 
the nation's food supply, consistent with the policy direction in the 
E.O. While EPA's analysis shows Option 1 may result in 16 possible 
facility closures, this represents 0.03 percent of total industry 
facilities, and thus, any supply chain disruptions from such possible 
closures would be minimal, temporary and localized. In addition, the 
forecasted change in industry production levels due to the preferred 
Option 1 is estimated to be only 0.01 percent. By comparison, EPA's 
analysis shows that potential facility closures would be 22 under 
Option 2 and 53 under Option 3, supporting EPA's selection of Option 1 
as the preferred proposed option. See the Other Economic Factors 
section of the RIA for a more in-depth discussion of this issue.
    The CWA gives EPA authority to consider these policy concerns in 
determining BAT (CWA section 304(b)(2)(B) (authorizing consideration of 
``such other factors as the Administrator deems appropriate'' in 
assessing BAT); Weyerhaeuser v. Costle, 590 F.2d 1011, 1045 (D.C. Cir. 
1978) (Congress intended that EPA have discretion ``to decide how to 
account for the consideration factors, and how much weight to give each 
factor.'')).
    At the same time, EPA intends to consider any impact of federal 
financial assistance on wastewater treatment upgrades at these 
facilities. EPA seeks comment on whether other federal funds or other 
programs could reduce or minimize potential impacts of the more 
expansive options on the Administration's efforts to support the meat 
and poultry supply chain.
    EPA has also heard from small entity representatives (SERs) during 
EPA's SBREFA panel process (Final Panel Report of the Small Business 
Advocacy Review Panel on EPA's Planned Proposed Meat and Poultry 
Products Effluent Limitations Guidelines Rulemaking. USEPA. 2023. DCN 
MP00347) that there are potential

[[Page 4493]]

concerns about the availability of nitrogen removal technologies under 
Options 2 and 3, due to space limitations for such technologies at some 
facilities. Although these technologies are currently in use in the 
industry, these technologies require a greater land area than DAF (the 
conventional pollutant control technology that is the basis for the 
limits on indirect dischargers under Option 1), particularly at 
facilities with high wastewater flows. EPA has heard concerns from SERs 
with respect to facilities located in or near urbanized areas where 
sufficient space may not be available to install certain components of 
nitrification/denitrification technology, such as aerobic and anaerobic 
lagoons. Industry stakeholders have also indicated that zoning 
restrictions may prevent them from acquiring adjacent parcels of land 
that may be needed for installation of such technology. EPA estimates 
that 143 indirect discharging facilities would incur costs to comply 
with nitrogen and phosphorus effluent limits under Option 2 and 777 
such facilities would incur costs to comply with limits under Option 3, 
many of which would need to install nitrogen control technologies for 
the first time. EPA would like additional information about available 
space at such facilities, as well as information on other high rate/
small footprint nutrient removal technologies that might be available 
to treat MPP wastewater.
    EPA also heard from SERs concern about the availability of nutrient 
control technologies for indirect dischargers under Options 2 and 3 due 
to ongoing supply chain issues and labor shortages in the wastewater 
treatment industry. While these technologies are widely available and 
have been used in many industrial and municipal wastewater treatment 
facilities across the country to remove nutrients, SERs have raised 
concerns about the timing of such availability. The amount of a good 
supplied for a market can take time to adjust to a sudden large 
increase in demand. In addition, if there is a temporary spike in 
demand resulting from many facilities needing to come into compliance 
at the same time, there may not be an incentive for the companies that 
make and install these technologies to increase their long-term 
capacity. Given the large number of indirect facilities that would need 
to install new nutrient removing treatment technologies under Options 2 
and 3, there is a potential for implementation delays. These 
implementation delays could result in facilities operating out of 
compliance or temporarily closing until they are able to get the new 
control technology in place. See the Other Economic Factors Section of 
the RIA for a more in-depth discussion of this issue.
    Given the large number of indirect discharging facilities that 
would likely need to install nutrient removal technologies under 
Options 2 and 3, and the ongoing supply chain issues, it is not clear 
whether these technologies will be available in sufficient quantity to 
allow for installation within the three-year statutory timeframe for 
pretreatment standards under CWA section 307(b) (33 U.S.C 1317(b)). EPA 
solicits additional information about production capacity for nutrient 
control technologies in the industry, given that the Nation is 
currently in the process of significant investments in water 
infrastructure as part of the Bipartisan Infrastructure Law.
    In addition, EPA is considering whether there are compliance 
flexibilities for indirect discharging facilities that would allow for 
additional time beyond the three-year statutory timeframe in CWA 
section 307(b) (33 U.S.C. 1317(b)), in light of potential concerns 
about availability of technology due to supply chain issues. EPA 
solicits comment on how it could implement new pretreatment standards 
consistent with this provision recognizing that there could be supply 
chain issues preventing facilities from installing the treatment 
technologies. For example, one option could be to allow phased 
implementation based on size thresholds, whereby larger facilities 
would be required to install such technologies within three years of 
the effective date of the rule, while smaller facilities would be 
allowed additional time to install such technologies, based on a 
demonstration that the facility is contractually bound to procure the 
technology within a specified time of the effective date. EPA solicits 
comment on such an approach, or other implementation flexibilities for 
indirect discharging facilities, should the Agency decide to finalize a 
rule based on a more expansive option than the preferred Option 1.
    Should the Agency decide to promulgate a rule based on a more 
expansive option, EPA is considering conditional limits under these 
options (see Section VII.F) to reduce costs and eliminate the need for 
redundant treatment. To better understand the potential use of such 
conditional limits, EPA solicits information about how many POTWs that 
receive MPP wastewater have nitrogen and phosphorus removal 
technologies that could provide an equivalent level of treatment, and 
whether such flexibilities may result in significant cost savings, 
including any relevant data on incremental cost savings or other 
benefits.
    EPA has also heard from industry representatives that since 
nitrification/denitrification technologies also remove organic 
pollutants (as measured by BOD<INF>5</INF>), there is some concern 
about the ability of POTWs to meet their discharge limitations should 
indirect discharging MPP facilities be required to meet nitrogen 
pretreatment standards. The secondary treatment regulations at 40 CFR 
133.102 require POTWs to achieve a 30-day average percent removal of 
BOD and TSS of not less than 85 percent. If MPP facilities currently 
discharge a significant quantity of organic pollutants to a POTW, that 
load would be reduced after meeting any nitrogen pretreatment 
standards. That may therefore reduce the percent reduction in BOD 
achieved at the POTW since the POTW would be receiving more dilute 
flows. While EPA notes that the secondary treatment regulations at 
133.103(d) allow for consideration of less concentrated influent 
wastewater and the substitution of a lower percent removal requirement 
or a mass loading limit for the percent removal requirement by the 
Regional Administrator or State Director, which could address this 
issue, EPA solicits additional comments on this concern from the POTW 
community.

F. Additional Provisions

    In addition to seeking comment on the three proposed regulatory 
options, EPA solicits public comment on three additional provisions 
that would apply with respect to some of these options: First, with 
respect to the pretreatment standards for nitrogen and phosphorus that 
would apply to indirect dischargers under Options 2 and 3, EPA solicits 
comment on a provision that would allow an exemption from these limits 
for indirect discharging MPP facilities discharging to POTWs that 
provide equivalent nutrient removal as would be required under the 
proposed PSES/PSNS. Such ``conditional limits'' have been used in 
previous ELGs, such as the Iron and Steel Manufacturing Effluent 
Guidelines (40 CFR 420.15). EPA is considering including such a 
provision in any final rule that would contain nutrient pretreatment 
standards (such as under Options 2 or 3) because nitrogen and 
phosphorus removal technologies involve more costly, advanced treatment 
than is required for conventional pollutants and some facilities have 
already shared costs to upgrade their receiving POTW to remove 
nutrients to meet Water Quality Based Effluent

[[Page 4494]]

Limits in the POTW's discharge permits. If the receiving POTW is 
providing equivalent nutrient removal, then the MPP facilities may not 
need to pretreat their wastewater to remove nutrients to achieve an 
equivalent environmental outcome. Conditional provisions that allow 
this flexibility, provided the POTW agrees, would reduce costs for 
indirect dischargers where the POTW already has nutrient removal 
technologies and eliminate redundant treatment. For conditional limits 
applied to a MPP facility, EPA solicits comment on how to structure 
such a provision to include factors such as what treatment at the POTW 
could be considered equivalent, whether the POTW permit should contain 
nitrogen and phosphorus effluent limits at least as stringent as the 
pretreatment standards that would be required at the MPP facility, how 
to demonstrate compliance, how to ensure that the POTW has the capacity 
and ability to adequately treat such wastewaters while maintaining its 
design pollutant capacity reserved for the residential population, and 
the process by which the facility would request the conditional limits 
be applied and receive approval from their control authority.
    Second, EPA solicits comment on including E. coli as a regulated 
parameter for direct dischargers because the presence of E. coli is a 
more reliable indicator of pathogen pollution than the presence of 
fecal coliforms. E. coli, a predominate member of normal gut microflora 
in warm blooded animals, has a limited capacity for reproduction 
outside of the intestinal tract, making its presence in environmental 
samples a strong indicator of fecal contamination (Odonkor and Ampofo. 
2013).\19\ Fecal coliforms, a large group of thermotolerant bacteria, 
include some bacterial species of environmental origin and therefore 
can result in false positives for fecal contamination (Doyle and 
Erickson. 2006).\20\ EPA updated its recreational water quality 
standards in 2012 (USEPA. 2012. EPA-820-F-12-058) and the Revised Total 
Coliform Rule in 2013 (USEPA. 2013. EPA 815-B-13-001) to reflect the 
current state of knowledge for indicator bacteria. Given these updates 
in the use of bacterial indicators for water quality, and that current 
disinfection technology can consistently reduce the presence of these 
indicator bacteria below the current MPP ELGs, EPA is soliciting 
comment on more stringent fecal coliform limits for direct dischargers 
based on BCT/BPT as well as limits for E. coli for direct dischargers 
based on BAT as part of the preferred option in this proposed rule. EPA 
also solicits comment on replacing fecal coliform limits with E. coli 
limits in any final rule to reduce redundancy in monitoring and limit 
requirements.
---------------------------------------------------------------------------

    \19\ Odonkor, S.T.; Ampofo, J.K. 2013. Escherichia coli as an 
indicator of bacteriological quality of water: An overview. 
Microbiology Research, 4(1), e2. <a href="https://doi.org/10.4081/mr.2013.e2">https://doi.org/10.4081/mr.2013.e2</a>.
    \20\ Doyle, M.P.; Erickson, M.C. 2006. Closing the door on the 
fecal coliform assay. Microbe. 1, 162-163.
---------------------------------------------------------------------------

    Third, EPA solicits comment on including BAT/NSPS/PSES/PSNS 
chloride limits for certain wastestreams to remove salts from facility 
discharges in any final rule based on BAT. In the meat processing 
industry, salts may be used in further processing and for water 
softening purposes. The presence of chlorides in discharges to surface 
waters can adversely affect aquatic organisms because of their 
sensitivity to concentrations of salt. A review of chlorides data in 
2021 discharge monitoring reports from ICIS-NPDES showed about 70 
percent of MPP facilities are discharging wastewater with chloride 
concentrations exceeding ambient water quality criteria of 230 mg/L and 
secondary drinking water standards of 250 mg/L (the reported 70th 
percentile of these data was 254 mg/L). Although removing salt is 
difficult and can be expensive, and therefore treating the whole 
wastewater effluent may not be the most efficient way to control 
chlorides, some facilities have certain operations with process 
wastewater that is kept separate from the main waste stream. These 
processes include hide processing, water softening regeneration 
wastewater, meat and poultry koshering, and further processing 
operations involving marinating and curing. Segregation and treatment 
of these process wastestreams is currently in place at some MPP 
facilities. Segregation and management of these high chloride 
wastestreams could result in targeted reductions of up to 477 million 
pounds of salt discharges annually at a cost of $172 million annually 
if applied to 466 facilities under Options 1, 2 and 3.
    EPA is considering salt recycle/evaporation systems as the 
technology basis for establishing BAT/NSPS/PSES/PSNS limitations to 
control chlorides discharged in high chlorides waste streams in any 
final rule. EPA is considering effluent limitations for chlorides for 
direct and indirect discharging facilities in any subcategory with 
production greater than 5 million pounds per year with high chlorides 
processes. Analysis indicates that these technologies may be available, 
economically achievable, and have acceptable non-water quality 
environmental impacts. See section 12 of the TDD for additional details 
on the non-water quality environmental impacts of this provision. EPA 
is not including this provision as part of the preferred option in 
today's proposal, but rather is soliciting comment on including such a 
provision in any final rule. In particular, EPA solicits comment on the 
potential costs of such a provision, and specifically on the cost 
methodology and results contained in the TDD.

G. Small Business Considerations From the Small Business Advocacy 
Review Panel

    Although this proposed rule would not have a significant economic 
impact on a substantial number of small entities, EPA nonetheless has 
tried to reduce the impact of this proposed rule on small entities and 
completed the Small Business Advocacy Review (SBAR) panel to take input 
from small entities. EPA's proposed preferred option would not expand 
applicability to smaller direct discharging facilities, but it would 
propose first-ever national pretreatment standards for indirect 
discharging facilities. EPA's analysis (see Section VIII) shows that 
Option 1 would apply to 96 small firms. This section discusses the 5 
recommendations from the SBAR panel.
    EPA recognizes that under all options considered some facilities 
will be subject to pretreatment standards and/or categorical discharge 
standards for the first time, and therefore, may not be familiar with 
certain aspects of NPDES permitting and/or pretreatment standards. EPA 
also heard concerns during the SBAR panel outreach meetings with SERs 
specifically related to a lack of familiarity with effluent guidelines 
and pretreatment standards. One of the five recommendations was for EPA 
therefore to solicit comments on what information small facilities 
would find beneficial (e.g., terms to know for determining 
applicability and compliance, information from the POTW or control 
authority, information on the general permitting process, wastewater 
operator requirements, and how to measure annual production) that could 
be addressed through guidance or other materials that EPA could provide 
should any final rule expand applicability to small firms beyond the 
current rule. EPA therefore solicits comment from small entities on 
this topic.
    EPA also heard from SERs about concerns related to production 
thresholds for applicability of the ELGs. While EPA's proposed 
regulatory

[[Page 4495]]

options minimize impacts on small entities, another recommendation that 
EPA also solicits comment on is whether the proposed production 
thresholds could be adjusted to further minimize such impacts, 
particularly with respect to Options 2 and 3 as those options expand 
coverage to additional facilities as compared to Option 1. A third 
recommendation that EPA also solicits comment on is for alternatives to 
production thresholds for determining regulation, such as water usage, 
specifically as a way to minimize impacts to small firms or to provide 
an alternative means of determining applicability to small firms that 
may not track production.
    Under Options 2 and 3, EPA is considering conditional limits for 
facilities that discharge to POTWs with nitrogen and phosphorus limits 
and treatment capabilities equivalent to the treatment that would be 
needed to comply with any new proposed requirements. For these indirect 
discharging facilities, with documentation and approval by the POTW/
control authority, the MPP facilities would not need to treat the 
wastewater for nitrogen and phosphorus before discharging to the POTW. 
A fourth Panel recommendation that EPA also requests comment on is the 
inclusion of conditional limits, and specifically what documentation 
and approval by the POTW/control authority would be sufficient to 
establish conditional limits as a compliance mechanism.
    The fifth recommendation was for EPA to consider and take comment 
on a longer or flexible timeline for small entities to meet proposed 
regulations. EPA requests comment from small entities on what kind of 
timeline flexibilities would be helpful. See the SBREFA panel report 
for additional details regarding these and other considerations that 
were raised by SERs (USEPA. 2023. DCN MP00347).

VIII. Costs, BPT Wholly Disproportionate Cost Test, Economic 
Achievability, and Other Economic Impacts

    This section provides an overview of the methodology EPA used to 
assess the costs and the economic impacts of the three options 
considered in the proposed rule and summarizes the results of these 
analyses. EPA separately assessed the cost and economic impacts of the 
BPT, BCT, and BAT requirements for each regulatory option proposed. 
Then EPA assessed the combined economic effects of all BPT, BCT, and 
BAT requirements for each option for purposes of implementing the 
Regulatory Impact Analysis required by E.O. See the RIA and supporting 
information in the docket for additional detail. The proposed rule 
would revise BPT for conventional pollutants and consider whether more 
stringent BCT limits pass the two-part BCT cost test (51 FR 24974 (July 
9,1986)). For BPT, EPA performed a ``wholly disproportionate'' cost 
test for all direct and indirect discharging facilities that would be 
required to control conventional pollutants under the three proposed 
options. For BCT, EPA evaluated the reasonableness of BCT candidate 
technologies--those that remove more conventional pollutants than BPT--
by applying a two-part cost test. The two-part ``cost reasonableness'' 
test requires: (1) The cost per pound of conventional pollutant removed 
by dischargers in upgrading from BPT limits to the candidate BCT option 
must be less than the cost per pound of conventional pollutant removal 
by upgrading POTWs from secondary treatment to advanced secondary 
treatment (``the POTW test''); and (2) an assessment of industry costs 
per pound removed in upgrading from BPT to BCT relative to the costs 
per pound removed in going from no treatment to BPT, followed by a 
comparison of that ratio to the analogous ratio for POTWs (``the 
industry cost effectiveness test''). The industry ratio must be less 
than the POTW ratio to pass the test.
    The proposed rule would also revise BAT for non-conventional 
pollutants (nitrogen and phosphorus). EPA assessed the economic 
achievability of BAT for all direct and indirect facilities that would 
have requirements for non-conventional pollutants under the proposed 
options. In developing ELGs reflecting BAT, and as required by CWA 
section 301(b)(2)(A) (33 U.S.C. 1311(b)(2)(A)), EPA evaluates the 
economic achievability of the regulatory options to assess the impacts 
of applying the limitations and standards to the industry as a whole, 
which typically includes an assessment of incremental facility closures 
attributable to a regulatory option. As described in more detail below, 
this proposed ELG is expected to result in incremental costs when 
compared to baseline operations for many facilities. The cost and 
economic impact analysis for this proposed rulemaking focuses on 
understanding the magnitude and distribution of compliance costs across 
the industry and the broader market impacts. EPA used indicators to 
assess the impacts of the three regulatory options on the MPP industry. 
EPA considered the total cost to industry and change in the number and 
capacity of specific facilities expected to close under the proposed 
option, as well as the other options considered, compared to baseline. 
EPA also analyzed the ratio of compliance costs to revenue to see how 
the three options would change the number of plants and their owning 
entities that exceed thresholds indicating potential financial strain. 
In addition to the analyses supporting the economic achievability of 
the regulatory options, EPA conducted other analyses to (1) 
characterize other potential impacts of the regulatory options (e.g., 
on market prices) and (2) to meet the requirements of E.O.s or other 
statutes (e.g., E.O. 12866, Regulatory Flexibility Act, Unfunded 
Mandates Reform Act).

A. BPT Wholly Disproportionate Cost Test

    EPA estimated facility-specific costs and loads for two levels of 
treatment technology reflected in the regulatory options developed. The 
first level of treatment was the use of DAF technology. This level of 
technology is already in place for direct discharging facilities 
reflecting the existing rule BPT, BCT and BAT requirements but would be 
a new requirement for indirect discharging facilities. The CWA requires 
that the EPA consider ``the total cost of application of technology in 
relation to the effluent reduction benefits to be achieved from such 
application,'' and these costs should not be wholly disproportionate to 
the corresponding effluent reduction benefits. As the U.S. Court of 
Appeals for the Fifth Circuit stated, ``The courts of appeal have 
consistently held that Congress intended section 304(b) to give the EPA 
broad discretion in considering the cost of pollution abatement in 
relation to its benefits and to preclude the EPA from giving the cost 
of compliance primary importance'' (Chemical Manufacturers Assn. v. 
U.S. EPA, 870 F.2d 177, 204, (5th Cir. 1989)).
    Table VIII-1 presents the annualized after-tax technology costs and 
associated pollutant load reductions for individual subcategories of 
facilities and the industry as a whole. Although BPT applies to both 
conventional and nonconventional pollutants, DAF technology is 
primarily employed to address conventional pollutants, so only 
conventional pollutant reductions are shown. Load reductions reflect 
the change in pollutants being discharged from regulated facilities to 
their receiving POTWs. The table demonstrates that under BPT, there 
would be significant reductions in conventional pollutant loading for 
each subcategory and the industry as a

[[Page 4496]]

whole, across all three options. Based on these results, EPA proposes 
to find that BPT costs for conventional pollutant reductions under the 
preferred Option 1 are not wholly disproportionate to the corresponding 
effluent reduction benefits. EPA also solicits comment on whether the 
BPT costs of conventional pollutant reductions under regulatory Options 
2 and 3, as reflected in the table below, are also not wholly 
disproportionate to the effluent reduction benefits.

                                                                                          Table VIII-1
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Total
                                                                              annualized
                                                                              BPT costs      Oil &                                  Total        Oil &                                  Total
                Rule option                          Sub- categories             \21\        grease        BOD          TSS       pollutants     grease        BOD          TSS       pollutants
                                                                              (millions
                                                                              of $2022)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       BPT Reductions (M lbs/yr)
                                                                        BPT Ratio lbs/$
                                                                                         -------------------------------------------------------------------------------------------------------
Option 1...................................  A-D...........................        $2.00            3            7            3           13        $0.63        $0.31        $0.65        $0.16
                                             F-I...........................         2.46            6            0            0            6         0.43        18.15        36.31         0.41
                                             J.............................         0.74            0            2            1            3         2.91         0.42         0.83         0.26
                                             K.............................         7.08            3           61          100          164         2.65         0.12         0.07         0.04
                                             L.............................         1.66            0            8           13           22         4.60         0.20         0.12         0.08
                                                                                         -------------------------------------------------------------------------------------------------------
                                                All........................        13.93           12           77          118          207         1.14         0.18         0.12         0.07
Option 2...................................  A-D...........................         2.00            3            7            3           13         0.63         0.31         0.65         0.16
                                             F-I...........................         2.46            6            0            0            6         0.43        18.15        36.31         0.41
                                             J.............................         0.74            0            2            1            3         2.91         0.42         0.83         0.26
                                             K.............................         7.08            3           61          100          164         2.65         0.12         0.07         0.04
                                             L.............................         1.66            0            8           13           22         4.60         0.20         0.12         0.08
                                                                                         -------------------------------------------------------------------------------------------------------
                                                All........................        13.93           12           77          118          207         1.14         0.18         0.12         0.07
Option 3...................................  A-D...........................        15.76            7           14            7           28         2.25         1.10         2.32         0.56
                                             F-I...........................         6.89           11            0            0           11         0.64        27.30        54.60         0.62
                                             J.............................         0.79            0            2            1            3         3.10         0.45         0.88         0.27
                                             K.............................         7.75            3           63          104          170         2.78         0.12         0.07         0.05
                                             L.............................         1.66            0            8           13           22         4.60         0.20         0.12         0.08
                                                                            --------------------------------------------------------------------------------------------------------------------
                                                All........................        32.84           21           88          126          234         1.55         0.37         0.26         0.14
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

B. BCT Cost Test

    In July 1986, EPA explained how it developed its methodology for 
setting effluent limitations based on BCT (51 FR 24974). EPA evaluates 
the reasonableness of BCT candidate technologies--those that remove 
more conventional pollutants than BPT--by applying a two-part cost 
test: a POTW test and an industry cost-effectiveness test.
---------------------------------------------------------------------------

    \21\ All BPT and BAT costs were annualized using the weighted 
average cost of capital (WACC) for facilities. The WACC was derived 
based on facility responses to Industry Survey. See Section 5.2.3 of 
the Regulatory Impact Analysis for a detailed explanation of how the 
WACC was derived.
---------------------------------------------------------------------------

    EPA first calculates the cost per pound of conventional pollutant 
removed by industrial dischargers in upgrading from BPT to a BCT 
candidate technology, and then compares this cost to the cost per pound 
of conventional pollutants removed in upgrading POTWs to advanced 
secondary treatment (i.e., ``the POTW test''). The upgrade cost to 
industry must be less than the POTW benchmark of $0.25 per pound (in 
1976 dollars) or $1.48 per pound (in 2022 dollars). In the industry 
cost-effectiveness test, the ratio of the cost per pound to go from BPT 
to BCT divided by the cost per pound to go from raw wastewater to BPT 
for the industry must be less than 1.29 (that is, the cost increase 
must be less than 29 percent).
    For purposes of this analysis, for the preferred Option 1, EPA 
compared the cost of upgrading from the candidate BPT (based on screens 
followed with DAF technology for 720 large indirect facilities) to BCT 
(based on biological treatment to achieve full denitrification and 
chemical precipitation with filtration as described for BAT in Section 
VII C.1). The cost for these 719 facilities to upgrade from candidate 
BPT to candidate BCT would range from $0.26 to $1.32 per pound of 
pollutant removed depending on the subcategory. Option 2 involves the 
same 719 facilities receiving conventional pollutant removal 
technology; thus, the cost and results of this test would be the same 
as Option 1. Option 3 would require 1,485 indirect facilities to 
implement conventional pollutant removal technology, and the cost for 
these facilities to upgrade from candidate BPT to candidate BCT would 
range from $0.30 to $1.03 per pound of pollutant removed depending on 
the subcategory. The section 9 of the TDD provides more details on the 
calculations of the BCT cost tests.
    In developing BCT limits, EPA considered whether there are 
technologies that achieve greater removals of conventional pollutants 
than the candidate for BPT, and whether those technologies are cost-
reasonable according to the prescribed BCT tests. For Subcategories A 
through D, F through J, K, and L, EPA identified technologies that can 
achieve greater removals of conventional pollutants than the candidate 
BPT standards; however, this technology is full treatment (based on 
screening/grit removal, DAF, anaerobic lagoon, biological treatment, 
chemical phosphorus removal, sand filter, and solids handling), and EPA 
proposes to find that it does not pass the BCT cost test under any of 
the proposed options. Furthermore, since these limits are for indirect 
dischargers that send their wastewater to POTWs, and POTWs are designed 
to remove BOD, TSS, and oil & grease, EPA considers screens with DAF 
treatment an appropriate pretreatment technology for PSES/PSNS. 
Accordingly, EPA proposes to establish BCT effluent limitations equal 
to the candidate BPT limitations based on screens followed with DAF for 
indirect dischargers in these subcategories.

C. Economic Achievability Analysis for BAT

    For the second level of treatment for toxic and non-conventional 
pollutants, direct dischargers must meet BAT, and

[[Page 4497]]

indirect dischargers must meet pretreatment standards based on BAT. In 
setting BAT, EPA is required to evaluate costs and determine if they 
can be reasonably borne by the industry. EPA considers not only 
technology cost but also engineering and process changes as well as 
energy requirements of implementing the new technology. The cost 
estimates developed by EPA for the technologies considered for BPT, 
BCT, and BAT incorporate these factors as additional cost elements.
1. Facility Closure Analysis (BAT)
    Estimates of possible facility closures are the traditional way EPA 
considers economic achievability. A discounted cash-flow analysis was 
performed on detailed questionnaire respondents and the results were 
then extrapolated to all facilities incurring costs under each option. 
For more information on this approach, see the RIA. Table VIII-2 shows 
the number of facilities with BAT costs and the estimated possible 
closures by production subcategory for each option. The table also 
shows the relative percentage of facilities with costs and total 
discharging facilities that are estimated to close. EPA estimated that 
the preferred Option 1 would have only a single possible closure and 
proposes to find that this would be considered economically achievable 
under any reasonable measure of impacts. Under Options 2 and 3 EPA 
estimated that there are 19 and 29 total possible closures, 
respectively. This equates to 7 percent of the 269 facilities with BAT 
costs under Option 2, and 3 percent of the 913 facilities with BAT 
costs under Option 3. However, to understand the economic impact of 
these options on the industry it is necessary to consider these 
possible closures within the context of the total number of industry 
facilities. Neither Options 2 nor 3 have estimated potential closures 
that exceed 1 percent of the 3,897 discharging facilities. If the zero 
discharge facilities were also factored in, these percentages would be 
smaller still. These two options were developed to limit BAT 
requirements to just the larger discharging facilities that tend to be 
better able to afford the nutrient reduction technologies. EPA solicits 
comment on whether Options 2 and 3 would be economically achievable for 
the industry as a whole, based on the level of possible facility 
closures reflected in the table below.

                                     Table VIII-2--Possible Facility Closures due to BAT Costs by Regulatory Option
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     Production sub-categories
                                                         --------------------------------------------------------------------------------      Total
                       Rule option                                                                            Poultry                       facilities
                                                            Meat first     Meat further    Poultry first      further        Rendering
--------------------------------------------------------------------------------------------------------------------------------------------------------
1:
    Facilities with BAT Costs...........................              30               9              64               5              18             126
    Estimated Possible Closures.........................               0               0               1               0               0               1
    % of facilities with costs..........................             0.0             0.0             1.6             0.0             0.0             0.8
    % of all Discharging facilities.....................             0.0             0.0             0.0             0.0             0.0             0.0
2:
    Facilities with BAT Costs...........................              85               9             142               5              28             269
    Estimated Possible Closures.........................              10               0               8               0               1              19
    % of facilities with costs..........................            11.8             0.0             5.6             0.0             3.6             7.1
    % of all Discharging facilities.....................             0.3             0.0             0.2             0.0             0.0             0.5
3:
    Facilities with BAT Costs...........................             137             371             190             100             115             913
    Estimated Possible Closures.........................              11               3              11               1               3              29
    % of facilities with costs..........................             8.0             0.8             5.8             1.0             2.6             3.2
    % of all Discharging facilities.....................             0.3             0.1             0.3             0.0             0.1             0.7
--------------------------------------------------------------------------------------------------------------------------------------------------------

    To assess the economic achievability of BAT technologies, EPA also 
compared facility level costs to estimated revenue to screen for 
potential financial impacts to facilities. EPA considered total 
facility costs relative to industry sales, the number of facilities 
that have costs greater than 1 percent and 3 percent of revenue, and 
the number of potential facility closures. The next level of control 
beyond BPT is not feasible for facilities unless the BPT technology is 
in place, so EPA conservatively assessed both the costs of BAT assuming 
BPT is in place, called ``incremental,'' and the costs including both 
costs to meet revised BPT and the revised BAT, called ``additive'' 
costs of BAT technologies. Table VIII-3 shows the incremental and 
additive BAT costs for each of the three options and the percentage of 
annual industry sales these costs comprise.

                        Table VIII-3--Total Annualized After-Tax Compliance Costs for BAT
----------------------------------------------------------------------------------------------------------------
                                              Incremental BAT                      BPT + BAT (additive)
                                 -------------------------------------------------------------------------------
        Regulatory option                              % Industry annual                       % Industry annual
                                   (millions, 2022$)        sales *        (millions, 2022$)        sales *
----------------------------------------------------------------------------------------------------------------
Option 1........................             $196.39                0.07             $196.39                0.07
Option 2........................              576.49                0.22              583.51                0.22
Option 3........................              962.78                0.36              981.54                0.37
----------------------------------------------------------------------------------------------------------------
* Based on U.S. Census Annual Survey of Manufacturers, 2021 sales for NAICS 3116.

    The difference between the incremental and Additive (BPT+BAT) costs 
are small, which reflects the relatively small cost of the DAF 
technology compared to the more expensive nutrient removal 
technologies. For assessing economic achievability, EPA is considering 
the additive BAT costs. Table VIII-4 shows these full BAT costs broken 
out by production sub-categories.

[[Page 4498]]



         Table VIII-4--Total Annualized After-Tax BAT Costs by Sub-Category for Rule Options in (2022$)
----------------------------------------------------------------------------------------------------------------
                     Production sub-category                         Option 1        Option 2        Option 3
----------------------------------------------------------------------------------------------------------------
Meat First......................................................          $62.47         $226.76         $255.60
Meat Further....................................................            3.73            3.73          204.91
Poultry First...................................................          114.00          324.51          381.48
Poultry Further.................................................            6.06            6.06           72.21
Renderer........................................................           10.13           22.44           67.32
                                                                 -----------------------------------------------
    Total Facility BAT costs....................................          196.39          583.51          981.53
----------------------------------------------------------------------------------------------------------------

2. BAT Cost-to-Revenue Analyses
    Under the Agency's Regulatory Flexibility Act Guidance for 
assessing impacts of EPA actions on small entities (Final Guidance for 
EPA Rulewriters: Regulatory Flexibility Act as Amended by the Small 
Business Regulatory Enforcement Fairness Act. USEPA 2006), facilities 
incurring costs below one percent of revenue are unlikely to face 
economic impacts, while facilities with costs between 1 percent and 3 
percent of revenue have a higher chance of facing economic impacts, and 
facilities incurring costs above three percent of revenue have a still 
higher probability of economic impact.
    Tables VIII-5, VIII-6, and VIII-7 show the number of facilities 
that have BAT CTR ratios that fall into the three above mentioned 
categories for each option. To provide context for these numbers, the 
tables display the percentage of facilities that fall into each group, 
by all facilities incurring cost and by all discharging facilities. For 
all options, the percentage of discharging facilities with a higher 
probability of financial impacts is less than one. When considering 
subcategories, all production types have less than one percent of 
discharging facilities in the higher-probability category, except for 
poultry slaughter which has 2.1 percent and 2.5 percent of discharging 
facilities in this category under options 2 and 3 respectively.

                                                   Table VIII-5--Facility-Level BAT After-Tax Compliance Cost-to-Revenue Analysis for Option 1
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                          Number of facilities  with a ratio     Percentage of facilities        Percent of all discharging
                                                                 Facilities  Facilities                   of                    with BAT costs with ratio        facilities with a ratio of
                         Sub-categories                             that      with BAT  --------------------------------------              of             -------------------------------------
                                                                  discharge     costs                                         -----------------------------
                                                                                            0%      <1%    >=1 to 3%    >=3%     <1%    >=1 to 3%    >=3%      0%      <1%    >=1 to 3%    >=3%
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Meat First.....................................................         556          30      526       30          0        0    100.0        0.0      0.0     94.6      5.4        0.0      0.0
Meat Further...................................................       2,770           9    2,761        9          0        0    100.0        0.0      0.0     99.7      0.3        0.0      0.0
Poultry First..................................................         238          64      174       61          2        1     95.3        3.1      1.6     73.1     25.6        0.8      0.4
Poultry Further................................................         175           5      170        3          2        0     60.0       40.0      0.0     97.1      1.7        1.1      0.0
Rendering......................................................         140          18      122       17          1        0     94.4        5.6      0.0     87.1     12.1        0.7      0.0
                                                                --------------------------------------------------------------------------------------------------------------------------------
    Total Number...............................................       3,879         126    3,753      120          5        1     95.2        4.0      0.8     96.8      3.1        0.1      0.0
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                   Table VIII-6--Facility-Level BAT After-Tax Compliance Cost-to-Revenue Analysis for Option 2
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                          Number of facilities  with a ratio     Percentage of facilities        Percent of all discharging
                                                                 Facilities  Facilities                   of                    with BAT costs with ratio        facilities with a ratio of
                         Sub-categories                             that      with BAT  --------------------------------------              of             -------------------------------------
                                                                  discharge     costs                                         -----------------------------
                                                                                            0%      <1%    >=1 to 3%    >=3%     <1%    >=1 to 3%    >=3%      0%      <1%    >=1 to 3%    >=3%
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Meat First.....................................................         556          85      471       85          0        0    100.0        0.0      0.0     84.7     15.3        0.0      0.0
Meat Further...................................................       2,770           9    2,761        9          0        0    100.0        0.0      0.0     99.7      0.3        0.0      0.0
Poultry First..................................................         238         142       96      130          7        5     91.5        4.9      3.5     40.3     54.6        2.9      2.1
Poultry Further................................................         175           5      170        3          2        0     60.0       40.0      0.0     97.1      1.7        1.1      0.0
Rendering......................................................         140          28      112       26          2        0     92.9        7.1      0.0     80.0     18.6        1.4      0.0
                                                                --------------------------------------------------------------------------------------------------------------------------------
    Total Number...............................................       3,879         269    3,610      253         11        5     94.1        4.1      1.9     93.1      6.5        0.3      0.1
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                   Table VIII-7--Facility-Level BAT After-Tax Compliance Cost-to-Revenue Analysis for Option 3
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                          Number of facilities  with a ratio     Percentage of facilities        Percent of all discharging
                                                                 Facilities  Facilities                   of                    with BAT costs with ratio        facilities with a ratio of
                         Sub-categories                             that      with BAT  --------------------------------------              of             -------------------------------------
                                                                  discharge     costs                                         -----------------------------
                                                                                            0%      <1%    >=1 to 3%    >=3%     <1%    >=1 to 3%    >=3%      0%      <1%    >=1 to 3%    >=3%
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Meat First.....................................................         556         137      419      134          1        2     97.8        0.7      1.5     75.4     24.1        0.2      0.4
Meat Further...................................................       2,770         371    2,399      368          1        2     99.2        0.3      0.5     86.6     13.3        0.0      0.1
Poultry First..................................................         238         190       48      173         11        6     91.1        5.8      3.2     20.2     72.7        4.6      2.5
Poultry Further................................................         175         100       75       97          2        1     97.0        2.0      1.0     42.9     55.4        1.1      0.6
Rendering......................................................         140         115       25      103         12        0     89.6       10.4      0.0     17.9     73.6        8.6      0.0
                                                                --------------------------------------------------------------------------------------------------------------------------------
    Total Number...............................................       3,879         913    2,966      875         27       11     95.8        3.0      1.2     76.5     22.6        0.7      0.3
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    The CTR analysis shows that under Option 1 the BAT costs would be 
less than 1 pe

[…truncated; see source link]
Indexed from Federal Register on January 23, 2024.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.