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Photograph 10: <br /> HAZARDOUS <br /> WASTE STORAGE <br /> AUTHORIZED <br /> PERSONNEL ONLY <br /> OBSERVATION NO. S: Water, dirt, debris and accumulated liquid solution were observed in <br /> two open, unlabeled containers. The water/solution accumulated in the containers had a pH of <br /> approximately 10. Reeulatory Area of Concern:A waste generator must determine if the waste <br /> generated is hazardous waste. 22 CCR§66262.11 [40 CFR§262.111. If the container is <br /> accumulating hazardous waste the container must be kept closed, except when adding or <br /> removing waste. 22 CCR§§66262.34(a)(1)(A); 66265.173(a) [40 CFR§§262.34(a)(1); <br /> 66265.173(a)]. Additionally the container must be marked and labeled. See Observation 5, <br /> Regulatory Area of Concern above and 22 CCR§§66262.34(a)(2); 66262.34(a)(3); 66262.340 <br /> [40 CFR§§262.34(a)(2); 262.34(a)(3)1. <br /> RESPONSE: The Company disputes the conclusions reached by U.S. EPA. The material in the <br /> container had yet to be discarded and therefore no waste had yet been generated. Consistent with <br /> Sierra's operating practice the material is accumulated so that it may be reprocessed to capture <br /> residual chemicals for products. When the liquid is reprocessed, remaining residual is considered <br /> a waste, and is profiled at that time. Because the accumulated liquid had yet to be discarded, the <br /> container and labeling requirements are inapplicable. Since the inspection, the residual material <br /> that could not be reprocessed has been profiled as a hazardous waste and treated accordingly, and <br /> the facility has pre-made labels on hand. See Photograph 11, below. Moreover, to address the <br /> concern of U.S. EPA, Sierra will label any containers of accumulated liquid as"in process"to <br /> clarify the status of the material. <br /> 9 <br /> 26731756v.9 <br />