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Mr. Juston Smithers -5- E 5- February 11, 2015 The ash filtrate that is collected from customer facilities is subject to hazardous waste regulation while it is in California. Although there are recycling exemptions for wastes that are recycled to make commercial products, these exemptions are not applicable to the ash because it is reclaimed (processed) at an offsite facility. The point of hazardous waste generation is at the customer facility, and any activities that occur after the point of generation, including accumulation, storage, transportation, or recycling activities, are subject to hazardous waste regulation if conducted in California. Once the ash is shipped beyond California state boundaries, it is no longer subject to hazardous waste regulation. Hazardous waste generators are required to ship wastes to destination facilities that are permitted to receive the waste. If the destination facility is in California, it must be a permitted as a treatment, storage, and disposal (TSD) facility. This would be applicable if the ash were shipped to the Red Fox facility in Oakland, except if the ash were stored at the Red Fox facility under a temporary (6 to 10 days) transportation exemption, subject to certain zoning restrictions.4 The process for obtaining a TSD facility permit is lengthy and expensive, and is not expected to be economically feasible for this type of operation. If the destination facility is out of state, the permit does not necessarily have to be a hazardous waste permit, and can instead be any permit that authorizes storage or recycling of the ash, as applicable. Because California regulations require generators to obtain a signature from the destination facility, the destination facility must sign a copy of the manifest. In general, destination facilities outside of California send the manifest directly to the California Department of Toxics Substances Control (DTSC). However, in accordance with 22 CCR 66262.23, if the destination facility is not a permitted hazardous waste facility, the signed manifest should be returned to the waste generator, who is then responsible for sending the signed manifest to DTSC. Based on our discussions, we understand that the ash may potentially be shipped directly from the customer facility to the North Carolina facility, or it may potentially be shipped to a storage facility in Arizona or Nevada, where it would be aggregated until the quantity is large enough to send to the 4 Pursuant to 22 CCR §66263.18, a transfer facility (defined in HSC §25123.3(a)(3) to include loading docks, parking areas, storage areas, and other similar areas where shipments of hazardous waste are held during the normal course of transportation) is not subject to standards or interim standards for hazardous waste transfer, treatment, storage and disposal facilities requirements, recyclable materials requirements, or the hazardous waste permit program requirements for waste storage when, during the course of transportation, the following are met: a. Manifested shipments of packaged or containerized wastes meeting the packaging requirements of 22 CCR 66262.30 are only transferred from one vehicle to another b. All packages or containers used in the transfer are the same packages or containers used for transporting the hazardous waste and no additional handling occurs. c. Hazardous waste is held at a transfer facility as follows: i. Hazardous waste is held for 10 days or less if the transfer facility is located in an area zoned for industrial or agricultural land use; ii. Hazardous waste is held for six days or less If the transfer facility is located in an area zoned for agricultural use and the transfer facility commenced initial operations before January 1, 2005 and is located within 500 feet of a structure identified in HSC §25232(b)(1)(A-E); or iii. Hazardous waste is held for six days or less if the transfer facility is located on land zoned by the local planning authority for other land use. The transfer facility exemption is not allowed if the transfer facility is located on a property zoned for residential use or if the transfer facility commenced initial operations on or after January0 feet of a residence, a hospital, a school, a day care center, and any permaneWcu'eu0*165o y n other than those used for industrial purposes. V 0 3 2015' ENVIRONMENTAL HFAITw nC0AD'r®.P&'—