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RCRA and the Retail World U.S. EPA and Walmart Meeting August 2011
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RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

Apr 03, 2018

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Page 1: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

RCRA and the Retail World

U.S. EPA and Walmart Meeting

August 2011

Page 2: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

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• Retail Sector approximately 8% of U.S. GDP

– Consumer Products throughout economy

• Walmart is the world’s largest retailer

– Our mission is to save people money, so

they can live better

– Serve customers more than 200 million

times/week

– 9,000 retail units in 15 countries

– Employ more than 2 million associates

worldwide

– 4,300+ domestic stores/clubs/pharmacies

and other facilities

– 3rd largest pharmacy

– 3% of all corporate income taxes that were

collected by the U.S. Treasury

Walmart Confidential Business Information

About Walmart and the Retail World

Page 3: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

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RCRA Regulation of Consumer Goods

Walmart Confidential Business Information

* Approximates

0.5% of 1.7 billion

regulated items

sold are managed

as Hazwaste by

Walmart

(10 Million)

100 Billion Items

Sold to Consumers

0.01% managed as

Hazwaste by Walmart

(10 Million)

1.7% of 100 Billion

Items Sold are RCRA

regulated if waste

(1.7 Billion)

(HHW Exemption)

Solid Waste

Hazardous

Waste

Page 4: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

4

• Pharmacy Universal Waste Rule

• Consumables and Personal Care products

• Aerosols

• Electronics

• Waste Characterization

• Reverse Distribution

• Overbagging FIFRA Pesticides

Walmart Confidential Business Information

Meeting Topics

Page 5: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

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A fundamental question underlies most of the

topics we are going to discuss today:

When does a consumer product become a solid

waste in the retail sector, especially for reverse

distribution systems?

The little guidance that exists is often contradictory.

Regulations should have the same meaning

regardless of product type, yet there is no discernable

common logic or principle for retailers to follow. EPA

seems to be taking a compartmentalized approach to

the question, answering it differently based on the

product at issue. Yet, at the same time, EPA and

States have taken aggressive enforcement actions

targeting major retailers.

Walmart Confidential Business Information

Consumer Products and Solid Waste

Page 6: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

6 Walmart Confidential Business Information

Manufacturer

Data

Genco / CaptialReturns

GencoSystem

Store/Club

Pharmacy Dispostion

Return to Genco/Capital

Returns

Walmart Pharmacy Hazardous Waste Program

Hazardous

Identification

Loose / Unidentified Pills

Damaged / Leaking

Manage as Hazardous

Waste

Valuable

+

Viable

Nationwide Reverse Distribution Program Model

Page 7: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

7 Walmart Confidential Business Information

EPA proposed Universal Waste Rule –73 Fed. Reg. 73520 (Dec. 2, 2008)

“Facilitate better management of pharmaceutical

wastes…”

“Ensures that these hazardous pharmaceutical

wastes are properly disposed of and treated as

hazardous wastes.”

“…opportunity for all pharmaceutical

wastes, hazardous or not, to be managed as a

single waste stream.”

“…reverse distribution system for

pharmaceuticals helps ensure that unused and

expired pharmaceuticals do not get diverted to

inappropriate uses, and that the returned

pharmaceuticals, are managed appropriately.”

Pharmaceutical Universal Waste Rule

Page 8: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

8 Walmart Confidential Business Information

. . .any chemical product. . . that is intended to affect the

structure or function of the body in man or other animals.

Pharmaceutical UWR (Consumables and Personal Care)

This proposed definition is meant to

include, but is not limited to, pills or

tablets, medicinal gums or lozenges,

medicinal liquids, ointments and lotions,

intravenous (IV) or other compounded

solutions, chemotherapy drugs, vaccines,

allergenics, medicinal shampoos,

antiseptics and medicinal dermal patches

. . .any chemical product. . . that is intended for use in the

diagnosis, cure, mitigation, treatment, or prevention of

disease or injury in man or other animals.

“Well, if it goes in your coffee, it is not hazardous waste.”

President Obama, Wall Street Journal, Jan. 18, 2011 at A17.

Page 9: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

9 Walmart Confidential Business Information

Pharmaceutical Universal Waste Rule

•Provide clarification on management of empty warfarin

bottles:

(P001) Warfarin & salts, when present at

concentrations greater than 0.3%

• What/When does present mean?

• If 0.3% present applies to residue, then should

count the residue weight only.

• If 0.3% present applies to waste item (i.e.

container and residue) then U248.

• Analysis shows ≈ 1 mg residue in container

• If 0.3% present applied to residue, but using container

weight, only takes 65 bottles to become LQG !!!

Page 10: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

10 Walmart Confidential Business Information

• Aerosol contribution to Walmart’s hazardous waste stream

• 45% (item basis)

• 36% (weight) or 4.3 million lbs in 2010

•Approximately 20% contain non-ignitable propellant and non-hazardous product

800,000 lbs of hazardous waste eliminated if deemed non-reactive

• Approximately 77% have ignitable propellant and non-hazardous product

40 CFR 261.2(c)(2)(ii) – Burning fuels for energy recovery

3.3 million lbs of hazardous waste eliminated if fuels recovered

Potential to legitimately recycle 97% of aerosols, leaving only 3% of aerosols as

hazardous due to hazardous contents.

Aerosols

Page 11: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

11 Walmart Confidential Business Information

• Definition of Reactive in 40 CFR 261.23(6)

It is capable of detonation or explosive reaction if it is subjected

to a strong initiating source or if heated under confinement.

Reddi-Wip Example (from MSDS)

Exposure of cans to temperatures over 120°F may cause bursting.

Pressurized containers may explode in heat and should be removed

from fire if possible.

Waste Disposal Method: Contents of can under pressure, do not

puncture or incinerate. Dispose of cans in accordance with local or

federal laws and regulations.

Aerosols

• EPA unable to determine if aerosols are reactive

(RO-11782 / RO11806)

Page 12: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

12 Walmart Confidential Business Information

• EPA determined that .50 caliber bullets are not reactive

(RO-13712)

The Agency has maintained that small arms

ammunition intended for disposal, up to and including

.50 caliber, is not reactive within the meaning of 40

CFR 261.23(a)(6).

Olin/Winchester Example (from MSDS)

CAUTION! EXPLOSIVE. KEEP AWAY FROM HEAT. DO

NOT SUBJECT TO MECHANICAL SHOCK.

Risk of explosion by shock, friction, fire or other sources of

ignition

Aerosols

Page 13: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

13 Walmart Confidential Business Information

Electronics Management

What are the rules for electronics?

Confusion everywhere!

• What are electronic wastes?

• When are they wastes?

• Are they hazardous waste?

•Some are exempt when recycled

• CRTs - 40 CFR 261.4(a)(22)

• Circuit Boards - 40 CFR 261.4(a)(14)

• Unused CCPs – 40 CFR 261.2(c)(3)

• RO - 14012 (1996)

• RO - 11726 (1993)

• States classify some as universal waste (CEDs)

•No consistency and non-CEDs are

more troubling

• Current exemptions and State UW rules only tip of iceberg

Page 14: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

14 Walmart Confidential Business Information

Electronics Management (Retail is more than TVs, laptops, and cell phones)

Page 15: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

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•EPA s Regulatory Program for “E-Waste” (PPT on EPA website)

Robert Tonetti, EPA Office of Solid Waste (Oct 2007)

Because obsolete electronics are often capable of reuse, they are not considered

wastes until a decision is made that they cannot or will not be reused. . . Such

decisions are made by persons with specialized expertise (unless destruction

specified) i.e. resellers & recyclers

This allows collection to occur without regard to waste rules.

Walmart Confidential Business Information

Electronics Management

• RCRA Regulations for Electronic Materials that are Reused or Resold (RO –

14668)

While used electronics sent to a reseller are not solid wastes, used electronics sent to a

recycler could, under certain circumstances, be considered spent materials undergoing

reclamation and could therefore be solid wastes. However, EPA believes that in some

instances, electronics sent for recycling do not resemble spent materials.

• Proposed DSW rule change

• National Strategy for Electronics Stewardship

Page 16: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

16 Walmart Confidential Business Information

The Confusing World of Characterizing Consumer Products

A typical Walmart Supercenter contains over 500,000 individual items (SKUs)

•Are all retailers characterizing wastes?

• Can they?

•If so, how?

• MSDS – not required to identify

as HW or give full information

• TCLP – On everything?

• 3rd Party – expense

•If not, “major/major” RCRA violation?

•Creates unlevel playing field

Page 17: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

17 Walmart Confidential Business Information

• Generator Status

•Retailers are “Episodic” by nature.

• Customer returns or damages in store

or transportation.

•Status is always determined after the fact.

• Averaging?

Waste Characterization Issues

Facility Jan Feb March April May June July Aug Sept Oct Nov Dec

Supercenter 57 102 162 305 171 149 222 92 174 85 92 70

Supercenter 113 141 106 263 254 443 145 95 262 157 127 82

Supercenter 98 147 231 89 84 149 151 78 282 158 266 3

Page 18: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

18 Walmart Confidential Business Information

• What is “the waste”?

• What is proper characterization

for typical retail multi-pack

products?

Waste Characterization Issues

Page 19: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

19 Walmart Confidential Business Information

Supplier

DataWERCs

HazTrackerStore/Club

R-Log Return Center

RTV

Donation

Liquidation

Reverse Distribution

MSDS

Formulation Data

Hazardous

Identification

HazWaste

Item Tracking

HazWaste

Item Tracking

Walmart Reverse Distribution Process Flow

Page 20: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

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Walmart Reverse Distribution Operations

•Six Return Centers across the country

(SC, TX, NY, AR, IN, NV)

•Waste Management, Inc. now operates Sortation Room

and manages hazardous waste

Walmart Confidential Business Information

Reverse Distribution

Page 21: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

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R-Log System tracks disposition of products entering Return Centers

• 98%+ receive credit

• 95% non-waste

• Less than 0.1% of item dispositions is hazardous waste

Dispositions tracked include:

• Return to Vendor

• Charity

• Resale (Liquidation)

•Waste

Walmart Confidential Business Information

Reverse Distribution

Page 22: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

22 Walmart Confidential Business Information

When does a consumer product become a solid waste in

the retail sector, especially for reverse distribution systems?

Reverse Distribution

• Retailers want consistency and want to know the rules!

• When/Why does a purple couch become a solid waste for the retailer?• Sold to Customer?

• Returned by Customer?

• Sent by retailer to centralized collection point?

• Returned to the manufacturer?

• Sent by manufacturer to another party?

• Waste-like condition?

• Viable when sent even if thrown away?

• Creditable (resold) even if thrown away?

Page 23: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

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• Walmart to meet with RILA to discuss outcome of this meeting.

• Walmart would like to engage larger retail community in the

dialogue with EPA.

• There is significant interest in these issues within the retail

community and it is growing.

• Participate in any way EPA feels Walmart and other retailers can

help inform decisions related to the issues presented.

• Ask that EPA finalize draft guidance regarding p-listed pharmacy

bottles and address Walmart’s outstanding FIFRA Overbagging

proposal.

• Discuss potential resurrection of Consumer Product Universal

Waste Rule.

Walmart Confidential Business Information

Next Steps

Page 24: RCRA and the Retail World - Retail Industry Leaders ... Documents... · –3rd largest pharmacy ... •Aerosols •Electronics • ... •EPA s Regulatory Program for “E-Waste”

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Thank You!

Walmart Confidential Business Information