MY NAME IS TED FLOOD. I AM VICE PRESIDENT OF BROWNING-FERRIS INDUSTRIES, INC., THE NATION'S LARGEST WASTE SYSTEMS COMPANY WITH OPERATIONS IN 130 CITIES IN 32 STATES, AS WELL AS CANADA AND PUEFTO RICO.

WE HAVE 89 SOLID WASTE SYSTEMS OPERATIONS; NUMEROUS CONTRACTS WITH MUNICIPALITIES SERVING ALL PARTS OF 90 CITIES; WE HAVE 40 SECONDARY-FIBRE RECEPTION CENTERS IN OPERATION, ITH MORE PLANNED; 25 CHEMICAL SERVICES DIVISION LOCATIONS, 5 OF HICH ARE LIQUID-WASTE RECEPTION AND TREATING CENTERS. E WILL HANDLE APPROXIMATELY 12 MILLION TONS OF OUR NATION'S ASTE THIS YEAR; AND OUR RESOURCE RECOVERY DIVISION SUPPLIED ONE MILLION TONS OF PAPER MAKING FIBRE TO THE PAPER MAKING INDUSTRY IN 1973; AND E EXPECT TO HANDLE MORE THAN 1,500,000 TONS IN 1974. WE HAVE ESTABLISHED 5 HAZARDOUS LIQUID-ASTE RECEPTION AND TREATING CENTERS, LOCATED IN HOUSTON, AND PORT ARTHUR, TEXAS, BATON ROUGE, LOUISIANA, MOBILE, ALAPAMA, AND YOUNGSTON, OHIO.

STATEMENT OF WINGERTER E J ACCOMPANIED BY FLOOD T ACCOMPANIED BY GERSHOWITZ H ACCOMPANIED BY HALE S

STATEMENT OF BROWNING FERRIS INDUSTRIES 740718

THE NEED FOR A NATIONAL MATERIALS POLICY

740717

PART 014 OF 28

WINGERTER E J EXECUTIVE DIRECTOR

FLOOD T VICE PRESIDENT, MARKETING

GERSHOWITZ H PRESIDENT

HALE S VICE PRESIDENT, MARKETING

NATIONAL SOLID WASTES MANAGEMENT ASSOCIATION

BROWNING FERRIS INDUSTRIES HOUSTON, TEXAS

WASTE MANAGEMENT OAK BROOK, IL

SCA SERVICES BOSTON, MA

112184

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ATTACHMENT TO 08111950 PARENT DOCUMENT.

WE BELIEVE ACHIEVEMENT OF THE GOALS OF A CLEAN ENVIRONMENT, ACCELERATED USE OF SECONDARY MATERIALS TO CONSERVE VIRGIN RESOURCES, AND ENERGY RECOVERY FROM WASTE TO BE AMONG OUR NATION'S MAJOR AND MOST IMPORTANT PRIORITIES. WE FURTHER PELIEVE, AND STRONGLY RECOMMEND, THAT THE JOINT PUBLIC AND PRIVATE INDUSTRY WORKING RELATIONSHIP BE FURTHER EXPANDED HERE THE EXPERTISE OF ALL INVOLVED CAN BE BROUGHT TO BEAR, BRINGING ABOUT THE DESIRED RESULTS IN THE SHORTEST POSSIBLE TIME.

WE ARE CONCERNED, HOWEVER, WITH THE LIMITED INVOLVEMENT OF PRIVATE ENTERPRISE CONTAINED IN THE BILL. IN LIGHT OF THE FACT THAT PRIVATE INDUSTRY HANDLES 73% OF THE TOTAL SOLID WASTES IN OUR COUNTRY, IT IS VITALLY IMPORTANT THAT ALL-ENCOMPASSING LEGISLATION BE PROMULGATED WITH MORE CONSIDERATION OF THOSE COMPANIESCURRENTLY INVOLVED AND PERFORMING THE MANAGEMENT OF OUR DAILY WASTE STREAM AND RESOURCE RECOVERY.

ACCORDING TO THE U.S. ENVIRONMENTAL PROTECTION AGENCY, THE PRIVATE SECTOR OF THE ASTE SYSTEM FIELD HANDLES 3/4 OF THE DAILY SOLID WASTE STREAM AND HANDLES IT EFFECTIVELY AND EFFICIENTLY. HE COLLECTS, PROCESSES AND DISPOSES OF MORE WASTE EVERY SINGLE DAY THAN MANY EUROPEAN COUNTRIES GENERATE IN A MONTH. BECAUSE OF HIS INNOVATIONS AND TECHNICAL DEVELOPMENT IN THE AREA OF SOLID WASTE COLLECTION, THE PRIVATE WASTE SYSTEMS OPERATOFS' PRODUCTIVE EFFICIENCY VIRTUALLY SUUBSIDIZES THE PRESENT WASTE COLLECTION ECONOMY.

STATEMENT OF WINGERTER E J ACCOMPANIED BY FLOOD T ACCOMPANIED BY GERSHOWITZ H ACCOMPANIED BY HALE S

STATEMENT OF BROWNING FERRIS INDUSTRIES 740718

THE NEED FOR A NATIONAL MATERIALS POLICY

740717

PART 015 OF 28

WINGERTER E J EXECUTIVE DIRECTOR

FLOOD T VICE PRESIDENT, MARKETING

GERSHOWITZ H PRESIDENT

HALE S VICE PRESIDENT, MARKETING

NATIONAL SOLID WASTES MANAGEMENT ASSOCIATION

BROWNING FERRIS INDUSTRIES HOUSTON, TEXAS

WASTE MANAGEMENT OAK BROOK, IL

SCA SERVICES BOSTON, MA

112185

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CORRESPONDENCE

SENATE

ATTACHMENT TO 08111950 PARENT DOCUMENT.

E BELIEVE THE MANDATE SHOULD GO FURTHER TO REQUIRE THAT:R

ATTACHMENT TO 08111950 PARENT DOCUMENT.

IT IS THE PRIVATE OPERATOR WHO HANDLES 73% OF THE NATION'S SOLID WASTE ITH ONLY 34% OF THE NATION'S SOLID ASTE EMPLOYEES. DURING THE PERIOD FROM 1960 TO 1974, THE REAL COST TO THE CONSUMER OF JUST ONE OF THE COLLECTION SERVICES OUR COMPANY PROVIDES IN A TYPICAL OPERATION DECREASED 28 USING 1967 CONSTANT DOLLARS. THAT SAME EXPERTISE AND EFFICIENCY IS NO BEING APPLIED TO RECOVERY OF 'ASTES WITH:

O PAPER SEPARATION CENTERS

O RESOURCE RECOVERY SEPARATION CENTERS

O LIQUID WASTE RECEPTION AND TREATING CENTERS

THIS SAME PRIVATE SECTOR STANDS READY TO MAKE THE FINANCIAL, MANAGERIAL AND TECHNICAL INVESTMENTS NECESSARY TO IMPLEMENT AND OPERATE A NATIONAL RECOVERY PROGRAM. WHAT IS REQUIFED TO ACCELERATE RECOVERY IS NOT FEDERAL FUNDING, BUT A GREATER DEMAND FOR RECOVERED RESOURCES.

E ARE IN ACCORD WITH THE MAJORITY OF THE OBJECTIVES OF SB-3560; HOWEVER, WE FEEL STRONGLY THAT THE FOCAL POINT OF THE BILL SHOULD PLACE EVEN MORE EMPHASIS ON CREATING DEMAND FOR GREATER USE OF RECOVERED RESOURCES FATHER THAN ON BUILDING UNPROVEN RECOVERY SYSTEMS USING TAX REVENUES.

SPECIFICALLY, WE HAVE THE FOLLOWING RECOMMENDATIONS REGARDING SENATE BILL 3560:

1. THE FEDERAL GOVERNMENT NOW IS THE LARGEST SINGLE PURCHASEF OF GOODS IN AMEFICA. WE ARE TOLD ITS PURCHASES RANGE UP TO 30% OF THE GNP. HAVING OUTRIGHT CONTROL OF SO MUCH PURCHASING POER, WE ENDORSE THE MANDATE THAT ALL AGENCIES OF THE U.S. GOVERNMENT PURCHASE COMPETITIVE GOODS EMPLOYING RECOVEFED MATERIALS.

A. ALL SPECIFICATIONS FOR MATERIALS PURCHASED BY THE GOVERNMENT SHOULD PE PROMPTLY REVIEWED AND REVISED AND NE SPECIFICATIONS WRITTEN TO PERMIT THE INCLUSION OF RECOVERED MATERIALS WHEREVER POSSIBLE.

B. AUTHORIZE EXPENDITURES NECESSARY FOR THE EPA TO CREATE AND IMPLEMENT A MASSIVE PUBLIC EDUCATION PROGRAM ON THE DESIRAPILITY OF RECYCLED PRODUCTS AND THEIR COMPETITIVE EQUALITY ITH PRODUCTS MANUFACTURED SOLELY FROM VIRGIN MATERIALS.

TO THE EXTENT FEDERAL FUNDS ARE TO BE APPROPRIATED IN THIS AREA, USE THEM TO IMPLEMENT THE METHODS OUTLINED APOVE. WE OPPOSE THE SYSTEM OF GRANTS AUTHORIZED BY SECTION 217(B) AS AN UNNECESSARY EXPENDITURE OF FUNDS.

II. OUR SECOND AREA OF CONCERN DEALS WITH FEDERAL STANDARDS RELATING TO HAZARDOUS ASTE. WE BELIEVE GREATER ENFORCEMENT OF EXISTING REGULATIONS WILL ACCELERATE THE TIME WHEN E ATTAIN OUR NATIONAL ANTI-POLLUTION GOALS. WE ALSO BELIEVE THE ROLE OF THE FEDERAL GOVERNMENT SHOULD BE THAT OF PROMULGATING STANDARDS THAT ESTABLISH DESIRED ENVIRONMENTAL GOALS AND ASSURING ENFORCEMENT. THIS IS THE MEANINGFUL STIMULUS NECESSARY TO ASSURE THAT THOSE GOALS ARE MET. THERE IS NO DOUBT THAT E NEED UNIFORM STANDARDS, NOT MINIMUMS, RELATING TO HAZARDOUS ASTE AND THAT ENFORCEMENT OF THOSE STANDARDS IS THE NECESSARY GOVERNMENT ROLE IN THIS AREA.

STATEMENT OF WINGERTER E J ACCOMPANIED BY FLOOD T ACCOMPANIED BY GERSHOWITZ H ACCOMPANIED BY HALE S

STATEMENT OF BROWNING FERRIS INDUSTRIES 740718

THE NEED FOR A NATIONAL MATERIALS POLICY

740717

PART 016 OF 28

WINGERTER E J EXECUTIVE DIRECTOR

FLOOD T VICE PRESIDENT, MARKETING

GERSHOWITZ H PRESIDENT

HALE S VICE PRESIDENT, MARKETING

NATIONAL SOLID WASTES MANAGEMENT ASSOCIATION

BROWNING FERRIS INDUSTRIES HOUSTON, TEXAS

WASTE MANAGEMENT OAK BROOK, IL

SCA SERVICES BOSTON, MA

112186

HEARINGS

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CORRESPONDENCE

SENATE

THE PRIVATE SECTOR CURRENTLY HANDLES THE TREATMENT AND

ATTACHMENT TO 08111950 PARENT DOCUMENT.

DISPOSAL OF MANY HAZARDOUS ASTES. MANY INDUSTRIAL FIRMS HAVE DONE OUTSTANDING JOPS OF TREATING THEIR WASTE TO ENVIRONMENTALLY ACCEPTABLE DEGREES BEFORE SUCH WASTES LEAVE THEIR PLANTS. HOEVER, THE MAJOR DETERENT TO ACHIEVING THE OVEFALL GOAL OF HAVING ALL HAZARDOUS ASTES PROPERLY TREATED STEMS FROM THE LACK OF ESTABLISHED UNIFORM STANDARDS AND ENFORCEMENT. ACCORDING TO THE 1973 FEDERAL BUDGET ESTIMATED FOR FUNDING ALL POLLUTION CONTROL AND ABATEMENT OF SOLID WASTE, APPFOXIMATELY $64.6 MILLION WAS BUDGETED FOR EXPENDITURE BY NINE FEDERAL AGENCIES BUT LESS THAN 1% OF THAT AMOUNT WAS EARMARKED FOR ESTABLISHING STANDARDS AND FOR ENFORCEMENT, AND HISTORTCALLY, HERE CLEARCUT LAS ARE IN EFFECT AND ENFORCED, THE BEST JOP HAS BEEN DONE.

ADDITONALLY, PRIVATE ENTERPRISE HAS THE FINANCIAL CAPACITY TO MAKE MAJOR INVESTMENTS IN HAZARDOUS WASTE TREATMENT AND DISPOSAL FACILITIES. UNFORTUNATELY, THE OPPORTUNITY TO DEVELOP THIS MARKET IS ECONOMICALLY UNSTABLE -- AND WILL REMAIN SO -- IN THE ABSENCE OF GOVERNMENT ESTABLISHING AND ENFORCING UNIFORM STANDARDS THAT ARE MEANINGFUL AND ACHIEVABLE.

III. WE WOULD HOPE THAT PREVIOUSLY MENTIONED SUGGESTIONS CONCERNING THE ESTAELISHMENT OF FEDERAL STANDARDS OULD HELP TO REDUCE OVERLAPPING LOCAL, REGIONAL AND STATE REGULATION DUTIES. FOR EXAMPLE, OPERATING PEFMITS ARE USUALLY REQUIRED PY CITIES OR TOWNS, COUNTIES, AND STATES; AND NOW, NE FEDERAL PERMITTING REQUIREMENTS ARE SUGGESTED. WE BELIEVE THESE PYRAMID

STATEMENT OF WINGERTER E J ACCOMPANIED BY FLOOD T ACCOMPANIED BY GERSHOWITZ H ACCOMPANIED BY HALE S

STATEMENT OF BROWNING FERRIS INDUSTRIES 740718

THE NEED FOR A NATIONAL MATERIALS POLICY

740717

PART 017 OF 28

WINGERTER E J EXECUTIVE DIRECTOR

FLOOD T VICE PRESIDENT, MARKETING

GERSHOWITZ H PRESIDENT

HALE S VICE PRESIDENT, MARKETING

NATIONAL SOLID WASTES MANAGEMENT ASSOCIATION

BROWNING FERRIS INDUSTRIES HOUSTON, TEXAS

WASTE MANAGEMENT OAK BROOK, IL

SCA SERVICES BOSTON, MA

112187

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ATTACHMENT TO 08111950 PARENT DOCUMENT.

APPROVAL REQUIREMENTS AND CONFLICTING REGULATIONS TO BE UNNECESSARY AND, A GREAT DETERRENT TO THE RAPID ACHIEVEMENT OF THE NATIONAL GOAL. A FEDERAL PRE-EMPTION IN THIS AREA MAY BE THE ONLY WAY TO ACHIEVE THE DESIRED RESULT.

IV. YOUR ATTENTION IS ALSO DIRECTED TO ANOTHER ASPECT OF SP-3560. SECTION 218. IN ITS PRESENT FORM, THE BILL COULD TEND TO DISPLACE EXISTING AND PLANNED FACILITIES, WHICH OULD BE COUNTER-PRODUCTIVE TO THE GOALS OF THE LEGISLATION. AS AN EXAMPLE, PRIVATE ENTERPRISE OPERATING IN THE AFFECTED INDUSTRIES OULD FIND IT DIFFICULT TO JUSTIFY FURTHER CAPITAL INVESTMENTS IN RECOVERY SYSTEMS WHEN RESOURCES RECOVERED FROM FEDDERALLY FINANCED CENTERS RECEIVE MANDATED PURCHASE PFEFERENCE.

V. PHILOSOPHICALLY, WE OPPOSE THE CONCEPT OF LOAN GUARANTEES. REALISTICALLY, WE EXPECT THAT THERE WILL BE STRONG DEMANDS MADE FOR SUCH A PROGRAM. IF THE SENATE BELIEVES THAT THE LOAN GUARANTEE PHILOSOPHY OF SB-3560 SHOULD BE PURSUED, WE ENDORSE THE RECOMMENDATION OF THE NSWMA.

VI. FINALLY, WE ENDORSE PLANNING AT THE STATE LEVEL AS THE PROPER FIRST STEP IN ASSESSING CURRENT PROBLEMS, EXISTING CAPABILITIES, AND DEVELOPING A COMPREHENSIVE PLAN OF ACTION. WE BELIEVE REGIONAL AUTHORITIES SHOULD BE CONSIDERED ONLY AFTER PROPER ANALYSIS PROVES THE NEED.

IN SUMMARY, BROWNING-FERRIS BELIEVES THE FEDERAL GOVERNMENT SHOULD AGGRESSIVELY PROMOTE THE USE OF PRODUCTS MANUFACTURED FROM RECOVERED WASTES; DEVELOP AND ENFORCE UNIFORM HAZARDOUS WASTE STANDARDS; PROCEED CAUTIOUSLY IN APPROPRIATING

STATEMENT OF WINGERTER E J ACCOMPANIED BY FLOOD T ACCOMPANIED BY GERSHOWITZ H ACCOMPANIED BY HALE S

STATEMENT OF BROWNING FERRIS INDUSTRIES 740718

THE NEED FOR A NATIONAL MATERIALS POLICY

740717

PART 018 OF 28

WINGERTER E J EXECUTIVE DIRECTOR

FLOOD T VICE PRESIDENT, MARKETING

GERSHOWITZ H PRESIDENT

HALE S VICE PRESIDENT, MARKETING

NATIONAL SOLID WASTES MANAGEMENT ASSOCIATION

BROWNING FERRIS INDUSTRIES HOUSTON, TEXAS

WASTE MANAGEMENT OAK BROOK, IL

SCA SERVICES BOSTON, MA

112188

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ATTACHMENT TO 08111950 PARENT DOCUMENT.

FEDERAL FUNDS OR GUARANTEED LOANS WHICH COULD DISCOURAGE OR DISPLACE EXISTING OR PLANNED PRIVATE INVESTMENT; PERMIT THE STATES TO PLAN FOR THEIR NEEDS WITHOUT MANDATING REQUIREMENTS HICH WILL INHIBIT THE PARTICIPATION OF PRIVATE ENTERPRISE OR ADD NEW AGENCIES UNLESS THE NEED IS CLEARLY SHON.

WE DEEPLY APPRECIATE YOUR WILLINGNESS TO HEAR AND CONSIDER OUR COMMENTS; E AT BROWNING-FEFRIS LOOK UPON THIS MEETTNG AS BOTH A PRIVILEGE AND A RESPONSIBILITY.

STATEMENT OF WINGERTER E J ACCOMPANIED BY FLOOD T ACCOMPANIED BY GERSHOWITZ H ACCOMPANIED BY HALE S

STATEMENT OF BROWNING FERRIS INDUSTRIES 740718

THE NEED FOR A NATIONAL MATERIALS POLICY

740717

PART 019 OF 28

WINGERTER E J EXECUTIVE DIRECTOR

FLOOD T VICE PRESIDENT, MARKETING

GERSHOWITZ H PRESIDENT

HALE S VICE PRESIDENT, MARKETING

NATIONAL SOLID WASTES MANAGEMENT ASSOCIATION

BROWNING FERRIS INDUSTRIES HOUSTON, TEXAS

WASTE MANAGEMENT OAK BROOK, IL

SCA SERVICES BOSTON, MA

112189

HEARINGS

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CORRESPONDENCE

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ATTACHMENT TO 08111950 PARENT DOCUMENT.

MR. WINGERTER. THANK YOU, MR. CHAIRMAN. CONCLUDING OUR PRESENTATION THTS MORNING, I WOULD JUST LIKE TO SUMMARIZE. E BELIEVED THAT THE EXISTING SOURCES OF PRIVATE CAPITAL ARE SUFFICIENT TO MEET THE GOALS AND OBJECTIVES THAT ILL OCCUR AS A RESULT OF INCREASED MARKET DEMAND. HOWEVER, TO THE EXTENT THAT ANY FEDERAL FISCAL POLICY IS REFLECTED IN THE FINAL LEGISLATION, WE BELIEVE IT SHOULD BE EQUITABLE TO THE INDUSTRY WHICH IS SERVING IT, AS WELL AS, TO GOVERNMENTAL AGENCIES; AND THAT ANY GRANT-TYPE PROGRAM THAT MAY BE MADE AVAILABLE TO SELECTIVE GROUPS SUCH AS IDENTIFIED IN SECTION 217, SUCH A PROGRAM WOULD ONLY SERVE TO PROLIFERATE EXCESS INVENTORIES AND SECONDARY MATERIALS WHICH WOULD DO NOTHING TO EXPAND MARKET DEMAND UNDER THE CURRENT SITUATION.

PROPOSAL S.3277 CALLS FOR A STUDY OF INSTITUTIONAL AND LEGAL BARRIERS AND WE BELIEVE THIS STUDY IS WARRANTED AND WILL HELP FURTHER UNDERSTAND THE SEVERE INSTITUTIONAL BARRIERS THAT OCCUR AS TO WASTE MANAGEMENT FACILITIES AND DISPOSAL RIGHTS.

THANK YOU.

SENATOR RANDOLPH. THANK YOU. THE CHAIRMAN WOULD WANT TO SAY THAT SOME DOZEN YEARS OF HIS LIFE WERE SPENT IN THE PRIVATE SECTOR AND I UNDERSTAND THE MATTER OF FINANCING PROBLEMS THAT CONFRONT US. I DON'T WANT TO PE MISUNDERSTOOD, PUT I REMEMBER -- LET US GO BACK TO RURAL ELECTRIFICATION. I WAS ONE OF THOSE WHO HELPED TO DRAFT THAT LEGISLATION AS A MEMBER OF THE HOUSE OF REPRESENTATIVES. I RECALL VERY WELL THE PRIVATE UTILITY SAYING IN EFFECT THAT RURAL ELECTRIFICATION AS NOT A JUSTIFIED PROGRAM. THE PRIVATE UTILITIES COULD MEET THE NEEDS IN THE RURAL AREAS OF OUR COUNTRY.

MR. INGERTER, THEY WERE NOT MEETING THE NEEDS. YOU SEE, THEY WERE STRINGING THEIR LINES WHERE THE POPULATION WAS BECAUSE IN THOSE AREAS THEFE WAS THE RETURN THAT THEY KNE WAS INHERENT; IS THAT RIGHT? THEY WERE NOT MOVING OUT INTO THE COUNTRYSIDE IN WEST VIRGINIA OR SOME OTHER STATES. I KNOW THAT AND THAT IS HY I ORKED VERY DILIGENTLY FOR RURAL ELECTRIFICATION IN OUR COUNTRY.

I RECALL LITERALLY THAT MANY OF THOSE WHO TESTIFIED INDICATED THAT IT WOULD HURT THE UTILITY INDUSTRY IN THE PFIVATE SECTOR, BUT THEY HAVE SAID TO ME SINCE THAT THEY WERE WRONG, THAT FRANKLY THE RRAL ELECTRIFICATION PROGRAM PROVED TO BE A STIMULANT.

YOU RECOGNIZE IN ALL OF THIS THERE ARE THE TWO ROLES TO BE PERFORMED AND CERTAINLY THE PRIVATE SECTOR IS NOT TO BE THREATENED -- WE MUST USE IT AND FURTHER DEVELOP IT AND, IN A SENSE, PROTECT IT.

(SUBSEQUENT TO THE HEARING MR. WINGERTER SUPPLIED THE FOLLOWING RELATIVE TO THE RURAL ELECTRIFICATION PROGRAM:)

NATIONAL SOLID WASTES MANAGEMENT ASSOCIATION, WASHINGTON, D.C., JULY 22, 1974

HON. JENNINGS RANDOLPH, CHAIRMAN, SENATE PUBLIC WORKS COMMITTEE, CHAIRMAN, PANEL ON MATEFIALS POLICY, WASHINGTON, D.C.

DEAF SENATOR RANDOLPH: ON BEHALF OF THE NATIONAL SOLID WASTES MANAGEMENT ASSOCIATION, WE APPRECIATE THE OPPORTUNITY OF PREPARING BEFORE YOUR PANEL ON MATERIALS POLICY ON JULY 17, 1974. DURING THE DISCUSSIONS WHICH FOLLOED MY PRESENTATION, YOU MADE REFERENCE TO THE FEDERAL GOVERNMENT'S ROLE IN THE RURAL ELECTRIFICATION PROGRAM AND THE SIMILARITIES TO THE FEDERAL ASSISTANCE POLICY PROPOSED IN S.3560.

STATEMENT OF WINGERTER E J ACCOMPANIED BY FLOOD T ACCOMPANIED BY GERSHOWITZ H ACCOMPANIED BY HALE S

STATEMENT OF BROWNING FERRIS INDUSTRIES 740718

THE NEED FOR A NATIONAL MATERIALS POLICY

740717

PART 020 OF 28

WINGERTER E J EXECUTIVE DIRECTOR

FLOOD T VICE PRESIDENT, MARKETING

GERSHOWITZ H PRESIDENT

HALE S VICE PRESIDENT, MARKETING

NATIONAL SOLID WASTES MANAGEMENT ASSOCIATION

BROWNING FERRIS INDUSTRIES HOUSTON, TEXAS

WASTE MANAGEMENT OAK BROOK, IL

SCA SERVICES BOSTON, MA

112190

HEARINGS

TRANSCRIPT

CORRESPONDENCE

SENATE

ATTACHMENT TO 08111950 PARENT DOCUMENT.

AFTER CAREFULLY CONSIDERING THESE PROGRAMS, I BELIEVE THE CIRCUMSTANCES AND OBJECTIVES ARE SIGNIFICANTLY DIFFERENT IN EACH CASE, AND I WOULD LIKE TO TAKE THIS OPPORTUNITY TO COMPARE THESE DIFFERENCES. IN THE CASE OF THE RURAL ELECTRIFICATION PROGRAM, THE INTENT OF THE FEDERAL GOVERNMENT WAS TO PROVIDE THE FINANCIAL INCENTIVE NECESSARY TO ESTABLISH THIS SERVICE IN AREAS WHERE POPULATION DENSITY AND SERVICE DEMANDS ERE SUFFICIENTLY LOW AS TO DISCOURAGE PRIVATE CAPITAL INVESTMENT AT THE RATE OR LEVEL DESIRED FOR BRINGING THIS SERVICE TO THESE AREAS OF THE COUNTRY. HOWEVER, IT IS MY UNDERSTANDING THAT THE FEDERAL FINANCIAL ASSISTANCE AS LIMITED TO CAPITAL INVESTMENT AND THAT OPERATING AND MAINTENANCE COSTS FOR PROVIDING RURAL ELECTRIFICATION WERE MET THROUGH REVENUES DERIVED FROM USER CHARGES.

THE CASE FOR PROVIDING WASTE MANAGEMENT SERVICES FOR RURAL COMMUNITIES IS SUFFICIENTLY DIFFERENT AS TO ELIMINATE THE NEED FOR DIRECT FINANCIAL ASSISTANCE UNDER S.3560. FIRST, A COMPREHENSIVE GRANTS PROGRAM FOR RURAL SOLID WASTE MANAGEMENT DOES EXIST UNDER PL 89-240, 1965, WHICH IS ADMINISTERED BY THE FARMERS HOME ADMINISTRATION OF THE U.S. DEPARTMENT OF AGRICULTURE. THROUGH THIS PROGRAM, RURAL COMMUNITIES ARE ABLE TO OBTAIN FEDERAL ASSISTANCE TO ESTABLISH FACILITIES AND EQUIPMENT FOR PROVIDING ADEQUATE WASTE COLLECTION AND DISPOSAL SERVICES WHERE NECESSARY. THROUGH THIS PROGRAM, FEDERAL ASSISTANCE IS AVAILA0LE TO RURAL COMMUNITIES WHERE EXISTING AND PLANNED PUPLIC AND PRIVATE ASTE MANAGEMENT SERVICES ARE NOT SUFFICIENT.

IT IS IMPORTANT TO RECOGNIZE THAT THE CAPITAL INVESTMENT REQUIRED TO PROVIDE RURAL WASTE COLLECTION AND DISPOSAL SERVICES IS, IN MOST CASES, SUBSTANTIALLY LOWER THAN THAT REQUIRED FOR THESE SERVICES IN URBAN AREAS. WITHIN THE PAST FE YEARS, THE U.S. ENVIRONMENTAL PROTECTION AGENCY AND VARIOUS LOCAL GOVERNMENT AND INDUSTRY ORGANIZATIONS HAVE DEVELOPED AND DEMONSTRATED EQUIPMENT AND MANAGEMENT SYSTEMS FOR PRIVIDING EFFICIENT WASTE MANAGEMENT SERVICES FOR LOW DENSITY RURAL AREAS. THESE PROGRAMS FOCUS UPON THE USE OF MODERN CONTAINERIZED WASTE COMPACTION EQUIPMENT USING VEHICLES WITH MECHANIZED CONTAINER HANDLING EQUIPMENT. VEHICLES OF THIS TYPE ENABLE A ONE MAN COLLECTION OPERATION TO EFFICIENTLY SERVE RURAL CUSTOMERS DISPERSED OVER LARGE AREAS (SEVERAL HUNDRED SQUARE MILES) ON A TIMELY BASIS. CONTAINERS WHICH ARE MECHANICALLY EMPTIED INTO THESE VEHICLES ARE STRATEGICALLY PLACED AT DESIGNATED LOCATIONS THROUGHOUT THESE COUNTIES.

REFUSE COLLECTED ON THESE RURAL ROUTES ARE BROUGHT TO REGIONAL SANITARY LANDFILL LOCATIONS WHICH ARE LOCATED TO SERVE AREAS WHICH COULD NOT ECONOMICALLY OPERATE MUCH LANDFILLS BY THEMSELVES. THESE RURAL-REGIONAL WASTE DISPOSAL PROGRAMS HAVE RESULTED IN THE CLOSING OF HANDREDS OF OPEN DUMPS SCATTERED THROUGHOUT THE COUNTRY-SIDE AND REPLACING THEM WITH A SMALLER NUMBEF OF PROPERLY ENGINEERED AND EFFICIENTLY OPERATED SANITARY LANDFILL SITES. IN MOST RURAL AREAS OF THE COUNTRY, PRIVATE WASTE SERVICE FIRMS ARE PROVIDING THESE SERVICES. THE MOST EFFECTIVE AND EFFICEINT PROGRAMS ARE IN AREAS WHERE PRIVATE FIRMS OPERATE UNDERA COUNTY CONTRACT OR FRANCHISE, ENABLING THESE FIRMS TO INVEST THE CAPITAL NECESSARY FOR CONTAINERIZED EQUIPMENT AND REGIONAL LANDFILL FACILITIES.

THE QUESTION OF ESTABLISHING RESOURCE RECOVERY OPERATIONS IN RURAL AREAS CANNOT BE JUSTIFIED AS LONG AS THE AVAILABILITY OF SECONDARY OR RECYCLED MATERIALS FROM URBAN ASTES FAR EXCEEDS THE DEMAND FOR THESE MATERIALS. THE EXTENSIVE INFORMATION AND CASE DATA PRESENTED TO THE MATERIALS POLICY PANEL DURING THESE HEARINGS BY REPRESENTATIVES OF THE RESOURCE RECOVERY AND WASTE MANAGEMENT INDUSTRIES CLEARLY ESTABLISHES THE FACT THAT LIMITED MARKET DEMAND AND FLUCTUATING MARKET VALUE ARE PRIMARY FACTORS WHICH CONSTRAIN THE LEVELS OF RECYCLING AT THIS TIME. TO PROLIFERATE ADDITIONAL INVENTORIES OF RECOVERED MATERIALS THROUGH FEDERAL SUBSIDIES TO RURAL AREAS WHEN MASSIVE QUANTITIES OF THESE MATERIALS ARE ACCESSIBLE THROUGH THE URBAN WASTE STREAM WOULD BE A MISAPPLICATION OF PRIORITIES AND AN UNNECESSARY EXPENDITURE OF PUBLIC FUNDS. UNLESS MARKET DEMAND FOR RECOVERED WASTE MATERIALS AND ENERGY INCREASES SUBSTANTIALLY MASSIVE VOLUMES OF MUNICIPAL WASTES WILL, OF NECESSITY, CONTINUE TO BE DISPOSED IN SANITARY LANDFILLS.

IT IS ALSO IMPORTANT TO NOTE THAT A GROWING NUMBER OF COMMUNITIES ARE CONSIDERING THE RECOVERY OF METHANE GASE FROM SANITARY LANDFILL SITES AS A BY-PRODUCT OF THE DECOMPOSITION PROCESS. WHAT WAS CONSIDERED TO BE PROBLEM IN WASTE DISPOSAL, MAY NOW, THROUGH PROPER ENGINEERING, BECOME A SUPPLEMENTARY SOURCE OF FUEL IN MANY COMMUNITIES. THE U.S. ENVIRONMENTAL PROTECTION AGENCY AND VARIOUS INDUSTRY GROUPS HAVE UNDERTAKEN ENTENSIVE STUDIES AND DEMONSTRATION OF THIS NEW ENERGY SOURGE.

STATEMENT OF WINGERTER E J ACCOMPANIED BY FLOOD T ACCOMPANIED BY GERSHOWITZ H ACCOMPANIED BY HALE S

STATEMENT OF BROWNING FERRIS INDUSTRIES 740718

THE NEED FOR A NATIONAL MATERIALS POLICY

740717

PART 021 OF 28

WINGERTER E J EXECUTIVE DIRECTOR

FLOOD T VICE PRESIDENT, MARKETING

GERSHOWITZ H PRESIDENT

HALE S VICE PRESIDENT, MARKETING

NATIONAL SOLID WASTES MANAGEMENT ASSOCIATION

BROWNING FERRIS INDUSTRIES HOUSTON, TEXAS

WASTE MANAGEMENT OAK BROOK, IL

SCA SERVICES BOSTON, MA

112191

HEARINGS

TRANSCRIPT

CORRESPONDENCE

SENATE

ATTACHMENT TO 08111950 PARENT DOCUMENT.

E, THEREFORE, BELIEVE THAT FEDERAL SUBSIDIES TO RURAL AREAS AS PROPOSED UNDER SECTION 217(B) OF S.3560 TO BE UNNECESSARY AND DUPLICATIVE OF THE CURRENT WASTE MANAGEMENT PROGRAM BEING ADMINISTERED BY THE FARMERS HOME ADMINISTRATION. SUCH A POLICY IF ENACTED WOULD ONLY SERVE TO DISPALCE EXISTING INVENTORIES OF RECYCLED MATERIALS AT A SUBSTANTIAL COST TO THE PUBLIC.

AS EXPRESSED IN MY STATEMENT TO THE PANEL ON JULY 17, 1974, WE ARE MOST CONCERNED AND CONFUSED OVER THE PROPOSED DISCRIMINATORY MARKET PROVISIONS OF SECTION 218. AS STATED, MANUFACTURERS OF PACKAGING MATERIALS WOULD BE REQUIRED TO GUARANTEE PURCHASE OF MATERIALS RECOVERED PY FACILITIES AND SYSTEMS CONSTRUCTED UNDER SECTIONS 208 AND 216. AS PROPOSED, THESE FACILITIES WOULD BE GIVEN PREFERENCE OVER THE SUBSTANTIAL NUMBER OF EXISTING PRIVATELY OWNED RESOURCE RECOVERY FACILITIES IN THE LIMITED MARKETS FOR RECYCLED MATERIALS. THE EFFECT OF THIS DISCRIMINATORY PROVISION ILL BE A DISPLACEMENT OF EXISTING SOURCES OF RECYCLED MATERIALS BY THE NEW FACILITIES THAT WOULD BE CONSTRUCTED THROUGH FEDERAL LOANS UNDER THIS PROGRAM ITHOUT ANY NET INCREASE IN THE AMOUNT OF MATERIALS RECYCLED AND POSSIBLY AT AN INCREASED COST TO THE PUBLIC.

AS LONG AS THE SUPPLY OF RECYCLED MATERIALS EXCEEDS MARKET DEMAND AND PROVIDING THAT THEIR MARKET VALUE ECONOMICALLY JUSTIFIES RECOVERY OF THESE WASTES, PROVISIONS THAT "GUARANTEE" MARKETS FOR SELECTED FACILITIES SUCH AS PROPOSED IN SECTION 218 ONLY CREATE ARTIFICIAL MARKET CONDITIONS WHICH MERELY DISPLACE EXISTING CHANNELS OF DISTRIBUTION AND OFFER NO CONTRIBUTION TO THE LONG TERM EXPANSION IN RESOURCE AND ENERGY RECOVERY.

WE URGE THE COMMITTEE TO CONSIDER OTHER POLICY ALTERNATIVES THAT WOULD OFFER EQUITABLE INCENTIVES TO ALL ORGANIZATIONS ENGAGED IN RESOURCE RECOVERY AND TO REFRAIN FROM INITIATING POLICIES WHICH PROVIDE PREFERENTIAL CONSIDERATION FOR SELECTED NE PUBLIC FACILITIES THAT WOULD DISPLACE EXISTING INDUSTRY SERVICE IN THIS FIELD.

MANY OF THE 10,000 FIRMS IN OUR INDUSTRY ARE EXTENSIVELY ENGAGED IN THE RECOVERY OF WASTE MATERIALS AS MARKETS FOR SECONDARY MATERIALS PERMIT. AT PRESENT, THESE ACTIVITIES RESULT IN THOUSANDS OF TONS OF PAPER AND METALS BEING RECLAIMED DAILY THROUGHOUT THE COUNTRY. AS AN INDUSTRY WE ARE COMMITTED TO LONG TERM ECONOMICAL RECOVERY AND REUSE OF WASTES. TO PROVIDE FEDERAL SUBSIDIES AND LOANS OR TO CREATE PREFERENTIAL MARKETS FOR RECYCLED MATERIALS AT THIS TIME WOULD ONLY SERVE TO DISPLACE THIS EXISTING INDUSTRY AND DISCOURAGE THE SUBSTANTIAL PRIVATE CAPITAL INVESTMENT BEING MADE IN THIS FIELD.

E URGE THE COMMITTEE TO FULLY CONSIDER THESE RECOMMENDATIONS DURING ITS DELIBERATIONS ON THESE ISSUES.

EUGENE J. WINGERTER, EXECUTIVE DIRECTOR.

SENATOR RANDOLPH. AS I HAVE CHECKED HERE MR. GERSHOWITZ, IN YOUR WASTE MANAGEMENT, INC., AS I UNDERSTAND, YOU ENT PUBLIC, DID YOU NOT, IN THAT ORGANIZATION?

SENATOR RANDOLPH. I WONDER IF THERE IS A CHANGE WHICH HAS TAKEN PLACE IN THE FINANCIAL STRUCTURE OF THE PRIVATE WASTE MANAGEMENT INDUSTRY AND WHETHER THIS IS EXPECTED TO INCREASE IF THERE ARE AVAILABLE MONEYS. WHAT WOULD YOU SAY?

MR. GERSHOWITZ. I THINK THAT IS AN IMPORTANT QUESTIONS. ALL THREE OF THE COMPANIES REPRESENTED HERE ARE PUBLIC COMPANIES. E ARE ALL NEW YORK STOCK EXCHANGE LISTED COMPANIES.

A CHARACTERISTIC OF THIS INDUSTRY PRIOR TO THE DEVELOPMENT OF COMPANIES WITH THE CAPABILITY TO IMPACT ON PROBLEMS SOLVING IN THE AREAS OF RESOURCE RECOVERY AND PROPER WASTE MANAGEMENT WAS SEVERE WHERE UNDERCAPITALIZATION PREVAILED.

THAT HAS CHANGED VERY DRAMATICALLY AND IT IS PROBABLY ONE OF THE MOST IMPORTANT CHANGES THAT HAS TAKEN PLACE.

IN ADDITION TO THE EQUITY CAPITAL MADE AVAILABLE TO THESE THREE COMPANIES (ALTHOUGH THE EQUITY MARKET HAS SEEN BETTER DAYS THAN WE HAVE EXPERIENCED IN RECENT TIMES), IT IS INTERESTING TO NOTE THAT THE THREE COMPANIES HERE, COMMAND LINES OF CREDIT FROM LEADING LENDING INSTITUTIONS APPROACHING $1/2 BILLION.

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STATEMENT OF BROWNING FERRIS INDUSTRIES 740718

THE NEED FOR A NATIONAL MATERIALS POLICY

740717

PART 022 OF 28

WINGERTER E J EXECUTIVE DIRECTOR

FLOOD T VICE PRESIDENT, MARKETING

GERSHOWITZ H PRESIDENT

HALE S VICE PRESIDENT, MARKETING

NATIONAL SOLID WASTES MANAGEMENT ASSOCIATION

BROWNING FERRIS INDUSTRIES HOUSTON, TEXAS

WASTE MANAGEMENT OAK BROOK, IL

SCA SERVICES BOSTON, MA

112192

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ATTACHMENT TO 08111950 PARENT DOCUMENT.

WHILE THESE FUNDS ARE REQUIRED FOR THE ENTIRE PROGRAM THAT THE COMPANIES MUST MAINTAIN, NOT JUST A PART OF IT, IT IS AN IMPORTANT INDICATION OF THE ROLE PRIVATE CAPITAL CAN PLAY AND OF THE POTENTIAL OF OUR INDUSTRY.

SENATOR RANDOLPH. WE WANT TO THANK YOU, MR. WINGERTER, MR. FLOOD, AND MR. HALE, AND MR. GERSHOITZ. WE APPRECIATE YOUR COOPERATION, YOUR TESTIMONY, AND YOUR COUNSELING. WE WILL WANT TO HAVE YOU WITH US WHEN WE TALK ABOUT 3560 IN CERTAIN SITUATIONS THAT I WILL WANT TO GIVE A SECOND THOUGHT TO. THAT IS WHAT WE WANT TO DO WITH THE TESTIMONY THAT IS GIVEN.

MR. GRUNDY WILL ASK YOU SOME QUESTIONS.

MR. GRUNDY. IN YOUR STATEMENT, MR. WINGERTER, YOU MAKE REFERENCE TO THE FACT THAT CURRENT AND PROPOSED ENERGY RESOURCES RECOVERY PROGRAMS DESIGNED FOR MUNICIPAL WASTE SHOULD BE CONSIDERED BOTH PREMATURE AND HIGHLY SPECULATIVE UNTIL THE ECONOMIC RESULTS OF THESE DEMONSTRATIONS ARE AVAILABLE AND FULLY EVALUATED.

AT ANOTHER POINT IN YOUR STATEMENT YOU MENTION THAT NEW FACILITIES ARE ON THE DRAWING BOARD IN OVER 70 MAJOR CITIES WHICH ARE DESIGNED TO PROCESS AND RECOVER MASSIVE VOLUMES OF MATERIALS.

I FIND THAT THESE STATEMENTS TO SOME EXTENT ARE CONTRADICTORY. ARE YOUR RESERVATIONS BASED ON THE FEELING THAT THESE INSTALLATIONS ARE PREMATURE BECAUSE OF THE AVAILABILITY OF THE TECHNOLOGY ITSELF OR ARE YOU PRINCIPALLY CONCERNED THAT THE VOLUMES OF MATERIALS THAT ARE GOING TO BE GENERATED WOULD RENDER THESE SYSTEMS UNECONOMIC?

MR. WINGERTER. LET ME RESPOND, IF I MAY, TO THE FIRST PART OF THE QUESTION. THE PROGRAMS THAT WERE DISCUSSED THIS MORNING PY DR. LESHER, THENEW ORLEANS PROJECT AND OTHEFS, REFLECT THE LARGE COMPREHENSIVE TYPES OF SYSTEMS INVOLVING SUBSTANTIAL CAPITAL INVESTMENT AND THE OPERATION OF VARIOUS MATERIAL HANDLING AND SEPARATION TECHNOLOGIES. THERE ARE OTHER ALTERNATIVES, SMALLER SCALE FACILITIES THAT ARE PRACTICAL AND AVAILABLE. WITH RESPECT TO MY STATEMENT THIS MORNING, THE 70 CITIES THAT HAVE BEEN IDENTIFIED BY EPA AND OUR ASSOCIATION ARE CONSIDERING VARIOUS TYPES OF SYSTEMS RANGING FROM A VERY BASIC, SIMPLE SOURCE TYPE TO RECOVER NEWSPRINT AND OTHER TYPES OF MATERIAL IN THE DOMESTIC WASTE STREAM.

ALL WE ARE SAYING IS THAT THERE IS A DANGER THAT IF A LARGE FEDERAL SUBSIDY PROGRAM EXISTED TODAY TO ACCELERATE THE APPLICATION OF THE PROGRAMS THAT WE CURRENTLY KNOW ABOUT THAT ARE STILL IN THE EARLY PHASES OF IMPLEMENTATION, THERE IS A RISK OF CITIES SELECTING THE RONG KINDS OF PROJECTS TO SUIT THEIR NEEDS. WE ARE ABOUT 2 YEARS AWAY FROM HAVING THE DATA AVAILABLE TO EVALUATE THE BEST TYPE OF TECHNOLOGYFOR VARIOUS APPLICATIONS IN VARIOUS CITIES.

MR. GRUNDY. YOU MADE THE STATEMENT THAT WE ARE NOT AT THE POINT WHERE WE CAN FULLY EVALUATE THE SYSTEM. AT WHAT POINT CAN WE GET PEOPLE TO MOVE INTO THE AREA? THEY MUST FEEL THERE IS SOME SECURITY THERE?

MR. WINGERTER. MOST OF THESE MUNICIPALITIES ARE IN THE EARLY STAGES OF PLANNING. THEY ARE EVALUATING THE PROGRAMS SUCH AS THE ENERGY RECOVERY IN ST. LOUIS. THE ARE TAKING ACTION TO LOOK AHEAD. YOU BEGIN THE EARLY STAGES OF PLANNING TO ESTABLISH THE ORGANIZATIONAL STRUCTURES, THE FINANCING STRUCTURES NECESSARY TO LAUNCH SUCH PROGRAMS.

STATEMENT OF WINGERTER E J ACCOMPANIED BY FLOOD T ACCOMPANIED BY GERSHOWITZ H ACCOMPANIED BY HALE S

STATEMENT OF BROWNING FERRIS INDUSTRIES 740718

THE NEED FOR A NATIONAL MATERIALS POLICY

740717

PART 023 OF 28

WINGERTER E J EXECUTIVE DIRECTOR

FLOOD T VICE PRESIDENT, MARKETING

GERSHOWITZ H PRESIDENT

HALE S VICE PRESIDENT, MARKETING

NATIONAL SOLID WASTES MANAGEMENT ASSOCIATION

BROWNING FERRIS INDUSTRIES HOUSTON, TEXAS

WASTE MANAGEMENT OAK BROOK, IL

SCA SERVICES BOSTON, MA

112193

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ATTACHMENT TO 08111950 PARENT DOCUMENT.

MOST OF THEM HAVE NOT NECESSARILY SELECTED THE SPECIFIC PROGRAMS.

SENATOR RANDOLPH. THEY ARE VERY MUCH IN A PLANNING STAGE AS OPPOSED TO THE IMPLEMENTATION STAGE.

MR. WINGERTER. YES. SOME HOWEVER HAVE ISSUED SPECIFICATIONS FOR FACILITIES AND ARE SOLICITING BIDS FROM INDUSTRY -- THOSE ARE A RELATIVELY SMALL NUMBER OF THE TOTAL.

MR. HALE. ALL OF US WHO CURRENTLY HAVE PLANTS HAVE HAD SOME OPERATING PROBLEMS THAT WERE NOT FORESEEN. HOPEFULLY, ON BALANCE THEY HAVE BEEN RELATIVELY MINOR. ON ALL OUR BIDS E HAVE BEEN CAREFUL TO TRY TO FACTOR IN SOME CONTINGENCY FOR UNEXPECTED CHANGES. WE ALL PERCEIVE THAT THERE ARE TECHNOLOGICAL RISKS INVOLVED. WE ARE STILL AT THE SAME TIME CONFIDENT THAT THAT BASIC SYSTEM IS GOING TO WORK, THAT THE LEVEL OF TECHNICAL RISK IS ACCEPTABLE. ANOTHER RISK IS THAT BECAUSE OF THE RESEARCH AND DEVELOPMENT THAT WE AND OTHERS ARE DOING, SOMETHING MAY BE DEVELOPED IN A YEAR OR 2 OR 3 THAT IS SUBSTANTIALLY BETTER THAN OUR PRESENT SYSTEM. TO ME, THAT DOESN'T AT ALL MEAN NO ONE SHOULD GO AHEAD NOW, BUT IT DOES MEAN THAT A GIVEN MUNICIPALITY OR REGION SHOULD ASSESS THE CURRENT SEVERITY OF ITS PROBLEM VERSUS THE RISK OF LOCKING INTO AN INFLEXIBLE SYSTEM THAT MAY BE OUTMODED BY SOMETHING THAT WILL COME ALONG IN A YEAR OR TWO. E MUST EXPECT THAT FUTURE SYSTEMS REPRESENT MAJOR IMPROVEMENTS EVEN TODAY'S TECHNOLOGY IS MORE THAN ADEQUATE FOR MANY PURPOSES.

MR. GERSHOITZ. WHILE IT IS ESTIMATED THAT THERE ARE 65 TO 70 SUCH PROGRAMS UNDER CONSIDERATION OR IN THE PLANNING STAGE, IT IS IMPORTANT TO UNDERSTAND THAT NONE HAVE BEEN CONSTRUCTED AND NONE ARE IN OPERATION AT THE PRESENT TIME. I THINK THAT THE CONCERN THAT HAS BEEN EXPRESSED IS THAT IF THE FUNDS WERE AVAILABLE, THE SIMULTANEOUS CONSTRUCTION OF 60 OF THOSE FACILITIES WOULD PROBABLY BE A VERY POOR USE OF THOSE FUNDS. A FEW ARE UNDER CONSTRUCTION. THEY WILL BECOME OPERATIONAL IN THE NEXT 2 YEARS AND WE WILL HAVE AN OPPORTUNITY TO SEE WHICH SUCCEED AND WHICH FAIL.

ALL OF THEM WILL REQUIRE SOME MODIFICATION. IT IS AFTER E REACH THAT POINT IN TIME THAT I THINK CITIES WILL BE ABLE TO MAKE A MUCH MORE MEANINGFUL SELECTION OF THE SYSTEM THAT IS THE MOST RESPONSIVE TO THEIR NEEDS.

MR. HALE. IT IS IMPORTANT TO NOTE THAT THOSE CITIES ACTUALLY SIGNING UP FOR RESOURCE RECOVERY SYSTEMS ARE THE ONES WITH THE WORST CURRENT DISPOSAL PROBLEM, SUCH AS CONNECTICUT, FOR INSTANCE. FOR THEM, CLEARLY IT MAKES SENSE TO GO AHEAD NOW. THIS SITUATION HOLDS FOR MANY OF OUR BIGGER CITIES, PARTICULARLY THOSE IN THE NORTHEAST. I AM NOT SURE THAT IT MAKES THE SAMKE KIND OF SENSE FOR A SMALLER TOWN IN THE MIDWEST HO MAY HAVE ENVIRONMENTALLY ACCEPTABLE DISPOSAL OPTIONS AVAILABLE AT LO COST, TO DEMAND A FULL-SCALE RESOURCE RECOVERY PLANT RIGHT AWAY.

MR. GRUNDY. ALONG THAT LINE, IS THE TECHNOLGOY THAT IS KNOWN BEING TRANSFERRED FROM PEOPLE WHO ARE BUILDING THE FACILITIES TO THE PEOPLE WHO ARE DOING THE PLANNING. NAMELY, IS THERE ROOM FOR IMPROVEMENT IN THE TRANSFER OF THIS INFORMATION FROM THE EXISTING SYSTEMS AT, SAY, NASHVILLE OR ST. LOUIS TO THE PEOPLE IN THE PLANNING PHASE AND TO WHAT EXTENT IS THEIR NEED FOF A MORE SUBSTANTIVE FEDERAL PROGRAM IN THIS AREA.

AS AN ANALOGY, I AM THINKING OF THE EPA'S WATER POLLUTION CONTROL TECHNOLOGY TRANSFER PROGRAM. IS THERE A SIMILAR NEED HERE.

STATEMENT OF WINGERTER E J ACCOMPANIED BY FLOOD T ACCOMPANIED BY GERSHOWITZ H ACCOMPANIED BY HALE S

STATEMENT OF BROWNING FERRIS INDUSTRIES 740718

THE NEED FOR A NATIONAL MATERIALS POLICY

740717

PART 024 OF 28

WINGERTER E J EXECUTIVE DIRECTOR

FLOOD T VICE PRESIDENT, MARKETING

GERSHOWITZ H PRESIDENT

HALE S VICE PRESIDENT, MARKETING

NATIONAL SOLID WASTES MANAGEMENT ASSOCIATION

BROWNING FERRIS INDUSTRIES HOUSTON, TEXAS

WASTE MANAGEMENT OAK BROOK, IL

SCA SERVICES BOSTON, MA

112194

HEARINGS

TRANSCRIPT

CORRESPONDENCE

SENATE

ATTACHMENT TO 08111950 PARENT DOCUMENT.

MR. WINGERTER. WE HAVE FELT THAT PLANNING IS ONE OF THE MOST SIGNIFICANT RESULTS TO DATE OF THE RESOURCE RECOVERY ACT PROGRAM AND THE TECHNICAL ASSISTANCE ACTIVITY IN EPA.

IT IS ONLY IN THE LAST FEW YEARS THAT WE HAVE BEGUN TO SEE THE TECHNICAL AND ECONOMIC DATA DEVELOPED THAT EPA SPONSORED THROUGH ITS PLANNING GRANTS. HOWEVER, THERE IS A CONCERN BY MANY OF US IN THE FIELD OF THE RISK OF TAKING AND EXTRAPOLATING WHAT MIGHT BE A SMALL BENCH MODEL OR PILOT-SCALE FACILITY TO A LARGE-SCHALE FACILITY THAT WOULD PROCESS SEVERAL THOUSAND TONS A DAY OF WASTE MATERIALS.

THERE ARE MANY THINGS IN THE AREA THAT MUST BE CONSIDERED. ALL OF THIS INFORMATION HAS TO BE FULLY DISSEMINATED AND FULLY EVALUATED TO PE SURE THAT THESE RISKS ARE MINIMIZED; AS FAR AS THE TRANSFER OF TECHNOLOGY AND AVAILABILITY OF INFORMATION, THOSE PROJECTS ARE GENERATING DATA AT THIS TIME.

MOST OF THEM HAVE BEEN THROUGH THE DEMONSTRATION PROGRAM, SUCH AS THE PROGRAM DISCUSSED IN NEW ORLEANS. IT WILL BE AVAILABLE TO CITIES.

MR. GRUNDY. SPEAKING OF THE EXTENT TO WHICH THERE IS NEED FOR IMPROVEMENT IN GETTING THAT EXPERIENCE TO THE PEOPLE WHO ARE DOING THE PLANNING, I WOULD LIKE TO EXTEND THIS INTO ANOTHER AREA.

YOU HAVE STATED THAT IN THE BILL THE DIFFERENTIAL BETWEEN INDUSTRIAL AND MUNICIPAL WASTES IS AN INVALID -- THAT YOU WOULD PREFER THAT THE DISTINCTION BE BETWEEN HAZARDOUS AND NONHAZARDOUS WASTE.

THE LEGISLATION DEALS WITH THE PROBLEM IN A BROADER PERSPECTIVE THAN JUST THE WASTE HANDLED IN AN URBAN AREA. IT REQUIRES PLANNING BOTH FOR AGRICULTURAL AND MINING WASTES AS WELL AS INDUSTRIAL, MUNICIPAL, AND URBAN WASTES.

DO YOU FEEL THE DISTINCTION BETWEEN HAZARDOUS AND NONHAZARDOUS WASTE SHOULD ALSO DOMINATE THIS DISTINCTION ON THE BASIS OF SOURCE?

MR. WINGERTER. NO. NOT AT ALL, IT WASN'T TOTALLY CLEAR TO US IN READING THE BILL WHETHER OR NOT THE INTENT WAS TO DEVELOP STANDARDS FOR THE SOURCE OR STANDARDS THAT WOULD CONTROL THE DISPOSAL B Y TYPE OF WASTE.

THAT IS THE POINT WE WANTED TO CLARIFY.

MR. GRUNDY. YOU ARE EMPHASIZING THE TYPE OF WASTE RATHER THAN THE SOURCE?

MR. WINGERTER. YES.

MR. GRUNDY. YOU ADVOCATE FULL PARTICIPATION OF THE RESPONSIBLE STATE AGENCY AND A DETERMINATION BY THAT AGENCY AS TO WHETHER ANY LOCAL OR REGIONAL PLANS ARE CONSISTENT WITH THE STATE'S PLAN AND ESTABLISHED STATE STANDARDS.

IS IT YOUR OPINION THAT REGIONAL PLANNING AT THE STATE LEVEL WILL COME ABOUT IN A TIMELY MANNER WITHOUT A MAJOR FEDERAL INITIATIVE?

MR. WINGERTER. WELL, FOR THE PAST 5 OR 6 YEARS, THE STATES HAVE BEEN DEVELOPING SOLID WASTE, COMPFEHENSIVE SOLID WASTE PLANS. MANY OF THE STATES AT THIS TIME ARE IN THE SECOND GENERATION OF PLANNING, IN THE EARLY STAGE OF IMPLEMENTATION OF THE STATEWIDE PROGRAM, SUCH AS CONNECTICUT, WISCONSIN, FLORIDA, AND OTHER STATES.

THERE ARE 12 OR 15 STATES THAT HAVE ENACTED LEGISLATION OR ARE IN THE PROCESS OF ESTABLISHING COMPREHENSIVE STATEIDE PROGRAMS AND TO STIMULATE REGIONAL PLANNING AT A LEVEL BELOW THE STATE LEVEL WHERE THE STATE ROLE WOULD BE ONLY ONE OF CERTIFICATION.

THIS WOULD, IN OUR OPINION, DILUTE THE MAJOR EFFORT HEN THEY SUBMIT IT FOR APPROVAL. THERE IS A PLACE FOR LOCAL AND ALSO STATE PLANS. THEY SHOULD BE COORDINATED AND BE PART OF A STATEWIDE PLAN.

STATEMENT OF WINGERTER E J ACCOMPANIED BY FLOOD T ACCOMPANIED BY GERSHOWITZ H ACCOMPANIED BY HALE S

STATEMENT OF BROWNING FERRIS INDUSTRIES 740718

THE NEED FOR A NATIONAL MATERIALS POLICY

740717

PART 025 OF 28

WINGERTER E J EXECUTIVE DIRECTOR

FLOOD T VICE PRESIDENT, MARKETING

GERSHOWITZ H PRESIDENT

HALE S VICE PRESIDENT, MARKETING

NATIONAL SOLID WASTES MANAGEMENT ASSOCIATION

BROWNING FERRIS INDUSTRIES HOUSTON, TEXAS

WASTE MANAGEMENT OAK BROOK, IL

SCA SERVICES BOSTON, MA

112195

HEARINGS

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CORRESPONDENCE

SENATE

ATTACHMENT TO 08111950 PARENT DOCUMENT.

MANY INSTITUTIONAL BARRIERS EXIST AT THE LOCAL LEVEL. ALL OF THESE FACTORS COULD BE ADDRESSED BETTER AT THE STATE LEVEL RATHER THAN THE LOCAL LEVEL OF PLANNING.

MR. GRUNDY. THERE WAS PROVISION IN THE RESOURCE RECOVERY ACT OF 1970 FOR FEDERAL GUIDANCE TO STATE AND LOCAL GOVERNMENT TO ASSIST THEM IN PLANNING.

THIS WAS TO TAKE THE FORM OF GUIDELINES. CAN YOU SAY WHETHER THIS PROGRAM IS FALLING SHORT OF THE NEEDS OF THE STATES AND HETHER THE STATES ARETURNING TO SOURCES OTHER THAN THE FEDERAL GOVERNMENT FOR THIS TYPE OF GUIDANCE? IN OTHER WORDS, DOES THE PROGRAM OF THE EPA NEED TO BE GEARED UP IN THIS REGARD?

MR. WINGERTER. E HAVE FELT THAT THE EPA SERVES A VITAL ROLE IN GUIDING THE STATES IN THE DEVELOPMENT OF THEIR PLANS AND THERE IS A CONTINUING NEED FOR AN EXTENSIVE INVOLVEMENT ON THE PART OF EPA IN TECHNICAL ASSISTANCE AND IN SOME AREAS FINANCIAL ASSISTANCE TO STATE AGENCIES TO UNDERTAKE A PLANNING EFFORT.

MR. GRUNDY. THERE IS A REQUIREMENT IN SEVERAL OF THE BILLS BEFORE THE COMMITTEE FOR RESOURCE RECOVERY AND HAZARDOUS WASTE DISPOSAL PLANNING. DO YOU FEEL THIS IS AN AREA WHERE THERE NEEDS TO BE A MORE DOMINANT FEDERAL ROLE, EVEN TO THE POINT WHERE THESE SHOULD BE A FEDERAL REGULATORY PROGRAM FOR HAZARDOUS WASTE DISPOSAL BEYOND WHAT THE STATE WOULD DO?

FOR EXAMPLE, A FEDERAL PERMIT PROGRAM SUCH AS IS ADVOCATED IN THE ADMINISTRATION BILL?

MR. WINGERTER. THERE HAVE BEEN ANUMBER OF PROPOSALS SUGGESTED FOR DEFINING THE FEDERAL ROLE VERSUS THE STATE ROLES. IN THE ABSENCE OF AN EFFECTIVE STATE PROGRAM, WE BELIEVE THERE SHOULD BE SOME FEDERAL GUIDELINES OR STANDARDS THAT WOULD INSURE ADEQUATE HANDLING OF HAZARDOUS WASTE DISPOSAL.

HERE THE STATES HAVE ENACTED PROGRAMS AND HAVE ADEQUATE PROGRAMS, THIS TRANSFER TO THE STATE LEVEL SHOULD OCCUR.

MR. HALE. IT SEEMS TO ME THAT EPA HAS PROVIDED SOME FUNDING AND A LOT OF EFFORT TO BUILD A BASE FOR A VIABLE STATE SOLID WASTE PROGRAM. UNFORTUNATELY IT CANNOT CURRENTLY FUND STATE ACTIVITIES BEYOND THE PLANNING STAGE AND IT HAS BEEN ABLE TO PROVIDE LITTLE ENCOURAGEMENT TO STATES IN THE AREA OF RESOURCE RECOVERY -- TO THE POINT WHERE SOME STATES SIMPLY HAVE SPENT THEIR OWN MONEY AND HAVE DONE AN EXCELLENT JOB IN MOVING FORWARD IN RESOURCE RECOVERY.

IT WOULD BE A MISTAKE NOT TO BUILD ON THE BASE THAT EPA AND THE STATES TOGETHER HAVE LAID. WE SHOULD USE THOSE STATE PROGRAMS AS THE BASIS FOR GOING FORWARD.

AT THE SAME TIME, FEDERAL FUNDING AND A FEDERAL REGULATORY PUSH WOULD BE EXTREMELY HELPFUL. I FIRMLY BELIEVE, BASED ON MY INVOLVEMENT WITH ALL THE STATE AGENCIES, THAT THEY WOULD RESPOND TO THAT KIND OF CHALLENGE VERY WELL.

MR. GRUNDY. WOULD ANY OF YOU GENTLEMEN LIKE TO ADD TO YOUR COMMENTS AT THIS POINT?

MR. GERSHOITZ. IN REFERENCE TO YOUR QUESTION TO MR. WINGERTER TO WHICH HE AND MR. HALE RESPONDED, THERE IS A DANGER IN LUMPING THE NEED FOR FEDERAL PLANNING IN THE AREAS OF HAZARDOUS WASTE AND RESOURCE RECOVERY IN THE SAME DISCUSSION BECAUSE THEY ARE TWO DISTINCTLY DIFFERENT AREAS OF DECISION MAKING.

STATEMENT OF WINGERTER E J ACCOMPANIED BY FLOOD T ACCOMPANIED BY GERSHOWITZ H ACCOMPANIED BY HALE S

STATEMENT OF BROWNING FERRIS INDUSTRIES 740718

THE NEED FOR A NATIONAL MATERIALS POLICY

740717

PART 026 OF 28

WINGERTER E J EXECUTIVE DIRECTOR

FLOOD T VICE PRESIDENT, MARKETING

GERSHOWITZ H PRESIDENT

HALE S VICE PRESIDENT, MARKETING

NATIONAL SOLID WASTES MANAGEMENT ASSOCIATION

BROWNING FERRIS INDUSTRIES HOUSTON, TEXAS

WASTE MANAGEMENT OAK BROOK, IL

SCA SERVICES BOSTON, MA

112196

HEARINGS

TRANSCRIPT

CORRESPONDENCE

SENATE

ATTACHMENT TO 08111950 PARENT DOCUMENT.

THE ENVIRONMENTAL STANDARDS FOR HAZARDOUS ASTE DISPOSAL WOULD NOT VARY GREATLY. WITH RESOURCE RECOVERY, GEOGRAPHIC LOCATION OF MATERIAL AND THE LOCATION OF BUYING MILLS AND INDUSTRIES WILLBE IMPORTANT.

I AM HARD-PRESSED TO RATIONALIZE THE ABILITY OF A FEDERAL AGENCY TO MAKE COMPREHENSIVE PLANS FOR A RESOURCE RECOVERY THAT WOULD HOLD FOR ALL PARTS OF THE COUNTRY BETTER THAN THOSE STATES COULD DO ON THEIR OWN.

SO I THINK WHEN WE DISCUSS PLANNING OR THE NEED FOR FEDERAL STIMULATION OF PLANNING, THE CONSIDERATIONS THAT WOULD BE ATTENDANT TO HAZARDOUS WASTE, FOR EXAMPLE, ARE REALLY QUITE DIFFEFENT, A WHOLE AREA OF MAGNITUDE DIFFERENT, THAN A DECISIONMAKING PROCESS FOR RESOURCE RECOVERY.

MR. GRUNDY. SINCE YOU OPENED UP THE AREA, TO WHAT EXTENT ARE THE FIRMS YOU ARE ASSOCIATED WITH INVOLVED IN HAZARDOUS WASTE DISPOSAL IN ADDITION TO RESOURCE RECOVERY?

MR. GERSHOWITZ. ALL THE COMPANIES CAN DISCUSS THE STEPS THEY ARE TAKING TO PLACE ON STREAM INDUSTRIAL AND CHEMICAL WASTE PROCESSING FACILITIES. WE HAVE BEGUN OUR FIRST FACILITY. IT IS A TEST FACILITY FOR THE GREATER CHICAGO AREA.

BOTH OF THE OTHER COMPANIES HAVE MADE SUPSTANTIAL COMMITMENTS TO PROVIDE LIQUID CHEMICAL WASTE SERVICE TO CUSTOMERS THEY PRESENTLY SERVE AS WELL AS NEW CUSTOMERS. WE LOOK AT THAT, I MIGHT ADD, AS AN AREA OF EXTREMELY POSITIVE GORWTH POTENTIAL FOR OUR COMPANY BECAUSE THE PROBLEM IS SO PRESSING.

IN MANY CASES, WE ARE INVOLVED WITH A SOLID WASTE PROGRAM ITH THE SAME INDUSTRIES THAT PRODUCE THE CHEMICALS AND LIQUIDS, AND ASSUMING THAT THE TECHNOLOGY EXISTS OR EVOLVES, IN MANY CASES OUR COMPANIES ARE GOING TO BE IN A POSITION TO PROVIDE SOLUTIONS FOR THOSE PROPLEMS.

I SUSPECT WE ILL BE VERY RESPONSIVE TO THAT OPPORTUNITY.

MR. GRUNDY. WITH REGARDS TO HAZARDOUS WASTE, DO YOU FEEL THAT THERE IS A SIGNIFICANT POTENTIAL FOR RECYCLING THESE PREFERENTIALLY OVER DISPOSING OF THEM?

MR. GERSHOWITZ. IT IS IMPORTANT TO FOCUS ON HAT FAMILY OF WASTE WE CATEGORIZE AS HAZARDOUS. CLEARLY IN THE CHEMICAL FIELD THE ABILITY TO RECYCLE CHEMICALS IS EVERY BIT AS PROMISING AND IN SOME CASES MORE SO THAN THE ABILITY TO RECOVER SOLIDS.

MR. GRUNDY. DOES THE POSSIBILITY EXIST THAT WHEN YOU GET INTO THIS AREA THERE WILL BE WASTES WHICH BECAUSE OF THEIR HIGHLY TOXIC NATURE OVER THE LONG-TERM AND BECAUSE WE ARE NOT ABLE TO RECYCLE THEM THAT E MAY HAVE TO MOVE IN SOME SORT OF DEPOSITORY SYSTEM, SUCH AS WE HAVE IN THE RADIOACTIVE ASTE FIELD?

MR. GERSHOWTIZ. POSSIBLY. THE MOST IMPORTANT FACTOR WILL BE FEDERAL STIMULATION AND ENFORCEMENT OF CHEMICAL AND TOXIC WASTE DISPOSAL. THE MORE LIMITED THE QUANTITY AND THE MORE EXOTIC, THE MORE CAPITAL INTENSIVE THE TECHNOLOGY IS TO BE.

AS LONG AS THE CHEAP AND DIRTY ALTERNATIVES ARE TOLERATED, THEY WILL BE UTILIZED INSTEAD OF THE MORE ACCEPTABLE BUT MORE EXPENSIVE SYSTEMS.

AS WE EVOLVE ENVIRONMENTAL STANDARDS, THEY WILL HAVE TO BE VIGOROUSLY PURSUED AND ENFORCED, IF ANY INSITITUION, PUBLIC OR PRIVATE, IS GOING TO GO FUND THE PLACEMENT OF TECHNOLOGY TO HANDLE MORE EXOTIC MATERIAL.

MR. FLOOD. THE MAJOR DETERRENT OF ACHIEVING THE GOAL OF HAVING ALL ASTE TREATED PROPERLY STEMS FROM THE LACK OF STANDARD ENFORCEMENT.

STATEMENT OF WINGERTER E J ACCOMPANIED BY FLOOD T ACCOMPANIED BY GERSHOWITZ H ACCOMPANIED BY HALE S

STATEMENT OF BROWNING FERRIS INDUSTRIES 740718

THE NEED FOR A NATIONAL MATERIALS POLICY

740717

PART 027 OF 28

WINGERTER E J EXECUTIVE DIRECTOR

FLOOD T VICE PRESIDENT, MARKETING

GERSHOWITZ H PRESIDENT

HALE S VICE PRESIDENT, MARKETING

NATIONAL SOLID WASTES MANAGEMENT ASSOCIATION

BROWNING FERRIS INDUSTRIES HOUSTON, TEXAS

WASTE MANAGEMENT OAK BROOK, IL

SCA SERVICES BOSTON, MA

112197

HEARINGS

TRANSCRIPT

CORRESPONDENCE

SENATE

ATTACHMENT TO 08111950 PARENT DOCUMENT.

IN STATES WHERE THERE ARE CLEARCUT LAWS IN EFFECT AND ENFORCED, WE 0ELIEVE THAT IS WHERE THE BEST JOB WILL BE DONE.

WE CURRENTLY HAVE FIVE HAZARDOUS ASTE TREATMENT AND RECEPTION CENTERS: PORT ARTHUR, HOUSTON, MOBILE, ALA., BATON ROUGE, AND ALSO YOUNGSTOWN, OHIO. IN EACH CASE THERE IS CONSISTENT ENFORCEMENT.

AGAIN, WE DON'T THINK THE FIELD WILL REALLY GROW UNTIL IT IS ACTUALLY ENFORCED.

MR. GRUNDY. ARE THESE FACILITIES BEING USED AT THEIR CAPACITY AT THE PRESENT TIME?

MR. FLOOD. NO, THAT IS THE MAJOR PROBLEM, UNDER UTILIZATION OF THE CAPACITY.

MR. GRUNDY. IS IT YOUR CONCERN THAT THE EXISTING STANDAFDS ARE NOT BEING ENFORCED?

MR. FLOOD. IN SOME CASES THERE IS LITTLE ENFORCEMENT OF EXISTING STANDARDS. IN OTHER CASES, THEY ARE ALMOST NONEXISTENT.

MR. GRUNDY. BY WHAT MEANS DO YOU DISPOSE OF THE MATERIALS THAT CANNOT BE RECYCLED OR REUSED? FOR EXAMPLE, DO YOU DO OCEAN DUMPING?

MR. FLOOD. NO, WE DO NO OCEAN DUMPING. THE PROCESS IS TO NEUTRALIZE, CONTROL LEACHATE BY CHEMICAL FIXATION, OR THERMAL DESTRUCTION DEPENDING ON THE MATERIAL INVOLVED. NO, WE DO NO OCEAN DUMPING. WE TREAT THEM IN AN ENVIRONMENTALLY ACCEPTABLE MANNER BEFORE ANYTHING IS RELEASED INTO THE GROUND.

MR. HALE. LET ME TAKE ONE OF OUR FACILITIES, OUTSIDE OF BUFFALO, N.Y., AS AN EXAMPLE. AT BUFFALO, WHICH IS ROUGHLY A $4 MILLION FACILITY, WE RECYCLE ABOUT 30 PERCENT OF THE INPUT AS CHEMICALS, SOLVENTS OR FUELS. WE TREAT SOME EXTREMELY TOXIC MATERIALS.

FOR EXAMPLE, E HANDLE MERCURY, WHICH NO ONE YET KNOS HO TO RECYCLE OR TREAT TO MAKE INNOCUOUS AND WHERE YOU HAVE NO CHOICE BUT TO ESTABLISH A PERPETUAL CARE DEPOSITORY. AT THE BUFFALO SITE, WE BURY SUCH WASTES, IN A DRUM OR OTHER CONTAINER, COMPLETELY SURROUNDED BY CHEMICALS, WHICH WOULD NEUTRALIZE SUCH WASTES SHOULD THEY EVER BURST OUT OF THEIR CONTAINERS (HICH WE CONSTANTLY CHECK TO MAKE SURE THERE HAS BEEN NO LEAKAGE).

FINALLY, WE HAVE A MEMBRANE OR CLAY LINER UNDERNEATH THE ENTIRE FILL TO ASSURE NO LEACHATE LEAVES THE FILL. THERE CERTAINLY ARE GOING TO BE SOME KINDS OF WASTE LIKE THAT WHICH YOU WILL HAVE TO MONITOR IN PERPETUITY. IT IS NOT THE BEST SOLUTION. WE WOULD LIKE TO FIND A WAY TO RECYCLE THE MERCURY -- BUT, UNTIL THAT IS DONES, WE HAVE NO CHOICE.

MR. GRUNDY. THIS IS A GOOD NOTE ON WHICH TO END. TOMORROW E HAVE THE EPA TESTIFYING. WE HAVE MR. QUARLES, THE DEPUTY ADMINISTRATOR, WHO IS BEING ACCOMPANIED BY THE ACTING ASSISTANT ADMINISTRATOR, MR. STRELOW. THE MAJOR THRUST OF THE ADMINISTRATION'S PROGRAM IS HAZARDOUS WASTE DISPOSAL.

WE ALSO HAVE A REPRESENTATIVE OF THE BUREAU OF MINES, MR. CARL RAMPACEK, WHO WILL BE SPEAKING ON THEIR PROGRAM.

THE HEARING WILL RECONVENE TOMORROWMORNING AT 9:30 IN THIS ROOM. THANK YOU.

(WHEREUPON, AT 1:10 P.M., THE PANEL RECESSED, TO RECONVENE AT 9:30 A.M., THRUSDAY, JULY 18, 1974.)

(LETTERS FROM VARIOUS INDUSTRIAL FIRMS REGARDING THE PROBLEMS THEY FACE DUE TO SHORTAGES IN ENERGY PRODUCING MATERIALS TRANSMITTED TO THE CONGRESS BY THE NATIONAL COMMISSION ON MATERIALS POLICY FOLLOWS:)

MEMORANDUM REPORT, THE PROBLEMS OF THE NONFERROUS METAL INDUSTRY RESULTING FROM THE ENERGY CRISIS 730600

THE NEED FOR A NATIONAL MATERIALS POLICY

740717

PART 001 OF 38

JONES H F DIRECTOR OF ECONOMICS DIVISION

KLAFF J L CHAIRMAN

O'CONNOR W C DIRECTOR OF TRANSPORTATION AND ENERGY

FENSKE CH GROUP VICE PRESIDENT OF OPERATIONS AND ENGINEERING

BRENTLINGER J M DIRECTOR

GLAZIER E M

NATIONAL COMMISSION ON MATERIALS POLICY 2025 M ST., NW WASHINGTON DC 20506

ANACONDA COMPANY NEW YORK, NY

CORNELL, HOWLAND, HAYES AND MERRYFIELD BELLEVUE, WA

OSCAR MAYER AND COMPANY MADISON, WI

E I DUPONT DE NEMOURS AND COMPANY WILMINGTON, DE

GULF OIL CHEMICALS COMPANY PITTSBURGH, PA

112199

REPORT STUDY

INTERNAL MEMO

CORRESPONDENCE

HEARING

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ATTACHMENT TO 08111950 PARENT DOCUMENT.

NATIONAL COMMISSION ON MATERIALS POLICY 2025 M STREET, N.W. WASHINGTON, D.C. 20506 202-254-9850

AUGUST 22, 1973

TO THE PRESIDENT AND CONGRESS OF THE UNITED STATES

SINCE THE ISSUANCE OF ITS FINAL REPORT ON JUNE 27, 1973, THE NATIONAL COMMISSION ON MATERIALS POLICY HAS RECEIVED EVIDENCE FROM INDUSTRY THAT UNEVEN DISTRIBUTION OF THOSE FORMS OF ENERGY PRODUCING MATERIALS WHICH ARE IN SHORT SUPPLY HAS ALREADY CAUSED PLANT SHUTDOWNS, CURTAILED RAW MATERIAL PRODUCTION, AND RESULTED IN UNEMPLOYMENT. THERE IS CLEAR EVIDENCE THAT THESE ARE NOT ISOLATED OCCURRENCES BUT INDICATE A WORSENING TREND WHICH MAY HAVE DOMINO EFFECTS. T/E IMPACT ON THE NATION'S ECONOMY AND ON THE PEOPLE CAN BE DISASTROUS.

INDUSTRIAL FIRMS AND OTHERS HAVE ADVISED THE COMMISSION, AS ILLUSTRATED IN THE ATTACHED LETTERS, THAT DISRUPTIONS HAVE ALREADY OCCURRED. THESE LETTERS ARE FROM MAJOR CORPORATIONS. IF THEY ARE HAVING SUCH PROBLEMS THEN SMALLER COMPANIES WITH LESS ECONOMIC STRENGTH ARE FACED WITH EVEN GREATER DIFFICULTIES. AS THESE OCCURRENCES MULTIPLY, THE DISRUPTIONS REACH CRISIS PROPORTIONS. THERE ARE ENOUGH EXAMPLES TO INDICATE THAT AN EMERGENCY ALREADY EXISTS. WE HAVE THOUGT IT ADVISABLE TO TRANSMIT THESE LETTERS TO YOU.

THE PUBLIC GENERALLY DOES NOT UNDERSTAND THAT EACH PERSON IS INDIRECTLY AFFECTED BY EACH CURTAILMENT WHICH MAY BE VISIBLE ONLY TO THE FEW THAT HAVE EXPERIENCED A LAYOFF. THE PUBLIC, WHEN FACED WITH A NATIONAL CRISIS, IS ALWAYS WILLING TO RESPOND BUT THERE MUST BE A GALVANIZING OF GOVERNMENT ACTION WHICH MAKES IT UNMISTAKABLY CLEAR THAT THE TIME FOR TEMPORIZING HAS PASSED AND THAT AN ALL-OUT EFFORT IS THE ONLY SOLUTION.

THE COMMISSION IN ITS REPORT RELEASED ON JUNE 27 MADE RECOMMENDATIONS FOR BASIC POLICY DECISIONS TO MEET THE NATION'S NEAR FUTURC AND LONG TERM NEEDS IN THE TOTAL MATERIAL FIELD, FOR EARLY ACTION ON THOSE RECOMMENDATIONS 0Y GOVERNMENT, INDSTRY AND THE PUBLIC ITSELF. PARTICULARLY NEEDED IS COORDINATED EMERGENCY ACTION ON ENERGY, MATERIALS, THE ECONOMY AND THE ENVIRONMENT TO MEET IMMEDIATE CRITICAL NEEDS OF THE NATION.

JEROME L. KLAFF CHAIRMAN

MEMORANDUM REPORT, THE PROBLEMS OF THE NONFERROUS METAL INDUSTRY RESULTING FROM THE ENERGY CRISIS 730600

THE NEED FOR A NATIONAL MATERIALS POLICY

740717

PART 002 OF 38

JONES H F DIRECTOR OF ECONOMICS DIVISION

KLAFF J L CHAIRMAN

O'CONNOR W C DIRECTOR OF TRANSPORTATION AND ENERGY

FENSKE CH GROUP VICE PRESIDENT OF OPERATIONS AND ENGINEERING

BRENTLINGER J M DIRECTOR

GLAZIER E M

NATIONAL COMMISSION ON MATERIALS POLICY 2025 M ST., NW WASHINGTON DC 20506

ANACONDA COMPANY NEW YORK, NY

CORNELL, HOWLAND, HAYES AND MERRYFIELD BELLEVUE, WA

OSCAR MAYER AND COMPANY MADISON, WI

E I DUPONT DE NEMOURS AND COMPANY WILMINGTON, DE

GULF OIL CHEMICALS COMPANY PITTSBURGH, PA

112200

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ATTACHMENT TO 08111950 PARENT DOCUMENT.

THE ANACONDA COMPANY 35 0ROADWAY, NEW YORK, N. Y. 10004

AUGUST 10, 1973

MR. JEROME L. KLAFF CHAIRMAN NATIONAL COUNCIL ON MATERIALS POLICY 2025 M STREET WASHINGTON, D. C. 20506

THE ANACONDA COMPANY IS CONCERNED ABOUT ENERGY SHORTAGES AND INFLATION IN THE COST OF ENERGY AND RECOGNIZES THE NEED FOR A SOUND NATIONAL ENERGY POLICY TO RESOLVE THESE PROBLEMS. WE WOULD LIKE TO DISCUSS BRIEFLY SOME OF THE PROBLEMS WHICH THE NONFERROUS METALS COMPANIES, AND PARTICULARLY, ANACONDA, ARE ENCOUNTERIG IN TRYING TO OBTAIN SUFFICIENT SUPPLIES OF ENERGY TO MAINTAIN PRODUCTION IN OUR MINES, SMELTERS, REFINERIES AND FABRICATING PLANTS.

ANACONDA IS ONE OF THE OLDEST PRIMARY METALS COMPANIES IN THE UNITED STATES TODAY. WE MINE COPPER ORE, WHICH WE CONCENTRATE, SMELT AND REFINE TO MAKE COPPER METAL. WE SMELT ALUMINA TO MAKE ALUMINUM. WE ROLL AND EXTRUDE COPPER AND ALUMINUM INTO A WIDE VARIETY OF SHAPES, INCLUDING WIRE AND CABLE, BRASS, ALUMINUM DOORS, WINDOWS, SIDING AND FOIL.

DURING 1972 ANACONDA COMPANY SPENT OVER $46 MILLION FOR ENERGY IN THE UNITED STATES. SOME $29 MILLION WAS SPENT FOR ELECTRICITY AND OVER $8.0 MILLION EACH FOR FUEL OIL AND NATURAL GAS. OUR PRODUCTION OF ALUMINUM REQUUIRES ABOUT 14,000 KILOWATT HOURS PER TON, AND OUR PRODUCTION OF COPPER REQUIRES MORE THAN 600 KILOWATT HOURS PER TON. NATURAL GAS IS USED FOR SMELTING, HEATING, DRYING, ANNEALING, AND METAL WORKING AND FOR HEATING SPACE FOR WORKERS. OIL IS USED FOR SOME OF THESE SAME PURPOSES AND ALSO TO FUEL THE TRUCK FLEETS USED IN MINING OPERATIONS. ONLY TWO PLANTS USE SUBSTANTIAL AMOUNTS OF COAL. PROPANE USE IS INCREASING AND IS USED PRIMARILY AS A SUBSTITUTE FOR NATURAL GAS AND TO OPERATE INDUSTRIAL TRUCKS. SOME OF OUR PROCESSES CAN ONLY USE NATURAL GAS, PROPANE OR ELECTRICITY BECAUSE OTHER FUELS WOULD CONTAMINATE TE METAL. FOR EXAMPLE, COPPER USED FOR MANUFACTURING WIRE AND CA0LE MUST BE MELTED IN A SHAFT FURNACE USING NATURAL GAS, PROPANE OR ELECTRICITY BECAUSE THE COPPER MUST REMAIN 99.9946 PERCENT PURE TO MATCH THE QUALITY REQUIRED FOR ELECTRIC WIRE AND CABLE.

MEMORANDUM REPORT, THE PROBLEMS OF THE NONFERROUS METAL INDUSTRY RESULTING FROM THE ENERGY CRISIS 730600

THE NEED FOR A NATIONAL MATERIALS POLICY

740717

PART 003 OF 38

JONES H F DIRECTOR OF ECONOMICS DIVISION

KLAFF J L CHAIRMAN

O'CONNOR W C DIRECTOR OF TRANSPORTATION AND ENERGY

FENSKE CH GROUP VICE PRESIDENT OF OPERATIONS AND ENGINEERING

BRENTLINGER J M DIRECTOR

GLAZIER E M

NATIONAL COMMISSION ON MATERIALS POLICY 2025 M ST., NW WASHINGTON DC 20506

ANACONDA COMPANY NEW YORK, NY

CORNELL, HOWLAND, HAYES AND MERRYFIELD BELLEVUE, WA

OSCAR MAYER AND COMPANY MADISON, WI

E I DUPONT DE NEMOURS AND COMPANY WILMINGTON, DE

GULF OIL CHEMICALS COMPANY PITTSBURGH, PA

112201

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ATTACHMENT TO 08111950 PARENT DOCUMENT.

IT IS NOT NECESSARY TO TELL THIS COMMISSION THAT NATURAL GAS IS IN SHORT SUPPLY IN THE UNITED STATES. WE RECENTLY SURVEYED THE RESERVE POSITIONS OF OUR GAS SUPPLIERS AND THE PIPELINES WHICH SUPPLY OUR GAS SUPPLIERS AND LEARNED THAT THE SUPPLY FOR 16 OF OUR PLANTS WILL BE DRASTICALLY CURTAILED IN THE 1973-74 OPERATING YEAR. UTILITY PROJECTIONS INDICATE TWO OF OUR PLANTS WILL NOT HAVE ANY NATURAL GAS AVAILABLE FOR UP TO FOUR MONTHS THIS WINTER. IN 18 ADDITIONAL PLANTS, LESS SEVERE CURTAILMENT MAY BE EXPECTED, AND IN ONLY EIGHT OF OUR PLANTS IS THERE A REASONABLE CHANCE THAT WE WILL GET THROUGH THE NEXT OPERATING YEAR WITHOUT CURTAILMENT. A SIMILAR SURVEY OF THE RESERVES OF OUR ELECTRICITY SUPPLIERS INDICATES THAT SEVERE CURTAILMENT MAY BE EXPECTED IN FOUR OF OUR PLANTS NEXT YEAR. ALREADY WE HAVE REDUCED PRODUCTION 20% AT ONE OF OUR MAJOR ALUMINUM REDUCTION PLANTS IN THE NORTHWEST DUE TO CURTAILMENT OF OUR ELECTRIC SUPPLY. POWER PROBABLY WILL NOT BE AVAILABLE TO INCREASE PRODUCTION BACK TO NORMAL LEVELS UNTIL MARCH, 1974. DUE TO THIS CUT-BACK IN ALUMINUM PRODUCTION, AN ALUMINUM WIRE AND CABLE PLANT HAS BEEN CLOSED. OUR POWER SRVEY INDICATES THE POSSIBILITY OF SOME CURTAILMENT EXISTING IN 25 PLANTS. IN ONLY 10 PLANTS DOES IT APPEAR THAT THE OPERATING ELECTRIC UTILITY SERVING THEM WILL HAVE SUFFICIENT RESERVES TO ASSURE CONTINUED OPERATION DURING THE NEXT OPERATING YEAR.

OUR SURVEYS DO NOT REVEAL ANY POSSIBILITY THAT THESE POWER AND GAS SITUATIONS WILL IMPROVE IN THE FOLLOWING YEAR. IN OTHER WORDS, OUR INFORMATION IS THAT WE ARE FACED WITH PLANT SHUTDOWNS UNLESS WE CAN FIND SUBSTITUTE FUELS OR SUBSTITUTE SOURCES OF NATURAL GAS AND ELECTRIC ENERGY. WE DO NOT REGARD OUR SITUATION AS A COMPANY TO BE UNIQUE. IT IS OUR VIEW THAT THIS IS THE GENERAL SITUATION FACED BY INDUSTRY IN THE UNITED STATES.

IT IS NOT ONLY INDUSTRY THAT WILL BE AFFECTED BY THESE SHORTAGES OF FUELS AND ELECTRICITY; HOWEVER, WEARE ALARMED AT THE CURRENT TREND OF REGULATORY COMMISSIONS AND FEDERAL AGENCIES TO ATTEMPT TO PLACE THE ENTIRE BURDEN OF THE ENERGY SHORTAGE UPON INDUSTRY. THERE APPEARS TO BE A DISPOSITION ON THE PART OF THOSE CHARGED WITH ALLOCATING THE SUPPLY OF SCARCE ENERGY, PARTICULARLY GAS AND ELECTRICITY, TO CONSIDER THAT IF THEY ARE ABLE TO MAINTAIN SUPPLIES TO COMMERCIAL AND RESIDENTIAL CUSTOMERS THAT THE SUTDOWN OF INDUSTRY RESULTING FROM SUCH ALLOCATION WILL NOT BE OF ANY CONSEQUENCE. WE WANT TO POINT OUT THAT NOTHING COULD BE FURTHER FROM THE TRUTH.

IT IS NOT POSSIBLE, OF COURSE TO ESTIMATE ACCURATELY THE ENTIRE EFFECT ON DENYING ENERGY SUPPLIES TO INDUSTRY. HOWEVER, WE CAN GET AN IMPRESSION OF THE EFFECT ON THE AMERICAN ECONOMY OF DENYING SUPPLIES OF ENERGY TO INDUSTRY BY MAKING CERTAIN ASSUMPTIONS. IN OUR OWN CASE, PRODUCTION COULD BE CUT ON THE AVERAGE AS MUCH AS 10% DURING THE NEXT OPERATING YEAR AS A RESULT OF GAS AND ELECTRIC CURTAILMENT UNLESS WE ARE ABLE TO OBTAIN SUBSTITUTE FUELS. LET US ASSUME THAT THIS APPLIES TO INDUSTRY GENERALLY AND COMPUTE HOW THIS WILL AFFECT THE GROSS NATIONAL PRODUCT, OUR 0ALANCE OF PAYMENTS, THE PRICES OF OUR PRODUCTS, AND EMPLOYMENT IN THE UNITED STATES.

MEMORANDUM REPORT, THE PROBLEMS OF THE NONFERROUS METAL INDUSTRY RESULTING FROM THE ENERGY CRISIS 730600

THE NEED FOR A NATIONAL MATERIALS POLICY

740717

PART 004 OF 38

JONES H F DIRECTOR OF ECONOMICS DIVISION

KLAFF J L CHAIRMAN

O'CONNOR W C DIRECTOR OF TRANSPORTATION AND ENERGY

FENSKE CH GROUP VICE PRESIDENT OF OPERATIONS AND ENGINEERING

BRENTLINGER J M DIRECTOR

GLAZIER E M

NATIONAL COMMISSION ON MATERIALS POLICY 2025 M ST., NW WASHINGTON DC 20506

ANACONDA COMPANY NEW YORK, NY

CORNELL, HOWLAND, HAYES AND MERRYFIELD BELLEVUE, WA

OSCAR MAYER AND COMPANY MADISON, WI

E I DUPONT DE NEMOURS AND COMPANY WILMINGTON, DE

GULF OIL CHEMICALS COMPANY PITTSBURGH, PA

112202

REPORT STUDY

INTERNAL MEMO

CORRESPONDENCE

HEARING

SENATE

ATTACHMENT TO 08111950 PARENT DOCUMENT.

FOR 1972, THE MINING AND MANUFACTURING INDUSTRIES CONTRIBUTED JUST UNDER ONE THIRD OF THE GROSS NATIONAL INCOME IN THE UNITED STATES. IF THE ENERGY SUPPLIES OF ALL INDUSTRY AND MINING WERE CURTAILED WITH A RESULTANT 10% DROP IN PRODUCTION, NATIONAL INCOME WOULD DROP APPROXIMATELY $31 BILLION IF THERE WERE A CORRESPONDING DROP IN THE SALES OF THESE INDUSTRIES. UNDOUBTEDLY, THE EFFECTS WOULD BE CONSIDERABLY MORE SEVERE THAN CAN BE MEASURED BY THE DIRECT REDUCTION INSALES, HOWEVER, SINCE REDUCTION IN MINING AND MANUFACTURING PRODUCTION WOULD REDUCE THE DEMAND FOR ALL THE OTHER GOODS AND SERVICES PRODUCED IN THE ECONOMY.

AN ECONOMIC DISLOCATION OF THIS SIZE IS ALMOST UNPRECEDENTED IN POST-WAR AMERICAN HISTORY. THE DECREASE ALLUDED TO WOULD AMOUNT TO 3.3% OF THE NATIONAL INCOME FOR 1972. IN THE MOST SERIOUS POST-WAR RECESSION, THAT OCCURRING BETWEEN 1948 AND 1949, REAL NATIONAL INCOME FEEL 3.5%. OBVIOUSLY, A REDUCTION OF THIS TYPE WOULD HAVE A VERY SERIOUS EFFECT UPON THE LEVEL OF UNEMPLOYMENT IN THE UNITED STATES.

EQUALLY DISTURBING WOULD BE THE LOSS OF GOODS TO EXPORT AT A TIME WHEN THE UNITED STATES IS SUFFERING AN UNPRECEDENTED BALANCE OF PAYMENTS DEFICIT PROBLEM. NON-AGRICULTURAL PRODUCTS COMPRISED 83.4% OF TOTAL U.S. EXPORTS IN 1971.

THESE VERY SERIOUS ECONOMIC DISLOCATIONS CALL FOR A REASONED EVALUATION BEFORE AN ENERGY POLICY HICH UNJUSTLY DISCRIMINATES AGAINST INDUSTRY IS ADOPTED.

AFTER STUDYING THE IMPACT OF THE ENERGY CRISIS ON ANACONDA, WE BELIEVE THAT MANY THINGS CAN BE DONE TO HELP MAKE AN ORDERLY TRANSITION FROM AN AGE OF CHEAP, ABUNDANT ENERGY TO AN AGE WHICH REQUIRES EFFECTIVE ENERGY MANAGEMENT. WE HAVE 0EEN AND ARE CONTINUING TO TAKE POSITIVE STEPS IN THIS DIRECTION.

IT IS IMPORTANT TO REDUCE INDUSTRIAL WASTE OF ENERGY, ANACONDA IS CARRYING OUT A COMPREHENSIVE ENERGY CONSERVATION PROGRAM. INDUSTRY ALONE CANNOT BEAR THE ENTIRE BURDEN OF ENERGY CONSERVATION. OTHER SECTORS OF THE ECONOMY MUST ALSO RESPOND, INCLUDING THE MAN ON THE STREET. IN ADDITION, THERE MUST BE A POSITIVE GOVERNMENT PROGRAM TO CORRECT THE ENCRGY SUPPLY-DEMAND IMBALANCE. TO ACHIEVE THIS, THE FEDERAL GOVERNMENT MUST DEVELOP A WELL DEFINED ENERGY POLICY TO INCREASE ENERGY SUPPLIES.

DURING THE INTERIM PERIOD, INDUSTRY MUST NOT BE EXPECTED TO BEAR THE ENTIRE BRUNT OF ALLOCATIONS, CURTAILMENTS, AND INCREASED COSTS. THE SEVERE ECONOMIC DISLOCATIONS WHICH WOULD RESULT CAN BE AVOIDED WITH A REASONED AND LOGICAL APPROACH, AND WITHOUT DISCRIMINATIONS AGAINST INDUSTRY.

MEMORANDUM REPORT, THE PROBLEMS OF THE NONFERROUS METAL INDUSTRY RESULTING FROM THE ENERGY CRISIS 730600

THE NEED FOR A NATIONAL MATERIALS POLICY

740717

PART 005 OF 38

JONES H F DIRECTOR OF ECONOMICS DIVISION

KLAFF J L CHAIRMAN

O'CONNOR W C DIRECTOR OF TRANSPORTATION AND ENERGY

FENSKE CH GROUP VICE PRESIDENT OF OPERATIONS AND ENGINEERING

BRENTLINGER J M DIRECTOR

GLAZIER E M

NATIONAL COMMISSION ON MATERIALS POLICY 2025 M ST., NW WASHINGTON DC 20506

ANACONDA COMPANY NEW YORK, NY

CORNELL, HOWLAND, HAYES AND MERRYFIELD BELLEVUE, WA

OSCAR MAYER AND COMPANY MADISON, WI

E I DUPONT DE NEMOURS AND COMPANY WILMINGTON, DE

GULF OIL CHEMICALS COMPANY PITTSBURGH, PA

112203

REPORT STUDY

INTERNAL MEMO

CORRESPONDENCE

HEARING

SENATE

ATTACHMENT TO 08111950 PARENT DOCUMENT.

THE IMPACT UPON ALL SECTORS OF THE ECONOMY MUST BE CONSIDERED BEFORE ANY PROGRAM IS DEVCLOPED. EXTENSIVE PUBLIC HEARINGS, MUST BE HELD WITH THE PUBLIC, COMMERCIAL AND INDUSTRIAL INTEREST REPRESENTED.

WILLIAM C. O'CONNOR DIRECTOR OF TRANSPORTATION AND ENERGY

MEMORANDUM REPORT, THE PROBLEMS OF THE NONFERROUS METAL INDUSTRY RESULTING FROM THE ENERGY CRISIS 730600

THE NEED FOR A NATIONAL MATERIALS POLICY

740717

PART 006 OF 38

JONES H F DIRECTOR OF ECONOMICS DIVISION

KLAFF J L CHAIRMAN

O'CONNOR W C DIRECTOR OF TRANSPORTATION AND ENERGY

FENSKE CH GROUP VICE PRESIDENT OF OPERATIONS AND ENGINEERING

BRENTLINGER J M DIRECTOR

GLAZIER E M

NATIONAL COMMISSION ON MATERIALS POLICY 2025 M ST., NW WASHINGTON DC 20506

ANACONDA COMPANY NEW YORK, NY

CORNELL, HOWLAND, HAYES AND MERRYFIELD BELLEVUE, WA

OSCAR MAYER AND COMPANY MADISON, WI

E I DUPONT DE NEMOURS AND COMPANY WILMINGTON, DE

GULF OIL CHEMICALS COMPANY PITTSBURGH, PA

112204

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INTERNAL MEMO

CORRESPONDENCE

HEARING

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ATTACHMENT TO 08111950 PARENT DOCUMENT.

THIS LETTER TO YOU PROVIDES MORE RECENT INFORMATION TO SUPPLEMENT MY JUNE 18, 1973 MEMORANDUM T MR. ROBERT BLUM WITH RESPECT TO SOME OF THE PROBLEMS FACED BY INDUSTRIAL PLANTS IN THE UNITED STATES AS A RESULT OF THE CURRENT ENERGY CRISIS.

IN MY JUNE 18TH MEMORANDUM, I COMMENTED AT LENGTH ABOUT THE POWER SHORTAGE IN THE PACIFIC NORTHWEST WHICH RESULTED FROM LESS THAN AVERAGE PRECIPITATION DURING THE CURRENT YEAR. AT THE TIME I WROTE THAT MEMORANDUM, THE DIRECT SERVICE INDUSTRIAL CUSTOMERS OF THE BONNEVILLE POWER ADMINISTRATION HAD CURTAILED ONE-HALF OF THEIR LOADS NORMALLY SERVED BY INTERRUPTIBLE POWER BECAUSE THERE WERE NO AVAILABLE SUPPLIES OF POWER TO MEET THE LOAD.

AT TE PRESETN TIME (JULY 31, 1973), ALL OF THE LOADS NORMALLY SERVED BY INTERRUPTIBLE POWER HAVE BEENCURTAILED. THIS IS ROUGHLY ONE-FOURTH OF THE TOTAL INDUSTRIAL LOAD AND AMOUNTS TO ABOUT 1,000 MW. THIS DROP IN LOAD WILL BE ACCOMPANIED BY ADDITIONAL INDUSTRIAL UNEMPLOYMENT IN A REGION WHICH HAS NCVER FULLY RECOVERED FROM THE 1969-71 RECESSION.

THERE IS EVERY REASON TO BELIEVE THAT FIRM POWER CURTAILMENTS WILL BE NECESSARY THIS FALL IF THE DROUGHT CONTINUES. THE SITUATION WILL BE MADE EVEN MORE SERIOUS IF BELOW NORMAL TEMPERATURES ARE ENCOUNTERED. LOW TEMPERATURES FREEZE THE MOUNTAIN STREAMS FEEDING THE RIVERS AND REDUCE HYDROELECTRIC PLANT OUTPUT. THE SAME LOW TEMPERATURES INCREASE THE HEATING LOAD.

MEMORANDUM REPORT, THE PROBLEMS OF THE NONFERROUS METAL INDUSTRY RESULTING FROM THE ENERGY CRISIS 730600

THE NEED FOR A NATIONAL MATERIALS POLICY

740717

PART 007 OF 38

JONES H F DIRECTOR OF ECONOMICS DIVISION

KLAFF J L CHAIRMAN

O'CONNOR W C DIRECTOR OF TRANSPORTATION AND ENERGY

FENSKE CH GROUP VICE PRESIDENT OF OPERATIONS AND ENGINEERING

BRENTLINGER J M DIRECTOR

GLAZIER E M

NATIONAL COMMISSION ON MATERIALS POLICY 2025 M ST., NW WASHINGTON DC 20506

ANACONDA COMPANY NEW YORK, NY

CORNELL, HOWLAND, HAYES AND MERRYFIELD BELLEVUE, WA

OSCAR MAYER AND COMPANY MADISON, WI

E I DUPONT DE NEMOURS AND COMPANY WILMINGTON, DE

GULF OIL CHEMICALS COMPANY PITTSBURGH, PA

112205

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INTERNAL MEMO

CORRESPONDENCE

HEARING

SENATE

ATTACHMENT TO 08111950 PARENT DOCUMENT.

THE ECONOMIC CONSEQUENCES OF THE CURTAILMENT OF PACIFIC NORTHWEST INDUSTRIAL LOADS ARE BEGINNING TO SPREAD. I UNDERSTAND A SHORGAGE OF CHLORINE AND CAUSTIC HAS, IN AT LEAST ONE INSTANCE, REDUCED PAPERMILL OUTPUT. OTHER PRODUCTS PRODUCED BY PACIFIC NORTHWEST PLANTS ARE ALSO REPORTED TO BE IN SHORT SUPPLY. THESE INCLUDE FERRO NICKEL, FERRO SILICON, SILICON, SILICON CARBIDE, CHLORINE, CA-STIC SODA, ALUMINUM AND ELEMENTAL PHOSPHOROUS, AS WELL AS OTHER FERRO ALLOYS AND PULP AND PAPER PRODUCTS.

IN SPITE OF THE GROWING EVIDENCE THAT SHORTAGES OF THESE BASIC INDUSTRIAL BUILDING BLOCKS WILL ADVERSELY EFFECT PRODUCTION AND EMPLOYMENT IN OTHER INDUSTRIES, REGULATORY AGENCIES ARE STILL HOLDING TO THEIR ANNOUNCED EMERGENCY CURTAILMENT PLANS--NAMELY--IN CASE OF SHORTAGES, CURTAIL INDUSTRY FIRST.

HERSCHEL F. JONES DIRECTOR, ECONOMICS DIVISION CORNELL, HOWLAND, HAYES & MERRYFIELD

"MEMORANDUM REPORT TO THE NATIONAL COMMISSION ON MATERIALS POLICY ON THE PROBLEMS OF THE NONFERROUS METALS INDUSTRY RESULTING FROM THE ENERGY CRISIS" CH2M/HILL, JUNE, 1973

MEMORANDUM REPORT, THE PROBLEMS OF THE NONFERROUS METAL INDUSTRY RESULTING FROM THE ENERGY CRISIS 730600

THE NEED FOR A NATIONAL MATERIALS POLICY

740717

PART 008 OF 38

JONES H F DIRECTOR OF ECONOMICS DIVISION

KLAFF J L CHAIRMAN

O'CONNOR W C DIRECTOR OF TRANSPORTATION AND ENERGY

FENSKE CH GROUP VICE PRESIDENT OF OPERATIONS AND ENGINEERING

BRENTLINGER J M DIRECTOR

GLAZIER E M

NATIONAL COMMISSION ON MATERIALS POLICY 2025 M ST., NW WASHINGTON DC 20506

ANACONDA COMPANY NEW YORK, NY

CORNELL, HOWLAND, HAYES AND MERRYFIELD BELLEVUE, WA

OSCAR MAYER AND COMPANY MADISON, WI

E I DUPONT DE NEMOURS AND COMPANY WILMINGTON, DE

GULF OIL CHEMICALS COMPANY PITTSBURGH, PA

112206

REPORT STUDY

INTERNAL MEMO

CORRESPONDENCE

HEARING

SENATE

ATTACHMENT TO 08111950 PARENT DOCUMENT.