Molex Incorporated

Final Project Agreement
Version 1

PROJECT XL FINAL PROJECT AGREEMENT

Molex, Inc.
U.S. EPA Region 7
Nebraska Department of Environmental Quality
Lincoln/Lancaster County Health Department
City of Lincoln, Nebraska

This Project XL Final Project Agreement (FPA or Agreement) is entered into by the United States Environmental Protection Agency (EPA), the Nebraska Department of Environmental Quality (NDEQ), Molex, Inc. (Molex), and the Lincoln/Lancaster County Health Department (LLCHD) and the City of Lincoln, Nebraska (City). This Agreement states the intentions of the parties to undertake certain actions necessary to implement an alternative strategy for environmental compliance at the Molex electroplating facility located at 1600 West Bond Circle, Lincoln, Nebraska.

WHEREAS, under Project XL the Administrator of the U.S. Environmental Protection Agency, in partnership with the states, will provide a limited number of responsible companies the flexibility to replace the requirements of the current environmental regulatory system at specific facilities with an alternative strategy developed by the company if certain conditions are met;

WHEREAS, under Project XL the alternative strategy must produce environmental performance superior to that achieved by compliance with current requirements, must allow the public to examine assumptions and track progress toward meeting promised results, must not create worker safety or environmental justice problems, must enjoy the support of the community surrounding the facility, and must be enforceable;

WHEREAS, the NDEQ, LLCHD and the City seek to develop ways to reduce the costs of environmental management while maintaining environmental quality;

WHEREAS, Molex, Inc. has proposed an alternative strategy to change the waste treatment processes at its electroplating facility in Lincoln, Nebraska, in conjunction with relief from certain regulatory requirements, in order to more efficiently manage those wastes and recover metals for recycling and reduce the metals loading to the publicly owned wastewater treatment system;

WHEREAS, the development of this FPA includes public participation in examining and tracking the alternative strategy;

NOW, THEREFORE, the EPA, NDEQ, LLCHD, the City and Molex agree as follows:

I. Project Description

A. Molex Facility Description

Molex is a multinational company that operates several electroplating facilities worldwide. Molex is upgrading its facility in Lincoln, Nebraska by changing its waste water treatment system to optimize the recovery of metals used in the electroplating processes. The primary environmental benefit will be the reduction of metals loading in the effluent discharges into the publicly owned treatment works (POTW). A secondary environmental benefit will be increased recycling and reducing the amount of material that would otherwise be landfarmed.

B. Overview of Project

This project is an alternative environmental compliance strategy that encompasses technical changes to the facility's wastewater treatment system, environmental improvements in the effluent to the POTW, regulatory relief for the facility for storage and shipment of wastes, and documentation of the technical, environmental and economic impacts of the alternative strategy.

The facility generates several metals-bearing wastewater streams that we until recently brought together for combined treatment. Metals recovery in such a system is limited because each metal has its own optimal set of treatment conditions. Molex proposes to operate a segregated treatment system that separately treats each metal waste stream to optimize the precipitation of each metal contaminant to more effectively remove metals in the effluent to the POTW. The environmental benefit will be a substantial reduction in the mass loading of metals entering the City's POTW.

However, the segregated system will cost more to operate than the current mass treatment system. Additionally, the segregated system will result in increased costs from compliance with the current regulations for handling the resultant sludges.

The NDEQ hazardous waste program has been authorized by EPA pursuant to the Resource Conservation and Recovery Act (RCRA) ' 3006(b), to carry out the Nebraska program in lieu of the Federal Program. This authorization includes the authority in Title 128--NDEQ, Chapter 7, ' 003.04, which provides that "recyclable materials" from which precious metals are reclaimed are not subject to the NDEQ generator requirements for storage and shipment of hazardous wastes.

Sludges from the previous combined treatment system contain chromium, [copper?], iron, nickel, gold, and silver. The gold and silver content of the materials classifies the treatment sludge as "recyclable materials" from which precious metals are reclaimed.

Under the project proposal, the process lines will be changed to generate separate treatment sludges for each of the metals, with the result that the chromium, [copper?], iron, and nickel-bearing sludges will not qualify as "recyclable material" from which precious metals are reclaimed. As such, they will be subject to the NDEQ Title 128 generator requirements for storage and shipment of hazardous wastes, at considerable increased expense for storage, shipment and disposal/recycling.

The NDEQ Title 128 generator requirements for these sludges and their handling, in the absence of regulatory relief under this Project XL, are estimated to result in increased annual costs to Molex in the amount of $_________. Additionally, Molex will bear the increased cost of the new treatment system, which is estimated at $__________ for the capital cost of the new system and $_________ in increased annual operating costs. The increased costs of the segregated treatment system would largely be offset by the increased value of the sludges, which would be suitable for acceptance by smelters and have an estimated value of $_____ per year to Molex. Given the estimated economic impacts, and in order to make the new treatment system economically feasible and promote economical recycling, Molex seeks regulatory relief from the waste handling regulations for the non-precious metals containing sludges that will result from the segregated treatment system.

Under the proposal, Molex seeks to handle the non-precious metals bearing sludges in the same manner as the precious metals bearing sludge. Nebraska is authorized to operate its hazardous waste program in lieu of the Federal Program. The method that EPA, NDEQ, LLCHD and the City deem appropriate to accomplish this regulatory relief is [identification of NDEQ regulatory relief mechanism]. Although Nebraska is authorized to operate its hazardous waste program in lieu of the Federal Program, EPA still retains enforcement authority for violations of RCRA pursuant to RCRA ' 3008(a). However, given the environmental benefits of this XL project, EPA intends to not pursue any enforcement action against Molex for the described XL activities in this FPA.

In addition to the commitment by Molex to change to a more costly segregated system, and the commitment by NDEQ to grant regulatory relief to Molex, the parties to this Agreement also commit to document the technical, environmental and economic aspects of the project. The documentation will be geared to demonstrate whether:

The treatment system is technically feasible

The environment will benefit by a reduction of the amount of metals discharged into the POTW

The regulatory relief causes no adverse environmental impacts

The alternative strategy is economically feasible

To this end, Molex, subject to review and comment by the other parties, will be providing periodic status reports and a final report at the end of the project to EPA, NDEQ, LLCHD, the City. These reports will also be made available to the public.

C. Applicable Facilities

This FPA is applicable to the Molex facility located in Lincoln, Nebraska, 1400 West Bond Circle, Lincoln, Nebraska.

D. Duration of Agreement, Termination and Notice

The parties intend by this agreement to accomplish the described regulatory relief and change to the segregated treatment process so that the alternative compliance strategy will be in place for a 24-month period, followed by a 3-month period in order to complete the final report described below. Completion and acceptance by the parties of the final report will terminate this FPA.

Additionally, any party may terminate this FPA at will, provided that notice is provided by the terminating party to the other parties at least one month prior to such termination. EPA or the NDEQ, upon a finding of endangerment to the environment, may terminate this FPA immediately upon telephonic or other notification to Molex. Upon any termination of this FPA, the operation of the facility and handling of wastes generated by Molex shall revert to regulation under Title 128--NDEQ, RCRA or other applicable statutes as if no regulatory relief existed for the facility.

Unless otherwise specified, all notices or other communications required by this FPA shall be in writing and shall be effective for all purposes if sent by regular mail. Each party will timely inform all other parties of the telephone number, mailing address, and person designated for receipt of such notices or communication.

E. Molex Implementation Commitments

1. Operation of Treatment System

Molex will operate the segregated treatment system for a period of 24 months from the date the regulatory relief is granted. The treatment system will consist of separate metals-bearing wastewater treatment systems for chromium, [copper?], iron, and nickel. Treatment for gold and silver bearing wastewater may, at the discretion of Molex, be combined or separate for each metal.

2. Storage and Shipment of Sludge

Molex will store and ship the chromium, [copper?], iron, and nickel-bearing sludges pursuant to the conditions set forth in the regulatory relief.

3. Smelter Recycling of Sludge

Molex will require that the smelting of the iron, nickel and chromium sludges occurs pursuant to the conditions set forth in the regulatory relief.

4. Reporting

Molex will provide an initial report, bi-monthly progress reports, and a final report to EPA, NDEQ, LLCHD, and the City.

a. Initial Report

The initial report will be due on the last day of the second full month after the regulatory relief is granted, and will describe:

- Baseline data for the combined treatment system for the most recent 12-month period prior to implementation of the segregated treatment system. This data will include a description of the wastewater treatment process, estimated daily average metals mass loading on the POTW and associated metal effluent concentrations including pH measurements, capital and operating costs of the combined treatment system, volume and fate of the sludge, Toxicity Characteristic Leaching Procedure (TCLP) and total metals analysis of the sludge, reclamation value of the sludge and the associated costs to Molex for the storage, transportation and reclamation of the sludge.

- Baseline data on the segregated treatment system. This data will include descriptions of each wastewater treatment process, capital costs of the segregated treatment system, and the proposed volume and fate of the sludge.

b. Bi-monthly Reports

The bi-monthly reports will be due on the last day of the month every two months after the initial report, and will describe:

- Current data for the segregated system on the actual daily average mass metals loading on the POTW and associated metal effluent concentrations including pH measurements, operating costs of the segregated treatment system, storage and recycling volume and fate of the sludge, TCLP and total metals analysis of the sludge, reclamation value of the sludge and the associated costs to Molex for the storage, transportation and reclamation of the sludge., and any other significant information concerning the XL project occurring during the reporting period.

c. Final Report

The final report will be due within 3 months of completion of the 24-month alternative compliance strategy period, and will:

- Provide an overview of the XL project

- Incorporate the initial report and bi-monthly reports as appendices.

- Describe the technical aspects of the project.

- Describe and quantify the environmental aspects of the project.

- Describe and quantify the economic aspects of the project, including a comparison of the mass treatment system to the segregated treatment system and calculation of costs saved by the regulatory relief.

TCLP and total metals analysis of sludges will be conducted in accordance with 40 CFR ' Part 261, Appendices I, II, and III. Molex will ensure that each composite sample is analyzed for the following parameters:

Chromium [OSW should determine frequency]

Copper

Iron

Nickel

Gold

Silver

Zinc

Lead

Mercury

Cyanides

TCLP organics

All reports provided by Molex will be subject to review and comment by EPA and NDEQ, and may be revised after consultation among the parties. Reports approved by EPA and NDEQ will be made available to the public.

F. EPA and NDEQ Implementation Commitments

Molex agrees to request, and NDEQ commits to promptly consider, the following regulatory relief. Such regulatory relief is subject to all the requirements applicable to state or federal laws and regulations, and the EPA and NDEQ make no guarantee that the regulatory relief below will in fact be granted:

[Detailed description of NDEQ regulatory relief mechanism. . . . which should include the following conditions:

(1) the sludge shall not be mixed with any other materials;

(2) the sludge shall only be sent to smelters approved by NDEQ;

(3) evidence of actual reclamation by the smelter shall be provided to NDEQ;

(4) the sludge shall not be accumulated at the facility in quantities in excess of ____ kilograms;

(5) the sludge shall not be accumulated at the facility for longer than _____ days;

(6) the sludge shall have significant metals content for reclamation; and

(7) the regulatory relief mechanism shall terminate after 24 months, or upon written notice by NDEQ or EPA to the facility of the termination of the Project XL Final Project Agreement for this facility, as published at ___ F.R._____ (date). . . . . .]

II. Project XL Criteria

A. Environmental Results

This project supports goals of both the Federal Water Pollution Control Act (FWPCA), Nebraska Surface Water Quality Standards, Resource Conservation and Recovery Act (RCRA) and the Nebraska Hazardous Waste Management Program.

This project supports the FWPCA and Nebraska Surface Water Quality Standards goals to restore and maintain the chemical, physical and biological integrity of the Nation's and State's waters. Specifically, this project reduces the metals loading effluent into the City of Lincoln, Nebraska's POTW, thus reducing metals discharges from the POTW into the nation's and State's waters and metals constituents in the POTW sludge that ultimately is landfarmed. Additionally, the reduced loading maintains the reserve treatment capacity of the POTW, thus deferring the replacement or enlargement of the publicly financed construction.

This project also supports the RCRA and Nebraska Hazardous Waste Management Program goals of resource recovery and conservation. Specifically, this project results in direct recycling of metals bearing sludges by smelters, which will decrease the need for mining of ores or other virgin materials, thus conserving mineral resources and reducing the amount of materials that would otherwise be landfarmed.

B. Cost Savings and Paperwork Reduction

There are only limited cost savings associated with this project. The regulatory relief associated with this project does remove a disincentive to proceed with this alternative strategy, but otherwise the costs appear to even out. Molex will bear the increased cost of the new treatment system, which is estimated at $_______ for the capital cost of the new system and $________ in increased annual operating costs. These costs will largely be offset by the increased value of the sludges, which would be suitable for acceptance by smelters and have an estimated value of $______ per year. Molex has the financial capacity to undertake the technical changes to implement the project, and is committed to environmental excellence and leadership even when the costs savings are marginal or non-existent.

There will be paperwork reductions due to the classification of the chromium, [copper?], iron, and nickel-bearing sludges as recyclable materials rather than as hazardous waste. The project's reporting requirements to document the project are not considered additional paperwork burdens for the alternative strategy as applied to the electroplating industry in general, but are simply part of the individual commitment of the parties to the Project XL objectives.

C. Stakeholder Support

The participating stakeholders are the signatories to this FPA. In addition, the public has been notified from the outset of this project and invited to participate, and will continue to be informed as the project is implemented through dissemination of the initial report, bi-monthly reports, and the final report.

D. Innovation and Multi-media Pollution Prevention

The project uses separate treatment systems, each optimized for maximum metals recovery, in an industry where mass treatment is common. As each system becomes unencumbered by the need to accommodate other metals recovery chemistries, more efficient and diverse recovery systems may develop.

The project impacts primarily land and water media, and additionally conserves virgin resources through recycling. The reduced metals effluent to the POTW results in reduced discharges into the nation's water and in POTW sludges that eventually become landfarmed.

E. Transferability

This project is expected to succeed and will be transferrable to other electroplating facilities nationwide. The technical, environmental and economic impacts will be documented and made public. The regulatory relief is transferrable to other facilities, or may form the basis for rule changes applicable to all such treatment systems of metals recovery.

F. Feasibility

Molex has the financial and technical ability to implement the project and document the results. The parties to the FPA will coordinate the implementation.

G. Monitoring, Reporting and Evaluation

The project will fully document the technical, environmental and economic impacts of the alternative strategy. Molex, in coordination with the other parties to the FPA, will provide periodic reports to monitor the progress of the project and a final report at the conclusion to evaluate the strategy. This is described in the project description above.

H. Shifting of Risk Burden

No group or media will be subject to unjust or disproportionate environmental impacts or burdens attributable to this project. Storage of sludge at the facility prior to shipment to the smelters will essentially be no different than current storage of the combined treatment, precious metals-bearing sludge, except that under the project the metals will be separated. Smelter workers and residents nearby smelters will not be adversely affected since the smelters will not increase their smelting activities, but only replace virgin material feedstock with recyclable material feedstock.

III. Signatories

Molex

LLCHD

City of Lincoln

NDEQ

EPA

Molex Incorporated

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