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Final Project Agreement Work Plan


Project XL--HADCO Corporation

This Final Project Agreement ("the Agreement" or "FPA") is entered between HADCO Corporation ("HADCO"), the United States Environmental Protection Agency ("EPA"), the New Hampshire Department of Environmental Services ("DES") and the New York Department of Conservation ("DEC") (hereinafter, the "parties," and the last two parties, collectively, "the State Parties"). This Agreement states the intention of the EPA, the State Parties and HADCO to carry out a pilot project as part of EPA's "Project XL" program, to test the extent to which regulatory flexibility, and other innovative environmental approaches, can be implemented to achieve both superior environmental performance and reduced economic and social burdens.

This Agreement is intended to be a joint statement of the parties' plans and intentions with regard to the HADCO project. It is intended to state the plans of the various participants and to represent the firm commitment of each participant to carry out the project. The Agreement is not, however, intended to create legal rights or obligations and is not a contract, or a regulatory action such as a permit or rule, although some provisions in this Agreement may be implemented through a separate rule that will be legally enforceable. This Agreement does not give any of the parties a right to sue other parties for any alleged failure to implement its terms, either to compel implementation or to recover damages.

Therefore, this Agreement simply provides a framework to implement HADCO's Project XL proposal and is premised upon the findings listed below:

HADCO has applied and been accepted as a participant in EPA's Project XL, part of President Clinton's National Performance Review regulatory reinvention initiative;

Project XL gives a limited number of regulated entities an opportunity to demonstrate excellence and leadership through allowing them the flexibility to develop alternative strategies that will replace or modify specific regulatory requirements on the condition that the strategies produce greater environmental benefits;

HADCO is proposing flexible implementation of regulations promulgated pursuant to the Resource Conservation and Recovery Act, 42 U.S.C. 6903 et seq. ("RCRA"), in order to enhance the direct recycling of both RCRA regulated and non RCRA regulated metal bearing streams from its printed wiring board ("PWB") manufacturing facilities and to achieve other environmental benefits;

HADCO's facilities generate wastewater treatment ("WWT") sludges that are currently classified and managed as an F006 waste under 40 C.F.R. 261.30 and 261.31(a). The sludge is accumulated in hazardous waste storage areas, labeled as hazardous waste, and shipped via hazardous waste haulers to facilities which specialize in "producing metals concentrates." These metals concentrates are marketed to smelters for the purpose of metals recovery.

The purpose of this XL Project will be to test the premise that HADCO's F006 waste stream along with similar F006 waste streams from the PWB industry can be safely recycled by primary metals smelters or other appropriate metal reclamation facilities without having to be put through the rigor of the RCRA C regulatory system for its WWT sludge. HADCO believes that this direct recycling may result in overall environmental benefits, and will pose no greater risk than the indirect recycling which is currently occurring. The financial benefit realized by HADCO will be directed towards recycling its drilling, sawing, and edging dusts, which are non-RCRA waste streams, reducing the production or these dusts, or both.

In order to implement the project, the parties agree as follows:

I. Applicability and Scope

A. Applicable Facilities

This project seeks to enhance the direct recycling of metal bearing streams generated by HADCO's four PWB manufacturing operations located in New Hampshire and New York ("the facilities"). The facilities covered under the terms of this Agreement are:

a. HADCO Corporation
7 Manor Parkway
Salem, New Hampshire 03079
EPA RCRA I.D. Number: NHD980668156

b. HADCO Corporation
7 Manchester Road / 2 Treasure Lane
Derry, New Hampshire 03038
EPA RCRA I.D. Number: NHD046312559

c. HADCO Corporation
21 Flagstone Drive
Hudson, New Hampshire 03051
EPA RCRA I.D. Number: NHD991302522

d. HADCO Corporation
1200 Taylor Road
Owego, New York 13827
EPA RCRA I.D. Number: NYD002241982

B. Signatories

Signatories to this Agreement are representatives of: HADCO Corporation; the New Hampshire Department of Environmental Services and EPA Region I and New York State Department of Environmental Conservation and EPA Region II. Each undersigned representative certifies that he or she is fully authorized to sign this Agreement on behalf of those parties.

C. Significance of the Agreement

In the memorandum included with this Agreement as Appendix A, HADCO's Project XL proposal is presented in light of the Project XL criteria it satisfies, as set forth at 60 Fed. Reg. 27282.

D. Definitions

Except as otherwise set forth in this Agreement, the terms used in this Agreement that are defined in RCRA or the regulations promulgated thereunder set forth at 40 C.F.R. Part 260 et seq., will have the meanings contained therein. The following terms used in this Agreement will be defined as follows:

d. "Solid waste variance" will mean, with respect to a material, a variance from being solid waste, pursuant to 40 C.F.R. 260.30(c) (or equivalent federally authorized State regulations), including any conditions attached to such variance.

g. "XL Implementation Date" will mean the latest date on which a State Party or EPA issues its final decision approving HADCO's petitions requesting regulatory relief pursuant to Section III of this FPA, and publishes that decision in the Federal Register or state analogue.

E. Duration of Agreement

The effective date of this Agreement will be the date HADCO receives a fully executed copy of this Agreement from EPA, via certified mail or hand delivery. The expiration of this FPA and any resulting solid waste variance or conditional delisting rules will be sixty (60) months after the XL Implementation Date, as defined above and in Paragraph 20.

6. Any party may terminate its participation in this project at any time. Before terminating, any party will abide by the notice provisions found at Section V of this Agreement. A party or State Party may terminate its participation in this project completely, or it may terminate its participation with respect to one or more but less than all of the HADCO facilities subject to this Agreement. If any of the State Parties terminate its participation with respect to a particular facility or facilities, this Agreement (including any resulting rules) will terminate only with respect to those WWT sludges produced by the facility or facilities specified by the terminating State Party. If EPA or a State Party terminates its participation after the XL Implementation Date, the party will provide written notice to HADCO and to all other parties, and will publish the decision (or appropriate rule revocation) in the Federal Register or appropriate state analogue to the Federal Register. The continuation of this Agreement is conditioned upon HADCO's demonstration of the superior environmental performance achieved by this project, as evidenced by the information submitted pursuant to Section VI of this Agreement. Continuation of this Agreement is further conditioned upon HADCO's adherence to the terms set out in Section VII of this Agreement.

7. If HADCO obtains a conditional delisting or a solid waste variance for any facility's WWT sludge, Sections II, IV, V, VI, and VII of this Agreement, will be merged with the terms of the conditional delisting or solid waste variance (such as the necessary storage and handling requirements for the WWT sludge) and included in the notices published in the Federal Register as well as all appropriate state analogues on the XL Implementation Date.

F. Modification of the Agreement

8. At any time, the parties may modify the FPA with the concurrence of all the signatories, or their representatives. Any modifications will be subject to notice and comment in the Federal Register. If the parties agree to modify the FPA, HADCO will notify the stakeholders directly and solicit their comments prior to the publication of the proposed modification in the Federal Register.

II. Requirements for HADCO's Conditional Delisting or Solid Waste Variance

A. Sampling and Analyses

9. HADCO agrees to collect samples and analyze the WWT sludge generated from each of the facilities. HADCO will conduct the sampling as specified below, and otherwise in accordance with 40 C.F.R. 260.22(h).

10. HADCO agrees to collect full sets of samples in accordance with the following schedule:

11. HADCO agrees to adhere to the following sample collection requirements:

12. HADCO will send each sample collected pursuant to this Section to laboratories, with necessary state certification for applicable parameters if required by state law, for analyses performed according to EPA protocols set forth in SW-846 (3rd Edition), where defined, or applicable ASTM procedures where not defined in SW-846.

13. HADCO will ensure that each composite sample is analyzed for the parameters listed below:

Constituent Analysis

Original listing constituents

Cadmium Both total metal and TCLP leachable

Chromium Both total metal and TCLP leachable; and Total and TCLP leachable hexavalent chrome

Cyanides Both total and complexed/amenable

Nickel Both total and TCLP leachable

Additional Constituents Restricted from Land Disposal

Lead Both total and TCLP leachable

Silver Both total and TCLP leachable

Other constituents of interest

Copper Both total and TCLP leachable

Zinc Both total and TCLP leachable

Arsenic Both total and TCLP leachable

Barium Both total and TCLP leachable

Mercury Both total and TCLP leachable

Selenium Both total and TCLP leachable

Sulfides Total

Antimony Total

Beryllium Total

Thallium Total

Heating Value (measured in BTU/lb)

14. If TOC in any set of composite samples exceeds 500 ppm (by weight), HADCO will also demonstrate to EPA and the State Parties that the samples do not include greater than a 500 ppm total concentration of organic compounds listed in Part 261, Appendix VIII.

III. Analyses to Determine HADCO's Eligibility for a Conditional Delisting or Solid Waste Variance and Applicable Implementation Mechanisms

A. Data Submittal and Analyses

15. HADCO will submit analytical data for each sample collected pursuant to Section II.A. of this Agreement . The data will be submitted to the EPA and State Parties within ten (10) days of HADCO's receipt of the written laboratory report. 16. After conferring with the State Parties, EPA will complete an analysis of the data pertaining to the first four (4) weeks of sampling and determine whether the WWT sludge generated at each HADCO facility may be eligible for : 1) a conditional delisting pursuant to 40 C.F.R. 260.20 and 260.22; or 2) a solid waste variance pursuant to 40 C.F.R. 260.30. EPA intends to render its decision on eligibility within forty-five (45) days of its receipt of the data resulting from the fourth composite sample.

17. Upon making its eligibility decision, EPA will notify HADCO in writing within ten (10) days. If, however, the EPA and State Parties find that the data submitted is insufficient to support any such determination, EPA will notify HADCO; such notification will specify the additional analyses needed and the supplemental schedule for sampling, analyses, and report submittals.

B. Federal Implementation Mechanisms

18. Within forty-five (45) days of receipt of the eligibility decision, HADCO will submit petitions for review which specify the types of regulatory relief it requests for each facility (hereinafter, "the petitions"). In the case of a delisting, the petitions will substantively comply with the requirements of 40 C.F.R. 260.20 and 260.22, and will be submitted to EPA. In the case of a solid waste variance, the petitions will be submitted to the appropriate state regulatory agencies and will substantively comply with the identified requirements of each jurisdiction's laws and regulations. In each petition, HADCO will also include the Initial Projected Benefits Report as defined in Paragraph 26 of this FPA.

19. After receiving a petition, the administering agency will notify HADCO with regard to each facility that: 1) the petition is complete and accepted for filing (hereinafter, "completeness notification"); (2) the petition is incomplete and that specific additional information is required; or, (3) the petition is incomplete and additional time is needed for review. The agencies intend to provide such notice within thirty (30) days of receipt. HADCO should submit all corrections to the petitions within thirty (30) days of receipt of notification by the administering agency.

20. If the information submitted by HADCO appears to support a delisting or solid waste variance, within 45 days or as soon thereafter as possible, EPA or the State Parties, as specified in Paragraphs 22 and 23 of this FPA, will take the steps necessary to propose a delisting or variance in accordance with normally applicable procedures including public notice and opportunity for comment. If no adverse comments are received, EPA or the State Parties intend to finalize the proposal. If EPA or the State Parties make such a proposal but ultimately determine not to grant a delisting or variance, that decision will be published in the Federal Register or appropriate state analogue to the Federal Register. The latest date which a State Party or EPA issues its final decision approving HADCO's petitions requesting regulatory relief pursuant to Section III of this FPA, and publishes that decision in the Federal Register or state analogue is defined as the "XL Implementation Date." If EPA or a State Party wishes to revoke a delisting or variance that has been granted, standard procedures for such revocation will be followed.

21. This Agreement will not preclude EPA from holding an informal public hearing to consider oral comments pursuant to 40 C.F.R. 260.20(d).

C. State Implementation Mechanisms

22. New Hampshire

23. New York

a. HADCO's WWT sludge, generated at its Owego, New York facility, is also listed as industrial process waste F006 under New York State's hazardous waste regulations (NYCRR Part 371). It can be delisted as a hazardous waste by the New York State Department of Environmental Conservation (DEC) upon the filing of a petition pursuant to 6 NYCRR 370.3 (a) and (c). However, since DEC is not authorized to administer the hazardous waste delisting program of 40 CFR 260.20 and 260.22, a delisting must first be granted by EPA before DEC will act upon a delisting petition.
b. If HADCO chooses to do so, or if EPA or DEC determine that a delisting will not be granted, HADCO may apply to DEC for a solid waste variance under 6 NYCRR 370.3 (a), (d)(1)(iii) and (e)(3). Since DEC is authorized to issue such variances, HADCO would only need to apply to DEC for such a variance, with respect to the regulatory status of such a material in New York State. DEC will attempt to notify HADCO within forty-five (45) days of the receipt of such a variance petition, either that (1) the petition is complete; (2) the petition is incomplete and that specific additional information is required; or (3) the petition is incomplete and additional time is needed to complete DEC's review. HADCO will submit all additional information requested within thirty (30) days of receipt of notification by DEC. DEC will attempt to issue its decision on HADCO's petition within sixty (60) days of its acceptance of said petition. DEC's decision will be issued in accordance with the requirements of 6 NYCRR 370.3 (a). Parallel notices regarding the issuance of a solid waste variance will be placed in the Federal Register.

IV. Approval of Reclamation Facilities

24. HADCO will ship its WWT sludge to only those reclamation facilities agreed to by the relevant State parties and EPA in writing. Copies of letters of intent between HADCO and the receiving reclamation facilities will be transmitted to EPA and the relevant State Parties prior to the issuance of a conditional delisting or variance, and contracts or agreements with the reclamation facilities will be provided prior to shipment of sludges. These letters of intent, contracts or agreements will detail the acceptance criteria for the sludge. HADCO will request approval by the EPA and relevant State Parties, prior to the shipment of its sludge to such facility. If EPA and the relevant State Parties reject HADCO's request for approval, because the shipment of the WWT sludge to such reclamation facility would not foster the goals of this project, they shall notify HADCO and give the reasons therefor. In such event, HADCO may (i) modify the terms of the contract or agreement regarding the acceptance criteria for the sludge, and resubmit the modified contract or agreement to EPA and the relevant State Parties in accordance with the provisions of this paragraph 24; or (ii) negotiate a new agreement or contract with the same or a different reclamation facility, subject to the foregoing provisions of this paragraph. In the event that HADCO does not receive the approval of EPA and the relevant State Parties of such a modified or new agreement, then this project will be terminated in accordance with the provisions of Section I.E. and V. of this FPA.

V. Notice

25. All notices or other communications required by this Agreement will be submitted in writing and will be effective for all purposes if hand-delivered to the party designated below, or if sent by (i) certified or registered United States mail, postage prepaid; or (ii) expedited United States Postal Service prepaid delivery services, with proof of attempted delivery, addressed in either case as follows:

To HADCO: HADCO Corporation
12A Manor Parkway
Salem, NH 03079
Attention: Lee Wilmot

To EPA: David Webster, Director
Assistance and Pollution Prevention Unit
Office of Environmental Stewardship
U.S.E.P.A. Region I
JFK Federal Building, SPN
Boston, MA 02203-2211

Conrad Simon, Director
Division of Enforcement and Compliance Assistance
U.S.E.P.A., Region II
290 Broadway, 21st Floor
New York, NY 10007-1866

To DES: Philip J. O'Brien, Ph.D., Director
Waste Management Division
P.O. Box 95, 6 Hazen Drive
Concord, NH 03301-0095

To DEC: Norman H. Nosenchuck, Director
Division of Solid & Hazardous Materials
50 Wolf Road
Albany, N.Y. 12233-7250

or to such other addressees as will be designated from time to time by written notice to these parties in the manner set out above.

VI. Verification of Environmental Benefits

A. Initial Projected Benefits Report and Annual Reports

26. To verify the environmental benefits attributable to this project, HADCO will prepare a report which summarizes the projected environmental benefits (hereinafter, "the Initial Projected Benefits Report"). At a minimum, the Initial Projected Benefits Report will include the following data developed from WWT sludge shipment records for 1995 through 1997 and available records, analyses, and estimates for the same time period:

d. transportation method;

i. explanation of how cost savings referenced above in (h) will be reinvested in environmentally beneficial expenditures;

j. estimate of the quantity of copper dust that could be or has been reclaimed, specify the methods of reclamation that HADCO considers implementing, estimated costs of reclamation, and the percentage of copper contained in dusts sent off-site for landfilling in 1996 and 1997; and

HADCO will compile the data on a state by state (NH and NY) basis.

27. To verify the environmental benefits attributable to this project, HADCO will submit an annual report to the EPA and State Parties no later than March 1 of each year which contains the relevant data for the prior calendar year (hereinafter, "annual reports") for each year this Agreement remains in effect. In each annual report, HADCO will include the same type of data listed in Paragraph 26. For the data requirements specified in subparagraphs 26.h., i. and j. above, HADCO will include actual data in lieu of estimates. In addition, HADCO will include the information specified in Paragraphs 28 through 30 in its annual report.

B. Transferability

28. To verify the environmental benefits attributable to potential transferability of this project, HADCO will solicit relevant information from other PWB manufacturers located in the two states participating in this project, concerning the potential transferability of this project. HADCO will include this information in its first annual report to the EPA and State Parties. HADCO commits itself to an open exchange of information and data with other PWB manufacturers that may benefit from the successful implementation of this project.

C. Copper Dust Reclamation and Pollution Prevention

29. HADCO will commit all of its project related savings to the reclamation of its copper drilling, sawing, and edging dusts, reducing production of these dusts and other wastes through pollution prevention methods, or a combination of both activities. HADCO will commence these reclamation or pollution prevention activities within eight (8) months of the XL Implementation Date on a facility specific basis. With regard to reclamation activities, should HADCO conclude that cost savings do not justify the recycling of all its copper drilling, sawing, and edging dusts, the precise amount to be recycled will be agreed upon by all FPA signatories. To verify the environmental benefits attributable to the dust reclamation or pollution prevention implementation, HADCO will describe its progress in instituting these activities and include relevant data and documentation in each of its annual reports on a facility specific basis.

D. Sludge Driers

30. HADCO will install sludge driers at its New Hampshire facilities if HADCO determines that such installation is technically and economically feasible, in order to reduce further the quantity of sludge transported. The parties agree that the installation of these driers would qualify as a pollution prevention activity, described in paragraph 29 above. To verify the environmental benefits attributable to this project, HADCO will describe the status of its sludge drier installation and include relevant data and documentation in each annual report. In the event that sludge driers are not installed, HADCO must include an evaluation of the technical and economic feasibility supporting its decision in each annual report.

E. Final Report

31. No later than fifty-four (54) months after the XL Implementation Date, HADCO will submit a final report evaluating the costs and benefits of the Project. This final report will include an evaluation of data developed pursuant to Paragraph 26 and evaluations regarding the environmental results derived from the implementation of Paragraphs 28 through 30. Upon submission of the final report, HADCO may petition EPA and the relevant State Parties to request the extension of any variances or conditional delistings granted pursuant to Section III of this FPA.

32. The EPA and State Parties will review the final report within three (3) months of receipt and prepare an evaluation of the project. If, based upon their review, the EPA and State Parties determine that this project was successful, the EPA and State Parties may extend the terms of any variances or delistings granted pursuant to Section III of this Agreement with limited terms, through publication of notice in the Federal Register and relevant state analogues.

VII. Continuing Communication With Stakeholders

33. HADCO will continue to communicate with its stakeholders in this project using the following methods:

a. Placement of the signed FPA and subsequent annual reports in local libraries in Derry, Hudson, and Salem, NH; and Owego, NY. Copies of the same documents and the analytical data generated pursuant to Section II of this FPA will also be publically available at EPA Headquarters, EPA's regional offices in New York City and Boston, and at the offices of Atlantic States Legal Foundation in Syracuse, NY.

b. Mailing of the signed FPA and executive summaries of the subsequent annual reports to stakeholders identified and invited to participate in the FPA development process.

c. Posting of the signed FPA and executive summaries of the subsequent annual report on HADCO's world wide web page.

d. Conducting annual on-site meetings with those stakeholders who request meetings to review project progress and discuss other aspects of the project after their receipt of the annual report summaries

e. Filing press releases of pertinent project accomplishments such as completion of sludge drier installation in all NH facilities or commencement of copper dust reclamation in both area newspapers and trade journals.

34. When a federal register notice (or equivalent state analogue) is published regarding any relevant regulatory relief proposed to be granted to HADCO, EPA will provide notice to each of the stakeholders that were involved in FPA development.

VIII. Events Preventing Project Implementation

35. The parties recognize that in certain circumstances it may be impossible for a party to fully implement a commitment it has made in this agreement, due to events beyond the control of, and not reasonably foreseeable by, that party, and which cannot be overcome by due diligence by that party. In such cases the parties will attempt to modify the agreement to reflect their revised expectations in accordance with Paragraph 8 of this FPA. If a party becomes aware of such an event that may prevent it from carrying out a commitment in a timely way, it will promptly notify the other parties.

IX. Dispute Resolution

36. To ensure orderly implementation of the project and minimize disruption if disagreements occur, the parties expect to use the following process for dispute resolution. Adherence to this procedure is non-binding but will be the anticipated means of addressing disputes. Any dispute which arises concerning the commitments of the parties, the interpretation or meaning of the FPA, or the implementation of specific terms, will, in the first instance, be the subject of informal negotiations. Any party may initiate informal negotiations by notifying all the other parties, in writing, setting forth the matter for dispute. If the dispute cannot be resolved by the parties within 30 days of receipt of such notice, one or more of the disputants may invoke non-binding mediation by setting forth the nature of the dispute, with a proposal for its resolution, in a letter submitted to the EPA Regional Administrator (and/or State Commissioner) with jurisdiction over the location where the dispute arose. Any party to the dispute may request an informal mediation meeting. The disputants may request an opinion from the Regional Administrator [or State Commissioner] in lieu of or in addition to the mediation meeting. Any opinion, written or oral, by the Regional Administrator [or State Commissioner] will be non-binding and non-enforceable and nothing in this section shall be construed as altering any signatory's right to request termination, or to give rise to any right of judicial review of the opinion. Any decisions rendered by EPA or a State Party based on its review, analyses, and interpretation of the data submitted pursuant to Section II of this FPA, must remain within those Agencies sole discretion and are not subject to the Dispute Resolution provisions of this Section.


Richard P. Saporito, Vice-President
Corporate Administration



John P. DeVillars Regional Administrator, Region 1



Robert W. Varney, Commissioner



Date Jeanne M. Fox
Regional Administrator
Region II


Date John P. Cahill, Commissioner

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