Molex Incorporated

Final Project Agreement
Version 3

DRAFT
December 20, 1996
Molex XL PROJECT XL
FINAL PROJECT AGREEMENT
Molex, Inc. U.S.
EPA Region 7
Nebraska Department of Environmental Quality

The project XL Final Project Agreement (FPA or Agreement) is entered into by the United States Environmental Protection Agency (EPA), and the Nebraska Department of Environmental Quality (NDEQ), Molex, Inc. (Molex). 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 700 Kingbird Road, 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 product 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 seeks 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 as 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, and Molex agree as follows:

I. Project Description

A. Molex Facility Description Molex is a multinational company that operates several electroplating facilities worldwide. Molex has upgraded its facility in Lincoln, Nebraska by changing its waste water treatment system to allow it 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). As secondary

DRAFT December 20, 1996,

Molex XL 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 formerly were brought together for combined treatment. Metals recovery in such a system is limited because each metal has its own optimal set of treatment conditions. At the new facility Molex will operate a segregated treatment system that separately treats each metal waste stream to optimize the precipitation of each metal containment 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 of Lincoln's POTW.

However, the segregated system will cost more to operate than a 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, Rules and Regulations governing Hazardous Waste Management in Nebraska, Chapter 5, Section 001.04, to grant a variance for a temporary exemption from the classifying as solid waste of segregated sludges generated during wastewater treatment at the new Molex facility.

Sludges from the former combined treatment system contain copper, nickel, tin, lead, and gold. The gold content of the materials allowed Molex to handle the combined treatment sludge as "recyclable materials" from which precious metals are reclaimed under Title 128, Rules and Regulations Governing Hazardous Waste Management in Nebraska, Chapter 7, Section 010.

At the new facility, Molex will change the process lines to generate separate treatment sludges for nickel, copper , and tin/lead. The result, without the variance proposed under this Project XL, will be that these sludges will not contain precious metals and therefore 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 considerably greater expense for storage, shipment and disposal/recycling as compared to the precious metals exemption.

Molex estimates it incurred annual costs in the amount of $14,499 under the previous system for the recovery of non-precious metals. Under the new system, Molex estimates it will have net annual income of $7,632 from the sale of the separated, non-precious metals bearing sludges. Together, Molex estimates $22,131 in net annual savings, provided the regulatory relief is granted. The capital cost of the new system is approximately $150,000

DRAFT December 20, 1996,

Molex XL greater than the cost of the previous treatment system, which Molex estimates it can amortize in 9 years at a 6% interest rate.

C. Commitments/Implementation
Under the proposal, Moles seeks to handle the non-precious metal bearing sludges in essentially the same manner as the previous precious metals bearing sludge. Nebraska is authorized to operate its hazardous waste program in lieu of the Federal Program. The method that EPA and NDEQ deem appropriate to accomplish this regulatory relief is for NDEQ to grant a variance for a temporary exemption from the classifying as solid waste of segregated sludges generated during wastewater treatment, pursuant to its authority under Title 128, Rules and Regulations governing Hazardous Waste Management in Nebraska, Chapter 5, Section 001.04.

The variance being proposed by NDEQ for this Project XL is attached hereto as Attachment "A". This Final Project Agreement doe not constitute NDEQ issuance of the proposed variance. Only after public notice and comment pursuant to this FPA will NDEQ determine whether to issue the variance or modification thereto.

In addition to the commitment by Molex to operate the 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 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.

Molex will provide to EPA the same reports it provides to NDEQ pursuant to the terms of the variance. In addition, Molex will provide to EPA the waste analysis reports identified in Attachment "B" to this FPA. EPA reserves the right to require additional waste analysis based on the results of any waste analysis performed on the sludges including any testing conducted by the NDEQ or EPA. All reports submitted by Molex will be made available to the public.

Molex will perform its obligations pursuant to this variance in accordance with the EPA Quality Assurance Action Plan, attached hereto as Attachment "C".

D. Public Comment
This FPA and the proposed variance attached to it shall be made available for a public comment period of at least 30 days prior to the issuance by NDEQ of the variance or modification thereto. Notice of the public comment period shall be published in the local newspaper of largest circulation and mailed to all parties expressing an interest in the proposal. The NDEQ and EPA shall summarize any significant comments received and make them available to the public at the time the variance is issued by NDEQ.

E. Duration of Agreement, Termination and Notice

DRAFT December 20, 1996,Molex XL

The parties intend to this agreement to accomplish the described regulatory relief and change to the segregated treatment process so that the alternative compliance strategy will be a place for a two year period. The variance to be issued by NDEQ is for duration of two years. The completion of this FPA for a two year period of the alternative compliance strategy will depend on whether NDEQ re-issues the variance for a second one-year period.

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 or at such effective date as EPA or the NDEQ determines upon telephonic or other notification to Molex. Additionally, this FPA will terminate automatically upon termination of the variance to be issued by NDEQ prior to the expiration of the 24-month period above.

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.

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 he 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 Molex estimates it incurred annual costs in the amount of $14,499 under the previous system for the recovery of non-precious metals. Under the new system, Molex estimates it will have net annual income of $7,632 from the sale of the separated, non-precious metals bearing sludges. Together, Molex estimates $22,131 in net annual savings, provided the regulatory relief is granted. The capital cost of the new system is approximately $150,000 greater than the cost of the previous treatment system, which Molex estimates it can

DRAFT December 20, 1996, Molex Xl

amortize in 9 years at a 6% interest rate. Molex has the financial capacity to undertake the technical changes to implement the project.

There will be paperwork reductions due to the classification of 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 opt the Project XL objectives.

C. Stakeholder Support
The participating stakeholders are the signatories to this FPA. In addition, the Lincoln/Lancaster County Health Department and the City of Lincoln, Nebraska have supported the development of this project. Also, 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 reports submitted by Molex to NDEQ and EPA.

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 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 via the variance to be issued by NDEQ.

G. Monitoring, Reporting and Evaluating 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, pursuant to the requirements of the variance to be issued by NDEQ in conjunction with this Project XL.

DRAFT December 20, 1996, Molex XL

H. Shifting of Risk Burden
No group or media will be subject to unjust or disproportionate environmental impacts or burdens attributable to this project. The Lincoln/Lancaster County Health Department and EPA conducted a demographic study of the facility area and determined that no minority or low income populations would be adversely affected by the 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 adversely affected since the smelters will not increase their smelting activities, but only replace virgin material feedstock with recyclable material feedstock.

III. Signatories

Molex

NDEQ

EPA

ATTACHMENT b EPA WASTE ANALYSIS Within 30 days of the date of issuance of the NDEQ variance, Molex shall conduct a waste analysis on all three sludges (nickel, copper, and tin/lead) for the following parameters. This analysis will be in addition to that specified in the variance issued by the NDEQ. Constituent Analysis Chlorine Total Chromium Total and TCLP leachable; and total and TCLP leachable hexavalent chrome. Cadmium Total and TCLP leachable Cyanides Total and complexed/amenable Mercury Total and TCLP leachable Arsenic Total Barium Total and TCLP leachable Selenium Total and TCLP leachable Silver Total and TCLP leachable Gold Total Sulfides Total Antimony Total Beryllium Total Thallium Total Heating Value BTU/lb Total Organic Carbon (TOC) In the vent that TOC exceeds 500 ppm (by weight), then Molex will ensure that such set of samples is also analyzed for the following additional parameters: TCLP organic DRAFT December 20, 1966, Molex XL constituents listed in Table 1 of 40 CFR Part 261.24, with the exception of (a) the insecticides endrin, lindane, methoxychlor and toxaphene and (b) the herbicides 2,4-D and 2,4,5-TP (Silvex). If TOC exceeds 500 ppm (by weight), Molex will also demonstrate to EPA that the samples do not include greater than a 500 ppm total concentration of organic compounds listed in Part 261, Appendix VIII. All analysis will be conducted in accordance with the methods specified in 40 CFR Part 261, Appendices I, II, III.

Molex Incorporated

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