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• Retail Sector approximately 8% of U.S. GDP
– Consumer Products throughout economy
• Walmart is the world’s largest retailer
– Our mission is to save people money, so
they can live better
– Serve customers more than 200 million
times/week
– 9,000 retail units in 15 countries
– Employ more than 2 million associates
worldwide
– 4,300+ domestic stores/clubs/pharmacies
and other facilities
– 3rd largest pharmacy
– 3% of all corporate income taxes that were
collected by the U.S. Treasury
Walmart Confidential Business Information
About Walmart and the Retail World
3
RCRA Regulation of Consumer Goods
Walmart Confidential Business Information
* Approximates
0.5% of 1.7 billion
regulated items
sold are managed
as Hazwaste by
Walmart
(10 Million)
100 Billion Items
Sold to Consumers
0.01% managed as
Hazwaste by Walmart
(10 Million)
1.7% of 100 Billion
Items Sold are RCRA
regulated if waste
(1.7 Billion)
(HHW Exemption)
Solid Waste
Hazardous
Waste
4
• Pharmacy Universal Waste Rule
• Consumables and Personal Care products
• Aerosols
• Electronics
• Waste Characterization
• Reverse Distribution
• Overbagging FIFRA Pesticides
Walmart Confidential Business Information
Meeting Topics
5
A fundamental question underlies most of the
topics we are going to discuss today:
When does a consumer product become a solid
waste in the retail sector, especially for reverse
distribution systems?
The little guidance that exists is often contradictory.
Regulations should have the same meaning
regardless of product type, yet there is no discernable
common logic or principle for retailers to follow. EPA
seems to be taking a compartmentalized approach to
the question, answering it differently based on the
product at issue. Yet, at the same time, EPA and
States have taken aggressive enforcement actions
targeting major retailers.
Walmart Confidential Business Information
Consumer Products and Solid Waste
6 Walmart Confidential Business Information
Manufacturer
Data
Genco / CaptialReturns
GencoSystem
Store/Club
Pharmacy Dispostion
Return to Genco/Capital
Returns
Walmart Pharmacy Hazardous Waste Program
Hazardous
Identification
Loose / Unidentified Pills
Damaged / Leaking
Manage as Hazardous
Waste
Valuable
+
Viable
Nationwide Reverse Distribution Program Model
7 Walmart Confidential Business Information
EPA proposed Universal Waste Rule –73 Fed. Reg. 73520 (Dec. 2, 2008)
“Facilitate better management of pharmaceutical
wastes…”
“Ensures that these hazardous pharmaceutical
wastes are properly disposed of and treated as
hazardous wastes.”
“…opportunity for all pharmaceutical
wastes, hazardous or not, to be managed as a
single waste stream.”
“…reverse distribution system for
pharmaceuticals helps ensure that unused and
expired pharmaceuticals do not get diverted to
inappropriate uses, and that the returned
pharmaceuticals, are managed appropriately.”
Pharmaceutical Universal Waste Rule
8 Walmart Confidential Business Information
. . .any chemical product. . . that is intended to affect the
structure or function of the body in man or other animals.
Pharmaceutical UWR (Consumables and Personal Care)
This proposed definition is meant to
include, but is not limited to, pills or
tablets, medicinal gums or lozenges,
medicinal liquids, ointments and lotions,
intravenous (IV) or other compounded
solutions, chemotherapy drugs, vaccines,
allergenics, medicinal shampoos,
antiseptics and medicinal dermal patches
. . .any chemical product. . . that is intended for use in the
diagnosis, cure, mitigation, treatment, or prevention of
disease or injury in man or other animals.
“Well, if it goes in your coffee, it is not hazardous waste.”
President Obama, Wall Street Journal, Jan. 18, 2011 at A17.
9 Walmart Confidential Business Information
Pharmaceutical Universal Waste Rule
•Provide clarification on management of empty warfarin
bottles:
(P001) Warfarin & salts, when present at
concentrations greater than 0.3%
• What/When does present mean?
• If 0.3% present applies to residue, then should
count the residue weight only.
• If 0.3% present applies to waste item (i.e.
container and residue) then U248.
• Analysis shows ≈ 1 mg residue in container
• If 0.3% present applied to residue, but using container
weight, only takes 65 bottles to become LQG !!!
10 Walmart Confidential Business Information
• Aerosol contribution to Walmart’s hazardous waste stream
• 45% (item basis)
• 36% (weight) or 4.3 million lbs in 2010
•Approximately 20% contain non-ignitable propellant and non-hazardous product
800,000 lbs of hazardous waste eliminated if deemed non-reactive
• Approximately 77% have ignitable propellant and non-hazardous product
40 CFR 261.2(c)(2)(ii) – Burning fuels for energy recovery
3.3 million lbs of hazardous waste eliminated if fuels recovered
Potential to legitimately recycle 97% of aerosols, leaving only 3% of aerosols as
hazardous due to hazardous contents.
Aerosols
11 Walmart Confidential Business Information
• Definition of Reactive in 40 CFR 261.23(6)
It is capable of detonation or explosive reaction if it is subjected
to a strong initiating source or if heated under confinement.
Reddi-Wip Example (from MSDS)
Exposure of cans to temperatures over 120°F may cause bursting.
Pressurized containers may explode in heat and should be removed
from fire if possible.
Waste Disposal Method: Contents of can under pressure, do not
puncture or incinerate. Dispose of cans in accordance with local or
federal laws and regulations.
Aerosols
• EPA unable to determine if aerosols are reactive
(RO-11782 / RO11806)
12 Walmart Confidential Business Information
• EPA determined that .50 caliber bullets are not reactive
(RO-13712)
The Agency has maintained that small arms
ammunition intended for disposal, up to and including
.50 caliber, is not reactive within the meaning of 40
CFR 261.23(a)(6).
Olin/Winchester Example (from MSDS)
CAUTION! EXPLOSIVE. KEEP AWAY FROM HEAT. DO
NOT SUBJECT TO MECHANICAL SHOCK.
Risk of explosion by shock, friction, fire or other sources of
ignition
Aerosols
13 Walmart Confidential Business Information
Electronics Management
What are the rules for electronics?
Confusion everywhere!
• What are electronic wastes?
• When are they wastes?
• Are they hazardous waste?
•Some are exempt when recycled
• CRTs - 40 CFR 261.4(a)(22)
• Circuit Boards - 40 CFR 261.4(a)(14)
• Unused CCPs – 40 CFR 261.2(c)(3)
• RO - 14012 (1996)
• RO - 11726 (1993)
• States classify some as universal waste (CEDs)
•No consistency and non-CEDs are
more troubling
• Current exemptions and State UW rules only tip of iceberg
14 Walmart Confidential Business Information
Electronics Management (Retail is more than TVs, laptops, and cell phones)
15
•EPA s Regulatory Program for “E-Waste” (PPT on EPA website)
Robert Tonetti, EPA Office of Solid Waste (Oct 2007)
Because obsolete electronics are often capable of reuse, they are not considered
wastes until a decision is made that they cannot or will not be reused. . . Such
decisions are made by persons with specialized expertise (unless destruction
specified) i.e. resellers & recyclers
This allows collection to occur without regard to waste rules.
Walmart Confidential Business Information
Electronics Management
• RCRA Regulations for Electronic Materials that are Reused or Resold (RO –
14668)
While used electronics sent to a reseller are not solid wastes, used electronics sent to a
recycler could, under certain circumstances, be considered spent materials undergoing
reclamation and could therefore be solid wastes. However, EPA believes that in some
instances, electronics sent for recycling do not resemble spent materials.
• Proposed DSW rule change
• National Strategy for Electronics Stewardship
16 Walmart Confidential Business Information
The Confusing World of Characterizing Consumer Products
A typical Walmart Supercenter contains over 500,000 individual items (SKUs)
•Are all retailers characterizing wastes?
• Can they?
•If so, how?
• MSDS – not required to identify
as HW or give full information
• TCLP – On everything?
• 3rd Party – expense
•If not, “major/major” RCRA violation?
•Creates unlevel playing field
17 Walmart Confidential Business Information
• Generator Status
•Retailers are “Episodic” by nature.
• Customer returns or damages in store
or transportation.
•Status is always determined after the fact.
• Averaging?
Waste Characterization Issues
Facility Jan Feb March April May June July Aug Sept Oct Nov Dec
Supercenter 57 102 162 305 171 149 222 92 174 85 92 70
Supercenter 113 141 106 263 254 443 145 95 262 157 127 82
Supercenter 98 147 231 89 84 149 151 78 282 158 266 3
18 Walmart Confidential Business Information
• What is “the waste”?
• What is proper characterization
for typical retail multi-pack
products?
Waste Characterization Issues
19 Walmart Confidential Business Information
Supplier
DataWERCs
HazTrackerStore/Club
R-Log Return Center
RTV
Donation
Liquidation
Reverse Distribution
MSDS
Formulation Data
Hazardous
Identification
HazWaste
Item Tracking
HazWaste
Item Tracking
Walmart Reverse Distribution Process Flow
20
Walmart Reverse Distribution Operations
•Six Return Centers across the country
(SC, TX, NY, AR, IN, NV)
•Waste Management, Inc. now operates Sortation Room
and manages hazardous waste
Walmart Confidential Business Information
Reverse Distribution
21
R-Log System tracks disposition of products entering Return Centers
• 98%+ receive credit
• 95% non-waste
• Less than 0.1% of item dispositions is hazardous waste
Dispositions tracked include:
• Return to Vendor
• Charity
• Resale (Liquidation)
•Waste
Walmart Confidential Business Information
Reverse Distribution
22 Walmart Confidential Business Information
When does a consumer product become a solid waste in
the retail sector, especially for reverse distribution systems?
Reverse Distribution
• Retailers want consistency and want to know the rules!
• When/Why does a purple couch become a solid waste for the retailer?• Sold to Customer?
• Returned by Customer?
• Sent by retailer to centralized collection point?
• Returned to the manufacturer?
• Sent by manufacturer to another party?
• Waste-like condition?
• Viable when sent even if thrown away?
• Creditable (resold) even if thrown away?
23
• Walmart to meet with RILA to discuss outcome of this meeting.
• Walmart would like to engage larger retail community in the
dialogue with EPA.
• There is significant interest in these issues within the retail
community and it is growing.
• Participate in any way EPA feels Walmart and other retailers can
help inform decisions related to the issues presented.
• Ask that EPA finalize draft guidance regarding p-listed pharmacy
bottles and address Walmart’s outstanding FIFRA Overbagging
proposal.
• Discuss potential resurrection of Consumer Product Universal
Waste Rule.
Walmart Confidential Business Information
Next Steps