CABINET WORKING LUNCH BUDGET UPDATE CLEAN, CLEAN WATER ACT, EPA ANNUAL REPORT, OECD DISCUSSION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84B00049R001700180002-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 12
• Document Creation Date: December 22, 2016
• Document Release Date: October 26, 2009
• Sequence Number: 2
• Publication Date: May 19, 1982
• Content Type: MEMO

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ExDir
Cabinet Luncheon
21 May 1982, 12:00
NSC Review Completed as Redacted.
Please return to:
SA/DCI/IA
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ES/,-; i 147
19. May .1982
E ORA,jC,,,t FOR: See Distribution
SUBJECT Meetings
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Full Cabinet Working Lunch
Thursday, 20- M'ay -
12:00.- 1:30
Cabinet Room'
President
Budget Update
omic Developing).
Pl ace
Chaired By
Principal Only?
Subject/Agenda
OECD Discussion (Organiza
Clean water
.EPA Annual Report
~ihen to * Expect Papers.:
None expected
Tine Info Received Per Patsv, 3:55 p:m.
Anne
STAT-
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FROM: JAMES G. WATT, CHAIRMAN PRO TEMPORE
CABINET COUNCIL ON NATURAL RESOURCES AND ENVIRONMENT
ISSUE: What Amendments to the Clean Water Act should the
Administration Propose?
BACKGROUND
Authorization for the Clean Water Act expires on September 30,
1982.
Changes for Title II, the Construction Grants Program, were
signed into law on December 29, 1981. The remaining titles,
for which the authorization expires this year, cover the Act's
goals; enforcement, permitting and technology requirements for
industrial discharges of pollutants into the nation's waters;
and a permit program for the protection of the nation's
wetlands.
Although authorization expires on September 30th, monies will
nevertheless be appropriated to continue the current law. The
Senate. Environment and Public Works Committee will continue to
hold hearings on this legislation, but the Committee may not
report out a bill this year, given the limited number of
legislative days remaining.
Cabinet Council Action
The Cabinet Council uniformly agreed to the following
recommendations:
o Reauthorize the Act for five years.
o Extend the life of the municipal and industrial discharge
permits from five to ten years. Municipalities and
industries must presently renew their permits every five
years.
o Clarify certain enforcement provisions regarding criminal
penalties and inspections.
o Extend the Presidential exemption of federal facilities
during a time of national emergency from one year to
three years; expand facilities which can qualify to
include new federal facilities and those which discharge
toxics.
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o Exempt dams from requirements for discharge permits.
A recent court case now forces EPA to regulate over two
million dams by requiring discharge permits for their
operation. Only a small number are actually believed
to cause water quality problems.
o Give the Administrator of EPA flexibility to reduce
federal control over the industrial discharge of
pollutants into municipal sewage treatment works by
allowing her discretion to determine whether industrial
treatment. controls are necessary and by giving munici-
palities more authority to control discharges into their
own treatment works if those municipalities are meeting
Clean Water Act requirements.
o Extend from 1984 to 1988 the deadline for industrial
compliance with technological requirements for the
removal of toxics. EPA has as of yet promulgated no
regulations for these requirements. Thus, the 1984
deadline is virtually impossible to meet.
o Leave unchanged, for the time being, the areas covered
under the bill's wetlands protection program which covers
"all waters of the United States," including marshes,
bogs and swamps. Because efforts to narrow the program
are highly controversial (the Senate Committee and
Subcommittee Chairmen and Senate Majority Leader are
opposed) and because the Administration has no clear
proposal to limit the progrant, the Cabinet Council
agreed to defer legislative change for the time being,
while the Regulatory Relief Task Force reviews proposals
to streamline the program administratively.
Waiver for Industry from Additional Control Requirements
The Cabinet Council gave special attention to the issue of
allowing a case-by-case waiver for industry from further
requirements to control toxics.
The Clean Water Act requires all industries which discharge
toxic pollutants to apply special technological controls (Best
Available Technology Economically Achievable) for the removal
of those pollutants. Industries must apply these controls even
though some of them have largely removed the toxic pollutants
through less costly technology already required for the removal
of non-toxics, and already in place. The law does not permit
the Administrator to waive these requirements, regardless of
whether an industry's discharges would have no negative effect
on the quality of the receiving waters.
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Last February, the Cabinet Council agreed to an EPA proposal
to provide a case-by-case waiver from the requirements. The
purpose of the waiver system was to ensure that regulatory
burdens are imposed only where necessary and cost-effective.
Thus, the Cabinet Council clearly endorsed the concept of
avoiding "treatment for treatment's sake." At the April 22nd
Cabinet Council meeting, EPA recommended dropping the waiver
and limiting the reforms for this requirement to an extension
of compliance deadlines. In EPA's view:
o The Administration does not have sufficient evidence on
which to base a need for awaiver, since no regulations
requiring this technology are yet in place.
o It is politically unsaleable. Key Senate Committee
members oppose it and, although there is some sympathy
for it on the House Committee, no one is willing to carry
it. Overt relaxation of toxics control implied by a
waiver amendment will generate further anti-environmental
accusations against the Administration.
o EPA has the discretion to determine the stringency of the
technology standard by regulation.
The law provides the EPA Administrator the discretion to
determine the level of additional controls required. The agency
contends that when final regulations are established, the level
of stringency will be less than industry presumes. Only the
steel' regulation is close to being proposed. However, using
steel as an example, EPA estimates that this Administration's
steel regulations will cost $300 million or less (this cost
reflects other regulations as well) compared to the last Admini-
stration's proposal of $1.8 billion. Even though environmen-
talists may sue on the grounds that more stringent technologies
are available, EPA maintains that the control levels it plans to
propose will stand up in Court because the statutory standard is
"Best Available Technology Economically Achievable."
On the other hand, should EPA lose court cases on many of these
regulations, there will be no back-up to avoid unnecessary
treatment. Most industry groups, particularly iron and steel,
chemical manufacturers, American Petroleum Institute, and the
Business Roundtable support a waiver, fearing that further
control requirements could potentially pose enormous costs for
an additional five to ten percent of removal. Moreover, state
water pollution control agencies are seeking relaxations in
several aspects of the current law greater than those which the
Administration is proposing. These state agencies, in
particular, are looking for flexibility in the BAT process
through changes in the law.
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Lastly, the environmentalists will criticize any relaxation of
the Clean Water Act, as they already have, so the absence of a
waiver will not prevent environmental opposition, although a
waiver may generate more strident opposition.
Nevertheless, EPA firmly believes that since it has no evidence
on which to base the need for a waiver, such a proposal will
only engender acrimonious debate, and jeopardize other changes
we are seeking in the current law.
Thus, the Cabinet Council agreed to defer to EPA's concerns,
recognizing that if a future case can be made for a waiver
during Congressional debate, the Administration will not oppose
it, since a waiver from unnecessary controls comports with
Administration philosophy. The Cabinet Council also agreed that
if no waiver provision results from Congressional action, EPA
should conduct a systematic cost/benefit analysis over the next
three years to establish a basis for seeking a waiver or for
eliminating the requirement altogether in the future.
ACTION
1. Defer to EPA political concerns and propose no waiver.
2. Accept Cabinet Council recommendations on remainder of
issues.
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THE WHITE HOUSE
WASHINGTON
CABINET AFFAIRS STAFFING MEMORANDUM
DATE: 5/19/82
for 60 minutes is as follows: 1. EPA Annual Report
2. Clean Water Act
3. Budget Update
4. OECD Discussions
SUBJECT: Cabinet Working Lunch
ALL CABINET MEMBERS
Vice President
State
Treasury
Defense
Attorney General
Interior
Agriculture
Commerce
Labor
HHS
HUD
Transportation
Energy
Education
Counsellor
OMB
USTR
REMARKS:
?-s
rya
NUMBER: 068971 CA
ACTIO FYI
ACTION FYI
Baker ^ ^
Deaver ^/ ^
Clark l~f/ ^
Pl ^
Darman (For WH Staffing)
Harper ^
Jenkins ^
Gray ^ ^
^ ^
^ ^
^ ^
^ ^
^ ^
^ ^
CCCT/Kris- Grtd iJ ^ tr
CCEA/Porter ^
CCFA/Boggs ^ ^
CCHR/Carleson ^ ^
CCLP/Uhlmann ^ ^
CCNRE/Boggs ^
The agenda for tommaw's Cabinet Working Lunch scheduled for 12:00 pm
The only back up material is the attached decision memorandum on the
RETURN TO: ^ Craig L. Fuller Becky Norton Dunlop
Assistant to the President Director, Office of
for Cabinet Affairs Cabinet Affairs
456-2823 456-2800
DUE BY:
rn
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FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
Address : 2 rue Andre Pascal, 75775 Paris Cedex 16
Telephone : (Paris) 524 82 00 Cable : Developeconomie
... Telex: 620160,
MEMBERS
Australia, Austria, Belgium, Canada, Denmark, Finland,
France, Germany, Greece, Iceland, Ireland, Italy, Japan,
Luxembourg, Netherlands; New Zealand, Norway, Portugal,
Spain, Sweden, Switzerland, Turkey, United Kingdom. and
Yugoslavia participates in the work of the Organisation with
a special status.
ESTABLISHED
30th September 1961 by the Convention on the Organisation
for Economic Co-operation and Development (signed 14th
December 1960) ; successor body to Organisation for Euro-
pean Economic Co-operation (OEEC), established 16th April
1948.
Promote economic and social welfare throughout the OECD
area by co-ordinating Member countries' policies to this end ;
contribute to the good functioning of the world economy
notably by stimulating and harmonising its Members' efforts
in favour of developing countries.
The supreme body of the Organisation is the Council com-
posed of one representative for each Member country. It
meets either at Heads of Permanent Delegations level (about::
once a week) under the Chairmanship of the Secretary-
General or at Ministerial level (usually once a year) under
the Chairmanship of a Minister elected annually. Decisions
and Recommendations are adopted by mutual agreement of
all members of the Council.
latter.
As the Organisation's activities cover practically all aspects,
of economic and social policy, the major part of its work is.
prepared and carried out in numerous specialized committees
Thus, the Organisation comprises Committees for Economic
Policy ; Economic and Development Review ; Development
Assistance (DAC) ; Trade ; Invisible Transactions ; Financial
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Markets ; Fiscal Affairs ; Restrictive Business Practices ; Con-
sumer Policy ; Tourism ; Maritime Transport International
Investment and Multinational Enterprises ; Energy Policy ;
Industry ; Steel ; Scientific and Technological Policy ; Educa-
tion ;? Manpower and Social Affairs ; Environment ; Agricul-
ture ; Fisheries, etc. Moreover, there exists a High Level
Group on Commodities.
The various. committees and other bodies are, as a rule
composed of civil aarvantscoming either from capitals or
from the Permanent Delegations to OECD which are esta-
blished as normal diplomatic missions and are headed by
Ambassadors. They are serviced by an international Secre-
tariat (headed by the Secretary-General of the Organisation),
the structure of which is geared to the requirements of these
Autonomous and semi-autonomous bodies set up
i in the framework of the Organisation
THE OECD INTERNATIONAL
ENERGY AGENCY (IEA)
The International Energy Agency is an autonomous body which
was established in 1974 within the framework of the OECD to
implement the International Energy Programme adopted by the-
It carries out a comprehensive programme of energy co-operation
among twenty-one of the OECD's twenty-four Member countries,
e co-operation among IEA Participating Countries to reduce
excessive dependence on oil through conservation, develop-
ment of alternative energy sources and energy research deve-
lopment ;
? an information system on the international oil market as well
as consultation with oil companies
? co-operation with oil producing and other oil consuming
countries with a view to developing a stable international energy
trade as well as the rational management and use of. world
energy resources in the interests of all countries ;
? a plan to prepare Participating Countries against the risk of a
major disruption of oil supplies and to share. available ~ oil in the
f
event o
an emergency.,
Canada, Denmark, Germany, Greece, Ireland, Italy. Japan, Luxembourg,
Netherlands, New Zealand, Norway, Portugal, Spain, Sweden," Switzer
land, Turkey, United Kingdom, United States.. The Commission of the -
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THE OECD NUCLEAR.,,.
ENERGY AGENCY (NEA)
Set up in 1958 (as European Nuclear Energy Agency),. the Nuclear
Energy Agency now groups all Member countries of OECD, except
New Zealand.
Objectives : The main purpose of the Agency is. to promote inter
national co-operation within the OECD area for the development.
and application of nuclear power for peaceful purposes through
international research and development projects and exchange of
scientific and technical experience and information. The'Agency
also maintains a continual survey, with the co-operation of other
organisations, notably the International Atomic Energy Agency
(IAEA); of world uranium resources, production and demand, and
of economic and technical aspects of the nuclear fuel cycle!
An expanding part of the Agency's work is devoted to safety and
regulatory aspects of nuclear energy : safety of installations, radia-
tion protection, radioactive waste management and.the setting up,
of a uniform legislative regime for nuclear. liability and insurance.
THE OECD
The Development Centre of the Organisation for Economic Co-ope-
ration and Development was established by decision of the OECD
Council on 23rd October 1962.
The purpose of the. Centre is to bring together the knowledge and
experience available in Member countries of both. economic deve-
lopment and the formulation and execution of general policies of
economic aid ; to adapt such knowledge and experience to the
actual needs of countries or regions in the process of development
and to put the. results at the disposal of the countries by appro-
priate means.
The Centre has a special and autonomous position within the
OECD which enables it to enjoy scientific independence in the,
execution of its task. Nevertheless, the Centre can draw upon- the
experience and knowledge available in the OECD in the develop-
ment field.-
RESEARCH AND INNOVATION (CERI)
1968 to promote and assist the development of research .activities
in the field of education, and to carry out advanced. experiments -
designed'.to test innovations in education and stimulate research :
and development.
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kK tell
THE EUROPEAN CONFERENCE
OF MINISTERS OF TRANSPORT (ECMT)
The ECMT is an inter-governmental organisation indepen-
dent from OECD, but its Secretariat is attached, from an
established by a Protocol signed in Brussels on.l7th October
1963, constitutes a forum for the Ministers of Transport of
is prepared by a Committee of Deputies. ,
The purposes of the Conference are
a) to take whatever measures may be necessary to achieve, at
general or regional level, the most efficient use and rational-
development of European inland transport of international
importance ; =.-- .
organisations concerned with European. inland transport,.
i
i
i
n
es
t
taking into account the work of supranational author
this field.
Major problems which are being studied.by' the ECMT in-
clude : transport policy ; the financial situation and organisa-
tion of railways and road transport ; problems concerning
inland waterway transport and, combined transport ; develop-
ment of European trunk lines of communication ; problems
concerning urban transport ; the prevention of road accidents
and co-ordination, at European level, of road traffic rules and
road signs and signals ; traffic trends and long-term traffic
forecasts. '
Their vconclusions are considered by.the competent. organs -
of the Conference, under the authority of the Committee of
Deputies, so that the latter may formulate proposals for policy
decisions to be submitted to the Ministers....-.-.._M
In addition, the ECMT is equipped with a computerised Docu-
mentation Center to which inquiries concerning transport eco
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