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The sludge we produce at our plants is processed in 
digestion facilities -- which reduce the problem of pathogen 
contamination and generate useful waste energy -- and is dis- 
posed of in an area of the New York Bight lying 12 miles south 
of Long Island. This dumping is regulated by EPA, which imposes 
various operating requirements on us in order to minimize the 
environmental impact. 
In 1977, the Congress amended the Act to create a deadline 
of December 31, 1981 for cessation of the ocean disposal of 
sludge which unreasonably degrades the marine environment. Upon 
enactment of this amendment, New York City proceeded to develop 
a land-based alternative to ocean disposal of sludge, involving 
the construction and operation of facilities at various locations 
in the City, which would convert sludge to compost. By early 
1981, the City had completed the final design of these facilities. 
However, this program provided only a temporary, interim alterna- 
tive, in view of the scarcity of land available in New York City 
to which contaminated compost might be applied, and the inability 
of the eiley to condemn property beyond its borders for sludge 
disposal purposes. Our experts estimated, in fact, that we would 
have to find some alternate means of disposal within seven years. 
This interim solution would have cost federal, state and local 
governments approximately $335 million to construct, with 753 to 
be federally funded under the Wastewater Treatment Construction 
grants program. Under the scaled back program authorized by the 
Congress last year, these expenses are greater than the entire 
