Sunday, April 26, 2015

The Arsenic Drinking Water Rule

Risk Assessment Can Never Die

Sometimes, rationality is unavoidable.  Arsenic is classified by the International Agency for Research on cancer as “Group 1: The agent (mixture) is carcinogenic to humans”.  Not only that, the primary route of exposure associated with carcinogenesis is from drinking water AND arsenic is a common contaminant in drinking water, even in the United States.  Since arsenic is not intentionally added, getting rid of it costs money.  How much money?  Well, that depends on how much of the arsenic you want to get rid of.  So, at the turn of the century, the EPA needed a real risk assessment that could justify the expenditure of real money. 
  
But there was a hitch; agency guidelines then and now more or less forbade the creation of scientifically plausible risk estimates.  Fortunately, that was also a problem money could solve: The agency hired outside help to characterize the dose-response relationship (Morales et al, 2000).  While the agency guidelines were acknowledged, they weren’t followed.  There was no default option.  Several different model options were explored.  Most of them weren’t very plausible, but at least one of them was – which given the circumstances is quite admirable.  Furthermore, that is the model the economic analysis primarily relied upon, which is very nice too.

The Cost-Benefit Analysis

In addition to making use of cost estimates for reducing arsenic levels in municipal water supplies of varying sizes, the cost-benefit analysis developed to support the 2001 arsenic drinking water rule (EPA, 2000) also estimated the reduction in risk that could be expected  by keeping arsenic concentrations below a series of possible regulatory levels.  Like the dose-response analysis, the economic analysis was done under contract outside the agency.  However, the exposure assessment portion of the risk assessment relied upon he same values used by the agency for other evaluations.  Summary results of risk reduction estimates (from section 5.4.1) are as follows:

Arsenic Level
(µg/L)
Bladder Cancer Cases Avoided Per Year
Lung Cancer Cases Avoided Per Year
3
28.6 – 76.8
28.6 - 61.5
5
25.6 – 55.7
25.6 – 44.5
10
18.7 – 31.0
18.7 – 24.8
20
9.9 – 10.6
8.5 – 9.9

In a separate analysis, the cost of implementing water purification systems that would achieve each specified level was estimated.  When calculated on a per household basis, the variation between purification costs was far more dependent on the size of the system than the target level (see section 6.3.3).  In small systems, per person costs (and water bills) were estimated to increase by over $300 per year.  In large systems serving over a million people, even the most stringent standard was estimated to carry a cost of less than $10 per person.  In addition, the relative cost of achieving lower arsenic levels only increased significantly with systems with more than 1 million people.  These differences are a result of two main factors.  First, there is an economy of scale that makes purification cheaper when to costs is borne by more users.  Second, systems with groundwater sources are more likely to need treatment in order to attain a given level; and smaller systems are more likely to come from groundwater rather than surface water. 

Cost-benefit ratios were calculated on a national basis.  This required assigning a monetary value to each cancer case avoided (aka the “Value of a Statistical Life”; see section 5.4.2) and then comparing the monetized anticipated benefits with the anticipated costs.  Since a benefit to cost ratio of 1 or greater was achieved at either 10 or 20  µg/L, but not 3 or 5 µg/L, a standard of 10 µg/L was adopted as the Maximum Contaminant Level.

An Unsafe Level

Risk assessments are approximately correct, at best.  Cost-benefit analyses are acceptable, at best.  The analysis conducted for the 2001 Arsenic Drinking Water Rule was far from perfect, but it was good enough to justify the regulation, and that wasn’t easy.  It only happened because the analysis did NOT follow current (then or now) agency guidelines that discourage the generation of credible or even plausible risk estimates.  One of the consequences of that is that the MCL for arsenic in drinking water is not “safe”, at least in the sense that the term is operationally defined by the Safety Assessment paradigm.  Nor does the MCL achieve the risk target of 10-4 (1 in 10000) that the EPA typically uses the gauge risks for contaminants in drinking water (EPA, 2012).  Therefore, using the drinking water standard to judge arsenic levels in juice or wine is wholly unjustified.  Furthermore, it is not at all clear that an FDA standard for bottled water should be the same as the EPA standard for tap water; perhaps it would be more economically feasible to just purify water that is actually drunk, as opposed to also purifiying the water is also used for bathing, washing dishes and clothes, and watering the lawn. 

Fifteen years later, just about every component of the economic analysis conducted in 2000 is in need of some revision.  But still, the risk assessment can serve as a useful template for an updated analysis.  In fact, that’s one of the great attributes of risk assessments: They are far easier to improve than safety assessments. However, one aspect of the economic analysis is perhaps in need of restructuring; estimating risk-benefit ratios on a national basis seems ill-advised.  In particular, consider the most extreme differences in costs per household:

Arsenic Level
(µg/L)
Cost Per Household
Systems with <100 Persons
Cost Per Household
Systems with > 1,000,000 Persons
3
$317
$7.41
5
$318.26
$2.79
10
$326.82
$0.86
20
$351.15
$0.15

Even though these numbers aren’t exactly comparable for a number of reasons, it seems obvious that a a cost-benefit analysis tailored to individual water systems would identify different optimum MCLs for different systems.  More specifically, it seems likely that a lower MCL could be justified for large systems, while perhaps even 20 µg/L isn’t worth it for small systems.  If the Federal government were paying for it, then maybe you could call it Environmental Justice.  But they aren’t, and therefore a national standard may be a bad deal for everybody.  [Similar arguments can and have been made for minimum wage standards and health care].

References

EPA (2000).  Arsenic in Drinking Water Rule Economic Analysis. EPA 815-R-00-026.


Morales KH, Ryan L, Kuo TL, Wu MM, and Chen CJ (2000).  Risk of internal cancers from arsenic in drinking water.  Environ Health Perspect. 108: 655–661.

Official Post Soundtrack

Young, Neil (1979).  Hey Hey My My (Into the Black).  In: Rust Never Sleeps, Track 9.


Post Notes

Thesis Post #34.  Part of Risk Management thread.

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