(From EPA website)

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Fertilizers Made From Domestic Septage and Sewage Sludge (Biosolids)    

Biosolids are the treated residuals from wastewater treatment that can be used beneficially. Wastewater
residuals (formerly sewage sludge)
would not be known as biosolids unless they have been treated so that they
can be beneficially used.

Years of research and practice have repeatedly demonstrated that biosolids recycling is safe and the food crops
grown on land fertilized with biosolids are
safe to eat. The long-term practice of recycling biosolids has been
subjected to more than
30 years of intensive careful study. As a result of research and practice showing the
safety of biosolids recycling, the U.S. Department of Agriculture, the Food and Drug Administration, and EPA
issued a joint policy statement in 1981 that endorsed the use of biosolids on
land for producing fruits and
vegetables. Then, in 1984, EPA issued a policy statement in the Federal Register that encouraged and
endorsed the recycling of biosolids. And
again in 1991, EPA was a co-endorser of an Interagency Policy placed
in the Federal Register regarding the benefits of using biosolids.

The Federal rule that governs the use of biosolids today is based on comprehensive science-based risk
assessments and many rounds of extensive review. Additional confirmation of the validity of the Federal
biosolids rule and the Federal policy that promotes the beneficial recycling of biosolids is the careful 3-year
review by the prestigious
National Research Council (NRC) of the National Academy of Sciences which took
place after the promulgation of the rule. The NRC concluded in their 1996 report that the use of biosolids in
accordance with existing Federal guidelines and regulations presents
negligible risk to the consumer, to crop
production, and to the environment.

EPA offers guidance and technical assistance for the beneficial recycling of biosolids as soil amendments and
fertilizer. The use of these valuable materials can enhance water quality, pollution prevention, and sustainable
agriculture.

Sewage sludge that is used in agriculture is
regulated under the Clean Water Act, and is currently subject to
concentration limits for the metals
arsenic, cadmium, copper, lead, mercury, molybdenum, nickel, selenium,
and zinc.
http://www.epa.gov/agriculture/tfer.html#Fertilizers%20Made%20from%20Domestic%20Septage%20and%20
Sewage%20Sludge%20(Biosolids)