Since nobody has posted questions for this one, let me take a crack on this and give my two cents
Basically, the stimulus tells us that a federal law permits a company to dispose of XTX in a dump on the condition that the concentration is below 500. Wastes with concentration above that level must be incinerated. A further provision disallows any attempt to dilute XTX (This is also what the question stem refers to as the anti-dilution provision of the law)
A. First, the phrase "improperly incinerated" tips me off. We do not have enough information as to how risky the incineration is or whether the waste would be improperly dealt with at all. Second, it goes against the first provision, not the second one that the question asked.
B. This looks good but a little weak. So the law-makers takes into account the potential accumulation of XTX. That's why they don't let the companies to dilute the pollutant.
C. "Exposed to sunlight and oxygen"... huh...Honestly, we don't know about what the environment a waste dump has. Will there be sunlight and oxygen? We don't know. Moreover, this actually weakens the anti-dilution provision, because it points out that XTX will break down under the influence of sunlight and oxygen, thereby weakening the provision.
D. OK, most owners of dumps will accept XTX with 800-and-below concentration. But why the heck does the law not like dilution? It does not argue in favor of the antidilution provision. Therefore, we eliminate it.
E. This one gives us a cost comparison, which I don't see the impact it has on the argument. Probably some of you think different from me. Let me know if there is concern for this guy.