CPCA Regulatory Update

CPCA

Feb 15, 2011

CPCA REG UPDATE

• REGULATORY ATMOSPHERE UNDER OBAMA ADMINISTRATION

• CHEMICALS MANAGEMENT (TSCA REFORM AND STATE INITIATIVES)

• AIM COATINGS

• INDUSTRIAL COATINGS

REGULATORY ATMOSPHERE

• CHRIST COMES TO CLEANSE THE TEMPLE?– PERCEPTION VERSUS REALITY– HIGHLY DOUBTFUL OBAMA IS A LATENT

SOCIALIST-MORE LIKELY A PRAGMATIST HONED ON THE MEAN STREETS OF CHICAGO POLITICS

– BUT APPOINTMENTS TO AGENCIES? – IN ANY EVENT TEA PARTY ELECTION– DALY –HIZZONER’S SON –IS BROUGHT ABOARD– OBAMA’S EFFORT TO IDENTIFY REGS THAT

HAMSTRING US ECONOMY-ACA ACTIVELY INVOLVED

Chemicals Management

• Revision (Fundamental Reform ?) of TSCA

• Register and Use in Authorized Ways

• Precautionary Principle of REACH?– Show No Harm and Find Alternative Safer

Chemicals

US Congress “Reform” Legislation • 2010 US House and Senate legislative

proposals to amend TSCA failed to pass (or even move out of their initial committees):– Senate: The Safe Chemicals Act of 2010,

introduced by Lautenberg (D, NJ) on April 15, 2010

– House: The Toxic Chemicals Safety Act of 2010, introduced by Waxman (D, CA) and Rush, (D, IL) on July 22, 2010

US Congress “Reform” Legislation

• Prospects for 2011– Unlikely to emerge as a “priority” in the

Republican-controlled US House; unlikely to be advanced in the Senate

– Industry acknowledges that “modernization” of some aspects of TSCA is needed to reassure the public that the current system works to protect health and the environment

ACA’s Planning for 2011

• ACA serves on the steering committee for a large coalition (over 60 trade associations) called the American Alliance for Innovation (AAI) that is supporting modernizing TSCA– Includes American Chemistry Council, SOCMA, and

other allied chemical industry groups, but also organizations from the supply and value chain, including the automotive industry, electronics, retailers and consumer product manufacturers

EPA’s Current TSCA Authority

• Obama Administration TSCA Regulatory Efforts: Chemical Action Plans (CAP)– Phthalates, perfluorinated chemicals (PFCs),

polybrominated diphenyl ethers (PBDEs) in products, short-chain chlorinated paraffins, bisphenol A, benzidine dyes, nonylphenol and nonylphenol ethoxylate (NPE’s), hexabromocyclododecane, siloxanes, and diisocyanates

– ACA ready to react to specific proposals

EPA’s Current TSCA Authority

• New TSCA Inventory Update Rule (Proposed) – Seeks to expand required reporting from just

chemical manufacturers to all companies that use chemicals (detailing use and related exposures)

– ACA comments sought to regain established practice and limit the need to engage customers to get information that is “not readily obtainable”

California “Green Chemistry” Initiative

• In late 2010, environmental advocates objected to the revised regulations (too soft on industry)– CA DTSC agreed to pursue a fourth

version, – The statute required January 1, 2011

implementation date has not been met– Scope of regulation may once again

include paint.

Maine Safer Chemicals Program• “Maine Safer Chemicals Law” enacted in 2008,

requires the Maine Department of Environmental Protection (DEP) to restrict or ban the sale of children's products (and other consumer products children are likely to be exposed to) that contain "priority chemicals”.

• “Priority chemicals” chosen from a long list of "Chemicals of Concern“ published by Maine DEP in June 2009; Coatings concerns on that list include:– Bisphenol A (BPA) – Nonylphenol (NP) and Nonylphenol Ethoxylates (NPE)

• ACA continues to monitor and react to developments

South Coast Air Quality Management District (SCAQMD)

• Rule 314 – Fees for Architectural Coatings • Adopted June 6, 2008 • Imposes a fee to cover cost of the current AIM

regulatory program, including an “enhanced” enforcement program

• Fee schedule – April 1, 2009 - $0.018 per gallon and $123 per ton

VOC– April 1, 2010 - $0.027 per gallon and $185 per ton

VOC– April 1, 2011 - $0.036 per gallon and $246 per ton

VOC• Annual Quantity and Emissions Report

South Coast Air Quality Management District (SCAQMD)

• Rule 1113 – AIM Rule • SCAQMD held 4 working group meetings, Public Workshop

scheduled for January 20th, proposed amendments include: – General clean-up of the rule – Definitions – new and revised– Regulate VOC content of colorants– Possible lower VOC limits for 15 categories – Delete Averaging provision – Delete small container exemption– One year sell through

• Scheduled to go to Board in March• Very short implementation dates

SCAQMD “Paint Thinner” Rule

• The rule set an interim VOC limit of 300 grams per liter, effective Jan. 1, 2010, and a final limit of 25 grams per liter, effective Jan. 1, 2011.

• One year sell through period• Exempts paint thinners used for the thinning

of Industrial Maintenance (IM) coatings, Zinc-Rich IM Primers, and High Temperature IM Coatings (recent revisions).

Ozone Transport Commission (OTC)

• CT, DE, DC, ME, MD, MA, NH, NJ, NY, PA, RI, VT, and VA

• Several states just adopted OTC Phase I limits: MA (1/1/2009), RI (7/1/2009).

• OTC adopted the “Phase II” Model Rule (based on 2007 SCM) on June 3, 2010  

• The OTC states will now adopt this model rule in the next few years. 

Lake Michigan Air Directors Consortium (LADCO)

• Includes WI, IL, IN, MI & OH• Ohio has adopted OTC Phase I (1/1/2009) • Illinois adopted OTC Phase I (7/1/2009)• The Indiana AIM rule was adopted on 9/1/2010, with a

compliance date of 10/1/2011 • Wisconsin and Michigan waiting for National AIM

Rule Amendments

Proposed Lowering of the Ozone Standard

• January 7th, EPA proposed to lower the ozone standard (currently 0.075 ppm) down in a range between 0.060 ppm and 0.070 ppm

• 322 counties are non-compliant with the 0.075 ppm standard

• Between 515 counties and 650 counties would be non-compliant with new standard

• JULY 2011

INDUSTRIAL COATINGS

• Control Technology Guidelines (CTGs) are issued in lieu of federal regulations to control VOC emissions from facilities– Miscellaneous Metal and Plastic Parts– Auto and Light Duty Truck – Fiberglass Boats – Industrial Adhesives– Metal Furniture– Large Appliance

• In general, if the rules are consistent with the EPA CTG’s ACA does not comment – however there are issues with the Pleasure Craft CTG and the Industrial Solvent Cleaning CTG – ACA is actively advocating higher limits.

HAZARDOUS AIR POLLUTANTS

• Paint Stripping, Miscellaneous Surface Coating and Auto Refinish Area Source

• Compliance Date - January 10, 2011 • Spray application of coatings to a plastic and/or

metal substrate • Spray application of coatings to motor vehicles

and mobile equipment; • HEAVY METALS FOCUS• Requirements include painter training, high

efficiency spray equipment and spray booth collection requirements