Legislative and Regulatory Developments With Respect to Chemicals & Products Squire Patton Boggs’ Environmental, Safety & Health Practice in Conjunction with the Ohio Chemistry Technology Council August 8, 2014
AGENDA 9 a.m. – Welcome & Introductions Karen A. Winters, Environmental, Safety & Health Practice Group Leader, Squire Patton Boggs (Columbus) Jenn Klein, President, Ohio Chemistry Technology Council 9 a.m. – Congressional Efforts To Reform TSCA The Honorable Bill Johnson, United States House of Representatives (Washington DC) 10 a.m. – Regulatory Developments under TSCA Stephen A. Owens, Squire Patton Boggs (Phoenix & Washington DC) 10:45 a.m. – Break 11 a.m. – A Review of REACH Enforcement in Europe and Environmental Enforcement Trends in the UK David Gordon, Squire Patton Boggs (Birmingham) Rob Elvin, Squire Patton Boggs (Manchester) squirepattonboggs.com squirepattonboggs.com 2 2
AGENDA Noon – Luncheon Presentation David Mustine, Senior Managing Director for Energy, Polymers and Chemicals, JobsOhio 1:15 p.m. – Chemical Sector Enforcement Litigation Vincent Atriano, Squire Patton Boggs (Columbus) 2 p.m. – The “Greening” of California’s Green Chemistry Initiative Chris M. Amantea, Squire Patton Boggs (Los Angeles) 2:30 p.m. – Closing Remarks squirepattonboggs.com squirepattonboggs.com 3 3
Congressional Efforts to Reform TSCA The Honorable Bill Johnson United States House of Representatives (Washington DC) squirepattonboggs.com squirepattonboggs.com
Regulatory Developments Under TSCA Stephen A. Owens, Squire Patton Boggs (Phoenix & Washington DC) squirepattonboggs.com squirepattonboggs.com
Some Issues to Consider Is a chemical substance that is being manufactured, imported or processed regulated by TSCA? Is the chemical on the TSCA Inventory? Public portion Confidential portion If it is not on the TSCA Inventory, does a Pre-manufacture Notice (PMN) have to be filed with EPA? Is the chemical substance subject to one of the PMN exemptions? Is the chemical substance actually a mixture? Is the chemical substance being imported as part of an article? Are the uses of the chemical substance limited? Section 5 consent orders Significant New Use Rules (SNUR) Section 6 rules squirepattonboggs.com squirepattonboggs.com 6 6
Current TSCA Reform Legislation Chemical Safety Improvement Act (S. 1009) Introduced May 22, 2013 by Senators Frank Lautenberg (D-NJ) & David Vitter (R- LA) with 25 bipartisan cosponsors • April 2013 – Senator Lautenberg had introduced S. 696, the “Safe Chemicals Act of 2013” Hearing held in Senate EPW Committee on July 31, 2013 Chemicals in Commerce Act (H.R. ____) Multiple hearings held on TSCA reform issues by the House E&C Subcommittee on Environment & the Economy U.S. House discussion draft released in February 2014 by Rep. John Shimkus (R- IL) (subcommittee chair) • Revised discussion draft released in April 2014 • Democratic redline edits released in May 2014 Bill not yet introduced squirepattonboggs.com squirepattonboggs.com 7 7
Chemical Safety Improvement Act & Chemicals in Commerce Act Key aspects of both bills: Set a safety standard for new and existing chemicals Require EPA to make a safety determination for existing chemicals in commerce Require EPA to prioritize existing chemicals (as high or low priority) for evaluation Require EPA to designate existing chemicals as active or inactive Require EPA to consider vulnerable subpopulations in evaluating chemicals Give EPA authority to issue orders to require testing of chemicals Eliminate the “least burdensome” language for chemical restrictions Put limits on confidential business information (CBI) claims Allow EPA to share CBI with states squirepattonboggs.com squirepattonboggs.com 8 8
Chemical Safety Improvement Act & Chemicals in Commerce Act Comments made by critics about both bills: Use an “unreasonable risk under intended conditions of use” standard Have language preempting state regulation of chemicals under various circumstances (and CSIA has language affecting state tort actions) Do not set deadlines for EPA action Do not require a minimum data set for chemicals Do not require quick action on the “worst” chemicals (i.e., PBTs) Do not adequately protect vulnerable populations Require a form of cost-benefit analysis for chemical restrictions Require EPA to develop multiple policies and guidance documents, subject to notice and comment, before taking various actions Limit EPA’s ability to declassify existing CBI claims Do not provide a source of increased funding to EPA squirepattonboggs.com squirepattonboggs.com 9 9
Toxic Substances Control Act (TSCA) Enacted in 1976 Signed into law by President Gerald Ford Applies to chemical manufacturers, importers and processers Covers chemical substances and mixtures, but does not regulate: Substances that are regulated as pesticides under the Federal Insecticide, Fungicide & Rodenticide Act (FIFRA) Drugs, cosmetics and other items regulated under the Federal Food, Drug & Cosmetic Act (FFDCA) Material regulated under the Atomic Energy Act (AEA) Tobacco and tobacco products Articles taxed under § 4181 of the Internal Revenue Code (firearms & ammunition) Requires EPA to coordinate with, and sometime defer to action by, other federal agencies (e.g., FDA, CPSC) squirepattonboggs.com squirepattonboggs.com 10 10
TSCA Requirements In general, if a chemical substance is not listed on the TSCA Inventory, it cannot be produced, distributed, sold or imported in the US. Roughly 85,000 substances are listed on the TSCA Inventory With certain limited exceptions, any person who “manufacturers for commercial purpose” any “new chemical substance” must file a premanufacture notice (PMN) for that substance with US EPA. A “new chemical substance” is any substance that is not listed on the TSCA Chemical Substance Inventory (TSCA Inventory) EPA has 90 days to review a PMN Exemptions: research and development (R&D); low volume (LVE); test marketing (TME); low environmental release and human exposure (LoREX); certain polymers Exceptions: mixtures; imported articles squirepattonboggs.com squirepattonboggs.com 11 11
Key TSCA Provisions Section 5: Manufacturing and Processing Notices PMNs & SNURs Section 6: Regulation of Hazardous Chemical Substances and Mixtures Authorizes EPA to take a range of actions to control a chemical hazard that “presents or will present an unreasonable risk of injury to health or the environment.” Section 4: Testing of Chemical Substances and Mixtures Gives EPA limited authority to require development of test data on existing chemicals Section 8: Reporting and Retention of Information § 8a reporting § 8d health & safety studies § 8c records of significant adverse reactions to health or the environment alleged to have been caused by the substance or mixture § 8e “substantial risk” information Section 12: Exports Must give notice to EPA before certain substances can be exported Section 13: Imports Must file certification that substance complies with TSCA or is not subject to TSCA squirepattonboggs.com squirepattonboggs.com 12 12
Recent EPA Actions under TSCA Ten Action Plans issued in 2009 - 2010 Increasing use of Section 5 Significant New Use Rules (SNURs) for both new and existing chemicals April 2013 GAO report: from 2009 to 2012, EPA issued SNURs affecting 540 chemicals (25% of the 2,180 chemicals subject to SNURs issued since 1976) New Chemical Data Reporting (CDR) Rule (August 2011) Priority list of 83 “work plan” chemicals announced for risk assessment and potential risk management (March 2012) Draft risk assessments on five of the chemicals released for public comment in January 2013: Antimony Trioxide (ATO) (CASRN 1309-64-4); 1,3,4,6,7,8-Hexahydro-4,6,6,7,8,8,- • hexamethylcyclopenta[g]-2-benzopyran (HHCB) (CASRN 1222-05-5); Methylene Chloride (or dichloromethane (DCM)) (CASRN 75-09-2); Trichloroethylene (TCE) (CASRN 79-01-6); N- Methylpyrrolidone (NMP) (CASRN 872-50-4) Final risk assessment for TCE issued in June 2014 Group of flame retardants also identified for review and risk assessment Planned TSCA rulemaking on disclosure of chemicals used in hydraulic fracturing (ANPR issued May 2014) squirepattonboggs.com squirepattonboggs.com 13 13
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