United States      Solid Waste and
Environmental Protection ; Emergency Response
Agency   	(5305W)
EPA745-R-98-007
   June 1998
    RCRA, Superfund & EPCRA
        Hotline Training Module
     Introduction to:
       Toxics Release Inventory:
              Exemptions
         (EPCRA §313; 40 CFR Part 372)
           Updated February 1998

-------

-------
                                       -DISCLAIMER

This document was developed by Booz-Allen & Hamilton Inc. under contract 68-WO-0039 to EPA. It is
intended to be used as a training tool for Hotline specialists and does not represent a statement of EPA
policy.                       •       ..'"."

The information in this document is not by any means a complete representation of EPA's regulations or
policies. This document is used only in the capacity of the Hotline training and is not used as a reference
tool on Hotline calls.  The Hotline revises and updates this document as regulatory program areas change.

The information in this document may not necessarily reflect the current position of the Agency. This
document is not intended and cannot be relied upon to create any rights, substantive or procedural,
enforceable by any party in litigation with the United States.
                        RCRA, Super-fund & EPCRA Hotline Phone Numbers:

          National toll-free (outside of DC area)           • .             (800) 424-9346
          Local number (within DC area)       ,           •             (703)412-9810
          National toll-free for the hearing impaired (TDD)                (800) 553-7672
                         The Hotline is open from 9 am to 6 pm Eastern Time,
                          Monday through Friday, except for federal holidays.

-------

-------
                       TOXICS RELEASE INVENTORY
                                 .EXEMPTIONS
                                   CONTENTS
                                                 '       N                          f

1.  Introduction	•	——•	•	• 1
                                      F           ...
2.  Regulatory Summary ...	'..	-	•	3
      2.1 De Minimis	—	•	•	3
      2.2 Article	:....„	-	•••••	-	7
      2.3 Use of Toxic Chemicals	—8
      2.4 Laboratory Activities	.	.......10
      ,2.5 Certain Owners and Operators of Leased Property	,	11
      2.6 Coal Extraction and Metal Mining Overburden	..11

3.  Federal Facilities	,	.......13

4.  Module Summary	.;	15

5.  Review Exercises	.—•	•	•	—17

-------

-------
                                                     Toxic Release Inventory Exemptions - 1
                           1.  INTRODUCTION
Under the Emergency Planning and Community Right-to-Know Act (EPCRA)
Toxics Release Inventory (TRI) program, certain facilities are required to submit
annual reports on the amounts of toxic chemicals they release into the
environment, either routinely or as a result of accidents.  The applicability of the
TRI program is discussed in the module entitled Toxics Release Inventory:
Reporting Requirements. Just as crucial to understanding EPCRA §313 reporting is a
comprehension of the exemptions from TRI reporting criteria. "This module covers
specific exemptions from TRI reporting and explains why certain uses> amounts,
and forms of listed toxic chemicals are excluded from consideration toward
threshold determination and release reporting.

Although one of the goals of Title III is to compile toxic chemical release data which
can then be disseminated to the public, EPA recognizes that certain uses of listed
toxic chemicals do not warrant reporting. In some cases, the chemical in question is
unlikely to be released in normal processes, or is present in amounts too small to
warrant reporting.  Other scenarios involving listed toxic chemicals are exempted
because they are covered under other laws.

When you have completed this module you will be  able to explain the purpose and
scope of EPCRA §313 exemptions from reporting requirements. Specifically, you
will be able to:

   •  List the reporting exemptions under EPCRA §313
   •  Explain why  each exemption is granted                   .
   •  Discuss the requirements which must be met to obtain each exemption
   •  Understand how exemptions apply to covered federal facilities


Use this list of objectives to check your knowledge of this topic after you complete
the training session.
The information in this document is not by any means a complete representation of EPA's regulations or
          policies, but is an introduction to the topic used for Hotline training purposes.

-------
2 - Toxic Release Inventory Exemptions
The information in this document is not by any means a complete representation of EPA's regulations or
            policies, but is an introduction to the topic used for Hotline training purposes.

-------
                                                     Toxic Release Inventory Exemptions - 3
                      2.  REGULATORY SUMMARY
In order to understand the reporting of releases of toxic chemicals under EPCRA
§313 (40 CFR Part 372), it is essential to grasp, when reporting is not required.  EPA
grants exemptions from reporting in certain cases to owners and operators of
facilities which otherwise meet each of the EPCRA §313 reporting requirements.
Quantities of toxic chemicals exempt from EPCRA §313 reporting requirements are
not included in threshold or release calculations. These exemptions from TRI
reporting are codified at 40 CFR §372.38.

EPA provides exemptions for a variety of reasons. Among these are the desire to
reduce the burden of regulatory compliance, to avoid regulation of activities already
subject to other environmental standards, and to delineate those activities which
are not intended to fall under the scope of the law. To this end, EPA has granted
exemptions from EPCRA §313 reporting requirements for toxic chemicals present in
de minimis quantities, contained in articles, used in certain manners,  or intended
for laboratory or research purposes.  The Agency also exempts certain owners and
operators of leased property from EPCRA §313 reporting requirements.  :
Additionally, beginning with reporting year 1998, EPA has provided two new
exemptions specific to mining facilities.  Each of these exemptions is discussed in the
following pages.

This module summarizes the  regulations that govern exemptions from TRI
reporting requirements under  EPCRA §313. In particular, it focuses on EPA's
interpretation of the exemptions and provides examples of their application. It also
examines how exemptions are used at federal facilities, which are held to a slightly
different standard than their private counterparts.                .
2.1   DE MINIMIS

The de minimis exemption found at'40 CFR §372.38(a) reduces the burden on
manufacturing facilities that process or otherwise use only trace amounts of listed
toxic chemicals. While the exemption generally applies to the processing or
otherwise use of toxic chemicals, there is one instance when it may be claimed for   .
the manufacture of a toxic chemical. These situations are discussed separately
below.

De minimis is a Latin term which means small or trifling; the regulatory language
specifically exempts de minimis concentrations of a toxic chemical in a mixture that
is processed or otherwise used. A pure form of a chemical will not qualify for the de
minimis exemption because it is not a mixture.  While the legal definition of de
minimis does not denote a specific percentage, the Agency has set two levels below
which the exemption will apply.  If a  non-carcinogenic toxic chemical is present in a

 The information in this document is not by any means a complete representation of EPA's regulations or
          policies, but is an introduction to the topic used for Hotline training purposes.

-------
4 - Toxic Release Inventory Exemptions
mixture at a concentration below 1 percent, or an Occupational Safety and Health
Act (OSHA) carcinogen is below 0.1 percent, the amount of the toxic chemical in that
mixture that is processed or otherwise used should not be factored into threshold
determinations or release reporting, or be subject to supplier notification.  De
minimis amounts of listed toxic chemicals in mixtures are exempted from EPCRA
§313 consideration.

PROCESS AND OTHERWISE USE

The de minimis  exemption is among the more complex of the EPCRA regulatory
exemptions. When a facility is processing or otherwise using a toxic chemical in a
mixture, the de minimis percentage of the chemical in the mixture works as an
imaginary barrier.  As long as the amount of a toxic chemical in a mixture that is
processed or otherwise used remains under the de minimis "line," it is exempt.
Once the line is crossed, the chemical is reportable. Threshold and release
calculations begin at the point,where the chemical exceeds de minimis. The
exemption will apply as long as the facility which receives the mixture containing
de minimis amounts of a toxic  chemical never goes above the de minimis limit.

For example, an ink manufacturer produces a product which contains toluene, a
listed toxic chemical. The facility begins its ink production process with a mixture
comprised of 0.8% toluene.  During the heating process used to produce the ink,
water contained in the mixture  evaporates,  causing the relative percentage of
toluene to rise to 2.5%. Because the mixture now contains a toxic chemical in an
amount above the de minimis level, the facility must apply the amount of toluene
toward threshold and release determinations from the point in the process at which
it exceeded the de minimis level.   .

Conversely, if the facility uses a heat-free method to produce the ink, and none of
the water in the mixture evaporates during the process, the toluene remains below
the de minimis level throughout the procedure and need not be applied toward  TRI
reporting. Finally, if the process used causes the percentage of toluene in the
mixture to fluctuate, and it rises above the de minimis level for a time but drops
below  title level as the process winds down, the facility operator must consider the
chemical toward threshold determinations from the point at which it* first exceeded
the de minimis limit. Once  the imaginary de minimis line is crossed, there is no
going back: the exemption does not apply.  Furthermore, a chemical which is
present over de minimis amounts when initially brought on-site cannot qualify  for
the exemption even if it subsequently falls under the de minimis limit.

MANUFACTURE

While  the imaginary line method works for process and otherwise use scenarios,
the de minimis exemption may  also be applicable to manufacturers of listed  toxic
chemicals, but only in one specific situation. If a  toxic chemical is manufactured  at a
facility, it cannot qualify for  the de minimis exemption unless it is manufactured as

The information in this document is not by any means a complete representation of EPA's regulations or
          policies, but is an introduction to the topic used for Hotline training purposes.

-------
                                                    Toxic Release Inventory Exemptions - 5
an impurity which is present below de minimis levels and not separated from the
final product. If the chemical is separated from the final product, thereby classifying
the chemical as a byproduct, it cannot qualify for the exemption because it is no
longer present below de minimis levels; indeed, it may no longer be in a mixture at
all.                                               ,  .    :

For example; a facility may react two chemicals together to produce a product.  As a
result of the reaction, the non-carcinogenic toxic chemical hydrogen cyanide is
created as an impurity.  If the newly manufactured chemical hydrogen cyanide is
present in the product below the de minimis level, it is exempt from EPCRA §313
reporting requirements unless it is separated from the product as a by-product. No
other scenarios involving the manufacture of toxic chemicals, other than
coincidental manufacture of an impurity, qualify for the exemption.

Often, trace amounts of listed chemicals remain in wastestreams generated from
manufacturing processes.  A chemical's presence in the waste signals that the toxic
chemical is separated from the final product. As such, it cannot qualify for the de
minimis exemption. This is also the case when low levels of the chemical are
manufactured as a byproduct in a wastestream as a result of treatment of the
wastestream.  However, if the chemical is present below de minimis levels in the
process stream and wastestream, facilities do not have to  count the amount of the
toxic chemical in wastestream. The exemption may even apply if the listed toxic
chemical is concentrated above the de minimis level in the wastestream during that
processing activity.        .  .

For example/nitric acid, an EPCRA §313 toxic chemical, when added to a
wastestream  as a neutralizing agent, often generates monovalent nitrate
compounds (e.g., sodium nitrate and  potassium nitrate).  These monovalent nitrate
compounds are also reportable under EPCRA §313 as members of the water
dissociable nitrate compounds category. These compounds must be reported if
coincidentally manufactured in excess of 25,000 pounds during the reporting year,
regardless of their concentration in the wastestream. The de minimis exemption
does not apply.

The major concepts of the de minimis exemption  are summarized in Figure 1.
The information in this document is not by any means a complete representation of EPA's regulations or
          policies, but is an introduction to the topic used for Hotline training purposes.

-------
     6 - Toxic Release Inventory Exemptions
                                                   Figure 1
       THE APPLICATION OF THE DE MINIMIS EXEMPTION TO THRESHOLD AND
                                      RELEASE DETERMINATION
 Example #1
               Mixture with a
               toxic chemical
      Toxic chemical > 1% (or 0.1%)
        in the production process
              The final product
               contains >1%
                 (or 0.1%)
 Example #2
               Mixture with a
               toxic chemical
      Toxic chemical < 1 % (or 0.1 %)
        in the production process
              The final product
               contains < 1%
                 (or 0.1%)
 Example #3
               Mixture with a
               toxic chemical
    Toxic chemical < 1%
        (or 0.1%)
  in the production process
  Toxic chemical > 1%
      (or 0.1%)
in the production process
 The final product
contains < or > 1%
    (or 0.1%)
 Example #4
               Mixture with a
               toxic chemical
         Toxic chemical < 1%
              (or 0.1%)
       in the production process
         The final product
          contains < 1%
            (or 0.1%)
 Example #5
              Wastestream
      Wastewater
       Treatment
         Unit
(no toxic chemicals present)
                                                                               Toxic chemical
                                                                               manufactured
                                        Toxic chemicals
                                            added
                                         to treat waste
I        | INCLUDED in threshold and release determination


I        I NOT INCLUDED in threshold and release determination
     The information in this document is not by any means a complete representation of EPA's regulations or
                  policies, but is an introduction to the topic used for Hotline training purposes.

-------
                                                      Toxic Release Inventory Exemptions - 7
2.2   ARTICLE

The regulations provide an exemption for manufactured items, which are generally
referred to as articles-(40 CFR §372.38(b)).  For the purposes of EPCRA §313, EPA
defines an article as a manufactured item that meets all of the following criteria:

   •  It is formed to a specific shape or design during,manufacture         ,   .    •
   _•  It has end use functions dependent in whole or in part on its shape or design
      during end use             ,                 ^                         '
      and   .                                       •       "
   •  It does not release greater than 0.5 pounds per year of a toxic chemical under
      normal conditions of processing or use of that item at the facility.

If a toxic chemical is present in a manufactured item meeting the definition of an
article, a regulated facility is not required to consider the quantity of the toxic
chemical presentin such article for the purposes of threshold determination and
release reporting.  This exemption applies as long as the manufactured item retains
its article status while at the facility; that is, it continues to meet  all three criteria
mentioned above.

If the shape of an article changed significantly (e.g., thickness, diameter) in a process,
the article exemption is negated. For example, a facility extrudes a thick piece of
metal wire into a thinner wire as part of a process. No trace of the initial thickness
of the wire remains, therefore, the article exemption does not apply. If part of the
article retains its initial thickness or diameter, after processing or otherwise use, it is
still considered an article provided there are no releases of a toxic chemical greater
than 0.5 pounds during the reporting year. For example, when threading a screw, if
the head of the screw retains  the initial diameter of the original metal piece, the
screw can qualify for the article exemption even though a portion of the screw does
not maintain its initial thickness and diameter.

Also, if a manufactured item  releases a toxic chemical under normal conditions of
processing or use at the facility, the article exemption is negated. For example, if a
lead ingot is heated during a process  and a release of a toxic chemical occurs, the
piece of metal is not considered an article. The definition of "release;" however, is
not absolute. If less than 0.5 pounds of the toxic chemical is released from like items
during the calendar year, the  product would retain the article exemption (a release
of 0.5 pounds or less is rounded to zero on the Form R, therefore indicating no
release).  The half-pound limit does not apply to each individual article, but to the
sum of all amounts of the toxic chemical released during processing or otherwise
use of all like items.  For example, a facility cuts copper tubing to length releasing
copper dust. If the total release of copper from the processing or otherwise use of
copper pipes or similar articles is less than 0.5 pounds, then the copper pipe remains
exempt as an article.. Additionally, the Agency does not consider toxic chemicals
that are 100 percent recycled to be released. Often, articles are cut or stamped using
processes •that" generate filings or shavings. If the listed toxic chemical released

 The information in this document is hot by any means a complete representation of EPA's regulations or
        ,  policies, but is an introduction to the topic used for Hotline training purposes.

-------
8 - Toxic Release Inventory Exemptions
exceeds a half pound and is completely recycled/reused, on site or off site, the item
may still retain its article status. Remember, however, if more than 0.5 pounds of a
toxic chemical contained in filings or shavings is released from any like item during
the year, the article exemption would not apply to any like item.

If the only release from the processing of an article is the disposal of solid scrap
which is recognizable as having the same form as the  article, then the processed
item retains the article exemption. For example, a covered facility fragments a piece
of copper tubing without causing any releases, and discards the scrap piece of tubing.
If this scrap piece is still recognizable as copper tubing, the disposal would not be
considered a release and it would retain its article status.
2.3   USE OF TOXIC CHEMICAL

The regulations at 40 CFR 372.38(c) provide exemptions based' on policy decisions
that allow certain uses of toxic chemicals without triggering regulatory
requirements. A facility would not need to consider the quantity of toxic chemicals
used in the following manners into either threshold determination or release
reporting.

STRUCTURAL COMEONENT

The structural component exemption addresses toxic chemicals that are used as
structural components at covered facilities.  There are two criteria which must be
met in order to qualify for this exemption: the toxic chemical must be incorporated
into the facility's structure, and the intended use of the material containing the toxic
chemical must not result in active degradation and thus cause an anticipated
release. Common examples of toxic chemicals incorporated into structural
components at a facility are paint applied to buildings, or metals incorporated into a
facility's piping network (process pipes not included). Process equipment is not
considered part of the structure of the facility; therefore, the structural component
exemption  does not apply if, for example, an industrial furnace is being painted.
The toxic chemicals in the paint must be counted toward reporting thresholds.

The second criterion concerns the intended use of the chemicals.  Components that
are expected to undergo active degradation are not exempted from TRI reporting,
even when they form a part of the facility's structure. For example, while toxic
chemicals in metal used to reinforce a facility's pipelines are exempt, those
contained in metal parts such as grinding wheels or metal working tools, which are
intended to wear down and be replaced as a result of their function, are not exempt
from TRI reporting.  This is because the latter components undergo active
degradation through normal use, releasing toxic chemicals in the process. Although
pipes also erode, that process is considered natural degradation and thus does not
negate the  exemption.
The information in this document is not by any means a complete representation of EPA's regulations or
          policies, but is an introduction to the topic used for Hotline training purposes.

-------
                                                     Toxic Release Inventory Exemptions - 9
ROUTINE JANITORIAL MAINTENANCE

Another use exemption concerns toxic chemicals present in products intended for
routine janitorial or facility grounds maintenance.  The exemption addresses
janitorial of other custodial or plant grounds maintenance activities using
substances such as cleaning supplies, fertilizers, and pesticides similar in type or  -
concentration to consumer products. In order to qualify for the routine
maintenance exemption, the toxic chemicals must not be used in a manner which
contributes to a manufacturing process. Fertilizer  is a common example of a
material which may or may not be exempt depending on its use. A facility may use
fertilizer to treat land for farming; this  is not an exempt activity because the toxic
chemicals in the fertilizer are otherwise used in the manufacturing process. The
same fertilizer/however, may also be used to maintain the facility's lawn.  This
activity, if the fertilizer is of similar type or concentration to consumer products, is
considered routine maintenance, and the facility should not consider toxic „ .
chemicals present in the fertilizer used on the lawn toward threshold or release
determinations.         '

PERSONAL USE

Personal use by employees or other persons at a facility of foods, drugs, cosmetics, or
other personal  items containing toxic chemicals  are not included toward  TRI
reporting. The personal use exemption is an example of the Agency's desire to
exclude chemicals which are not integral to the  manufacturing operations of the
facility. Items that are used by employees for personal use  do not fall within the   ;
realm of such operations.

While personal use includes items which  are most often personal in nature, such as
cosmetics, the exemption also  extends  to facility operations which are intended to
provide services for employees:   Common examples include stores, cafeterias,  or
infirmaries located on-site. Supplies used to  support such  operations are exempt
from TRI  reporting requirements. The personal use exemption also applies to
chemicals uses  such as the addition of chlorine to  drinking water for employee
consumption and to swimming pools  intended  for employee recreation.-

MOTOR VEHICLE                     ~

The use of products containing toxic chemicals are exempt from the TRI reporting
requirements if the products are used  for the purpose of maintaining motor
vehicles operated by covered facilities. Toxic chemicals generally found in motor
vehicles include constituents of  gasoline such as benzene, sulfuric acid used in
batteries which power motor vehicles,  and ethylene glycol  found in anti-freeze.  The
motor vehicle exemption is broad, covering any motorized vehicle, licensed or not.
The term  includes forklifts, tow motors, automobiles, and other types of  vehicles.
This exemption does  not include motor vehicles manufactured at the facility.  An
automobile manufacturer typically adds products  containing toxic chemicals to

 The information in this document is not by any means a complete representation of EPA's regulations or
          policies, but is an introduction to the topic used for Hotline training purposes.

-------
10 - Toxic Release Inventory Exemptions
automobiles, which are intended for distribution in commerce. This activity is
considered processing and, as such, the toxic chemicals must be included in
threshold determinations and release reporting.

TOXIC CHEMICALS DRAWN FROM THE ENVIRONMENT

Often facilities use environmental media such as water or compressed air to support
manufacturing processes. Use of toxic chemicals present in process water and non-
contact cooling water as drawn  from the environment or from municipal sources,
or toxic chemicals present in air used either as compressed air or as part of
combustion is exempt from TRI  reporting requirements.  However, if a toxic
chemical is created as a result of combustion, it has been coincidentally
manufactured and is not exempt from TRI reporting requirements.

This exemption does apply to toxic chemicals that are added to a process by the
facility. For example, many facilities use "hard" water as a coolant in processing
operations.  Hard water contains trace amounts of metals that may be toxic
chemicals. If a facility's water contains nickel when it is drawn from a well,  and the
facility adds nickel to the water, the facility need only consider the amount of nickel
added on site toward threshold and release calculations.. Any  toxic chemicals which
are removed from the environmental media and then distributed in commerce are
considered processed and must be  applied toward that threshold.
2.4   LABORATORY ACTIVITIES

If a laboratory at a covered facility manufactures, processes, or otherwise uses a toxic
chemical under the direct supervision of a technically qualified individual, the
facility is not required to factor the amount of the toxic chemical used at the
laboratory into threshold determination or release reporting.  EPA granted the
laboratory exemption in an effort to reduce the regulatory burden on facilities where
toxic chemicals are used in laboratories which perform auxiliary functions for
manufacturing or processing activities.  This exemption does not wholly exclude a
laboratory from reporting, but applies to activities occurring inside a laboratory at a
facility. The Agency has interpreted this exemption to include product testing,
quality control, and research and development activities conducted at laboratories,
but not specialty chemical production.

In order to qualify for this exemption, the regulations at 40 CFR §372.38(d)  specify
that the toxic chemical must both be used at a laboratory and that this use  must take
place under the direct supervision of a technically qualified individual.  The Agency
has interpreted the exemption to cover activities that necessarily occur outside of
the actual laboratory, if such use is necessary to support product testing. For
example, the use of jet engines on an open body of water meets the first requirement
if the activity is designed to test the integrity of the engines.
The information in this document is not by any means a complete representation of EPA's regulations or
          policies, but is an introduction to the topic used for Hotline training purposes.

-------
                                                    Toxic Release Inventory Exemptions - 11
Laboratory activities are not exempt unless they are conducted under the
supervision of a technically qualified individual.  The term is defined in regulations
pursuant to the Toxic Substances Control Act (40 CFR §720.3(ee)). This reference
defines technically qualified individual as a person who, because of education,.
training, or experience, or a combination of these factors, is capable of understanding
and minimizing risks associated with the substance in question, and is responsible
for safe procurement, storage, use, or disposal within the scope of research.

There are cases when laboratory activities are reportable under EPCRA §313. The
laboratory exemption does not apply to specialty chemical production, toxic
chemical manufacture, process, or use in pilot plant scale operations, or activities
conducted outside the laboratory.                        •


2.5   CERTAIN OWNERS AND OPERATORS OF LEASED PROPERTY

CERTAIN OWNERS OF LEASED PROPERTY

The owner of a regulated facility is not liable for §313 reporting if the owner's only
interest in the facility is the ownership of the real estate upon which the facility is
located. For example, a bank that holds the mortgage on a manufacturing facility,
and has no interest in the facility other than as real estate, would be exempt from
EPCRA §313 reporting liability.                        *

CERTAIN OPERATORS OF ESTABLISHMENTS ON LEASED PROPERTY

If two or more persons, who do not have any common corporate or business
interests, operate separate establishments within a single facility, each person may
treat the establishments he operates as an individual facility, and may make
threshold determination and release calculations based on the chemicals and
activities at that facility.  For the purpose of this exemption, "common corporate or
business interest" includes ownership of a controlling interest in one person by the
other, or ownership of a controlling interest in both persons by a third person.
2.6   COAL EXTRACTION AND METAL MINING OVERBURDEN

COAL EXTRACTION ACTIVITIES

If a toxic chemical is manufactured, processed, or otherwise used in extraction by
facilities in SIC code 12, a person is not required to consider'that quantity of the toxic
chemical when determining whether an applicable threshold has been met, or
when determining the amount of release to be reported.
 The information in this document is not by any means a complete representation of EPA's regulations or
          policies, but is an introduction to the topic used for Hotline training purposes.

-------
12 - Toxic Release Inventory Exemptions
METAL MINING OVERBURDEN

If a toxic chemical that is a constituent of overburden is processed or otherwise used
by facilities in SIC code 10, that quantity of the toxic chemical may be excluded when
determining whether an applicable threshold has been met, or when determining
the amount .of releases to be reported.
The information in this document is not by any means a complete representation of EPA's regulations or
           policies, but is an introduction to the topic used for Hotline training purposes.

-------
                                                     Toxic Release Inventory Exemptions - 13
                         3.    FEDERAL FACILITIES
 On August 3, 1993, President Clinton signed Executive Order 12856, requiring all
 federal agencies to comply with EPGRA.  One of the most complicated areas of
 compliance 'is with TRI reporting. EPA, by regulation, has exempted certain uses of
 toxic chemicals by facilities in SIC codes 20-39 form the EPCRA §313 threshold .
 determinations and reporting. The exemptions were  created to provide reporting
 burden relief by exempting uses that were expected to be small or ancillary at
 facilities in the covered SIC codes.  Section 3-304(b) of the Executive Order applies
 these regulatory exemptions to the federal agencies.  Although the exemptions were
 not designed with federal facilities in mind, federal facilities may apply them  to
 their activities involving toxic chemicals.  In response to the leadership challenge
•put forth by the Executive Order, some federal agencies have waived portions of
 these exemptions for their facilities.   .

 In general, these exemptions  were included as a further burden reducing measure
 for the manufacturing facility. The use exemptions relate to activities that, in the
 manufacturing sector, do not  generally occur  at a large scale of that are ancillary to
 their operations.  Federal facilities may apply these exemptions to their operations.
 However, EPA recommends that federal facilities consider the scale of the  activity
 and take the leadership option of including large-scale activities (e.g., motor vehicle
 use) that would otherwise be exempt.       •
 The information in this document is not by any means a complete representation of EPA's regulations or
           policies, but is an introduction to the topic used for Hotline training purposes.         '

-------
14 - Toxic Release Inventory Exemptions
 The information in this document is not by any means a complete representation of EPA's regulations or
            policies, but is an introduction to the topic used for Hotline training purposes.

-------
                                                    Toxic Release Inventory Exemptions - IS
                         4.  MODULE SUMMARY
EPCRA §313 includes specific exemptions from TRI reporting for certain uses,
amounts, and forms of listed toxic chemicals.  The exemptions include toxic
chemicals present in de minimis quantities, contained in articles, used in certain
manners (i.e., structural components, janitorial maintenance, personal use, motor
vehicle maintenance, and drawn from the environment), or intended for laboratory
or research purposes. Addition exemptions exist for certain owners arid operators of
leased property and for specific activities at mining facilities. Toxic chemicals and
activities excluded from TRI reporting under one of the exemptions need not be
included in threshold determinations or release reporting. Federal facilities, now
reporting under TRI as a result of Executive Order 12856, may also claim the EPCRA
§313 exemptions. These federal facilities, however, are encouraged to examine the
scope and scale of their activities before claiming any of the TRI reporting
exemptions.   '..•-.'                                       "-'..-
 The information in this document is not by any means a complete representation of EPA's regulations or
          policies, but is an introduction to the topic used for Hotline training purposes.

-------
16 - Toxic Release Inventory Exemptions
The information in this document is not by any means a complete representation of EPA's regulations or
            policies, but is an introduction to the topic used for Hotline training purposes.

-------
                                                     Toxic Release Inventory Exemptions -17
                          5.  REVIEW EXERCISES
The exercises in this section are designed to help you check your knowledge of the
material in this module. Use any reference materials you need to answer the
questions.  Provide complete citations and write answers in paragraph form.
EXERCISE 1

A facility operator is preparing to upgrade her deteriorating factory.  As part of the
facility facelift, a new coat ,of paint will be applied to the exterior of the building and
all the machinery inside will undergo extensive relubrication.  In addition, any
grinding wheels which have worn down will be replaced. Should the operator
apply the toxic chemicals found in the paint, lubricating oil, and the grinding wheels
toward EPCRA §313 threshold determinations?
EXERCISE2

A metal plating facility runs an operation which forms sheets of copper metal into
boxes which are then sold to a distributor for direct sale to the public. Each year,
some 15,000 pounds of sheet metal is processed into the boxes. At another part of
the facility, workers process 23,000 pounds of copper in plating operations. What
amount of. copper must the facility consider toward EPCRA §313 thresholds? What
factors must the facility operator take into consideration?   •  ;
 The information in this document is not by any means a complete representation of EPA's regulations or
           policies, but is an introduction to the topic used for Hotline training purposes.

-------
18 - Toxic Release Inventory Exemptions
EXERCISES

A manufacturing facility located in Miami, Florida, uses a refrigerant containing
listed toxic chemicals to cool a building which houses employee offices. Another
building at the facility uses an identical refrigeration system to regulate the
temperature of sensitive electronic equipment. Should the facility's regulatory
specialist consider the toxic chemicals in the refrigerant toward EPCRA §313
reporting?
EXERCISE 4

A manufacturing facility produces jet engines. As part of the process, the facility
maintains a large pond to test the buoyancy of the engines. This procedure involves
the annual use of 100,000 pounds of benzene.  Is this an exempt activity under
EPCRA §313?
The information in this document is not by any means a complete representation of EPA's regulations or
          policies, but is an introduction to the topic used for Hotline training purposes.

-------
                                                      Toxic Release Inventory Exemptions -19
EXERCISES

A chemical manufacturer often receives bulk shipments of pre-mixed chemicals
which it then transfers to small packages for distribution in commerce.  One such
mixture contains 25% acetone, 25% amatine, 0.5% diazomethane, 0.5% acetamide,
and water. Over the course of the year the facility processes 5 million pounds of the
mixture. Explain which, if any, of the components in the mixture are reportable
under EPCRA §313.
The information in this document is not by any means a complete representation of EPA's regulations or
          policies, but is an introduction to the topic used for Hotline training purposes.

-------

-------