KF3958
.A84
1977
OOOK77001
 Tirst Annual Report (1977)
 Administration of the
 Substances
 Cotjtrol
 U.S. ENVIRONMENTAL PROTECTION AGENCY

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         FIRST ANNUAL REPORT-1977

          ADMINISTRATION
              OF THE
TOXIC SUBSTANCES CONTROL ACT

      U.S. ENVIRONMENTAL PROTECTION AGENCY

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CONTENTS

Organization and Staffing	1

Strategy  	 2

Testing  	2

Chemical Inventory  	3

Reporting and Recordkeeping	4

Chemical Control Regulations	5

Rulemaking Procedures	5

Compensation for Public Participation	6

Pre-Manufacturing Notification	6

Penalties	6

Industry Assistance	7

Coordination	7

Problems  	8

Legislation	9

Chemicals Recommended by  Interagency
  Committee  for Priority Testing 	9

Questions and Answers on TSCA Initial
  Reporting Regulations	12

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January 17, 1978

The President
The White House
Washington, D.C. 20500

Dear Mr. President:
  I am pleased to transmit to  you the Environmental Protection
Agency's (EPA) first Annual Report on the administration of the
Toxic Substances Control Act  (TSCA). This report provides the
information required by Sections 30 and 9(d) of the Act, as well as
additional information on EPA's activities under the Act.

ORGANIZATION AND STAFFING

  In accordance with Section 26(g), EPA has established the position
of Assistant Administrator for Toxic Substances. Your appointment
of Mr. Steven D. Jellinek to this position was confirmed by the Senate
on October 12,  1977. An organizational plan for the Toxic
Substances program has been developed and will be approved in the
near future. The responsibilities of the Assistant Administrator for
Toxic Substances include both the Toxic Substances and Pesticides
programs. Because these two programs have much in common,
placing them under the purview of a single Assistant Administrator
will be beneficial to both of them.
  The Assistant Administrator  for Toxic Substances also is
responsible for promoting Agencywide integration of toxic substan-
ces control activities. Toxic chemicals are receiving increasing
attention in the Agency's air and water pollution control, drinking
water, and solid waste management programs. There is a real need to
ensure that the activities of these programs, as they relate to toxic
substances that may endanger human health or the environment, are
well coordinated.
  The Assistant Administrator  for Enforcement and the Assistant
Administrator  for  Research and  Development, as well as EPA's
Regional Administrators, also play important roles in the implemen-
tation of the Toxic Substances Control Act. The Assistant Adminis-
trator for Enforcement has established a Pesticides and Toxic
Substances Enforcement Division. The Assistant Administrator for
Research and Development, jointly with the Assistant Administra-
tor for Toxic Substances,  is developing an initial plan for research
and development in support of TSCA implementation. In each of
EPA's Regional Offices, a Toxic Substances Coordinator has been
designated, and efforts are underway to  integrate toxic substances
control activities in the Regional Offices.
  In October 1976, when TSCA became law, the Agency's resources
allocated specifically for the Toxic Substances program amounted to
45 positions and $7.0 million. In Fiscal 1978, the allocation for TSCA
implementation, including research and development, is 319

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positions and $27.8 million.  Many of the additional positions are
already  filled; recruitment to fill the others is continuing. Special
efforts are being made to recruit toxicologists and other specialists
who have the expertise needed to deal with TSCA problems.

STRATEGY
  The number of chemicals covered by the Toxic Substances Control
Act is very large. Estimates of the number of chemicals produced in
the U.S. for commercial purposes range up to 70,000. Estimates of the
number of new chemicals introduced annually run as high as 1,000.
For  the Environmental Protection Agency, the work involved in
identifying and assessing human health and environmental risks and
in developing and enforcing  rules and  regulations  to prohibit or
restrict the manufacture, processing, distribution, use, and disposal
of chemical substances and mixtures will be labor-intensive and time-
consuming. For the chemical industry, the costs of compliance with
EPA's  testing requirements  and  regulatory restrictions could be
substantial. Accordingly, it is essential that EPA establish priorities
for all its TSCA activities, including testing, monitoring, data-
collection, and rulemaking.
  A system  for establishing priorities will be the heart of EPA's
strategy for implementation of the Act. In the near future, the Agency
will distribute for public review and comment a draft strategy
document now being developed in the Office of the Assistant Admin-
istrator for Toxic  Substances. This document will outline a priority-
setting system in general terms and will also describe the Agency's
current  thinking about implementation  of key parts of  the Act. A
follow-up document, due to be completed later, will lay out a priority-
system  in much greater detail; when completed, it also will be
distributed for public review and comment.
  In developing these strategy documents, the Assistant Adminis-
trator for Toxic  Substances is consulting people in other EPA
programs and is building on the Agency's earlier TSCA strategy de-
velopment efforts. A preliminary paper was distributed for public
review and comment  in February 1977. Both before and after its
distribution, the Agency held public meetings to discuss TSCA
implementation. Meetings were held not only in Washington, D.C.,
but also in nine other cities around the  U.S.

TESTING
  Section 30(1) requires that the Annual Report include  a list of the
testing required under  Section 4. Thus far no testing requirements
have been issued. Within the Agency, work is underway on the devel-
opment of standards for carcinogenicity, environmental fate,  and
ecological effects testing. Preliminary work is underway on standards
for teratological and behavioral toxicity testing.  As  far as possible,

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TSCA testing standards will be harmonized with other Federal
agencies' and foreign governments' testing standards.
  Efforts to identify the chemicals to be covered by the initial testing
requirements also are underway. A method of selecting chemicals to
be tested—based on their potential impact on human health and the
environment—will be an integral part of the system for establishing
priorities for TSCA implementation.
  Section  4(e)  calls for the creation of an interagency committee to
recommend testing priorities. In October 1977, this group made its
initial recommendations; it recommended various types of toxicolog-
ical and environmental testing of four individual chemicals and six
groups of chemicals. Attachment A is a summary of the recommen-
dations. EPA has one year from the receipt of the recommendations
to initiate action to require the recommended  testing or to state
publicly its reasons for not doing so.  As one of its initial steps in
assessing  the recommendations, the Agency soon will publish
proposed rules under Section 8(d); the proposed rules would require
chemical manufacturers and processors to submit lists and copies of
pertinent health and safety studies already performed with respect to
the chemicals covered by the committee's recommendations. EPA is
also examining its own files, and asking  other Federal agencies to
examine theirs, to determine whether such studies have already been
performed. Where the recommended types of studies have already
been performed in a way that produced reliable results, it obviously
would not be desirable to require that it be performed again.

CHEMICAL INVENTORY
  Section 8(b) requires the Agency to compile and publish an
inventory of chemicals in commerce. Beginning 30 days after
publication of this inventory, no person may manufacture or import
for commercial purposes a chemical not included in the inventory
without submitting premanufacturing notice under section 5.
Compilation of the inventory is now underway. An initial inventory,
based on information furnished by chemical manufacturers, will be
published  in late 1978.
  In December 1977, the Agency issued rules specifying who is
required  to report and what information must be reported.
Attachment B summarizes the reporting rules. In brief, those
chemical manufacturers (including importers) who are required to
report will  have until May 1, 1978, to report the identity and
production volume of chemicals manufactured at each production
site during calendar 1977. Chemicals manufactured during the two
preceding  years also may be reported for inclusion in the inventory.
EPA's rules include provisions limiting the reporting requirements
applicable to small business and allowing confidentiality claims to be
made.

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  Development of the Agency's 8(b) reporting rules took more time
than TSCA provided, largely because of the time required to work
out satisfactory ways of dealing with a number of sensitive issues.
Questions concerning the applicability and scope of the reporting
requirements,  treatment of small  business, and handling of
information  subject to confidentiality claims  were raised by the
chemical industry and other interested parties. EPA took the unusual
step of publishing a second set of proposed rules after reviewing the
public comments on its initial proposal. In addition, Agency
employees involved in developing the rules had many meetings with
industry and public interest representatives, officials of other Federal
agencies, representatives of foreign governments and international
organizations, and other interested parties.  Though the decision to
publish a second proposal caused a delay in compilation of the
inventory, the result was a set of rules that will enable EPA not only to
satisfy the 8(b) requirement but also to obtain data needed to begin
methodically  establishing priorities for attention and action under
TSCA.

REPORTING AND  RECORDKEEPING
  In addition  to calling for compilation of an inventory of
commercial chemicals,  Section 8 authorizes the Agency to obtain
other types of information needed for determinations about human
and environmental risks. Toward this end, the Agency is authorized
to require reporting of data on production, uses, worker exposures,
by-products, and disposal methods, as well as existing data on
environmental and health effects. The Agency also is authorized to
require submittal of lists and copies of health and safety studies and to
require maintenance of records  on adverse reactions to chemicals.
Development of rules for such  reporting and  recordkeeping is in
progress.
  Also under Section 8,  chemical manufacturers, processors, and
distributors are required  to furnish information which reasonably
supports the conclusion that a chemical substance or mixture
presents a substantial risk of injury to health or the environment. The
Agency has published proposed guidance indicating what kinds of
information should be submitted. Final guidance will be issued after
the  Agency completes its review and analysis of public comments.
Approximately  35 "substantial risk" notices  have already been
received. Most  of them  have concerned chemicals already being
studied by EPA or chemicals produced in  such limited amounts that
human and environmental exposure to them is minimal. Some have
presented information already available in published literature. All
such  notices are reviewed in EPA, and copies  are routinely
distributed to the Occupational  Safety and  Health Administration,
the  Food and  Drug Administration, and  the Consumer Product
Safety Commission.

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CHEMICAL CONTROL REGULATIONS

  Section 30(3) requires that the Annual Report include a list of rules
issued during the year under Section 6, which authorizes the Agency
to prohibit or restrict the manufacture, processing, distribution, use,
and  disposal of chemical  substances and mixtures,  and, in some
instances, articles containing chemical substances and mixtures.
  Under Subsection 6(e), the Agency is engaged in rulemaking
dealing  with polychlorinated biphenyls (PCBs), which are a
widespread and hazardous environmental contaminant. Proposed
rules establishing requirements for PCB marking and disposal were
issued in May 1977. Public hearings were held the following month. It
is anticipated that final marking and disposal rules will be issued in
January  1978.
  Subsection 6(e) also prescribes a timetable for phasing out the
manufacture, processing, distribution, and use of PCBs, with certain
limited exceptions. Proposed rules covering the phase-out and
defining exceptions have been developed and are expected to be pub-
lished in January 1978. Since it will be administratively and legally
difficult to enforce the statutory restrictions until the Agency issues
final rules defining the terms of these restrictions and the conditions
under which exceptions will be made, no implementation action will
be initiated until final rules are issued and take effect. It is expected
that the final rules will be  issued in April 1978. It should be noted,
however,  that the manufacture of PCBs in the United States has
already ceased, and that many producers of items in which PCBs had
been used have been switching to substitute materials.
  Under Section 6(a), proposed rules prohibiting nonessential
aerosol uses of chlorofluorocarbons were issued in May 1977. These
rules were developed and issued jointly with the Consumer Product
Safety Commission and the Food and Drug Administration. Public
hearings were held in August 1977. It is anticipated that final rules will
be issued in February 1978.
  An investigation  of the  need for rulemaking is underway with
respect to polybrominated biphenyls (PBBs). A few years ago, PBBs
were accidently mixed with livestock feed in Michigan and caused
extensive harm. EPA is now gathering information on production
and uses of PBBs, and on human and environmental exposure to
PBBs, in order to provide a basis for determining whether regulatory
action is  necessary.

RULEMAKING PROCEDURES

  Under Section 6(c), the Agency has issued rules establishing
procedures to be followed in providing an opportunity for interested
persons to present their views on proposed regulations affecting the
manufacture, processing, distribution, use, and disposal of chemi-
cals. Among other  things, the rules provide for presentation of

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testimony to an expert  panel and an opportunity for cross-
examination to aid in resolving disputed factual issues. In addition,
the rules reflect the requirements of Section 6 for issuance by EPA of
documentation in support of proposed  regulations.

COMPENSATION FOR PUBLIC  PARTICIPATION

  Also  under  Section 6(c), the Agency has issued temporary rules
under which  interested  persons  may be compensated for certain
expenses related to participation in rulemaking  proceedings. The
temporary rules establish a pilot program related specifically to the
forthcoming rulemaking on phasing out manufacture, distribution,
and use of PCB's. In accordance  with Section 6(c), the rules provide
that the Agency may provide compensation for reasonable attorneys'
and expert witnesses' fees and related costs of participating  if the
participant "represents  an interest which would  substantially
contribute to a fair determination of the issues to be resolved" and if
either the participant's economic interest in the issues is small in
comparison to the costs of participation  or the participant would not
have the resources to participate if compensation were not granted.
Persons who  would be regulated  by the proposed  rules or who
represent regulated  parties are eligible  for  compensation, but the
aggregate amount paid to such persons may not exceed one-quarter
of the total amount paid to all participants.

PRE-MANUFACTURING NOTIFICATION
  Section 30(2) requires that the Annual Report include information
on  manufacturing and processing notices received under Section 5
and on  actions taken with respect to such notices. The requirement
that manufacturers  notify the Agency before manufacturing a new
chemical will not become effective until  30 days after publication of
the initial inventory of commercial chemicals. As indicated above, it
is expected that the initial inventory will  be published in late 1978. In
the meantime, the Agency is beginning to develop plans and policies
for implementing section 5. A Pre-Manufacturing Review Division is
being established  and will have as its sole responsibility the
implementation of section 5. Thus, it will be able to focus its attention
exclusively on  the important task of identifying and dealing with new
chemicals that may present significant hazards to human health and
the environment.

PENALTIES
  Section 30(4) requires that the Annual  Report provide information
on judicial and administrative actions completed  or pending under
Section  16. Section  i6 prescribes civil  and criminal penalties for
violations of certain provisions of the Toxic Substances Control Act
and rules issued under those provisions. Thus far, no action has been

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initiated under Section 16. Within the Agency, work is underway on
the development of rules establishing administrative procedures for
assessment of civil penalties.

INDUSTRY  ASSISTANCE

  In accordance with Section 26(d) of the Act, the Agency has estab-
lished an Industry Assistance Office to furnish the chemical industry
information  on implementation of the  Act and on requirements
applicable to manufacturers and processors. From its inception, the
IAO has agressively been reaching out to  chemical manufacturers
and processors instead of simply reacting to requests for assistance.
  lAO's activities have included the development  of a mailing list
comprising about 37,000 names, of which 26,000 are people involved
in manufacturing, processing,  and importing  chemicals; the
remainder are  other persons interested in  TSCA implementation.
Copies of rulemaking notices and other significant documents are
distributed via the mailing list. Among  other things, IAO has
distributed  more than 11,000 copies of the Candidate List of
Chemical Substances in response to requests. The Candidate List
contains the names and CAS Registry Numbers of approximately
30,000 chemicals; it is designed solely to simplify the chemical
industry's task when it is reporting the identity of commercial
chemicals for purposes of EPA's compilation of the inventory under
section 8(b).
  Over the past several months, IAO has received an average of 175
telephone requests and  50  letters  per week. In addition, IAO staff
members have discussed TSCA implementation at meetings of 23
organizations and at nine regional meetings. EPA's Regional Offices
have also been quite active in providing information both to industry
and the public.

COORDINATION
  Section 9(d)  requires that the  Annual Report include information
on actions taken to coordinate TSCA activities with related activities
under other Federal statutes, including statutes administered by
other  Federal agencies.
  Of particular note in this respect is the creation of the Interagency
Regulatory Liaison Group (IRLG) by EPA, the Consumer Product
Safety Commission  (CPSC), the  Food and Drug Administration
(FDA),  and the Occupational  Safety and  Health Administration
(OSHA). These four agencies,  which play significant roles in
protecting human health and the environment from the adverse
effects of toxic  substances, have  entered into an Interagency
Agreement to "cooperate with each  other as far as is practicable to
make the most efficient use of resources, achieve consistent regulatory
policy,  and improve the protection of  the public health and
environment."
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  IRLG working groups are involved in efforts to develop consistent
or compatible approaches to testing, epidemiological studies, risk
assessment, data management and exchanges, research and develop-
ment, regulatory procedures, compliance and enforcement proce-
dures, and public education.
  Even before the creation of the IRLG, the participating agencies
had begun working jointly on specific projects. As indicated above,
for example, EPA, CPSC, and FDA are working together on
regulating the use of chlorofluorocarbons. With the creation of the
IRLG, it is expected that cooperation among the four agencies will
increase significantly.


PROBLEMS

  Section 30(5) requires that the Annual Report include a summary
of major problems encountered in the implementation of the Act. As
there are with all new legislation, there have been start-up problems
with TSCA; in this case, however, the problems have been somewhat
different from those EPA previously has encountered. Unlike most of
the other new legislation EPA has had to implement, TSCA did not
evolve from previous law.  Accordingly, while there already was a
small toxic substances program (focused primarily on problem
identification  and definition)  in the Agency at the time TSCA was
enacted, the Agency had no actual experience on which to rely. An or-
ganization had to be developed. Senior managerial officials had to be
recruited. A conceptual approach to implementation of the Act had
to be formulated. To varying degrees, all these tasks still are
unfinished.
  A major conceptual problem that has to be resolved is that of es-
tablishing priorities. This  is discussed in the section of this report
dealing with development of TSCA strategy.
  There are. and will continue to  be, significant  policy  and
procedural problems related to the Agency's obligations under
Section 14, which spells out the conditions under which the Agency is
to protect or release information which the chemical industry claims
is confidential. A solution has  been worked out in the case of the 8(b)
requirement for publication of  an initial inventory of chemicals in
commerce. But there will be other instances in which, broadly
speaking, the Agency's obligations to release information to the
public and  to use information in support of TSCA implementation
will come into conflict with its responsibilities under section 14 and
the chemical industry's  legitimate interest in keeping certain
information confidential. Again, this problem is one that will require
the Agency's  continuing attention.

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LEGISLATION
  Section 30(6) requires that the Annual Report include such
recommendations for additional legislation as the Administrator
deems necessary to carry out the purposes of the Act. At this time, the
Agency is making no such recommendations.

                               Respectfully yours,
                                Douglas M. Costle


                                          FACT SHEET

ALKYL EPOXIDES

TESTING RECOMMENDATIONS:

  Carcinogenicity
  Mutagenicity
  Teratogenicity
  Other Chronic Effects
  Environmental Effects
  Epidemiology
Production, Release and Exposure: Although these compounds are
generally used as industrial intermediates, several alkyl epoxides are
produced in very large quantities (e.g., ethylene oxide at over 4 billion
pounds per year). The vast amounts produced thus raise concerns
primarily with respect to workplace exposure. The reactivity of these
compounds is such that environmental persistence is not anticipated;
however, their  reaction  products may be of significance.

ALKYL PHTHALATES

TESTING RECOMMENDATIONS:

  Environmental Effects

Production, Release, and Exposure: Many of these compounds are
produced in large volume, some of them over one hundred million
pounds per year. Their  use as plasticizers in a wide variety of prod-
ucts results in large volumes of alkyl phthalates reaching the aquatic
environment either as wastes from formulating plants or from use
and disposal of end products.

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CHLORINATED BENZENES, MONO- AND DI-
TESTING RECOMMENDATIONS:

  Carcinogenicity
  Mutagenicity
  Teratogenicity
  Other Chronic Effects
  Environmental Effects
  Epidemiology

Production,  Release and Exposure:  The chlorobenzenes are pro-
duced  in large quantities, monochlorobenzene over 300  million
pounds/ year and ortho- and para-dichlorobenzene approximately 50
million pounds each. These chemicals are widely used in industrial
processes, as solvents,  and in many consumer products. Therefore,
the exposure and potential for hazard  is great, particularly in light of
their high release rate and anticipated persistence in the environment.

CHLORINATED PARAFFINS, 35-64% CHLORINE

TESTING RECOMMENDATIONS:

  Carcinogenicity
  Mutagenicity
  Teratogenicity
  Other Chronic Effects
  Environmental Effects
Production,  Release, and Exposure: The 1972 annual production of
chlorinated paraffins was about 80 million pounds. The use of these
materials in a wide variety of household and paint products, as well as
adhesives and flame retardants, results in an estimated release rate of
about 50 million pounds per year.

CHLOROMETHANE
TESTING RECOMMENDATIONS:

  Carcinogenicity
  Mutagenicity
  Teratogenicity
  Other Chronic Effects

Production,  Release, and Exposure:  The 1974 U.S. production of
chloromethane was over 350 million pounds, most of this being used
as a synthetic intermediate. However, it is estimated that about 5% of
the annual production (over 15 million pounds per year) is released
into the environment. NIOSH estimates that the number of workers
exposed to chloromethane numbers about 31,000.
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CRESOLS
TESTING RECOMMENDATIONS:

  Carcinogenicity
  Mutagenicity
  Teratogenicity
  Other Chronic Effects
  Environmental Effects
Production,  Release, and Exposure:  Cresols are produced in large
quantities, having a combined U.S. production in 1975 of about 90
million pounds. An annual release rate of about 45 million pounds
has been estimated. Their wide use as industrial solvents leads to
substantial occupational exposure. NIOSH estimates that roughly
two million workers are exposed to cresols. In addition, cresols are
used in many  consumer products,  resulting in  a large general
exposure.

HEXACHLORO-1,3-BUTADIENE
TESTING RECOMMENDATIONS:
  Environmental Effects
Production, Release, and Exposure: Although the most recent (1974)
data available indicate that this compound is no longer commercially
manufactured in the U.S., it continues to be produced as a waste
byproduct of various chlorination processes and is also imported into
the U.S. for industrial solvent use. The release of hexachlorobuta-
diene into the environment has not been quantified, but there is good
evidence of widespread distribution in the aquatic environment.
NITROBENZENE
TESTING RECOMMENDATIONS:
  Carcinogenicity
  Mutagenicity
  Environmental Effects
Production,  Release, and Exposure: U.S. production of nitroben-
zene in 1975 was about 400 million  pounds.  Its  release  to the
environment has  been  estimated to  be about 20 million pounds
annually. Although its predominant use (97 percent of production) is
in closed systems in aniline manufacture, nitrobenzene is also an
industrial  solvent  and  dye  intermediate.  General   population
exposure can arise from environmental release, and from dispersive
uses such as perfume in soap; cleaner for woodwork, wood flooring
and paneling;  ingredient of  metal  polishes and  shoe blacking.
Nitrobenzene liquid and vapor penetrate intact skin readily, and the
efficiency of vapor absorption by inhalation is high.
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TOLUENE

TESTING RECOMMENDATIONS:

  Carcinogenicity
  Teratogenicity
  Other Chronic  Effects
  Epidemiology

Production,  Release and Exposure: Toluene is produced in large
quantities with an annual production rate  in excess of 5 billion
pounds. Because  of its widespread use as a solvent, as well as a
multiplicity of other uses, toluene has an unusually high occupational
exposure (over 1  million workers). Its presence in many consumer
products leads to a large general exposure. Toluene is currently being
substituted for many benzene-uses and  has an annual release rate
exceeding 1 billion pounds.

XYLENES

TESTING RECOMMENDATIONS:

  Mutagenicity
  Teratogenicity
  Epidemiology

Production, Release and Exposure: In the aggregate, approximately
8 billion pounds of xylenes are produced each year. Approximately
900 million pounds are released to the environment each year. Mixed
xylenes were ranked by NIOSH  13th  out of approximately 7000
agents  in terms of the number of workers exposed. Xylenes are also
used in a wide variety of consumer products, resulting in general
population exposures.
                                             Attachment B
QUESTIONS AND  ANSWERS ON  TSCA
INITIAL  REPORTING REGULATIONS
Q. What is the purpose of this regulation?
A. After publication of  the inventory, persons who  intend  to
   manufacture  any  chemical  substance  not included  on  the
   inventory must give EPA  premanufacture notification. EPA will
   use  the other  information reported  to help set  priorities and to
   monitor chemical substances in the  environment.
Q. How do  these final reporting  regulations compare  with those
   proposed on August 2,  1977?
A. Like the August 2 proposed regulations, these regulations require
   reporting by plant  site and  production  volumes for chemical
   substances manufactured  for commercial purposes in calendar
   year 1977.
                            i:

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   The criteria for "who must report" have been slightly modified,
   but the number of firms required to report should be about the
   same (an increase of 425 firms).
   On the other hand, there are several modifications to reduce the
   reporting burden to industry.
   (1) The definition of intermediate has been modified to exclude
      fleeting intermediates. Only intermediates which are actually
      isolated  or removed from  the equipment in which they are
      manufactured are to be reported.
   (2) Production volumes may be reported in broad ranges, not
      more specifically as proposed earlier.
   (3) Importers are now required to report only bulk chemical
      substances, and do  not have to  report the components of
      articles,  and
   (4) The  definition of "small manufacturers and importers" has
      been changed from $100,000 total annual sales, 2,000 pounds
      production, and one plant site, to $5 million total annual sales
      and  100,000 pounds production of chemical substances.
Q. How many manufacturing firms  will be required to report under
   these regulations?
A. About 5400 firms will be required to report, or 8400  sites.  This
   compares with 4975  firms or 7400 sites included in Standard
   Industrial Classification groups 28 and 2911 that were subject to
   the reporting requirements as proposed in August. Thus the final
   regulations  are slightly more comprehensive than the August 2
   proposal, requiring some 425 additional firms to report. Pulp and
   paper mills, which  were previously exempted, will probably be
   required to  report.
Q. What manufacturers and importers are required to report for the
   initial inventory?
A. All manufacturers who meet the following criteria must report all
   chemical substances at a plant site if:
   (1) Thirty percent or more by weight of the products distributed
      from the plant site during  calendar year 1977 were products
      within SIC groups 28 (Chemicals and Allied Products) or 2911
      (Petroleum Refining Products), or
   (2) The total pounds of reportable chemical substances manufac-
      tured at the plant site during calendar year 1977  equal one
      million or more pounds.
   In addition, manufacturers must report any chemical substance
   not reported under (1) or (2) that was manufactured in quantities
   of 100,000 pounds or greater at a plant site during calendar year
   1977.
   The reporting  requirements for  importers are  parallel to these,
   except importers  do not report by site.
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Q. When does the reporting period begin?

A. There are two reporting periods under the final regulations, one
   for the initial inventory and one for a revised inventory. Only
   manufacturers and importers may report for the initial inventory.
   Processors may report for the revised inventory.
   Reporting for the initial inventory will begin on January 1, 1978
   and extend to May  1,  1978. Most manufacturers of chemical
   substances, and importers of chemical substances in bulk form,
   must  report concerning chemical  substances manufactured  or
   imported for commercial purposes during the calendar year 1977.
   Manufacturers and importers may  report concerning substances
   manufactured since January 1, 1975.
   Reporting for a revised inventory will begin upon publication of
   the initial inventory.  During this period, processors and users of
   chemical substances for commercial purposes, and  importers of
   chemical substances as parts of mixtures or articles, may report
   those  chemical substances eligible  lor,  but not included  on the
   initial inventory. The reporting period will last seven months(210
   days).
Q. When may persons who process chemical substances report?
A. Persons who only process a chemical substance, that is. who buy a
   chemical substance to use as a raw material  in manufacturing
   another chemical substance, mixture, or article, may report for
   the revised  inventory  during  the seven-month  period  after
   publication of the initial inventory. Processors may then report
   any substance not included on the initial inventory. In an effort to
   avoid duplicative  reporting, processors are not subject to the
   initial inventory.
Q. When will the inventory be published?
A. At the earliest, the initial inventory will be published in late 1978.
   The revised inventory, based on additions from processors, users
   and importers of chemical substances  as part of mixtures and
   articles, will be  published  in late 1979.
Q. When will premanufacture notification requirements begin?
A. Thirty days after publication of the initial inventory, any person
   intending to manufacture  or import in bulk form a chemical
   substance not included on the inventory must submit premanufac-
   ture notification  for that substance. Thirty days after publication
   of  the  revised   inventory,  no person  may  import a mixture
   containing a chemical substance not included on the inventory.
   EPA  is still  considering whether  persons who import  (some)
   articles must report with respect to (certain) chemical substances
   which comprise  those articles.
                              14

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Q. How do the final regulations define  "small manufacturer or
   importer?
A. Any manufacturer or importer whose total annual sales are less
   than $5 million qualifies as a small manufacturer or importer for
   the purposes of  the inventory. The $5 million  sales criterion
   applies to the company, its parent company, and all companies
   owned or controlled by the parent company taken together. No
   company is considered to be a "small manufacturer or importer"
   wifh  respect to any chemical which it produces or imports in
   quantities of 100,000 pounds or more at one plant site.
   This  definition  of small  manufacturer may be used for the
   inventory reporting regulations  only.  Future  reporting rules
   under Section 8  will reevaluate the burdens involved and the
   definition of small manufacturer may be adjusted accordingly.
Q. How many firms qualify as "small manufacturers" under this
   definition?
A. Approximately 4200 firms out of 5400 firms required to report (78
   percent)  will qualify  as  "small  manufacturers" under these
   regulations.
Q. What is the small manufacturer or small importer exempted from?
A. Small  manufacturers  and  importers  are not  exempt from
   reporting information necessary for completion of the inventory.
   They must report at least the identities of the chemical substances.
   Small manufacturers are  not required  to  report separately for
   each  plant  site.  Small manufacturers  and importers are also
   exempt   from  reporting  production  volumes.  However,  no
   manufacturer or importer is a "small manufacturer or importer"
   with  respect to the chemical substances produced in quantities
   greater than 100,000 pounds at one  plant site.
Q. What is the total of these regulations?
A. EPA estimates that the total cost for the industry of complying
   with these reporting regulations will be $13 million.
Q. What chemical substances may be reported for the  initial or
   revised inventories?
A. Any chemical substance within the jurisdiction of TSCA which
   was manufactured,  imported, or processed for a commerical
   purpose since January 1, 1975, may be included on the inventory.
Q. What chemical substances are excluded from the inventory?
A. The  following chemical  substances are  excluded  from the
   inventory and premanufacture reporting requirements:
   (1) Substances which are manufactured or imported for use solely
      as a food, food additive, drug, cosmetic, or device, including
      substances used solely  as intermediates  in the manufacture of
                             15

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      those products.  These substances are regulated under  the
      Federal Food, Drug, and Cosmetic Act.
   (2) Substances manufactured or imported  solely for  use as  a
      pesticide. Chemical substances manufactured or imported for
      use as an intermediate in the manufacture of a pesticide are not
      themselves pesticides under the Federal Insecticide, Fungicide
      and Rodenticide Act.

   (3) Chemical  substances manufactured  or imported  in  small
      quantities for use solely in research or development (any
      substance manufactured in 1,000 pound quantities or less will
      be presumed  to be manufactured for research purposes).
   (4) Any impurity.
   (5) Any byproduct which has no commercial purpose.
   (6) Other chemical substances that occur incidental to storage; or
      upon end use of another chemical  substance, mixture, or
      article (such as chemical substances that may occur  upon use
      of flares or batteries; processing of curable plastic molding
      compounds; application of paints; or upon dying a fabric, for
      example), as  provided in section 710.4(d).

Q. What information is entitled to confidential treatment?
A. Any  piece of data submitted to the agency may be  claimed as
   confidential. This includes chemical identities.

Q. How will EPA protect confidential data?
A. EPA is in  the process of developing procedures for  handling
   confidential data. A Confidentiality Task Force is investigating
   the following: (1) physical  security, (2)  computer security,  (3)
   employee security (including those of contractors). Under TSCA,
   there are strong penalities for employees who release confidential
   data. These procedures will be effective before the initial inventory
   is published. EPA has inspected Chemical Abstract Services, who
   will be processing the report forms, and is satisfied that adequate
   safeguards have been taken.

Q. Will the general public have access to information collected under
   the inventory reporting regulation'.'
A. Yes. Copies of the inventory and the list of generic names for those
   chemical substances whose identities are confidential will be avail-
   able  to the public.  The inventory will  contain only  chemical
   names, but other non-confidential information  will be available
   on request. EPA  is working on ways to make all  non-confidential
   data readily available to the public. This includes data such as pro-
   duction volumes, company names,  and plant sites.
                              16

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Q. How can the public find out about chemical substances whose
   identities are confidential?
A. Along with the initial inventory, EPA will publish a list of generic
   names  for  those  chemical substances whose  identities are
   confidential. Thus the public will have a general idea  about the
   kinds of chemical  substances  which do  not appear  on the
   inventory because of entitlement to confidentiality. In response to
   a Freedom of Information Act Request, EPA's Office of General
   Counsel will make a confidentiality determination. If the  claim is
   validated, EPA will deny the request for information. If the claim
   is not validated, the submitter will be informed of EPA's intention
   to release the data to the public thirty days prior to its release.
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