Toxic Substances Control Act:
          Existing Chemicals Program
                 October 1982

          Office of Toxic Substances
  Office of Pesticides and Toxic Substances
United States Environmental Protection Agency
               Washington, D.C.

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                              NOTE
     This document is a Supplement to the January 1982
report, Priorities for OTS Operation.  The earlier report
is staff guidance for the management and operation of the
TSCA new and existing chemicals program.  This document,
Fxisting Chemicals Program, represents further refinement
for improving TPA's effectiveness in protecting the public's
health and environment from unreasonable risks caused
bv existinrr chemicals.  It was prepared primarily for
internal office of Toxic Substances Guidance and planning.
It oresents the office Director's current position.

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PROGRAM DESCRIPTION  DOCUMENT
 EXISTING CHEMICALS  PROGRAM
    I.  INTRODUCTION

   II.  THE PROGRAM

  III.  EXPECTED OUTPUTS

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                    PROGRAM  DESCRIPTION DOCUMENT


                    EXISTING  CtiEMICALS PROGRAM
I.   INTRODUCTION


The overall  goal of  the  Existing  Chemicals Program, under the

Toxic Substances Control Act  (TSCA),  is  to reduce unreasonable

risks of  injury to health  or  the  environment from chemicals that

are already  in commerce.   More  specifically,  the objectives of the

Program are  to:



     •  Identify and evaluate potential  risks,

     •  Decide whether specific chemicals  need  to be tested
        for  health and environmental  effects.

     •  Decide whether action is  required  to reduce risks;
        then define  and  implement such  actions.


Scope

This paper describes how EPA's  Office of Toxic  Substances is

accomplishing the functions involved  in  the Existing Chemicals

Program.  It does not cover identification of testing needs in

response to  recommendations by  the  Interagency  Testing Committee

(ITC),  established under section  4  of TSCA.   The process for

responding to the ITC recommendations and  testing such chemicals

is described in other papers  associated  with the TSCA section 4

testing program."  This program does include the  further evaluation

of chemicals after testing in compliance with section 4 of TSCA.
                                -1-

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Priorities

The priorities for considering chemicals  in  this  Program are  as

follows:

     First Priorj-ty.  Chemicals that emerge  from  the  testing
     program under section 4 of TSCA, or  from other Government or
     industry sponsored testing programs.

     Second Priority.  Chemicals for which there  is information
     (asreported under TSCA section 8(e)) that reasonably
     supports a conclusion of significant risk.

     Third Priority.  Chemicals that are  the subject  of  citizens'
     petitions for action under section 21 of TSCA.

     Fourth Priority.  Chemicals already  in  commerce  that are
     identified, in the course of review  of  premanufacture notices
     on new chemicals under section 5 of  TSCA, as possible
     problems.
Features
Some of the features of this Program  that  improve  EPA's

effectiveness in protecting the public's health  and  the

environment from unreasonable  risks caused by existing  chemicals

are highlighted below.'

     •  The Program focuses on specific effects  of concern,
        rather than on a more general  study of a chemical's
        characteristics.  Actions  are  initiated  promptly to  pursue
        or drop a chemical from further consideration based  on
        specific Program actions and  results.

     •  The Program embodies a. project management  approach."   A
        project manager heads  up a team of experts,  drawn from
        several organizational units,  and  maintains  continuity of
        management throughout  the  process.   This reduces the
        potential for "dropping the ball"  between  sequential
        evaluations conducted by separate  organizational units.

     •  The program obtains hazard and exposure  data more
        efficiently, by being  selective and operating  in a "step-
        wise" manner.  The first stages of this  new  evaluation
        process consist almost exclusively of collecting specific
        effects and exposure data  that fit together  in  inter-
        dependent increments.  Acquisition of exposure  data  under
        TSCA has been more complex than for example  under the


                                —2—

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   pesticides and food and drug  laws, which  are  product
   specific.  Under those laws,  the dose received,  the manner
   of application, and the exposed population  usually have
   been known or well estimated  at the  start of  any
   evaluation.  Because TSCA concentrates  on chemicals,
   rather than specific products, exposure information can  be
   available from a wide range of sources.   In the  past,
   effects and exposure evaluations based  on such data were
   very broad and tended to be developed independently.   This
   process of evaluation was very difficult  to design and
   carry out.

•  The Program emphasizes negotiation and  information
   exchange among EPA, industry, and the public  to  reduce
   risks.  In addition to encouraging early, non-regulatory
   preventive action, EPA will require  risk  reduction
   measures whenever necessary or appropriate.
                           -3-

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II.  THE PROGRAM


The Existing Chemicals Program consists  of  a  five-phase  process  of

evaluation and action for risk reduction.   These phases  (as

depicted in the flow diagram and described  below)  are:

     Phase 1.  Entry Review
     Phase 2.  Problem Characterization  & Information  Identification
     Phase 3.  Information Gathering & Risk Analysis
     Phase 4.  Risk Reduction Analysis
     Phase 5.  Risk Management


EPA's evaluation begins with an entry review  to determine  if a

chemical has properties that may result  in  significant risks.

After a determination has been made that a  chemical has  such

properties, the process concentrates on hazard and exposure

questions to verify and characterize the risk.  The questions  to

be answered during the evaluation are:

     •  Is there a verified and significant risk or an
        exposure that would require testing?

     •  If so, how should the risk be addressed?

     •  What is the nature of the effect?

     •  What are acceptable exposure limits?

     •  What are cost-effective ways of  controlling exposure?


The latter phases of the process address questions concerning

methods and costs of reducing risks where appropriate.


To answer these questions, the evaluation process  establishes  a

series of evidence thresholds to confirm the  validity of the

risk.  If the data do not meet these evidence thresholds,  the

chemical is dropped from further evaluation.  The  information

needed for the evaluation is collected incrementally, with


                                -4-

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available  information  used  first to help define and focus any



additional  information gathering efforts.   This results in more




effective  and  cost-efficient  data collection and analysis and also




more rapid  and  focused decisionmaking.






For ease of explanation,  the  following  process is described as if




all chemicals proceed  fully through all steps and phases.




However, evaluation  of many chemicals,  such as those for which




tests have  been completed under  TSCA section 4, or some of the




chemicals  described  in section  8(e) notices,  can progress quickly




to more advanced analysis toward the end of the process.  In




addition,  at any point in the process where it becomes clear that




a problem  should be  addressed by another EPA program office or




another agency, that office or  agency is contacted to either take




over further evaluation or  join  Ln the  3TS work.








?"ASE 1.   ENTRY REVIEW
This is a two-step  review phase  during  which EPA selects




candidates for evaluation,  advances  them to the appropriate phase




for further evaluation, and  augments the data on the candidates,




as needed, for the  next phase.   Step 1  is for chemicals that have




not previously been evaluated  under  TSCA (e.g.,  section 8(e)




notices, or data from the National Toxicology Program).  Step 2 is




both the next step  for the  above  chemicals  and the first step for




chemicals previously evaluated  (e.g., section 4 test chemicals),




or chemicals referred to TSCA  jurisdiction  after evaluation by




another regulatory  program.
                                "5 —

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Step 1.  The purpose of  this  step  is  to  screen candidates for

further evaluation.  The main  criteria for  entry are:

     •  The chemical is  on  the TSCA  Inventory.

     •  Effects data indicate  that the chemical may be
        capable of causing  serious or long-lasting  or
        irreversible harm to health  or the  environment.

     •  Production volume and  characteristics  of use of  the
        chemical are potentially significant considering the
        data on effects.

     •  The potential problem  is not  likely to be remedied by
        another program.
Step 2.  In this step, the  candidates  that  are  selected by the

above criteria are reviewed to determine  whether  either a Chemical

Hazard Identification  Profile  (CHIP) document,  summarizing readily

available literature should be prepared as  a  basis  for problem

characterization, or sufficient  information is  available for

advancing the evaluation to a later phase in  the  sequence.  If a

CHIP is considered necessary, OTS  decides on  its  content and

prepares the document  at this point.


Step 2 is the entry point for chemicals that  have previously been

evaluated, such as section  4 test  chemicals.  The review at this

step determines the phase of evaluation at  which  further analysis

will be done, including analysis for risk reduction.


This entry review usually takes  about  10  days.  A careful, but

brief,  reference record is  kept  of entry  data reviewed and

decisions made.
                                -6-

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PHASE  2.   PROBLEM CHARACTERIZATION


This phase of  evaluation has  two  objectives:

     •  To identify the nature  of the  data and analyses that
        need to be added to the information already available
        at entry review or from a CHIP.   This  is needed in
        order  to verify the available  data and to permit a
        decision on the seriousness  of the apparent risk.

     •  To decide the most cost-effective method and order by
        which  the identified  data can  be  gathered and
        analyzed and to create  a  plan  for data collection to
        be carried out in the next phase.


As a simple example, if skin  absorption  were  one of the routes of

exposure of concern, additional data might be  needed both on

whether the chemical can be absorbed through  skin,  and on how much

skin exposure  to the chemical actually occurs.  Lf  testing for

absorption data were less costly  than  additional exposure data,

this testing generally would  precede gathering of exposure data.


However, if more costly testing were needed,  exposure 
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a relevant factor may be the extent  to  which  occurrence  of  the

effect is affected by metabolic degradation or bioaccumulation  of

the chemical.  Another crucial question is whether  available  data

are sufficient for predicting dose-response relationships,  so that

exposure levels of concern can be  identified.  Identifying  the

exposure levels of concern is important not only  for  estimating

the significance of tVe risk, but  also  for defining the  kinds of

exposure sources on which data are needed.


The time and resources required for  this characterization phase of

evaluation depend on the completeness of information  already

available.  Chemicals that have been evaluated and  tested under

section 4 of TSCA may only require a brief evaluation at this

state, or may by-pass it.


This phase takes approximately 3 to  6 months  for  chemicals  not

previously evaluated.  The products  of  evaluation are:

     •  A paper characterizing the problem and recommending
        whether the apparent risk  is sufficient for continued
        evaluation.

     •  A plan for activities in the next phase of
        evaluation.  Such activities can include  discussion
        with industry to obtain additional exposure data;
        section 8 rulemaking to gather  production,  use,  and
        other exposure related information; section 4
        rulemaking to require testing:   Government  funded
        testing, or negotiations with industry for  testing.


PHASE 3."  INFORMATION GATHERING AND  RISK ANALYSIS


The scope of the work at this phase  of  evaluation results from

decisions made in the previous phase.   The objective  of  the work

is to determine the actual character and significance of the  risk.
                                -8-

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Data are analyzed from perhaps several, progressive cycles of data



gathering conducted during this phase.  The analyses match data on



the types and degrees of exposure with data on dose response, in



order to assess the risk and to decide whether consideration of



risk reduction alternatives is warranted.





In cases where evidence is accumulating that the risk is



significant, it may also be appropriate to obtain a brief profile



analysis of the market for the chemical.  This information may



help answer the question of how to approach exposure reduction.



It also may highlight features of the market that need special



attention, such as the existence or non-existence of substitutes



for the chemical.






This phase of evaluation ends 1) at any time that an analysis



shows that no action is needed because significant risk has not



been verified, or 2) with a decision that risk reduction



alternatives will be considered.  The decision to end this phase



of evaluation is supported by a risk assessment document that



incorporates the results of the completed analyses on which the



decision was based.





Varying amounts of time will be taken for activities in this



stage.   If an information gathering step is a major test program,



it will take months to years.   It will take a much shorter period



if, for example, the only need is for the determination of an



exposure level for a well-defined use of the chemical.

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This phase has been described as  solely  a  data  collection  and




analysis effort.  However, whenever  it becomes  apparent  in the




light of the developing picture on a chemical hazard  that  there




are actions that can be taken to  reduce  or prevent  risks,  EPA will




take immediate action to  inform industry.  The  Office of Toxic




Substances uses a Risk Management Advisory  (RMA,  as described




under Phase 5) or other means to  convey  such information to




industry and other interested parties.








PHASE 4.  RISK REDUCTION  ANALYSIS
The objective of the risk reduction analysis phase  is  to decide



whether to proceed with action to achieve risk  reduction and,  if



so, how.






Analyses to support this decisionmaking  include the estimated



costs of effective alternatives for controlling exposures.



Alternative options include such things  as  changing to



substitutes, changing practices for handling the chemical,  or



product labeling.  These analyses also address  the  economic



impacts of alternatives, apart from the  direct  costs of  exposure



controls.  The first analyses performed  are short term (2 month)



efforts designed to provide information  on  the  relative  costs  and



impacts of alternatives.  These are intended to be  first



approximations rather than complete assessments of  any of the



alternatives.  More complete analyses are performed later,  if



appropriate.
                               -10-

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When  the  analysis has  identified the potential ways of achieving

reduction of  risk, discussions  with industry and other interested

persons are undertaken.   Economic analyses are then further

developed based, in part,  on  additional information gained from

industry  discussions.  These  kinds of discussions are an important

first step when  rulemaking is considered.   For proposed rule-

making, OTS expands the  risk  reduction analysis in order to

support the public proposal for comment.


Another outcome  of the risk reduction analysis may be a

recognition that effective action can be  taken under the

jurisdiction  of  other  legislation.  If so,  the next step is to

consult with  the program administering that legislation to decide

whether OTS should transfer responsibility to the other program,

or proceed with  joint action, as the more  appropriate course.



PHASE 5.'  RISK MANAGEMENT


EPA undertakes risk management  activities  in two areas:

     •  Developing basic data about chemical effects and
        exposure and informing  industry and the public about
        the risks.

     •  Developing and implementing methods for risk
        reduction.


In both these areas, EPA takes  action through discussion and,

where appropriate, negotiation  with industry and other interested

parties.  (OTS has begun to use a negotiation process for reaching

testing agreements.  This  process is  described in other papers

associated with the testing process.)
                               -11-

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In the course qf the evaluation  sequence  described  earlier,  OTS



uses opportunities to bring  industry  and  public  interest



representatives into discussions  of the exposures to the chemical



being evaluated.  When the exposure information  needed is



accessible to a small enough number of companies to make a



voluntary information submission  feasible,  OTS pursues that



course.  In other cases, the discussions  aid  OTS in formulating



more structured approaches to obtaining the necessary data such as



a rulemaking under section 8 of TSCA.






Several approaches are used  to achieve risk reduction.  The



objective is to effectively  and  expeditiously control exposures to



chemicals of concern.  If exposure controls must be mandatory to



be effective, and the risk is unreasonable, then rulemaking  under



section 6 of TSCA is the appropriate  approach.   In  such cases,  OTS



considers applying negotiation and consensus-building processes,



such as those currently under study by the  Administrative



Conference of the United States,  to prepare rules.   These



processes hold promise for shortening the overall time required to



adopt controls.





Where opportunities exist to prevent  risks  or reduce existing



risks by encouraging voluntary adoption of  exposure controls,



labeling, or other information practices, these  opportunities are



pursued.  At present, companies that  recognize and  report (under



section 8(e)) evidence that  a significant risk exists also discuss



with OTS the kinds of steps  they  can, or  have taken to reduce the



potential risk.  When appropriate, OTS will broaden these
                               -12-

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discussions  to  include  other companies and the public in order to




encourage the adoption  of  effective practices.





OTS will also take  a  very  active approach to directly convey



information  about risks  and  risk prevention and control to



chemical manufacturers  and users.   This may take the form of



making data  available,  or  of convening a public forum for



discussion of the properties and risks of a chemical, or of




issuing Risk Management  Advisories  on risks to appropriate



segments of  industry.






Publication  of  RMA  on chemicals  is  a new process.   An Advisory on



a chemical would contain three kinds of information.  It would



first describe  the  toxic effect  of  the chemical that is of



concern; second, it would  describe  the routes and  levels of



exposure that result  in  risks of harm; and third,  it would set out



alternatives for reducing  exposures to acceptable  levels.   Each



Advisory would  be addressed  to the  particular group whose action



is needed,  e.g., manufacturers,  processors,  or users.  The aim of



publishing an FMA is to  influence and encourage exposure reduction



where incentives exist  for industry to act.






Advisories would be issued by OTS through public procedures.   They



would be issued after discussion with industry and other



interested parties, relying  to best advantage on any consensus



that was reached in these  discussions.  Each issuance of an



Advisory would  required  a  plan for  obtaining input from interested



persons prior to issuance.
                               -13-

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The circumstances for publishing an Advisory would vary in scope.



For instance, in one case in the past, a manufacturer reported to



OTS that it had discovered that a particular chemical should not



be used in the presence of HC1 since it would react with the HC1



and the reaction product could cause a hazard.  The company had



already advised its customers of the problem.  In such a case in



the future, an Advisory on the problem could be issued with



agreement from other manufacturers to distribute it to their



customers.  This kind of Advisory of small scope could address a



problem effectively, at minimal cost, and could be negotiated by



letter and telephone.  A larger scope Advisory would require more



complicated procedures and more extensive evaluation.





Situations in which Advisories could be used would include, for



instance, those in which the submitter of a notice of evidence of



significant risk, under section 8(e) has taken effective action  to



prevent risks, and EPA wants to encourage similarly effective



action on the part of other companies.  A parallel situation



occurs occasionally in connection with submission of premanu-



facture notices (PMN's) for new chemicals under section 5 of



TSCA.  The PMN submitters report practices they intend to use to



control exposures.  OTS could use Advisories  to ensure that



subsequent manufacturers are aware of any potential risks and of



methods of avoiding such risks.
                               -14-

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III.  EXPECTED OUTPUTS








The evaluation of apparent chemical risks will  have  several



outputs that meet the goals of TSCA.  These outputs  will  be  of



four kinds:



     o  basic data,



     o  analyses of risk,



     o  decisions whether risks merit further action,  and



     o  actions to reduce or avoid risks where  appropriate.



This section describes these outputs.








BASIC DATA AND RISK ANALYSIS
The information gathering and analysis phases  of  the  evaluation



process described in Section II produce basic  toxicity  and



exposure data, and analyses of risk based on these  data.  These



data and analyses are both valuable as extensions of  knowledge  for



public and industry use, and necessary for decisions  on the  need



for further action under TSCA or another authority.








DECISIONS ON RISK AND ACTIONS TO REDUCE RISK






The final outputs of the evaluation process are  the decisions  that



show the findings of the evaluation plus any resultant  actions  to



reduce risks.  In some cases, the final output is a conclusion




that the existence of the risk originally suspected is  not borne



out by the evidence, or that the risk found is not  significant  or



unreasonable.  In other cases, an RMA, developed during  the

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information gathering phase, is issued.  This  can  result  in



exposure reduction and consequently in a reduction of  risk to



reasonable levels, thus making any statutory action  unnecessary.



The evaluation may, however, lead to action under  TSCA or another



statute to reduce or avoid  risks from a chemical.  Under  TSCA,



action will include rules under section 6 to control unreasonable



risks.
                               -16-

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