PB-243 459

A FRAMEWORK  FOR THE CONTROL OF  TOXIC SUBSTANCES
(A COMPILATION  OF SPEECHES)

Glenn E.  Schweitzer

Environmental  Protection Agency
Washington,  D.  C.

April 1975
                          DISTRIBUTED BY:
                          National Technical Information Service
                          U. S. DEPARTMENT  OF  COMMERCE

-------

-------
I^^^A^, '.^^^^1^^^ w'M^;
»:;»>i> ,4•:•''.•*•'•..». a.^O:P'^'i;'/.>iiV^-7.^'M^sifi:^'^-''5.-i>;rii';:«3v*:i->w-i*:-tt.:«*it(i:?*-i

-------
BIBLIOGRAPHIC DATA
SHEET
•••••••^•••^••^^••••^•••^•^•^•••^•••H
4. Title and Subtitle
1. Report No.
    EPA 560/4-75-004
 A  Framework for  the Control  of Toxic Substances (A Compilation
  of Speeches)
                                                   Report Date
                                                   April  1975
                                                 6.
                                                                      Of.  of Toxic Subs.,  EPA
7.
 Office of Toxic  Substances,  EPA
                                                 8. Performing Organization Rept.
                                                   No.
9. Performing Organization Nome and Address
 Office of Toxic  Substances
 Environmental Protection Agency
 401  "M" Street,  SW
 Washington, DC   20460
                                                 10. Project/Task/Work Unit No.
                                                  None  Assigned
                                                 11. Contract/Grant No.
                                                  NA.
12, Sponsoring Organization Name and Address

 Same  as No. 9.
                                                 13. Type of Report & Period
                                                   Covered

                                                 ompilation of Speeches
                                                 14.
IS. Supplementary Notes
 Collection of speeches of the  Director of  the Office of  Toxic Substances from April
 1973  to March 1975.
16. Abstracts
 This  collection  of speeches  1n  large measure  reflects the  evolution of the interests,
 policies, and programs of the Office of Toxic Substances from April 1973 to March  1975
 The  speeches deal  with questions  that are of  broad national  concern:   the identifica-
 tion  of chemical  hazards, the need for development of toxicological and other data
 on chemicals, the pending Toxic Substances  Control Act, and  need for  regulation
 to control toxic chemicals.
17. Key Words and Document Analysis.  17a. Descriptors
 a.  Toxic Substances Control,  Regulation of Chemicals,  Economic Aspect of Control,
     Vinyl Chloride,  Testing of Chemicals
I7b. Identifiers/Open-Ended Terms
 b.   Toxic Substances Control Act,  Chemical  Industry, Testing of Chemicals, Regulation
      of Chemicals
i7c.cosATi Fieid/c,rouP c>   TOX1C Substances Control  Act, Office  of Toxic Substances
18. Availability Statement
                                     19. Security Class (This
                                       Report)
                                          UNCLASSIFIED
                                     20. Security Class (This
                                       Page
                                          UNCLASSIFIED
121  No. of Pages
FORM NTIS-SB IBEV. 10-73)  ENDORSED BY ANSI AND UNESCO.
                               THIS FORM MAY BE REPRODUCED
                                                                                U3COMM.DC 828S-P74

-------
EPA 560/4-75-004
               A FRAMEWORK FOR THE CONTROL OF

                       TOXIC SUBSTANCES
                   A Compilation of Speeches by

                       Glenn E. Schweitzer
                           Director
                   Office of Toxic Substances
                Environmental Protection Agency
                     Washington, DC 20460
                          April 1975

-------
                    PREFACE

   This collection of  speeches by  the Director of
the Office of Toxic Substances in  large measure re-
flects the evolution of the  interests,  policies,  and
programs of the Office from April 1973 to  March
1975. In most cases, the activities of the Office have
reflected broad national concerns  of interest to many
Federal agencies and to many non-Governmental or-
ganizations.  Hopefully,  this collection, and particu-
larly the more recent  statements, will be helpful to
specialists and other persons  concerned with Govern-
mental policies and objectives in this field.

   Many of the ideas set forth in the speeches origi-
nated with different  members of the Office staff, and
these contributions are gratefully acknowledged. Also
deserving special recognition is the unfailing secre-
tarial  assistance of Mrs.  Willie Wheeler and  Ms.
Carol Kilgore in preparing texts  that are invariably
put into final form  under very tight deadlines  just
prior to the presentations.
                       1H

-------
           TABLE OF CONTENTS
        The Risks, the Benefits, and
          the Costs
18
Preface
1
TOXIC SUBSTANCES: LEGISLATION, GOALS
 AND CASE STUDIES                        I

    Toxic Substances Control Act                '
    Program Goals                            2
    Case Histories                             3
ECONOMIC ASPECTS OF TOXIC
 SUBSTANCE CON  ROL                     S

    Milestones During 1973                     5
    What Is Unique in Addressing Toxic          S
      Substances?
    Some Considerations in Risk/Benefit          6
      Analysis
    Internalization  of Social Costs                6
    The Energy Crisis and Toxic Substances       7
    Toxic Substances  in the Mid-1980's           7
1974—A YEAR OF TRANSITION              . 9

   The Issues for 1974                         9
   The Chemical Industry and
      Policy Issues                           11
   Looking Ahead                           12
EPA PROGRAM INTERESTS AND TESTING   13

    Testing Required of Industry                13
    Policy Concerns in Developing Requirements   13
      for Industrial Testing
    Governmental Support of Testing            14
    The Use of lexicological Data              14
ENVIRONMENTAL  CONCERNS BEYOND 15
  THE WORKPLACE
    EPA Regulatory Authorities                15
    The Materials Balance                     16
    The Need for Epidemiological and           16
      Toxicological Studies
    Monitoring, Persistence, and Migration       17
      Studies
    Concerns Over Disposal of PVC             18
                                                CHEMICALS, THE  ENVIRONMENT.  AND  19
                                                 REGULATION
        Toxic Substances Control Act
        Chemicals and Corporate
         Responsibility
        The Vinyl Chloride Case Study
        Toxic Substances in the Mid-1980's
20
21

22
23
    REGULATORY  ASPECTS  AND RESEARCH 25
      NEEDS

    CHEMICALS AND THE ENVIRONMENT: THE 27
      FUTURE IS NOW

        Chemicals, the Worker, and the Environment  27
        20,000 Chemicals                         27
        Vinyl Chloride—Better Late than Never?     28
        The Need for a Legislative Mandate         30
        Looking Ahead                           30

    VINYL  CHLORIDE. THE TIP   OF  THE 31
      ICEBERG?

        Chemicals, Industry, and the Environment     31
        The Case of Vinyl Chloride: Better Late      31
          than Never?
        Industry's Responsibility            33
        Lessons Learned from the Vinyl             34
          Chloride Experience
        Looking Ahead                           35

    THE TECHNICAL IMPLICATIONS OF TOXIC 37
     SUBSTANCES LEGISLATION

        Limited Progress in  1974                   37
        Chemical Problems  Continue to Emerge      37
        Concepts Embodied in the Proposed Toxic    38
          Substances Control Act
        Prospects for  1975                        40

    CHEMICALS, REGULATIONS, AND THE EN- 41
      VIRONMENT

        Toxic Chemicals and the Soap and           41
          Detergent Industry
        A General Perspective                     41
        The Need for Toxic Substances              43
          Legislation
        Recent Enactment of Drinking Water         44
          Legislation
                                             IV

-------
    Testing as a Key to Better
      Understanding
44
TOXIC CHEMICALS  AND REGULATORY 47
  DECISION MAKING: PHILOSOPHY AND
  PRACTICALITY

    The General Framework                   47
    Trends in Regulatory Decision Making       47
    Needs of Regulatory Decision Making        43
      in the Near Future
    The Scope of this Meeting                  48
    Examples of Practical Regulatory            49
      Problems
    The Output from this Conference            SO
   The Control of Toxic Substances in the        50
     Years Ahead

CURRENT  TRENDS IN THE  CONTROL  OF 51
 CHEMICALS

    The Rapid Growth of Chemical Problems      51
    The Development of the Legislative Basis      51
      for Controlling Toxic Chemicals
    Intercepting the Problem at the Outset         52
    Cost/Risk/Benefit Considerations            52
    The Special Responsibilities of              53
      Industry
    A New Departure towards Common          54
      Understanding

-------
TOXIC SUBSTANCES: LEGISLATION, GOALS,
             AND CASE STUDIES
        The Fourth Annual Conference on
           Environmental Toxicology
         University of California, Irvine
                 Fairborn, Ohio
                October 16.  1973
  I had hoped to be able to report to you today on
the passage of the Toxic Substances Control Act of
! ^73 and the initial steps being undertaken in the
implementation of this new law. However, there are
a number of complicated aspects of the legislation,
and it will still be some time until the conferees for
the Senate and the House are able to reconcile the
differences that exist in the two versions of the bill
passed in July by these bodies. We arc optimistic that
agreement soon will be achieved on nil provisions
and that this much needed regulatory authority to
control toxic substances  will become luw.
  In view of I he uncertainty as to the details of the
proposed legislation, I have decided to refer t<> its
specific provisions only briefly today and then
concentrate on some of the broader aspects o( our
overall program. Specifically. I plan to set forth
si-mc of the general goals of our approach to the
control ol toxic substances and then discuss severa I
case histories of very recent concern to us, the
problems toxic substances are causing  in these
instances, and those aspects of the problems of
particular interest in toxicologists.

TOXIC SUBSTANCES CONTROL ACT

  The proposed Toxic Substances Control Act
Mould give  EPA new authority for (a) information
acquisition, and (b) restrictive actions. EPA could
require testing of chemical substances (both existing
and new) which are suspected to pose unreasonable
risks and also require other information from
manufacturers including the name of the substance,
chemical formula, amounts produced, actual or
intended uses, and known by-products. EPA could
then restrict the use and distribution of chemical
substances found to pose unreasonable risks. The
Agency could prescribe the amounts of a chemical
which may be sold to processors, limit  the type of
processor to whom it may be sold, restrict the
amount a given type of processor may use, or limit
the sale or manner in which a substance may be used,
handled, labelled, or disposed by any person.
  This new authority is important from two
standpoints. First, the Federal Government is given
direct authority to restrict substances presently in
commercial use (hat arc known to cause health or
environmental hazards, and when effects
information is lacking, to require testing of the
substance by the manufacturer to assess human  or
environmental impact. Second, for substances not
yet in commercial production, the Agency could
require premarket testing and review of chemicals
suspected to be hazardous. The Agency would have
the opportunity to assess the risks before the new
substances arc commercially produced and to take
appropriate regulatory action to prevent toxic
incidents.
  Given the extensive scope of the legislation, the
number of areas of initial emphasis will depend to a
significant degree on the  staff and resources
available for implementation activities. In selecting
areas for priority attention consideration should be
given to Congressional mandates, severity and
urgency of existing problems which can be alleviated
by the new authority, opportunities to reduce future
problems of major dimensions, and necessity for
establishing long-term viability of implementation
procedures.
  While the final version of the legislation may
influence the choice  of initial activities, it seems
clear that the following activities should be high on
'.he agenda for early  attention:
     Elaboration and articulation of the criteria or
     sets of criteria to be used, in weighing risks
     versus benefits, and in determining when
     regulatory action is needed. Clear
     understanding by both industry and
     Government of the ground rules for
     restrictions is essential to the viability of
     industrial R & D activities.

     Determination of the character and scope of
     initial testing requirements, including the
     possibility of umbrella testing requirements .
     for a broad range of chemical classes, and
     identification of specific chemicals or classes
     or chemicals of particular immediate concern.
     While the selection of substances covered by
     the standards for test  protocols that are
     initially promulgated will in large measure
     reflect intuitive judgments concerning likely
     ha/ardsand inadequacy of current data,
     concurrent work is needed to provide a  basis

-------
     over the longer term for selecting areas of
     concern.

  — Development of regulations setting forth
     timing, coverage, content, and format of the
     reporting requirements for chemical
     manufacturers and processors, including both
     annual reporting and premarket notification,
     as appropriate.

  — Establishment of a data system for handling
     the industrial reports and test results that are
     submitted. Experience in the pesticide area
     underscores the importance of early attention
    ' to establishing efficient and decision oriented
     procedures to be effective when the first
     reports arrive.

PROGRAM GOALS

  Considering our program in its broadest sense,
our goals arc quite straight forward and are directed
to:

  — clarification of the risks to health and the
     environment associated with the.manufacture,
     distribution, use, and disposal of new and
     existing chemical substances, with particular
     regard to chemical properties, production
     levels and trends, and exposure of the
     chemicals to man and the environment;

  — more effective utilization of regulatory
     authorities and related tools available to the
     Agency to mitigate such risks, taking into
     account the economic and social impact of
     restrictions on toxic substances; and

  — increasing the concern of and appropriate
     actions by the chemical and related industries
     to reduce risks to health and the environment
     associated with their activities.

   Of particular interest is the emphasis placed on
 the responsibility of industry, for it is the course
 taken by industry—with and without direct
 Governmental encouragement—which will largely
 determine the environmental risks posed by
 chemical substances in the years ahead. The
 importance of this industrial stewardship is apparent
 when it is re-.'.i^ed that the annual value of chemical
 substances manufactured in the United States which
 are not subject to existing regulatory authorities
 exceeds $150 billion.
   Now let us turn to several specific activities of
 interest, starting with the concept of early warning. In
 this area our general goal is to identify and prioritize
previously unsuspected chemicals entering the
environment which are most likely to pose a
significant hazard to man or the environment in the
near future. Subgoals include:

  — Criteria: To develop criteria and techniques
     for determining on the basis of minimal
     information which chemical substances should
     be of greatest concern.

  — Expert Opinion: To mobilize and use expert
     opinion to assist in rapidly screening large
     numbers of chemicals and predicting potential
     problem substances.

  — Data Analysis: To collect, collate, and
     synthesize data from sources such as
     monitoring, trend assessment, and industrial
     reporting on those chemicals which appear to
     deserve the highest priority  in  a manner that
     will facilitate judgments as to whether the
     chemicals should be candidates for further
     investigations, testing, and/or control.

  A second activity which is of particular interest to
this group is testing. In general, we are attempting to
improve the approaches by Government, industry,
and the scientific community to testing of chemical
substances enter ing commerce. Again, I would like
to underscore the role of our industrial firms as we
delineate our subgoals:

  — Industrial Stewardship: To encourage
     increased industrial concern and appropriate
     action in testing both new and existing
     chemicals.

  — Regulatory: To require or encourage, as
     appropriate, industrial testing of specific
     chemicals for which inadequate data
     concerning the risks associated with the
     chemicals is available but which are suspected
     to pose a hazard to manor the environment.

  — Experimental: To provide experimental data
     needed to determine appropriate standards or
     restrictions for specific chemicals of near-term
     concern.

  — Public Awareness: To bring test data
     concerning the safety of chemicals into public
     view, in a way that will not compromise trade
     secrets, thus facilitating a broader base of
     understanding and inputs for  evaluating the
     necessity for restrictions for such chemicals.

-------
  A third area of interest is research, recognizing the
overlaps between activities that arc classified as
research and programmatic activities. While the
research interests of EPA encompass many areas, the
three types of activities of priority interest to my
Office are:

  — Test Methods: To stimulate development of
     faster, cheaper, and/or more reliable test
     methods, with particular emphasis on
     approaches that provide data needed for
     specific types of regulatory actions.

  :— Trend Assessment: To improve assessments
     and forecasts of technological developments,
     economic and market trends, and material
     production and  use patterns which can assist in
     anticipating environmental problems resulting
     from chemical substances entering the
     environment.
  — Estimation of Exposure: To develop and apply
     methods and background data needed  for
     assessing the extent of environmental and
     human exposure to selected chemical
     substances, including consideration of
     environmental transport, persistence, routes of
     entry into the environment, bioconcentration
     and bioaccumulation, environmental
     degradation, and retrospective, and
     retrospective monitoring through sample
     banking.


CASE HI STORIES

  Recent discovery of hcxachlorobenzene (HCB) in
the fat of animals brought to slaughter has focused
attention on the hazards of this material. The most
serious case involved cattle in central Louisiana.
Other incidents of HCB contamination in the past
year have involved sheep in western Texas and in
eastern California. Sources of HCB in Louisiana
appear to be airborne emissions of manufacturing
plants which produce chlorinated hydrocarbons and
waste disposal practices of these plants. The Texas
and California situations have, been associated with
pesticides which were contaminated with HCB.
  An immediate problem confronting EPA earlier
this year was the determination of a permissible
level of residues of HCB in food. In response to a
request from the Department of Agriculture, EPA
reviewed available data on the toxicology of HCB,
and concluded that it was not adequate to permit
establishment of a tolerance level for HCB in food.
This was confirmed in consultations with scientists
 in the Departments of Agriculture and Health,
 Education, and Welfare, and with other members of
 the scientific community.
   Nevertheless, HCB occurs in food frequently
 enough that some guidance is necessary to protect
 public health. An experience in Turkey in the mid-
 fifties vividly demonstrated the health effects of
 HCB when ingested over a long period. There is,
 however, no experience which indicates the effects of
 low doses on humans. Attempts in the United States
 and abroad to determine the safe level of HCB in
 experimental animals have been extremely limited
 and sporadic, and at present there is a lack of
 authoritative data. Experiments on a variety of
 animals have been limited in design, scope, and
 duration. Meaningful inferences are difficult to
 draw although there are indications that repeated
 dosages of HCB at low levels may be harmful.
   Related to these uncertainties is the unknown
 extent which meat products with low levels of HCB
 residues are likely to reach individual consumers on
 a repetitive basis. The sources of HCB of immediate
 concern are confined to very small geographic
 pockets which traditionally disperse a significant
 portion of their products to markets around the
 country. Similarly, little information is available for
 assessing the economic impact of alternative
 tolerance levels. In the original Louisiana
 quarantine area, for example, there were up to
 20,000 food animals with HCB in their fat at levels
 ranging from O.I u>6.0ppm. However, the extent
 that these levels could be reduced through fattening
 with clean feed and through natural processes prior
 to slaughter is uncertain. Similarly, the cost and
 success of biochemical methods to reduce the levels
 are difficult to assess. There are many other
 economic costs related to establishing a tolerance
 including the impact on the value of contaminated
 land, the costs of alternative feed supplies and the
 long-term impact on animal herds. Data are not
 available to assess these types of impact.
 Furthermore, the extent and levels of HCB residues
 which will appear in the months and years ahead in
 many areas of the country cannot be predicted.
  On June t, EPA recommended an interim action
guideline of 0.5  ppm HCB in the fat of cattle, swine,
sheep, horses, and goats at the time of slaughter.
This was based on analysis of the best data available,
including toxicological studies and economic
considerations. At the same time several
toxicological. epidemiological, ecological, and
economic studies are being launched to provide an
improved basis for determining the permissible level
as the guideline is periodically reviewed.

-------
  A second set of interesting case histories relates to
the emission standards for hazardous pollutants
established in April of this year under the Clean Air
Act. Limitations were set on mercury, asbestos, and
beryllium. While toxicologists have been concerned
with these standards, toxicology data which is
useable in quantifying an acceptable level of risk for
these substances has been conspicuous by its absence.
  In the case of asbestos, the association between
occupational exposure to asbestos and higher-than-
expccted incidence of bronchial cancer was
recogni/ed. Also, asbestos has been identified as a
causal factor in development of cancers of the
membrane lining the  chest and abdomen. However,
the lack of adequate quantitative data correlating
asbestos exposure to these and other malfunctions,
together with the difficulty in measuring asbestos
emissions, made establishment of allowable
numerical concentrations impractical. Therefore,
the standard relies largely on limitations on visible
emissions and on the  specification of related air
cleaning technologies.
  With regard to beryllium, the AEC limit of 0.01
micrograms/cubic meter, which was set in  1949. has
been adopted as the basis for the emission standard.
In the period since the implementation of the AEC
guideline, no reported cases of chronic beryllium
disease have occurred as a result of community
exposure, and (he Committee on Toxicology of the
National Academy of Sciences has concluded that
the AEC guideline represents a safe level of
exposure.
  Now turning to mercury, it seems clear that the
airborne burden must be considered  together with
the water- and food -borne HJ: dens. An expert group
concluded, based on  its analysis of several  episodes
of mercury poisoning in Japan, t^at 4 micrograms of
mcthylmercury per kilogram of bodyweight per day
would result in the intoxication of a sensitive adult;
application of a safety factor of 10 yielded  an
acceptable exposure of about 30 micrograms per day
tor a 70-kilogram man, and this level is also
believed to provide satisfactory protection against
genetic lesions and poisoning of the fetus and of
children. It has been estimated that from average
diets, over a considerable period, mercury intakes of
10 micrograms per day may be expected, so that, in
order to restrict total intake of 30 micrograms per
day, the average mercury intake from air would
have to be limited to 20 micrograms per day.
Assuming inhalation  of 20 cubic meters of air per
day, the air could contain an average daily
concentration of no more than I microgramof
mercury per cubic meter. Thus, this level serves as
the basis for the standard.
  A third type of case history concerns current
efforts to set toxic pollutant effluent standards under
the Federal Water Pollution Control Act. On
September 7, EPA gave notice that standards would
be set on nine toxic pollutants. This standard setting
activity is currently underway with a publication
date of early December for the proposed standards.
Included on the list of pollutants are cyanide whose
acute toxicity properties are of major concern,
cadmium and mercury which are associated with
major chronic toxicity problems, and benzidine, a
known carcinogen. The adequacy of toxicological
data for supporting these standards varies from
substance to substance, but I can assure you that in
some  instances it is sorely lacking. Nevertheless, in
all nine cases we are faced with the necessity to make
judgments as to an acceptable level or risk. When
the proposed standards are promulgated, the
toxicology community hopefully will take the time
to offer suggestions for improving the proposed
approaches, for refining the interpretations of test
data,  and for generally pointing the way for future
standard setting activities as they relate to the use of
toxicological data.
  In short, there are two types of problems related
to toxicological data in setting standards in the near-
term. First; how can the minimal test data which is
available be most effectively used;and, secondly,
how can future testing activity be best oriented to
provide useable data for refining at a later date the
standards that are being set? As an outsider with
only brief exposure to the standard setting process
and to the use of toxicological data, I have the
general impression that there is not a good
impedance match, at least in some areas, between
standard setting needs and the orientation of testing
activities. Furthermore, it appears that this difficulty
is largely attributable to the failure of those of us
responsible for programs to articulate our needs
sufficiently far in advance to enable the scientific
community to respond.

  As we prepare to set standards for test protocols
and to consider restrictive actions under the Toxic
Substances Control Act, the importance of clear
articulation of program needs takes on even greater
significance.  I am confident that in the years ahead,
we  will erode the communication difficulties
between the program operators and the research
community with society being the beneficiary.
  Scientific data is interesting, but only if it is
useable. Or in the words of Frank Lloyd Wright,
"Science can  only give us the tools in a box... .but of
what  use to us arc miraculous tools until we have
mastered the human, cultural use of them?"

-------
       ECONOMIC ASPECTS OF TOXIC
            SUBSTANCE CONTROL

 Symposium on Economics of a Clean Environment
             The Mitre Corporation
                  McLean. VA.
                January 16,  1974

 MILESTONES DURING 1973

   Several toxic substance milestones during 1973
 vividly illustrated the complexities of risk and
 benefit assessments.   '
                                            f-

   ' The chemical industry is still reverberating
     from the Department of Labor's stringent
     interim standards for handling 14 carcinogens,
     including several of considerable commercial
     importance.
   ' FDA banned the use of DBS as a feed additive
     over the strong objections of the cattle ranchers.
   * EPA's promulgation of final air emission
  •   standards and proposed water effluent
     standards for toxic pollutants are causing major
     adjustments in manufacturing practices at many
     facilities.
   * Promulgation of final leaded gasoline
     regulations culminated several years of effort to
     address the severity of the problem of lead.
     fnhalation and human health.
   * Discovery of high levels of asbestos fibers in the
     Duluth water supply has catalyzed a large array
     of technical talent to address what could turn
     out to be either a sleeping giant or a false alarm
     of major dimensions.

   * The tussock moth outbreak on the West Coast
     highlighted the environmental and economic
     "disbenefits" resulting from the ban on DDT.
   * The contamination of cattle in Louisiana and
     sheep in California with hexachlorobenzene—a
     by-product of chemical plants and also a
     contaminant in pesticides—clearly showed that
     the balancing of very uncertain lexicological,
     epidemiological, and economic data is often a
     near-term necessity.

 WHAT IS UNIQUE  IN ADDRESSING TOXIC
SUBSTANCES?

   There are essentially two aspects of the toxic
 substance problem, namely:
  * Steps to clarify and mitigate, as appropriate, the
    risks associated with chemicals which are
    believed to pose a problem; and

  * Selection from the remaining universe of
    commercial chemicals—numbering more than
    20,000—those chemicals which deserve
    attention to determine if they pose an actual or
    potential problem.

  With regard to the first aspect—namely, reducing
the risks from suspected chemicals—the approach to
risk/benefit analysis is probably not much different
than assessment of the risks and benefits associated
with other products and pollutants. Determination
of the risk/benefit relationship is based largely on
value judgments, and not quantifiable approaches.
As with almost all environmental control measures,
assessment of the environmental gain to society from
proposed control measures is usually difficult.
Assessment of the economic and social impact of
specific limitations must take into account secondary
and delayed effects,  as well as the more obvious
immediate effects.
  Toxicological and epidemiological data are
usually the starting point for a  numerical standard.
These data are frequently spotty, more often than
not generated for scientific rather than regulatory
purposes, and plagued with interpretation
difficulties. Frequently, for toxic substances, the law
constrains the balancing of this data on risks with
available data on benefits in arriving at an
appropriate standard (e.g., certain sections of the
Clean Air Act and the Federal Water Pollution
Control Act). However, this disregard of benefits is
not the recommended approach. There should be a
balancing of risks and benefits, and indeed in most
regulatory actions there has been some balancing
which is often subsumed in adjusting safety factors
and other parameters affecting the standard. Even if
the substance of concern has a clear "no-effects"
threshold, this threshold is not necessarily the
appropriate level for setting the standard. For all
s. Instances—including toxic substances which cause
similar effects—the risk component derived from
scientific data should be appropriately adjusted to
take into account exposure levels and to balance the
risks with the benefits.
  While the approach to suspected chemicals seems
reasonably straightforward, the risk/benefit aspects
in the search for the other bad  actors in the universe
of chemicals cannot be easily described.  How much
is society ready to pay  to search out these problem
substances before they emerge on the immediate
horizon? This question is the heart of the

-------
"uniqueness" of the economics of toxic substances.
'  Another difference between toxic substances and
gross pollution concerns relates to the
environmental impact of control measures. While it
is relatively easy to begin to quantify the economic
value of clean rather than dirty water, the effects of
toxic chemicals cannot be aggregated and the
chemicals must be considered one by one.
  Toxic substance activities are particularly
sensitive to our lack of analytical and monitoring
capability to detect the trace amounts of some
chemicals that should be of concern. A sensitive
capability is particularly important in dealing with
very small amounts since very slight deviations can
represent very large proportional changes.
Frequently, the concentration of interest is below the
level of detection; in some cases in the past we have
been sufficiently clever to devise ways to monitor
indirectly and to enforce limitations below this
level. In addition standard reference materials have
too long been neglected as is currently being
demonstrated in our efforts to acquire comparable
data at d ifferent laboratories on asbestos.

SOME CONSIDERATIONS IN RISK/BENEFIT
ANALYSIS

  Toxic substance problems arise in several forms:

   *  Effluents, emissions, solid wastes, and other by-
     products of manufacturing activities.

   *  Spills and other accidental releases.
   *  Worker or consumer exposure in a closed
     environment to a toxic substance associated
     with a product.
   *  Other direct exposure of man and/or the
     environment to a troublesome product, either
     in its intended or unintended use.
   *  General  build-up of the chemical in the
     environment from natural, multiple,or
     unknown sources.
   *  Potential exposure of a product that has not yet
     reached the market  place.

  A variety of control strategies, in addition to
simply installing well-known pollution control
technologies, are obviously available in addressing
these classes of problems. Such strategies include
banning the product, restricting the use of the
product, or requiring certain types of labels. Also of
increasing interest are financial incentives attached
to product lines (e.g., disposal charge, product tax)
which will encourage recycling and/or appropriate
disposal techniques.
 ' Limitations on new products require particular
care. At first appearance, it would seem easier for
society to rationalize limitations on a product which
does not have behind it a significant manufacturing
investment than restrictions on a product already in
commerce. However, this approach grossly
oversimplifies sensible benefit analyses. Also, in
determining future benefits to society of substances,
the economic potential of the market should not be
the only indicator. Rather, there should be an
assessment of the total social benefit of the product,
recognizing that this is easier said than done.
Finally, in some cases there may be near-term
economic disadvantages in spending R&D resources
for duplicative products; but given the shifting
nature of our industrial fabric and consumer
patterns, in the long run there may be economic
advantages in such an approach.
  Related to the limitations on new products a£ the
effects of I imitations on incentives for industrial <
R> D, including both the direct effects on specific
products and the cumulative and indirect effects on
the R&D climate. In recent months, for example,
several large firms have abandoned R&D on
pesticides in view of regulatory disincentives for this
type of activity.
  Finally, in the long run, public confidence in the
national approach to the control of toxic substances
will be a decisive factor. Thus, individual decisions
should take into account public concerns, and
should be cast In terms understandable and
persuasive to the layman.

INTERNAL1ZATION OF SOCIAL COSTS

  Recent interest in the "internalization" of social
costs of environmental pollution has focused in large
measure on effluent fees or taxes. Where the
industrial discharge is an unwanted (but at least, for
the moment, unavoidable) by-product from the
production ot desired goods or services, and where
the benefits and social costs inherent in the
externalized subsidy of this production arc not
equitably shared, such an effluent tax provides a
potential mechanism for amelioration of the
inequalities.
  The control of adverse effects from toxic
chemicals involves somewhat different  concepts.
and internalization of social costs presents
inherently more complex problems. Three sources
iif adverse effects may be cited:1

-------
   — The unavoidable side effects from the intended
      use of (he product (e.g. environmental
      contamination with lead from the use of TEC
      in motor fuels).

   — The use of a product in ways not intended by
      the manufacturer (e.g. use of PCB'sasheut
      exchange fluids in food processing plants).
   — The disposal of the product after completion
      of the intended use (e.g. mercury contamina-
      tion from disposal of batteries or flourescent
      tubes).

   Approaches to internalize social costs by fees or
taxes should satisfy three criteria. They should be

   — effective in motivating changes in behavior
      (hat tend to reduce the social costs.
   — equitable in allocating benefits and burdens
      upon the various affected segments of society.
   — efficient in transferring the dollar costs
      imposed upon the user of the "toxic material"
      to those responsible for ameliorating damage
      or the loss in environmental quality.

   The costs to society associated with toxic
substances incTude:

   — Costs of the regulatory agencies.
   — Economic losses from condemnations or
      destruction of products already in commerce.
   — Added costs of products as a result of higher
      development costs and lessened productivity •
      of industrial R&D.
   — Loss of benefits from products not reaching the
      marketplace.

   Benefits accruing to  society include both
abatement of environmental hazards from existing
chemicals and avoidance of environmental hazards
by anticipatory actions. In all probability, even in
the immediate future, the hidden costs and benefits
will fa> outweigh the direct measurable costs and
benefits, thus further complicating any type of
comprehensive approach to internalizing costs.

THE ENERGY CRISIS AND TOXIC
SUBSTANCES

   There are a variety of concerns related to toxic
substances as the energy crisis begins to impact on
the economy. Cutbacks in petroleum feed stocks
could drive industry to new processes and product
mixes involving toxic substances. However, at this
time there is no reason to expect a relaxation of
safety standards by industry or Government to case
the accommodation of such new processes ami
products.
  A more troublesome problem relates to the by-
products of new energy sources, e.g., vanadium
associated with oil shale, toxic metals found in coal,
acid run-off from strip mines. Specific regulatory
steps may be necessary in these cases to insure that
environmental concerns are not lost in the race for
new energy sources.
  A final consideration concerns environmental
control strategics which could lead to greater energy
requirements. Environmental restrictions that
reduce manufacturing efficiency arc in this category.
Also, specific product restrictions could aggravate
energy problems. For example, the DES ban has
forced the use of less efficient feed additives. As a
second example, a limitation on the use of mercury
in flourescent lights would force a return to
incandescent bulbs which require two and one-half
times as much ene'rgy per unit of light.

TOXIC SUBSTANCES IN THE MID-198()'S

  By 1985, more chemicals will be in commerce, the
properties of many chemicals will he better
understood, and consequently the list of chemicals
considered to be hazardous to man and the
environment will undoubtedly be much longer.
Also, improved research and analytical capabilities
will show that the effects of these chemicals—acting
individually and syncrgistically—are much farther
reaching  than currently suspected effects.
  From the toxic substance point of view the quality
ol life in the chemical age of the Eighties, relative to
the current quality ol life, depends, in large measure,
on the outcome of the competition between
population and economic growth on the one hand
and the sophistication in approaches to responsible
regulation—by both industry and government.
Clearly, more people will he exposed to more
chemicals in more situations. Hopefully, we can
develop the necessary precualionary measures that
will limit exposure to chemicals when necessary, but
not  unnecessarily curtail  commercial activities.
  There is. of course, a danger that society will not
act responsibly toward toxic substances through  its
Governmental and other institutions, with the
inevitable outcome of endless legal confrontations.
The entire approach to toxic substances could
become bogged down in the courts. To avoid such a

-------
situation, the highest quality of government
leadership in this area is essential—leadership
characterized by technical credibility and openness
in dealing with controversial data.
  If the regulatory pattern of the Sixties and
Seventies continues, during the Eighties the number
of toxic substances other than chemicals associated
with foods, drugs, cosmetics, and pesticides
regulated by Government will be relatively few—in
the dozens rather than hundreds pr thousands.
However, each of these  regulatory decisions will be
significant in that they will set the framework and
the standards for the efforts of industry in self-
regulation of the bulk of the industrial chemicals.
  Industry will probably be using testing  and related
approaches to product safety which are not
significantly different from current approaches. The
Governmental thicket of regulations will
undoubtedly drive some of the smaller companies
out of new product development. Concurrently.
closer Governmental scrutiny of industry activities
will be necessary in the face of potential antitrust
problems as the larger companies consolidate their
positions.
  By 1985, most of the emission stacks and effluent
pipes will be plugged. Our toxic substance concerns
will center largely on contaminants, non-point
sources, direct product exposure, and generally
unattributable build-up of toxic chemicals in the
environment. And, as the gross pollution effects
subside, previously undetected effects of individual
and combinat ions of chem icals in the water and in
the air will probably be unmasked.
  Risk/benefit approaches should be well accepted
within a decade, although concerns will penetrate
much more deeply into social as well as economic
values. There should be far less concern over public
acceptance of the concept of accepting different
levels of risk for different chemicals, depending on
their social utility. Indeed, the economics of a clean
environment should be much closer to a reality.
Note: This text is based on contributions by a
      number of panel members.  .

-------
        1974—A YEAR OF TRANSITION

       Seminar on Early Warning Systems for
                 Toxic Substances
            Battelle Memorial Institute
               Seattle, Washington
                 January 31. 1974
   During the past several weeks, talk in Washington
 has centered in large measure on the achievements
 during 1973—or perhaps we should say the events
 during 1973. All agree that it was a tumuttous year
 with our domestic and environmental concerns
 largely overshadowed by unprecedented political
 events at home and abroad.
 i  1973 was to be the year when the momentum of
 the environmental movement began to take us
 around the corner in cleaning up the air and the
 water. Our arsenal of regulatory tools for insuring
 product safety and sound disposal practices was to
 be expanded. And a degree of harmonization was to
 be achieved between economic progress and
 environmental controls.
   But this was not the case. Energy concerns
 threatened to reverse past environmental gains.
 Congressional attention was diverted from the
-derails of environmental legislation. And perhaps
 most unfortunately the influx of top young talent
 into the environmental picture seemed to slacken.
   However, environmental milestones were far from
 lacking during 1973.  For example, in the area of
 toxic substances:

   — The chemical industry is still reverberating
      from the Department of Labor's stringent
      interim standards for handling 14 carcinogens,
      including several of considerable commercial
      importance.
   — FDA banned the use of DF.S as a feed additive
      over the strong objections of the cattle
      ranchers.
   — EPA's promulgation of final air emission
      standards and proposed water effluent
      standards l.n toxic pollutants are causing
     smajor adjustments in manufacturing practices
      at many facilities.
   — Promulgation of final leaded gasoline
      regulations culminated several years of effort
      to address the severity of the problem of lead
      inhalation and human health.
   — Discovery of high levels of asbestos fibers in
      the Duluth water supply has catalyzed a large
      array of technical talent to address what could
      turn out to be either a sleeping giant or a false
      alarm of major dimensions.

  —  The tussock moth outbreak on the West Coasi
      highlighted (he environmental and economic
      "disbcncfits" resulting from the ban on DDT.

  —  Finally, the National Center for Toxicologicul
      Research in Pine Bluff. Arkansas, became a
      viable operation that is making its mark  in the
      regulatory world.

THE ISSUES FOR  1974

  While the number and diversity of issues in the
environmental field continue to grow, many of the
most important questions to be addressed in the
immediate future in my specific area of concern are
the well-known "old chestnuts". Traditionally, we
tend either to take these issues for granted or skirt
them  because of their difficulty. In either case  we
then focus on other questions which are also
important but which could be irrelevant if our
tin. lamental approach is not sound. Let me cite four
• if1   "ild chestnuts" which are currently near the
    •i »ur list.
               TfSiiiif; and Standard Scttini;: Can We
D  U -;ter?
  Emblazoned in laws and in the Federal Register
are standardized approaches to a very complicated
science — standardized approaches that date back
many years and, having gained a type of legal status,
seem almost immune from scrutiny and revision. As
an engineer I should feel comfortable in surrounding
the biological sciences with accepted quantifiable
approaches and easily defined safety factors, but I
am not. In my view, a thorough  review — initially by
the scientific community itself — of the currently
accepted  approaches to generation and
interpretation of test data is needed.
  hi this  regard.  KPA recently proposed a
numerical standard for the carcinogen hcn/idine
based on  the concept that in determining the
standards, the level of risk which is acceptable must
be considered in the light of the benefits derived
from the chemical.  Derivation of this level of risk
requires types of test data not ordinarily generated
by toxicologists. thus suggesting a significantly
different  approach  to testing carcinogens, and
perhaps other chemicals as well.
  In large measure the issue revolves around how
the scientist packages the toxicological data for the
decision-maker. It the scientist structures the

-------
experiment and packages the data to derive simply a
"safe" level for chemical exposure, then the
decision-maker has only one option, and all other
factors become irrelevant. The scientist has in fact
assumed responsibility for consideration of the total
impact of a regulation on society. On the other hand,
if the scientist presents several options, with
explanations of the health and environmental impli-
ations of each, then the decision-maker can indeed
take into account a wide range of social and
economic implications at different levels of
chemical exposure.

   Risk/ Benefit Aspects of Toxic Substances: The
Theorist or the Pragmatist?

   Even though toxic substances are by definition
dangerous to health or the environment, there seems
to he general agreement that in developing control
strategies some balancing of risks and benefits is in
order, as reflected in the EPA action on benzidine.
In the past, elaborate cost/benefit models have
frequently had little operational relevance. At the
same time we must do better than those past efforts
th:i; tend to focus only on the short-term, direct costs
olVi \ irohmental controls which are susceptible to
i|u.     nation.
   I     ps the most formidable task is estimating (he
i       ual gains to society—or the reduction of
rix  .  :- cicty—by decreasing (he level of a toxic
subs;  ic«  entering the environment. Human
poisoning, fish kills, and flora destruction can of
course frequently be related to specific discharges.
Rut those near-term, easily isolated incidents which
can he used to correlate discharge levels with
economic and social  impact arc (he exception rather
than the rule. A second problem is to estimate how
much the level of exposure will be reduced by a
specific control measure. Even it good monitoring
data exist concerning current exposure levels, to
project ahead the impact of a proposed measure is
difficult indeed. And finally, ot course, is the cost of
the control measure, which usually  involves much
more than simply purchasing control devices. For
example, in response to the Department of Labor
restrictions on carcinogens, one company was forced
to replace the carcinogen with another intermediate
chemical which turned out to be far more
cost /effective for the  particular process. Had it not
been for the regulation, and subsequent R  and D
effort by the company, this cost-saving innovation
would still be lying dormant.
   What should be the approach to risk/benefit
analyses? With regard to the known problem
substances. I suspect that in the short run we will do
little better than weighted checklists to be used as
general gu 'dines for at least surfacing some of the
concerns b 'ore decision-making time. Case studies
of specific past decisions should he particularly
helpful in this regard. In the longer term, I don't
know if a more objective approach can be developed
that is broa«'ly applicable to balancing risks and
benefits.
   Howevei i far more difficult problem faces us in
answering ic question: "How much is society ready
to pay to st irch out other problem substances before
they emerge as problems on the immediate
horizon?" Or "What should be the cost of early
warning?"

  A (ienerulized Approach to Control Strategies for
Multimedia Pollutants: Reality or Fantasy?

  A number of the most troublesome toxic
pollutants enter the environment from many
sources, follow multiple routes through the
environment, and come to rest in a variety ot places.
Studies have illustrated many of the complexities of
movement and fate of pollutants. Such studies were
particularly helpful in addressing the lead issue, as
one example.
  Can there be a generalized approach to control
strategies for a large number of toxic pollutants with
multimedia characteristics? Perhaps the behavioral
ami use idiosyncrasies of different chemicals require
completely different approaches to the formulation
of control strategics. Twoof ourm'.ost  relevant
experiences to date in developing control strategies
have been the attempts to control selected toxic
pollutants under different sections of their air and
water legislation. These single media approaches to
control strategies clearly underscore the difficulty or
generalized approaches.
  Obviously, there should be some correlation
between the controls that arc selected to mitigate the
problem associated with a specific chemical and the
porhun of the problem that these controls actually
address. Similarly, in considering the total
allowable body burden for a chemical, there should
be some consistency in allocating the total among
individual control measures. But can we be much
more specific in generalizing approaches, say, to
three of the most widely discussed toxic chemicals,
namely, cadmium, mercury, and PCBs? It is difficult
to identify the common aspects of cadmium-coated
screws, mercury-containing dental amalgam, and
polychlorinatcd biphenyls used in transformers.
which would fit into general control strategies. Once
                                                   10

-------
 again, at least as an interim step, I would argue tor
 case studies as providing a background of experience
 in addressing future approaches to multimedia
 pollutants.

   'An  OpfKiiiontil F.arly Wurninx System: Is It
 Practical?

   The need to identity and remedy problems before
 they take their environmental or health toll  seems
 axiomatic, liut cun this be done on more than a
 token basis' Clearly, this question goes lo the heart
 of this Conference.
   Several  upproachc . to problem identification
 seem reasonably clear:

   —  Gatherings of experts, such as this meeting,
       and also organized on  an industry-by-industry
       basis.

   —  Review of past incidents to identify early
       warning indicators.

   —  Current awareness systems to identify  reported
       and unreported incidents  involving toxic
       substances.

   —  Forecasts of market and economic trends and
       their impact  on the future mix of products and
       activities of the chemical industry.

   Many of you have promoted activities in these
 areas for some time, and we will be joining you in all
 of these areas in the months ahead.
   What  is  most needed now? Better use of existing
 early warning systems? Bigger a'nd better systems'?
 More  systematic orchestration of the multiple
 systems? I  hope you will clarify  these questions.
   However, there  undoubtedly  will remain a major
 gap between problem identification and preventive
 action Bridging this gap is particularly difficult for
 a bureaucracy that is basically reactive to immediate
 problems—and reactive in a very short-term mode.
 Thus,  persuasive argumentation supporting the
 action recommended by the early warning network
 is essential.
 % Even assuming that false alarms have been
 separated from potentially serious problems, it will
 be difficult indeed to impose restrictive measures
 before the  fact largely on the basis of
 unsubstantiated data. In my view, unless there is
 extensive cooperation on the part of industry in
vheeding the early warning signals—cooperation
 rctlccted in a great deal of restraint on a voluntary
 basis—the products of the best conceived early
 warning systems arc not likely to make a major
impact on more than a small handful of a much
larger array of potential problem substances.

THE CHEMICAL INDUSTRY AND POLICY
ISSUES

  The industrial representation at this Conference is
encouraging. Indeed, in recent months a number of
companies have shown considerable leadership in
enhancing product safety, in improving the
environmental compatibility of manufacturing
processes, and in expanding R and D efforts to
further clarify the risks of chemical activities.
  For our present purposes we are interested
principally in those manufacturers and processors
who introduce chemical changes into their products.
The following characteristics of this sector of
industry—excluding the food, drug, cosmetics, and
pesticides segments—seem particularly relevant:

  — The annual value added to products is in the
     range of $ 110 billion, about double the level
     ten years ago.

  — About 20.000 chemical products arc in
     commerce with an additional 500 chemicals
     being added annually.
  — More than 80 percent of sales is concentrated
     in several do/en companies but there are
     hundreds of additional small manufacturers.

  — A large percentage of net income—ranging
     from 20 to 50 percent—is usually reinvested in
     R and D.

  A number of policy considerations of particular
concern to industry permeate a regulatory approach
to this sector of industry, from early warning to
restrictions. Some of these concerns arc:

  — The disincentives to R and D inherent in some
     types of regulatory actions could blunt the
     technological thrust of the industry.
  — The configuration of the industry (e.g. large
     and small manufacturers, specialized and
     diversified firms) could be affected by
     regulatory actions which are more painful  to
     certain types of companies.

  — Regulatory actions undertaken unilaterally by
     the United States could affect the
     competitiveness of our products at home and
     abroad.

-------
  This docs not mean that environmental actions
should not affect economic interests, for
environmental control is not Free. However, we
should recognize that individual actions—arid also
aggregated actions—can have many secondary and
tertiary effects which may be far more significant
than the more obvious primary effects. The key
question of course is whether the environmental
gains from regulatory actions are commensurate
with any adverse economic and social impact—a
question that is easy to ask but difficult to answer, in
any event, we must treat early warning signals in a
responsible fashion lest the potentially affected
parties seek to bury the signals out of concern that
they will not be handled responsibly.

BOOKING AHEAD

  Clearly Washington's preoccupation with non-
environmental issues will continue to detract from
the high level attention devoted to toxic substances
in the months ahead, particularly on Capitol Hill.
For some of the newer programs this may be a
fortuitous development which will allow us to do a
better job in planning long range activities, even
though all of us would like to move ahead with
operational activities.
  During 1974 we should continue  to press forward
vigorously on all fronts, recognizing that regulatory
actions will be more difficult amidst the general
skepticism as to the importance of environmental
control being expounded in some quarters.  There is
no reason, however, why we should  not make great
strides in many of the essential supporting activities.
There is general agreement on the importance of
increased efforts to clarify the need  for, character of.
and impact resulting from steps to prevent and
mitigate environmental problems! Thus. I would
characterrze 1974 as a year of transition—a year
between a period of talk and rhetoric about the need
for  new regulatory approaches to reduce risks
associated with toxic substances and a period of
accelerated action to address these risks. 1974
should be a year of coalescing ideas and energies, a
year of engaging all the affected parties, and a year
of setting the stage for a sensible long-term effort in
dealing with multimedia pollutants.
  In future years, more chemicals will be in
commerce, the properties of many chemicals will be
better understood, and consequently the list of
chemicals considered to be hazardous to man and
the environment will undoubtedly be much longer.
Also, improved research and analytical capabilities
will show that the effects of these chemicals—acting
individually and synergistically—are much farther
reaching than currently suspected effects.
  Even though in a few years the emission stacks and
effluent pipes will be largely plugged, and hopefully
sensible land disposal of hazardous wastes will be
required, more people will be exposed to more
chemicals in more situations—exposure from
contaminants, non-point sources, direct product
contact, aVid generally unaliributable buildup of
chemicals in the environment. I am confident thai
society can  develop the necessary precautionary
measures that will limit exposure to chemicals when
necessary, but not unnecessarily curtail commercial
activities.
  There is. of course, a danger that society will not
act responsibly in anticipating and remedying toxic
substance problems through its governmental and
other institutions, with the inevitable outcome of
endless legal confrontations. The entire approach to
toxic substances could become bogged down  in the
courts—which would be a tragedy for us all.
  Thus, the challenge to early warning is clear. It is
a challenge that will

  — prioritize and focus the concerns of
     Government and of society on those
     chemical/biological inn., actions that require
     particular scrutiny in the months and years
     ahead;
  — provide the time needed for sluggish
     governmental, industrial, and commercial
     mechanisms to take almost unprecedented
     anticipatory actions; and

  — instill a sense of public confidence that  the
     products of chemistry—both new types of
     goods and substitute materials for rapidly
     dwindling natural materials—can be made
     compatible with an increasingly fragile
     biosphere.
                                                    12

-------
  EPA PROGRAM INTERESTS AND TEST5NO

     Meeting on Environmental Cooperation
          U.S.—European Communities
                Washington, DC
                February 7. 1974
  Interest in lexicological and environmental
testing is shared by all EPA programs. Test results
often signal those substances that should be prime
candidates for regulatory control. Also, test results
frequently are the starting point for setting
numerical standards and tolerances.

TESTING REQUIRED OF INDUSTRY

  Three EPA offices are currently involved in
developing and articulating requirements for
industrial testing for health and environmental
effects. Test data are required to determine the need
for product controls and, when appropriate, to set
specific numerical standards. It seems clear thui
there should be a degree of consistency in our
overall approach to industrial testing as rctlected in
the ground rules established by ihese programs.
Also, to the extent possible, consistency is desirable
among the approach of EPA and the approaches of
other agencies, such as the Food and Drug
Administration and the  Consumer Product Safety
Commission.
  For many years, registration of pesticides has
required the submission of industrial test data.  Over
the years the data requirements have been
articulated in a variety of formal and informal
documents, but only recently,has there been an
attempt  to consolidate past fragmented
requirements—including undocuniL'nted
requirements—into a coherent Agency approach.
These requirements relate to both product safety and
product efficacy. Within the next year, we hope to
publish guidelines which will set forth in some detail
testing requirements in support of applications for
pesticide registration.
  Under ihe Clean Air Act the Agency can  require
the testing of fuel additives for health and
environmental effects. This is a new program—in a
somewhat virgin area—and we are only now
attempting to develop such test requirements.
Perhaps, the most difficult problem is specifying the
composition of the substance to be tested. We are
primarily interested in the inhalation of exhaust
products which are the resul.of a variety of
complicated chemical reactions.
  A third program, which is still being borne, will
provide the Agency with authority to require testing
of industrial chemicals suspected to pose a risk to
man or the environment. This proposed new
authority, which is currently pending in the
Congress, covers a much broader variety of
activities than existing authorities. The two principal
emphases will probably be on testing for chronic
health efforts and on testing for environmental
effects. These of course are the most uncertain areas
at present.

POLICY CONCERNS IN DEVELOPING
REQUIREMENTS FOR  INDUSTRIAL
TESTING

  There urea number of policy issues common to
these programs that we are currently addressing.
Among the more important concerns arc the
following:
               Costa »j Testing: How much testing
     isenough? At what point will testing costs
     discourage R & D on new products that may
     prove to be safer than currently available
     products? Will testing requirements  add
     intolerable delays before marketing  a product'.'

     Flrxihilityin  Test 'Rrquiremenis: How specific
     should be the test requirements set by
     Government? Should industry  be afforded a
     degree of flexibility in determining the details
     of testing and in suggesting alternative
     approaches to those specified by Government?
     How can lest requirements allow for  advances
     in the state-of-the-art without being subjected
     to constant revision? Will over-
     standardization of test requirements  dampen
     innovative R & D on the part of industry?

     Stains ofPnitix-uls: What status  should he
     accorded  u> protocols developed by the
     Government  or with Governmental support.
     by professional societies, and by industry
     itsclT.' Should such protocols be mandatory, be
     illustrative, or simply provide guidance?

     Trade Secrets: Under what, if any, circum -
     stances should safety dala developed by
     industry be considered trade secrets? Should
     there be a difference in (he confidentiality
     aspects of safety data submitted by industry for
     chemicals already in commerce and  for
     chemicals still in the R & D stage?
                                                   13

-------
   — Sharing of Costs: Under what circumstances
      should test costs be shared among several
      manufacturers of the same chemical? How
      should the costs be shared? Can cost sharing be
      reconciled with anti-trust laws? What role  «
      snould the Government play in arbitrating the
      details of cost spring?

(GOVERNMENTAL SUPPORT OF TESTING

   In our view, the principal responsibility for testing
chemicals that are in commerce or will enter
commerce in the near future resides with industry.
The Government's primary role is.to insure that this
testing is adequate and that the test results are
considered in an effective way in assessing the safety
aspects of the chemicals. Given this role of
Government, several specific types of concerns
require Governmental support of testing activities:

   — It may be necessary to verify in advance the
      feasibility, adequacy, and reliability of
      proposed tests to be required by industry.

   — It may be necessary to confirm or supplement
      test data provided by industry.

   — The urgency or complexity of potential
      environmental problems resulting from  a
      chemical may require a Governmental
      response based on tests that are initiated
      without delay.
   — It may not be possible to identify the com-
      mercial organization which has the logical re-
      sponsibility for testing a specific chemical,
      such as in the case of chemical contaminants of
      unknown origin.

   There are at least two other reasons why a
Governmental regulatory agency supports testing
activities. Laboratory scientists actively engaged in
testing activities are essential members of the
Governmental teams that develop specific testing
requirements for industry. Their input is essential to
broaden the perspective of the desk bureaucrats.
Secondly, the Government has traditionally
assumed responsibility for stimulating advances in
the state-of-the-art. These efforts include support for
new approaches to testing, refinement of existing
approaches, and demonstration projects that can be
adopted by industry. At the same time, as specific
problem chemicals emerge, it is important that
ovcrzcalous Government scientists—eager to clarify
the uncertainties—not launch testing efforts under
the guise of research that pre-empt the respon-
sibilities of industry.
   Of particular interest are the rapidly developing
 programs of the recently established National
 Center for Toxicological Research in Jefferson,
 Arkansas, which is jointly supported by EPA and the
 Food and Drug Administration. This facility is
 devoted to improving testing methodologies related
 to chronic effects, with particular attention to the
 shape of the lower end of the dose/response curve.
 Funded atu level of about $15 million annually,and
 emphasizing experiments involving very large
 numbers of animals, this facility should have a major
 impact on testing approaches throughout the world
 in the years to come.
THE USE OF TOXICOLOGICAL DATA

   Recently, EPA proposed a numerical effluent
standard for the carcinogen bcnzidine. The
derivation of this standard brought into sharp focus
the inadequacy of current approaches to testing for
the purposes of standard setting, both for
carcinogens and for other chemicals. In my view the
traditional approach of determining a no-effects
level in animals and then extrapolating to human
effects via safety factors is not adequate in many
cases, particularly when there are questions as to
whether there are thresholds and whether
irreversible effects are involved. On the other hand,
describing the  risks in terms of probabilities of
incidents through existing statistical extrapolation
techniques—such as was done in the case  of
benzidinc—and then balancing these alternative risk
probabilities against the costs of the environmental
control may not otter the optimal approach. In any
event, we are looking forward to an initial
confrontation of our biostatiticiansand our
tox'icologists on this very issue during the next
several weeks.
   In large measure the issue revolves around how
the scientist packages the toxtcological data for the
decision-maker. If the scientist structures the
experiment and packages the data to derive simply a
"safe" level for chemical exposure, then the
decision-maker has only one option, and all other
factors become irrelevant. The scientist has in fact
assumed responsibility for consideration of the total
impact of a regulation on society. On the other hand,
if the scientist presents several options, with
explanations of the health and environmental
implications of each, then the decision-maker can
indeed take into account a wide range of social and
economic implications at different levels of
chemical exposure.
                                                    14

-------
   ENVIRONMENTAL CONCERNS BEYOND
               THE WORK PL. ACE

           Working Group on Toxicily of
         Vinyl Chloride-Polyvinyl Chloride
        The New York Academy ol Sciences
               New York, New York
                  May II. 1974
   During the past several months vinyl chloride has
 awakened all elements of the environmental
 community to the presence of the plastics industry.-
 In some respects it is fortunate that we have been
 alerted in a rather dramatic fashion to the need for
 greater attention to this important segment of our
 industrial base which will surely continue to expand
 in the years ahead. While this symposium is directed
 to the existing and potential risks involved in the
.manufacture, distribution, and use of vinyl chloride
 monomer (VCM) and polyvinyl chloride (PVC),
 many of the types of considerations and
 uncertainties that punctuate these deliberations
 undoubtedly characterize a far broader swathe of
 concerns over chemicals in general. Hopefully, we
 can extrapolate from our current experiences with
 VCM and PVC in identifying problems with other
 potentially important commercial chemicals early in
 their embryonic stage and thus minimize the •
 economic dislocations attendant to corrective
 actions.
   Unfortunately, the proposed Toxic Substances
 Control Act has been lodged in a Joint Committee of
 the Congress for ten months. Thus, a very powerful
 tool for addressing the vinyl Chloride problem, and
 similar problems with other chemicals, in an
 adequate manner is not available to the Federal
 Government. We must rely on other statutory
 authorities and on the power of persuasion in our
 efforts to insure that our population is not being
 unnecessarily exposed to concentrations of VCM
 and other chemicals used in connection with VCM.
 It is particularly distressing that until this statutory
 authority is on the books, the Federal Government
 will not be equipped—in terms of experienced
 personnel and supporting resources—to grapple
 with the intricacies of this type of toxic substance
 problem in a manner which will insure full attention
 to the balancing of risks and benefits.
   Today I will report to you on the preliminary
 investigations undertaken by the Environmental
 Protection Agency during the past three months. We
 are still several weeks away from reaching even
 tentative conclusions as to what additional steps, if
any, should be taken by the Agency concerning
VCM/PVC activities. Our monitoring data are not
yet in hand. Similarly, our analytical studies are not
yet completed. Nevertheless, we are pleased to share
with you some of out  initial thoughts. We will
welcome your comments on the efforts to date and
on further steps which arc necessary. In this regard.
the prioriti/ation of our efforts is particularly
important in view of the speed with which this
problem is evolving and the limitations on our
resources.
  At the outset it is important to underscore that the
progress made to date would not have been possible
withcjut the extensive cooperation of other federal
agencies, industry, and environmental groups. We
have profiucd greatly from our discussions with
these organizations, through our on-site industrial
visits, and  through constructive suggestions that we
have received.

EPA REGULATORY AUTHORITIES

  To date EPA has exercised its authority in the
pesticides  area to suspend the use of vinyl chloride
as a propellant in all pesticide products registered
for indoor use in homes, food handling
establishments, and other enclosed areas, with a
mandatory recall of stocks in the channels ol'trade.
In addition, in response to the Agency's request, all
registrants of pesticides which are used outdoors
have agreed either to withdraw their registrations or
to ain'end them to  provide for the substitution of
another propellant in their products.
  We are currently investigating what regulatory
actions, if  any, arc needed with regard to air
emissions, water effluents, and solid waste disposal
at facilities involved in VCM and PVC activities. In
addition the Agency has responsibility in the areas of
drinking water standards, ocean disposal, and
municipal  waste disposal—all areas of some
relevance to the VCM/PVC concerns.
  As previously mentioned a principal authority
which is currently missing is the Toxic Substances
Control Act. The requirements for reporting of
industrial  production data envisaged in the Act
would enhance our knowledge of the types and
extent of different uses of VCM. The testing
provision would enable us to obtain much needed
data—and particularly data on toxicity and
persistence—for assessing the risks associated with
low concentration levels of VCM,  including those
levels that  are likely to persist beyond the
workplace. The proposed  regulatory provisions
would provide a mechanism for addressing those
                                                   15

-------
 products using VCM not now subject to regulation
 under other laws. Also, if considered appropriate,
 steps might be taken to limit the amount of
 unreacted VCM in certain PVC products which may
 eventually migrate out of these products to pose an
 unnecessary risk.

 THE MATERIALS BALANCE

    EPA's initial concern in this area centered on
 reports in February of a materials loss of six percent
 in the PVC production process. Our detailed
 investigations indicate that these initial reports were
 in the correct range. Clearly, the percentage of losses
 will vary with the type of process, the age of the
 plant, the level of technology that is employed, and
 manufacturing practices. However, there is no doubt
 that in the United States substantial amounts of
 VCM—probably exceeding 200 million pounds
 annually—and large quantities of PVC—probably
 exceeding 50 million pounds—are being discharged
 into the environment during the PVC production
 process. Most of the VCM escapes directly into the
 atmosphere as air emissions, with lesser amounts
 dissolved in water effluent streams and entrapped in
 sludge and solid wastes. PVC losses occur as
 paniculate in air emissions, suspended solids in
 water effluents, and components of solid wastes.
    Clearly, a principal area of VCM leakage is
 associated with the operation of the polymerization
 kettles, including losses when they  are opened for
 recharging, cleaning, or sampling. Other losses
 occur during the transfer of VCM from tank cars to
 storage, during the drying process, and from leaks at
 a variety of valves, flanges, and pump seals
 throughout the process. Polymer losses are similarly
 distributed among a variety ol activities including
 dust collector losses, disposal of oversize particles,
 and sampling losses. Our estimates indicate that
 losses for a typical suspension process vary from
 four to eight percent. In this regard two aspects are
 particularly significant: there arc a variety of PVC
 processes with differing problems and control
 possibilities and in every case the number of
 potential leakage points is very large.
    For economic reasons and in view of the fire
 hazard from VCM industry has always been
 concerned with reducing its losses down to a point.
 Now some plants are taking steps to reduce these
 losses further in view of worker and environmental
 concerns. We understand that the tightening up on
 maintenance and housekeeping activities can indeed
 have a significant impact, and several PVC plants
: reportedly are now operating close to the four
! percent level for total losses.
  The data needed for conducting material balance
analyses during VCM production and PVC
compounding and fabrication processes are less
 eadily available. However, we do not believe (hat
:hesc activities pose as serious an environmental
concern beyond the fence line of the plant, at least at
the present time, as the polymerization process. At
the same time in (he absence of constant vigilance
VCM losses to the atmosphere during the latter
phases of the VCM production process and during
transfer to and from storage can be significant. Also,
throughout the process there are many seals and
valves which inevitably lead to leaks. With regard to
compounding and fabrication, unreacted monomer
is inevitably associated with the polymer following
the polymerization process. In some cases this
monomer concentration reaches 7000 ppm although
a more representative level probably is in the range
of 500to 1000 ppm. During the mixing and heating
processes in the compounding and fabrication
plants, some of this VCM  undoubtedly escapes into
the environment. Now, in  efforts to reduce further
the level of unreacted VCM in the final product
many companies are introducing new techniques
which increase the migration rates during this phase
of production.

THE NEED FOR EPIDEMIOLOGICAL AND
TOXICOLOGICAL STUDIES

  Since some elements of our population in addition
to the plant worker arc being exposed to some level
ol VCM. we must address the question: What is the
risk of such exposure?
  In considering non-worker populations, we are
confronted with a host of new unanswered questions.
How relevant to this concern are the data generated
for  estimating worker exposure risks'? Can
meaningful extrapolations be made from
toxicological tests at relatively high dose levels to
the lower levels of the dose-response relationship?
Can realistic extrapolations be made from
intermittent exposure, which characterizes the past
und present toxicological and epidemiological
investigations (e.g. eight hours per day, five days per
week) to sustained exposure at the same dose levels
or at lower levels? Are synergistic effects that result
from exposure to other chemicals as well as VCM
influencing the worker's response to VCM, and are
there similar opportunities for such synergism within
a non-worker population?
  There are not sharp answers to these questions.
and indeed they go to the heart of many of the
fundamental uncertainties of the biological sciences.
To date the epidemiological and  toxicological data

-------
that have been generated have been directed almost
exclusively to concerns over workers. This is the
data base that we in EPA presently have available. 1
doubt that anyone is more aware of its inadequacy
than are those of us responsible for regulatory
actions based on this data. Unfortunately, we often
have no choice but to make judgmental  decisions
using whatever scientific information is available.
  Other reports presented at this symposium review
past, current, and future studies directed to VCM.
While they will undoubtedly be helpful to our
assessment of the environmental problem, from our
point of view that are clearly not adequate  in
improving the basis for estimating non-worker risks.
Let me cite three examples of the types of studies
which appear to be needed:

  — Epidemiological investigations of populations
     near chemical plants that are likely to have
     been exposed to low ambient levels of VCM
     over a prolonged period of time. It is the
     responsibility of industry to support such
     efforts which will help clarify whether
     manufacturing activities pose a risk to
     neighborhood residents. At the same time we
     recognize the complexities involved in
     designing and carrying out such studies, the
     advantages of drawing on governmental
     experience in this area, and the prutotypic
     nature of such an undertaking. Therefore, it
     seems likely thai EPA will  be prepared to
     participate in such efforts along with  industry
     and other interested parties.
  — Toxicological tests at appropriate dose levels,
     with a sufficiently large number of animals.
     and with appropriate exposures to provide the
     basis for meaningful conclusions concerning
     the likely health effects of VCM in ambient air
     near chemical plants. Such  tests arc clearly the
     responsibility of industry. Indeed, industrial
     responsibility for the testing of the safety of its
     products is a basic tenet of the Toxic
     Substances Control Act. At the same time, we
     are aware that some industrial firms are
     concerned about the possible inadequacy of
     commercial test facilities to accommodate the
     needed tests. Therefore, if necessary, the
     National Center for Toxicological Research,
     which is supported by FDA and EPA, is
     prepared to work with industry toward
     suitable arrangements for utilizing available
     buildings in Jefferson, Arkansas.

  — Research on animals and in vitro experiments
     to help clarify the toxicological significance of
o     impurities in VCM, synergislic effects due to
      exposure to other chemicals in addition to
      VCM such as vinylidine chloride, and
      metabolic reactions induced by VCM.
      Government, industry, and academia all  have
      responsibilities in this area, and EPA is
      currently considering specific steps that might
      be taken to contribute to advancing the
      frontiers, of our knowledge.

 MONITORING. PERSISTENCE. AND
 MIGRATION STUDIES

   We are obviously concerned about current and
 future background levels of VCM in the air and in
 the water throughout the country. Our more
 immediate efforts, however, arc being directed to
 determining ambient and peak levels near chemical
 plants.
   Recently, we initiated a nationwide sampling and
analysis program to determine, at least in a
 preliminary fashion, the VCM levels in ambient air
and in water and semi-solid effluents at about ten
 PVC plants. These activities are currently
underway, and we hope to have the results within
several weeks.
   Asa precursor to this nationwide effort, several
weeks ago we conducted a preliminary monitoring
program at the B.  F. Goodrich plant in Louisville
using inadequately tested sampling and analysis
methods. At that time VCM levels were detected of
 I lo 2 ppm in the ambient air outside the plant,  2 to 3
ppm in the primary water effluent, and 100 to 200
ppm in the sludge at the plant site. However, these
numbers could be in error by as much as an order of
magnitude due to the  pioneering  nature of the effort.
and no conclusions should be drawn at this time.
   During the past several weeks we have made  a
major effort to develop credible and standardized
sampling and analysis procedures, building on this
initial experience. Our current monitoring efforts
are based on this recently improved methodology.
The limit of detection for our current technique is
approximately .06 mg/liter in water and .06 ppm
(volume/volume) in air. However, when vacuum
cans arc used, the detection limit is .2 ppm because
the gas sample must be diluted. The technique we
are using is now publicly available with the hope that
our efforts toward standardization will lessen the
chaos characterizing current monitoring efforts of
several federal agencies and industry.
   While the near-term objective of these monitoring
efforts is to gain a limited perspective of (he levels of
VCM near PVC plants, we should also learn more
                                                   17

-------
 about the persistence of VCM in air and water from
 our measurements. Samples are to be taken during
 daytime and at night, and there undoubtedly will be
 a range of temperature and humidity conditions.
 However, we have not structured the  measurements
 with research as a principal objective, and we will
 not be able to quantify persistence characteristics
 with any  degree of precision.
   Limited laboratory experiments are also being
 attempted to clarify persistence characteristics of
 VCM. Related to our decision to suspend pesticide
 sprays containing VCM, one  laboratory test showed
 that in an unventilated and unlighted chamber, less
 than one  percent of the VCM initially persent was
' dissipated after four days. Current efforts are
 directed  to clarifying the rate of retention of VCM
 entrapped in water effluent streams, as well as
 further work to understand the effect  of light, heat,
 and moisture on VCM in air.
   There  has been considerable discussion of the
 amount of unreacted VCM monomer remaining in
 PVC and the rates of migration out of the PVC.
 Many companies are now seized with this problem,
 and I suspect the number of samples being taken to
 determine VCM concentrations and migration rates
 has increased considerably in recent weeks. We do
 not know whether such migration from  finished
 products contributes significantly to background
 levels of VCM, but as you are aware PDA is seized
 with several aspects of this problem directly related
 to food. Should there be high  levels of VCM
 background in the environment, then our concern
 over all sources of VCM—including migration from
 many products—should intensify.
   In all of these areas industry has a major
 responsibility for determining and alerting the
 public about the behaviour of its products. I would
 hope that in the months and years ahead industrial
 monitoring efforts at the fence line will  increase
 dramatically; persistence will become a key concern;
 and the ultimate fate of chemicals will be less
 uncertain. Already some chemical establishments
 have rather broad sampling and analysis programs,
 and as a direct result of VCM concerns, others are  .
 also making new efforts in this regard.
   At the same time EPA has a responsibility to help
 insure the adequacy of the national effort in keeping
 abreast of the chemical cross-section of our
 environment.

 CONCERNS OVER DISPOSAL OF PVC

   While we tend to lump all types of PVC into one
 category, I am sure you are aware of the variances in
the chemical and physical properties of different
grades of PVC. Also, end products made from PVC
include a variety of other chemicals which are added
throughout the production cycle.
  To date EPA's principal concerns relating to PVC
have been directed to possible problems attendant to
its disposal—either in incinerators or landfills. We
have not investigated in depth any of the special
problems associated with inhalation or ingestion of
low concentrations of PVC paniculate.
  With regard to incineration, HCI is a primary
product of concern. Also, toxic metals may be
present as additives and thus cause inhalation
problems, either as metal or oxide vapors.
  Landfill disposal operations have traditionally
assumed that PVC is stable with little likelihood of
biological degradation or undesirable leachates.
Taking a long-term perspective these assumptions
seem clearly overly simplistic, and we should
address in greater depth problems attendant to the
disposal of plastics. Experiences in the tropics, for
example, have demonstrated the effect of bacteria on
PVC which has not been specially treated for use in
humid areas.
THE RISKS. THE BENEFITS, AND THE COSTS

  The current problems with VCM have brought
into sharp focus the practical aspects of balancing
the risks and benefits associated with commercial
chemicals. The costs involved to reduce these tasks
substantially may be formidable—or indeed may be
prohibitive. The aspect which is perhaps the most
troublesome goes to the heart of this meeting—What
is the risk now and under alternative regulatory
approaches?
   In the years ahead more chemicals will be in
commerce, the properties of many chemicals will be
better understood, and consequently the list of
chemicals considered to be hazardous to man and
the environment will undoubtedly be much longer.
Also, improved research and analytical capabilities
will show that the effects of these chemicals—acting
individually and synergistically—are much farther
reaching than currently suspected effects.
   As these realities of the chemical age unfold, there
must be a far greater sophistication in approaches to
responsible regulation. Hopefully, we will develop
the necessary precautionary measures that will limit
exposure to chemicals when necessary, but not
unnecessarily curtail commercial activities.
                                                    18

-------
      CHEMICALS,THE ENVIRONMENT,
              AND REGULATION

            Quality Assurance Seminar
                   Burden,Inc.
                 Columbus, Ohio
                   June 5,1974
   About 20,000 chem ical substances are
 commercially produced and used in the United
 States, with 500-700 new substances entering
 commerce annually. They find a wide variety of uses
 as industrial chemicals, in consumer products, and
 in specialized uses such as drugs, food additives, and
 pesticides. We estimate that about ten percent of
. U.S. industry is directly involved in introducing
 chemical changes into its products. This is the sector
 of industry of interest.
   The problems presented by the presence in the
 environment of some chemical substances are all too
 well known (e.g. mercury, lead, asbestos). Others are
 believed to pose a latent health or environmental
 threat, while the effects associated with many of the
 remaining chemicals, acting individually or
 synergistically, are almost completely unknown.
 However, it seems clear that the problems associated
 with the presence of many chemical substances in the
 environment—such as food and drinking water
 contamination, destruction of biota, and water and
 soil  degradation—will  undoubtedly continue to
 grow in number, severity, and complexity in the
 years ahead.
   Some of the hazards associated with chemical
 substances have been recognized and are controlled
 by the Government, e.g. pesticides and drugs. Other
 aspects of the toxic substances problem have only
 recently been identified, and appropriate regulatory
 measures do not yet exist. Still other pieces of the
 problem  have yet to be  identified. Many gaps remain
 in understanding why, how, and when a substance
can have a negative impact on health or the
environment, and how best to control or prevent
such hazards.
  Thus, the concern of EPA with toxic substances is
two-fold: Identification and assessment of the risks
associated with the manufacture, distribution, use,
and disposal of chemical which  could adversely
affect health and environmental quality; and
practical steps, including regulatory actions as
appropriate, to prevent  or mitigate the problems
posed by  such chemicals.
  The risks associated with toxic substances are
related to many factors  including the size of the
 dose, duration of exposure, form of the substance
 when released, and presence of other substances that
 also contribute to environmental stresses. Problem
 assessment is further complicated by the niany
 unknowns that surround the characteristics a nil
 behaviour in the environment of most toxic
 substances, including such aspects as persistence,
 degradation, accumulation, and movement among
 environmental media. Good information is not
 readily available concerning levels, distribution,
 and trends in the environment of many substances of
 concern. With regard to the adverse effect of toxic
 substances, testing approaches for measuring
 chemical properties and acute toxicity are
 reasonably well developed. However, similarly well
 developed test methods for determining chronic
 toxicity and for estimating environmental impact are
 not in hand.
   The success of past efforts to reduce these
 deficiencies and uncertainties has been spotty.
 Monitoring systems generally lack the capability to
 relate effects to specific substances, and research
.efforts are only now beginning to address many core
 issues. Lack of effective integration of the many
 Federal monitoring and data systems further
 impedes rapid progress.
   In seeking to control specific toxic substance
 problems, the Government can draw on three types
 of regulatory authorities;

   — Consumer protection statutes which have as
      their primary mission the prevention of acute
      risks to human health: They, however, do not
      address problems of environmental protection
      nor human exposure to toxic substances
      through environmental routes.  '

   —  Media-oriented statutes which  focus primarily
      on problems at the point where they become
      environmental contaminants, typically, after
      they are manifested at the end of an outfall
      pipe or smokestack.
   —  Statutes dealing with a particular phase of the
     existence or use of a toxic substance such as
     risk to workers, transportation-related
     accidents, and use of pesticides which are toxic
     by design.

   Pending legislation is directed to enabling EPA to
deal with problems which do not currently fall
within the existing regulatory framework, and
.particularly with regard to drinking water
standards, disposal of toxic wastes, and problems
associated with  use and distribution of chemical
                                                   19

-------
substances. In addition, EPA would have authority
to control certain types of problems before they
appear in the environment. In the absence of such
legislation, efforts to cooperate with industry on a
voluntary basis in addressing specific problems
beyond the reach of current authorities must
continue although the results of past efforts have
been somewhat uneven.
  There are many interfaces among existing
regulatory authorities, and the passage of new
legislation will further extend the options for
addressing specific problems. Implementation of the
air and water acts, for example, has involved
selection of the most appropriate legislative
provisions within these acts for addressing problems
of toxic substances in addition to development of
criteria to determine if regulation is needed or
appropriate under specific provisions. Another  >
example is the control of the use of certain pesticides
under the pesticide act while point source discharges
of these same chemical are being considered for
control under the water act. Further complicating
effective choice of regulatory options is the tendency
to search for problems to be controlled under
specific authorities rather than searching for the
authorities that will most effectively control
problems. This approach of controlling the
"accessible" aspects of the problem, which may or
may not be the "critical" aspects, can hamper efforts
to cope with the core of the environmental and
health risks posed by manufacture, use, and disposal
of toxic substances.
  Central to consideration of regulatory options is
the balancing of the risks with the benefits related to
the action. The diversity of the tradeoffs make this a
formidable task. For example, the benefits from
employment of workers in chemical plants must be
balanced against occupational risks; U.S.
competitive ability in world markets weighs against
environmental testing costs or requirements of
expensive effluent or emission controls; and quality
of life benefits from chemical substances bear on the
degree of risks which can be tolerated. Restrictions
placed on existing activities will affect past
investments and established patterns of commerce
and employment. With respect to those chemicals
which have yet to be offered for commercial use,
barriers to market entry could be created through
pre-testing and screening requirements. If research
and development of new chemicals becomes so
difficult that it is no longer profitable, the
advantages to society, in terms both of new products
and development of less toxic alternatives to
existing products, are lost. In short, environmental
protection is not free. Care must be exercised in
assessing the impact of corrective actions on the
direction, configuration, and diversity of the
chemical industry as well as on the benefits to
society of chemical products.

TOXIC SUBSTANCES CONTROL ACT

  The proposed Toxic Substances Control Act would
give EPA new author •/ for (a) information
acquisition, and (b) restrictive actions. EPA could
require testing of chemical substances (both existing
and new) which are suspected to pose unreasonable
risks and also require other information from
manufacturers including the name of the substance,
chemical formula, amounts produced, actual or
intended uses, and known by-products. EPA could
then restrict the use and distribution of chemical
substances found to pose unreasonable risks. The
Agency could prescribe the amounts of a chem ical
which may be sold to processors, limit the type of
processor to whom it may be sold, restrict the
amount a given type of processor may use, or limit
the sale or manner in which a substance may be used,
handled, labelled, or disposed by any person.
  This new authority is important from  two
standpoints. First, the Federal Government is given
direct authority to restrict substances presently in
commercial use that are known to cause health or
environmental hazards, and when effects
information is lacking, to require testing of the
substance by the manufacturer to assess  human or
environmental impact. Second, for substances not
yet in commercial production, the Agency could
require premarket testing and review of chemicals
suspected to be hazardous. The Agency would  have
the opportunity to assess the risks before the new
substances are commercially produced and to take
appropriate regulatory action to prevent toxic
incidents.
  Given the extensive scope of the legislation, the
number of areas of initial emphasis will depend toa^5
significant degree on thestatfand resources
available for implementation activities.  In selecting
areas for priority attention consideration should be
given to Congressional mandates, severity and
urgency of existing problems which can be alleviated
by the new authority, opportunities to reduce future
problems of major dimensions, and necessity for
establishing long-term viability of implementation
procedures.
  While the final version of the legislation may
influence the choice of initial activities, it seems
                                                    20

-------
 clear that the following activities should be high on
 the agenda for early attention1:

   — Elaboration and articulation of the criteria or
      sets of criteria to be used in weighing risks
      versus benefits, and in determining, when
      regulatory action is needed. Clear
      understanding by both industry and
      Government of the ground rules for
      restrictions is essential to the viability of
      industrial R & D activities.

   — Determination of the character and scope of
      initial testing requirements, including the
      possibility of umbrella testing requirements
      for a broad range of chemical classes, and
      identification of specific chemicals or classes
      of chemicals of particular immediate concern.
      While the selection of substances covered by
      the standards for test protocols that are
      initially promulgated will in large measure
      reflect intuitive judgments concerning likely
      hazards and inadequacy of current data.
      concurrent work is needed to provide a basis
      over the longer term for selecting areas of
      concern.

   — Development or regulations selling forth
      timing, coverage, content, and formal of the
      reporting requirements for chemical
      manufacturers and processors, including both
      annual reporting and premurket notification.
   — Establishment of a data system for handling
      the industrial reports and test results that arc
      submitted. Experience in the pesticide area
      underscores the importance of early attention
      to establishing efficient and decision oriented
      procedures to be effective when the first
      reports arrive.
CHEMICALS AND CORPORATE
RESPONSIBILITY

  A fundamental tenet ot the Toxic Substances
Control Act.iind indeed of the entire federal
approach to environmental control, is that industry
has a primary responsibility to insure that (a) its
products do not pose health or environmental
risks—direct or indirect, immediate or delayed, and
(b) the associated manufacturing activities do not
contribute to environmental degradation. Shorthand
characterizations of these areas of responsibility are
product safety and pollution control..
  As you well know, ninny of our major chemical
companies have long experience in dealing with
 FDA in the area of product safety. In some cases
 FDA is quite precise as to safety requirements; other
 determinations are made on a case-by-casc basis in
 consultation with the concerned company. In
 general, considerable care is taken by all parties to
 insure that potentially harmful chemicals are not
 added inadvertently to our food supply. However.
 this pattern of Governmental regulation and
 concomitant industrial concern does not extend far
 beyond the perview of FDA, with growing
 except ions in the areas of pesticides and consumer
 products.
   With regard to the possible health and en-
 vironmental risks associated with the thousands of
 other commercial chemicals not subject to
 regulations, neither government nor industry has
 exhibited adequate concern beyond the safety of
 plant workers from acute health effects. At the same
 time, during the past several years, industrial
 attention to new chemicals—reflected in substantial
 financial support of research and testing—seems to
 be increasing. Unfortunately, a similar level of
 concern over the non-acute affects of chemicals
 already in commerce is not  apparent. For  example. I
 suspect that current industrial support for chronic
 toxicity investigations of the fifity leading industrial
 chemicals is minimal—or perhaps imperceptible.
 Two reasons apparently underlie this benign neglect:
 (I) There are many producers of each chemical with
 no party clearly responsible for taking the lead in
 supporting safety investigations, and (2) An
 overconfidence exists that there are no problems due
 to the extensive experience  with these chemicals
 without obvious adverse effects.
  Turning to pollution control, much of the
 industrial effort to date has  been reactive to federal.
 state, and local requirements which have usually
 been designed to reduce gross pollution effects.
 Clearly, progress is being made in controlling gross
 pollution, but at the same time far lessuitcntion is
 being devoted to the discharge of individual
 chemicals which could have delayed  effects. In the
 near-term, only industry has the wherewithal to
 identify and abate the discharge.ofmany of the
 particularly troublesome chemicals at individual
 plants. In the longer term. Government most likely
 will have to develop a similar capacity.
  It is extremely important  for a plant manager to
 know the chemical mix of the air emissions drifting
over the plant fence into nearby neighborhoods.
Sim Marly, he should be fully aware of the chemical
cross section of his liquid and solid waste streams.
This approach obviously means a serious physical
monitoring effort on the part of industry—
                                                   21

-------
monitoring not only for gross pollution but for
individual chemicals as well. With rare exceptions
such industrial monitoring programs do not
currently exist.
  Knowing what leaves the plant premises is of   .
course only (he i'trst step. Determining the signif-
icance of such discharges—irrespective of the
lack of Governmental requirements—is clearly the
next step. Fortunately, many of the chemical
pollutants that are frequently encountered have been
studied rather extensively and assessing the effect of
these chemicals on nearby neighborhoods should not
be difficult. For the other chemicals which are not as
well known accelerated industrial efforts to clarify
their effects are mandatory.
  I would hope that industry will take stronger
initiatives in these areas rather than just waiting for
Governmental regulations to descend. Strong,
positive actions now by industry could very well
temper eventual regulations that might otherwise be
developed from a point of overreaction arid cause
unnecessary economic disruptions.

THE VINYL CHLORIDE CASE STUDY

  During the past several months vinyl chloride has
awakened all elements of the environmental
community to the presence of the plastics industry.
In some respects it is fortunate that we have been
alerted in a rather dramatic fashion to the need for
greater attention to this important segment of our
industrial base which will surely continue to expand
in the years ahead. Hopefully, we can extrapolate
from our current experiences with VC and PVC in
identifying problems with other potentially
important commercial chemicals earlier in their
embryonic stage and thus minimize the economic
dislocations attendant to corrective actions.
  To date EPA has exercised its authority in the
pesticides area to suspend the use of vinyl chloride
as a propellent in all pesticide products registered
for indoor use in homes, food handling
establishments, hospitals, and other enclosed areas,
with a recall of stocks in the channels of trade. In
addition, in response to the Agency's request, all
registrants of pesticides which are used outdoors
have agreed either to withdraw their registrations or
to amend them to provide for the substitution of
another propellant in their products.
  We are currently investigating what regulatory
actions, if any, are needed with regard to air
emissions, water effluents, and solid waste disposal
at facilities involved in VC and PVC activities. In
addition the Agency has responsibility in the areas of
 drinking water standards, ocean disposal, and
 municipal waste disposal—all arees of some
 relevance to VC/PVC^bhcerns.
    EPA's initial concern in this area centered on
 reports in February of a materials loss of six percent
 in the PVC production process. Our detailed
 investigations indicate thai these initial reports were
 in the correct range. Clearly, the percentage of losses
 will vary with the type of process, the age of the
 plant, the level of technology that is employed. and
 manufacturing practices. However, there is no doubt
 that in the United States substantial amounts of
 VC—probably exceeding 200 million pounds
 annually—and large quantities of PVC—probably
 exceeding SO million pounds—are being discharged
 into the environment during the PVC production
 process. Most of the VC escapes directly into the
 atmosphere as air emissions, with lesser amounts
 dissolved in water effluent streams and entrapped in
 sludge and solid wastes. PVC losses occur as
 paniculate in air emissions, suspended solids in
 water effluents, and components of solid wastes.
    In considering non-worker populations, we are
 confronted with a host of new unanswered questions.
 How relevant to this concern are the data generated
 for estimating worker exposure risks? Can
 meaningful extrapolations be made from
, (oncological tests at relatively high dose levels to
 the lower levels ot the dose-response relationship?
 Can realistic extrapolations be made from
 intermittent exposure, which characterizes the past
 and present toxicological and epidemtological
 investigations (e.g. eight hours per day, five days per
 week) to sustained exposure at the same dose levels
 or at lower levels? Arc synergistic effects that result
 from exposure to other chemicals as well as VC
 influencing the worker's response to VC, and are
 there similar opportunities for such synergism within
 a non-worker population?
    There are no sharp answers to these questions, and
 indeed they go to the heart of many of the
 fundamental uncertainties of the biological sciences.
 To date the epidcmiological and toxicological data
 that have been generated have been directed almost
 exclusively to concerns over workers. This is the
 data base that we in EPA presently have available. I
 doubt that anyone is more aware of its inadequacy
 than are those of us responsible for regulatory
 actions based on this data. Unfortunately, we often
 have no choice but to make judgmental decisions
 using whatever scientific information is available.
    We are obviously concerned about current and
 future background levels of VC in the air and in the
 water throughout the country. Our more immediate
                                                   22

-------
efforts, however, are being directed to determining
ambient and peak levels near chemical plants.
Recently, we initiated a nationwide sampling and
analysis program to determine, at least in a
preliminary fashion, the VC levels in ambient air
and in water and semi-solid effluents at thirteen
PVC plants. These activities are currently
underway, and we hope to have the results very
soon.
  There has been considerable discussion of the
amount of unreactcd VC monomer remaining in
PVC and the rates of migration out of the PVC.
Many companies are now seized with this problem,
and I suspect the number of samples being taken to
determine VC concentrations and migration rates
has increased considerably in recent weeks. We do
not know whether such migration from finished
products contributes significantly to background
levels of VC, but as you are aware FDA is seized
with several aspects of this problem directly related
to food. Should there be high levels of VC
background in the environment, then our concern
over all sources of VC—including migration from
many products—should intensify.

TOXIC SUBSTANCES IN THE MID-1980's

  By 1985, more chemicals will be in commerce, the
properties of many chemicals will be  better
understood, and consequently the list of chemicals
considered to be hazardous to man and the
environment will undoubtedly be much longer.
Also, improved research and analytical capabilities
will show that the effects of these chemicals—acting
individually and syncrgistically—arc much farther
reaching than currently suspected effects.
  From the toxic substance point of view the quality
oflife in the chemical age of the Eighties, relative to
the current quality of life, depends, in large measure,
on the outcome of the competition between
population and economic growth on the one hand
and the sophistication in approaches to responsible
regulation—by both industry and government.
Clearly, more .people will be exposed to more
chemicals in more situations. Hopefully, we can
develop the necessary precautionary measures that
will limit exposure to chemicals when necessary, bui
not unnecessarily curtail commercial activities.
   There is, of course, a danger that society will not
 act responsibly toward toxic substances through its
 Governmental and other institutions, with the
 inevitable outcome of endless legal confrontations.
 The entire approach to toxic substances could
 become bogged down in the courts. To avoid such a
 situation, the highest quality of government
 leadership in this area is essential—leadership
 characterized by technical credibility and openness
 in dealing with controversial data.
   If the regulatory pattern of the Sixties and
 Seventies continues, during the Eighties the number
 ot toxic substances other than chemicals associated
 with foods, drugs, cosmetics, and pesticides
 regulated by Government will be relatively few—in
 the dozens rather than hundreds or thousands.
 However, each of these regulatory decisions will be
 significant in thai they will set the framework and
 the standards for the efforts of industry in self-
 regulation of the bulk of the industrial chemicals.
   Industry will probably be using testing and related
 approaches to product safety which are not
 significantly different from current approaches. The
 Governmental thicket of regulations may
 inadvertently drive some of the smaller companies
 out of new product development. Concurrently,
 closer Governmental scrutiny of industry activities
 may be necessary in the lace of potential legal
 problems as the larger companies consolidate their
 positions.
   By 1985, most of the emission  stacks and effluent
 pipes will be plugged. Our toxic substance concerns
 will center largely on contaminants, non-point
 sources, direct product exposure, and generally
 unattributablc build-up of toxic chemicals in the
 environment. And, as the gross pollution effects
 subside, previously undetected effects of individual
 and combinations of chemicals in the water and in
 the air will probably be unmasked.
  Risk/benefit approaches should be well accepted
 within a decade, although concerns will penetrate
 much more deeply into social as well  as economic
 values. There should be far less concern over the
concept of accepting different levels of risk for
different chemicals, depending on their social
 utility. And at the same time the role of corporate
 responsibility should be better accepted by all
concerned.
                                                  23

-------
        REGULATORY ASPECTS AND
              RESEARCH NEEDS

    Conference on Public Health Implications
      of Components of Plastics Manufacture
       National Institute of Environmental
                Health Sciences
            Pinehurst, North Carolina
                August 29, 1974
  This Conference has underscored the many gaps
in our understanding of the behavior of vinyl
chloride and the inadequacies of current research
efforts to improve the data base which supports the
regulatory decisions that must be made now. In
addition to the need  for much better information on
the human health effects of exposures to low levels
of vinyl chloride, we know relatively little about

  — the persistence of vinyl chloride in air and
     water and the degradation products associated
     with this chemical

  — the ecological effects of vinyl chloride,
     particularly as it interacts with aquatic
     organisms
  — the rates of migration of unreacted vinyl
     chloride monomer from products containing
     PVC during their use and disposal.

  Perhaps, even more importantly the Conference
has highlighted what many environmentalists are
calling the "tip of the iceberg"—an iceberg of
chemical problems that will continue to float  to the
surface during the decades ahead. For example, the
array of hundreds of chemicals added to plastics that
was shown here clearly illustrated the complexity of
the task of the researcher in attempting to provide an
early warning of future problems.
  It certainly appears that except for continuing
concern over  spills and accidents, Government and
industry have been rather complacent with regard to
the potential environmental threat from the high
volume industrial chemicals. This complacency is in
large measure attributable to the relative absence of
visible and uncontrolled dangers from exposure to
the chemicals during their long histories. In
addition, since many of these chemicals arc
manufactured by a number of companies, firms may
lack incentive to invest individual company
resources to clarify the safety aspects of their usage.
Clearly, the experience with vinyl chloride—the
twenty-second leading chemicals in terms of
production—underscores the problems that can
result from such complacency. Despite the
continuing commercial importance of these high
volume chemicals, it cannot be assumed that
adequate research, testing, and related safety
measures will be taken by industry, and vigorous
governmental leadership in this area seems essential.
  The most immediate task confronting us all is how
to organize the limited resources—and I refer
principally to dedicated scientific talent—of
Government and industry to sort out the areas
requiring the most urgent attention. Should the
Toxic Substances Control Act be enacted, the
Federal Government will have a new responsibility
of particular importance to the prioritization of
these efforts. Hopefully, such a legislative mandate
can provide the impetus for more concerted efforts
toward'early recognition and correction of
potentially serious chemical problems.
  This Conference has been a useful first step
toward imparting a sense of direction for addressing
the  many unknown aspects of the plastics industry,  li
certainly has helped clarify the dimensions of the
problem. Clearly industry must play a key role—in
monitoring, testing, and, where appropriate,
restraint—for in many cases only the manufacturer
of the chemical is in a position to suspect the
likelihood of hidden hazards associated with his
products.
                                                   25
                                                           Preceding page blank

-------
   CHEMICALS AND THE ENVIRONMENT.
            THE FUTURE IS NOW

      25th Constitutional Convention of the
      International Chemical Workers Union
               Las Vegas, Nevadfi
               September 23, 1974

CHEMICALS.THE WORKER. AND THE
ENVIRONMENT

   It is indeed u privilege to he able to participate in
this meeting at a time when chemicals arc in the
forefront of your concerns and of mine. These past
twelve months have been punctuated with repeated
warnings that Government, industry, and labor must
direct greater attention and additional  resources to
clarifying the risks associated with chemicals. We
cannot afford to learn about these risks after the
damage is done, but at the same time we cannot act
precipitously and unnecessarily curtail the influx of
chemical products so essential to the viability of our
economy.
  Let me recount a few of the events of recent
months as viewed from the perspective of the
Environmental Protection Agency—events which
clearly dispel! any notion that our concerns are only
hypothetical, and unfortunately document the
reality of the problem.

  — Last year the discovery of unusually high
     levels of asbestos in the drinking water of
     Duluth, Minnesota, gave impetus to a series ot
     court actions and at the same time stimulated
     extensive Governmental efforts to clarify the
     hazards related to.the inhalation or ingcstion
     of asbestos.
,  — More than a dozen carcinogens that pose a
     potential hazard in the work place have been
     identified and strict precautionary measures
     prescribed. Of particular environmental
     concern is benzidine in view of its widespread
     distribution in dyes and fabrics.
  — The imprint on the worker and ihe en-
     vironment of vinyl chloride may be with us
     for many years to come. The problems we have
     uncovered in recent months in addressing
     vinyl chloride have raised a host of questions
     with regard to all of the high volume industrial
     chemicals.

  — Last Friday, hearings were held in Washington
     on arsenic. An unusually high incidence of
     cancer among workers exposed to arsenic has
      been reported, and there have also been
      reports of high levels in the crops and in the
      population adjacent to at least one smelter.
   You may ask why a representative of the
 Environmental Protection Agency—which has no
 authority within the plants—was asked to speak to
 this gathering which is concerned with the worker.
 As you know, the Department of Labor and not EPA
 has the primary Governmental responsibility for
 safety in the work place. Our responsibility begins at
 the fenceline. However, there are at least four
 reasons why EPA is concerned with the worker, and
 why I spend many hours in meetings with our
 col leagues from the Department of Labor.

   — We are vitally concerned with the health and
      welfare of neighborhoods adjacent to
      industrial complexes. More often than not a
      large proportion of the residents are workers
      and their families.

   — Secondly, pollution control is not free, and the
      costs of compliance with EPA regulations can
      result in economic dislocations for the affected
      industries with the livelihood of the workers
      often at stake.

   —  In addition, many of the costs of pollution
      control are passed on to the consumer  and I
      need not tell you who is the first to feel the
      impact of higher prices for consumer products.

   —  Finally, the Department of Labor and EPA
      regulate many of the same chemicals. Neither
      of us has enough resources to do an adequate
      job. Hopefully, by sharing our experiences we
      both will be able to dp a better job.

 20.000 CHEMICALS

   About 20,000 chemical substances arc
commercially produced and used in the United
States, with 500-700 new substances entering
commerce annually. They find a wide variety of uses
as industrial chemicals,  in consumer products, and
in specialized uses such us drugs, food additives, and
pesticides. We estimate that about ten percent of
U.S. industry  is directly involved in introducing
chemical changes into its products.
  The problems presented by the presence in the
environment of some chemical substances are all to
well known. Others arc believed to pose a latent
health or environmental threat, while the effects
associated with many of the remaining chemicals.
acting individually or syncrgistically, arc almost
completely unknown. However, it seems clear that
                                                  27
       Preceding page blank

-------
the problems associated with the presence of many
chemical substances in the environment will
undoubtedly continue to grow in number, severity,
and complexity in the years ahead.
  Some of the hazards associated with chemical
substances have been recognized and are controlled
by the Government, e.g. pesticides and drugs. Other
aspects of the problem have only recently been
identified, and appropriate regulatory measures do
not yet exist. Still other pieces of the problem have
yet to be identified. Many gaps remain in
understanding why, how, and when a substance can
have a negative impact on health or the
environment, and how best to control or prevent
such hazards.
  Thus, our concern is two-fold: identification and
assessment of the risks associated with the
manufacture, distribution, use and disposal of
chemicals which could adversely affect health and
environmental quality; and practical steps,
including regulatory actions as appropriate, to
prevent or mitigate the problems posed by such
chemicals. Paramount in these concerns must be the
safety of the worker, who invariably has the greatest
degree of exposure to the broadest range of
chemicals.

VINYL CHLORIDE—BETTER LATE THAN
NEVER?

  In January 1974, the B.F. Goodrich Company, the
largest U.S. producer of PVC resin, notified the
National Institute of Occupation;! I Safety and
Health that four workers from its PVC, poly-
merization plant in  Louisville, Kentucky,
apparently had died from a rare cancer, angio-
sarcoma of the liver. All four workers had
been closely associated for many years with the
production of PVC resins. The rarity of the tumor
and the clustering of deaths at a single plant raised
suspicions that an occupational disease related to
vinyl chloride exposure had been found. Since that
time, ten additional cases of this tumor, which
developed in U.S. PVC polymerizations workers
since 1961 .have been confirmed. This tumor  has
also been reported in seven workers at European
polymerization plants, one worker at a U.S. PVC
fabrication plant, two workers at European
fabrication plants, one worker at a European vinyl
chloride plant, and two residents in the general
population near U.S. fabrication plants.
  Concurrently, toxicological data from animal
studies became available which further strengthened
the suspicion of vinyl chloride as the etiological
agent in the formation of the liver cancer. A broad
spectrum of cancers was reported by Professor
Cesare Maltoni of Italy in different animal species at
various exposure levels. His inhalation studies of
rats exposed to SOppm at repeated intervals
approximating occupational exposures have
produced angiosarcomasof the liver and abdomen
us well as tumors of the kidney and skin. In mice
exposed to vinyl chloride the same tumors have been
observed, with the addition of lung tumors. Animal
studies sponsored by U.S. industry have confirmed
Maltoni's observations at SOppm. Recent
epidemiological studies also suggest the possibility
of multiple cancers attributable to exposure to vinyl
chloride.
  Meanwhile, statements by industry and Govern-
ment officials indicated that the material  loss to the
environment during the PVC polymerization
process may he about six percent, with more than 75
percent of the losses being vinyl chloride  air
emissions. Also, it soon came to light that vinyl
chloride was being used as a propellant in aerosol
sprays, and  we were becoming more aware of
railroad accidents involving vinyl chloride tank
cars.
  This series of events has finally stimulated a broad
range of corrective actions by Government and
industry—actions that should have been taken many
years ago. The Governmental actions include:

  — The banning of the use of vinyl chloride as a
     propellant in aerosol sprays by EPA, FDA,
     and the Consumer Product  Safety
     Commission.

  — Revision downward by the  Department of
     Labor of the standard for allowable levels of
     vinyl chloride in the work place.

  — Development by EPA of an air emission
     standard for vinyl chloride.

  — Development by FDA of regulations limiting
     the amount of unreacted vinyl chloride
     monomer in food packaging containing PVC.

  — Broad monitoring programs by EPA and other
     agencies to determine actual levels of vinyl
     chloride within plants.Jiear^hemical
     complexes, and Jn other areas.'
                  *            v
  — Expanded  research to clarify further the
      health aspects of exposure^) vinyl  chloride
      and the behavior and fate of this chemical in
      the environment.
                                                  28

-------
   Many of you muy be particularly concerned with
 the possibility of a vinyl chloride hazard associated
 with PVC fabrication activities. Initially, the
 Government's primary concern and investigative
 activities centered on the polymerization process.
 Only now, with the recent reports of angiosarcoma
 among former fabricators, has attention been
 directed to the more than 8,000 fabrication plants.
 The first step obviously is reliable monitoring—and
 I emphasize reliable—to determine existing levels. I
 regret to report that at present there is not available
 information which would enable us to provide any
 guidance on the likely hazard, if any,  in or around
 fabrication plants.
   Industry, of course, has a special  responsibility
 concerning vinyl chloride. Let me outline some of
 these areas of responsibility as viewed from the EPA
 perspective.

   Reducing Discharges of VCund Other Toxic
 Chemicals

   There is no doubt that industry has taken and can
 continue to take a variety of immediate steps at
 relatively little cost  to reduce vinyl  chloride
 discharges. During the past few months many plants
 have already started to tighten maintenace and
 operating procedures; other plants are installing
 improved pumps, seals, and disconnect devices;
 while still other plants are introducing more
 significant process changes. One company is
 reportedly spending $3 million to tighten the
 processes at a single PVC facility; another company
 reports that it has I 00 engineers working to
 introduce modifications that will dramatically cut
 vinyl chloride losses at several plants.

   Medical Surveillance

   Clearly, recent concerns have triggered extensive
 medical surveillance programs of workers
 throughout the industry. These programs should
become routine to cover a far broader swath of
chemicals and other chemical complexes. Published
analyses of the results of such programs would  be
very valuable to Government agencies. In addition,
industry should support medical surveillance
programs for residents in neighborhoods adjacent to
 PVC complexes and other types of plants releasing
 chemicals into these neighborhoods. The character
 of such surveillance will obviously depend on the
 type of chemicals involved and the arrangements
 that can be worked out by industry with local health
 authorities.
   Ftncclinc Monitoring far Chemical Discharges

   Traditionally, (he chemical industry has
conducted very little fcnceline monitoring not
required by federal, state, or local agencies to
determine the chemical discharges leaving plant
property: Clearly, a plant manager should know the
chemical injx of the air emissions drifting over the
plant fence into nearby neighborhoods. Similarly, he
should be fully aware of the chemical cross sect ion
of his liquid and solid waste streams. Thus, a far
more intensive physical monitoring effort on the
part of industry is needed.

   Toxicological Testing

   Until recently, the efforts of U.S. industry to
clarify the chronic toxicity of vinyl chloride  were
nearly negligible, despite the commercial
importance of this chemical. The studies to date
have not been adequate, in terms of direct ion. scope.
or quality. Even the additional toxieological studies
which have been proposed calling for animal
exposures down to I ppm may not be sufficient.

   Testing for Persistence and Environmental Effects

   A related area is industry's responsibility to
clarify the environmental fate and effects of the
chemicals it manufactures, and in this case the
behavior of vinyl chloride in water and air
(including degradation products) and the fate and
effects of products containing PVC in soil and water.
This is a new area winch has not attracted sufficient
attention from industry but which is of crucial
importance in assessing environmental impacts of
chemical activities. Governmental leadership will
probably be essential in helping  to point the way as
to the types of tests and analyses that are the most
appropriate.

   Testing for Levels of Unreuctetl Monomer

   In view of the likelihood that FDA will limit the
levels of unreactcd monomer allowed in PVC food
packaging, industry has recently accelerated efforts
to analyze the levels of vinyl  chloride that arc
present  in PVC resin used for food packaging and in
the packaging itself. This relatively inexpensive
procedure should be extended to other types of
products as well. It is particularly important that the
manufacturers of resin, who in general are well
equipped to carry out the necessary sampling and
analysis, advise their customers (i.e., the fabricators).
                                                    29

-------
of the quality of the resin in terms of unreacted
monomer in addition to the usual quality criteria.
The fabricators in turn have a responsibility to be
aware of the levels of unrcacted monomer that
persist in the products that eventually reach the
marketplace.

THE NEED FOR A LEGISLATIVE MANDATE

  The fate of the much needed Toxic Substances
Control Act will be decided in Washington during
the next few days—a decision that can have a direct
and profound impact on our society in general, and
the worker in particular. For three years this
legislation has been delayed in the Congress. Despite
the broad consensus that the legislation is clearly
needed, procedural delays and delays over details
have prevented prompt action by'the Congress.
  I know of no group with a more vital stake in this
legislation than this audience. What more dramatic
evidence than the vinyl chloride case is needed to
underscore the urgency of greater Governmental
and industrial responsibility in this area?
  The Toxic Substances Control Act would provide
new authority for (a) information acquisition, and
(b) restrictive actions. The Government could
require industrial testing of chemical substances
(both existing and new) which are suspected to pose
unreasonable risks and also require other
information from manufacturers produced, actual
or intended uses, and known by-products. Then, if
warranted, the use and distribution of chemical
substances found to pose unreasonable risks could
be restricted.
  This new authority is important from two
standpoints. First, the Federal Government is given
direct authority to restrict substances presently in
commercial use that are known to cause health or
environmental hazards, and when effects
information is  lacking, to require testing of the
substance by the manufacturer to assess human or
environmental impact. Second, for substances not
yet in commercial production, prcmarket testing and
review of chemicals suspected to be hazardous could
be required. Thus, there would be the opportunity to
assess the risks before the new substances are
commercially produced and to take appropriate
regulatory action to prevent toxic incidents.
  The authority to require industrial testing of
chemicals is designed to support the needs of both
EPA and the Department of Labor. However, the
new authority to regulate chemicals is limited to
chemicals outside the work place since there is no
intention to undercut the existing authority of the
Department of Labor in any way.

LOOKING AHEAD

  In decades ahead, more chemicals will be in
commerce, the properties of many chemicals will be
better understood, and consequently the list of
chemicals considered to be hazardous to man and
the environment will undoubtedly be much longer.
Also, improved research and analytical capabilities
will show that the effects of these chemicals—acting
individually and synergistically are much farther
reaching than currently suspected effects.
  In a few years the emission stacks and effluent
pipes will be largely plugged, and hopefully sensible
land disposal of hazardous wastes will be required.
At the same time,  however, more people will be
exposed to more chemicals in more situations—
exposure from contaminants, non-point sources,
direct product contact, and generally unattributable
buildup of chemicals in the environment. The
chemical worker will continue to be on the front line
of much of the exposure, I am confident that society
can develop the necessary precautionary measures
that will limit exposure to chemicals when
necessary, but not unnecessarily curtail commercial
activities.
  There is, of course, a danger  that society will not
act  responsibly in anticipating and remedying toxic
chemical problems through its  Governmental and
other institutions, with the inevitable outcome of
endless legal confrontations. The entire approach to
toxic substances could become bogged down in the
courts—which would be tragedy for us all.
  'With increasing frequency we are being awakened
to the latent health hazard from chemicals that have
not been adequately tested or analyzed. We are
becoming more and more concerned not only with
the  problems that emerge today but with those that
will only be recognized tomorrow. Preventive
actions are the key; corrective actions can only be
inadequate and disruptive.
  We have met the future, and  it is now.
                                                  30

-------
      VINYL CHLORIDE:  IMF. TIP OF THE
                   ICEBERG?

  Conference on VCM - The  Processor's Perspective
          Society of Plastics Engineers, Inc.
      Palisades Sect ion * Vinyl Plastics Division
               New York, New York
                 October 31. 1974
 CHEMICALS. INDUSTRY. AND THE
 ENVIRONMENT

   About 2(),()(K) chemical substances arc
 commercially produced and used in the United
 States, with 500-700 new substances entering
 commerce annually. They find a wide variety of uses
 as industrial chemicals, in consumer products, and
 in specialized uses such as drugs, food additives, and
 pesticides. We estimate thai about ten percent of
 U.S. industry is directly involved in introducing
 chemical changes into its products.
   The problems resulting from the presence in the
 environment of some chemical substances are all too
""w'eTTknown. Others are believed to pose a latent
 health or environmental threat, while the effects
 associated with many of the remaining chemicals,
 acting individually or synergistically. are almost
 completely unknown. However, it seems clear that
 the problems associated with the presence of many
 chemical substances in the environment will
 undoubtedly continue to grown) number, severity,
 and complexity in the years ahead.
   Some of the hazards associated with chemical
 substances have been recognized and are controlled
 by the Government, e.g. pesticides and drugs. Other
 aspects of the problem  have only recently been
 identified, and appropriate regulatory measures do
 not yet exist. Still other pieces of the problem have
 yet to be identified. Many gaps remain in
 understanding why. how, and when a substance can
 have a negative impact on health or the
 environment, and how best to control or prevent
 such hazards.
   Thus, our concern is two-fold: Identification and
 assessment of the risks associated with the
 manufacture, distribution, use. and disposal of
 chemicals which could adversely affect health and
 environmental quality; and practical steps,
 including regulatory actions as appropriate, to
 prevent or mitigate the problems posed by such
 chemicals. In addressing these concerns we must, of
 course, maintain an appreciation of the role of these
 chemicals in our economy and of the societal
 benefits that chemicals have brought to all of us.
 TH E CASE OF VIN Y L CH LOR 1DE:
 BETTER LATE THAN NEVER?

    The Kmrrgtncr of the Problem

    In January  1974, the B. F. Goodrich Company,
 the largest U.S. producer of PVC resin, notified the
 National institute of Occupational Safety and
 Health that four workers from its PVC
 polymerization plant in Louisville, Kentucky,
 apparently had died from u rare cancer,
 angiosarcoma of the liver. All four workers had
 been closely associated for many years with the
 production of PVC resins. The rarity ofthc tumor
 and the clustering ol deaths at a single plant raised
 suspicions that an occupational disease related to
 vinyl chloride exposure had been found. Since that
 time, at least  10 additional cases of this tumor,
 which developed in U.S.-PVC polymeri/.ation
 workers since 1961. have been confirmed. This
 tumor has also been reported in u number of workers
 at European polymerization and  monomer plants,
 one worker at a U.S. PVC fabrication plant, two
 workers at European fabrication plants, and two
 residents in the general population near U.S.
 fabrication plants.
   Concurrently, toxicological data from animal
 studies became available which further strengthened
 the suspicion of vinyl chloride as the etiological
 agent in the formation of the liver cancer. A broad
 spectrum of cancers was reported by Professor
 C'esare Maltoni of Italy in different animal species at
 various exposure levels. His inhalation studies of
 rats exposed to 50ppm at repeated intervals
 approximating occupational exposures have
 produced angiosarcomasof the liver and abdomen
 as well us tumors of the kidney and skin. In mice
' exposed to vinyl chloride the same tumors have been
 observed, with the addition of lung tumors. Animal
 studies sponsored by U.S. industry have confirmed
 Maltoni's observations at SOppm. Recent
 epidemiological studies also suggest the possibility
 of multiple cancers attributable to exposure to vinyl
 chloride.

   Meanwhile, statements by industry and
 Government officials indicated that the material
 loss to the environment during the PVC
 polymerization process may be about six percent,
 with more than 75 percent of the losses being vinyl
 chloride air emissions. Also, it soon came to light
 that vinyl chloride was being used as a propellant in
 aerosol sprays, and we were becoming more aware of
 railroad accidents involving vinyl chloride tank
 cars.
                                                     31

-------
  This series of events finally stimulated a broad
range of corrective actions by Government and
industry—actions that should have been taken many
years ago. Given the long history of PVC production
which in the past resulted in much higher levels of
exposure to workers and to the general population
than are encountered today—together with the long
latency period between exposure and the
development of angiosarcoma—we obviously are
very concerned that many of the consequences of the
somewhat reckless handling of vinyl chloride in the
past will continue to be uncovered for some years to
come.

  The Fabrication Process

  Many of you may be particularly concerned with
the possibility of a vinyl chloride hazard associated
with PVC fabrication activities. Initially, the
Government's primary concern and investigative
activities centered on the polymerization process.
Only very recently, with the reports of angiosarcoma
among former fabricators, has attention been
directed to the more than 8,000 fabrication plants. A
first step obviously is reliable monitoring—and I
emphasize reliable—to determine existing levels. I
regret to report that at present we do not have good
information which would enable us to provide
guidance on the likely hazard, if any. in or around
fabrication plants. Since the only source of vinyl
chloride at most of these plants is the unreacted
monomer that may be present in the PVC resin, we
would not expect the air emissions to be high. At the
same time, however, these facilities arc  often in
metropolitan areas which could result in exposure to
very large numbers of people.
  At the outset the major concerns of the
Environmental Protection Agency with regard to
fabrication activities related to other chemicals. For
example, information is not readily available
indicating whether any substantial risk might be
involved from the ingestion or inhalation of PVC
paniculate. Also, a large number of chemicals are
used in PVC products as antioxidants, antistatics,
colorants, fillers, plasticizers, and stabilizers, and
many of them can reach man through a  variety of
routes. The health effects of some of these chemicals
are reasonably well known; the effects of others have
yet to be explored. Several of them are particularly
good candidates for more detailed investigations,
e.g. cadmium, barium.
   Disposal of Products Containing PVC

   Hydrogen chloride is the major toxic material
released when PVC is burned. On the order of
32.000 tons of PVC are burned annually, releasing
approximately 18,500 tons per year of HCI as air
emissions. At the same time much more HCI is
probably now emitted to the atmosphere from coal-
burning power plants than from municipal
incinerators. However, there still could be a hazard
in the immediate vicinity of an incinerator as a direct
result of its HCI emissions.
   HCI can also be major factor related to corrosion
during incineration at certain temperatures.
Specifically, incinerators with heat exchangers will
have corrosion problems on the fire side of the
exchange equipment when the combustion gases
contact the outer metal surface. Also, about 95
percent of our incinerators have some type of air
pollution control equipment that is exposed to the
high chloride environment resulting from refuse
combustion. The cooling and precipitating water
from the scrubbers that contacts the tlue gas contains
large quantities of chloride and is extremely
corrosive to the structure.
   It is highly unlikely that large quantities of vinyl
chloride will be emitted during incineration of PVC.
There  is no evidence that PVC will chemically
revert  to vinyl chloride. Some small amounts of
entrapped monomer might conceivably survive
incineration, but these quantities would be very low.
  Other air, water, or soil contaminants could result
during disposal of PVC products. The types of
additives of particular concern are: antioxidants—
phenols, amines, phosphates, and sulfur compounds;
antistatics—amine derivatives, quaternary
ammonium salts, phosphate esters, polyethylene
glycolesters; colorants—salts or oxides of metals,
aluminum,copper, and inorganic pigments;fillers—
silica,glass,calcium carbonate, metallic oxides,
carbon, cellulose fillers, asbestos; plasticizers—
phthalates, organic phosphates; stabilizers—lead
salts of acids, barium, cadmium, calcium, zinc, alkyl
tin compounds.

  Recommendations of the EPA  Task Force

  Last month the EPA Vinyl Chloride Task Force,
which had been established in February, submitted
its Report to the Administrator. This Report
included the results of our initial monitoring
                                                   32

-------
 program at ten PVC resin and two monomer plants.
 preliminary analyses of the health effects of vinyl
 chloride, studies on the fate and environmental
 effects of vinyl chloride, and investigations of
 industrial practices. Upon receipt of the Report. Mr.
 Train announced that he hud accepted the
 recommendation for the Agency to establish an air
 pollution emission standard for monomer and  PVC
 resin plants and concurrently to investigate further
 the need for a standard applicable to fabrication
 plants. The eighteen other recommendations for
 Agency action are currently in various stages of
 implementation.
  The process of setting an air emission standard
 under the Clean Air Act will involve several months
 of additional monitoring and other investigations.
 data collection, public hearings, and other
 regulatory steps as required by  the Act. An
 environmental impact statement will be prepared.
 and public hearings held, to insure full public
 participation in the development of this standard.
 The current timetable is to promulgate the standard
 within about one year.
  Initial estimates indicate that using available
 control technology emissions could be reduced by
 about 75 percent from PVC resin plants and 90
 percent from monomer plants, with a concomitant
 cumulative increase in the cost of PVC resin of
 about four percent. Also, it is estimated that the
 available control technology, which includes a
 variety ot control measures applicable to the
 multiple emission points within the plants, could be
 in place from .within several months to two years
 after promulgation of appropriate regulations.
  With regard to fabrication plants, monitoring of
 the vinyl chloride levels in the ambient air near five
 plants is planned as an early step to determining the  .
 need for an air emission standard.
  I do not plan to list the other  recommendations set
 forth in the Task Force  Report. However, recent
 activities directed to carrying out several of the
 recommendations may be ot interest.
  Studies arc currently in progress to determine the
 amount of vinyl chloride migrating out of PVC
 products used in water distribution systems, such as
 PVC pipe or storage tank liners. In laboratory
 experiments, 3/4 inch PVC pipe simulating
 household installations is being used. Also, water
 samples from a reservoir that had recently installed
 a new PVC liner are being analyzed.
  Another area of immediate concern relates to
 additional research on the environmental fate and
 effects of vinyl chloride. We believe that industry
 has a major responsibility to carry out such research;
however, in view of the newness of this area EPA is
 conducting limited investigations that will help
 point the way as to the most appropriate types of
 studies. Our research laboratory in Duluth,
 Minnesota, has begun acute bioassay studies and will
 soon initiate limited chronic bioassay tests on
 selected aquatic species. Meanwhile, our laboratory
 in Athens, Georgia, will expand its previous work on
 the aquatic fate of vinyl chloride with experiments
 on the uptake and degradation by microorganisms,
 chemical and photochemical transformation, and
 air-water exchange. Finally, research at our
 laboratory at Research Triangle Park, North
 Carolina, centers on photochemical degradation
 products of vinyl chloride.
   Another recommendation called for studies near
 disposal sites of waste products from PVC plants
 and or municipal waste to determine if toxic
 substances are leaching into thc.soil or ground
 waters. The first study will soon  begin.

 INDUSTRY1 S RESPONSIBILITY

   Reducing DischarxeS of Vinyl Chloride
   and Other Toxic Chemicals

   There is no doubt that industry has taken and can
 continue to take a variety of immediate steps at
 relatively little cost to reduce vinyl chloride
 discharges. During the past few months many plants
 have already started to tighten maintenance  and
 operating procedures; other plants are installing
 improved pumps, seals, and disconnect devices;
 while still other plants are introducing more
 significant process changes. One company is
 reportedly spending $3 million to tighten the
 processes at a single PVC facility; another company
 reports that it has 100 engineers working to
 introduce modifications that will dramatical ly cut
 vinyl chloride losses at several plants.

   Medical Surveillance

   Clearly, recent concerns have triggered extensive
 medical surveillance programs of workers
 throughout the industry; these programs should
 become routine to cover  a far broader swath  of
 chemicals and other chemical  complexes. Published
 analyses of the results of such programs would be
 very valuable to Government agencies.
  Fenreline Monitoring for Chemical
  Traditionally, the chemical industry has
conducted very little fcnccline monitoring not
required by federal , state, or local agencies to

-------
determine the chemical discharges leaving plant
property. Clearly, a plant manager should know the
chemical mix of the air emissions drifting over the
plant fence into nearby neighborhoods. Similarly, he
should be fully aware of the chemical cross section
of his liquid and solid waste streams. Thus, a far
more intensive physical monitoring effort on the
part of industry is needed.

   Toxicological Testing

   Until recently, the efforts of U.S. industry to
clarify the chronic toxicity of vinyl chloride were
nearly negligible, despite the commercial
importance of this chemical. The studies to date
have not been adequate, in terms of direction, scope,
or quality. Even the additional toxicological studies
which have been proposed calling for animal
exposures down to I ppm may not be sufficient.

   Tenting for Persistence and
   Environmental Effects                   .

   A related area is industry's responsibility to
clarify the environmental fate and effects of the
chemicals it manufactures, and in this case the
behavior of vinyl chloride in water and air
(including degradation products) and the fate and
effects of products containing PVC in soil and water.
The research by EPA should help structure such
tests, but the primary responsibility rests with
industry.

   Testing for Levels of Unreacted Monomer

   In view of the likelihood that FDA will limit the
levels of unreacted monomer allowed in PVC food
packaging, industry has recently  accelerated efforts
to analyze the levels of vinyl chloride that are
present in PVC resin used for food packaging and in
the packaging itself. This procedure should be
extended toother types of products as well. It is
particularly important that the manufacturers of
resin, who in general are well equipped to carry out
the necessary sampling and analysis; advise their
customers (i.e., the fabricators) of the quality of the
resin in terms of unreacted monomer in addition to
the usual quality criteria. The fabricators in turn
have a responsibility to be aware of the levels of
unreacted monomer that persist in the products that
eventually reach the marketplace.
LESSONS LEARNED FROM THE
VINYL CHLORIDE EXPERIENCE

  Many environmentalists are convinced that the •
problems of vinyl chloride are but the tip of a
chemical iceberg—an iceberg of problems that will
continue to float to the surface during the decades
ahead.
  It certainly appears that except for continuing
concern over spills and accidents, Government and
industry have been rather complacent with regard to
the potential environmental threat from the high
volume industrial chemicals. This complacency is in
large measure attributable to the relative  absence of
visible and uncontrolled dangers from exposure to
the chemicals during their long histories.  In
addition, since each of these chemicals is
manufactured by a  number of companies, firms may
lack incentive to invest individual company
resources to clarify the safety aspects of their usage.
Clearly, the experience with vinyl chloride—the
twenty-second leading chemical in terms of
production—underscores the problems that can
result from such complacency. Despite the
continuing commercial importance of these high
volume chemicals,  it cannot be assumed that
adequate research,  testing, and related safety
measures will be taken by industry, and vigorous
governmental leadership in this area seems essential.
  The experience with vinyl chloride has  triggered a
series of actions within the Federal Government
directed to a broader range of chemicals of
considerable interest to the plastics industry. Let me
touch on just three of these activities:

  —  Interagency efforts in Washington to identify
      problem chemicals used in the plastics
   .   industry have expanded considerably in recent
      months. Beginning with a meeting at
      Pinehurst, North Carolina, in August, there
      have been a number of interagency
     consultations and discussions concerning
     various aspects of the plastics industry. I do
     not know what actions, if any, will result from
     this upsurge of interest.
  —  In accordance with one of the Task Force
     recommendations, EPA is currently reviewing
     governmental regulatory and research
     activities directed to high volume industrial
     chemicals in general. A number of these
                                                   34

-------
     chemicals are clearly of interest to the plastics
     industry. Again no specific actions are being
     contemplated at this time.

  — The World Health Organization has recently
     entered the plastics arena. During a meeting
     earlier this month considerable attention was
     given to the health and environmental aspects
     of plasticizers and flame retardants used in
     plastics and in textiles.

  Also, as most of you know, the fate of the much
needed Toxic Substances Control Act, which has
been delayed in the Congress for three years, will be
decided during the next few weeks,. This legislation
can provide the basis for more concerted efforts by
Government and industry to assess the problems of
toxic chemicals and to take corrective steps, when
needed. The aim is to take these steps early in the life
of a chemical, thus minimizing health and
environmental risks, and also reducing the attendant
economic dislocations.

LOOKING AHEAD

  In the decades ahead, more  chemicals will be in
commerce, the properties of many chemicals will be
better understood, and consequently the list of
chemicals considered to be hazardous  to man and
the environment will undoubtedly be much longer.
Also, improved research and analytical capabilities
will show that the effects of these chemicals—acting
individually and syncrgistically—are much farther
reaching than currently suspected effects.
  In a few years the emission stacks and effluent
pipes will be largely plugged, and hopefully sensible
land disposal of hazardous wastes will be required.
At the same time, however, more people will  be
exposed to more chemicals in more situations—
exposure from contaminants, non-point sources,
direct product contact, and generally unattributable
buildup of chemicals in the environment. I am
confident that society can develop the necessary
precautionary measures that will limit exposure to
chemicals when necessary, but not unnecessarily
curtail commercial activities.
  There is, of course, a danger that society will not
act responsibly in anticipating and remedying toxic
chemical problems through its governmental  and
other institutions, with the inevitable outcome of
endless legal confrontations. The entire approach.to
toxic substances could become bogged down  in the
courts—which would be a tragedy for us all.
  The iceberg is emerging.
  With increasing frequency we are being awakened
to the latent health hazard from chemicals that have
not been adequately tested or analyzed. We are
becoming more and more concerned not only with
the problems of today but with those that will only
be recognized tomorrow. Preventive actions are the
key; corrective actions can only be inadequate and
disruptive.
  We have met the future, and it is now.
                                                   35

-------
    THE TECHNICAL IMPLICATIONS OF
     TOXIC SUBSTANCES LEGISLATION

     Symposium on Toxic Substances Control
         and OSHA/NIOSH Regulations
           Synthetic Organic Chemical
           Manufacturers Association
                Washington, DC
                January 29,1975

LIMITED PROGRESS IN 1974

  To many persons interested in more effective
approaches to the control of toxic substances, 1974
may have seemed like a very eventful year. OSHA,
FDA, and EPA were all very active on the
regulatory front; and the judiciary became more
involved than ever before—addressing asbestos,
mercury, dieldrin, vinyl chloride, and a number of
other chemicals.                  :
  However, in many ways 1974 was a disappointing
year even while the tip of the iceberg of toxic
substances problems continued to break through the
surface of environmental damage on a broad front.
From my perspective relatively little progress was
made toward developing a more systematic
approach for addressing the sources of toxic
substances problems that are appearing with
increasing frequency in the general environment.
Significant additional resources were not
forthcoming from either Government or industry for
more concerted efforts directed to identifying
chemical problems early and to taking preventive
actions before major commercial investments are in
place. And the legislative basis for corrective action
remains fragmented and uncertain.
  Perhaps the most significant development during
1974 was the enactment of legislation designed to
insure the safety of our drinking water supplies. This
wide array of new authorities will undoubtedly have
a major impact on many facets of our society in the
months and years ahead. As the implementation of
this new legislation unfolds, we will become
increasingly aware of the multi-media character of
many of the chemical problems we have tended to
view in a narrow perspective.

CHEMICAL PROBLEMS CONTINUE TO
EMERGE

  During 1974 an array of old and new chemical
contaminants emerged as recognizable near-term
health hazards. Indeed, many of us have now
become so pre-occupied with health hazards that we
frequently tend to neglect the adverse ecological
effects from toxic chemicals. Summarized below are
a few of the recent chemical concerns that prompt
meetings such as this one.

  — Vinyl chloride certainly has focused the
     attention of the entire environmental and
     industrial communities on the need for more
     careful attention to the high volume industrial
     chemicals in general, and plastics in
     particular. The emergence of poly vinyl
     chloride as an environmental concern has
     underscored the presence of previously
     unsuspected problems associated with air
     emissions at manufacturing facilities. Also,
     new concerns have been raised over unrcacted
     monomer contamination of polymers and the
     leaching into the environment of toxic
     additives in plastics during use of disposal of
     plastic products.

  — Trace amounts of a wide variety of
     halogenated organic compounds have been
     discovered in the New Orleans drinking water
     supply, including compounds strongly
     suspected of inducing serious chronic effects.
     These discoveries have raised questions about
     the possible problems resulting from the
     chlorination of waters containing chemical
     wastes which react with chlorine.

  — Arsenic, which is present in many important
     natural ores and is also widely used in
     pesticides, has now been more strongly
     implicated as a possible etiological agent in
     cancer deaths among workers.

  — Release of freon into the atmosphere has been
     cited by some experts as causing
     decomposition of the ozone layer. These
     experts fear that such depletion could  lead to
     an increase in human exposure to ultraviolet
     light and thereby cause an increase in skin
     cancer.

  — Health effects data on sulturic acid mist, which
     has been identified as an indirect by-product
     from catalytic converters, point to the need for
     more caution in this area. More recently, with
     the advent of the energy crisis, concerns have
     also heightened that conversion of power
     plants from oil and gas to coal could further
     aggrevate the problem of sulfates in the air.

  — Discovery of lead in the blood of children
     living near at least one copper smelter raises
     still another set of problems with regard to this
     well known toxic material.
                                                           Preceding page blank

-------
  — Careful scrutiny of previously registered
     pesticides has identified a number of chemical
     compounds that in view of available
     substitutes aeem to pose unnecessary health
     and environmental risks.


CONCEPTS EMBODIED IN THE PROPOSED
TOXIC SUBSTANCES CONTROL ACT

  A primary objective of this Conference is to
discuss the shape and impact of toxic substances
control legislation. Unfortunately, we are still some
distance from knowing the intent of Congress in this
area, and to comment on the details of an uncertain
legislative framework seems a little presumptuous.
Nevertheless, we have given considerable thought to
the "implementability" of different types of
legislative provisions and a few general comments
may be helpful. My comments will be directed
primarily to several of the concepts articulated in
the Conference Committee Working Print that was
prepared late last year, recognizing that the
legislation that eventually emerges may be
significantly different. Another caveat is that I do
not intend to be thorough in this presentation but
rather I will simply mention some of the highlights
of our concerns.

  Reportinx Provisions

  Three intertwined ideas are incorporated into the
Working Print provisions calling for industrial
reporting on the manufacture, use, and by-products
of commercial chemicals, namely:

  (I) An initial inventory report by industry on all
     commercial chemicals to provide a current
     production baseline. This inventory could
     then be used in determining future trends and
     in identifying new chemicals and new uses, as
     well as providing information on current
     activities as specific problems arise.
     Presumably this report inventory would be
     updated periodically—perhaps every five
     years. The intent apparently is to include all
     chemicals, including those produced even in
     the smallest quantities, in the inventory.
     Obviously, we are concerned as to how
     complete this inventory must be to serve its
     purpose, without unnecessarily taxing the
     resources of Government and industry in
     preparing and processing reports. In this
     regard. EPA would have authority to exempt
     manufacturers on a selective basis from
      reporting if the Agency finds that such reports
      are not needed. The House version of the
      Working Prim would also exempt small
      business from this requirement.

   (2) Annual reports to provide continuing
      information on selected chemicals of
      particular concern. These reports would assist
      in determining the need for, character of, and
      impact resulting from specific regulatory
      steps. Such judgments presumably would call
      for aggregated data, and particularly trend
      data, extracted from individual reports.
   (3) Reports on new chemicals. All chemicals
      except those included in the original
      inventory list or explicitly exempted by the
      Administrator from the inventory would be
      considered to be new. EPA would presumably
      have the responsibility of publishing the
      names of trie chemicals  in the baseline
      inventory. A principal purpose of the
      reporting on new chemicals would be to
      insure the currency of the inventory.

   The extent to which the foregoing reports would
be used depends on (a) the Governmental resources
made available to review and analyze the reports,
and (b)  the availability of the reports to
organizations in addition to EPA, which in turn is
heavily  dependent on the amount of confidential
information included in the reports and the
procedures developed for handling confidential
information.                         • •<•..
   I assume that the mechanics of the reporting
system would derive from an appropriate regulation
or set of regulations clarifying some of the,, i
uncertainties in terms such as "mixture" and
"manufacturer", setting up a reporting schedule, and
prescribing a report format. Presumably a,. ,
standardized Governmental reporting forfp, would
further clarify how various uses and by-products are
to be listed along with the appropriate identification
of the chemical. The information would h/e^
presented in such a way as to facilitate ttsggjtry into
an EPA  data system, designed specifically ,tphandle
the reported information, with particular.concern
for the handling of confidential information

   Test Protocols

  The general intent of the test protocol section of
the Working Print seems reasonably straight forward,
at least with regard to existing chemicals. A number
of aspects will probably remain to be elaborated in
regulations, such as the specificity of testing
                                                  38

-------
 requirements, perhaps more refined criteria for
 determining the need for testing, and identification
 of the responsible organizations to carry out testing
 tor specific chemicals. If legislation is enacted, some
 additional guidance may be provided in all of these
,areas although many of the important decisions will
 undoubtedly have to be made on a case-by-case
 basis. It seems clear that test results must be
 standardized to the point that they provide an
 acceptable basis for Governmental decisions but not
 so standardized that sound and innovative industrial
 approaches to testing are inhibited.
   In my view two of our concerns related to test
 requirements are particularly important. Testing
 should be required only in those cases when existing
 test data which are publicly available are not
 sufficient for making judgments concerning
 environmental or health risks. Secondly, to the
 extent possible test requirements under toxic
 substances legislation should be consistent with test
 requirements under other regulatory authorities
 directed to the same chemical classes, in this regard.
 we consider as very important the Pesticides
 Registration Guidelines currently under
 development by EPA.          V
   During the past several years some companies
 have taken major steps to upgrade their testing
 activities—both in scope of coverage and in quality
 of personnel. I hope that with or without new
 legislation this trend will continue and extend to still
 broader segments of industry.

   Prcmiirket Screening

   The concept of a list of selected chemicals and
 chemical classes would delimit the number of
 chemicals or chemical classes which could be subject
 to premarket screening requirements, either for (a)
 reviewing prior to introduction of new chemicals
 into commerce certain types of test data for the
 chemicals, or (b) reviewing in advance proposed
 new uses of existing chemicals. Thus, it seems that
 the list concept is directed principally to (a) newly
 developed chemicals which fall  into particulary
 worrisome chemical classes that should be subjected
 to premarket test  requirements, and (b) those
 existing chemicals which are of such concern that
 any significant new use should be carefully
 scrutinized in advance.
   The area of premarket screening will undoubtedly
 receive additional attention as the legislation is
 further developed, if the list concept is adopted,
 there will certainly be additional debate concerning
 criteria for placing chemicals on the list. However, I
suspect that the version that finally emerges will
continue to be somewhat complicated both in
concept and in detail.
  Two additional aspects of importance related to
premarket screening should also be noted. First,
there may be a requirement for notices in the
Federal Register of Governmental receipt of
industrial reports submitted pursuant to premarket
screening requirements. The concept is to provide an
opportunity for public interest and other groups to
evaluate data before a chemical enters the market or
is subjected to a new use. Given industrial concerns
over the confidentiality aspects of R&D activities,
procedures must be worked out to insure that this
industrial concern is given proper weight while at
the same time the legislative requirement for
publication of premarket information is met. A
second area of interest relates to defining "uses". At
present perhaps the best available means for
defining uses would be a modified version of the
Standard Industrial Code. Hopefully, in the longer
run a better environmentally oriented scheme can be
devised; however, development of an alternative
workable system seems to be a very complicated
task.

  Regulating Hazardous Chemicals

  The  Working Print provides EPA with authority to
regulate selected chemicals of particular concern,
but presents only general guidelines concerning the
criteria to be used in determining when limitations
on chemical activities are appropriate. I am sure that
you share our concern about the more detailed
ground rules beyond broad legislative criteria that
are used in assessing the need for limitations on toxic
substances under this authority and other authorities
as well. It seems important that to the extent
possible, these ground rules be understood in
advance by all interested parties,  and indeed that all
parties have a voice in shaping the ground rules.
  As a step in this direction we have asked the
National Academy of Sciences to  extend its past
studies of the approaches in assessing risks
associated with toxic chemicals in order to help (a)
clarify the best approaches to assessing benefits
gained from society's use of chemicals and (b)
develop techniques for balancing risks and benefits
in the decision-making process. The Academy is now
developing case studies of selected substances whose
uses have been curtailed in the past by Government
or industry, including DDT, polychlorinated
biphenyls, and polybrominated biphenyls, as one
input in determining how we can improve our
                                                    39

-------
 decision-making process. In several weeks a one-
 week working session involving representatives of
 Government, industry, labor, and public interest
 groups will be held by the Academy to develop
 specific recommendations concerning decision*
 making directed to toxic chemicals.

 PROSPECTS FOR 1975

  There seems to be little question that the number
of problem chemicals of immediate concern will
continue to grow during this year. More careful
scrutiny by the plastics industry of its products will
continue to identify particularly worrisome
compounds, with polybrominated biphenyls,
vinylidene chloride, acrylonitrile, and styrene
already under investigation. The testing programs at
the National Cancer Institute and other Government
facilities will continue to identify important
industrial chemicals, such as ethylenc dibromide,
which cause tumprs in animals. As pur monitoring
efforts continue to expand, and particularly with the
new thrust directed to drinking water, additional
chemicals of concern will surely be identified
throughout the country. In additional new problems
will develop in unlikely places.
  OSH A, FDA, and EPA will continue to take a
variety of actions under existing regulatory
authorities. All of these agencies are becoming
increasingly  sensitive to the important linkages
among many of the regulatory standards in food and
in the workplace and standards for the same
chemicals in the general environment. We need to
increase our efforts to improve the multi-agency
approach to toxic substances problems.

  With regard to EPA activities I am hopeful that
Taster progress can be made in the development of
sound toxic effluent standards and refinement of
Effluent Guidelines under the Federal Water
Pollution Control Act. Our review of pesticides will
continue to identify active and inert ingredients that
require more stringent control. Meanwhile, the
preparation and promulgation of pesticides
regulations and guidelines will have a direct impact
on the approaches of industry to toxicological
testing. And, of course, further development of new
source performance standards under the Clean Air
Act will continue. These are but a few examples of
EPA efforts which will continue to impact on the
synthetic organics industry.

  I am far less certain of legislative action during
this new session of Congress. For four years there has
been debate on the character of a Toxic Substances
Control Act. I believe that there has been adequate
debate, and now is the time for decisive action.
Surely, the Congress will also be reviewing other
regulatory authorities, as well, with a particular eye
to the interaction of economic, energy, and
environmental considerations.
                                                   40

-------
 CHEMICALS. REGULATIONS. AND THE
             ENVIRONMENT

  Annual Meeting of the Soap and Detergent
                 Association
            Boca Raton, Floridq
              January 30. 197S

 TOXIC CHEMICALS AND THE SOAP AND
 DETERGENT INDUSTRY

   Extrapolation of effects from animals to man.
 Carcinogens, teratogens. and hiutagens. Persistence,
 hioaccumulation.and degradation products. Rule
 making, hearings, and judiciatory processes. Action
 levels, tolerances, and interim standards. This
 jargon, characterizing the toxic substances trade, is
 rapidly becoming almost second nature to many of
 our industries through long and continuing
 involvement in the regulatory processes of
 Government. I suspect that there are few twists or
 turns in the regulatory obstacle course in
 Washington that a number of your companies have
 not encountered many times over.
   To many of you the appearance of an EPA speaker
 on your program probably signals another revival of
 Governmental interest in phosphates or NTA.
 However, now that I have covered those lopics, my
 further comments will be directed to somewhat
 broader aspects of our toxic substances concerns.
   There is no doubt that in the years ahead your
 industry will he deeply immersed in coping with the
 ever expanding regulatory activities shaped by
 Congress and State legislatures, and carried out by
 Federal. State, and local agencies. Given the uses
 and eventual disposal of your products—in the
 household, by commercial service organizations.
 and by many sectors of industry—there will continue
 to be many opportunities for widespread exposure of
 man and the environment to the chemicals which
 you produce. The general concern over both  the
 known and the unknown effects of these chemicals
 and over the interaction of these chemicals with
 other  materials in the environment points to
continuing scrutiny of your activities by
Government, environmentalists, and the general
public. Indeed, the public expects a greater degree of
safety and environmental consciousness from your
industry lhan from many other manufacturers of
industrial and commercial chemicals.
   I am hopeful that the soap and detergent industry
will, in many respects, stay ahead of the often
cumbersome Governmental machinery designed to
protect our environment. By developing its own
programs of responsible limitations on the use of
toxic chemicals, industry frequently can reduce the
need for overly extensive Governmental
intervention into commercial activities which too
often is painful for all concerned.

A GENERAL PERSPECTIVE

  Direction of our Environmental Concerns

  In his Environmental Message of December 1974,
the President underscored the "maturity" of our
environmental commitment—a maturity that is
critical to responsible integration of our economic.
energy, and environmental objectives. This maturity
must be reflected in the restraint shown by industry
when considering the desirability of developing and
using products which may have questionable health
or environmental impacts. Similarly.
environmentalists must exhibit moderation in the
long overdue efforts to enhance the quality of the
environment, efforts which frequently curtail
commercial activities that are important
contributors to economic growth.
  With specific regard to the development and
manufacture of chemicals, it is essential to adopt the
President's call to reject the extremes  and to accept
the need for balancing environmental, economic.
and energy concerns. Almost 15 percent of our
industrial base is involved in introducing chemical
changes into its products; a significant share of our
energy resources is used as feed stock  and as a
source of power for this segment ot industry; while at
the same time many of the products and by-products
of the chemical industry are discharged into the
environment.
                                      »
  For many years, the primary emphasis of our
environmental efforts has been to control what
might be called gross pollution effects, including
chemical oxygen demand, biological oxygen
demand, and suspended solids in water effluents and
SOX, N(>x, and paniculate in air emissions. While
these efforts are of course continuing, there is now
rapidly increasing attention being given to a number
of toxic chemicals. This is not surprising in view of
the growing list of recent environmental problems
that have arisen throughout the country as the result
of the presence of toxic chemicals, such as mercury,
polychlorinatcd biphenyls, asbestos, arsenic, vinyl
chloride, and more recently, organo-halogens in
drinking water supplies.
                                                  41

-------
  Industrial Efforts to Reduce Environmental
  Problems

  In recent years, many segments of industry have
made very significant investments to control the
discharge of effluents and emissions into the
environment. These steps have heen taken in large
measure in response to Governmental requirements
at the Federal. State, and local levels. There seems
to be little doubt that such actions have had «
dramatic effect in slowing the rate of degradation of
our environment. However, all will agree that we
still have a long way to go in cleaning up our air and
water and in preserving our landscape.
  Similarly, industry has over the years expanded its
efforts to insure the safety of its chemical products—
safety as viewed from the perspective of the worker,
of the housewife, and  of the general population.
Such efforts have been spurred to a great extent by
Governmental regulations, in some cases by the
latent threat of lawsuits, and at times simply by good
business practices. For many years, direct acute
effects of chemicals have, of course, been of major  •
concern; and more recently, complementary efforts
have been directed to the longer term and more
subtle health and ecological effects.
  In vinie cases, industry has gone far beyond the
requirements laid down by Government for
pollution control levels to be achieved and for safety
requirements. For example, one major chemical
company has adopted the near term goal that all new
plants be designed to achieve  zero discharge with
regard to process liquid waste effluents. Some
companies have significantly expanded their staffs of
toxicologists to address health problems beyond
those of immediate interest in Government
regulations. Other companies are conducting
ecological effects tests on chemicals which by
regulation arc only required to be tested for their
health effects. However, our general impression is
that most companies arc not moving much faster on
the environmental front than the rate at which they
are required by legally enforceable regulations.

  Regulatory Framework

  There are several regulatory authorities designed
to limit the entry into the environment of toxic
chemicals. For example, in the Clean Air Act and
the Federal Water Pollution Control Act there are
specific provisions directed to toxic and hazardous
contaminants, and the pesticides laws are designed
to prevent unnecessary environmental
contamination from pesticides. While the laws
 administered by FDA, CFSC, an.d OSH A are not
 intended to protect the general environment, they
 do, of course, have some impact in this regard.
   These and other regulatory authorities have
 required  an ever increasing RAD commitment by
 industry. This trend will surely continue. I need  not
 ilcxcribi* for you the impact of such requirements on
 (he competitive positions of large and smal I
 companies, on the willingness of companies to risk
 investment in new products and facilities, and on the
 eventual  appearance of new products in the
 marketplace.
   As the  Governmental structures for regulating the
 activities of the chemical industry continue to grow,
 I would hope that there will be a greater
 sophistication in our approach to regulation. This
 sophistication should enable both industry and
 Government to  know in advance the ground rules
 for judging the acceptability of products—ground
 rules which will not  be constantly changing. Of
 particular importance in this regard is a more
 consistent approach among Governmental agencies
 and particularly agencies promulgating regulations
 directed to the same chemical classes. The
 relationships between workplace standards, levels of
 food contaminants, and effluent and emission
 standards, for example—all directed at the same
 chemicals—need to be more clearly recognized than
 ever before.

   Trends in the Development of Chemicals

   During (he next decade, many more chemicals
 will be in commerce. At the same time the properties
 ol chemicals—both old and new—will be better
 understood. Consequently, the list of chemicals
 considered hazardous to man and the environment
 will undoubtedly be much longer. Also, improved
 research and analytical capabilities will show that
 the effects of these chemicals—acting individually
 and syncrgistically—are much farther reaching than
 currently recognized effects.
   In many branches of the chemical industry,
'including your activities, research will continue to
 illuminate opportunities for use of substitute
 products. I am sure that increasing agricultural
 pressures for phosphates, for example, make you
 keenly aware of the importance of such efforts. In
 this regard a continuing search for less hazardous
 substitute products should become a hallmark of
 your research, recognizing that in the short run such
 substitutes may be more expensive and less
 profitable. However, in  the longer term the
 introduction of such substitutes may well be less
                                                 42

-------
expensive to all concerned than the introduction and
subsequent withdrawal of cheaper products with
questionable health or environmental risks.
   From the toxic substance point of view the quality
of life in the Chemical Age of the Eighties, depends,
in large measure, on the outcome of the competition
between economic growth on the one hand and the
sophistication in approaches to responsible
regulation—by both industry and Government.
Clearly, more people will be exposed to more
chemicals in more situations. Hopefully, we can
develop the necessary precautionary measures that
will limit exposure to chemicals when necessary, but
not unnecessarily curtail commercial activities.

THE NEED FOR TOXIC SUBSTANCES
LEGISLATION

   Beginning in  1971, the Administration and
Congress have attempted to gain enactment of the
Toxic Substances Control Act. and it seems almost
certain that these efforts will be revived within this
Congress. This legislation has often been described
as "front-end" legislation designed to prevent
problems rather than simply providing a reaction
after chemical contaminants have caused severe
environmental or health damage. Also, preventive
action early in the life of a chemical could minimize
the economic disruptions attendant to corrective
actions. Another welcome aspect of this  legislation is
its explicit call for a more deliberate balancing of
risks and benefits prior to Governmental regulatory
intervention in commercial activities. Finally, the
legislation provides the basis for assessment of the
entire life cycle of problem chemicals in determining
how best to ameliorate the problems. Too often
under existing legislative authority, we focus on the
manifestation of the problem which is rcgulatablc
under existing authorities rather than on those
aspects that are at the root of the problem.
  The proposed legislation would give EPA new
authority for (a) information acquisition on
commercial chemicals, and (b) regulatory actions on
chemicals not now subject to regulation under other
authorities. EPA could require testing of chemicals
which are suspected to pose unreasonable risks and
also require other information from manufacturers
including the name of the substance, chemical
formula, amounts produced, uses, and known by-
products. Confidential information would, of
course, be respected. When shown to be necessary,
and only then, EPA could restrict the use and
distribution of chemicals that pose unreasonable
risks.
  While the final version of the legislation may
influence the choice of the initial EPA activities in
carrying out the provisions of the law, it seems clear
that the following areas should be high on the
agenda for early attention:

  — Elaboration and articulation of the criteria or
     sett of criteria to be used in weighing risks
     versus benefits, and in determining when
     regulatory action is needed. Clear
     understanding by both industry and
     Government of the ground rules for
     restrictions seems essential.

  — Determination of the character and scope of
     initial testing requirements and identification
     of specific chemicals or classes of chemicals of
     particular immediate concern. While the
     selection of substances to be covered by the
     standards for test protocols that are initially
     promulgated will in  large measure reflect
     near-term judgments of experts concerning
     likely hazards and inadequacy of current data,
     concurrent work is needed to provide a better
     basis over the longer term for selecting areas of
     concern.

  — Development of regulations setting forth
     timing, coverage, content, and format of the
     reporting requirements for chemical
     manufacturers and processors, including both
     annual reporting and premarket notification.

  — Establishment of a data system for handling
     the industrial reports and test results that are
     submitted. Experience in the pesticide area.
     for example, underscores the importance of
     early attention to establishing efficient and
     decision oriented procedures if large numbers
     of reports are to be useful in assessing
     problems in a systematic fashion.

  While we are uncertain  as to the precise course of
Congressional action concerning this legislation, we
anticipate that toxic substances bills will be
reintroduced in both the House and the Senate
within the next few weeks. I suspect that they will he
generally along the linesof the Conference
Committee  Working Print which was prepared in
December in an effort to bring closer together
differing Senate and House positions in several key
areas. However, additional modifications will
undoubtedly be incorporated by each chamber.
Presumably another round of hearings will be held
during the spring, and it will not be surprising if the
                                                   43

-------
 legislation is ugain referred to ;i Conference
 Committee by summer.
   Our understanding is that both enviromticntiil and
 labor groups will he pressing vigorously for early
 enactment of legislation. These groups have definite
 views as to some of the provisions of such legislation.
 With regard 10 industry you are in a better position
 than urn I to predict the position that will be taken by
 different segments of industry.
   While the Administration has been clearly on
 record as strongly supporting this type of legislation
 in the past, the current position on the legislation is
 still being formulated.

 RECENT ENACTMENTOF DRINKING
 WATER LEGISLATION

   Towards the end of the. last Congress, the Safe
 Drinking Water Act was passed providing EPA with
 authority to conduct a wide swathe of activities
 ranging from standard setting, to monitoring and
 research, to assessing availability of water treatment
 chemicals, to training and technical assistance.
 Drinking water is one possible resting place for some
 of the chemicals which are of interest to your
 industry. Also, each of us consumes about two liters
 of water each day. Therefore, continents on the toxic
 substances aspects of this new authority may be of
 interest. I will touch only on a few aspects of the new
 law. and specifically on those aspects for which my
 Office has some responsibility.
   You will recall the reports of last fall concerning
 suspected carcinogens in drinking water supplies in
 several cities, and particularly organics in the New
 Orleans water supply. These reports were the
 principal force in triggering the somewhat
 unexpected Congressional action. Indeed a specific
 provision was incorporated into the law calling on
 EPA to take steps to clarify and reduce the risks
 associated with carcinogens in drinking water. This
 requirement has led to a series of actions designed to
 respond to this public health concern. An extensive
program of monitoring a number of water supplies
 throughout the country is underway. Analyses of the
health effects of known contaminants in drinking
water are being expanded. Investigations of the
feasibility and costs of removing contaminants from
water supplies are being accelerated. Obviously.
these types of activities have been.carried out in the
past. However, the current efforts are broader and
more ambitious than ever before.
  New efforts arc underway to clarify the source of
the drinking water contaminants. In many cases, the
sources are industrial discharge; sometimes the
contaminants may be traceable to pesticides or
fertilizer runoff; and in other cases natural
background levels may be responsible. Correlating
specific sources of chemical discharges into the
environment with contaminants found in specific
water supplies is not easy, however. This task is
further complicated when.the quantities of (he
chemicals are very small.
  Perhaps the key element of the new legislation is
the determination of the  levels of contamination in
drinking water which arc acceptable for specific
chemical pollutants. This determination is to be
made on the basis of both public health
considerations and technical  and economic
feasibility. Within the next two months EPA is
scheduled to propose interim standards for about 30
contaminants with revised  standards scheduled for
promulgation in about two years. It seems likely that
the revisions will include more chemicals, including
at least some of the organics which arc of particular
immediate concern.
  In very simplistic terms, there would seem to be
two alternatives in reducing contaminant levels
which exceed prescribed standards: applying control
technologies at the water supply (e.g. filtration.
coagulation)or reducing the  source of the
contaminant (e.g. at the effluent pipe, during field
applications). In either case there will be costs
involved, and hard decisions must be made as to the
most appropriate distributions of these costs.

TESTING AS A KLY TO BETTER
UNDERSTANDING

  In all of these areas—in all of our regulatory
decisions—we are faced  with uncertainties. The
health data are usually soft; the data on persistence
sparse; and the data on ecological effects almost nil.
Yet actions must be taken. We cannot afford to
allow our environment to become a testing
laboratory, nor our general population the test
species. At the same time no one advocates that the
absence of data indicates that a chemical is
environmentally acceptable.
  Thus, in my view, a key to responsible decision-
making is better information  on chemicals under test
conditions simulating, to the  extent possible, the
types of exposure encountered in the general
environment. And it is industry that has the
responsibility to insure that such testing is conducted
on the products it sells. And it.is the responsibility of
Government to insure that industry is fully aware of
the type and extent of testing  that will  he considered
adequate in the regulatory process.
                                                   44

-------
  Indeed, improved information—and particularly
lest information—as an essential ingredient for
responsible decision-making is the heart of the Toxic
Substances Control Act. With such legislation on the
books many of the currently disruptive uncertainties
over Governmental and industrial responsibilities
will be clarified. There will be a real opportunity for
productive efforts to jointly insure the enhancement
of our environment while promoting the continued
viability of the chemical industry.

  Whether we be concerned with detergent builders
or optical brighteners, with borax or higher
bcnzenepolycarboxylates, we must consider both the
commercial benetits from our.activities and the
necessity for environmental safeguards. We all know
that (he balancing of costs, risks, and benefits is not
unique to the chemical industry; indeed it is the
essence of many of our daily activities as we drive
our car to the corner drugstore for a carton of
cigarettes. However, when the beneficiary of an
activity is different from the person exposed to the
risk, we can no longer be casual in balancing costs,
risks, and benefits. Thus, a more deliberate
approach to societal decisions is the challenge of the
years ahead.
                                                    45

-------
    TOXIC CHEMICALS AND REGULATORY
              DECISION MAKING
      PHILOSOPHY AND PRACTICALITY

            Conference on Principles of
          Decision Making tor Regulating
           Chemicals in the Environment
           National Academy of Sciences
              New Orleans, Louisiana
                February 18, 1975

 THE GENERAL FRAMEWORK
f
   Integration of economic, energy, and
' environmental concerns. The need to avoid the
 extremes and to exhibit moderation in applying
 environmental controls. Balancing costs, risks, and
 benefits. Maintaining environmental objectives
 while adjusting the short-term timetables to
 accommodate economic problems. The inevitability
 of some level of risk in everything  we do.
   This rhetoric, characterizing the current climate
 surrounding the environmental movement, appears
 appealing and easy to grasp. But what does it really
 mean as we address specific regulatory actions
 directed to toxic chemicals?
   On a macro scale, we sometimes feel we are able
 to express the dollar costsof environmental control
 measures, with some confidence in our estimates.
 Recently, drawing on the practices of the
 statisticians, we have begun to manipulate health
 effects data in order to quantify the level of risk and
 the size of the population at risk. At the micro level,
 it often seems still easier to estimate the impact of
 regulatory actions, answering such questions as:
 What will a specific pollution control device cost in
 a specific plant? What will the resultant contaminant
 levels be in the stream or in the drinking water? Is
 this level below a "no effects" level?
   However, in my view the aggregation of micro
 impacts is far more complicated than summing up
 the parts. For example, a risk  factor of I/! ,000,000
 appears different when viewed from the perspective
 of the I than from the perspective of the other
 999,999.  Also the cumulative effect of regulatory
 actions, together with the uncertainty of future
 actions, has a dramatic effect on the whole climate of
 doing business. Many aspects  of this effect are
 difficult to identify, let alone quantify. Second
 guessing the current and future attitudes of
 regulatory agencies is becoming a way of life within
 many chemical companies as they reach decisions on
 the amount of resources to devote to R&D, the level
 of investments in introducing  new  products or
continuing old products in the face ol evidence
suggesting possible environmental problems, and the
pollution abatement conservatism to be built into
the design of new plants.

TRENDS IN REGULATORY DECISION
MAKING

   The legislative history of toxic substances
regulation is punctuated with inconsistencies as to
the weight to be given costs, risks, and benefits in
decision making. The most recent addition to the
annals of environmental law, the Safe Drinking
Water Act, addresses directly the perennial question
of the weight to be given to public health
considerations in determining enforceable
contaminant levels. This law calls for both (a) health
based contaminant levels—or health goals—and
(b) enforceable contaminant levels which explicitly
take into account technological feasibility und
reasonableness. Similarly, the many versions of the
proposed Toxic Substances Control Act have
consistently highlighted the need to weigh all
relevant factors including economic and
technological considerations in reaching regulatory
decisions. As you know, this philosophy is not
expressed with similar clarity in certain sections of
the Clean Air Act and the Federal Water Pollution
Control Act.
   Meanwhile, we are increasingly requiring more
broadly based assessments of the impact of
regulatory decisions—environmental assessments,
economic assessments, and recently inflationary
assessments. Usually the procedure is to postulate a
numerical standard for a toxic chemical or a specific
type of limitation on the use of the chemical, with the
restriction designed to reduce environmental levels
to the point that concerns over health or
environmental damage disappear. Then an
assessment is carried out to see if the favorable
environmental impact from the  restriction warrants
the concommitant economic costs. If the costs are
too high, the level of control is adjusted until  an
appropriate balance is reached.  Unfortunately, to
date  this balancing  act has been  ad hoc at best, while
at the same time our new authorities are calling for
more systematic approaches to such balancing. As
the judiciary becomes more deeply involved in toxic
substances, it seems essential that these approaches
must improve both  in form and in substance if
regulations are to be sustained by the courts.
   In  our zeal to balance risks and benefits in some
quantitative way, we frequently try to place numbers
on the risks associated with very uncertain health
                                                   47
      Preceding page blank

-------
data. More often than not, in the quantification
process we drop the margins of error from our
deliberations. This has been particularly true in the
carcinogen area. Largely as a result of the work of
statisticians beginning ten or more years ago, there
arc now techniques for estimating risk factors.
However, too often the lawyers and economists seize
upon these numerical risk factors, frequently
forgetting that these experimentally derived
estimates may in fact have a very shaky relevance to
the real world.

NEEDS OF REGULATORY DECISION
MAKING IN THE NEAR FUTURE             t

  Clearly, our goal is to improve the decision-
making process, a process that is usually plagued
with insufficient time and with unbelievably soft
data. Nevertheless, decisions must be made,
decisionsthat hopefully will be both sensible and
defensible. We need to better use existing data—to
better assemble what we have, to see more clearly
what we don't have, to make reasonable
extrapolations across the data gaps, and then to
make judgments which best reflect the interests of
society. If legal constraints inhibit judgments which
best serve society, we should seek changes in the law.
  We need to belter orient our data collection and
manipulation activities so that the information is
arrayed in a way in which it is more relevant to
decision making. I need not describe for you the
difficulties in trying to derive the roots for
numerical standards on the basis of a toxicological
experiment which was designed to expand the state-
of-the-art of toxicology. And, finally we need to be
able to better integrate data concerning a variety of
considerations—health, persistence, control
technology, economic dislocations. Is it possible to
move away from the past efforts of comparing apples
with oranges—away from the fruit salad approach
towards a truly blended regulatory punch?

THE SCOPE OF THIS MEETING

  Jhis meeting is directed principally to advancing
the state-of-the-art in reaching regulatory decisions
on toxic chemicals which for one reason or another
have already been identified as highly suspect in
causing serious environmental or health problems.
The suspicion may have arisen from recent
epidemiological findings, toxicological experiments,
or monitoring data, or it may reflect an '
accumulation of scientific or public concerns not
necessarily tied to recent revelations. It may have
resulted from deliberate efforts to search out   <
     problem chemicals. In any event, given a problem
     chemical, how can we more effectively decide
     whether regulatory action is in order, and if it is,
     how tight or how loose the regulation should be? We
     are particularly concerned with decision making
     which must be carried out in the near term in the
     absence of what purists—or perhaps even reasonable
     men—would call adequate time or data. There is
     really no option to delay the decision until better
     data are available. This does not mean that the
     interim decision is necessarily the final decision; and
     indeed, I have not been involved in a single
     regulatory decision of any significance that has not
     included as part of the package the requirement to
     collect better data so that the decision can be
     reviewed and perhaps improved at a later date.
       There are several concerns closely related to the
     regulatory decision which are not a principal focus
     of this meeting although it is recognized that you
     cannot totally neglect these aspects. One area of
     considerable importance which is being explored in
     a variety of other forums concerns methods for
     selecting from the world of chemicals those
     chemicals or chemical activities which require
     priority regulatory attention. A second area
     receiving considerable attention within EPA is the
     selection of the most appropriate legal authority for
     reducing identified problems. For example, what are
     the respective roles of Effluent Guidelines and
     Toxic Effluent Standards under FWPCA; when are
     New Source Performance Standards more
     appropriate than Hazardous Pollutant Standards
     under the Clean Air Act; and which sections of the
     Pesticide laws can most appropriately be invoked to
     curtail certain problems? A third important aspect
     relates to the generation of test data, a topic which
     has already been explored in some detail by the
     Academy.
       At this session we would like to emphasize the
     problems of decision making with less than optimal
     data. A secondary interest, of course, relates to the
     shaping of data collection activities, particularly in
     those instances when there is sufficient time to
     improve the data base before a regulatory decision  is
     necessary.
       In general, we are concerned with two types of
     regulations: firstly, product limitations where the
     manufacturing, use, distribution, or disposal of a
     chemical is regulated such as in the case of pesticides
     or chemicals under the Toxic Substances Control
     Act; and secondly, the determination of the
     acceptable levels for pollutants—expressed as
     numerical standards or as a control technology
     requirement—such as in the case of hazardous air
     emissions, toxic water effluents, drinking water
48

-------
 contaminant levels, pesticides tolerances, and the
 like. Further complicating the task is our special
 interest in multimedia contaminants.

 EXAMPLES OF PRACTICAL REGULATORY
 PROBLEMS
   Let me cite three regulatory areas which
 exemplify the types of concerns that this Conference
 might address. During the next several years, EPA
 will be involved in a variety of decisions in all of
 these areas. There are, of course, other areas as well,
 and particularly pesticides and air emissions
 problems, which my colleagues can address.

   Regulatory Actions under the Toxic Substances
   Control Act

   The proposed Toxic Substances Control Act
 would give EPA the authority to prevent or limit
 production, distribution, or use of selected
 chemicals or require that they be labeled with
 instructions concerning use or disposal. The most
 recent versions of the law require that in reaching
 regulatory decisions the Administrator consider:

   — The effects of the substance on health and the
      magnitude of human exposure,

   — The effects of the substances on the
      environment and the magnitude of
      environmental exposure, and

   — The benefits of the substance for various uses
      and availability of less hazardous substances.

•After considering these factors he could impose
 regulatory action if he determines that there is an
 "unreasonable risk" to health or the environment.
   The purpose of this session is not to try to
 determine what is an unreasonable risk since that
 judgment must be made on a case-by-case basis.
 However, we are hopeful that you can assist in
 further clarifying the factors that should be weighed
 in reaching such a judgment and in setting the
 ground rules for arraying data in a way that the
 judgment will be as fully informed as possible.
 Again, it is important to keep in mind that the data
 which will be arrayed will inevitably be far from
 complete.
   As one point of departure in our internal efforts to
 assemble data in an orderly fashion for determining
 the need for regulations under this proposed law, we
 have identified the following five steps:
      Assessment of the effect of various levels of
      exposure of a chemical or its derivatives on
      man or the environment;
      Assessment of the likely levels of exposure
      through material balance analyses;
      Confirmation by monitoring ot actual
      exposure levels;
      Determination of the likely  reduction in
      exposure levels and attendant effects through
      alternative regulatory actions; and
      Assessment of the economic and social costs of
      the alternative actions.
Under each of these categories we are attempting to
develop checklists of items to be considered. I am
sure that these data categories can be improved, but
perhaps of equal importance is how the data from
these categories arc to be meshed.
  National Primary Drinking Water
  In about two years EPA will propose revised
National Primary Drinking Water Regulations for
contaminants in drinking water, including probably
several dozen chemicals. These regulations must
take irito account both public health considerations
and feasibility of attainment. Thus, it seems
necessary to consider (a) health effects at various
contaminant levels, (b) monitoring data showing the
current and projected range of contamination in
water supplies, (c) costs involved in reducing high
levels to lower levels at the water supply,
(d) feasibility and costs of monitoring low levels,
(e) sources of the contaminants, and (f) costs of
reducing these sources as an alternative approach to
cleaning up the water after it is contaminated. The
problem i)f data collection and analysis is
particularly complicated since a single standard will
apply to 40,000 water supplies of all si/.esand
character. Short term variances will help with some
of the extreme cases. However, the need for reliable
statistical sampling will nevertheless be u
complicating factor. The problem as  I see it is at
least twofold: collecting and displaying the data in
these categories in a meaningful way, and integrating
the data in a way which will enhance the soundness
in reaching judgments as to required levels. Again I
would add that much of the data may be soft and not
susceptible to easy quantification.
                                                   49

-------
   Toxic Effluents that Cause Health Problems

   We are currently involved in a major effort to
determine which chemicals currently being
discharged into our waterways constitute a health
hazard. One starting point is an examination of
monitoring information from drinking water
supplies, fish products, and recreational areas
concerning the presence of chemicals, and isolating
those chemicals that are (a) suspected to have
adverse health effects at relatively low levels.
(b) discharged by industrial facilities, and
(c) sufficiently persistent to reach man via the
recreational, drinking water, or food routes.
   It is not too difficult to identify a few such
chemicals; however, it is far more difficult to
determine whether effluent controls on these
chemicals are warranted and if so, the degree of
control that is appropriate. The chemicals will
probably usually be present in trace amounts, and
the health hazards from these trace amounts, even
for carcinogens, are far from clear. The incremental
decrease in the trace amounts, and the attendant
health implications, which will be achieved by
turning off or reducing selected sources is similarly
not clear, particularly  if industrial dischargers are
not the only source of contaminants. Finally,
whether the control costs are warranted by the
incremental health gain is also far from straight
tor ward. We anticipate that we will be grappling
with this problem for several years, and advice and
suggestions on appropriate methodologies would be
very welcome.

THE OUT PUT FROM THIS CONFERENCE

   What can be realistically accomplished during the
next several days and during the report writing that
will continue for several months?
   Perhaps most importantly, a greater sensitivity to
the multiplicity of societal interests bearing on
regulatory decision making will emerge—certainly
among the participants and hopefully among the
recipients of the report. This sensitivity should in
turn lead to a higher level of sophistication in our
decision making.
   General principles which can serve as guideposts
in the field of chemical regulation would be
welcomed by all participants in the regulatory
process—the regulator, the regulatee, and the
adjudicator. Such principles are particularly timely .
as the influx of new people into this field continues
to grow. The scope, general appreciability, and
specificity of these guideposts are of course the crux
of the deliberations during the next several days.
  With the benefit of hindsight, we should be able to
identify common shortcomings in past decisions
which an improved methodology can overcome.
And surely as we consider the types of decisions
ahead, specific ideas and suggestions will
undoubtedly emerge.
  Finally, we are searching for practical suggestions
as to how we can significantly improve our data base
for decision making without "breaking the bank."
THE CONTROL OF TOXIC SUBSTANCES IN
THE YEARSAHEAD

  From (he toxic substance point of view the quality
of life in the chemical age of the Eighties depends, in
large measure, on the outcome of the competition
between economic growth on the one hand and the
sophistication in approaches to responsible
regulation—by both industry and Government.
Clearly, more people will be exposed to more
chemicals in more situations. Hopefully, we can
develop the necessary precautionary measures that
will limit exposure to chemicals when necessary, but
not unnecessarily curtail commercial activities.
  There is, of course, a danger that society will not
act responsibly toward toxic substances through its
Government and other institutions, with the
inevitable outcome of endless legal confrontations.
The entire approach to toxic substances could
become bogged down in the courts. To avoid such a
situation, the  highest quality of Governmental
leadership in  this area seems essential—leadership
characterized by technical credibility and openness
in dealing with controversial data. You have a
genuine opportunity to help stimulate such
leadership.
  We all know that the balancing of costs, risks, and
benefits is not unique to the control of chemicals;
indeed, it is the essence of many of our daily
activities as we drive our car to the corner drugstore
for a carton of cigarettes. However, when the
beneficiary of an activity is different from the person
exposed to the risk, we can no longer be casual in
balancing costs, risks, and benefits. Thus, a more
deliberate approach' to societal decisions is the
challenge of the years ahead.
                                                   50

-------
          CURRENTTRENDS IN THE
          CONTROL OF7 CHEMICALS

      Conference on Environmental Aspects
               of Chemical Use in
          Rubber Processing Operations
                  Akron, Ohio
                March 12, 1975

THE RAPID GROWTH OF CHEMICAL
PROBLEMS

  During the last several years the number and
frequency of harmful incidents involving toxic
chemicals have increased dramatically. Hardly a
week goes by without a new chemical emerging as an
immediate health or environmental problem, and
the public outcry over carcinogenesis and other
chronic effects of exposure to chemicals seems to
have literally exploded.
  All levels of Government are taking steps in
response to the demands for action to clarify and
reduce the risks attendant to chemical exposure. No
longer arc pollution problems viewed simply in
terms of asthetics, inconveniences, or ecological
degradation; but they are now tied more closely than
ever before to very personal human health concerns.
No longer are the long drawn-out timetables
acceptable for corrective steps with regard to toxic
chemicals. No longer will the public accept the
philosophy that chemicals must be assumed safe
until proven hazardous. No longer are latent
problems, such as the mutagenic effects of chemicals
that may appear only in future generations, to be
ignored. No longer arc chemicals the unique concern
of only the manufacturers, the distributors, and their
employees, for the Chemical Age of the Seventies
has engulfed our entire society.
  I need not review for this audience the unsettling
chain of events triggered by the linkages established
last year between cancer of the liver and exposure to
vinyl chloride. Many of the companies represented
here have been deeply involved from the outset of
this very tragic development, a development rooted
in the environmental complacency of the industry
during the forties, the fifties, and the sixties. We
have all become painfully aware of the difficulties in
assessing the risks associated with very low levels of
exposure to this chemical and in taking corrective
actions to reduce these risks. I am sure that all agree
that we can and must do better in the future in
preventing these types of tragedies—and
particularly in identifying and assessing problems
before the fact rather than after the damage is done.
   Already tens of thousands of chemicals arc in
 commerce, and the number is increasing every year.
 Little attention has been given to the environmental
 properties of many of these chemicals. Constantly
 evolving research and analytical techniques arc
 revealing that the potential effects of many others
 are much farther reaching than previously
 suspected. In short, during the years ahead all of us
 will be exposed to many more chemicals in many
 more situations, and the list of chemicals known or
 believed to pose a threat to man or the environment
 will be greatly expanded.
   Our market forces are not designed to insure
 environmental equity, and the risks and benefits
 associated with chemicals are not evenly distributed
 throughout our society. The archaic concept of
 voluntary exposure to chemicals'—that we have a
 choice as to whether we want to come into contact
 with chemicals—has been replaced with the hard
 reality that in fact the individual citizen has little
 control over the chemicals to which he is exposed.
 Thus, Governmental involvement in the chemical
 arena will undoubtedly increase to keep pace with
 the growing chemical burden in the environment.
 THE DEVELOPMENT OFTHE LEGISLATIVE
 BASIS FOR CONTROLLING TOXIC
 CHEMICALS

   For many years the Federal Government has hecn
 deeply involved in chemical regulation through the
 activities of the Food & Drug Administration, and
 more recently in controlling pesticide use. The
 Clean Air Act and the Federal Water Pollution
 Control Act have special provisions directed la toxic
 and hazardous chemicals in addition to their
 broader provisions which also encompass chemical
 pollutants. Indeed, these activities have to a large
 extent established the framework for the current
 spread of programs throughout the industry directed
 to product safety and environmental control.
   During the past several years the Department of
 Transportation, the Occupational Safety and Health
 Administration (OSHA)of the Department of
 Labor, and the Consumer Product Safety
. Commission have significantly expanded their
 efforts directed to toxic chemicals. Of particular
 interest to EPA and OSH A is the close
 interrelationship between concerns over chemicals
 in the workplace and the possible discharges of these
 same chemicals directly Or indirectly into  .
 neighborhoods near industrial facilities as the result
 of air emissions or liquid effluents. In many cases a
 large share of these nearby residents are the workers
                                                 51

-------
who may be exposed to the same chemicals on and
off the work premises. Also, we are concerned that
in dealing with persistent chemicals the long
'standing approach of better ventilation does not
appear to be an acceptable solution to meeting
workplace standards.
   In December the Safe Drinking Water Act was
somewhat unexpectably enacted. The rapid
Congressional action on this legislation was
prompted by reports of trace amounts of organic
chemicals—including several possible
carcinogens—found in several drinking water
supplies, ajid particularly New Orleans. This
legislation, which calls for establishment and
enforcement of maximum contaminant levels in
nation-wide drinking water supplies, has far
reaching implications for industry. It seems unlikely
that municipalities will invest large sums of money
in removing chemical contaminants from their water
supplies without first attempting to identify and
control the sources of these contaminants. In many
cases the sources of concern will undoubtedly be
industrial dischargers.
   The proposed Toxic Substances Control Act
offers an unusual opportunity to improve the
soundness and the fairness of regulatory decisions
concerning toxic chemicals. The heart of this
proposed legislation is the acquisition of more
authoritative information concerning both the risks
and the benefits associated with chemical activities.
Special emphasis is placed on better test information
which is predictive of the behavior of chemicals in
the environment. A second aspect of this proposed
legislation is provision for controlling serious toxic
chemical problems which cannot be adequately
addressed under other existing authorities.
   An improved information base  is critical to better
decisions concerning Governmental intervention in
chemical activities under a variety of regulatory
authorities. At the present time decisions are being
made on the basis of very sparse data. Even in the
absence of such information, decisions will continue
to be made, for action in this field cannot be
delayed. In this regard, the lack of hard data
concerning chemical behavior should hot be
considered a license for continued production and
use of the chemicals any more than we can assume
that activities should cease until they are proven to
be absolutely safe.

INTERCEPTING THE PROBLEMS AT THE
OUTSET

   A main feature of the Toxic Substances Control
Act is the emphasis on identifying problems early in
the commercial lifetime of chemicals—before there
has been irreversible environmental damage and
before major economic investments are in place. At
present we find ourselves constantly reacting to
problem chemicals which are already widely
dispersed throughout our economy—chemicals
which have already caused environmental problems
and which represent substantial investments for
suppliers, manufacturers, and distributors.
Corrective measures invariably mean substantial
economic dislocations.
  With 300 to 700 new chemicals being introduced
into commerce every year, it is only sensible to make
the extra effort to insure that these new products are
not going to cause problems later in their lifetime.
The extent of the research and testing needed to
reach a judgment as to potential environmental
problems will vary among chemicals and among
uses of the chemicals. However, the ground  rules for
early assessment of chemicals need sharper
clarification and greater acceptance by all
concerned. In my view, the recent report of the
National Academy of Sciences Principles for
Evaluating Chemicals in the Environment has been a
major step forward in this regard. Further
development of the concepts set forth in this report,
and particularly relating these concepts to practical
problems, needs priority attention.
  Of course, any Governmental intervention during
the pre-market phase must be sensitive to the
financial realities of R&D activities. Particularly
important is the need to avoid additional delays due
to uncertainty as to Governmental actions. Also, the
cumulative effect of actions directed to individual
chemicals can dampen the overall climate for
research. Finally, protection of the confidentiality of
activities directed to new chemicals is of critical
importance.
  Unfortunately, this approach of early
identification and prevention of environmental
problems and economic dislocations will not help in
addressing chemicals currently in large scale
production. It is indeed unfortunate that this "pay
now and save later" philosophy was not adopted
many years ago. As problems continue to arise with
high volume chemicals, the short-term economic
adjustments will undoubtedly be severe.

COST/RISK/BENEFIT CONSIDERATIONS

  Recently the Government has significantly
increased its efforts to not only assess but also to try
to balance the costs, the risks, and the benefits
involved in regulating toxic chemicals in the
environment. To the extent possible regulatory
                                                  52

-------
activities should be judged on the basis of their total
impact on society—impact on the standard of living,
effective resource utilization, and preservation of
social ns well as environmental values.
  This change in direction in approaching
regulatory decisions has in large measure resulted
from a reorientation in the nature of some of the
legislative authorities under which EPA operates.
For example, the new Safe Drinking Water Act and
the proposed Toxic Substances Control Act are very
explicit in their requirements to take into account
economic as well as health and  environmental
considerations. On the other  hand certain provisions
of the Clean Air Act and the Federal Water
Pollution Control Act are far from clear as to the
weight, if any, to be given to economic
considerations. In a related development, recent
court action concerning the feasibility of the
workplace standard for asbestos has had a
considerable impact on the approach of OSH A.
  Despite growing sophistication in the approach to
controlling toxic substances,  rigorous
cost/risk/benefit analyses will seldom be possible;
for adequate time, data, or resources will usually not
be available to satisfy a purist. However, we can
certainly do better than we have in the past.
  Many of us have had direct experience in
attempting to draw conclusions from biological data
which are invariably "soft." At  the same time
pragmatic economists tell us that their data on
benefits may be even softer—and probably
characterized by uncertainty, incompleteness, and
perishability. They are particularly reluctant to
provide estimates of the societal benefits to be
derived from the use of chemicals which contribute
to improved health and living conditions, to greater
personal conveniences, to new recreational and
asthetic opportunities, and to maintenance of
national defense. Often, they  are even less willing to
speculate as to how the marketplace will react if a
specific chemical is removed  or if its price is
increased as the result of environmental controls. In
short, the economists can provide a shopping list of
some of the factors to be considered in regulatory
decision making, but  they provide relatively little
guidance as to how these economic factors are to be
weighted or integrated or how they are to be meshed
with other considerations.
  Several  points related to costs seem to be clear,
however. If there are  increased  costs attendant  to
environmental control, these costs will be eventually
passed on to the consumer. Secondly, there will
probably be local  impacts attendant to specific  types
of regulatory activities, and particularly limitations
on the manufacture or use of chemicals. These local
 impacts can include business set-backs, employment
 dislocations, and even depressed real estate values.
 And finally, in general the market is sufficiently
 flexible and our innovative capacity sufficiently high
 to fill promptly the vacuum caused by the loss of«
 single product with alternative products or
 approaches to providing a similar service-
   In view of the critical importance of
 cost/risk/benefit assessments to responsible decision
 making, we have recently launched several major
 efforts to refine the methodologies which can
 illuminate in advance the implications of regulatory
 decisions. It is particularly important that value
 judgments not be disguised in manipulating the data
 base and that the bases for decisions be structured in
 such a way that the public can understand the
 rationale that is used.

 THE SPECIAL RESPONSIBILITIES OF
 INDUSTRY

   In recent years, many segments of industry have
 made very significant investments to control the
 discharge of effluents and emissions into  the
 environment. These steps have been taken in large
 measure in response to Governmental requirements
 at the Federal. State, and local levels. There seems
 to be little doubt that such actions have had a
 dramatic effect in slowing the rate of degradation of
 our environment. However, all will agree that we
 still have a long way to go in cleaning up our air and
 water and in preserving our landscape.
   Similarly, industry has over the years expanded its
 efforts to insure the safety of its chemical  products—
 safety as viewed from the perspective of the worker.
 of the housewife, and of the general population.
 Such efforts have been spurred to a great  exient by
 Governmental regulations, in some cases by the
 latent threat of lawsuits, and at times simply by good
 business practices. For many years, direct acute
 effects of chemicals have, of course, been  of major
 concern; and more recently, complementary efforts
 have been directed to the longer term and more
 subtle health and ecological effects.
   In some cases, industry has gone far beyond the
 requirements laid down by Government for
 pollution control levels to be achieved and for safety
 requirements. For example, one major chemical
company has adopted the near term goal that all new
plants be designed to achieve zero discharge with
regard to process liquid waste effluents. Some
companies have significantly expanded their staffs of
toxicologists to address health problems beyond
those of immediate interest in Governmental
regulations. Other companies are conducting

-------
 ecological effects tests on chem icals which by
 regulation are only required to be tested for their
: health effects. However, our general impression is
 that most companies are not moving much faster on
 the environmental front than the rate at which they
 are required by legally enforceable regulations.
   Industry has a special responsibility to know what
 chemicals are released during its manufacturing
 activities and during the use of its products. Further.
 industry has a responsibility to know the levels of
 human and environmental exposure to chemicals
 resulting from such releases. Industry has a
 responsibility to know the likely hazards, if any,
 associated with such exposures and to insure that the
 public is aware of these hazards. Finally, industry
 has the responsibility to take all possible steps to
 minimize these hazards.
   These are societal responsibilities which transcend
 legal obligations imposed by Federal, State, or  local
 regulations. In the years ahead these responsibilities
 must be given equal weight with product   ;,
 performance in judging a company's contribution to
 society.
   To accept these types of responsibilities implies
 new dimensions in corporate activities, particularly
 with regard to physical monitoring and to studies of
 health and environmental effects of chemicals.
 However, I am optimistic that the industrial
 leadership of this country wil I respond to the
 challenge—that this leadership will show restraint in
 foregoing attractive commercial activities when
 necessary in the face of environmental uncertainties,
 thai it will expand its search fur less hazardous
 products, and that it will reward its management tor
 contributions to the health of the nation and to the
 conservation of ecological resources with as much
 enthusiasm as it rewards employees for increasing
 sales.
 A NEW DEPARTURE TOWARDS COMMON
 UNDERSTANDING
   This Conference signals a new departure in our
 efforts to better understand the character, scope, and
 implications of problems associated with chemical
 activities. As additional activities in this field are
 contemplated by Government, industry, labor, and
 other interested groups, it seems imperative that we
 have an authoritative examination of where we arc
 today—the effect and implications of environmental
 actions already instituted by Government and
 industry and their future plans and programs.
 Hopefully with a common base of understanding,
deliberations within Government, industry, and
labor will be more rationale, better, balanced, and
more objective. In the absence of this common point
of departure, there will only be a spiralling of
confusion, suspicion, and acrimony on the part of all
concerned.
  This session, which draws on the expertise and
insights of representative! of many of the concerned
organizations, is designed to help establish the
baseline as to the current situation. Hopefully, the
forma! program  represents but a small portion of the
exchanges that will take place during the next two
and one-half days. We are very encouraged by the
large industrial participation in this meeting. Of
particular interest to us are the steps being taken by
industry. For example, we know that massive R&D
efforts are underway to correct the problems
associated with PVC activities. To what extent are
similar efforts being extended to the rubber
processing activities of these same firms who have
been so involved with PVC during the past year?
  The industry's concern over chloroprene, styrene,
and acrylonitrile, for example, have been well
publicized. Similarly, Government's concerns over
gross pollution effects (e.g. BOD, COD, TSS,
criteria air pollutants) are being reflected in water
effluent permits and in air emission controls. While
we should understand these  actions, which are
important not only in themselves but also as either
successful or unsuccessful case histories, probably of
even more importance at this Conference is to look
ahead into future areas of possible concern—for we
all share an overriding interest in substituting
preventive for corrective actions.
  I am pleased to note that the formal program calls
for an examination of progress in pollution control,
a review of the characteristics of specific chemicals,
a discussion  of innovative uses of waste products,
and an assessment of the role of epidemiological
studies. All of these topics are central to current
efforts in controlling toxic chemicals. It seems clear
that in the future:

  —  pollution control requirements will give much
     greater emphasis to limiting discharges of
      selected chemicals;
  —  the environmental behavior of many more
     chemicals will be examined in detail;
  —  productive uses of waste products will become
      more and more of a reality; and
  — epidemiological studies to correlate exposure
     to chemicals with human health effects will
     expand considerably.
                                                    54

-------
  We give high importance to this Confererv   -          Environmental Quality. We are hopeful that it will
which is the first of several such meetings directed to       make a major contribution to wiser decisions by
various aspects of chemical usage. This effort is           Government and by industry—decisions (hut can
enthusiastically supported by the Administrator of         have a significant impact on the price we pay for (he
EPA and by the Chairman of the Council on              fruits of this Chemical Age.
                                                  55

-------