ENVIRONMENTAL PROTECTION AGENCY
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         PUBLIC  MEETING OF:
THE ADMINISTRATOR'S TOXIC SUBSTANCES
         ADVISORY COMMITTEE
        West  Tower,  Room 3906
         401  M Street, S.W.
          Washington,  D.C.

      Friday,  February 16, 1979
               9:17 a.m.
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                           ATTENDEES
    Dr. Peter W. Preuss
    Chairman

 3
    Susan Vogt
 4   Executive Secretary


    Warren Muir
    Deputy Assistant Administrator
 6   Office of Testing and Evaluation


 7   Paul White
    Assistant to the Chairman

 8
    MEMBERS:

 9
    Dr. Selina Bendix

10
    Dr. Leonard H. Billups

11
    Mr. Paul Danels

12
    Mr. David W. Gleeson

13
    Mr. Robert T. Hayden

14
    Dr. Janette B. Sherman

15
    Ms. Jacqueline M. Warren

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              MR. JELLINEK:  If other agencies who are well aware




    of what we are doing on controversial chemical positions,




 3  whether it be pesticides or others, know what is going on and




 4  are not sharing their information with us, it is a problem. I




    do not know that was the case but I know that we did first




 6  hear about it from someone from OSKA.  As far as I can tell




 7  right now, it was still after the decision was made. That is




    a problem.




 9            When we find out what the facts are in that situatior




    if there was a problem involved, I will talk to you about it.




n            MS. WARREN:  Okay.  That's all.




12            CHAIRMAN PREUSS:  Anyone else?




 „            (No response.)




              CHAIRMAN PREUSS: Thank you very much, Steve, we




15  appreciate it.  The next part of the agenda deals with the




16  premanufacture notice requirements.  You have all just been




17  handed a draft that has been prepared and I would ask Jackie




18  to take over the chair at this point and describe what and




19  where and how.




9Q            AGENDA ITEM:  ATSAC COMMENTS,PROPOSED




91             PREMANUFACTURE NOTICE REQUIREMENTS, BY




99             JACQUELINE WARREN, CHAIRMAN,. PREMANUFACTURE




93             WORK GROUP




94             MS. WARREN:  The document that you all have been




95   given is a very rough draft of the work group, the Premanufacture
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 1   Work Group's efforts to try to develop ATSAC comments on the
 9   Section 5 regulations because some critical members were not
 3   able to be at the whole work group meeting or be there at all,
 4   there are still a few issues which we have to resolve amongst
    ourselves before we can really even put those to the committee
 O
 6   that they can consider adopting it.
 7             What I want to raise, all of the things we talked
 8   about and get committee opinon on them, but we are going to
 9   be having one more meeting, probably next week, to try to
10   resolve the last ones.  Then we will circulate the finished
n   document for the Full Committee, but I would like to be able
12   to incorporate committee opinion that is expressed here in
13   that at the same time and I will just go through these.
14             I have to apologize for the typing and hand scrawlincjrs
15   all over them. We tried to divide our consideration of the
16   proposed regulations amongst issues that ATSAC had already
17   discussed, achieve consensus on it and make recommendations
18   to EPA about as to those things which are put in the section
19   for regulation simply by saying that we have had resolutions
90   on these in the past and we support the approach that is
21   being taken.
22             Then there is another which we also think warrants
23   support, the third group that we thought really needed to
94   have substantial modification to them and then just a section
95   on additional comments.  I would like to go through those in
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 l   that order.




              First of all, with respect to the premanufacture




 3   notification guidelines, the work group's conclusion was that




 4   was a part of the agency's decision to issue Section 5 testing




 .   guidelines and that they be published as soon as possible.
 O



 6             The problem that arises in the absence of the




 7   guidelines,   first of all, the manufacturers do not know what




    is being expected of them and they have to operateit with a




 9   degree of uncertainty, that makes it very difficult to know




10   whether their notices are going to be the subject of a Section




n   5 (e)  action for further information.




              In general, it is more appropriate for a company to




1Q   have some idea of what EPA expects of them.  In this connection
lo



    I wanted to restate that ATSAC had resolved,in the past — I




    will get the resolution and read it to the committee.
Lo



              In September 1978, with respect to the guidance
ID



    for premanufaetured testing, the committee resolved, "That
18
    EPA should indicate that certain tested designs to evaluate
    the full range of effects which are identified in the guidance




20   document as effects of the most important concern are expected




21   for all compounds unless the person submitting the Section 5




22   notice demonstrates, in a brief statement, that the test is




93   scientifically inappropriate for the chemical or the exposure



94   of humans in the environment,  to the chemical, considering




95   both routine and non-routine situations, would be so small
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    that the test is unnecessary or other tests provide at




 9   least a sensitive evaluation of the effect in question as the



 3   base set test."




 4             The work group, in considering the premanufacture




    proposal, felt again that this should be reiterated because,




 6   as I just stated, specification of the nature and circumstances




 7   for the conduct of minimum tests to assessment of environmental




 8   risks would encourage more complete notices and thereby




 9   expedite EPA review and at the same time, the uncertainty and




10   concern about whether commercial production is going to be




n   delayed because of insufficient information will be reduced.




12             I think after each of these, I would like to ask if




13   there is any comment from anybody on the committee.  I would



14   like to hear it instead of waiting until it is all over.




15             MR.HAYDEN:  Just to make it easier to follow, you
16
17
are talking about Roman Numeral II.A?




          MS. WARREN: Right.  The second point is implementation
18   of significant new usefuls. The support document to the pro-




    posal states that the agency recognizes the importance of




9Q   coming out with significant new usefuls and intends to get




    started on it at some time in 1979 and recognizes the impor-




22   tance and significance of the end usefuls both for existing




93   chemicals and as a followup tool in conjunction with the




94   agency's initial review of chemicals.




95  |           Again, as the advisory committee recommended at its
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 i   last meeting, some form of interim followup on significant




 2   changes in the production volume, extended for exposure two




 3   or category of use of new chemicals described in the initial




 4   premanufacture notice"is necessary to protect the environment




 5   and human health before significant new use rules for those




 6   chemicals are so promulgated.




 7             It was our feeling on the work group that such




 8   coverage could be either added to the proposal in the provisior




 9   that deals with the coverage of Section 5 to chemicals which




10   are presently under a testing exemption or some sort of other




n   exemption where a significant change from that exemption




12   takes place or it could also just be directly required under




13   the reporting authority of Section 8(a).




14             Is there any question with respect to that?




15             CHAIRMAN PREUSS:  If I understand, you are reiterat-




16   ing the resolution that was passed basically; you are rein-




17   forcing that?




18             MS. WARREN: We are committing the agency to recognize




19   the importance of getting out significant new use rules but




9Q   at the same time, they have not dealt with the followup




91   problem so we are reiterating again our recommendation that




99   some form of followup be promulgated in the same time frame




93   as these regulations and suggesting that kind of followup




94   requirement could be directly added to the provisions requir-




95   ing that Section 5 reporting of uses of chemicals inconsistent






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 1   with the terms of exception that are provided even for test
 9   marketing or otherwise or it could be entered in as a form
 3   of supplemental reporting under Section 8(a).
 4             CHAIRMAN PREUSS: Right.
 5             MR. HAYDEN:  Just to further clarify in my own mind,
 6   Jackie, in the preamble to the regs, EPA does say, "Therefore,
 7   EPA will followup certain new substances after their intro-
 8   duction to commerce."  It goes on and says,  "TOSCA provides
  '  EPA two basic tools"and it lists 8(a) and the significant new
10   use, but no where in the regulations does it do anything even
n   with Section 8(a).
12             MS. WARREN:  That_is_right.
13             MR. HAYDEN:  I just wanted to make sure I did not
14   miss that.  I could not find it either.
._             MS. WARREN:  Going on to Roman Numeral III on this,
lo
16   which are other provisions that the work group felt warranted
17   support by the Full Committee. The first of  these deals with
18   the solicitation of information from other persons than the
ig   submitter of a premanufacturing notice.
9Q             The language that we more or less  agreed on here was
91   that ATSAC supports the provisions.  It was  difficult without
99   full representation on the subcommittee. ATSAC supports the
93   proposed provisions of the PMN regulations which require
94   manufacturers and importers to contact foreign manufacturers,
95   processors and users for information essential to assessing

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 T   the potential risk proposed by new chemicals.




 2             The provisions relieving the submission of a pre-




 3   manufacturing notice from responsibility for obtaining the




 4   information after the persons have been contacted and authoriz-




 5   ing direct submission of the requested information to EPA




 6   under the same confidentiality projections of  premanufacturing




 7   notice information represents a reasonable accommodation of




 8   the agency needs for information and the premanufacturing



 9   notice submitters ability to obtain such information directly.




10   Any comments?




              (No response.)



              MS. WARREN: Then with respect to the supplemental




13   information reporting requirements which will  be required in




14   certain circumstances, when either the optional information




    appears to be of significance to EPA and they  want more in-




16   formation about it or they want them finished  in the first




17   place, we concluded there was a part of the procedure proposed




18   by EPA to facilitate the development of supplemental infor-




19   mation essential to assessing the potential risk of new




90   chemicals.



91             Such information must be available to the agency




99   on an expedited basis and a proposed approach  will accomplish




93   that result.




24             CHAIRMAN PREUSS:  I do not understand that.




              MS. WARREN: We are just supporting the approach that
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 !   tha agency took on that, not suggesting any change to it or




 9   any modification.




 3             CHAIRMAN PREUSS: I am sorry; I am just not familiar




 4   with that section of the regs, so I am not exactly sure what




 5   it is that you are supporting.




 6             MS. WARREN:  The proposed — (Inaudible) — by the




 7   means of using either authority under Section 5 or through




 8   8(a) letters to either persons who have been listed as being




 9   persons having information that EPA needs to make a risk




10   assessment or optional information which was not provided but



u   which the agency feels that they do need in order to be able to




19   make the judgment about the unreasonable risk of a chemical.




13             They will then out, without formal separate rule-




14   making, to get that information and go directly out under




15   Section 8(a) and are, in effect, conducting that right now. We




16   are just supporting that provision.




17             Then with respect to provisions that we thought




18   require clarification or substantial revision, there are




19   several listed here.  We have further agreement that needs to




90   be reached with respect to B which deals with the treatment




21   of byproducts in the regulations and also with the importation




22   of articles.  I would like to go through all of those and



93   particular to get any committee comment on the ones where we



94   have not been able to reach agreement.




95             The first has to do with the procedure set forth for
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    dealing with invalid notices.  Our statement was that the work




 2   group generally supports the establishment of procedures for




 3   invalidating notices in cases where a manufacturer has to




 4   comply procedurally with the notification regulations.




              However, we believe that the circumstances under




    which, a notice may be declared invalid are ambiguous in the




    proposal and therefore, urge EPA to clarify the circumstances,




    if any, in which the notice may be declared invalid because




 9   the manufacturer failed to submit substantive information




10   requested on the notice forms, in particular the distinction




n   between notices which are invalid for procedural reasons and




12   notices which contain insufficient information to permit a




13   risk assessment should really be made explicit.




14             The latter situation is something which Section 5 (a)




15   of the statute addresses directly and should be handled in




16   Section 5 rather than simply as a basis for invalidating the




17   notice.




 g             Secondly —




19             MR. HAYDEN:  Before you get to that, I do have a




    comment on it.  On the one hand, under Roman Numeral II,




91   Paragraph A, we are saying that the guidelines for EPA ought




    to make explicit that for practically all substances, a




23   certain amount of base set testing ought to be expected?




24             MS. WARREN: That's right.




25             MR. HAYDEN:  If the notice is submitted without that
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    exposure base set of information, shouldn't that just be




    considered invalid rather than relying on Section 5(e)?




 3             MS. WARREN:   I think the fact that the information




 4   is not there means that there is insufficient information to




    make a judgment on the chemicals that the agencies more




    properly should proceed under 5(e) rather than simply reject-




    ing the notice as invalid.




 8             Is there anybody here from the agency who can com-




 9   ment on how they entered into that section?




10             CHAIRMAN PREUSS:  I don't think so.




n             MS. WARREN:   On the invalidity of notices, this is




12   with respect to whether there is simply insufficient informaticjn




13   to evaluate the chemical?




14             MR. DENNY:  I am Richard Denny, Associate General




15   Counsel for Toxic Substances.  Basically, our position is




16   that with respect to the invalidity, that you are required by




17   the statute independently of even any rules we have to comply




18   with the requirements  in Section 5, as to the information that




19   has to be provided and that it supports specifically in Sectior




90   5 with reference to Section 8(a).




91             If someone doesn't do that, the submission is, from




22   the beginning, invalid.  The question of test guidelines that




    we are dealing with now and if the agency hasn't decided how




94   it wants to deal with that, the theory that we would put out




25   — one of the theories that we might apply test guideline use -f-
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    use to put out test guidelines would be that we are required





 2   to take action under 5(e) if there may be an unreasonable




 ,   risk and we lack information and this would give an indication
 O



 4   of when we lack information.





              The failure to comply with any test guidelines




 6   that we put out would not in any event be the basis for in-




 7   validating the notice because there is no specific requirement




    in Section 5 for any tests, so there would be different





 9




10




11




12




13




14




15




16




17




18




19




20




21
 8



    theories all together.




              In order to invalidate something under — strike




    that.  In order to determine that we would take action in a




    situation where we felt there might be an unreasonable risk




    because some tests that we felt should be taken were not




    taken, we would have to do that, notify and comply with the




    statutory requirements of Section 5(e), that is, showing




    there might be an unreasonable risk and that we lack infor-




    mation we do need and so on. That is the basis for the dis-




    tinction between the two.




              CHAIRMAN PREUSS:  What would be a substantive ex-




    ample of something that would invalidate a notice?




              MR. DENNY: Something for instance, where we lack




99   information with respect to workers,exposure information




    as you required, the requirement set forth in Section 8(a).




    I do not have it in front of me but those specific requirement:




95   that is going to be an issue that still has to be worked out
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 L   as to just what we do whan somebody doesn't comply with the




 2   specific Section that we required in the forms where  we




 3   say "Fill in this information."  I presume it would be our




 4   position that if somebody does not do that, since our notice




 5   requirements have intended to reflect the requirements of




 6   Section 5 and Section 8(a),  that would probably be the basis




 7   for invalidating the notice.




 8             The answer to the question may be I do not know which




 9   would be fine but that would not be a basis for invalidating




10   but somebody that refused to even answer one of the mandatory




n   parts of the questionnaire,  we would like to consider that as




12   a basis for determining the notice is invalid.




13           '  That is based upon the belief that they haven't




u   complied with the requirements of Section 5, reading 3(a)




15   into it as we have interpreted those sections.




16             CHAIRMAN PREUSS: Right.  Any questions on that?




17             (No response.)




18             CHAIRMAN PREUSS:  Thank you, by the way.




19             MS. WARREN:  The second aspect here —




90     .        MR. HAYDEN:  Let's clarify too, just what the con-




9!   sequence of invalidation is, as Leonard just points out. That




99   means roughly that manufacturing cannot commence until a




93   valid notification is submitted.




94             MR. DENNY:  That is correct. That would be exactly




95   right.  That would be invalid as though no notice had been
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 1   submitted.  I would presume the consequences would be if
 2   submitting a notice that we determine invalid, if an when the
 3   person proceeded to manufacture that chemical, we would
 4   probably bring an enforcement action against them.  We would,
    of course, notify him that we considered it invalid.  I do
 O
 6   not mean it would land in the agency and we just wouldn't say
 7   anything until he did it.
 8             Once we notify him, he can either resubmit his
 9   notice or say, I disagree with you and go ahead and manufacture
10   We would bring an enforcement action and it is conceivable that
n   the courts would agree with him that it was a valid notice
12   but nevertheless that is the way I think that issue would
13   come up.
14             We would not bring an independent action against
15   him for failure to submit a valid notice. We would wait until
1C   he manufactured.
ID
17             MR. HAYDEN:  Jackie, I would just suggest for
lg   clarification of that language — I forget where we are, 3(a)
19   or 4(a> —
9Q             CHAIRMAN PREUSS: 4 (a).
91             MR.HAYDEN:  That rather than characterize where
92   invalid notices would apply, rather than calling that procedure
23   matters rather statutorily required information.
94             MS. WARREN:  Fails to supply statutorily required
25   information?
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 l             MR. HAYDEN:  Something to that affect.  It seems to




 2   me when you use the term "valid", it is almost like the person




 3   has already done something wrong; he has violated something.




 4   That is the impression I got, just the terminology it is




 5   invalid versus insufficient information or unacceptable




 6   procedures or something of that nature.




 7             CHAIRMAN PREUSS:  It is invalid.  I assume in the




 8   sense that he has supplied something that is incorrect and




 9   doesn't meet the requirements.  Is that the terminology that




10   the agency is assuming?




u             MR. DENNY:  That is correct. We have been using the




12   term "invalid".  It is true that nothing would happen right




13   when he sends that in. We would send him a letter and say




14   we regard it as invalid.  We would not try to bring any type




15   of action against him but it would be invalid for purposes of




16   Section 5, and therefore, giving notice even 90 days prior to




17   manufacture.




18             CHAIRMAN PREUSS: So that the 90 day clock does not




19   start running.




90             MR. DENNY:  Exactly.




21             CHAIRMAN PREUSS:  And it is the option of the




22   person submitting the notice?




23             MR. DENNY:  Yes.




24             CHAIRMAN PREUSS:  Whether or not to resubmit with




25   the material the agency deems has been required. If he does so,
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    the agency accepts it as valid, let us say.  At that point,




 2   the 90 day clock starts running?




 3             MR. DENNY:  That is correct.




 4             CHAIRMAN PREUSS:  His other option would be to




    proceed to manufacture and take the chances of an enforcement




 6   action for failure to notify and argue in court with you




 7   whether or not the notice was in fact valid?




 8             MR. DENNY:  Right.  I think maybe the best way to




 9   respond to that gentleman's concern is the notice would be




10   invalid but it is not illegal to submit an invalid notice; it




    is just illegal to manufacture without having previously sub-




    mitted a valid notice.




13             MR. GLEESON:  I have two questions.  One, can you




14   distinguish between maybe what is insufficient versus what is




15   invalid?  Then, if I understood you correctly, a PMN notice




16   with regard to the 90 day response period — in other words,




17   that 90 day response period does not.. start until the agency




18   has determined that the notification is valid.  Is that correct?
19
              MR. DENNY: No, that is not correct.  The 90 days
9Q   would start when the notice — I do not have the statute;




91   I think it is when the notice is received.  What we might do




99   now is, and if the notice is valid, then that starts the clock,




93   What we might do or what might happen is we would look at it




94   at some point, hopefully soon after receiving it, but at




95   some point and say this is not valid. In other words, what you
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 1   sent in was not valid as a notice and so that wipes out,




 2   basically says you have to start over again but the beginning




 3   point of the 90 day clock is when you would get the thing.




 4             MR. DANELS:  Does that invite litigation, to do it




 5   that way without having another step in between for invalid




 Q   notices?  In other words, if there is a notice which is received




 7   and the clock starts everything on January 1, let us say, and




 8   you have 90 days prior to manufacture and you get around to




 9   March 1, let us say February 15 is when you decide that it is




10   invalid, you notify them and they get a notice on February




u   21 that the notice is invalid.  Doesn't that really create a




12   very difficult situation if the clock has already started




13   running?




14             MR. DENNY:  It does.  I will have to say that I do




15   not know if the regs deal with that, whether or not we impose




16   a deadline on ourselves or not but there is no question at




17   all that if we wait until the day before the 89th and then




18   submit it, you know your notice is invalid, that we are




19   certainly — it is. going to make everybody's job harder and




90   it certainly makes our position a lot tougher to sustain. We




21   wouldnot get a sympathetic court in that case.




99             MR. GLEESON:  Again, the first part of what I




23   had asked, can you comment on insufficient information versus




24   an invalid PMN?




25             MR. DENNY:  It is hard.  Is this a term you are using
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 l   or is this a term you get out of our regulations?   I am not




 2   sure what:you mean.




 3             MS. WARREN: Would you look at that?  If  you arenot




 4   finding that word in some specific context,  then I suppose




 5   the answer would be if you provide us insufficient information,




 6   then as defined by the statute and our regs  interpreting the




 7   statute, then you would have an invalid notice.




 8             It is possible that even perhaps in our  own preamble,




 9   regs or other may be using insufficient information in some




10   other way, perhaps referring to the type of  information we




ii   seek and not receive under some sort of Section 5  guidelines.




12   I am not sure that there is any particular usage of that word




13   yet, so I would say it is conforming.




14             MS. WARREN:  Insufficient is used  under  5(e).




15             CHAIRMAN PREUSS:  I think that is  the problem we




16   have exactly. There do seem to be various uses of  the words




17   "insufficient" and "invalid" and that is the point the work




18   group is making here, that whole piece needs to be clarified,




19   under what circumstances the agency would consider something




90   insufficient for purposes of 5(e) and what it would consider




21   invalid and what combination of semantics could one could?




22             MR. DENNY:  If these are unclear in the  preamble of




23   the regulation, as I say, I do not have it before  me and I




24   have not been able to memorize it quite yet, it is brief and




25   plain English and all as it is, but if it is the case, then
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    certainly it should be clarified.




              MS. WARREN:  Dick, I think I would say to you that




 3  among four — (Inaudible) — there were four different inter-



 4  pretations of what it meant.




              MR. DENNY: Fine, then that leaves us lots of room,




 6  Jackie. That wasn't meant seriously. I agree, in that case,




 7  it should be clarified.




 8            MS. WARREN:  The second point on grounds for declaring




 9  a notice invalid or deficient and both terms are used in the




10  regulations, there is a blanket prohibition excepting notices




    from processors. The regulation simply'states that processors




12  are ineligible submitters of Section 5 notices.




13            The work group questions whether there might not be




14  circumstances for notification by processor might be appropri-




15  ate.  The two examples which came to mind were one, where a




16  manufacturer of a chemical is producing for an exempt use and



17  does not submit a premanufacture notice on it although one of




18  his customers might use it for a non-exempt purpose and




19  there is no mechanism right now for that chemical to come into




20  the Section 5 process.



21            The second type of situation was where a processor




22  really wants the product to be manufactured for him but has




23  all of the information which would go into the premanufactur-




24  ing notice and where the manufacturer would have little, if




25  any of that information and to require the processor to rely 01
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    the manufacturer in that situation because he is ineligible

    himself to report, seems to be an inefficient way to go about


 3

 4             We would recommend that the agency reconsider the

    circumstances under which a processor might be permitted to

 6   submit the Section 5 notice.

 7             CHAIRMAN PREUSS :  Jackie, just for information,

    are you saying that your recommendation is that under some

 g   circumstances, the agency might be willing to accept or is

    the recommendation that in certain circumstances, processors

    should be required to submit?

              MS. WARREN:  No.   I think the agency should be
13
    willing to exempt the statute that requires the manufacturer
14   to report.  That does not preclude a processor from reporting,

15   the agency's interpretation of this is that a processor can not

16   report under any conditions.

17             What we are saying is that they should reconsider

18   that because there are circumstances in which a report by a

19   processor would be appropriate and they should allow for that,

9Q   not require them but to allow for it.  Is that clear?

91             CHAIRMAN PREUSS:  Yes. It is clear.  I am just

99   wondering why some work group did not take that extra step

93   and say that the agency consider requiring it under certain

94   circumstances.

95             MS. WARREN:  I am not sure that they can require it.


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 l   The statute requires it of manufacturers.  It is not clear




 2   whether the agency can require it of a processor, directly



 3   under Section 5(a).




 4             MR. GLEESON: The option should be opened up to




 5   processors, in a couple of distinct cases.




 Q             CHAIRMAN PREUSS: I agree with you too. There were a




 7   clear set of gaps there that all out defies.




 8             MR.HAYDEN:  Jackie, you are saying that the agency




 9   ought to allow the processor to submit the PMN if he wishes,




10   in some cases?




n             MS. WARREN:  Yes.




12             MR. HAYDEN:  What would be the incentive of a pro-




13   cessor to do so?




14             MS. WARREN:  The types of examples that came up




15   would be where the processor-really just contracts for the




16   manufacturer to make something for him but he really is, in




17   effect,  developer of the product and doesn't want to share




!8   any of the information with the manufacturer  and it is




!9   required of the manufacturer to submit the PMN the way the




20   regulations are proposed. It would just be to make it a little




21   bit more flexible than it is.



22             I do not think the product could be manufactured




23   under that circumstance.  Somebody has to do the —  (Inaudible)




94            MR. HAYDEN:  The other example you gave was where




25   the manufacturer is manufacturing an exempted substance but






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    the processor is turning it into a covered substance, convert-




    ing it, doing whatever, doing reprocessing?




 3             MS. WARREN: Right.




 4             MR. HAYDEN: Why would somebody in the latter cate-




    gory have the incentive to go through Section 5, TOSCA?  It




    seems to me that we just prefer to let it slip through in




    the cracks.




 8             MS. WARREN:  Maybe it would not achieve the objectives




 9   of the law to do that.




10             MR. HAYDEN:  I agree.  I would like to have someone




    — (Inaudible) — I am not sure that permitting the processor




12   to do it will achieve anything there. Perhaps it ought to be




13   undertaken to sea if in that case, EPA could require notifi-




14   cation.




15             MS. WARBEN:  You would probably need either a sig-




16   nificant new use rule on that.




17             MR. DENNY: Bob, there is an answer. It is a prohibit?




18   actual use for commercial uses, a chemical substance or




19   mixture which the person knew or had reason to know was




20   manufactured in violation of Section 5 so the processor would




21   be violating the law if he used something that he knew was




99   in the substance and had not cleared the premanufacture notice




93   or had reason to know.




24             MR. GLEESONi_""We are not really talking about a new




    substance, at least not in my mind.  We were talking about —
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 1   what actually came up was what if you had, as a scenario, a




 2   material that was exempt under the fact that it might be used




 3   as a pharmaceutical or an Adchem or something of that nature,




 4   and a processor found a way to use it,for example, as an




 5   intermediate for codeine application.




 6             If he proceeds along that line, if I understand the




 7   Act, he is in violation.  In my thinking, I cannot foresee




 8   someone who is going to get into that situation running the




 9   risk of doing that.




10             I think I would much prefer to say, okay, granted




n   that is the law of the land, we might not like it but we will




12   have to back up and file a PMN.  That being the case right




13   now, they cannot do that, they are locked out from doing it.




14             MR. KAYDEN:  Your feeling is, they would be required




15   under Section 5?




16             MR. GLEESON:  Yes.




17             MR. HAYDEN:  And notice a significant new use?




18             MR. GLEESON:  That's correct.




19             MS. WARREN: As you know, in the — (Inaudible) —




90   it is a pesticide or a track — it is not on the inventory




21   technically.




99             MR. GLEESON:  It is technically in the material.




23             MR. EENNY: That is right.




94             MR. HAYDEN: Could it not be stated then, in that




25   case, the processor — it should be made clear that in that
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    case,  the processor has the same requirements as the producer.
              MR.  GLEESON:   I think you get awfully hung up
 3   though in talking about exempt uses versus non-exempt use.
 4   I think it is  fairly clear, as it is right now, a processor
    cannot file a  PMN and I can foresee at least two examples
                                                         "
    where  that totally prohibits a product coming on the market;
    whether it would be acceptable or not is not germane. There jusjt
    is no  legal way to do it.
              What I am saying is that if that is the case, then
10   EPA ought to allow a processor to submit a PMN. There may
n   also be other  examples  that we have not thought about.
19             MS.  WARREN:  Did you want to say something more?
13             CHAIRMAN PREUSS:  That's fine
14             MS.  WARREN: The next subject area has to do with
15   byproducts. We have not reached agreement ourselves on this
16   but I  just wanted to discuss a little bit of it.  The thing
17   that prompted  the statements that are in the report of the
18   work group, the treatment of byproducts in the proposed regu-
19   lation, appears to be inadequate to us and also inconsistent
9Q   in some ways.
91             Some members  of thework group believe that EPA
99   should get information on all types of products. The statute
93   says,  in Section 8(a),  I believe 3(a)(1)(d), that the premanu-
94   facturing notice should include a description of byproducts
95   that result from the manufacture, use, distribution in commerce
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    disposal and processing.

              The forms only require information on byproducts

 3   from the manufacturer because the use used in consumer form

 4   does not include a request for that kind of information from

    anybody else further down the chain.

              There also are some statements that deal with

    not having to report byproducts which are on the inventory.

 8   When I say byproducts, I am talking about byproducts, co-

 9   products and other of the chemicals that are listed there.

10             So the only description that is going to come in

n   of them is the one that results from the production of a new

12   chemical. Even then, it is not going to be clear to the person

13   filling out this form whether:they should report a byproduct

14   that is in the inventory or not because elsewhere in the

15   preamble it says, the products that don't have to be reported

16   are those that are on the inventory. So we thought that ought

17   to be clarified.

18             Then I would like to get some opinion from other

19   people in the committee also. We felt regardless of being in

20   the inventory or anything else, if there are byproducts, co-

21   products or other intermediates produced in tha manufacture,

22   processing or elsewhere in the chain, that ara of toxicologica]

    significance, EPA should know about that and that any infor-

    mation on those should be required to be reported by the

25   manufacturer and solicited from anyone else in tha chain who


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 1   has information about it.

 2             This is not to say that they have to tast them or

 3   do anything but just simply ask for them for the quantities

 4   that, would be produced, the anticipated worker exposure and

 r   the environmental release.  Some of that information is now
 0

 6   requested on the forms for some compounds but it is not re-

 7   quested anywhere beyond the manufacture.

 8             The health and environmental effects stated in

 9   the manufacturer's position and any risk or assessments that

IQ   might have been conducted, are mentioned.

n             Is there anyone else on the committee who would

12   like to comment on whether they think that information should

13   or should not be included?  I know that David will probably

14   want to say something about that?

15             MR. GLEESON:  If I comment, I will — (Inaudible).

16             DR. SHERMAN:  My experience, of course,  has been

17   with the workers who use the secondary product, that is

18   shipped by the manufacturer and used in plants.  I think it

19   would certainly help the whole health and safety of all of the

20   country to know what the byproducts are and what is going on.

21             CHAIRMAN PREUSS:  I would add to that, not asking

22   for it strikes me as opening up a rather substantial loophole

93   in the information network that is being set up under TOSCA.

24   I can see a number of instances where new products, new sub-

25   stances might be formed but which the agency would never find


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 l   out simply because they were byproducts or co-products.   That


 9   could potentially be extremely toxic.


 3             One just has to look at some of the present problems


 4   that we are dealing with at the moment where the main issue


 5   is the byproduct and if that substance were being manufactured


 6   or processed for the first time, we would simply not be  getting


 7   that kind of information.  I think it  is extremely important.


 g             I do not know what difficulty it imposes.   I frankly


 9   have no idea what kind of an additional burden it places on


10   an industrial manufacturer or processor to provide this  kind


n   of information, particularly the processor perhaps who may not


12   have the mechanism in place for these  kinds of determinations.


13   It may create a whole new need for testing if the processor


14   just has nothing like that in place.


15             I assume he would want a processor to look at  the


16   question or whether or not such byproducts are formed but


17   the wording here —


18             MS. WARREN:  Yes.  I do not  know what kind of  an


19   additional burden it would produce there but it would seem to


90   me also that it would create a great gap in information  that


91   is really needed if you are trying to  assess the exposure


22   resulting from the production of a new chemical. That exposure
                               i

23   involves the byproducts, co-products and all of these other


94   things that are produced all the way down the line.


25             If you are going to draw the line at the manufacturei
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 l   and then go on to say or at least imply that this product and




    co-product are in the inventory, that nothing need be submitted




    about them, I am not sura that is what EPA really wants but
 o



 4   that is the way the preamble reads and it is not clear.  It




    seemed to me to be a great shortcoming to draw the line at the
 D



 6   manufacturer and only ask processors and users about exposure




 7   to the main compound.




 g             We will be drawing up a final report on comments and




 g   submitting them to the committee.  I will ask if there are




    dissenting views, to just band them and we can attach them




n   when the document is submitted to the Administrator.




              I would like to question dealing with byproducts,




13   impurities and non-isolated intermediates involves the agency's




    apparent decision to exclude these compounds from the inventory




..   and from the premanufacturing requirements of Section 5 because
lO



16   it is the same question again, if they are not on the inventory




17   but they are not new chemicals, because we are excluding them




18   from Section 5 also, conceivably very large quantities of




19   toxicological significant compounds can be produced and




9Q   exposure — (Inaudible) — has no record of it and no notice




91   to EPA at any point.




99             We also thought that the advisory committee should

                                \


93   recommend to the agency that they address that problem and




94   either consider applying Section 5 to them or otherwise put




95   out some significant new use for them, but in any event,







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 1    a signficant use role that does not appear in the inventory


 9   is a contradiction in terms.  In any event, it is a problem


 3   that is not being addressed by the agency but in effect, they


 4   are defining the problem out of existence while it in fact


 5   may exist.


 6             The next topic deals with the R&D exemption. This


 7   is the exemption for small quantities which are produced for


 8   research and development. There is a requirement in the Act


 9   that manufacturers of research and development chemicals notify


10   users of the chemicals and certain other persons of the risk


11   that may be involved from exposure to them.


12             We recommend that ATSAC endorse the agency's in-


13   elusion of this proposal in the regulations.  At the same time,


14   there seemed to be some questions raised here which are not


15   answered because the agency's description of research and


16   development chemicals leaves the big question of what is the


17   research and development question?  What is the research and


18   development chemical?  The question of whether a commercial


19   producer of research and development chemicals could apply


90   for or not even apply for, but just read their regulation as


21   giving them an exemption from Section 5 seems to be a real


22   possibility.
                 t

93             It was our recommendation that the agency look again


94   at that part of the proposal and define what they are talking


25   about with respect to research and development chemicals.




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 1            The next section deals with the importation of ar-


 9  ticles containing new chemical  substances. These are simply


 3  excluded from the coverage of Section 5, even though Section


 4  13, the section of the statute  that deals with importation


 .  specifically refers to articles.
 0

 6            We foresaw two serious problems with the blanket


 7  exemption of chemicals containing new chemicals.  The first


 8  of these is that toxic substances coming in in articles and


 9  new chemical substances in the  articles could have work spread


 10  exposure and those articles could not be manufactured domesti-


'n  cally without the manufacturer  putting through a premarket


 12  notification on the new substance.


 13            It seems discrimination against domestic manufacturers


 14  to allow, and it is advantage to the U.S. population besides,


 15  to allow the substances to come in without any notice at all,


 16  and not having any requirement  to find out what the substance


 17  was and get information on what was involved with exposure to


 ^g  them.


 19            How you go about doing that is very complicated but


 90  I think the agency'needs to, again, not define it out of


 21  existence but address it directly.


 22            The second problem is that the disadvantage to U.S.

           >
 93  manufacturers and the fact that their competitors or they


 94  will simply relocate abroad, manufacture the substance abroad,


 25  thereby avoiding the requirement of Section 5, premanufacturinc
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notice and then import them back into this country for sale




and simply avoid Section 5 altogether to avoid proof of




hazards posed by those kinds of things coming in from foreign




manufacturers or the relocation of industry abroad.




          We felt that the substances in those articles should



be subject to Section 5 or the articles should be prohibited




from importation entirely.  Is there any comment on that?




          CHAIRMAN PREUSS: Yes. For clarification, if someone




in the United States wants to produce an article using a




substance which would be subject to premanufacture notificatio




but that substance is entirely self-contained, entirely con-




tained but never gets out, could he produce that article witho




going through PMN at all?




          The way the regulations are written —




          MS. WARREN:  Produce it in the United States?




          CHAIRMAN PREUSS:  Yes.




          MR. DENNY: The answer is no.



          MS. WARREN:  I don't think so.  It is a new chem-




ical.




          MR. DENNY:  He could not, if he manufactures that




in the United States, whoever manufactures it, the guy who




makes the article, or the fellow that sells the substance to




him, it has to go through premanufacturing notice.




          The person who makes the article, and assuming he




doesn't also make the substance, would be liable if he knew or






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 1   had reason to know that the substance had not gona through




 2   premanufacturing notice, so the answer is no. The only way




 3   — the only situation where somebody would be able to do this




 4   is if a person possessed the material that he had no reason to




 5   know and did not know it hadn't gone through premanufacturing




 6   notice but basically the answer is yes, he has to go through,




 T   the manufacturer has to go through PMN within the United States




 8             MS. WARREN:  But if he manufactures abroad and it




 9   just comes in, there just is a loophole in the regulation.



10             MR. DENNY:  It is not really a loophole. It is one




n   of the most difficult problems we have had to deal with. If




12   somebody imports, say a car, he does not know everything that




13   went in that and whether he should or not and we are still




14   trying to work this out.  I am seeking comments on it but it




15   is very, very difficult to find out all of the things that we




16   into the car.  He buys his seats from somebody else who buys




17   seats from somebody else who buys raw materials from somebody




is   else.




19             It was.the agency's concern it would be literally




20   impossible to do in many cases. Whether or not you agree to




21   that, it is up to the committee to make recommendations on



92   it. That is a problem we have to deal with that many times a




23   guy simply ships in an article that may have hundreds of




94   thousands of chemical substances in it.  Unless he found




25   out what all of those are —
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 L             CHAIRMAN PREUSS:  That is exactly the same argument




 2   applied to the domestic manufacturer.




 3             MR.  DENNY:    No,  the domestic manufacturer,  you




 4   have two situations there.  Whoever makes the material  is to




 .   get the PMN.  He should be doing that.




 6             Second,  if a guy makes an article, assuming  that




 7   someone in the United States has not given notice,  let us




 8   say of how ha makes the car.  It may be that there  is  a sub-




 9   stance in there that was made in the U.S.  that did  not go




10   through, PMN.




n             If  a guy makes a car and he  had  no reason to know




12   that and had  no way to know that, ha is not violating  any




13   law.  It is just if he had reason to know  but the guy  who




14   manufactured  the material in the first place would  be, but




15   in that respect, it is an analogous situation.  General




16   Motors does not have to know all of the substances  about




17   everything in its  cars have gone through pramanufacturing




18   notice.




19             Of  course it is in their interest to avoid getting




20   into sticky situations and make sure that  thair processors




21   in fact give  such notice.  I shouldn't say processors; the




22   people that sell to them givs such notice  but it is a  diffi-




23   cult situation.




24             You have hit two reasons in your talk, Jackie, for




25   why a notice  should be given when they import it but I hope
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you will deal with tha problems of just how we would maka this




work without bringing importation of articles to a halt.




          DR. SHERMAN: Theoretically couldn't somebody import




TRIS-coated fabric?




          MR. DENNY: Somebody could do it, would not have to




get premanufacture. First off,TRIS is already made in the




United States so it would not get premanufacturing notice




anyhow.  One of the things I would like to make clear is




that we do have authority to restrict  the importation of an




article containing anything and that would be our answer. We




would say something containing TRIS must go through premanu-




facturing notice or strike premanufacturing notice.




          CHAIRMAN PREUSS:  You would never know, that is




the point. Let us say there was an analog of TRIS that was




manufactured abroad of which you had no knowledge here in




the agency that was incorporated into materials and imported




as an article.  The agency would have no way of knowing,




unless it deliberately went out to test or some other procedure




that in fact there was a known potentially toxic substance




incorporated into that fabric.




          You would not have any measure — any way of en-




forcing .




          MR. DENNY:  I agree with that.  As I said, try




to look at the other side and hope you will address it




because frankly if you don't address it, it does not help us






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    as much.  You can imagine the situation, someone brings in

    clcth and a chain of suppliers of dyes and substances and

    the dyes may go three, four,five chains back and they may

    come from different countries and there may be more or less

    honesty. That is the issue.  That is what we have wrestled

    with at EPA.   I hope you hit that side when you discuss it.

              CHAIRMAN PREUSS: Yes, Selina?

              DR. BENDIX:  I am glad your committee brought this

    issue up because I think that this problem of imported articles

    and what was and was not covered is one that has come up
    repeatedly at ATSAC meetings.  I think perhaps this is the


12
11

    first time it has been made clear to us that the reason cer-
13   tain things are not being covered is that they cannot figure

14   out how to write a rule to do that.

,,             It seems to me that it might be worthwhile for
1O

16   us at each meeting to perhaps schedule some time to just sit

17   and discuss ways and means of arriving at control that would

18   be reasonable.

19             MR. HAYDEN:  I would like to ask a question related

9Q   to this.  I don't recall, does the statute address this matter

91   at all, importation of articles?

              MR. DENNY:  No.

              MS. WARREN: The statute just says, "define manu-

    facturers as including the importation of any chemical sub-

    stance. "


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              Presumably somebody that brings in an article has




    brought in all of the substances, Congress  just plain didn't




 3   focus on the'issue, but if you read the statute, I think you




 4   can see that somebody who does bring in an article, does




    bring in all of the substances.  That raises difficult




 6   questions there.




 7             Should we be requiring premanufacturing notice




 8   anyhow just on the basis?  If you make that interpretation,




 9   I think we definitely want — I think it is a reasonable in-




10   terpretation and for the purposes of Section 6, that we




    can regulate any part of a substance — any part of an article




12   brought into the country, say if somebody is importing TRIS-




13   treated nightwear, we can say that you can't bring that in or




14   you are not about to bring such nightwear in; you ara not




15   allowed to bring the TRIS part of it in




16             On the other hand, if you say, let us follow the




17   logic of that and then any substance that is brought in should
18
    ba subject to premanufacturing notice, since it is "manufacture
19   when it is imported, then you have this other problem that




20   I mentioned.  That is a statutory authority for definition




21   of manufacture.




22             MR. HAYDEN: Since Marilyn Bracken made a timely




23   entrance here, may I address a question to her concerning




94   this?  Has there been any discussion of this problem in any




.75   of the international forums?
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 l    '         MS.  BRACKEN:  There has been a great deal of dis-
 9   cussion,  a great deal of discussion about this issue of
 3   internationality.  It has been raised at our meetings with
 4   the European communities and it has been raised by various
 5   importers,importing groups and they tend to point out-— the
 6   internation community tends to point out the difficulty that
 7   thsy have, the manufacturer, the importer, identifying all of
 g   the substances that are in an article, whether it is for
 9   purposes  — they have difficulty in just knowing or getting
10   the information from their sources as to just what is in that
n   article.
12             So they have just kind of talked about the issues
13   that Dick has  raised, just the difficulty in obtaining that
14   kind of information.
15             MR.  HAYDEN:  Has there bean any work to try to come
16   up with some kind of international program on how to deal with
17   it?
18             MS.  BRACKEN:  Not yet.  It has been raised at some
19   issue and we have talked about how we will deal with the
9Q   problem and.what we have talked off and on in different meetinc
91   about, .what we had proposed in our Section 5 regulations,, but
22   there has been no international project started yet on that.
93             MR.  HAYDEN :  The European community proposal deals
94   with a premarket notification?
25             MS.  BARCKEN: That is right.
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              MR. HAYDEN:  How do they address this type of




    problem?  There.'is a lot of importation into European Common




 3  Market of articles containing chemicals?




 4            MS. BRACKEN:  Yes.  I am not certain how they are




 5  addressing that yet.  We do not have any details. It is done




 6  firmly without their planning to address it.  As you know,




    their directive is still in the drafting stage. I am not cer-




 8  tain how they are planning to deal with it.




 9            MR. HAYDEN:  Thank you.




10            CHAIRMAN PREUSS:  It would certainly be a good




n  timing for the recruitment of international aspects of TOSCA.




12            MR. HAYDEN:  Yes, boss.




13            CHAIRMAN PREUSS: All right.




14            MS. WARREN:  I would like to add one point.  I do




15  not think the agency needs to solve the whole problem before




16  they take any action as to whatever aspects of it they can.




17  Your example was a car.  The example we had when we talked




ig  about it in the work group was just a pen, like Peter is




19  holding right now.  It might have in it a new chemical




20  substance which would get in peoples' fingers, cause exposure




21   and that sort of thing.




22             I think the problem could be broken down into more




93   manageable aspects of it and those aspects dealt with rather




24   than solving the universe of the problem before you do any-




95   thing about it at all.
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          I would like to add, along  those  lines,  that  I




understand there will be a meeting  in New York  on  premanu-




facturing notification for importers  in  March,  on  the 9th.




For those interested in following up  this question,  I am




hearing some of the other things.   I  am  sure  anyone  who is




interested can get information directly  from  Blake Byles'




shop about that.
7.




          MS. WARREN:  I am sorry. That's Washington,  and




it's March 9.




          CHAIRMAN PREUSS:  March  9.  Is  that it,  Bob?




          MR. HAYDEN:  Yes.
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                                                       157


          CHAIRMAN PREUSS:  I believe you were up to Roman

numeral V.

          MS. WARREN:  I am up to Roman numeral V, which is

entitled, "Other Recommendations."  These are three points

which the work group felt that the members of the Committee

should consider recommending to EPA for their attention.

The first one deals with the low-volume chemicals small-

business question which EPA raised in the Preamble asking for

comment on how the premanufactured program should be

implemented in relation to small businesses and low-volume

products.

          In this connection I wanted to remind the people

at this meeting that ATSAC has a resolution dealing with the ,

question of small businesses.  I would like to read it now

just to remind you of it.

          We stated that, "EPA should fully investigate the

possibility of making assistance available in cases where it

can be shown clearly that assistance is needed to achieve

the needed testing and that such assistance bfe supplied as

soon as possible to be coordinated with the implementation, of

the premanufacturing requirements.

           "The preface to that recommendation was that we

recognized that small-chemical manufacturers may  face par-

ticular  financial, manpower and/or technical burdens  in

complying with testing requirements, including the


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premanufacturing test guidelines; and also, that adequate




testing for health and environmental effects should not  be



sacrificed by such burdens on some companies."




          Apart from having made the recommendations to  EPA,




we have not really seen any evidence of a program or legis-




lative proposal or anything else which would accommodate that




problem.  But the Agency has asked for comments on how to




apply the program to producers in those two categories.




          I think they are really separate questions, and the




Preamble really recognizes that the source of the commodity



or the volume of the chemical are not necessarily synonymous




with the degree of risk which might be posed by that chemical.



For this reason we agreed that we should state that the  risk



posed by a chemical is a function of the particular char-




acteristics of the chemical, the anticipated use and




resulting exposure, and for this reason the work group proposes




thai; the Advisory Committee recommend that EPA devise




criteria which reflect the above factors which are, as I




said, the particular characteristics of the chemical, the




anticipated use and resulting exposure.




          In order to determine the conditions under which




lesser requirements for testing and information submitted



would be acceptable to the Agency for purposes of Section V




review, and that requirements consistent with such conditions




should,therefore, be incorporated in the Section V guidelines






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    that would make the conditions synonymous with presumble low-



    risk rather than small business or simply low-volume




    production.  Is there any comment on that?



              CHAIRMAN PREUSS:  Is this one in which the work




    group did or did not achieve consensus?




              MS. WARREN:  We did not get to  discussing it




    because our business representative had to leave, but we will




 8   be discussing it and we will submit and circulate to the




 9   Committee any revised language that reflects an agreement on




10   it.



11             CHAIRMAN PREUSS:  Any comments?




12             MR. HAYDEN:  I do think David expressed general




13   agreement on it — did he not?  I do not want to commit him




14   but I thought he had.




15             MS. WARREN:  He expressed general agreement,with the




16   statement that this was a function of exposure, volume and




17   particular characteristics of the chemical.  So I think he is




18   likely to agree with it.  He wanted more time to talk about it




19   and: think about it.




20             The next one of the recommendations concerns the



21   question of confidentiality of chemical identity.   The Agency1




22   position as stated in the proposed regulations presents a




23   compromise between the requirements of confidentiality and




24   also the public interest and access to health and safety



95   information.





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 1             During and after the premanufacture period, in the




 2   view of the work group that compromise as it applies to the



 3   premanufacture-notice period, does not really accommodate the




 4   interest which is protected by Section 14 (g) as far as the




 5   premanufacture-period.notice is concerned.




 6             Section 14 B(l)(a)2, provides that the public shall




 7   have full access, in effect, to health and safety studies




 8   during the premanufacture period as well as after manufacture



 9   commences with the exception of process and proportions




10   information.



11             The Agency admits that chemical identity is part of




12   the health and safety study.  They say it about four or five




13   times in that Preamble.  Nevertheless, they are going to




14   withhold that identity when a claim of confidentiality is



15   made during the premanufacturing period.




16             For this reason we felt that the Advisory Committee




17   should urge EPA to develop and implement a mechanism that




18   would permit the stiaring of chemical-identity information




19   with bona fide public-interest groups and other independent




20   scientists under conditions which would prevent the disclosure




21   of such information to the competitors of the person submitting



22   the premanufacture notice.  Is there any comment on that?



93             CHAIRMAN PREUSS:  I know that this has been




24   suggested in the past, and discussed in the past with the




25   Agency.  I'm not asking you to speak now for the Agency, but





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 i    as  far as  you know is there any reason why this was not done?




 2    Or  what were the resons why this was excluded?




 3              MS. WARREN:  As far as I know,  it has only been




 4    discussed.  At least, in any public meeting I have ever been




 5    in  it has  only been discussed in a very tangential way,




 6    thought about in this manner but never any specific proposal.




 7    In  the EDF role, I have expressed some reservations about




 8    signing a  confidentiality agreement that might leave us open




 9    to  harrassment and having to defend liability suits and that




10    sort of thing.




11              However/ I would like to see a specific proposal,




12    for example, where we would have an independent scientist




13    come on as a nominal consultant to the Agency bound by the




14    confidentiality requirements.  But in some way that might




15    eliminate  a liability.  I would like to. see some sort of a




16    proposal and I do not know how much attention the Agency has




17    given to that.




is              As I said, I think their compromise really inhibits




19    any sort of effective public review during this premanufacture




20    period, and that the statute should provide for that.  I would




21    like to see a more serious effort towards developing some




22    sort of mechanism.




23              CHAIRMAN PREUSS:  Dick, did you want to say




24    something?




25              MR. DENNYj   I just want to suggest that here one





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of the biggest problems is in the implementation.  Frankly,



a recommendation that we implement something along that line




would not be nearly as helpful as how.  You have two main




problems:  One is how to determine whether some one is a




bona fide public-interest group or is a bona fide independent




scientist.  What do you use — did he come from a good




family?  It is a very tough thing to do.




          Who sits there and says, "I don't think he is




bona fide but I think you are."  And on what basis do you




review that decision.  Secondly, what happens  if you get in




there and look at the data and it indicates that every man,




woman and child in the United States is going  to die and you




are not allowed to tell anybody about it?




          MS. WARREN:  You could use the generic name.  You




have the data any.  The only thing you don't have is the




chemical identity.  If you are bound to keep from disclosing




the chemical identity but referred to that chemical — if




you made an announcement to the newspaper of the technical




name it is not going to mean anything to anybody but maybe to




the competitor, the generic name would serve just as well.




It is the problem of trying to-review the data with using  the



generic name that is so difficult.




          MR. DENNY:'   But I would think you would have a




problem.  The main purpose of gaining acess would be gain




additional information, and if that additional information
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 1   did  indicate  a greater risk than the mere data itself




 2   indicated and you were not allowed to tell,  what do you do in




 3   that situation?



 4              CHAIRMAN PREUSS:  It's not that you are not allowed




 5   to tell.   First of all, you are allowed to tell the Agency.




 6              MR. DENNY:    You are allowed to tell the Agency.




 7              CHAIRMAN PREUSS:  That's an important step forward




 8   right there.




 9              MR. DENNY:    It would be.  But still	




10              CHAIRMAN PREUSS:  I think as Jackie said, that




11   would be  the  least of the problems.  If there were an




12   independent scientist who discovered a substantial risk that




13   would be  involved, I'm not sure that would be the problem.




14   I can understand your first problem of trying to define who




15   was  able  to receive such information and who was not.




16              Again, I was pushing for that part of the discussion



17   in the work group.  I think the feeling was that in some of




is   the  things we have been discussing, the Agency has to come




19   forward with  recommendations for proposals,  with ideas, so




20   that they can be put on the table and discussed and not say




21   they do not exist by ignoring them.  I think that is the




22   problem we have in several of these instances.   That more




23   than anything else is what we would like to have.




24              Let's see — we have Bob Hayden, and Jeanette and




25   then there is this unidentified individual in the audience.





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 i    Robert?



 2              MR. HAYDEN:  I have a problem with the Agency




 3    "compromise" and the approach that we have up to now taken in




 4    the Committee and that is that both of them in really in




 5    violation of the statute.  The statute simply says that this




 6    information is to remain available.  It may very well be true




 7    that there is a real problem in making it available in that




 8    Congress did not think out that problem.




 9              However, I think a very strong case could be made




10    that either way we approach it is in violation of the act.




11    I think we ought to at least consider the Committee recom-




12    mending that EPA go to Congress and rectify that problem




is    without suggesting what that solution is.  I will relinguish




14    the microphone.



15              CHAIRMAN PREUSS:  Jan?




16              MS. SHERMAN:  I have a question.  I'm wondering




17    that since the company that claims confidentiality is claiming



is    it for an economic advantage, would there be a possibility of




19    requiring an affidavit or requiring assurance that because




20    they are claiming confidentiality that the validity of their




21    health and safety data does indeed rule out any imminent risk




22    or severe hazard from their product; and in exchange-for




23    receiving confidentiality they assume both personal and




24    corporate responsibility for any damage.




25              They clearly ought to have to give us something if





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                                                       166

they want something, and confidentiality is for economic
reasons — if they are so sure the data is good and there is
really no harm to the buyer's fear in any way, let them take
the responsibility for both corporate and personal risk as
corporate managers.
          CHAIRMAN PREUSS:  And now for the gentleman in the
audience.  Yes, sir?
          MR. BILES:  My name is Lloyd Biles, Premanufacturin<
Review Division.  The only comment I want to make is that on
the general issue of whether we considered this alternative,
we considered it along with seven others that were built into
this support document.  My only point is that we picked one
position and did not pick the position being proposed.
          However, there is no doubt that this is one of
several things that we considered quite a bit, arid we discussed
it with many people-outside of the Agency r.  ,We continue to
be open on how to resolve it, but there are eight different
alternatives as to how we will handle it and they are
spelled out in the support document.
          The only thing I am concerned about is that people
understand this is something we have seriously considered at
this time.  We did not propose it.  Just be aware of that.
          CHAIRMAN PREUSS:  All right.
          MS. WARREN:  I would like to respond to that.  My
position speaking from EDF is not necessarily the same one

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 i    the Advisory Committee is going to want to take;  but it seems




 2    to me  that the Agency takes kind of an all-or-nothing



 3    approach.   You have said you disagree that the statute provide




 4    for complete public access to identity at all times.




 5              As an attorney for EDF, I think it does.   Our




 6    position also is that the Agency will not concede that that




 7    position being taken or advocated in the proposal that we




 8    made was illegal.   I have not seen anything that  spells out




 9    a mechanism.  I have not heard anything in any public meeting




10    that in fact was a concrete proposal of how it might be done.




11              I have heard in every general discussion ideas as




12    to:  We could always disclose it, we could never  disclose it,




13    we could disclose it through a panel — all discussions were




14    quite  general.  I concede that they : are there but they are



15    not specific enough to rise to the level of being a specific




16    proposal on how it may be done.  At least, I have not been




17    privy  to any Agency discussion on that, or any articulation




18    of it  on paper.




19              MR. BILES:  On the first issue, on the  legality, as




20    I said in every public meeting to date we have great legal




21    briefs on both sides of the issue:  Marshall Cleveland from




22    NRTC,  Jim Moraley, from Proctor and Gamble in the industry




23    side.   I just maintain that on the legal side you can argue




94    both sides, and we will be in litigation on it, frankly,




25    whatever we do.





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                                                       168





          On the pragmatic side of what we do, admittedly in




spelling out the alternatives, we have gone through most of




the detail on the alternatives selected.  We do not consider




it was necessary to go into all of the detail of what we con-




sidered in the support document — every alternative.




          Basically, we thought it was our position to lay




out why we did what we did, identify the other things we




considered and solicited comments on how these other approaches




might be taken.  That is what we have done.  I can guarantee




you this support document would be two or three times as--.long




as it is already, which it was in earlier drafts when we had



these kinds of things in it.




          Part of our interest was in getting the thing down




to a manageable length so people could get all the way




through it, so we cut out a lot of the very specific




considerations on all of the alternatives on every issue in




here.  That is how it came about.



          CHAIRMAN PREUSS:  Right.  Yes, Salina?




          DR. BENDIX:  It seems to me that if there is




material that had been worked up and eliminated for what I




think is a very good reason of creating a document of




manageable size, then if that information is of sufficient



interest to the work group it might be helpful if it could




be made available to the work group*



          MS. WARREN:  The last subject is with with





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substantial risk information on new chemicals.  The Section




8(e) of the statute deals only with the chemicals that are in




commercial production that are on the inventory or added to




the inventory.




          The forms keep information that could indicate a



substantial risk really too optional to be submitted just at




the option of the person making up the notice, and that person




is not under an Section 8(e) obligation until the chemical




goes into production.



          For that reason we stated first, our concern that



information indicating the possibility of substantial risk




from the new:;chemical is not required to be submitted under




the new proposed rules.  And the example we gave would be




information indicating a structure activity relationship to a



known hazardous compound.




          We felt this was a shortcoming in the regulations




and suggested that a general requirement possibly modeled on




this -Section 8(e) regulations now in effect for submission of




any information  indicative of any substantial risk should be




included in the final Section 5 regulation as mandatory.  Are



there any comments on that?




          CHAIRMAN PREUSS:  This is just an informational



question, Jackie.  What is now required in terms of infor-




mation that is available to a manufacturer — testing




information or other information that he has in his possession!






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 1             MS. WARREN:  The Agency's definition of  test  data,




 2   in my reading of it/ would not  include  structure activity




 3   information.  And the  reason  I  included that  is because that




 4   type of information is specifically addressed in the  optional




 5   part of the form, which would lead somebody  filling out the




 6   form to conclude that  that information  did not have to  be




 7   submitted.




 8             CHAIRMAN PREUSSS:   There is no penalty,  and no




 9   problems, whether or not  this kind of information  had to be




10   supplied, whether or not  there  were problems  or penalties




11   with simply not supplying it?




12             MS. WARREN:  The only section that would, con-




13   ceivably, be applicable would be Section 8(e), and that only




14   applies to commercial  chemicals; and a  Section 5 chemical  by




15   definition is not in commercial production.




16             CHAIRMAN PREUSS:   Right. But when it does  go into




17   commercial production  it  would  be subject to 8(e)?




18             MS. WARREN:  Yes.




19             CHAIRMAN PREUSS:   So  the concern of the  work  group




20   is  at what part of the process?  I am not sure?




21             MS. WARREN:  During the premanufacturing-notice




22   period.   The point of  the premanufacturing notice  is  to




93   prescreen and conceivably prevent the chemical, if it is




24   hazardous, from going  into commercial production.  But  if




95   that kind of information  is  not required to  be submitted,  you






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            i    are waiting until possibly, some exposure that might take

            2    place before you submit it.

            3              CHAIRMAN PREUSS:  Any other comments on this?

            4    Okay.  In that case, let me thank you, Jackie, and the other

            5    members of the work group who helped work on this, as well

            6    as members of the staff and others who helped put this

            7    together.  I just want to make sure that we all understand
                                                   '
            8    the process,, but I think what happens now is, since there is

            9    an element of timeliness involved, we will be receiving a

           10    firmer draft based on some additional conversations, for our

           li    review.

           12              The comments should go back to Jackie immediately.

           13    There has to be a very fast turn-around on this to see if

           14    there any major objections or difficulties, and then a final

           15    document will be prepared which we will submit formally on

           16    behalf of the Committee.  Yes, Lloyd?

           17              MR. BILES: ' We would like to have a transcript of

           18    this made a part of the public hearing, if it has been

           19    raised.  This would be helpful to us because it is akin to a

           20    public hearing in terms of the discussions.  It is being

           21    transcribed so I do not think it is a problem.

           22              CHAIRMAN PREUSS:  Clearly, the transcriptions are

           23    part of the public record anyway, so there is no problem.

           24              MR. BILES:  In terms of soliciting comments, they

           25    are certain welcome to any representative of the Committee,


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on behalf of the Committee; and to also present a Committee
viewpoint at our public meeting on the 7th and 8th.  In
addition to written comments, we are having 2 days of meeting
in the District on the 7th and 8th, and certainly on behalf
of the Committee if somebody wants to make a presentation,
we- are having meetings.
          MS. WARREN:  That's 2 days on Section 5?  I thought
it was only 1 day.
               f
          MR. BILES:  We already have enough people signed
up so it is going to go into the second day.
          DR. SHERMAN:  Tell us your specific address in case
anybody wishes to send —
          MR. HAYDEN:  Are you still going to New York on
the 9th?
          CHAIRMAN; PREUSS:  Is this still the final meeting
on PMN, the one in the District on the 7th and 8th?
          MR. BILES:  On the 9th we have an international.
          MR. HAYDEN:  I would like to raise one more point
that has been a concern of the Committee.  At least, I
remember it being discussed a number of times but I do not
think there was ever any resolution.  Still, a number of
people raised the question that chemicals for export ought
to be covered to the maximum extent.
          The proposed regulations to require chemicals that
are going to be manufactured strictly for export do require

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 1     them to submit premarket manufacturing notification.  I

 2     would recommend that we support that provision in the

 3     regulations.

 4               CHAIRMAN PREUSS:  All right.  Will you just make

 5     sure that that is in the draft?

 6               MR. HAYDEN:  I'll work with Jackie — yes.

 7               CHAIRMAN PREUSS:  Are there any other comments on

 8     the PMN draft that we have had before us?  If not, then I

 9     will stress the importance of doing this in a timely fashion

10     and I thank the members of the work group.

11               We'll go now to the next item on the Agenda, which

12     is in some ways similar to the PMN discussion.  It certainly

13     has been around for a while.  As you know, Vivien Paigen

14     was a chair of this work group until her recent resignation

15     from this Committee because of family health problems.

16               As a result, I have asked Leonard Billups to help

17     guide the discussion today on the guidelines.  I will call

18     on him now to go forth with that.  Len, in case you have need

19     for EPA staff people, there is a gentleman on my right who

20     might be able to answer a question.
           .
21               DR. BILLUPS:  The testing work group, of course,

22     was charged with going through the premanufacture-testing

23     guidelines.  We found that .the draft of December 20th, 1978

24     was being redrafted, and apparently a final will be

95     available next week.


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i    others under others.



2               If people do  not fall  into that trap,  I don't




3    think it ought not to be too intimidating/ at least at this




4    stage.



5               CHAIRMAN PREUSS:  Okay.   Thank you. We have two




6    things that remain on our Agenda.   Again, thank  you, Warren,




7    for  stopping by  again.   The things we have on the Agenda .




8    are, one;  to make certain that we  are clear as to the next




9    meeting date, which is  April 23rd  and 24th, that we had




10    discussed  last time.




11               The second item is: What should be covered at




12    that meeting?  Since a  number of people who attended the




13    meeting have had to leave earlier  today, I propose that I




14    get  some suggestions in the mail to you for response.  With




is    bo response from you,  I will take  that to mean that you




16    concur with the  suggestions.




17               Finally, we have time  left at the end  of today for




18    public comment about the various issues that are on the




19    Agenda.  We have had a  request for some time, and I will




20    invite Mr. Miller up here, and anyone else who wishes to




21    make a comment or make  a statement may feel free to do so at




22    that time.  Mr.  Miller, will you please join us?  You may



23    come up here if  you like.




24               MR. MILLER:   I'm Marshall Miller, a lawyer with




95    Colby, Miller and Haines.  I am  really not speaking today on





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behalf of my client, but I would like to take about 5 minutes




to raise an issue with you that I hope that Jackie or someone




in the group can do something about at the meetings of




Tuesday on PMN.    	




          One of my clients is a company named, Cerac, which




is a small company making very highly-specialized scientific




products.  I would almost call them "R&D products" but they




are not.  They are in gram amounts:  10, 20, 50-and 100-gram




amounts.




          They- were concerned because all of the things in




this catalogue — approximately 2500 of them — are all




things that they make, would be subject to the premarket




notification.  This would not have been a problem, as I




understand, under the act as I read it.  It would simply




identify the chemical name and a few details in it.




          However, in the Section 5 proceedings as they have




been written, bringing parts of Section 4 and Section 8 into




them, the estimated costs now could run — I believe the




estimates are 2500, 41,000 just for PMN and not including any




testing.  They obviously have a great deal of trouble with




chemicals which in themselves, the total value does not




exceed a couple of hundred dollars.




          Yet, these small chemicals can be very important



in the electronics industry.  For example, it only takes a




few grams of a doping compound to completely transform the





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    electronics products of the process of matter.  Catalysts  and




    others require only small amounts, so these are very




    important.




              The examples that he  gave in the hearings were the




    light-imaging diodes and calculators, each of which of  course




 6   takes an  infinitesimal .amount of  zinc corsynide.   And it is




 7   the only  source  in the United States for  this.  It is the




 8   same with whatever compounds are  used in  the night-vision




 9   scopes for the military.  It is also the  only source in the




10   United States




u             Therefore, I would like to raise that question here.




12   It is not only him; and by the  way, I will pass out copies of




13   that testimony because if you have a chance to look at  page  3




14  on,you will see what those effects on.  By the way, he tends




15   to specialize in things like gydelium, erbium, radium — all




16   things you may never have heard of.




17             There  has been a suggestion that there  be a
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definition of diminimus, an automatic assumption that something




be R&D if it is under a thousand pounds or if it is under




a thousand kilos, or something of this sort.  This, of course,



would take care of this situation.




          Another suggestion would be that we preserve the




sanctity of the process by the Government helping out a little




bit in terms of testing, and what not.  The company would be



delighted if on a product costing a couple of hundred dollars






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                                                        187




the Government would kick in a couple of hundred-thousand




dollars in tests.  But as a taxpayer, I'm not sure that is the




best solution.




          What I would like to do today rather than try to




give suggestions to you as to what processes it would take




or what cutoffs there should be, or whether we are talking




about small-business exemptions of $5 million or  $10 million




or small amounts, or small volume of those in kilos, is to




suggest the following to Jackie:




          As an adjunct to your committee report, there might




be a desirability for having a special form.  I noticed that




it was Paul Danels suggesting this morning something about a




special form on this particular question of small business




overlapping research and development, overlapping small




volume.   I say this because Blake is going to be inundated




with questions of confidentiality and validation  — all of




which are going to take a lot of time in the short time that




he has left.




          I am concerned that this very important question




involving the many, many small companies that are notoriously




very poor at taking care of themselves will somehow be




"swept under the rug."   It wouldn't be done deliberately




but just in that process of "let's see what happens."




          I suggest that there might be an occasion perhaps




for a special meeting on the record in any way that anybody






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 1    wants to have it, at which there would be an attempt to  look




 2    at the various ways of making distinctions, the various




 3    approaches to this problem, having participants of  small



 4    businesses, the EPA and environmentalists, and anybody who




 5    wants to go with this.




 6              This is because if you think about it, the goal of




 ?    the act as I see it is really to protect society from the




 8    things that helped get the act  sponsored in the first




 9    place — like Kepone, which was producing over a million




10    pounds per year, vinyl chloride and the abestos problems;




11    PCB's, DDT and other such things, with none of them being in



12    the kinds of quantities that we are talking about.




13              These are in the hundreds^ofr-billions-rbf^pounds




14    range; and I think of the burden that would be inflicted;on



15    these small companies, most of  whom simply would not do  it.




16    You are not going to run tens of millions of dollars worth  of




17    tests on those products that you make a couple of hundred




18    bucks out of.  They will simply get out of the market and we




19    will all be the losers for it.




20             The: best' way of dealing with these companies that




21    produce only a tiny fraction of all of the chemicals used in




22    the United States, and which are very significant to our




23    economy and very significant in the work force, would be that




24    this problem should be approached in some way a little bit




25    more thorough and -workmanlike than we are likely to have in





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                                                       189





the present situations just in the public hearing.  I would




welcome any comments and suggestions you have on this.  I




feel this is an area that merits some attention.




          CHAIRMAN PREUSS:  Mr. Miller, I'd like to ask you




one question:  Why do you and your client assume auto-




matically that they would not qualify as a research




chemical?




          MR. MILLER:  Because we have quite a number of




them that have been 10, 25 and 50-gram amounts, that are  made




for commercial purposes.  They are not made for R&D.  They




are used, as an example, for making the  light-emitting




diodes.  You take the tiniest amounts, put it into the




doping or impurity agent and it completely changes the




properties.  That is not R&D.




          CHAIRMAN PREUSS:  That's true.  Is it true for  the




general list of 2500?




          MR. MILLER:  He's safe from the 2500 because these




are going into inventory.  But it is a significantly high




proportion of the work each year — yes.




          DR. SHERMAN:  May I ask what the yearly sales of




the Cerae Company is?




          MR. MILLER:  Approximately $2 million, only.




          DR. SHERMAN:  That is not terribly small.




          MR. MILLER:  But a small business in the chemical




industry is probably somewhere between $50 million and





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                $100 million.  Remember this is an $135-billion tc
                $140-billion industry in which the larger companies are in




                the multibillion-dollar range, a company in the million-




                dollar range even if it employs 35 employees for example —




                          DR. SHERMAN:  That's a pretty good return.




                          MR. MILLER:  When you are dealing with gydelium,




                erbium and radium, it is your development costs which are




                important — not your —



                          DR. SHERMAN:  I understand your problem, but I




                wonder what would happen if you were doing just small




                amounts, if you were manufacturing just small amounts of




                dioxin, what would happen to your people?



                          MR. MILLER:  It's an interesting point that




                everytime you raise this question — and I raise the same



                question dealing with them.  I ask them:  "What would happen




                if you are manufacturing only a small amount of dioxin,




                but of course nobody manufactures dioxin on purpose.




                          If you are looking over where the problems have




                been in terms of chemical pollution, I am at a loss to come




                up with any significant examples of this.  I do not think




                this society will be greatly improved — if at all — by




                having these little things removed from production.  And yet,



                I think the cost will be quite significant.




                          If there were really significant hazards — like




                this where people often think of Kepone as being of small





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volume.  Well, it wasn't.  It was a million pounds a year.




          DR. SHERMAN:  But it started out as small volume.
                          MR. MILLER:  Everything starts out as small
                volume.
                          DR. SHERMAN:  That's exactly my point.  They all




                start out —




                          MR. MILLER:  The legislative history suggests a




                way of dealing with this.  Magnuson, on the Senate floor,




                suggested using significant new uses in dealing-: with




                something that goes over low; volume.  If it goes!:over: a




                certain "trigger" or  "threshhold" to require  a significant




                new use, then you can invoke all of the procedures that you



                want to.




                          CHAIRMAN PREUSSt  I'm not sure we want  to get into




                a lengthy discussion on this issue as there are other points




                of clarification.  I think the points you are making are




                quite clear.




                          MR. MILLER:  I want a formura for this rather than




                trying to discuss the substance right here.




                          CHAIRMAN PREUSS:  I understand.  Are there other




                questions?




                          MR. BILES:  I am aware that SOCMA is preparing




                comments on this.  You may want to get together with them.




                          MR. MILLER:  We do not really agree with SOCMA1s




                comments on this.





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                        MR. BILES:   Okay.
 1




 2             CHAIRMAN  PREUSS:   Jackie?




 3             MS. WARREN:   I  just  wanted to say that in the




 4   general discussion  we  had on the proposed regulations,  we couL




 5   suggest to EPA  that they  establish some criteria for deter-




 6   mining under what conditions this information should be




 7   required, and if they  did that they might come up with




 8   something that  would solve  these kinds of problems.




 9             The difficulty  I  have is with regard to exemptions,




10   with quantity.  You really  don't know how to get the toxic




11   ones when they  are  there.  You just take the chance. There




12   is some question about notifying people even when they  are




13   into chemicals  — notifying people that they are going  to be




14   exposed to it-that  they are.   There has to be some way to




15   determine that  they are hazardous and at least tell those




16   people.




17             One should draw the  line — just make the assumption




18   they are diminimus  —  just  assuming a diminimus risk when it




19   might not be the case. There  has to be some way of dis-




20   tinguishing out the hazardous  ones from the non-hazardous.




21             MR. MILLER:   We would be agreeable to doing




22   anything that was reasonable in terms of looking at this




23   problem.




24             MS. WARREN:   Does your client do any of the LD 50's




25   on the chemicals?





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 1             MR. MILLER:  No.   It does not try  to do any of  its




 2   own testing at all.



 3             MS. WARREN:  Do they just not do any testing?




 4             MR. MILLER:  They  use  the standard chemical package




 5   for these — standard literature on the subject.  That is




 6   about the extent of that.  You see, you are  dealing with  such




 7   expensive ones.  They are dealing with such  refined matters,




 8   the chemicals are  so expensive per unit that great care is



 9   taken in how you handle  them —  even  apart from  the toxicity,




10   the use of  "glove  boxes" and everything of the sort.  So  the




n   toxicity problem in that case is not  really  serious.




12             MS. WARREN:  I could certainly  understand what  the




13   standard there would be  on new chemicals, or are you people




14   not dealing with new chemicals?




15             MR. MILLER:  They  are  dealing with chemicals that




16   would not be on the inventory, in which they would be taking




17   and making  them into an  extra degree  of purity or special




18   sizings, or maybe  putting a  compound  together that has not




19   been put together  before —  but  with  standard properties-,- a




20   new type of ferrous oxide, or something;  something of new



21   properties.




22             CHAIRMAN PREUSS:   I think the problem  you are




23   raising here is not one  of toxicology or  health, or




24   whatever.   It is a problem that  we have discussed in the




25   past — the economic burden  imposed on a  small manufacturer,





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or a manufacturer of a small-volume chemical — either  way




you want to define it.




          MR. MILLER:  That's right.




          CHAIRMAN PREUSS:  Thank you very much.




          MR. MILLER:  Thank you.




          CHAIRMAN PREUSS:  Is there another question or




comment from the audience?




                          (No response)




          DR. SHERMAN:  Peter, I don't know if it  is




appropriate or not, but my last suggestion that if a company




is going to have relief in an economic matter they ought  to




be able to affirm that they will be responsible for any health




or safety effects, both corporately and privately, as




corporate managers.  This is one consideration which I  think




ought to be taken up.




          CHAIRMAN PREUSS:  We have in the past made a  recom-




mendation as a Committee about the problem of small businesses




That is point number one.  Point number two is that you will




receive a draft from Jackie concerning the comments on  PMN.




I think it would be entirely appropriate  if you felt you




wanted to include that as part of your comments.   Please  do so




This is by way of suggestion.  All right.  I thank you  all




very much, and the meeting is closed.




           (Whereupon, at 4:18 p.m., the hearing was




adjourned.)





                    Acme Reporting Company
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