[Federal Register Volume 60, Number 56 (Thursday, March 23, 1995)]
[Proposed Rules]
[Pages 15264-15268]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7198]



=======================================================================
-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Chapter I

[AD-FRL-5177-3]
RIN 2060-AE24


Consumer and Commercial Products: Schedule for Regulation

AGENCY: U.S. Environmental Protection Agency (EPA).

ACTION: Notice of the consumer and commercial product category list and 
schedule for regulation.

-----------------------------------------------------------------------

SUMMARY: This notice publishes a list of consumer and commercial 
products identified for possible regulation and a schedule for the 
promulgation of such regulations. Under section 183(e) of the Clean Air 
Act (CAA), the EPA is required to conduct a study of volatile organic 
compounds (VOC) emissions from the use of consumer and commercial 
products to assess their potential to contribute to violations of the 
national ambient air quality standard (NAAQS) for ozone, and to 
establish criteria for products subject to regulation under that 
section. Upon completion of the study, the EPA is required to submit a 
Report to Congress documenting the results of the study. Under section 
183(e), the EPA is required to list and schedule for regulation those 
categories of products that the Administrator determines account for at 
least 80 percent of the total VOC emissions, on a reactivity-adjusted 
basis, from consumer and commercial products in areas classified as 
nonattainment for ozone. The consumer and commercial product list and 
schedule for regulation published in today's notice meets this 
obligation.
    Although today's notice identifies consumer and commercial products 
that potentially could be regulated, this list and schedule may be 
amended as further information becomes available or is submitted to the 
EPA. The public will have an opportunity to comment on the listing and 
possible regulation of a particular product at the time the EPA 
proposes to regulate that particular product. Thus, today's action does 
not represent final agency action. Final agency action occurs upon 
publication of a final regulation for each product.

ADDRESSES: Docket. Docket No. A-94-65 contains information considered 
by the EPA in development of the consumer and commercial products study 
and subsequent schedule for regulation. In addition, the public may 
submit to the docket information or comments regarding today's notice 
and the Report to Congress. The docket is available for public 
inspection and photocopying between 8 a.m. and 5:30 p.m. Monday through 
Friday at the EPA's Air and Radiation Docket and Information Center 
(6102), room M-1500, Waterside Mall, 401 M Street, SW., Washington, DC 
20460. The telephone number is (202) 260-7548 and the facsimile number 
is (202) 260-4400. A reasonable fee may be charged for copying docket 
materials.
    Report to Congress. The Consumer and Commercial Product Report to 
Congress is available from Docket No. A-94-65 at the above address or 
from the Office of Air Quality Planning and Standards (OAQPS) 
Technology Transfer Network (TTN) which is a network of electronic 
bulletin boards operated by the EPA. The service is free, except for 
the cost of the telephone call. The modem telephone number is (919) 
541-5742. The modem provides up to a 14,400 baud connection. If more 
information on the TTN is needed, call the HELP line at (919) 541-5384.

FOR FURTHER INFORMATION CONTACT: For information concerning the Report 
to Congress and schedule for regulation, contact Mr. Bruce Moore, 
Coatings and Consumer Products Group, Emission Standards Division (MD-
13), U.S. Environmental Protection Agency, Research Triangle Park, 
North Carolina 27711, telephone number (919) 541-5460.

SUPPLEMENTARY INFORMATION:

I. Background

    This notice describes the EPA's initial efforts to respond to 
requirements of Section 183(e) of the CAA and to a court order. These 
efforts also respond to concerns expressed by representatives of State 
and local air pollution control agencies and by consumer products 
industry representatives. The persistence of the ground-level ozone 
problem has caused State and local air pollution agencies to seek 
emission reductions beyond those which have been obtained through 
regulation of the conventional mobile and stationary sources of 
emissions. As a result, several agencies are adopting rules to regulate 
various household consumer products. Representatives of the consumer 
products industry have expressed concern that differences in State and 
local requirements for consumer products could disrupt the national 
distribution network for consumer products and has urged the EPA to 
issue rules for consumer products to provide consistency across the 
country. States who need emission reductions are also supportive of an 
EPA rulemaking which will assist them in their efforts toward 
achievement of ozone attainment.
    In response to these concerns, the EPA consulted with consumer 
product manufacturers and other interested parties to determine which 
products would be the most amenable to an expedited regulation that 
could achieve significant VOC emission reductions without significant 
effects on consumer satisfaction or price of the products. Industry 
representatives identified a group of consumer products that meet these 
criteria and proposed to EPA emission requirements for them that have 
already been achieved in California (see Section III.C). High quality 
products meeting these standards are being sold in California with no 
significant effect on consumer prices. The EPA plans to propose the 
rule covering these products as part of the first group of categories 
listed for regulation.
    The relevant statutory provision is contained in Section 183(e) of 
the CAA. Through this provision, Congress required the EPA to conduct a 
study of emissions of VOC into the ambient air from consumer and 
commercial products. The term ``consumer and [[Page 15265]] commercial 
products'' is defined to mean:

    * * * any substance, product (including paints, coatings, and 
solvents), or article (including any containers or packaging) held 
by any person, the use, consumption, storage, disposal, destruction, 
or decomposition of which may result in the release of volatile 
organic compounds * * *

The statutory definition of consumer and commercial products includes a 
much broader array of products than those usually considered to be 
consumer products (e.g., personal care products, household cleaning 
products, or household pesticides). The statutory definition of 
consumer and commercial products encompasses all VOC-emitting products 
used in the home, by businesses, by institutions, and in a wide range 
of industrial manufacturing operations.
    The stated objectives of the study are (1) to determine the 
potential of VOC emissions into the ambient air from consumer and 
commercial products to contribute to ozone levels which violate the 
NAAQS for ozone; and (2) to establish criteria for regulating consumer 
and commercial products.
    Upon completion of the study, the EPA is required to submit a 
Report to Congress that documents the results of the study. The study 
and Report to Congress required under Section 183(e) are described in 
section II of this notice.
    In establishing criteria for regulating products, the Administrator 
is directed to consider the following: the uses, benefits, and 
commercial demand of products; the health or safety functions served by 
such products; whether products emit highly reactive VOC into the 
ambient air; the cost-effectiveness of controls; and the availability 
of alternatives which are of comparable costs, considering health, 
safety, and environmental impacts. The development and application of 
criteria, and the resultant ranking of products based on these and 
other considerations, are described in sections III.B and III.C of this 
notice.
    Upon completion of the study and submission of the Report to 
Congress, the EPA is required to list those categories of products that 
are determined, based on the study, to account for at least 80 percent 
of the total VOC emissions, on a reactivity-adjusted basis, from 
consumer and commercial products in areas that violate the NAAQS for 
ozone. The EPA is required to divide the list into four groups 
establishing priority for regulation. Every 2 years following 
publication of the list, the EPA is required to regulate one group 
until all four groups are regulated. The consumer and commercial 
product list and schedule for regulation is presented in section III.C 
of this notice.
    As noted earlier, the EPA is presenting this list and schedule at 
this time as required by the CAA and court order. However, the EPA may 
amend the schedule and the products listed in particular groups as 
further information becomes available. For example, as one of the 
considerations specifically noted by Congress in section 
183(e)(2)(B)(iv), cost-effectiveness of control is an important factor, 
and one for which the EPA had relatively limited information. In moving 
forward to develop specific regulations, the EPA will evaluate new 
information on cost-effectiveness as well as the other criteria and 
may, in the process, reassess the product listing and schedule.

II. Study and Report to Congress

A. Intent and Structure

    The primary intent of the study and Report to Congress is to meet 
the objectives of section 183(e) of the CAA which requires EPA to 
inform members of Congress, and other interested parties, of relevant 
issues surrounding VOC emissions from the use, consumption, storage, 
disposal, destruction, or decomposition of consumer and commercial 
products. The study examines the potential of VOC emissions from 
consumer and commercial products to contribute to ozone nonattainment; 
documents the development of a reliable and comprehensive emissions 
inventory; identifies and evaluates opportunities for achieving 
emission reductions; examines the fate of consumer and commercial 
product-related VOC in wastewater and in landfills; evaluates the use 
of various systems of regulation, including economic incentives; and 
provides supporting rationale for the establishment of criteria for 
prioritizing products for regulation.
    The study is composed of six volumes, including:

(1) Report to Congress (EPA-453/R-94-066-a)
(2) Comprehensive Emissions Inventory (EPA-453/R-94-066-b)
(3) Fate of Consumer Product VOC in Landfills (EPA-453/R-94-066-c)
(4) Fate of Consumer Product VOC in Wastewater (EPA-453/R-94-066-d)
(5) Economic Incentives to Reduce VOC Emissions from Consumer and 
Commercial Products (EPA-453/R-94-066-e)
(6) Aerosol Products and Packaging Systems (EPA-453/R-94-066-f)

B. Findings of the Consumer and Commercial Products Study

    The Report to Congress highlights the following key findings of the 
study:
    1. The scope of consumer and commercial products subject to section 
183(e) is very broad and includes not only household consumer products 
but many products used commercially and in industrial manufacturing 
operations. This vast universe of products ranges from underarm 
antiperspirants and deodorants to coatings used in the manufacture of 
automobiles.
    2. Consumer and commercial products, while individually small 
sources of VOC emissions, contribute significantly to the ozone 
nonattainment problem. In 1990, consumer and commercial products 
emitted approximately 6 million tons of VOC nationwide, or about 28 
percent of all man-made VOC.
    3. Opportunities exist for VOC emission reductions from consumer 
and commercial products through product reformulation, substitution, 
repackaging, and other control measures. With regard to consumer 
products, California and other States have issued regulations which 
limit the VOC content of approximately two dozen categories of 
products. These regulations were developed over several years with 
extensive interaction with the consumer products industry. The EPA has 
estimated that the VOC content limitations imposed by the State 
regulations, if applied nationwide, may result in an overall VOC 
reduction of approximately 25 percent from the 1990 baseline for those 
categories.
    4. In developing control measures for consumer products, emission 
reductions must be balanced with product efficacy, consumer acceptance, 
and economic impacts.
    5. A number of systems can be employed to implement the various 
control measures available under Section 183(e). These include product 
registration, labeling, self-monitoring, reporting, prohibitions, 
limitations, and economic incentives.
    6. Under section 183(e)(3)(C), the EPA may issue control techniques 
guidelines (CTG) in lieu of regulations where the Administrator 
determines that the CTG will be substantially as effective in reducing 
VOC emissions in nonattainment areas. In many cases, CTG can be 
effective regulatory approaches to reduce emissions of VOC in 
nonattainment areas--with the advantage of not imposing control costs 
on attainment areas. For example, in the case of small volume consumer 
products that are widely used (e.g., [[Page 15266]] personal care 
products), a CTG might not be effective at reducing VOC emissions 
because of difficulties in enforcement. However, for other cases (and 
for a potentially large share of nonattainment area VOC emission 
sources), enforcement and compliance may be effectively focused at the 
source of the VOC emissions, be it the point of manufacture, the point 
of end-use, or both. For example, VOC emissions from commercial 
products used in industrial settings could be controlled effectively 
with a CTG that targeted emissions at the point of end-use, as the 
population of end-users is likely to be readily identifiable.
    7. Economic incentive programs appear to be viable alternatives to 
traditional strategies to reduce VOC emissions from consumer and 
commercial products. Certainty of emission reductions, minimization of 
control and/or implementation costs, technological innovation, and 
flexibility afforded by the program are all objectives which should be 
considered in selecting a strategy. The best regulatory approach for 
consumer and commercial products depends upon the particular universe 
of products being regulated and the priority of objectives.
    8. Ideally, ozone control strategies should be based not only on 
mass VOC and NOX emissions but also on the relative photochemical 
reactivity of individual species, the VOC-to-NOX ratios prevalent 
in specific airsheds, and other factors which could work together to 
minimize the formation of ozone with minimum adverse impacts. However, 
reactivity data on VOC, especially those compounds used to formulate 
consumer and commercial products, are extremely limited. Better data, 
which can be obtained only at great expense, are needed if the EPA is 
to consider relative photochemical reactivity in development of 
regulations. In the meantime, a practical approach is to make 
regulatory determinations on the basis of mass VOC emissions.
    The EPA considered reactivity to a limited extent, however, in 
prioritizing consumer and commercial product categories for regulation. 
In an effort to meet the requirements of section 183(e), and being 
aware of the limitations and uncertainties surrounding the reactivity 
issue, the EPA employed available information on reactivity to (1) 
consider those products which emit ``highly-reactive'' compounds; and 
(2) adjust mass VOC emission estimates to account for relative 
reactivity of product ingredients. The EPA's methodology for this 
limited application of reactivity is discussed in detail in the Report 
to Congress.
    9. A widely held misconception is that most aerosol products employ 
chlorofluorocarbons (CFC) as propellants and contribute to 
stratospheric ozone depletion. In 1978, the EPA banned the use of CFC 
in virtually all aerosol products, the exceptions being medical 
products, military specification products, and aviation products. 
Hydrocarbons (propane, butane, and isobutane), which are VOC, are 
currently the predominant propellant compounds. Aerosol products 
function as systems composed of the product, the propellant, the valve, 
and the container. Hydrocarbon propellants not only expel the product 
from the container but serve as diluents in the product formulation.

III. Consumer and Commercial Product Schedule for Regulation

A. Criteria for Regulating Products Under Section 183(e)

    Although the EPA has discretion to determine which products are 
considered to account for 80 percent of VOC emissions, as a preliminary 
step, the EPA relied on numerical rankings to ensure that the highest 
priority products would be regulated. Section 183(e)(2)(B) of the CAA 
instructs the EPA to develop criteria for prioritizing consumer and 
commercial products for regulation. In establishing these criteria, the 
EPA is required to consider the following factors:
    (1) Uses, benefits, and commercial demand,
    (2) Health and safety functions,
    (3) Products which emit highly reactive VOC,
    (4) Cost-effectiveness of control, and
    (5) Availability of alternatives.
    The following eight criteria for ranking consumer and commercial 
products were developed:
    (1) Utility,
    (2) Commercial demand,
    (3) Health and safety functions,
    (4) Emissions of highly reactive VOC,
    (5) Availability of alternatives,
    (6) Cost-effectiveness of controls,
    (7) Magnitude of annual VOC emissions, and
    (8) Regulatory efficiency and program considerations.
    Criterion 1 (Utility) considers uses and benefits, and commercial 
demand is addressed by Criterion 2. The remaining four factors are 
addressed individually by Criteria 3 through 6. Criteria 7 and 8 
(magnitude of emissions and regulatory efficiency) reflect additional 
considerations not specifically prescribed in the CAA. The EPA has 
exercised its discretion to include these criteria, as the EPA believes 
they are important in prioritizing product categories for regulation. 
The EPA's interpretation of each of the five factors and the rationale 
and intent of each of the eight criteria are discussed in detail in the 
Report to Congress.

B. Preliminary Ranking of Product Categories

    Criteria 1 through 7 were developed such that each product category 
could be evaluated numerically by assigning a score of 1 to 5 for each 
of the criteria, with a higher score indicating a higher priority for 
regulation.
    The preliminary ranking was based on numerical scoring of criteria 
1 through 7 for each product category. This process involved objective 
and subjective considerations. Criteria 2, 4, 6, and 7 are objective in 
nature and could be scored quantitatively based on annual sales, VOC 
emissions, and cost of control. Exercise of Criteria 1, 3, and 5 may 
include some subjective considerations. Scoring of these criteria could 
be affected by one's background, knowledge of the category, or other 
factors. In order to ensure consistency and fairness, an independent 
panel was convened to assist the EPA in application of these criteria.
    The National Air Pollution Control Techniques Advisory Committee 
(NAPCTAC), established in 1968 by the Surgeon General, is an advisory 
group which has provided, and continues to provide, the EPA with 
independent views on EPA actions related to the air program. The 
NAPCTAC consists of the Director, Office of Air Quality Planning and 
Standards, or his designee, as chairperson and 11 members appointed by 
the EPA's Deputy Administrator. Members are selected from industry, 
State and local agencies, public interest groups, and academia.
    Because of the balance afforded by the diversity of such a group, 
the NAPCTAC was considered a convenient choice for the panel. 
Accordingly, the panel was convened in July 1994 in Durham, North 
Carolina, for the purpose of assigning preliminary scores for Criteria 
1 through 7 to each of the product categories. Results of the 
preliminary scoring exercise are available in the docket.

C. Application of Criterion Eight: Regulatory Efficiency and Program 
Considerations

    Once the initial ranking of products based on exercise of Criteria 
1 through 7 was completed, the EPA exercised Criterion 8, regulatory 
efficiency and program considerations, to identify which products 
should be considered to account for 80 percent of VOC 
[[Page 15267]] emissions and prioritized in the schedule for 
regulation.
    As required by section 183(e), the EPA grouped the listed 
categories of consumer and commercial products into four groups, one of 
which will be regulated every 2 years. Although the statute does not 
require that the 80 percent be divided into four equal groups, the EPA 
placed product categories into the four groups listed in Table 1 as 
equally as possible for purposes of workload management. The EPA also 
attempted to reduce emissions as early as possible, given these 
workload considerations. Nearly two-thirds of the emissions from 
consumer and commercial products are addressed by the first two groups 
of categories.

   Table 1.--Consumer and Commercial Products Schedule for Regulations  
------------------------------------------------------------------------
                                       Schedule for                     
                                        regulation      Emissions Mg/yr 
------------------------------------------------------------------------
Group I:                                                                
    Consumer products (24                                               
     categories)a.................               1997            301,347
    Shipbuilding and repair                                             
     coatings.....................               1997             23,302
    Aerospace coatings............               1997            165,892
    Architectural coatings........               1997            362,454
    Autobody refinishing coatings.               1997             85,509
    Aerosol spray paints..........               1997             58,521
    Wood furniture coatings.......               1997             88,109
                                                      ------------------
                                                               1,085,134
Group II:                                                               
    Lithographic printing                                               
     materials....................               1999            545,454
    Industrial cleaning solvents..               1999            232,890
    Flexible package printing                                           
     materials....................               1999            136,364
    Flat wood paneling coatings...               1999             19,618
                                                      ------------------
                                                                 934,326
Group III:                                                              
    Miscellaneous metal products                                        
     coatings.....................               2001            198,545
    Large appliance coatings......               2001             22,994
    Fiberglass boat manufacturing                                       
     materials....................               2001             11,000
    Miscellaneous industrial                                            
     adhesives....................               2001            185,175
                                                      ------------------
                                                                 417,714
Group IV:                                                               
    Paper, film, and foil coatings               2003             92,064
    Letterpress printing materials               2003             25,636
    Plastic parts coatings........               2003             20,000
    Metal furniture coatings......               2003             97,220
    Auto and light truck assembly                                       
     coatings.....................               2003             68,182
    Petroleum drycleaning solvents               2003             49,091
                                                      ------------------
                                                                 352,193
                                                      ==================
    Emissions addressed by                                              
     schedule.....................  .................          2,789,367
    Percentage of total (3,481,804                                      
     Mg/yr).......................  .................               80.1
------------------------------------------------------------------------
aProduct categories included in ``Consumer products (24 categories)''   
  grouping:                                                             
Aerosol cooking sprays                                                  
Air fresheners                                                          
Auto windshield washer fluids                                           
Bathroom and tile cleaners                                              
Carburetor and choke cleaners                                           
Charcoal lighter materials                                              
Dusting aids                                                            
Engine degreasers                                                       
Fabric protectants                                                      
Floor waxes and polishes                                                
Furniture maintenance products                                          
General purpose cleaners                                                
Glass cleaners                                                          
Hair sprays                                                             
Hair mousses                                                            
Hair styling gels                                                       
Household adhesives                                                     
Nonagricultural insecticides                                            
Laundry prewash treatments                                              
Laundry starch products                                                 
Nail polish removers                                                    
Oven cleaners                                                           
Shaving creams                                                          
Underarm antiperspirants and deodorants                                 


[[Page 15268]]

    Group I includes product categories some of which have regulatory 
activities (rules or guidelines) already underway. The remaining 
categories are divided among Groups II, III, and IV according to 
numerical rank. ``Consumer products (24 categories)'' represent an 
aggregation of two dozen individual household, personal care, and 
automotive products which are currently regulated in one or more 
States. They are products used in home, office, institutional, or 
similar settings. In order to achieve VOC reductions required under 
their State Implementation Plan (SIP), many States have declared 
intentions to develop rules to reduce VOC emissions from these 
particular categories as part of their attainment plans. The EPA has 
scheduled these categories for regulation as part of Group I.
    With one exception, all the other categories in Group I received 
relatively high numerical scores in the preliminary ranking. The one 
exception is shipbuilding and repair coatings, which are included in 
Group I despite a lower numerical score because a CTG for this category 
is currently under development pursuant to section 183(a) of the CAA. 
Under section 183(e)(3)(C), the Administrator may issue CTG in lieu of 
regulations if it is determined that a CTG will be substantially as 
effective in reducing VOC emissions. As a CTG is developed, the EPA 
will assess the projected emission reductions to make this 
determination. The EPA believes that the issuance of a CTG for 
shipbuilding and repair coatings to satisfy the requirements of both 
sections 183(a) and 183(e) would promote regulatory efficiency. Two 
other categories in Group I for which CTG are being developed are 
aerospace coatings and wood furniture coatings. As with the 
shipbuilding and repair coatings CTG, determinations will be made as to 
whether these CTG satisfy the requirements of section 183(e)(3)(c).
    While the regulatory schedule presented in today's notice includes 
product categories that account for 80 percent of VOC emissions in 
nonattainment areas, as directed in the CAA, the EPA recognizes that 
the list of product categories included may need to be amended as 
regulatory development proceeds or as new information becomes 
available.
    As individual products and categories are further assessed and 
comments are submitted during the rulemaking process, the EPA's 
evaluation of the criteria as applied to each category may change. For 
example, Criterion 6, cost-effectiveness of controls, reflects the 
emphasis Congress placed on identifying ``(t)hose consumer and 
commercial products which are subject to the most cost-effective 
controls.'' (Section 183(e)(2)(B)(iv)). However, the EPA had relatively 
limited data on the cost-effectiveness of control for most products. As 
the EPA moves forward in implementing the emission limitations required 
by section 183(e), it will reevaluate and reassess the ranking and 
schedule for regulation based on additional information developed on 
cost-effectiveness.
    As a result, categories may be removed from the list, and remaining 
unlisted categories may be considered for listing. Table 2 shows 
significant categories within the scope of section 183(e) which are not 
being listed at this time for regulation. Any changes made to the 
consumer and commercial products regulatory schedule will be published 
in the Federal Register.

           Table 2.--Significant Categories Outside 80 Percent          
------------------------------------------------------------------------
                                                               Baseline 
                                                               emissions
                                                                (Mg/yr) 
------------------------------------------------------------------------
Agricultural pesticides.....................................      25,050
Rotogravure publication printing materials..................      18,182
Nonautomotive paint thinners................................       9,055
Cutback asphalt paving materials............................     116,727
Synthetic fiber spinning solvents...........................      42,000
Metal cleaning (degreasing) solvents........................      32,727
Fabric printing, coating, and dyeing materials..............      42,000
Metal can coatings..........................................      40,909
Tire manufacturing cements..................................      24,000
Magnetic tape coatings......................................       5,000
Metal coil coatings.........................................      19,636
Roofing materials...........................................      16,840
Magnet wire coatings........................................       7,407
Mold release agents.........................................      68,545
Remaining consumer products.................................     154,714
------------------------------------------------------------------------

IV. Administrative Requirements

A. Docket

    The docket is an organized file of information considered by the 
EPA in the development of an action. Although this action is not a 
rulemaking, a docket has been established for the consumer and 
commercial product study and subsequent product category list and 
schedule for regulation. The docket number is A-94-65. The purpose of 
this docket is to allow interested parties a means to access relevant 
documents not otherwise available. In addition, the public may submit 
to the docket information or comments regarding today's notice and the 
Report to Congress. The docket may be inspected at the EPA's Air and 
Radiation Docket and Information Center, listed in the ADDRESSES 
section of this notice.

B. Regulatory Requirements

1. General
    Because today's notice is not a rulemaking, the EPA has not 
prepared an assessment of the potential costs and benefits pursuant to 
Executive Order 12866, nor an economic impact analysis pursuant to 
section 317, nor a regulatory flexibility analysis pursuant to the 
Regulatory Flexibility Act (Pub. L. 96-354, September 19, 1980). Also, 
this notice is not subject to the Paperwork Reduction Act of 1990, 44 
U.S.C. 3501 et seq.
2. Executive Order and Office of Management and Budget Review
    Under Executive Order 12866 (58 FR 51735, October 4, 1993), the EPA 
must determine whether regulatory actions are significant and therefore 
subject to Office of Management and Budget (OMB) review and the 
requirements of the Executive Order. The Order defines ``significant 
regulatory action'' as one that is likely to lead to a rule that may:
    (1) Have an annual effect on the economy of $100 million or more, 
or adversely and materially affect a sector of the economy, 
productivity, competition, jobs, the environment, public health or 
safety, or State, local, or tribal governments or communities;
    (2) Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs, or the rights and obligation of recipients 
thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities or the principles set forth in the 
Executive Order.
    Pursuant to the terms of the Executive Order, OMB has notified the 
EPA that it considers this a ``significant regulatory action'' within 
the meaning of the Executive Order because it is likely to lead to 
rules which may meet one or more of the criteria. The EPA has submitted 
this action to OMB for review. Changes made in response to OMB 
suggestions or recommendations will be documented in the public record.

    Dated: March 15, 1995.
Carol M. Browner,
Administrator.
[FR Doc. 95-7198 Filed 3-22-95; 8:45 am]
BILLING CODE 6560-50-P