[Federal Register Volume 61, Number 64 (Tuesday, April 2, 1996)]
[Proposed Rules]
[Pages 14531-14543]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-8005]



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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 59

[AD-FRL-5451-7]
RIN 2060-AF62


National Volatile Organic Compound Emission Standards for 
Consumer Products

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule and notice of public hearing.

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SUMMARY: The proposed standards would reduce emissions of volatile 
organic compounds (VOC) from certain categories of consumer products. 
The proposed standards implement Section 183(e) of the Clean Air Act 
(CAA) and are based on the Administrator's determination that VOC 
emissions from the use of consumer products can cause or contribute to 
ozone levels that violate the national ambient air quality standards 
(NAAQS) for ozone. Ozone is a major component of smog which causes 
negative health and environmental impacts when present in high 
concentrations at ground level. These proposed standards would reduce 
VOC emissions by 90,000 tons per year, by requiring manufacturers, 
importers, and distributors to limit the VOC content of consumer 
products. The proposed requirements were developed in consultation with 
major stakeholders and are largely consistent with a proposal by 
representatives of the affected industry and are similar to existing 
standards in certain States. To date, many companies have taken steps 
to reformulate their products to emit less VOCs.
    A public hearing will be held, if requested, to provide interested 
persons an opportunity for oral presentation of data, views, or 
arguments concerning the proposed standards for consumer products.

DATES: Comments. Comments must be received on or before June 3, 1996.
    Public Hearing. Anyone requesting a public hearing must contact the 
EPA no later than May 2, 1996. If a hearing is held, it will take place 
on May 17, 1996, beginning at 10:00 a.m.

ADDRESSES: Comments. Comments should be submitted (in duplicate, if 
possible) to: Air and Radiation Docket and Information Center (6102), 
Attention: Docket No. A-95-40, U.S. Environmental Protection Agency, 
401 M Street SW., Washington, DC 20460. The EPA requests that a 
separate copy also be sent to the contact person listed below.
    The docket is located at the above address in Room M1500, Waterside 
Mall (ground floor), and may be inspected from 8:00 a.m. to 5:30 p.m., 
Monday through Friday; telephone number (202) 260-7548, FAX (202) 260-
4400. A reasonable fee may be charged for copying docket materials.
    Public Hearing. If anyone contacts the EPA requesting a public 
hearing by the required date (see DATES), the hearing will be held at 
the EPA Office of Administration Auditorium in Research Triangle Park, 
North Carolina 27711. Persons interested in presenting

[[Page 14532]]
testimony or attending the hearing should contact Ms. Kim Teal at (919) 
541-5580.
    A verbatim transcript of the hearing and any written statements 
will be available for public inspection and copying during normal 
working hours at the EPA's Air and Radiation Docket in Washington, DC 
(see ADDRESSES section of this preamble).

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

SUPPLEMENTARY INFORMATION: Copies of the Proposed Regulatory Text can 
be obtained through the Technology Transfer Network (TTN). The TTN is 
one of the EPA electronic bulletin boards. The TTN provides information 
and technology exchange in various areas of air pollution control. The 
service is free except for the cost of a phone call. Dial (919) 541-
5472 for up to a 14,000 bps modem. Select (1) TTN Bulletin Board, (2) 
Clean Air Act Amendments, and (3) Recently Signed Rules. If more 
information on TTN is needed, contact the systems operator at (919) 
541-5384.
    Proposed Regulatory Text. The proposed regulatory text is not 
included in this Federal Register notice, but is available in Docket 
No. A-95-40, or by written or telephone request from the Air and 
Radiation Docket and Information Center (see ADDRESSEES).
    Technical Support Document. The Technical Support Document (TSD) 
for the proposed standards may be obtained from the Air and Radiation 
Docket and Information Center (see ADDRESSEES).
    Economic Impact Analysis (EIA). The EIA for the proposed standards 
may be obtained from the Air and Radiation Docket and Information 
Center (see ADDRESSEES).
    Preamble Outline. The information presented in this preamble is 
organized as follows:

I. Acronyms and Definitions
    A. Acronyms
    B. Definitions
II. Background
    A. Need for Proposed Rule
    B. Consumer Products Survey
III. Summary of Proposed Standards
IV. Summary of Impacts
    A. Environmental and Health Impacts
    B. Energy Impacts
    C. Cost and Economic Impacts
    D. Cost-Effectiveness
V. Rationale for Proposed Standards
    A. Selection of Pollutant
    B. Selection of Best Available Controls (BAC)
    C. Selection of Special Provisions
    D. Selection of the Recordkeeping and Reporting Requirements
    E. Selection of Test Methods
    F. Alternative Regulatory Approaches
VI. Administrative Requirements
    A. Executive Order 12866
    B. Enhancing the Intergovernmental Partnership Under Executive 
Order 12875
    C. Unfunded Mandates
    D. Paperwork Reduction Act
    E. Regulatory Flexibility Act

I. Acronyms and Definitions

    The following acronyms and definitions are provided to aid in 
reading the preamble.

A. Acronyms

ACMC=Automotive Chemical Manufacturers Council
ASC=Adhesive and Sealant Council
ASTM=American Society for Testing and Materials
BAC=best available control(s)
CAA=Clean Air Act
CARB=California Air Resources Board
CSMA=Chemical Specialties Manufacturers Association
CTFA=Cosmetic, Toiletry, and Fragrance Association
CTG=Control Techniques Guidelines
FIFRA=Federal Insecticide, Fungicide, and Rodenticide Act
HVOC=high volatility organic compound
NAA=National Aerosol Association
NAAQS=national ambient air quality standard
OMB=Office of Management and Budget
OMS=Office of Mobile Sources
RFA=Regulatory Flexibility Act
RIA=regulatory impact analysis
SDA=Soap and Detergent Association
SIP=State implementation plan(s)
STAPPA/ALAPCO=State and Territorial Air Pollution Administrators/
Association of Local Air Pollution Control Offices
TCA=1,1,1-trichloroethane
VOC=volatile organic compound(s)

B. Definitions

    Consumer or commercial products are defined in Section 183(e)(1) of 
the CAA as:

    Any substance, product (including paints, coatings, and 
solvents), or article (including any container 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 term does not include fuels or fuel additives 
regulated under Section 211, or motor vehicles, non-road vehicles, 
and non-road engines as defined under Section 216.

    Consumer products are products used by individuals in a household 
setting (e.g., around the home, workshop, garden, garage).
    Commercial products are products used in a variety of commercial, 
institutional, or industrial settings and include products similar in 
nature to consumer products that may be used in various commercial, 
institutional, or industrial applications.

II. Background

A. Need for Proposed Rule

    Exposure to ground-level ozone is associated with a wide variety of 
human health effects, agricultural crop loss, and damage to forests and 
ecosystems. The most thoroughly studied health effects of exposure to 
ozone at elevated levels during periods of moderate to strenuous 
exercise are the impairment of normal functioning of the lungs, 
symptomatic effects, and reduction in the ability to engage in 
activities that require various levels of physical exertion. Typical 
symptoms associated with acute (one to three hour) exposure to ozone at 
levels of 0.12 parts per million (ppm) or higher under heavy exercise 
or 0.16 ppm or higher under moderate exercise include cough, chest 
pain, nausea, shortness of breath, and throat irritation.
    Ground-level ozone, which is a major component of ``smog,'' is 
formed in the atmosphere by reactions of VOC and oxides of nitrogen 
(NOX) in the presence of sunlight. In order to reduce ground-level 
ozone levels, emissions of VOC and NOX must be reduced.
    Section 183(e) of the CAA addresses VOC emissions from the use of 
consumer and commercial products. It requires the EPA to study VOC 
emissions from the use of consumer and commercial products, to report 
to Congress the results of the study, and to list for regulation 
products accounting for at least 80 percent of VOC emissions resulting 
from the use of such products in ozone nonattainment areas. 
Accordingly, in the March 23, 1995 Federal Register, (60 FR 15264) the 
EPA announced the availability of the ``Consumer and Commercial 
Products Report to Congress'' (EPA-453/R-94-066-A), and published the 
consumer and commercial products list and schedule for regulation.
    Volatile organic compound emissions from the use of consumer 
products are not currently regulated at the Federal level. However, 
four States (California, Massachusetts, New York, and Texas) are 
currently enforcing VOC standards for various consumer products. Four 
additional States (Oregon, New Jersey, Rhode Island, and Connecticut) 
have proposed VOC standards for consumer products, and other States are 
currently developing standards. All of these State rules address at 
least some of the

[[Page 14533]]
products covered by the EPA's proposed rule. Representatives of the 
consumer products industry (e.g., CSMA, CTFA, SDA, NAA, ACMC, and ASC) 
have expressed concern that differences in State and local requirements 
for consumer products could disrupt the national distribution network 
for consumer products. They have, therefore, urged the EPA to issue 
rules for consumer products to encourage consistency across the 
country. Many States with ozone pollution problems are also supportive 
of an EPA rulemaking that will assist them in their efforts toward 
achievement of ozone attainment. At least 13 States have included 
anticipated reductions from the Federal consumer products rule as part 
of their plans to reduce VOC emissions by 15 percent by November 1996.
    In response to these concerns, the EPA listed for regulation the 24 
categories of household consumer products addressed by the proposed 
rule. The BAC standards proposed today establish VOC content limits for 
these 24 consumer products. States, however, may promulgate their own 
VOC standards for consumer products if they are at least as stringent 
as Federal rules. In some cases, depending upon their strategy for 
achieving attainment with the NAAQS for ozone, certain States may need 
to promulgate additional, or more stringent standards.

B. Consumer Products Survey

    In order to ensure that the required 80 percent of VOC emissions 
from the use of consumer and commercial products are accounted for in 
the list and schedule for regulation, the EPA developed a comprehensive 
emissions inventory. A significant part of this inventory consists of 
data collected in a survey of consumer products. The survey was 
distributed to over 3,700 manufacturers and marketers of consumer 
products. All of the product categories addressed in this proposed rule 
were covered in the survey. The survey requested detailed information 
about consumer products on a formulation-specific basis including 
product category and form, total VOC and speciated VOC content, and net 
weight sold in 1990. The EPA compiled the survey responses into a data 
base that has provided, in part, the basis for development of these 
proposed consumer products standards. In particular, the data base was 
used to determine demonstrated VOC contents for each category, and to 
estimate the potential emission reduction and cost- effectiveness 
attributable to the proposed standards.

III. Summary of Proposed Standards

    The promulgated rule for the consumer and commercial products 
scheduled for regulation under this proposal will be codified under 40 
CFR Part 59. The proposed standards limit the VOC emissions from 24 
categories of consumer products. These standards are largely consistent 
with a proposal by the consumer products industry and are similar to 
existing standards in certain States. The proposed standards apply to 
manufacturers, importers, or distributors of subject consumer products 
manufactured for sale or distribution in the United States. Compliance 
with the proposed standards must be demonstrated by the manufacturer, 
importer, or distributor listed on the product label. If more than one 
company is identified on the label, the proposed standards apply to the 
party for whom the product was manufactured or by whom the product was 
distributed. With the exception of charcoal lighter fluid (see below), 
the proposed product categories and their respective VOC content limits 
are presented in Tables 1 and 2. The VOC content limits presented in 
Tables 1 and 2 must be achieved by September 1, 1996. To identify 
subject consumer products, the proposed rule requires that each 
manufacturer or importer of a subject consumer product display on each 
consumer product container or package, the day, month, and year on 
which the product was manufactured, or a code indicating such date. 
Charcoal lighter fluid manufactured after September 1, 1996 may not 
emit greater than nine grams (0.02 pound) of VOC per start, as 
determined using procedures specified in Section 59.208 of the proposed 
rule.
    Manufacturers or importers of subject charcoal lighter fluid must 
label their products with information specifying the quantity of 
charcoal lighter material per pound of charcoal that was used in the 
testing protocol for that product.
    Proposed exemptions from the above-mentioned VOC content limits (or 
emission standards for charcoal lighters) include the following:
    (1) Any consumer product manufactured in the United States for 
shipment and use outside of the United States.
    (2) Fragrances incorporated into a consumer product up to a 
combined level of two weight-percent.
    (3) Any VOC that has a vapor pressure of less than 0.1 millimeter 
of mercury at 20 deg.C (68 deg.F). If the vapor pressure is unknown, 
exempt compounds are those that have more than 12 carbon atoms or that 
have a melting point higher than 20 deg.C (68 deg.F) and do not sublime 
(i.e., do not change directly from a solid into a gas without melting).
    (4) Insecticides containing at least 98 percent paradichlorobenzene 
or at least 98 percent naphthalene.
    (5) Adhesives sold in containers of 0.03 liter (one ounce) or less.
    (6) Bait station insecticides. For the purpose of this section, 
bait station insecticides are containers enclosing an insecticidal bait 
that does not weigh more than 14 grams (0.03 pound), where bait is 
designed to be ingested by insects and is composed of solid material 
feeding stimulants with less than five percent active ingredients.
    (7) Air fresheners whose VOC constituents are 100 percent fragrance 
materials.
    The proposed standards also include an innovative product provision 
that allows a manufacturer to demonstrate that, due to some 
characteristic of the product formulation, design, delivery system, or 
other factor, the use of the product will result in equal or less VOC 
emissions than a complying consumer product subject to the same VOC 
content limit as presented in Tables 1 and 2.
    The proposed rule also allows a manufacturer or importer to apply 
for a temporary variance if, for reasons beyond their reasonable 
control, they cannot comply with the VOC content limit requirements. 
Criteria that must be met before the Administrator will grant a 
variance are specified in the proposed rule.
    A manufacturer of a consumer product (except for charcoal lighter 
fluid) subject to the proposed provisions would be required to 
demonstrate compliance with the VOC content limits presented in Tables 
1 and 2 by calculating the VOC content of each product from records of 
the weight percent of constituents used to make each batch of the 
product. A manufacturer of charcoal lighter fluid must demonstrate 
compliance using procedures specified in Section 59.208 of the proposed 
rule, or by another validated alternate method approved by the 
Administrator.
    Manufacturers, importers, and distributors must keep records of 
formulations for each consumer product subject to Section 59.203(a) of 
the proposed rule for purposes of demonstrating compliance. 
Manufacturers would also be required to maintain accurate records for 
three years for each batch of production of the weight-percent and 
chemical composition of the individual product constituents. 
Manufacturers of subject charcoal lighter fluids must keep

[[Page 14534]]
records for three years of the results of tests performed according to 
Section 59.208 of the proposed rule.
    The proposed standards require that manufacturers and importers of 
any subject consumer product submit a one-time initial notification 
report containing the following information: (1) Company name; (2) 
Location of facility(ies) manufacturing, importing, or distributing 
subject consumer products; (3) A list of product categories and 
subcategories, as found in Tables 1 and 2, that are manufactured or 
imported at each facility; (4) Location where VOC content records are 
kept for each subject consumer product; (5) Description of date coding 
systems; and (6) Name, title, and signature of certifying company 
official. An updated description of any date code that may have been 
revised subsequent to the initial notification report must be submitted 
within 30 days of its first use.

IV. Summary of Impacts

A. Environmental and Health Impacts

    These standards will reduce nationwide emissions of VOC from these 
consumer products by 82,000 megagrams per year (Mg/yr) [90,000 tons per 
year (tpy)] by 1997 over emissions in 1990. This equates to a 20-
percent reduction, compared to the emissions that would have resulted 
in the absence of these standards.
    No adverse secondary air, water, or solid waste impacts are 
anticipated from compliance with these standards. In general, the 
proposed standards will lead to product reformulation to reduce the 
amount of VOC released into the air. While some additional water is 
likely to be added to formulations, this increase is not expected to 
result in additional water discharges to the environment.
    The standards affect products manufactured after September 1, 1996, 
but do not impact existing product inventories. Excluding existing 
product inventories will eliminate any incremental solid waste increase 
due to discarded product. The new products are not expected to require 
any more packaging than existing products; thus, the volume of 
discarded packaging should not increase.
    Impacts to health will be positive since the proposed standards 
will reduce national emissions of VOC by 82,000 Mg/yr (90,000 tpy). 
These reductions will result in a decrease in ground level ozone, 
particularly in ozone nonattainment areas.

B. Energy Impacts

    There will be no increase in the national annual energy usage as a 
result of this rule. The proposed standards do not require the use of 
control devices to reduce the amount of VOC emitted to the air; the EPA 
is also not aware of any incremental energy increase expected from the 
production of the new formulations.

C. Cost Impacts

    Under a worst-case scenario, implementation of these standards 
would result in national annualized costs of $26.0 million per year 
(presented in 1991 dollars). Actual costs are likely to be lower. This 
estimate includes the annualized one-time costs of product 
reformulation. Recordkeeping and reporting costs have been estimated to 
be approximately $950,000. Therefore, the total annualized costs are 
approximately $27.0 million. There are no monitoring requirements for 
this rule. No significant capital expenditures are expected. The EPA 
has determined, and the consumer products industry has concurred, that 
a significant proportion of subject products have been reformulated in 
response to State regulation. Data are not available to quantify the 
proportion of the one-time reformulation costs that have already been 
incurred.
    By establishing a set of product-specific standards for VOC 
content, the proposed regulations have cost implications for producers 
of the affected products. In 1996, manufacturers of consumer products 
that do not meet the VOC levels in the proposed Table of Standards, 
will be required to reformulate products or remove products from the 
market. Each option imposes costs, some of which will be passed on to 
other members of society (consumers) in the form of higher prices and 
some of which will be borne directly by manufacturers.
    The cost of reformulation includes the resources that must be 
devoted to creating a compliant product, e.g., research and development 
expenditures plus any net changes in the variable cost of producing the 
new product. Variable costs may be affected by changes in the material 
composition of the new product. The cost for each noncompliant product 
depends on the level of effort required to develop a new product and 
how these expenditures are incurred over time. Reformulation cost data 
were provided by industry to the EPA for prototype reformulations in 
the consumer product categories.
    An economic impact analysis was performed for the proposed 
regulatory requirements. Potential cost, price, and output effects for 
the consumer products industry were examined. The analysis performed 
was based on data from the 1990 Consumer Products Survey. The estimated 
national cost of reformulating the ``noncompliant'' consumer products, 
if all products exceeding the VOC standards reformulated, would be 
approximately $26.0 million per year. This includes changes in variable 
(material) costs as well as the initial reformulation cost annualized 
over time. To the extent that lower-reformulations have already taken 
place since 1990, this cost estimate will overstate the true costs of 
this proposed regulation. Also, extremely small-volume products are 
likely to be withdrawn from the market rather than incur the fixed 
costs of reformulation.
    The collective effect of some products being removed from the 
market and other products bearing higher costs of production will 
likely lead to changes in market prices and quantities. The estimated 
market effects are generally quite slight. Price effects in each market 
range from no effect to an approximately three percent increase. 
Market-level price effects are typically less than 0.1 percent. 
Quantity effects are similarly small, ranging from virtually no effect 
to a 1.7 percent reduction. Quantity effects, too, are typically less 
than 0.1 percent.
    Given that producers would choose their least costly compliance 
option (i.e., product withdraw or reformulation), the estimated social 
cost of the regulation (including reformulation costs or lost profits 
from product withdraws) is approximately $21.3 million per year 
(estimated in 1991 dollars), with an estimated range from $17.1 million 
to $23.0 million by varying some key assumptions. The range of total 
social cost estimates for the regulation all fall below one percent of 
baseline revenue for the affected industry sectors.

D. Cost-Effectiveness

    The EPA often compares the relative cost of different measures for 
controlling a pollutant by calculating the ``cost-effectiveness'' of 
the measures. Using the EPA's traditional calculation methodology, the 
cost-effectiveness of a regulation that applies nationwide is based on 
a comparison of national costs and nationwide emission reductions. This 
comparison is expressed as the cost per megagram (Mg) (or ton) of 
emissions reduced. Using social cost and emission reduction figures 
presented earlier in this section of the preamble, the nationwide cost-
effectiveness of the proposed regulation is $260 per Mg ($237 per ton).
    Alternative ways to calculate a measure of the ``cost-
effectiveness'' of

[[Page 14535]]
the regulation have been suggested by others. One alternative would be 
to calculate cost-effectiveness on the basis of the nationwide cost of 
the regulation ($21.3 million for the proposed regulation) and the VOC 
reduction achieved in ozone nonattainment areas. The stated rationale 
for this approach is that cost-effectiveness measures should be 
designed in a way that best represents the objective of the regulatory 
action. In this case, for example, a major objective, though not the 
only objective, of these regulations is the control of ozone formation 
in nonattainment areas. By establishing nationwide standards, the cost 
of achieving emission reductions in ozone nonattainment areas during 
the ozone seasons requires nationwide expenditures during all seasons 
of the year, including expenditures year-round in areas currently in 
attainment with the current standard. These nationwide emission 
reductions--including emission reductions outside of nonattainment 
areas and out of the ozone season--may or may not contribute to efforts 
to limit ozone in nonattainment areas, depending on whether they 
participate in ozone transport from one area to another. One example of 
the application of this method is presented in a December 21, 1993, 
draft Regulatory Impact Analysis developed by the EPA OMS in which 
control of emissions from refueling of light duty vehicles (i.e., 
onboard refueling vapor recovery, or ORVR) could viably be applied 
either nationwide or in nonattainment areas alone. In this example, 
regional regulation represented an important alternative to national 
regulation. The OMS calculated cost-effectiveness using (1) nationwide 
costs and nationwide emission reductions, as well as (2) nationwide 
costs and the emission reductions achieved in nonattainment areas.
    In the case of this consumer products rule, the proportion of 
emission reductions occurring in ozone nonattainment areas can be 
roughly calculated by assuming emission reductions are proportional to 
population; approximately 110 million of the 260 million U.S. 
population currently live in nonattainment areas. Thus, the fraction of 
the nationwide year-round emission reductions that occur in 
nonattainment areas is about 42 percent. Accordingly, on a 
nonattainment area basis, the cost-effectiveness of the rule would be 
$618/Mg ($563/ton). A similar calculation could be done to account for 
the seasonality of ozone formation.
    While such an approach offers a measure of the cost of emission 
reductions in nonattainment areas, the EPA sees significant drawbacks 
to this approach. First, cost-effectiveness figures would no longer 
provide a consistent basis for comparison of the relative cost of 
different control measures or regulations considered at different 
points in time. Because the number and location of nonattainment areas 
changes frequently, the initial calculation of the cost-effectiveness 
of a rule would depend upon when it was issued. The EPA believes it is 
important that cost-effectiveness be calculated in a consistent manner 
that allows for valid comparisons. Also, introducing new methodology 
would tend to make new control measures appear superficially to be less 
cost-effective than measures utilized in the past, simply because of a 
change in well-established terminology.
    Second, this alternative approach attributes all costs of the rule 
to emission reductions achieved in nonattainment areas and no cost to 
emission reductions achieved in attainment areas. By not including 
emission reductions in attainment areas, the methodology assumes that 
emission reductions in areas which attain the NAAQS for ozone have no 
value. In fact, attainment areas often contribute to pollution problems 
in nonattainment areas through the transport of emissions downwind. 
Also, emission reductions in attainment areas help to maintain clean 
air as the economy grows and new pollution sources come into existence. 
Furthermore, measures to reduce emissions of VOC often reduce emissions 
of toxic air pollutants.
    Another alternative that has been suggested would be to calculate 
not only the emission reductions but also the cost if the requirements 
applied only in ozone nonattainment areas, perhaps through issuance of 
a CTG. The EPA has not estimated the cost of using a CTG to regulate 
only those products sold for use in ozone nonattainment areas. However, 
the industry has advised the EPA that the cost of having different 
product lines for attainment versus nonattainment areas would be 
prohibitive due to the duplicative effort of labeling, storage and 
distribution management. Therefore, it is expected that a cost-
effectiveness estimate calculated based on this approach would be 
significantly higher than one calculated on the basis of both 
nationwide costs and emission reductions. Consequently, it is possible 
that in the case of a CTG approach, the industry might choose to 
reformulate products for nationwide distribution rather than develop 
two formulations of the same product. The use of CTG is discussed 
further in Section V(F)(2) of this notice.
    The EPA is planning to review internally the generic question of 
the alternative approach to measuring costs against emission 
reductions. The results of this review are not available for 
incorporation into this rulemaking. Therefore, the EPA requests 
comments on the traditional and alternative methods discussed above to 
characterize the cost-effectiveness of this and other Section 183(e) 
regulations.

V. Rationale for Proposed Standards

A. Selection of Pollutant

    The purpose of Section 183(e) of the CAA is to reduce the emissions 
of VOC from the use, consumption, storage, disposal, destruction, or 
decomposition of consumer and commercial products. Therefore, the 
standards proposed today regulate VOC. The proposed rule requires that 
the manufacturer, importer, or distributor of subject consumer products 
document the VOC content of each formulation. The EPA definition of VOC 
(found at 40 CFR Part 51, subpart F, and amended at 60 FR 31633) is 
very broad and includes virtually any organic compound that is not 
specifically exempted from the definition. (Compounds are exempt from 
this definition when they have been found to have negligible 
photochemical reactivity.)
    Consumer products often contain ingredients which are of extremely 
low volatility. These low-volatility compounds are used in such 
ingredients as surfactants used in shampoos and laundry detergents, 
heavy oils used in lubricants, and waxes used in lip balms and underarm 
antiperspirants. If volatility is not considered, many consumer 
products contain 100 percent VOC by definition. Since, in some cases, 
all the products in a category may be of equal VOC content (100 
percent), the EPA efforts to evaluate products with regard to 
availability of alternative products were severely limited. To address 
this problem, the EPA examined the possibility of targeting only those 
consumer product ingredients with relatively higher volatility in order 
to be able to distinguish among products. This in no way should be 
construed to mean that the EPA is not concerned about emissions of all 
VOC, regardless of volatility, and in no way alters the EPA existing 
overall VOC policy.
    For the reasons stated above, the EPA adopted a volatility 
threshold for determining which ingredients are to be included in the 
VOC content calculations under the proposed rule. This approach 
addresses a subset of

[[Page 14536]]
VOC found in the consumer products subject to this proposed rule and is 
not to be considered a precedent for future rules. A consumer product 
ingredient is to be counted as part of the VOC content of a product 
subject to the proposed rule if it is a VOC by the EPA definition and 
meets one of the following criteria:
    (1) The ingredient compound has a vapor pressure greater than 0.1 
millimeter of mercury (mmHg) at 20 deg.C; or
    (2) The vapor pressure for the ingredient compound is unknown, and 
the compound's empirical formula contains 12 or less carbon atoms; or
    (3) The vapor pressure for the ingredient compound is unknown, and 
the compound exists as a solid at room temperature (20 deg.C) but 
readily sublimes (becomes a vapor at room temperature).
    As discussed in Section II.C of this preamble, several States have 
adopted consumer product rules. Each of these State rules are based on 
these same volatility criteria.
    Throughout this preamble and regulation, the term VOC is used. 
However, the only VOC that must be used in determining compliance are 
those VOC not specifically excluded by the criteria listed above. All 
reported emission reductions are also based on this subset of VOC. The 
EPA recently exempted acetone from the definition of VOC (60 FR 31633); 
therefore, the proposed standards do not apply to acetone. The EPA 
recognizes that some States have not exempted acetone from their 
definitions of VOC, and may need to adjust accordingly.

B. Selection of Best Available Controls (BAC)

    Standards under Section 183(e) of the CAA must reflect BAC. The CAA 
defines BAC as follows:

    (A) Best Available Controls--The term `best available controls' 
means the degree of emissions reduction the Administrator 
determines, on the basis of technological and economic feasibility, 
health, environmental, and energy impacts, is achievable through the 
application of the most effective equipment, measures, processes, 
methods, systems or techniques, including chemical reformulation, 
product or feedstock substitution, repackaging, and directions for 
use, consumption, storage, or disposal.

    The EPA has determined that BAC for 23 of the consumer product 
categories proposed for regulation consists of specific VOC content 
limits, expressed as the weight-percent VOC, for each consumer product 
category. For charcoal lighter fluid, BAC is expressed as the amount of 
VOC emitted during use as determined by the method presented in Section 
59.208 of the rule. Section 183(e) of the CAA allows the EPA to 
consider a wide range of strategies and technologies in determining 
BAC. The determination must be based on technological and economic 
feasibility, as well as on health, environmental, and energy impacts. 
The EPA has determined that, in most cases, all or most of a product's 
VOC content is emitted during product use. (The EPA has determined that 
the use of certain consumer products results in VOC being washed down 
drains where they are decomposed and do not result in air emissions. 
This issue is documented in the ``Consumer and Commercial Products 
Report to Congress''; EPA-453/R-94-066-A.) Regulations that attempt to 
control consumption or user habits are considered to be impractical and 
undesirable. Therefore, the EPA concluded that limits on the amount of 
VOC incorporated into the products would be the most feasible and least 
disruptive control measure. Additionally, in working to comply with 
State VOC rules over the past several years, the consumer products 
industry has established product reformulation as the most 
technologically and economically feasible strategy for reducing VOC 
emissions. The proposed standard reflects BAC and was developed based 
primarily on the EPA consumer products survey, analysis of existing 
State rules for consumer products, and information gathered during the 
EPA study of the consumer and commercial products industry.
    The EPA recognizes a need to proceed with development of these 
standards as quickly and expeditiously as possible. State and local 
agencies and representatives of the consumer products industry have 
expressed concern about the current lack of Federal VOC standards for 
consumer products. The persistence of the ground-level ozone problem 
has caused State and local air pollution agencies to seek emission 
reductions beyond those 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. The industry has therefore urged the EPA to issue 
national rules for consumer products to provide consistency across the 
country. States needing emission reductions are also supportive of an 
EPA rulemaking that will assist them in their efforts toward 
achievement of ozone attainment.
    In June 1994 the consumer products industry, represented by the 
CSMA and the CTFA, submitted recommended VOC content limits to the EPA 
for 24 consumer product categories. These limits were based on 
extensive negotiations between industry and various State regulators. 
The EPA determined that the regulatory development process for consumer 
products could be expedited by using the CSMA/CTFA recommendations as a 
starting point. Therefore, the EPA analyzed the CSMA/CTFA-recommended 
VOC content limits to assess whether they reflect BAC as defined by the 
CAA. The analysis revealed that the recommended VOC content limits 
would require that approximately 34 percent of products in these 24 
categories be reformulated and that emissions of VOC from the use of 
products in these categories would be reduced by 20 percent. The 
recommended limits would also allow for a variety of products in each 
category, and would therefore not adversely affect the range of choices 
available to consumers. The limit proposed for each product category is 
currently demonstrated (i.e., available to consumers) in several 
different formulations, and is consistent with limits currently 
enforced by States that have consumer products rules (see Table 3).
    For some product categories, the EPA's database suggested that 
lower VOC content limits might be feasible (see Table 4). However, the 
EPA has chosen to propose standards similar to those proposed or 
currently enforced by States because the existence of these standards, 
and the fact that industries are already complying with these 
standards, provides stronger evidence that these levels are achievable 
for a wide range of product applications at current levels of product 
efficacy.
    The EPA recently added acetone to the list of compounds exempt from 
the definition of VOC. The proposed VOC limit for nail polish removers 
is 85 percent. This level was not lowered following the acetone 
exemption, because polish removers designed for use with artificial 
nails are based on solvents other than acetone to avoid damage to the 
nails. The EPA determined that subcategorization of polish removers for 
natural nails and artificial nails would result in no emission 
reductions and would increase recordkeeping and reporting burden 
unnecessarily.

[[Page 14537]]

    The regulation of consumer products will have unique technical and 
economic impacts due to its direct effects on consumers and the degree 
to which perception affects consumer product demand. Regulation of the 
use of household and personal products will immediately and directly 
impact the public. The EPA has determined, through intensive studies of 
various sectors of the consumer products industry (as documented in the 
Consumer and Commercial Products Report to Congress), that product VOC 
content affects not only the technical performance of consumer 
products, but the compatibility of ingredients with each other and with 
packaging materials, the consumers' perception of efficacy, product 
life, and aesthetic appeal. Additionally, particular populations of 
consumers are sensitive to, or cannot use, some VOC ingredients, which 
are therefore replaced with alternate ingredients in similar products. 
Therefore, replacement of VOC ingredients requires a series of 
relatively complex product development, and consumer and market testing 
activities.
    The range of VOC content levels in consumer products currently on 
the market reflects the range of products that provides for the wide 
variety of applications and expectations that comprise the consumer 
products market. These VOC content levels also reflect several years of 
negotiation between manufacturers and State regulatory agencies, and 
subsequent redesign of products to meet State limits. Setting VOC 
content limits equivalent to the lower end of the range currently 
marketed has the potential to adversely affect consumer choices and to 
eliminate certain product applications and efficacy levels from the 
market. The EPA does not have evidence or information to indicate that 
such impacts are warranted to achieve an additional level of emission 
reductions. To the contrary, the recommended VOC content limits will 
achieve significant VOC emission reductions without eliminating any 
identifiable product niches or applications, and without adverse market 
impacts. Therefore, the EPA has determined that the recommended VOC 
content limits reflect BAC, and the EPA is proposing those limits in 
this action.

C. Selection of Special Provisions

    The standards proposed today include several special provisions; 
these provisions were necessary to ensure that the standards apply only 
where necessary and where the EPA has concluded that the standards can 
be met. These provisions include methods for calculating VOC content of 
specific products, as well as exemptions for specific product types.
1. Determination of VOC Content
    As discussed in Section IV.B of this preamble, the EPA has limited 
the VOC that are included for compliance determination. For aerosol 
antiperspirant and aerosol deodorant products, the proposed VOC content 
limits apply only to HVOC, which are defined as VOC with a vapor 
pressure equal to or greater than 80 mmHg at 20 deg. C. As a result, 
only the propellants in these products are regulated. Other VOC 
ingredients in these products have vapor pressures less than 80 mmHg. 
Ethanol is the most prevalent nonpropellant VOC ingredient in 
antiperspirants and deodorants. Information submitted by the CTFA 
states that ethanol provides several different functions in 
antiperspirants and deodorants including active ingredient (as an 
antimicrobial), a solvent for other active ingredients, and fragrance 
enhancer. The CTFA reports that there is no non-VOC substitute for 
ethanol in these products. Consequently, the proposed standards do not 
apply to nonpropellant VOC in antiperspirants and deodorants.
    In addition, the EPA has concluded that the minimum feasible 
fragrance content in consumer products is two weight-percent. 
Therefore, in calculating the total VOC weight-percent of a product to 
demonstrate compliance, fragrance ingredients up to a combined level of 
two weight-percent are not included; fragrance ingredients in excess of 
two percent must be included in the calculation of total VOC content.
2. Products for Use Outside the U.S.
    The EPA has also included a provision that limits the standards to 
consumer products manufactured or imported for use in the United 
States. The intent of Section 183(e) of the CAA is to limit VOC from 
the use of consumer and commercial products in the United States; 
therefore, impacting products exported for sale in other countries is 
beyond the scope of these standards.
3. Product-Specific Exemptions
    Several specific exemptions have been provided in cases where the 
EPA has determined that no alternative technology exists. Insecticides 
containing 98 percent paradichlorobenzene or naphthalene are exempt 
from today's standards; no known reformulation technology exists to 
replace these moth repellents. Similarly, air fresheners that consist 
entirely of perfume are exempt because there is not non-volatile 
replacement for perfumes.
    Adhesives sold in containers less than one fluid ounce are also 
exempted from these standards. Virtually all adhesives sold in 
containers of less than one ounce are specialty hobby or instant bond 
glues that are used in very small amounts (e.g., a few drops per 
application). Again, the EPA has concluded that no reformulation 
technology exists for these specialty adhesives. In addition, as these 
glues form bonds, the volatile compounds absorb water from the air and 
become nonvolatile. Therefore, emissions from their use are negligible.
    The proposed standards allow one additional year before compliance 
is required for subject FIFRA-registered products. This extra 
compliance time is necessary due to the testing, labeling, and 
registration burden associated with FIFRA compliance.
    The EPA has added a specific exemption for insect bait standards 
from the proposed standards. These products contain solid material 
designed to be ingested by insects and contain no VOC. Without an 
exemption, these products would be covered under the crawling insect 
category. While these products could easily meet the standard, there is 
no justification to require any reporting or recordkeeping for these 
products.
4. Innovative Product Provisions
    The proposed rule includes an alternate compliance method that 
manufacturers and importers of consumer products may choose in lieu of 
meeting a VOC content limit. The innovative product provisions exempt a 
specific product formulation from the VOC content limits if that 
product can be shown to emit less VOC than a representative product in 
the same category that does meet the VOC content limit. The 
manufacturer or importer must demonstrate to the Administrator's 
satisfaction that use of the innovative product will result in equal or 
less VOC emissions than a representative complying product due to the 
innovative product's formulation, design, delivery system, or other 
characteristics. The innovative product provisions are included in the 
proposed rule to allow flexibility to consumer product formulations 
without compromising VOC emission reductions, and to encourage 
formulators to pursue new technologies that may reduce VOC emissions. 
The consumer products industry is characterized by frequent 
introduction

[[Page 14538]]
of new and modified products. Through the innovative product 
provisions, manufacturers can continue to market a variety of product 
choices while achieving the proposed emission reductions. In addition, 
manufacturers or importers would be allowed to market innovative 
products immediately upon notifying the Administrator of their intent 
to do so, and provided that all required documentation on the 
innovative product's potential emissions has been submitted.
5. Compliance Variance
    The proposed rule includes a variance provision whereby 
manufacturers or importers of subject consumer products may apply to 
the Administrator for a temporary variance from compliance with the 
standards. A variance will be granted if the applicant demonstrates 
that compliance would result in economic hardship, and that granting 
the variance would better serve the public interest than would 
requiring continuous compliance under the conditions of economic 
hardship. The EPA intends for this provision to allow manufacturers and 
importers some flexibility in responding to unforeseen circumstances 
that may cause additional, unanticipated compliance burden. The EPA 
recognizes that certain interruptions in the availability of raw 
materials and/or manufacturing processes may affect ability to 
continuously comply with the standards. In particular, the EPA 
anticipates that this variance provision will help to mitigate impacts 
to small businesses. Within the consumer products industry, small 
businesses are likely to have fewer research and development resources, 
and therefore, will benefit from the allowed variance.

D. Selection of Recordkeeping and Reporting Requirements

    In selecting reporting and recordkeeping requirements for this 
rule, the EPA balanced the need to ensure compliance with the directive 
to ensure that burden is minimized. The proposed standards include the 
minimum reporting and recordkeeping requirements that the EPA 
determined were necessary to ensure compliance. Recordkeeping 
requirements must be met for each product formulation by the 
manufacturer or importer listed on the product label. If more than one 
party is listed on the label, the company for whom the product was 
manufactured is required to carry out recordkeeping and reporting 
requirements.
    For products listed on Tables 1 and 2 (i.e., all subject products 
except charcoal lighter fluid), records must be kept for three years of 
each product's formulation, and daily records must be kept of the 
weight percent of each VOC ingredient included in each product. For 
charcoal lighter fluid, records must be kept for three years of the 
data collected and results for all emissions tests performed according 
to Section 59.208.
    The only report required is a one-time initial notification report, 
due on September 1, 1996, and required of all manufacturers or 
importers of subject consumer products. The report must include 
identifying and location information for the respondent, a description 
of their product date coding systems, and a list of subject products 
manufactured, imported, or distributed. An updated description of any 
date code that may have been revised subsequent to the initial 
notification report must be submitted within 30 days of its first use.

E. Selection of Test Method

    The proposed standards rely predominantly on formulation 
information to demonstrate compliance. The VOC content for each product 
must be calculated based on mass balance of the constituents used to 
manufacture the product and any other byproducts or waste streams.
    The EPA is proposing a separate test protocol for determining 
compliance for charcoal lighter materials. In order to accomplish their 
intended purpose, charcoal lighter materials consist entirely of VOC. 
The standard for charcoal lighter fluid, therefore, consists of a limit 
on the amount of VOC that can be emitted during use.

F. Alternative Regulatory Approaches

1. Other Systems of Regulation
    Section 183(e)(4) allows the EPA to consider ``any system or 
systems of regulation as the Administrator may deem appropriate, 
including requirements for registration and labeling, self-monitoring 
and reporting, prohibitions, limitations, or economic incentives 
(including marketable permits and auctions of emission rights) 
concerning the manufacture, processing, distribution, use, consumption, 
or disposal of the product.'' Accordingly, the EPA requests comment on 
any alternative to the proposed system of regulation.
2. Regulation with the Use of CTG
    Section 183(e)(3)(C) gives the EPA the flexibility to ``issue 
control techniques guidelines under this Act in lieu of regulations 
required under subparagraph (A) if the Administrator determines that 
such guidance will be substantially as effective as regulations in 
reducing emissions of volatile organic compounds which contribute to 
ozone levels in areas which violate the national ambient air quality 
standard for ozone.''
    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, where benefits of reducing 
VOC emissions may be less. 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. Also, for 
a potentially large share of nonattainment area VOC emission sources, 
enforcement and compliance could effectively be focused at the source 
of the VOC emissions through the use of a CTG, be it the point of 
manufacture, the point of end-use, or both. However, for small volume 
consumer products that are widely used (e.g., the products covered by 
this proposed rule), a CTG might not be effective at reducing VOC 
emissions because of difficulties in enforcement. The EPA requests 
comment on whether and how a CTG approach (by itself, or in combination 
with any other regulatory alternatives) would be as effective as a 
national rule in reducing VOC emissions in ozone nonattainment areas, 
not only for the proposed consumer products rule but also for other 
product categories scheduled for regulation under Section 183(e) of the 
CAA (see 60 FR 15264, March 23, 1995).
3. VOC Standards for a Subset of Categories
    Individual cost-effectiveness values for each of the 24 product 
categories are based primarily on cost information which was developed 
and provided by industry representatives to the EPA. The calculated 
cost-effectiveness of the 24 categories varies widely, from $68 to 
$10,400 per Mg ($62 to $9455 per ton). Rather than regulate all 24 
product categories, the EPA could select a more cost-effective subset. 
With this approach, it appears that the rule could achieve most of the 
emissions reductions for a portion of the cost. For example, regulating 
15 categories of consumer products would yield about 80 percent of the 
emissions reductions expected to be achieved by the proposed rule at 
about 30 percent of the total cost. As discussed in Section V.B., the 
EPA has included requirements for all 24

[[Page 14539]]
product categories based on input from State and industry 
representatives. The industry representatives have suggested that 
national regulations for these products benefit industry by promoting 
consistent regulation throughout the country. A national rule makes it 
less likely that additional States will adopt different standards to 
limit VOC emissions from the same products. The industry 
representatives have also asserted that inconsistent State standards 
could impose additional costs on the industry. The EPA requests comment 
on setting emission limits for the most cost-effective subset of the 24 
consumer product categories as discussed here.
4. Discretion to Consider Section 183(e) Ranking Factors During 
Rulemaking
    In establishing criteria for regulating consumer and commercial 
products, Section 183(e)(2)(B) requires the EPA to consider the 
following factors: (1) the uses, benefits, and commercial demand of 
consumer and commercial products; (2) the health or safety functions 
(if any) served such consumer and commercial products; (3) those 
consumer and commercial products which emit highly reactive VOC into 
the ambient air; (4) those consumer and commercial products which are 
subject to the most cost-effective controls; and (5) the availability 
of alternatives (if any) to such consumer and commercial products which 
are of comparable costs, considering health, safety, and environmental 
impacts.
    In order to develop the schedule for regulation of consumer and 
commercial products under Section 183(e), the EPA established and 
exercised criteria based on the above factors and other considerations. 
Others have suggested that the five factors should be considered not 
only in setting priorities but also at the time of rulemaking for 
specific categories of products. The EPA requests comment on their 
discretion to consider the five factors in specific regulatory actions.

VI. Administrative Requirements

A. Executive Order 12866

    Under Executive Order 12866 (58 FR 5173, (October 4, 1993)), the 
EPA must determine whether a regulatory action is ``significant'' and 
therefore subject to OMB review and the requirements of the executive 
order. The order defines ``significant regulatory action'' as one that 
is likely to result in a rule that may:
    (1) Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, 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 obligations 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. The EPA has submitted this action 
to OMB for review. Changes made in response to OMB suggestions or 
recommendations will be documented in the docket (see ADDRESSEES).

B. Enhancing the Intergovernmental Partnership Under Executive Order 
12875

    In compliance with Executive Order 12875, the EPA has involved 
State and local governments in the development of this rule. State and 
local air pollution control associations (CARB, New Jersey Department 
of Environmental Protection, Wisconsin Department of Natural Resources, 
and STAPPA/ALAPCO) have provided regulatory review support.

C. Unfunded Mandates

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), P.L. 
104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. Under Section 202 of the UMRA, the 
EPA generally must prepare a written statement, including a cost-
benefit analysis, for proposed and final rules with ``Federal 
mandates'' that may result in expenditures to State, local, and tribal 
governments, in the aggregate, or to the private sector, of $100 
million or more in any one year. Before promulgating an EPA rule for 
which a written statement is needed, Section 205 of the UMRA generally 
requires the EPA to identify and consider a reasonable number of 
regulatory alternatives and adopt the least costly, most cost-
effective, or least burdensome alternative that achieves the objectives 
of the rule. The provisions of Section 205 do not apply when they are 
inconsistent with applicable law. Moreover, Section 205 allows the EPA 
to adopt an alternative other than the least costly, most cost-
effective, or least burdensome alternative if the Administrator 
publishes with the final rule an explanation why that alternative was 
not adopted. Before the EPA establishes any regulatory requirements 
that may significantly or uniquely affect small governments, including 
tribal governments, it must have developed under Section 203 of the 
UMRA, a small government agency plan. The plan must provide for 
notifying potentially affected small governments, enabling officials of 
affected small governments to have meaningful and timely input in the 
development of the EPA regulatory proposals with significant Federal 
intergovernmental mandates, and informing, educating, and advising 
small governments on compliance with the regulatory requirements.
    Today's rule contains no Federal mandates (under the regulatory 
provisions of Title II of the UMRA) for State, local, or tribal 
governments or the private sector. The rule imposes no enforceable 
duties on any of these governmental entities. In any event, the EPA has 
determined that this rule does not contain a Federal mandate that may 
result in expenditures of $100 million or more for State, local, and 
tribal governments, in the aggregate, or the private sector in any one 
year. Thus, today's rule is not subject to the requirements of Sections 
202 and 205 of the UMRA.

D. Paperwork Reduction Act

    The information collection requirements in this proposed rule have 
been submitted for approval to the OMB under the Paperwork Reduction 
Act, 44 U.S.C. 3501 et seq. An Information Collection Request (ICR) 
document has been prepared by the EPA (ICR No. ____) and a copy may be 
obtained from Sandy Farmer, OPPE Regulatory Information Division; U.S. 
Environmental Protection Agency (2136); 401 M St. SW.; Washington, DC 
20460 or by calling (202) 260-2740.
    The information required to be collected by this proposed rule is 
necessary to identify the regulated entities who are subject to the 
rule and to ensure their compliance with the rule. The recordkeeping 
and reporting requirements are mandatory and are being established 
under authority of Section 114 of the CAA. All information submitted to 
the EPA for which a claim of confidentiality is made will be 
safeguarded according to the EPA policies set forth in Title 40, 
Chapter 1, Part 2, Subpart B--Confidentiality of Business Information 
(see 40 CFR 2; 41 FR 36092, September 1, 1976; amended by 43 FR 39999, 
September 8, 1978; 43

[[Page 14540]]
FR 42251, September 28, 1978; 44 FR 17674, March 23, 1979).
    The total annual reporting and recordkeeping burden for this 
collection averaged over the first three years is estimated to be 
28,386 hours per year. The average burden, per respondent, is 129 hours 
per year. The total annualized recordkeeping and reporting costs for 
the proposed rule are estimated to be $964,416 and consist wholly of 
operation and maintenance costs. There are no capital or startup costs, 
or purchased services costs, associated with the reporting and 
recordkeeping requirements of this rule. There would be an estimated 
220 respondents to the proposed collection requirements. Average 
annualized cost of reporting and recordkeeping, per respondent, is 
$4,384.
    The proposed rule requires an initial one-time notification from 
each respondent and subsequent notifications each time the date code is 
changed.
    Formulations and ingredient usage would be recorded for each batch 
of production. Respondents seeking a variance must submit an 
application which provides information to the EPA necessary in 
determining whether to grant the variance. The application would 
include the specific grounds on which the variance is sought, proposed 
date by which the requirements of the rule will be met, and a plan for 
achieving compliance. Supporting documentation is required of companies 
who wish to market a product subject to the ``innovative products'' 
provision of the proposed rule. This documentation includes information 
on VOC emissions from the use of the product as compared to emissions 
from a product formulated in compliance with the Table of Standards. 
The proposed rule requires that the labels of all subject consumer 
products display the date of manufacture. However, there should be no 
additional burden imposed due to this labeling requirement, because 
manufacturers routinely date-code their products. The date can be in 
coded form. All manufacturers and importers of subject products must 
submit an explanation of all date codes used. Date code explanations 
must be submitted with the initial report. Thereafter, respondents must 
submit explanations of any new date codes within 30 days of their first 
use.
    Burden means the total time, effort, or financial resources 
expended by persons to generate, maintain, retain, or disclose or 
provide information to or for a Federal agency. This includes the time 
needed to review instructions; develop, acquire, install, and utilize 
technology and systems for the purposes of collecting, validating, and 
verifying information, processing and maintaining information, and 
disclosing and providing information; adjust the existing ways to 
comply with any previously applicable instructions and requirements; 
train personnel to be able to respond to a collection of information; 
search data sources; complete and review the collection of information; 
and transmit or otherwise disclose the information.
    Comments are requested on the EPA's need for this information, the 
accuracy of the provided burden estimates, and any suggested methods 
for minimizing respondent burden, including through the use of 
automated collection techniques. Send comments on the ICR to the 
Director, OPPE Regulatory Information Division; U.S. Environmental 
Protection Agency (2137); 401 M St. S.W.; Washington, DC 20460; and to 
the Office of Information and Regulatory Affairs, Office of Management 
and Budget, 725 17th St. N.W.; Washington, DC 20503; marked 
``Attention: Desk Officer for EPA''. Include the ICR number in any 
correspondence. Since OMB is required to make a decision concerning the 
ICR between 30 and 60 days after April 2, 1996, a comment to OMB is 
best assured of having its full effect if OMB receives it by May 2, 
1996. The final rule will respond to any OMB or public comments on the 
information collection requirements contained in this proposal.

E. Regulatory Flexibility Act

    The Regulatory Flexibility Act (or RFA, Public Law 96-354, 
September 19, 1980) requires Federal agencies to give special 
consideration to the impact of regulation on small businesses. The RFA 
specifies that a final regulatory flexibility analysis must be prepared 
if a proposed regulation will have a significant economic impact on a 
substantial number of small entities. To determine whether a final RFA 
is required, a screening analysis, otherwise known as an initial RFA, 
is necessary.
    Regulatory impacts are considered significant if:
    (1) Annual compliance costs increase total costs of production by 
more than five percent, or
    (2) Annual compliance costs as a percentage of sales are at least 
20 percent higher for small entities, or
    (3) Capital cost of compliance represents a significant portion of 
capital available to small entities, or
    (4) The requirements of the regulation are likely to result in 
closures of small entities.
     A ``substantial number'' of small entities is generally considered 
to be more than 20 percent of the small entities in the affected 
industry.
    The RFA requires the EPA to consider potential adverse impacts of 
proposed regulations on small entities and to consider regulatory 
options that might mitigate any such impacts. It is currently the EPA's 
policy to perform a regulatory flexibility analysis of the potential 
impacts of proposed regulations on small entities whenever it is 
anticipated that any small entities may be adversely impacted. Because 
it is anticipated that some small consumer product manufacturers could 
be adversely impacted from implementation of the proposed standards, a 
regulatory flexibility analysis was performed.
    The analysis of small entity impacts focused on the potential 
impacts on small manufacturers producing consumer products. Almost 80 
percent of the consumer product firms identified as subject to the 
regulation are considered ``small'' by the Small Business 
Administration's standard for this industry. However, these small firms 
only generate about two percent of the total revenue and employment 
associated with all identified firms.
    The proposed regulations are expected to have some negative impact 
on small producers by virtue of the fact that they have a large 
presence in the regulated industries, and because they may be likely to 
experience significant rates of product withdraws because it may not be 
cost-effective to reformulate very small volume products. The 
regulation does not, however, appear more stringent for product 
categories with higher small business presence. The potential effect on 
small businesses is somewhat mitigated by the fact that overall 
regulatory costs are a relatively small share of total industry 
revenues. The complete economic impact and regulatory flexibility 
analysis is provided in the docket.
    In conclusion, and pursuant to Section 605(b) of the RFA, 5 U.S.C. 
605(b), the Administrator certifies that this rule will not have a 
significant economic impact on a substantial number of small entities. 
The basis for the certification is that the economic impacts for small 
entities do not meet or exceed the criteria in the Guidelines to the 
Regulatory Flexibility Act of 1980, as shown above.

[[Page 14541]]

 Table 1. Product Category Table of Standards VOC Content Limits

                                                                        
------------------------------------------------------------------------
                                                                   VOC  
                                                                 content
                                                                  limit 
                       Product category                         (weight-
                                                                 percent
                                                                  VOC)  
------------------------------------------------------------------------
Air fresheners:                                                         
  Single-phase................................................        70
  Double-phase................................................        30
  Liquids/pump sprays.........................................        18
  Solids/gels.................................................         3
Automotive windshield washer fluid, Bathroom and tile                   
 cleaners:                                                            35
  Aerosols....................................................         7
  All other forms.............................................         5
Carburetor and choke cleaners.................................        75
Cooking sprays, Aerosols......................................        18
Dusting aids:                                                           
  Aerosols....................................................        35
  All other forms.............................................         7
Engine degreasers.............................................        75
Fabric protectants............................................        75
Floor polishes/waxes:                                                   
  Products for flexible flooring materials....................         7
  Products for nonresilient flooring..........................        10
  Wood floor wax..............................................        90
Furniture maintenance products, Aerosols......................        25
General purpose cleaners......................................        10
Glass cleaners:                                                         
  Aerosols....................................................        12
  All other forms.............................................         8
Hairsprays....................................................        80
Hair mousses..................................................        16
Hair styling gels.............................................         6
Household adhesives:                                                    
  Aerosols....................................................        75
  Contact.....................................................        80
  Construction and panel......................................        40
  General purpose.............................................        10
  Structural waterproof.......................................        15
Insecticides:                                                           
  Crawling bug................................................        40
  Flea and tick...............................................        25
  Flying bug..................................................        35
  Foggers.....................................................        45
  Lawn and Garden.............................................        20
Laundry prewash                                                         
  Aerosols/solids.............................................        22
  All other forms.............................................         5
Laundry starch products.......................................         5
Nail polish removers..........................................        85
Oven cleaners:                                                          
  Aerosols/pump sprays........................................         8
  Liquids.....................................................         5
Shaving creams................................................         5
------------------------------------------------------------------------


   Table 2.--Antiperspirant and Deodorant Table of Standards HVOC \1\   
                             Content Limits                             
------------------------------------------------------------------------
                                                                 Percent
                                                                HVOC \1\
                                                                 content
                       Product category                           limit 
                                                                (weight-
                                                                 percent
                                                                  HVOC) 
------------------------------------------------------------------------
Antiperspirants (aerosols)....................................        60
Deodorants (aerosols).........................................       20 
------------------------------------------------------------------------
\1\ HVOC are volatile organic compounds with vapor pressure greater than
  80 millimeters of mercury at 20  deg.C (68  deg.F).                   


                       Table 3.--Currently Enforced State Volatile Organic Compound Limits                      
----------------------------------------------------------------------------------------------------------------
                                                                  Percent volatile organic compound by weight   
                                                             ---------------------------------------------------
                      Product category                          Proposed                                        
                                                               VOC limit    California    New York      Texas   
----------------------------------------------------------------------------------------------------------------
Air fresheners:                                                                                                 
    Single-phase............................................           70           70           70           70
    Double-phase............................................           30           30           30           30
    Liquids/pump sprays.....................................           18           18           18           18
    Solids/gels.............................................            3            3            3            3
Automotive windshield washer fluids.........................           35  ...........  ...........         23.5
    Cold climate areas......................................  ...........           35  ...........  ...........
    All other areas.........................................  ...........           10  ...........  ...........
Bathroom and tile cleaners:                                                                                     
  Aerosols..................................................            7            7  ...........            7
  All other forms...........................................            5            5  ...........            5
Carburetor and choke cleaners...............................           75           75  ...........           75
Cooking sprays--aerosols....................................           18           18  ...........           18
Dusting aids:                                                                                                   
    Aerosols................................................           35           35  ...........           35
    All other forms.........................................            7            7  ...........            7
Engine degreasers...........................................           75           75  ...........           75
Fabric protectants..........................................           75           75  ...........           75
Floor polishes/waxes:                                                                                           
    Products for flexible flooring materials................            7            7  ...........            7
    Products for nonresilient flooring......................           10           10  ...........           10
    Wood floor wax..........................................           90           90  ...........           90
Furniture maintenance product, Aerosols.....................           25           25  ...........           25
General purpose cleaners....................................           10           10           10           10
Glass cleaners:                                                                                                 
    Aerosols................................................           12           12  ...........           12
    All other forms.........................................            8            8  ...........            6
Hairsprays..................................................           80           80           80           80
Hair mousses................................................           16           16  ...........           16
Hair styling gels...........................................            6            6  ...........            6
Household adhesives:                                                                                            
    Aerosols................................................           75           75  ...........           75
    Contact.................................................           80           80  ...........           80
    Construction and panel..................................           40           40  ...........           40
    General purpose.........................................           10           10  ...........           10

[[Page 14542]]
                                                                                                                
Insecticides:                                                                                                   
    Crawling bug............................................           40           40  ...........           40
    Flea and tick...........................................           25           25  ...........           25
    Flying bug..............................................           35           35  ...........           35
    Foggers.................................................           45           45  ...........           45
    Lawn and garden.........................................           20           20  ...........           20
Laundry prewash:                                                                                                
    Aerosols/solids.........................................           22           22  ...........           22
    All other forms.........................................            5            5  ...........            5
Laundry starch products.....................................            5            5  ...........            5
Nail polish removers........................................           85           85  ...........           75
Oven cleaners:                                                                                                  
    Aerosols/pump sprays....................................            8            8  ...........            8
    Liquids.................................................            5            5  ...........            5
Shaving creams..............................................            5            5  ...........            5
Antiperspirants-Aerosol.....................................          60a      60a/20b       60a20b          60a
Deodorants-Aerosol..........................................          20a      20a/20b      20a/20b         20a 
----------------------------------------------------------------------------------------------------------------
a Limit is for VOC with vapor pressure equal to or greater than 80 mmHg at 20 deg.C (vp  2.0 mmHg @  
  20 deg.C).                                                                                                    
b Limit is for VOC with vp  2.0 mmHg @ 20 deg.C.                                                     



                                   Table 4.--Feasibility of VOC Content Limits                                  
----------------------------------------------------------------------------------------------------------------
                                                                                                      Percentage
                                                                             Proposed    Percentage    of tons  
                                                                           VOC content  of products    sold in  
                             Product category                                limit a     achieving       1990   
                                                                             (weight-   recommended   achieving 
                                                                             percent      limit a    recommended
                                                                               VOC)                     limit   
----------------------------------------------------------------------------------------------------------------
Air fresheners:                                                                                                 
    Single phase.........................................................           70           13           28
    Dual phase...........................................................           30           66            8
    Liquids/pumps sprays.................................................           18           60           27
    Solids/gels..........................................................            3           49           63
Bathroom tile cleaners:                                                                                         
    Aerosol..............................................................            7           61           91
    Other................................................................            5           83           57
Carburetor and choke cleaners............................................           75           48           13
Cooking sprays--aerosols.................................................           18           36           11
Dusting aids:                                                                                                   
    Aerosol..............................................................           35           64           88
    Other................................................................            7           56           73
Engine degreasers........................................................           75           64           83
Fabric protectants.......................................................           75           55           76
Floor polishes/waxes:                                                                                           
    Flexible floors......................................................            7          100          100
    Non-resilient materials..............................................           10          100          100
    Wood.................................................................           90           97           98
Furniture maintenance products...........................................           25           65           86
General purpose cleaners.................................................           10           74           88
Glass cleaners:                                                                                                 
    Aerosols.............................................................           12           49           29
    Other................................................................            8           40           88
Hairsprays...............................................................           80           33           14
Hair mousses.............................................................           16           61           58
Hair styling gels........................................................            6           71           82
Household adhesives:                                                                                            
    Aerosols.............................................................           75           88           86
    Contact..............................................................           80           93           98
    Construction and panel...............................................           40           84           94
    General purpose......................................................           10           61           83
Non-agricultural insecticides............................................           40           57           61
    Crawling insects.....................................................           45           50           55
    Foggers..............................................................           25           69           78
    Flea/tick............................................................           35           54           87
    Flying bug...........................................................           20           59           83
    Lawn and garden......................................................  ...........  ...........  ...........
Laundry prewash aerosols/solids..........................................           22           64           23

[[Page 14543]]
                                                                                                                
Antiperspirants--aerosols................................................         60 b           33            3
Deodorants--aerosols.....................................................         20 b           40           33
----------------------------------------------------------------------------------------------------------------



List of Subjects in 40 CFR Part 59

    Environmental protection, Air pollution control, Consumer products, 
Consumer and commercial products, Ozone, Volatile organic compound.

    Dated: March 26, 1996.
Carol M. Browner,
Administrator.
[FR Doc. 96-8005 Filed 4-1-96; 8:45 am]
BILLING CODE 6560-50-P