Testimony of The Cosmetic, Toiletry, and Fragrance ... 12-13-01 B… · Testimony of The Cosmetic,...

Original: 2228

Testimony of The Cosmetic, Toiletry, and Fragrance Association (CTFA) Before

the Pennsylvania Environmental Quality Board (EQB) on

Proposed Regulation for Consumer Products and VOCs

[25 PA. CODE CH. 130]

Catherine C. BeckleyAssociate General CounselCTFADecember 13, 2001Harrisburg, PA

Testimony of The Cosmetic, Toiletry, and Fragrance Association (CTFA)Before the Pennsylvania Environmental Quality Committee

(December 13, 2001)

My name is Catherine Beckley and I am Associate General Counsel

for The Cosmetic, Toiletry, and Fragrance Association (also known as

"CTFA").

What is CTFA?

Since 1894, CTFA has been the national trade association for

the personal care products industry. CTFA member companies

manufacture the majority of cosmetics, toiletries and fragrances

marketed in the United States. CTFA represents over 600 member

companies, with approximately one-half manufacturing the final

products and the other half supplying manufacturers with raw

materials and packaging.

Based on our association's most recent state facility survey,

CTFA represents 15 companies in Pennsylvania employing over

2,100 workers in the areas of manufacturing, research and

development, distribution and warehousing of personal care products

included in the proposed rule.

CTFA Activity on Several Consumer Product Rules

Since 1989, CTFA has been an active participant in several

state rulemakings (e.g. California, Texas, Oregon) on volatile organic

compounds (VOCs) in consumer products. Currently, CTFA is

working with the Ozone Transport Region (OTR) states of

Pennsylvania, Delaware and Maryland on their state rules and we

participated as a key stakeholder in the adoption of the Ozone

Transport Commission's Model Consumer Product Rule.

At the national level, CTFA has worked with the U.S. EPA on its

rulemaking to limit VOCs in consumer and commercial products. In

fact, CTFA was a joint Intervenor in a federal court case and

supported EPA's authority to draft a national rule under the Clean Air

Act Amendments of 1990.

CTFA and the OTC Model Rule

CTFA supported the OTC Model Consumer Product Rule

because we believe such a regional ozone reduction regulatory

approach for the Northeast and Mid-Atlantic is more efficient for the

individual states and the affected companies.

CTFA also thinks that following the OTC Model ensures greater

uniformity among OTC member states that wish to adopt a consumer

product regulation. Therefore, CTFA strongly supports the

Pennsylvania Environmental Quality Board's (EQB) analysis of the

State's Proposed Rule that states "it is important that the proposed

regulations be implemented consistently and uniformly as negotiated.

Any deviation from the proposed regulations by altering the limits set

forth in the regulations may hinder the ability of manufacturers to

comply with the regulations." (PA Bulletin, Doc. No. 01-2013 at 3)

(11/9/01)

CTFA Comments on Specific Parts of the State's Proposal

First, CTFA supports both the proposed Pennsylvania VOC

standards and the 2005 effective date for personal care products.

Second, CTFA supports the proposal's efficient approach to an

innovative product application, the inclusion of a variance process

and a workable Alternate Control Plan (ACP).

Conclusion

In conclusion, CTFA thanks the Board and the staff of the DEP's

Bureau of Air Quality for considering our comments. CTFA looks

forward to continued participation as a key stakeholder in this

process. The association will submit comments in January on a few

drafting clarifications that should be made to the proposal before it is

finalized.

Thank you. I'd be glad to answer any questions from the Board.

Original: 2228

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EQB PUBLIC HEARING

PROPOSED AMENDMENTS TO PENNSYLVANIA'S

AIR QUALITY REGULATIONS AND THE STATE

IMPLEMENTATION PLAN - CONSUMER PRODUCTS

* * * * * * *

He a r i ng :

D a t e :

Time :

DEP - Southeast Regional

Office

Suite 6010, Lee Park

555 North Lane

Conshohocken, PA

De cembe r 17, 2001

2:00 p.m.

REPORTER:

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* * * * * * *

NICOLE MONTAGANO

* * * * * * *

Any reproduction of this transcript

is prohibited without authorization

by the certifying agency

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1 APPEARANCES

2

3 FRANCINE CARLINI

4 DEP - Southeast Regional Office

5 Suite 6010, Lee Park

6 555 North Lane

7 Conshohocken, PA 19428

8 PRESENT FOR DEP

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10 ALSO PRESENT: TERRY BLACK, CHIEF

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10

1 EQB and become part of a

2 comment/response document prepared for

3 the EQB's review prior to taking final

4 action on this regulation.

5 Anyone interested in a

6 transcript of this hearing may contact

7 the reporter here today to arrange to

8 purchase a copy,

9 (If there are people in

10 attendance): Does anyone here wish to

11 comment on this proposal?

12 (If there are none) :

13 There are none at the moment, but I

14 will hold the hearing open for an

15 additional ten minutes.

16 With no witnesses

17 present, I hereby adjourn this hearing

18 at 2:01 p.m.

19 * * * * * * *

20 HEARING CONCLUDED AT 2:01 P.M.

21 * * * * * * *

22

2 3

2 4

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Original: 2228 Consumer Special Products Association

Testimony at thePennsylvania Environmental Quality Board

Public Hearing on theProposed Consumer Products Rule

Harrisburg, PennsylvaniaDecember 13, 2001

I. Introduction

Good afternoon, my name is Joe Yost; I am here to presentcomments on behalf of the Consumer Specialty Products Association(CSPA). We appreciate this opportunity to comment on the proposedregulations for consumer products. And, CSPA looks forward toactively participating as a stakeholder in this important rulemakingprocess.

II. Statement of Interest

CSPA is a voluntary, non-profit national trade association establishedin 1914. The Association represents companies engaged in themanufacture, formulation, distribution, and sale of products forhousehold, institutional (e.g., hospitals, restaurants, office buildings,schools) and industrial use. Moreover, CSPA has a significantpresence in Pennsylvania - 11 member companies have facilities inthe Commonwealth.

CSPA member companies manufacture and market at least 30(i.e., two-thirds) of the 45 consumer product categories andapproximately 60 (i.e., more than three-quarters) of the 80 differenttypes of products covered by the proposed regulations. Theseconsumer specialty products are formulated and packaged in manyforms. The majority of these products are marketed nationally-although some of our members also market these products on aregional basis.

Since the late 1980s, CSPA has worked actively and cooperativelywith California, Massachusetts, New Jersey, New York, Oregon andTexas to provide our industry's perspective on these states'consumer products regulations. In addition, CSPA workedcooperatively with the U.S. Environmental Protection Agency as it

Serving Makers of Formulated Products for Home and Commercial Use Since 1914.

900 17th Street, NW, Suite 300 * Washington, DC 20006 * T: 202.872.8110 * F: 202.872.8114 * www.cspa.org

developed the national consumer products rule. CSPA and TheCosmetic, Toiletry, and Fragrance Association (CTFA) participated asjoint intervenors in support of EPA in Coalition for Clean Air, Inc. v.South Coast Air Quality Management District, No. 97-6916 HLH(CD. Cal.).1'

III. CSPA Supports Uniform Consumer Products Regulationsin the Northeast and Mid-Atlantic States

CSPA commends the Pennsylvania Department of EnvironmentalProtection (DEP), and in particular, Mr. Terry Black (Chief, Regulationand Policy Development Section, Division of Air ResourceManagement, Bureau of Air Quality), for his leadership of the OTCConsumer Products Workgroup. CSPA believes that the model ruleproduced by the OTC Workgroup provides a fair and flexibleregulatory framework that will protect the environment and will allowmanufacturers to produce and sell widely used consumer products inPennsylvania.

Specifically, CSPA strongly supports the DEP's decision to base itsVOC limits and other important regulatory provisions on California'sconsumer products regulations. This approach will ensure theharmonization of regulatory standards for consumer products inPennsylvania - and throughout the OTR states. Thus, CSPAstrongly supports the Environmental Quality Board's conclusionthat, "...it is important that the proposed regulations be implementedconsistently and uniformly as negotiated. Any deviation from theproposed regulations by altering the limits set forth in the regulationsmay hinder the ability of manufacturers to comply with theregulations."

Therefore, as a threshold issue, CSPA strongly urges the DEP tomake several technical revisions to the proposed regulation so thatit more closely tracks the provisions of the OTC Model ConsumerProducts Rule. This will help to ensure uniformity among the otherNortheast and Mid-Atlantic States that are seeking VOC reductions.

- In this case, CSPA and CTFA filed legal briefs supporting EPA'sarguments that it had authority to promulgate regulations pursuant toSection 183(e) of the Clean Air Act.

IV. Discussion of Important Provisions of the ProposedPennsylvania Consumer Products Rule

A. The DEP Should Correct Three Numerical Errors in theTable of Standards to Maintain Consistency with theStandards Set by the Model OTC Rule.

The current draft of the proposed regulations contains two numericalerrors in the table of standards.

The first error is the omission of the appropriate standard for theproduct category "air fresheners - solids / gels." Under the OTCModel Rule the standard for this product category is 3 percent VOC-

The second error is an incorrect standard for the product category"engine degreasers - aerosols." In the current draft of the proposedrule, the standard is erroneously set at 5 percent. Under the OTCModel Rule the standard for this product category is 35 percentVOC-

Finally, the DEP omitted the standard for the product category"general purpose degreasers — non-aerosols." Under the OTC ModelRule the standard for this product category is 4 percent VOC.-'

These comments are offered as a constructive observation of anapparent inadvertent drafting error. CSPA fully appreciates the factthat the DEP worked long and hard to develop a comprehensive setof regulations that are consistent with both the Commonwealth'sregulatory drafting requirements and the OTC Model Rule.

- OTC Consumer Products Model Rule, supra, at p. 25.

3/ OTC Consumer Products Model Rule, supra, at p. 26.

- OTC Consumer Products Model Rule, supra, at p. 26.

B. The Title of § 130.334 Should Be Revised so that It IsConsistent with the Title for § 130.213.

In the current draft of this proposed regulation, the title for § 130.213correctly refers to the broad scope of consumer products that areregistered with both the U.S. Environmental Protection Agency andthe Pennsylvania Department of Agriculture under the FederalInsecticide, Fungicide, and Rodenticide Act (FIFRA).- However, ascurrently drafted, the title for § 130.334 incorrectly refers to only aportion of the products regulated by FIFRA. Specifically, the titleomits any reference to antimicrobial products (sometimes calleddisinfectants, sanitizers and germicides). The DEP can easily correctthis inadvertent drafting error by making the title for § 130.334consistent with the title for § 130.213 as follows:

§ 130.334. Insecticides, fungicidos, androdenticidos Products registered under FIFRA

This minor revision would allow the DEP to avoid any potentialconfusion about the applicability of section 130.334 to antimicrobialproducts.

C. The DEP Should Consider Making Several PracticalRevisions to the Regulatory Provisions Governing theAlternative Control Plan.

During the past six (or seven) years, California's alternative controlplan (ACP) regulation has benefited the State by encouraging andcertifying millions of pounds of surplus VOC emission reductionscredits. Thus, it is entirely reasonable and appropriate forPennsylvania's proposed regulations to contain this importantregulatory provision. Once promulgated as a final rule, theCommonwealth of Pennsylvania should be able to achieve similarproportionate environmental benefits.

CSPA would like to offer three practical revisions to the currentprovisions governing Pennsylvania's procedure for granting an ACPagreement.

5/See7U.S.C.§§136-136y.

First, we recommend that the DEP revise the proceduralrequirements of proposed regulations to provide responsible parties aperiod of 15 working days (instead of five working days) after receiptof a written request from the Department.6'

While CSPA fully supports the right of the DEP to request relevantinformation from responsible ACP parties to substantiate their claimof an ACP, the practical realities of business would likely render thecurrent five-day period too short a timeframe for a completeproduction of all necessary documentation. Moreover, therecommended 15-day period is more consistent with the timeframeprovided in other sections of the proposed rule.

Second, CSPA recommends that the DEP revise the proposed rule toonly require manufacturers to provide general information about anychanges to a product's formulation rather than provide the formulaitself.- Manufacturers have a legitimate business interest inprotecting proprietary business information. Accordingly, CSPArecommends that the proposed regulation be revised to authorize theDEP to request specific information about changes to a product'sformulation rather than the product formula itself.

Finally, CSPA strongly urges the DEP to revise the provisions of theproposed regulations to provide greater protection for manufacturers'legitimate expectations of confidentiality for highly sensitive businessinformation.8 CSPA urges the DEP to balance the need for publicaccess to information to ensure that the regulation also includesadequate protections for confidential business information.

Specifically, CSPA believes that the public interest would not becompromised if the DEP makes public details such as the names of

- Section 130.454(a)(2) pertains to recordkeeping and availability ofrequested information.

11 Section130.458(a)(2)sets forth the requirements for the responsibleACP party to provide the DEP with notification of any modifications to an ACP.

- Section 130.463 sets forth the procedural protections for confidentialbusiness information submitted by a responsible ACP party to the DEP.

product that are included in an ACP agreement, the VOC percentageof each ACP product, the annual sales (in pounds) of each product,and basic calculation of the Surplus Emission Reduction Credits(SERCs) earned and used (or traded) - but not the product formula.Accordingly, the regulations should be revised as follows:

§130.463. Treatment of information.

The information required by §§130.451-130.464 (relatingto ACP for consumer products) is publiG information whichmay not bo claimod as confidential related to productformulation shall be protected as confidentialbusiness information. All other information rolatod to aproduct formula submitted to the Department to meet therequirements of this regulation shall be handled inaccordance with the procedures specified in applicablePennsylvania laws and regulations.

These three technical revisions would ensure that manufacturers'legitimate expectations of confidentiality be protected. This interest isparticularly acute when dealing with the formulation of the innovativeproducts that are typically included in an ACP agreement.

VI. Conclusion

CSPA appreciates the opportunity that the Pennsylvania EQB hasprovided for offering comments on this important issue. We feel thatthe openness of both the Pennsylvania and the OTC process allowedthe development of a fair and workable regulations that will provideenvironmental protections uniformly in Pennsylvania andthroughout the Ozone Transport Region states — withoutneedlessly impairing interstate commerce.

Thank you again for allowing me the opportunity to speak to you thisafternoon. I look forward to your questions.

6

OriginalL 2228

E Q B P U B L I C H E A R I N G

* * * * * * * * *

IN R E : P R O P O S E D A M E N D M E N T S TO P A ' S A I R

QUALITY REGULATIONS AND THE STATE

IMPLEMENTATION PLAN - CONSUMER

PRODUCTS

PUBLIC HEARING

BEFORE:

HEAR ING :

LOCATION:

WITNESSES

* * * * * * * * *

JOE PEZZE, Manager

Tuesday, December 11, 2001

2:00 p.m.

DEP Southwest Regional

Office

500 Waterfront Drive

Pittsburgh, PA

Doug Raymond

Reporter: Shannon C. Hagerty

Any reproduction of this transcript

is prohibited without authorization

by the certifying agency

Sargent's Court Reporting Service, Inc.(814) 536-8908

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A P P E A R A N C E S

J O E P E Z ZE

D E P - S o u t h w e s t R e g i o n a l O f f i c e

500 W a t e r f r o n t Drive

P i t t s b u r g h , PA 15222

R e p r e s e n t a t i v e


1 I N D E X

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p r i o r to m a k i n g ( s i c ) f i n a l a c t i o n on

t h i s r e g u l a t i o n . A n y o n e i n t e r e s t e d in

a t r a n s c r i p t of t h i s h e a r i n g m a y

c o n t a c t t h e r e p o r t e r h e r e t o d a y to

a r r a n g e to p u r c h a s e a c o p y , W i t h t h a t

I t h i n k we n e e d to w a i t u n t i l 2:15 and

t h e n we c o u l d c l o s e the h e a r i n g .

* * * * * * * *

H E A R I N G C O N C L U D E D A T 2:05 P.M.

* * * * * * * *

S a r g e n t ' s Court R e p o r t i n g Service, Inc.(814) 536-8908

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C E R T I F I C A T E

I HEREBY CERTIFY THAT THE FOREGOING PROCEEDINGS

WERE REPORTED STENOGRAPHICALLY BY ME AND THEREAFTER

REDUCED TO TYPEWRITING AND THAT THIS TRANSCRIPT

I S A TRUE AND ACCURATE RECORD THEREOF,

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EQB HearingDecember 11,2001 - 2:00 p.m.DEP - Southwest Regional Office500 Waterfront DrivePittsburgh, PA

OPENING STATEMENT

EQB Public Hearing

Proposed Amendments to Pennsylvania's Air Quality Regulations and theState Implementation Plan - Consumer Products

I would like to welcome you to this Environmental Quality Board (EQB) public hearingon a proposal to reduce volatile organic compound (VOC) emissions from consumer products.

My name is Joe Pezze, and I am the Air Quality Program Manager for DEP's SouthwestRegional Office. I am chairing this hearing due to the unavailability of any EQB memberstoday.

Also with me today from the Department of Environmental Protection (DEP) is:

Terry Black, ChiefRegulation and Policy Development SectionBureau of Air Quality

Notice of the proposed amendments was printed in the Pennsylvania Bulletin and in ninemajor newspapers around the state on November 10, 2001.

This proposal reduces VOC emissions from 45 categories of consumer products. Theproposal expands upon the Federal consumer products rule, promulgated in 1998, whichregulates 24 product categories and achieves about a 20 percent reduction in emissions on anational basis. Pennsylvania's proposal has been developed to capture additional reductionsfrom these products. Examples of products include household cleaning products, hairsprays,automobile care products, personal hygiene products, and home-use pesticides. This proposal ispart of the Commonwealth 's strategy to attain and maintain the one-hour National Ambient AirQuality Standard (NAAQS) for ozone. It is based on the Ozone Transport Commission (OTC)model rule and the California Air Resources Board (CARB) program, and other Ozone TransportRegion (OTR) states have committed to adopting similar regulations. These combined effortswill maximize the effectiveness of the rule and, together with California, are expected to create anational standard.

%

The regulation, if approved, will be submitted to the EPA as a revision to the StateImplementation Plan (SIP).

In order to give everyone an equal opportunity to comment on this proposal, I would liketo establish the following ground rules:

1. I will first call upon the witnesses who have preregistered to testify at today's hearingas included on the schedule of witnesses. After hearing from these witnesses, I willprovide any other interested parties with the opportunity to testify as time allows.

2. Oral testimony is limited to ten minutes for each witness.

3. Organizations are requested to designate one witness to present testimony on itsbehalf.

4. Each witness is asked to submit three written copies of the testimony to aid intranscribing the hearing. Please hand me your copies prior to presenting yourtestimony.

5. Please state your name and address for the record, prior to presenting your testimony.

6. We would also appreciate your help in spelling names and terms that may not begenerally familiar so that the transcript can be as accurate as possible.

Interested persons may submit written comments in addition to or in place of oraltestimony presented here. All comments must be received by the EQB by January 16, 2002.Comments should be addressed to the Environmental Quality Board, P.O. Box 8477,Harrisburg, PA 17105-8477. Comments can also be e-mailed to RegComments(oistate.pa.us .

All comments received at today's hearing and in writing by January 16 will be consideredby the EQB and become part of a comment/response document prepared for the EQB's reviewprior to taking final action on this regulation.

Anyone interested in a transcript of this hearing may contact the reporter here today toarrange to purchase a copy.

I will now call the first witness.

Testimony of The Cosmetic, Toiletry, and Fragrance ... 12-13-01 B… · Testimony of The Cosmetic,...

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