National Volatile Organic Compound Emission Standards for Consumer Products

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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.

king 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:

echnical 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/ALAPC

chniques 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

re 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

ction 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

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

sumer 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

posed 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

dentified 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.

nknown,

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

t 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

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

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

ts 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

rmulation 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

' 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

ncluding 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

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

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

ion 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

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

ernative 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

n 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

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

e, 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

arcoal 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

r 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

gories. 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

cations 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.

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

dients 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

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

t 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

le. 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

'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

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.

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

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

ncluding 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

es,

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

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

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

ective 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

my, 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

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

h 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

ndatory 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

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

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

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

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

cused 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.

Table 1. Product Category Table of Standards VOC Content Limits

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.

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............................................

ducts 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

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

ch 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........................................

..... 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 ..........

ther 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

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)

.... 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.....................................................

..................................................... 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...................................................... ........... ........... ..........

............................................. 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

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

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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