[House Hearing, 113 Congress] [From the U.S. Government Publishing Office] REGULATION OF EXISTING CHEMICALS AND THE ROLE OF PREEMPTION UNDER SECTIONS 6 AND 18 OF THE TOXIC SUBSTANCES CONTROL ACT ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON ENVIRONMENT AND THE ECONOMY OF THE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED THIRTEENTH CONGRESS FIRST SESSION __________ SEPTEMBER 18, 2013 __________ Serial No. 113-83 Printed for the use of the Committee on Energy and Commerce energycommerce.house.gov U.S. GOVERNMENT PRINTING OFFICE 87-349 WASHINGTON : 2014 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Printing Office, http://bookstore.gpo.gov. For more information, contact the GPO Customer Contact Center, U.S. Government Printing Office. Phone 202�09512�091800, or 866�09512�091800 (toll-free). E-mail, [email protected]. COMMITTEE ON ENERGY AND COMMERCE FRED UPTON, Michigan Chairman RALPH M. HALL, Texas HENRY A. WAXMAN, California JOE BARTON, Texas Ranking Member Chairman Emeritus JOHN D. DINGELL, Michigan ED WHITFIELD, Kentucky FRANK PALLONE, Jr., New Jersey JOHN SHIMKUS, Illinois BOBBY L. RUSH, Illinois JOSEPH R. PITTS, Pennsylvania ANNA G. ESHOO, California GREG WALDEN, Oregon ELIOT L. ENGEL, New York LEE TERRY, Nebraska GENE GREEN, Texas MIKE ROGERS, Michigan DIANA DeGETTE, Colorado TIM MURPHY, Pennsylvania LOIS CAPPS, California MICHAEL C. BURGESS, Texas MICHAEL F. DOYLE, Pennsylvania MARSHA BLACKBURN, Tennessee JANICE D. SCHAKOWSKY, Illinois Vice Chairman JIM MATHESON, Utah PHIL GINGREY, Georgia G.K. BUTTERFIELD, North Carolina STEVE SCALISE, Louisiana JOHN BARROW, Georgia ROBERT E. LATTA, Ohio DORIS O. MATSUI, California CATHY McMORRIS RODGERS, Washington DONNA M. CHRISTENSEN, Virgin GREGG HARPER, Mississippi Islands LEONARD LANCE, New Jersey KATHY CASTOR, Florida BILL CASSIDY, Louisiana JOHN P. SARBANES, Maryland BRETT GUTHRIE, Kentucky JERRY McNERNEY, California PETE OLSON, Texas BRUCE L. BRALEY, Iowa DAVID B. McKINLEY, West Virginia PETER WELCH, Vermont CORY GARDNER, Colorado BEN RAY LUJAN, New Mexico MIKE POMPEO, Kansas PAUL TONKO, New York ADAM KINZINGER, Illinois JOHN A. YARMUTH, Kentucky H. MORGAN GRIFFITH, Virginia GUS M. BILIRAKIS, Florida BILL JOHNSON, Ohio BILLY LONG, Missouri RENEE L. ELLMERS, North Carolina 7_____ Subcommittee on Environment and the Economy JOHN SHIMKUS, Illinois Chairman PHIL GINGREY, Georgia PAUL TONKO, New York Vice Chairman Ranking Member RALPH M. HALL, Texas FRANK PALLONE, Jr., New Jersey ED WHITFIELD, Kentucky GENE GREEN, Texas JOSEPH R. PITTS, Pennsylvania DIANA DeGETTE, Colorado TIM MURPHY, Pennsylvania LOIS CAPPS, California ROBERT E. LATTA, Ohio JERRY McNERNEY, California GREGG HARPER, Mississippi JOHN D. DINGELL, Michigan BILL CASSIDY, Louisiana JANICE D. SCHAKOWSKY, Illinois DAVID B. McKINLEY, West Virginia JOHN BARROW, Georgia GUS M. BILIRAKIS, Florida DORIS O. MATSUI, California BILL JOHNSON, Ohio HENRY A. WAXMAN, California (ex JOE BARTON, Texas officio) FRED UPTON, Michigan (ex officio) (ii) C O N T E N T S ---------- Page Hon. John Shimkus, a Representative in Congress from the State of Illinois, opening statement.................................... 1 Prepared statement........................................... 2 Hon. Paul Tonko, a Representative in Congress from the State of New York, opening statement.................................... 3 Hon. Fred Upton, a Representative in Congress from the State of Michigan, prepared statement................................... 99 Witnesses Mark A. Greenwood, Principal, Greenwood Environmental Counsel, PLLC........................................................... 5 Prepared statement........................................... 8 Answers to submitted questions............................... 109 William K. Rawson, Partner and Chair, Chemical Regulations, Product Strategy and Defense Practice, Latham & Watkins, LLP... 22 Prepared statement........................................... 25 Answers to submitted questions............................... 114 Jennifer Thomas, Director, Federal Government Affairs, Alliance of Automobile Manufacturers.................................... 36 Prepared statement........................................... 38 Answers to submitted questions............................... 117 Justin Johnson, Deputy Secretary, Vermont Agency for Natural Resources, On Behalf of the Environmental Council of the States 45 Prepared statement........................................... 47 Lemuel M. Srolovic, Chief, Environmental Protection Bureau, Office of New York State Attorney General...................... 52 Prepared statement........................................... 54 Linda Reinstein, President/CEO and Co-Founder, Asbestos Disease Awareness Organization......................................... 64 Prepared statement........................................... 66 Submitted Material Letter of September 17, 2013, from Kathryn Alcantar, Campaign Director, Californians for a Healthy and Green Economy, to Mr. Waxman, submitted by Mr. Shimkus............................... 100 Statement, dated July 24, 2013, of Californians for a Healthy and Green Economy, submitted by Mr. Shimkus........................ 101 Letter of September 18, 2013, from Linda Lipsen, Chief Executive Officer, American Alliance for Justice, to Mr. Shimkus and Mr. Tonko, submitted by Mr. Shimkus................................ 104 Resolution of ECOS, ``Reforming the Toxic Substances Control Act,'' dated September 17, 2013, submitted by Mr. Shimkus...... 106 REGULATION OF EXISTING CHEMICALS AND THE ROLE OF PREEMPTION UNDER SECTIONS 6 AND 18 OF THE TOXIC SUBSTANCES CONTROL ACT ---------- WEDNESDAY, SEPTEMBER 18, 2013 House of Representatives, Subcommittee on Environment and the Economy, Committee on Energy and Commerce, Washington, DC. The subcommittee met, pursuant to call, at 2:05 p.m., in room 2123 of the Rayburn House Office Building, Hon. John Shimkus (chairman of the subcommittee) presiding. Members present: Representatives Shimkus, Murphy, Latta, Harper, McKinley, Bilirakis, Johnson, Tonko, Pallone, Green, DeGette, McNerney, Schakowsky, Barrow, and Waxman (ex officio). Staff present: Nick Abraham, Legislative Clerk; Jerry Couri, Senior Environmental Policy Advisor; David McCarthy, Chief Counsel, Environment and the Economy; Andrew Powaleny, Deputy Press Secretary; Chris Sarley, Policy Coordinator, Environment and the Economy; Jacqueline Cohen, Democratic Senior Counsel; Greg Dotson, Democratic Staff Director, Energy and Environment; and Kara van Stralen, Democratic Policy Analyst. OPENING STATEMENT OF HON. JOHN SHIMKUS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF ILLINOIS Mr. Shimkus. I call this subcommittee hearing to order, and I want to thank you all for coming. I ask unanimous consent that all members of the subcommittee have 5 days to submit their opening statements for the record, and I recognize myself for 5 minutes. Today's hearing continues the subcommittee's examination of the Toxic Substances Control Act, including statutory provisions, regulatory implementation, and practical outcomes. On June 13, our subcommittee held a hearing on the history and impact of Title I of TSCA. On July 11, the subcommittee explored regulation of chemicals before they enter commerce, under TSCA Section 5, and protection of sensitive business information, under TSCA Section 14. I believe these hearings have helped us understand a law as complex as it is broad. Our focus now is on regulation of chemicals once they are in commerce, under TSCA Section 6, and the role of Federal pre- emption, under TSCA Section 18. These two sections of TSCA have been subject to a great deal of discussion. Notwithstanding the testimony of three of our witnesses at the July 11 hearing that TSCA Section 5 is doing a fine job reviewing and, if necessary, limiting the use of new chemicals, some argue that TSCA is broken and because TSCA Section 6 has not produced more bans or other limits on chemicals. Others, including some on our panel today, suggest that concern is overstated. EPA has been more active issuing regulations on TSCA Section 5 new chemicals than it has been on TSCA Section 6 ones, but it has issued regulations under Section 6. Charlie Auer, who testified in our June 13 hearing stated that TSCA Section 6 ``had surprising early success in efforts between 1978 and 1980.'' The question is, What has changed? Today we explore just what TSCA Section 6 asks EPA, including what ``unreasonable risk'' is and whether this is a novel concept under Federal law. We will also examine requirements in the law regarding the application of ``least burdensome'' regulations. We will study the role of risk assessment and cost-benefit analysis, how and whether it is done, and what role it plays in the final rulemaking decision. Understanding Section 6 and its link to the pre-emption provisions in TSCA Section 18 is also important. If EPA has taken action to test a chemical or regulate a new existing chemical in commerce, TSCA forecloses State action unless the State or locality meets one of four criteria. In many areas the States should handle local pollution issues, because they have a wealth of experience and capability to do so. But chemical regulation is not an area where States have traditionally taken a lead role because of the impacts on interstate commerce. In our June TSCA hearing, witness Beth Bosley said TSCA is a law about products, not pollution. TSCA vests EPA with authority to regulate risks to humans and the environment from chemicals that are not otherwise covered by some more targeted statute. TSCA is about making interstate commerce in chemicals work for all of us. I thank all our witnesses for appearing today, and look forward to their insights about the appropriate roles of the parties and the uniqueness of TSCA in this respect. I urge members to take today's opportunity to learn the fundamentals of these Sections of the law. And now I want to thank the panel. Once I get through with our opening statements, I will then do the introductions of each one of you. We do appreciate you being here. There is kind of an excitement of trying to address a 30-year-old law that we haven't really revisited in many years. I spent a lot of time during the break talking to various diverse groups of interested parties, so I think it is an exciting time and it really reinforces the need to at least have these hearings, become more educated, learn from you all, and see if we can move to bring a very old law kind of up to date. [The prepared statement of Mr. Shimkus follows:] Prepared statement of Hon. John Shimkus Today's hearing continues the subcommittee's examination of the Toxic Substances Control Act,including statutory provisions, regulatory implementation, and practical outcomes. On June 13, our subcommittee held a hearing on the history and impact of Title I of TSCA. On July 11, the subcommittee explored regulation of chemicals before they enter commerce, under TSCA section 5, and protection of sensitive business information, under TSCA section 14. I believe these hearings have helped us understand a law as complex as it is broad. Our focus now is on regulation of chemicals once they are in commerce, under TSCA section 6, and the role of Federal pre- emption, under TSCA section 18. These two sections of TSCA have been subject to a great deal of discussion. Notwithstanding the testimony of three of our witnesses at the July 11 hearing that TSCA section 5 is doing a fine job reviewing and, if necessary, limiting the use of new chemicals, some argue that TSCA is broken because TSCA section 6 has not produced more bans or other limits on chemicals. Others, including some on our panel today, suggest that concern is overstated. EPA has been more active issuing regulations on TSCA section 5 new chemicals than it has been on TSCA section 6 ones--but it has issued regulations under section 6. Charlie Auer, who testified in our June 13, hearing stated that TSCA section 6 ``had surprising early success in efforts between 1978 and 1980.'' The question is, What has changed? Today we explore just what TSCA section 6 asks of EPA, including what ``unreasonable risk'' is and whether this is a novel concept in Federal law. We will also examine requirements in the law regarding the application of ``least burdensome'' regulations. We will study the role of risk assessment and cost-benefit analysis, how and whether it is done, and what role it plays in any final rulemaking decision. Understanding section 6 and its link to the pre-emption provisions in TSCA section 18 is also important. If EPA has taken action to test a chemical or regulate a new or existing chemical in commerce, TSCA forecloses State action unless the State or locality meets one of four criteria. In many areas the States should handle local pollution issues, because they have a wealth of experience and capability to do so. But chemical regulation is not an area where States have traditionally taken a lead role because of the impacts on interstate commerce. In our June TSCA hearing, witness Beth Bosley said TSCA is a law about products, not pollution. TSCA vests EPA with authority to regulate risks to humans and the environment from chemicals that are not otherwise covered by some more targeted statute. TSCA is about making interstate commerce in chemicals work for all of us. I thank all our witnesses for appearing today, and look forward to their insights about the appropriate roles of the parties and the uniqueness of TSCA in this respect. I urge members to take today's opportunity to learn the fundamentals of these sections of this law. Mr. Shimkus. With that, I would recognize the ranking member from New York, Mr. Tonko, for 5 minutes. OPENING STATEMENT OF HON. PAUL TONKO, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW YORK Mr. Tonko. Thank you, Mr. Chair, and good afternoon. Thank you, Chair Shimkus, for holding this important hearing. Thank you to the members of our panel for participating and sharing information. I am especially pleased to have Mr. Srolovic from the New York State Attorney General's Office here with us today. As one who served in the New York State Assembly for 25 years, we work closely with the agency, so it is good to have you here. This afternoon, we will hear from witnesses on Section 6, the regulation of hazardous chemical substances and mixtures, and on Section 18, preemption. As I observed in previous hearings, and as we have heard from previous witnesses, the Toxic Substances Control Act has not worked well. We have too little information about many of the chemicals we encounter every day. Even when it becomes common knowledge that a chemical is harmful, the Environmental Protection Agency does not have sufficient authority to restrict or ban that chemical from the market. Under the current law, individual States retain sufficient authority to act independently on behalf of their citizens. Although some States' actions are not permissible under Section 18 of the current law, it has been possible for States like New York to take action to restrict or ban harmful chemicals. In the absence of Federal actions, States have filled the void. States have used their authorities to protect the public when chemicals are found to indeed cause harm. While it is good to know that State governments are watching out for their citizens, the Federal Government should be an active participant in this effort and be providing a uniform level of protection for all citizens. The major failings with current law have little to do with the provisions that define the relationship between Federal and State action on toxic chemicals. They stem from the lack of a strong safety standard to protect the public and our environment. Section 6 of TSCA does not provide EPA with the tools needed to ensure that chemicals in commerce are safe. I am sure we will hear more about Section 6 and its failings from some of our witnesses today. Chemicals that are harmful should be removed from the market and make way for safer alternatives. Revision of this law is long overdue. I hope we will be able to make changes that will provide the assurances of safety desired by the public and the incentive for innovation and regulatory certainty needed by industry. Thank you again, Mr. Chair, for holding this important hearing. We have another fine group of witnesses on this panel this afternoon, and I thank you all for participating in this hearing. I look forward to hearing your testimony, and with that, I yield back. Mr. Shimkus. Gentleman yields back his time. The chair seeks anyone on the Majority side for an opening statement. Seeing none, chair looks to the Minority side. Seeing no member interested in an opening statement, we will turn to you all. I just hearken back to my opening statement and trying to sort out the different sections and what they are doing and why they are doing, which reemphasizes the fact that why we invited you here, to help us try to make sense of all these provisions and where they work and where there may be questions about perfecting aspects of the law. So let me welcome you all here. The first one we will recognize for 5 minutes, Mr. Mark A. Greenwood, who is the principal with Greenwood Environmental Counsel in Washington, DC. Sir, your full statement is in the record. You are recognized for 5 minutes for an opening statement. We won't be--we will be very patient on the time unless you go extraordinarily long and then we will have--we will start gaveling. So you are recognized for 5 minutes. STATEMENTS OF MARK A. GREENWOOD, PRINCIPAL, GREENWOOD ENVIRONMENTAL COUNSEL, PLLC; WILLIAM K. RAWSON, PARTNER AND CHAIR, CHEMICAL REGULATIONS, PRODUCT STRATEGY AND DEFENSE PRACTICE, LATHAM & WATKINS, LLP; JENNIFER THOMAS, DIRECTOR, FEDERAL GOVERNMENT AFFAIRS, ALLIANCE OF AUTOMOBILE MANUFACTURERS; JUSTIN JOHNSON, DEPUTY SECRETARY, VERMONT AGENCY FOR NATURAL RESOURCES, ON BEHALF OF THE ENVIRONMENTAL COUNCIL OF THE STATES; LEMUEL M. SROLOVIC, CHIEF, ENVIRONMENTAL PROTECTION BUREAU, OFFICE OF NEW YORK STATE ATTORNEY GENERAL; AND LINDA REINSTEIN, PRESIDENT/CEO AND CO-FOUNDER, ASBESTOS DISEASE AWARENESS ORGANIZATION STATEMENT OF MARK A. GREENWOOD Mr. Greenwood. Chairman Shimkus, Ranking Member Tonko, and members of the committee, thank you for the opportunity to testify here today. My name is Mark Greenwood, I am an environmental lawyer, and I have the dubious pleasure of saying I have worked on TSCA for 25 years. Now that is a long time. Some of it was in private practice where I advised clients on many issues, but it also was during my time at EPA. I was the Associate General Counsel for Pollution Prevention and Toxics, and I was in pesticides. I was also Director of the Office of Pollution Prevention and Toxics as well. This is the part of EPA that actually regulates under TSCA. I am going to be addressing Section 6 in my comments here today. Obviously that is a very important section. It is the section under which the Agency does regulate existing chemicals. But I think as you alluded to, Mr. Chairman, it is also important politically because when people say that TSCA is a broken statute, they tend to refer to Section 6. And so it is all the more important to understand how it has worked and the structure of the law. I am going to talk about three general issues that are within Section 6, the first being the unreasonable risk standard, which is the basic guideline for regulation. Under Section 6C, what that means is EPA has to weigh four factors: the health and environmental risk of substances, the benefits of those substances, the availability of alternatives, which also includes their risks, and the reasonable and ascertainable economic consequences of the rule. I think it is important to recognize up front that this is not a standard that is unique to TSCA. In fact, if you look across Federal law, you will find that a vast majority of the laws that regulate products in commerce include either the unreasonable risk standard per se, or a set of factors that essentially replicate the factors I just mentioned. Certain aspects of this standard are really not that controversial. Everybody, of course, assumes we want to look at environmental risks and health risks. The alternatives are also a very important consideration, because it tends to determine whether any change would be a significant technological change for industry, and the risks associated with those is an extremely important consideration, because if you take an action against one chemical that pushes people into another chemical that is more risky, of course, that was not a good result. There is an area of, I think, controversy which primarily comes up in the area of how to consider the benefits of a product and the cost issues. Now what that very quickly tends to go to is the issue of cost benefit analysis. TSCA does not require cost benefit analysis, but it is a framework in which that certainly would be allowed. One of the things I think is important for you to consider as you think about how this Act would work is recognize that for over 30 years, the Executive Branch has pursued various executive orders on regulation that require cost benefit analysis. So that is part of the framework in which EPA and other agencies will be working. And so I think for your purposes, it is really important to think about your view of cost benefit analysis when you are trying to decide whether this unreasonable risk standard makes sense. Now the second area I would like to talk about is something called the least burdensome alternative. Basically Section 6 says EPA shall regulate, but it must try to find the least burdensome alternative in its regulatory strategy. Now as a general matter, Federal agencies probably think this is fairly reasonable. In my corner, this would be called smarter regulation. You want to try to find a way of achieving your environmental objective, your health objective without having major disruption in the economy and in the society, if you can. That is a worthy goal. It makes sense. I think most people agree with it. Now, this is the one area that I would focus on where I would say that the decision corrosion-proof fitting, which is the decision related to asbestos, did some damage to what EPA can do, because essentially the corrosion-proof fitting case says that in order to meet this standard of least burdensome alternative, it is up to EPA to look at essentially each alternative that could possibly be less burdensome than the alternative they are considering. Now, that is a much bigger job than EPA and other agencies generally do, and it is broader than the obligations under the executive order. So this is becoming, I think, a very serious issue for consideration. I can absolutely tell you when we first looked at the corrosion- proof fitting decision at EPA, this was the issue that stuck in everybody's mind because it looked to us like it could be a process of what we call paralysis by analysis, which we would have to be looking at many, many options doing many and many cost benefit analyses on each one and there was a deep concern. So again, I think this is one of those key issues that you want to think about and ask the question, here we have a very broad principle of least burdensome alternative that makes sense to many people. Now the question is in implementation, how can you run something like that so it does not create unreasonable analytical obligations for an agency who needs to act. A third topic I will just mention briefly is the procedures that are in Section 6. Now as you are probably aware, most Federal agencies do rulemaking through notice and comment rulemaking. That procedure is required under Section 6, but there is an additional set of requirements in Section 6 which would call for a legislative hearing, something like an event like this where EPA people ask questions of people who are participating, but also an opportunity for cross examination, which creates a sort of trial type of proceeding inside the rulemaking. Now, there is not a lot of history on this one. It was really only used once, which was in the asbestos rule. I participated in that particular proceeding. I will say that there was probably a bit more heat than light in that proceeding, and I am not sure how valuable it was. But I think this is the kind of issue that you want to think about, whether or not the procedures that are there add value and are warranted. So with that, I thank you again for having the chance to testify, and I look forward to your questions. [The prepared statement of Mr. Greenwood follows:] [GRAPHIC] [TIFF OMITTED] T7349.001 [GRAPHIC] [TIFF OMITTED] T7349.002 [GRAPHIC] [TIFF OMITTED] T7349.003 [GRAPHIC] [TIFF OMITTED] T7349.004 [GRAPHIC] [TIFF OMITTED] T7349.005 [GRAPHIC] [TIFF OMITTED] T7349.006 [GRAPHIC] [TIFF OMITTED] T7349.007 [GRAPHIC] [TIFF OMITTED] T7349.008 [GRAPHIC] [TIFF OMITTED] T7349.009 [GRAPHIC] [TIFF OMITTED] T7349.010 [GRAPHIC] [TIFF OMITTED] T7349.011 [GRAPHIC] [TIFF OMITTED] T7349.012 [GRAPHIC] [TIFF OMITTED] T7349.013 [GRAPHIC] [TIFF OMITTED] T7349.014 Mr. Shimkus. Thank you very much. Now I would like to recognize Mr. William Rawson, Partner and Chair, Chemical Regulations, Product Strategy, and Defense Practice with Latham and Watkins here in Washington, DC. Sir, you are welcomed. Again, your full statement is in the record. You are recognized for 5 minutes. STATEMENT OF WILLIAM K. RAWSON Mr. Rawson. Thank you, Chairman Shimkus, Ranking Member Tonko, and distinguished members of the committee. Thank you for inviting me to testify today on the subject of the Toxic Substances Control Act. I have practiced environmental law, particularly in the area of TSCA, for 25 years, and have co- authored two TSCA desk books published by the Environmental Law Institute. I am testifying today solely on my own behalf. I do have some preparative remarks, and I will use those to keep me within the time limits. I do understand that the purpose of the hearing today is not to address specific legislative proposals or to advocate any specific changes, but rather to share perspectives on the current statute, particularly Section 6 and Section 18, and I will address in my remarks both sections. Starting with Section 6, it is certainly true that there have been a few rulemaking actions undertaken by EPA under that section, and this has contributed to the erosion of public confidence in the statute and the failed asbestos rulemaking. I would urge the committee to take a very close look at the corrosion-proof fittings decision, however, because I think it demonstrates that EPA in that rulemaking had committed procedures in such areas that compelled the court to set portions of the rule aside. I will address three requirements in Section 6. The first is least burdensome requirement. As. Mr. Greenwood has testified, that is, in fact, the way most agencies try to regulate, to engage in smart regulation, meaning impose the requirement that meets the regulatory objective while imposing the least burden. It is quite similar to the language that we see in Executive Order 13563, which directs agencies to identify and use the best and most innovative and least burdensome tools for achieving regulatory ends. The executive order directs each agency to tailor its regulations to impose the least burden on society consistent with obtaining regulatory objectives. So that part of the statute is good policy consistent with what we see in executive orders issued by this and previous administrations. Secondly, concerning unreasonable risk, as Mr. Greenwood has described, this also is a standard found common in many environmental health and safety statutes, and it also parallels language that we find in the executive orders, including the one cited in my testimony. It is very similar to the standard, for example, that EPA uses when regulating non-food use pesticides, and I will read that standard. It requires EPA to consider any unreasonable risk to man or the environment from the pesticide, and to take into account the economic, social, and environmental costs and benefits of the use of any pesticides. So we can see similarities between the standard in TSCA and the standard in other environmental statutes. And Executive Order 13563 similarly directs EPA and other executive agencies to take into account benefits and costs, both quantitative and qualitative, and to propose or adopt a regulation only upon a reasonable determination that its benefits justify its costs. The third aspect of Section 6 I will address briefly is the fact that it places the burden on EPA to demonstrate the need for regulation. This also is not unique. When EPA promulgates a standard, for example, under the Clean Air Act, it typically carries the burden to demonstrate why the particular control or level of protection that is proposed is necessary to protect human health. EPA does apply very conservative health protection methodologies when making risk-based findings under TSCA or any environmental statute, and courts typically give EPA wide latitude to makes those kinds of judgments. I think it is important to recognize that before the failed asbestos rulemaking, EPA had successfully promulgated several Section 6 rules, albeit on a much smaller scale. No legal challenge. It is important to note in the corrosion-proof fittings case that the court actually started with a presumption of validity of the rule and upheld portions of the rule, and set other portions, major portions aside because of the procedural assumption of errors to which I alluded earlier and that are described in my testimony. It is certainly true that conducting a rulemaking under TSCA or any environmental statute is very challenging, but one of the lessons of corrosion-proof fittings, in my judgment, is that we should not easily or lightly put procedural or substantive requirements aside, as they help ensure the quality or integrity of any rulemaking and any resulting regulatory decision. In my judgment, changes to Section 6 should not simply make it easier for EPA to ban chemicals, but should support sound regulatory decisions that meet all of the objectives of the statute. I would urge that the number of rulemaking actions taken under TSCA Section 6 is not necessarily the right metric for evaluating the adequacy of the statute, because it doesn't recognize the many times EPA has evaluated chemicals and decided no action is needed because there were no significant risks or the chemical was a low concern for further action. It also doesn't recognize what EPA has accomplished in other parts of the statute, voluntary product stewardship initiatives and the like. All of these are described in EPA's Web site, and I would direct the committee's attention to that Web site for more information. The big concern that I would raise with TSCA is that I feel EPA needs a strong mandate to do something about the backlog of chemical--assessments of existing chemicals. A clear mandate and adequate resources are needed, in my judgment, to enable EPA to assess in a timely manner the potential risks to health and the environment from chemicals that are present in commerce in significant quantities, and that mandate should direct EPA to prioritize so that the highest number of high priority chemicals can be addressed as quickly as possible, or within reasonable timeframes. I will quickly close with one comment on preemption, and that is it has played a very limited role under TSCA to date because it only comes into play when EPA has acted under Sections 4, 5, or 6, and States that typically have not been active with respect to testing TSCA Section 4 or new chemical regulation TSCA Section 6, and relatively few actions have been taken under Section 6, putting aside the regulation of PCBs, so it hasn't been a significant issue yet. But the preemption provision in TSCA is, in fact, similar to preemption provisions in other statutes and it is a well-accepted concept. Thank you very much. [The prepared statement of Mr. Rawson follows:] [GRAPHIC] [TIFF OMITTED] T7349.015 [GRAPHIC] [TIFF OMITTED] T7349.016 [GRAPHIC] [TIFF OMITTED] T7349.017 [GRAPHIC] [TIFF OMITTED] T7349.018 [GRAPHIC] [TIFF OMITTED] T7349.019 [GRAPHIC] [TIFF OMITTED] T7349.020 [GRAPHIC] [TIFF OMITTED] T7349.021 [GRAPHIC] [TIFF OMITTED] T7349.022 [GRAPHIC] [TIFF OMITTED] T7349.023 [GRAPHIC] [TIFF OMITTED] T7349.024 [GRAPHIC] [TIFF OMITTED] T7349.025 Mr. Shimkus. Thank you very much. I would like to now recognize Ms. Jennifer Thomas, Director of Federal Government Affairs for the Alliance of Automobile Manufacturers here in Washington, DC. Same thing, your written statement is in the record and you have 5 minutes. Thank you for coming. STATEMENT OF JENNIFER THOMAS Ms. Thomas. Thank you, Chairman Shimkus, Ranking Member Tonko, and members of the subcommittee. My name is Jennifer Thomas and am I the Director of Federal Government Affairs to the Alliance of Automobile Manufacturers, which is a trade association that represents 12 auto makers that make roughly three out of every four new vehicles sold in the U.S. each year. On behalf of the Alliance, I appreciate the opportunity to offer our views on TSCA and the need for one national program for chemical regulation. Not only are auto makers producing more fuel efficient and safer cars than ever, we have also made tremendous strides in reducing the amount of substances of concern from autos. For example, for more than a decade, auto makers have maintained an industry focus, global substance of concern list, and tracking database to actively reduce their usage in global production. The industry has invested more than $30 million on these systems, which now tracks more than 2,700 substances, to ensure that restricted substances are not in our products. Auto makers have eliminated the use of lead wheel weights, mercury- containing switches, asbestos-lined brake pads, and are currently phasing out the use of deca as a flame retardant, and working to identify an alternative brake friction material to replace copper. But we recognize that there is more work to do. TSCA remains the only Federal environmental statute that has not been substantively revised. We support modernizing TSCA in part because inaction at the Federal level is creating an environment in which States feel compelled to go out on their own to regulate chemicals, creating a patchwork of State standards. As you might suspect, such a patchwork presents great obstacles to effective chemical management for large industry sectors, in particular, manufacturers of complex durable goods, such as autos. The Alliance strongly believes that modernizing TSCA to avoid a balkanized approach to chemical management is more in line with today's manufacturing realities. The average auto has 30,000 unique components, and each individual component is comprised of multiple chemicals and mixtures. Many components are obtained from our suppliers as finished products, which are then integrated into the vehicle. Auto makers recent steps to streamline production and reduce costs through common design and platform sharing resulted in better products for our customers and allowed us to stay competitive in this global market. An overwhelming array of State chemical regulations, rather than one Federal chemical management program, increases costs, hinders flexibility, and reduces competitiveness. Multiple State programs also have the potential to conflict with stringent fuel economy and safety standards. To meet the aggressive 54.5 miles per gallon fuel economy standards by model year 2025, auto makers will be relying on lightweight materials like plastics that contain multiple chemical components. Auto makers spend billions of dollars annually on R&D to advance fuel efficiency, innovate new safety technologies, and develop more sustainable materials before the need of any regulation. A myriad of State programs has the potential to derail this progress by shifting the industry's focus from R&D to regulatory compliance. We readily acknowledge that States have a very important role to play, and the Alliance supports a process by which States can address their specific chemical concerns with EPA in a common scientifically-based framework under TSCA. Legislative efforts to modernize TSCA should seek collaborations with States to achieve product safety, yet continue to maintain strong Federal preemption provisions. A unified national program would provide much-needed regulatory certainty while ensuring that products and chemicals are uniformly safe across all 50 States. Moving forward, it is critical that any legislative efforts to modernize TSCA consider the unique concerns of complex durable goods manufacturers. Currently, article exemptions are in place for most TSCA requirements. However, we are noticing a significant trend at the State level targeting not just chemicals, but consumer products or articles. The Alliance urges the committee to consider establishing clear standards for the regulation of articles under TSCA and support the continued use of existing article exemptions in most circumstances. Finally, legislation modernizing TSCA should allow sufficient lead time to investigate and qualify viable alternatives, maintain a de minimus threshold of .1 percent for chemical control actions, and provide an exemption for service--for automotive service parts. Such an exemption would avoid any disruption in the supply of thousands--hundreds of thousands of replacement parts and allow auto makers to continue to fulfill customer warranties and replace existing fleet. The Alliance appreciates the opportunity to offer our views on TSCA and the need for one national program for chemical regulation. We stand ready to work with this committee on any efforts to modernize this important policy. Thank you again, and I look forward to any questions you might have. [The prepared statement of Ms. Thomas follows:] [GRAPHIC] [TIFF OMITTED] T7349.026 [GRAPHIC] [TIFF OMITTED] T7349.027 [GRAPHIC] [TIFF OMITTED] T7349.028 [GRAPHIC] [TIFF OMITTED] T7349.029 [GRAPHIC] [TIFF OMITTED] T7349.030 [GRAPHIC] [TIFF OMITTED] T7349.031 [GRAPHIC] [TIFF OMITTED] T7349.032 Mr. Shimkus. Thank you. Chair now recognizes Mr. Justin Johnson, Deputy Secretary for the Vermont Agency for Natural Resources from the great State of Vermont. Sir, you are welcome and you are recognized for 5 minutes. STATEMENT OF JUSTIN JOHNSON Mr. Johnson. Thank you, Chairman Shimkus and Ranking Member Tonko, and the other members of the committee. It is a real honor to come down and speak to you about this today. I am the Deputy Secretary of the Agency of Natural Resources in Vermont, but today I am representing the Environmental Council of the States, which is made up of the leaders of the State and territorial Environmental Protection Agencies. Just yesterday, ECOS passed a resolution on this matter at our annual meeting over in Arlington, and I will be summarizing that position today. First of all, I would say that ECOS members are very keen to see reform of TSCA. It is very important to us for a number of reasons, which I will spell out. In particular, we have four top issues of concern: preemption, chemical assessments, the safety standard, and CBI, which I know is not the specific topic today and you have addressed before, but that is also an important one. Preemption is the number one topic, simply because States do not want to lose the ability to act to restrict a chemical in order to prevent harm to the public or the environment. This ability to act is important to States as a backstop to either a Federal program that does not work as intended, or a Federal program that acts slowly or fails to act when reliable scientific data indicates that action is needed. Without this ability to act, the only recourse would be to come back to Congress to do what we are doing, and it is a very high bar indeed. Retaining our ability to act does not mean that 50 States with 50 different chemical laws is the outcome. States are only looking to have the ability to act on chemicals in a way that their legislatures, governors, and people deem appropriate. It is expensive and time consuming to take these actions, and the way States are these days, we are not looking for more work, but we will act if we need to to protect citizens. States have lost confidence that TSCA works as thoroughly or as quickly as it ought to, leaving States to pass their own laws and rules on chemical management. However, if TSCA did work thoroughly and quickly, there would be much less incentive for States to act with additional requirements. State authority would be preserved, but seldom invoked. As a practical matter, implementation of a comprehensively reformed TSCA will render the State implementation issue largely moot, as States will focus their increasingly limited resources on other priorities. During the last 20 years, however, States have acted to fill the regulatory void of the Federal level, illustrating the vitally important role States play in providing a backstop to Federal inaction. With regard to the current impact of TSCA Sections 6 and 18 on the exercise of States action or on common law authority, we suggest that because EPA has acted on so few chemicals under TSCA, preemption of State authority has not been an issue to date. States believe that for TSCA to work well, there are at least three other key requirements. Chemical assessments need to be conducted. There are thousands of chemicals that the EPA hasn't acted on. Currently, EPA must conduct reviews of new chemicals to determine if they are a threat. Because of the current TSCA requirements for EPA to generate most of the data itself, this burden is beyond the Agency's capability and so very few get reviewed. Most chemicals simply pass into commerce. When this happens, States may see a problem with some of these and then act. The key, then, is for EPA to prioritize and review high priority chemicals, then it can focus on the chemicals of greatest concern. But EPA doesn't currently have the resources to conduct this process, so industry should supply some or all of the needed data. This is why ECOS says that TSCA reform should ensure that the burden is effectively placed on manufacturers. The safety standard burden of proof should be less onerous. Currently, States think that the action standard the EPA is held to is too high in their ability to restrict a chemical's use. Currently, TSCA's safety standard requires EPA to prove that harm from a chemical has occurred before it can restrict use of the chemical. This is almost an impossible standard for EPA to meet. In our resolution, we ask that TSCA be reformed so that EPA can take expedited action when a chemical presents a very serious or immediate risk to public health or the environment, including the ability to impose interim conditions to be in effect until EPA has had the opportunity to make a safety determination. This will help alleviate State concerns about the effectiveness of TSCA. Finally, I will just say on confidential business information, States need access to confidential data to help us fulfill our requirements to protect citizens and the environment. We understand that States should have to follow Federal guidelines that restrict distribution of these materials, but we believe that that is an important step in making TSCA more open and available to people so they can understand the decisions that are being made. There are other issues, but during our resolution and with the permission of the committee, I would provide a copy of that final resolution as an addendum to my written testimony. Thank you, and I look forward to your questions. [The prepared statement of Mr. Johnson follows:] [GRAPHIC] [TIFF OMITTED] T7349.033 [GRAPHIC] [TIFF OMITTED] T7349.034 [GRAPHIC] [TIFF OMITTED] T7349.035 [GRAPHIC] [TIFF OMITTED] T7349.036 [GRAPHIC] [TIFF OMITTED] T7349.037 Mr. Shimkus. Thank you, sir. Now chair turns to--and I hope I don't butcher it--Lemuel Srolovic. Close? All right. That is the last time I am going to try. Chief of the Environmental Protection Bureau of New York State Office of the Attorney General. Sir, you are welcomed. Your full statement is in the record and you are recognized for 5 minutes. Just hold on for one second. Let's see if we can get--there should be a light that goes on if you press it. If not, just grab one of your other panelists'---- STATEMENT OF LEMUEL M. SROLOVIC Mr. Srolovic. A little help from the sister State here. Thank you. Chairman Shimkus, Ranking Member Tonko, and distinguished committee members, thank you for the opportunity to testify this afternoon on behalf of Eric T. Schneiderman, Attorney General of New York. For many decades, New York has been a leader in protecting public health and the environment from toxic chemicals. That exercise of traditional State power has allowed New York to protect its citizens and natural resources, and to serve as a laboratory for nationwide solutions to threats posed by toxic chemicals. For example, in 1970, the State of New York banned the use of the insecticide DDT, which was devastating many bird populations, including the American bald eagle. EPA followed New York's lead in banning DDT. Now when you travel from New York City to Albany along the Hudson River, you can routinely see bald eagles along the way and it is a highlight of that trip. New York has taken other actions to protect public health and the environment by restricting the sale and use of products containing harmful chemicals. Some of those actions include to protect babies and young children, New York has banned bisphenol A, or BPA, in pacifiers and baby bottles for use in children under 3 years of age. BPA has been shown to mimic the behavior of estrogens, potentially causing changes in the onset of puberty and reproductive functioning. New York also restricts the concentration of lead, cadmium, mercury, and chromium in product packaging. Lead and mercury are probable human carcinogens, while cadmium and chromium are known human carcinogens. To protect New Yorkers that rely on groundwater for their drinking water supply, New York prohibits the sale or distribution of gasoline within the State containing methyl tertiary butyl ether, or MTBE. MTBE has been shown to have adverse health effects, and when in drinking water, may impart bad taste and odor. The goal of TSCA is to establish necessary and appropriate Federal restrictions on the manufacture and use of chemicals that present an unreasonable risk of injury to the health of Americans or the environment. Attorney General Schneiderman strongly supports this goal, and recognizes the critical contribution that TSCA, in partnership with State efforts, could make in ensuring the adequate protection of public health and the environment. Unfortunately in practice, TSCA has largely failed to live up to its goal because only a small number of chemicals have been tested, and just a handful have been restricted. It is essential that TSCA be reformed to require EPA to increase its knowledge of the toxicity of the potentially dangerous chemicals on its inventory as quickly as possible, and to impose appropriate restrictions on their manufacture and use as necessary to adequately protect public health and the environment. Over on the Senate side, a pending bill, S.1009 proposes to reform TSCA in important respects. Attorney General Schneiderman believes that a number of these amendments represent critical improvements to TSCA; however, the Attorney General also believes that that legislation could be further improved. Protecting the Nation's public health and the environment is best achieved through a dynamic Federal-State relationship in which the authority of States to enact enforced protections, which are at least as stringent as Federal protections, but may also be more stringent, is preserved. That relationship animates our national laws regarding air and water pollution, hazardous waste, pesticides, as well as TSCA. TSCA's preemption provision preserves the States' traditional authority to restrict chemicals that States have found dangerous, as well as allowing States to continue to serve as laboratories for nationwide solutions. In considering necessary reform of TSCA's regulatory provisions, the traditional authority of States to take action to protect their citizens and the environment from threats posed by toxic chemicals should be preserved. In conclusion, achieving TSCA's goal of ensuring the adequate protection of public health and the environment from toxic chemicals is critically important, as is preserving the authority of States to protect public health and the environment. Because TSCA has not met its goal, Attorney General Schneiderman strongly supports your efforts and offers the full assistance of our office to you and your colleagues as you review this important Federal law. Thank you, and I look forward to any questions. [The prepared statement of Mr. Srolovic follows:] [GRAPHIC] [TIFF OMITTED] T7349.038 [GRAPHIC] [TIFF OMITTED] T7349.039 [GRAPHIC] [TIFF OMITTED] T7349.040 [GRAPHIC] [TIFF OMITTED] T7349.041 [GRAPHIC] [TIFF OMITTED] T7349.042 [GRAPHIC] [TIFF OMITTED] T7349.043 [GRAPHIC] [TIFF OMITTED] T7349.044 [GRAPHIC] [TIFF OMITTED] T7349.045 [GRAPHIC] [TIFF OMITTED] T7349.046 [GRAPHIC] [TIFF OMITTED] T7349.047 Mr. Shimkus. Thank you, sir, and now the chair recognizes Ms. Linda Reinstein, correct, President, CEO and Cc-Founder of Asbestos Disease Awareness Organization from California. You are welcomed and you are recognized for 5 minutes. STATEMENT OF LINDA REINSTEIN Ms. Reinstein. Thank you for giving me the honor and the opportunity to testify today at your critically important hearing. I know far too well that toxic chemicals are not just threats. They are a real part of life and death for many Americans. During the past 10 years since I have been coming to Washington, more than 100,000 Americans have lost their lives because of asbestos. I want to make it clear, I am neither a lobbyist nor an attorney. I am a mesothelioma widow. I co-founded the Asbestos Disease Awareness Organization back in 2004. We have become the largest independent non-profit organization in the United States dedicated to eliminating asbestos-caused diseases. It is important for me today. I want to dedicate my testimony to Janelle and to Michael. Tragically, Janelle lost her life to mesothelioma just a few months ago. She was only 37 years old. She has left behind her husband and an 11-year-old son. Michael, age 29, a mesothelioma patient, is fighting for his life and he faces limited treatment options. My husband, Alan, was diagnosed with pleural mesothelioma in 2003. We had never heard of this asbestos-caused cancer, and we shortly learned it was incurable. Alan chose to undergo radical surgery. They removed a left rib, his left lung, resected his pericardium, and surgically replaced his diaphragm. When mesothelioma attacked his remaining lung, he was then tethered to oxygen and he felt like he was breathing through a pinched straw each breath, every second, every minute, every day. In 2006, my then 13-year-old daughter and I were by his side as he took his last breaths and died. Sadly, our stories are far too common. Asbestos is a known human carcinogen, and it remains legal and lethal in the United States. The Toxic Substances Control Act, TSCA, has failed to protect public health and our environment. In 1989, EPA issued a final rule under Section 6 of TSCA banning asbestos- containing products. In 1991, however, this rule was overturned by the 5th Circuit Court of Appeals. As a result, there was no ban on the manufacture, importation, processing, or distribution in commerce of asbestos-containing products. Asbestos has been banned in 54 countries without an economic consequence. It is time for TSCA reform, and more importantly, the burden of proof should shift to the chemical manufacturers to prove their chemicals are safe. I want you to know that consumer, environmental, and occupational exposures continue. From 1900 to 2010, we have used more than 31 million tons of asbestos, and since 1965, nearly 1.4 million tons of asbestos have been used in friction products: brakes, clutches, and others. But I ask you today, each of you, do you know where asbestos is in your home, in your district, or inside the Capitol? Your constituents can't manage the toxic risks on their own. It was reported that 2,600 tons of asbestos debris were removed after the Joplin, Missouri tornado, and I want you to know that there are tons of toxic debris that littered the coastline after Hurricane Sandy. It was California's Prop 65, not the EPA, that removed a child's toy from the consumer shelves that was contaminated with asbestos. Horrifically, last year we imported 1,060 tons of asbestos to meet so-called manufacturing needs. Now I want to be clear about this also. I have tried for 2 years through FOIA requests to identify who is importing asbestos, what is being manufactured, and where is the end product being used? My questions have all gone unanswered. Due to trade laws such as U.S. Code Title 13, Chapter 9, Section 301(g), the information is all confidential. Yet asbestos has caused the largest manmade disaster. The CDC NIOSH statistics from 2000 to 2010 revealed 43,464 Americans have died from mesothelioma and asbestosis, and those are just two of the asbestos-caused diseases. So when we think about cost benefit analysis and some of the other hoops that we have to jump, I want you to think about the lives that are claimed as you draft and pass meaningful TSCA reform. For Alan, Janelle, Michael, and the hundreds of thousands of other asbestos victims and their families, we deserve responsibility, accountability, and transparency, and without these three, no one is safe. No one. The asbestos facts are irrefutable. Every day, 30 Americans die from preventable diseases. We cannot alter history or bring back the dead; we can only learn and work to learn to save the future lives. It is time for Congress to protect public health and pass meaningful TSCA reform legislation which truly empowers the EPA to finally ban asbestos. As I have been saying for 10 years, one life lost to a preventable asbestos-caused disease is tragic. Hundreds of thousands of lives lost is unconscionable. Prevention remains the only cure. I have attached to my testimony a petition signed by 2,700 people who support a ban of asbestos, and I welcome your questions. Thank you. [The prepared statement of Ms. Reinstein follows:] [GRAPHIC] [TIFF OMITTED] T7349.048 [GRAPHIC] [TIFF OMITTED] T7349.049 [GRAPHIC] [TIFF OMITTED] T7349.050 [GRAPHIC] [TIFF OMITTED] T7349.051 [GRAPHIC] [TIFF OMITTED] T7349.052 [GRAPHIC] [TIFF OMITTED] T7349.053 [GRAPHIC] [TIFF OMITTED] T7349.054 [GRAPHIC] [TIFF OMITTED] T7349.055 [GRAPHIC] [TIFF OMITTED] T7349.056 [GRAPHIC] [TIFF OMITTED] T7349.057 [GRAPHIC] [TIFF OMITTED] T7349.058 [GRAPHIC] [TIFF OMITTED] T7349.059 [GRAPHIC] [TIFF OMITTED] T7349.060 [GRAPHIC] [TIFF OMITTED] T7349.061 Mr. Shimkus. Thank you. We appreciate your testimony. Now I would like to recognize myself for 5 minutes for the first round of questions. My first question goes to Mr. Greenwood. You mentioned this in your opening statement, but for clarification, TSCA Section 6 provides EPA broad authority to regulate chemicals if EPA reasonably believes a chemical ``presents or will present an unreasonable risk of injury to health or the environment.'' EPA imposed controls range from chemical bans to restricted uses to warning label requirements. What does unreasonable risk mean in the TSCA context? Mr. Greenwood. Mr. Chairman, as I indicated a little bit in my initial statement, it involves a balancing of multiple factors. I mean, you have to look at the risks. You have to look at product benefits. You look at alternatives, and then, of course, you look at costs. So I think the key thing there is it is a combination of those factors and an analysis. It does not necessarily require, for example, cost benefit analysis, but that is often done. It is useful to perhaps recognize since asbestos is such a topic here that a cost benefit analysis was done on asbestos under the executive order, not under TSCA, and the administration determined that despite the significant risks, that rule was worth sending out. So the point is I think what you look at here is both of the factors that were considered, but they still led to decision to try to ban asbestos. So that doesn't necessarily, as unreasonable risk, mean you are doing less for more regulation. Mr. Shimkus. And you reiterated what you said in your opening statement. You have health and environmental risks, I think benefits, availability of alternatives, and economic consequences of the rule. That was the kind of four criteria that we use to evaluate that. And you believe this is a workable standard for TSCA? Mr. Greenwood. I think it is and can be. I mean, I think-- again, as I mentioned and I think Mr. Rawson mentioned, too, you got to remember that the unreasonable risk standards is out there and in many ways the prevailing standard that exists for regulation of products. And so you see experiences in other parts of the government, including pesticides at EPA, where there has been a very active program with an unreasonable risk standard. So I think the issues that you see in TSCA, at least with Section 6, as I mentioned in my testimony have less to do with the unreasonable risk standard than they do with that interpretation of what least burdensome alternative is. Mr. Shimkus. And Mr. Rawson, Mr. Greenwood referred to you. Do you agree with that, those statements? Mr. Rawson. I do. I think because you see the same standard in other statutes, including statutes administered by other agencies such as the Consumer Products Safety Act administered by the CPSC, and we see the basic criteria that make up the unreasonable risk standard in the executive order issued by this administration and similar executive orders issued by prior administrations. So I do think it is the right target to aim for. Mr. Shimkus. Having said that, do you think that the preemption provision similarly needs to be strengthened? Mr. Rawson. Well, the preemption provision in TSCA acts similar to the preemption provisions in the Consumer Products Safety Act and some other statutes. It basically says if EPA hasn't acted, States are free to act. Where EPA has acted under particular sections, then States typically can't act, although there are some exceptions. States can adopt identical laws to make them enforceable under State law. The States can actually prevent the use of the chemical within their boundaries, other than for the use to make other chemicals or mixtures. So there is still some latitude for the States. In terms of strengthening it, the one thing that the current preemption clause doesn't do, it preempts State action when EPA acts to regulate. If EPA takes a hard look at a chemical and says this one is OK, this activity is safe, there is no risk, it doesn't preempt us in the absence of regulation. It doesn't prevent States from saying well, we are going to regulate it. So one thing that could be considered is when EPA takes a hard look, all the interested stakeholders have an opportunity to comment and have their say and no risk is found, you could argue that preemption could make sense there to have national uniformity. That is not the current approach. Mr. Shimkus. Thank you. Ms. Thomas, some people think TSCA Section 6 should not include any exposure of magnitude effect considerations. What else--what other considerations should be evaluated? Ms. Thomas. Thank you for the question. While I am not a TSCA expert by any means, we would support that a process where active chemicals in commerce are evaluated, are prioritized, and assessed in a science-based, risk-based manner that takes into full account things like chemical use, hazard information, potential exposure, and the availability of alternatives. And we would be more than happy to work with you to try to find that right balance so that all of those things are accomplished. Mr. Shimkus. So if I can restate what you--you think that there is--a robust science assessment would be helpful in this process? Ms. Thomas. Absolutely, yes. Mr. Shimkus. Great. I thank you for your answers. I would now like to yield to Mr. Tonko, the Ranking Member, for 5 minutes. Mr. Tonko. Thank you, Mr. Chair. I thank the witnesses again for their testimony, and particularly welcome Mr. Johnson and Mr. Srolovic from my home State who can provide an important State perspective. In recent years, it appears as though States have led the way on chemical regulation, as EPA's program has faltered. It is vitally important that we hear from them today. Any effort to reform TSCA should protect the hard work States have devoted to protecting their citizens from the risks of dangerous chemicals, and learn from those success stories. Mr. Srolovic, can you describe briefly some of the chemical risks New York has been working to address? Mr. Srolovic. Yes, Ranking Member Tonko. Thank you. In New York, the most recent example I alluded to in my testimony was the risk to groundwater and public health posed by MTBE. That assessment led to the ban that was successfully defended from a challenge. I think overall, what we found, our kind of lesson learned is that environmental laws work best when there is a strong State and Federal partnership, and the problem with chemical regulation is that we don't have an effective Federal partner. And while New York continues to use its traditional authority to protect public health and the environment, we can't do it alone. We need EPA to have a clear mandate and the authority and the resources to timely assess the myriad of chemicals in our society for risks to health and the environment, and to enact appropriate restrictions. Mr. Tonko. Thank you. EPA's attempts to regulate asbestos have utterly failed in light of industry-backed litigation. Have the New York State regulations faced legal challenges, or Vermont, if you can share your story, either of you? Mr. Johnson. So Vermont has not had a successful challenge. We also banned MTBE in gasoline. The challenge for Vermont with its 620,000 residents and one toxicologist is that we just--we have looked at some chemicals, we have a lot of concerns, but we don't have an ability. We just haven't had an ability to do the work that we think ultimately ought to be done at the Federal level. We are absolutely in agreement in Vermont that a nationwide process would be the most appropriate one. It would work best for everybody if it was comprehensive and robust, but we will certainly be looking--you know, if this latest approach attempt to sort of reform TSCA doesn't come to fruition, I think the pressure will be on in my legislature to do more in Vermont. I think it will take a lot of work, but we could be successful. Mr. Srolovic. The New York ban on MTBE, as I mentioned, was challenged by industry. My office successfully defended that through trial. The district court found that the exercise of New York's traditional power to protect its groundwater and its public health were not in conflict with the approval or authorization of MTBE as a gasoline additive by EPA under the Federal Clean Air Act. So in that case, the court found, in fact, that there was no conflict between the State and Federal regimes, and that basic decision was just recently revisited by the U.S. Court of Appeals for the Second Circuit in a case involving New York City groundwater contamination, and again found that there was no conflict between these two programs. Mr. Tonko. Thank you. It is interesting to note that after New York acted to address the risks of the pesticide DDT, EPA followed suit. Mr. Srolovic, one of things this subcommittee should understand is what tools States need in a situation where Federal and State requirements are the same. If EPA adopts chemical regulations that mirror rules currently in place in New York, does New York still need authority to enforce the existing New York State requirements, or is it sufficient for the State to rely on Federal enforcement or the availability of citizen suits under TSCA? Mr. Srolovic. It is important for States to retain the ability to adopt under their own State laws the same requirements as the Federal requirements. And the reason for that primarily is that it then allows the State environmental agencies--in New York, it is the Department of Environmental Conservation--but the environmental regulatory agencies around the State do the bulk of day-to-day enforcement of our environmental laws, whether it is a State standard or a Federal standard. And having the ability which is presently preserved under TSCA for States to adopt that same requirement under their own law is very important for enforcement around the country. Mr. Tonko. I see that I have exhausted my time, so I yield back. Thank you, Mr. Chair. Mr. Shimkus. Gentleman yields back his time. The chair now recognizes the gentleman from Pennsylvania, Mr. Murphy, for 5 minutes. Mr. Murphy. Thank you, Mr. Chairman, and I thank the distinguished panel for being with us today. Mr. Greenwood, I am just trying to get a sense from your testimony, a couple clarifications. Which is more important to help us get to the truth on chemical safety questions, peer review of data and scientific analysis, or cross examination requirements under TSCA's Section 6C? Mr. Greenwood. Well, I guess I would opt for peer review. Let me amplify that a bit. I do think, particularly in the context of TSCA Section 6, by the time you get to this cross examination stage, there has been a fairly extensive airing of the issues, and at the point--at least with my experience with asbestos, by the point you were talking about cross examination, there was essentially everybody hunkered down in their own positions taking shots at each other. To me, a better approach is what we see often with peer review, which is more typical of what we see today in regulation, where experts come together, see if they can develop consensus, see if they can provide some useful advice to an agency. And my general sense is that is probably more valuable. Let's say that peer review is not necessary every time, because depending on the issue and the rulemaking, you may not need that, but my general experience is that has been more successful. Mr. Murphy. Let me ask also then about cost benefit analysis. Does that also proceed in any kind of a scientific version, and what kind of data is included in a cost benefit analysis? Mr. Greenwood. Well, the range of data could be quite extensive. Obviously you are looking at the most best available information you can find. For the cost side, it is often a little easier. The real challenge is usually how you articulate benefits, because the key aspect of cost benefit analysis is you try to monetize if you can and compare, as apples to apples, costs and benefits. And some of that is much easier to do for some benefits than others, and that becomes one of the difficult challenges, but it can work well. Mr. Murphy. Thank you. Is the requirement that EPA consider the availability of viable substitutes for chemicals for specific uses appropriate? Mr. Greenwood. I think it absolutely is. It is critical, I would say, for at least two good reasons. One is it is critical in making a clear signal about whether there is going to be a technological issue. In other words, if you find that there are no alternatives, then you know you are entering a world in which you could have significant disruption, and that is an important thing to understand. The other thing about alternatives is it helps set up this question of shouldn't there be some assessment of those alternatives to see if they are better or worse, because the worst thing you want to do is push one chemical out of the economy and substitute another one that has got a bigger hazard. Mr. Murphy. Let me ask another question about this scientific quality of these decisions with regard to when they try to make a good risk decision, how does a focus on conditions of use of a chemical affect that scientific quality? Mr. Greenwood. That is a very important question, and I think it comes up more and more, because the question is as you have a general concern about a chemical, you need to translate that into something that you can actually do. And part of that is to look, then, at uses of chemicals. Once you know what the uses are, you can then do better exposure assessments, because you have very tangible situations to look at. It is also, again, critical for this issue of alternatives. Once you know exactly what your use is and your technology, then you can begin to ask the question what really are the realistic alternatives for that particular function, that use, and that exposure? Mr. Murphy. Thank you. Mr. Rawson, a quick question here. In your experience, we know that in the 37-year history of TSCA, EPA has only successfully imposed restrictions on, I think, five chemicals using Section 6. Does this mean that TSCA provides EPA inadequate authority to regulate, or there are some other issues there? Mr. Rawson. Thank you. Well, it certainly reflects the track record, but my own personal view is it reflects more EPA's reaction to the corrosion-proof fittings decision than problems with the statute itself. We have walked through the core elements of Section 6 and shown how they are actually in line with the standard practice for most agencies trying to address unreasonable risk and where possible, use the least burdensome approach to address the problem. But of course, the approach has to address the problem. So that is fairly standard and what is in the statute is consistent with smart regulation. The problem with corrosion-proof fittings is that there are some really serious issues with the rulemaking. I don't want to drag through those, but the Agency alters exposure assessment in very significant ways after the hearings were closed, and so nobody had a chance to comment. It was presented with really credible evidence that substitutes would actually cause more deaths than would be prevented by the rule. So these were big issues. We were all familiar with the adage that bad law makes--excuse me, bad facts make bad law. In this case, I think we had a situation where bad facts made for a very strong decision, and the Agency took that as saying that somehow now Section 6, because of this judicial gloss, is harder than what most agencies have to do. My feeling is that there are all too many statements in that decision that say if you had done it better, if you hadn't made these egregious errors, the court would have been much more deferential. So I sort of feel like too much of a hard lesson was learned from that decision. Mr. Shimkus. Gentleman's time is expired. Chair now recognizes gentleman from California, Mr. McNerney, for 5 minutes. Mr. McNerney. Thank you, Mr. Chairman. I thank the witnesses for coming today. I would like to start with Mr. Greenwood. What would you-- or how would you formulate an alternative to a least burdensome alternative? How would you formulate something better than that? Mr. Greenwood. Well, one of the things I think is worth looking at is the way the current executive order frames the issue. It basically says that you are supposed to be looking at alternatives that are potentially effective and reasonably feasible. There is kind of an implied rule of reason there. The agent has to look at large, broad options. He doesn't have to look at every possible version, every possible variation, and I think---- Mr. McNerney. So that has to be done in language, right, that can be followed? Mr. Greenwood. Yes. Mr. McNerney. That is a bit of a challenge. Do you have a specific wording or specific language that you would want to use? Mr. Greenwood. Well again, I think if you use that language and then kind of focus on the way it has been implemented in executive orders, I think you find a system that works, because--just to give you a ballpark, it is very common for agencies to, let's say, look at three or four large options, which is within the scope of their capability. They can analyze them, they can present the information. It goes to public comment. It is work. It takes a little bit of effort. It takes a bit of time, but it is not an impractical approach. Mr. McNerney. Mr. Rawson, I believe you said that Section 6 places the burden on the EPA to demonstrate the need for regulation. What would you think would be a better approach than having the burden on the EPA? Mr. Rawson. So I actually think that is fine. I think it is fairly typical that the burden is on the Agency to justify its action. But I think the burden should often be on industry to supply much of the information, the test data, to provide information on exposure and other information that would support that decision. So my view of the world is that industry should supply much of the information, the Agency should make the decision about risk, and then if it finds a significant risk, propose the least burdensome approach that would address that risk. Mr. McNerney. Well the opposite would be to require industry to prove that their chemicals are safe. Mr. Rawson. Right. That is effectively what is happening right now with new chemical regulation, because with new chemicals companies have to--and this was covered by the previous hearing, of course, they have to provide a pre- manufacture notice. Typically, EPA either gets the information it wants or the restrictions it wants, or the PMN is withdrawn. But with the universe of existing chemicals and all the myriad uses and so on, it is just not practical at this point in time to have industry prove a negative for every chemical for every use. What we really need, in my judgment, is EPA to have a mandate and the resources to prioritize and address in a reasonable timeframe the high priority chemicals, hopefully identify that most uses of most chemicals don't pose unreasonable risks, and then focus on the ones that might. Mr. McNerney. Well, the European countries, at least some of them, appear to have the mandate that you are talking about. Mr. Rawson. What they have is a mandate under their current program, known as REACH, a requirement that industry assemble chemical safety reports, dossiers, on their chemicals. But in only very limited circumstances will there be a requirement to seek authorization to continue uses. It is a very narrow subset of chemicals for which that approach would be taken. Mr. McNerney. Well, I believe that you implied in your opening remarks that the EPA asbestos rule--overturning of the EPA asbestos rule had a chilling effect on that Agency's ability to conduct further rulemaking. Is that--did I hear you right about that? Mr. Rawson. Yes, and Mr. Greenwood was there at the time. He was head of OPPT, and he has described that in his testimony. So certainly the Agency read that opinion and thought wow, this is hard. Maybe we shouldn't try to do this. Maybe we should act in other ways. I wasn't there. When I read the opinion, I am more struck by the errors, procedural and substantive errors that really forced the court's hand. And I would urge, there are some statements. I will just read one statement. This is in the conclusion where the court sort of tries to say to the Agency look, you can do this again, just follow some of the things I have said. And the court said EPA does not have the duty under TSCA of affirmatively seeking out and testing all possible substitutes. But when an interested party comes forward with credible evidence that the planned substitutes present a significant and even greater toxic risk than the substance in question, the Agency must make a formal finding on the record, otherwise the court can't evaluate. So to me, again, what I feel is that bad facts made a strong decision. I think it was premature to conclude that Section 6 just couldn't work anymore. Mr. McNerney. All right. Thank you, Mr. Chair. Mr. Shimkus. Gentleman's time is expired. Chair will now recognize the gentleman from Mississippi, Mr. Harper, for 5 minutes. Mr. Harper. Thank you, Mr. Chairman, and thank you for holding this very important hearing. If I could, I will start with Mr. Greenwood, and my question would be should overall statutory standards for science and data quality in regulatory decision-making be made more stringent? Mr. Greenwood. I think these questions about data quality, there are already some restrictions under the Information Quality Act that actually have been incorporated into many agencies' procedures, so I think you are seeing some of that. I do think it is difficult to, in a sense, regulate or legislate good science, so I think to some extent, this is one of these things where if you have a robust process where good science can be heard--we mentioned peer review earlier--I think these are the sorts of mechanisms that will help improve better science and how decisions are made. Mr. Harper. What was the take home lesson for EPA in the 1991 corrosion fittings court decision? Mr. Greenwood. Well, I think we just heard my view and Mr. Rawson's view of how we reacted. The Agency reacted, I think, very strongly with a notion that as we read the opinion, we were seeing this as a case that says you need to evaluate each individual option that is less burdensome, and that one of the things we were afraid of was a tactical approach that we would see with industry would continue to put in front of us more and more alternatives and options and suboptions. And with TSCA being as broad as it was, you could do almost anything. The ability to do that was very real, so this is one of those issues that it was interesting at the time, it was the consensus of the lawyers, the managers, and the staff that this was a new world. This was a new set of burdens on the Agency that we weren't really quite ready for. Remember that at the time, the executive order that we were operating under required that we develop alternatives and look at options. We did that. However, that was not enough for this court. Mr. Harper. Mr. Rawson, if I could ask you, some States have been more active than others, obviously, in regulating chemicals. Have any State requirements for chemicals been preempted by TSCA in its 37-year history? Mr. Rawson. By and large the answer is no, because preemption is triggered under three sections, Section 4, testing, and Section 5, new chemicals, and States typically haven't been active in those areas. And then Section 6, where we have heard that EPA has promulgated very few regulations, apart from the PCP regulations. There is at least one case out of Louisiana where a parish's attempt to prevent the siting of a PCP disposal facility was preempted, but there are other cases where narrow regulations at the State level governing the disposal of PCPs were not preempted. But by and large, thus far preemption has not been a significant factor. Mr. Harper. Well, let me ask you--in your opinion, of course--if TSCA is amended to require EPA to more systematically assess the safety of chemicals in commerce, do you think TSCA's preemption provision similarly needs to be strengthened? Mr. Rawson. As I suggested earlier, an argument could be made that right--well, right now preemption only is triggered when EPA acts by regulation. That is similar to what happens, for example, with the CPSC. When CPSC promulgates a regulation governing a product, States can only do the same thing. They can't do something different. There is an obvious reason for that. But what we don't have here is a situation where EPA takes a very hard look, everybody with an interest comments, and concludes this product is safe, no regulations are required. That doesn't have a preemptive effect. One could argue that if it is done right once, it doesn't have to be done 50 other times. One could also argue the opposite, that States should be free to be more stringent. Under the current approach, by the way, they have the ability to petition the EPA for an exemption to be more stringent, and they have the ability to just simply say you can't use the chemical in our State. So there are--there is latitude now, even when EPA has acted, for some State role. Mr. Harper. Ms. Thomas, if I could ask you, how are your members affected under current TSCA by California's green chemistry law? Ms. Thomas. That is a great question. Thank you very much. So we are seeing a trend at the State level towards going beyond regulating just chemicals and starting to regulate consumer products, and they are using broad definitions of consumer products that would capture autos. A perfect example is the California Safe Consumer Products regulations, which would give the Department of Toxic Substances authority to regulate up to 10 components in a 3-year period to undergo alternative assessments, and the way component is designed-- defined, it would capture things, complex things like vehicle assemblies, transmissions, which in itself is a very complex component made up of multiple subcomponents and materials, and more importantly, the likelihood of exposure is minimal to nonexistent. So the idea of having to do an alternatives assessment for a transmission would be extremely costly and take many years, so imagine that times 10 in a 3-year period. So it is simply not feasible and very, very complicated. Mr. Harper. And who would you expect would ultimately bear that cost, additional expense? Ms. Thomas. We would, the auto makers. Mr. Harper. OK. All right, I yield back. Mr. Shimkus. Gentleman's time is expired. Chair now recognizes the gentlelady from Colorado, Ms. DeGette, for 5 minutes. Ms. DeGette. Thank you very much, Mr. Chairman. I want to thank all the witnesses for being here. Sometimes I feel like I am in that movie ``Groundhog Day'' because I have been on this committee for 16 years now. I can't tell you how many hearings we have had where the witnesses come in and say, you know, there is consensus. Everybody agrees we need to figure out what to do about TSCA. Maybe we will have the magic moment this year, and I would be certainly happy to work with you, Mr. Chairman. I think everybody agrees, we need to do something, particularly about Section 6. And you know, when I was sitting here thinking when you talk about Section 6 of TSCA, I mean, the reason we have seven options for controls of chemicals in TSCA is they are all supposed to be actual regulatory options, not barriers towards trying to regulate and to enforce against potentially dangerous chemicals. You know, Section 6, ever since the asbestos debacle, has just really not been an actual regulatory option for the EPA, and that is a problem. It is a problem because for whatever reason, whether you think the court decision was proper or not, the EPA doesn't feel like they can go back and go through that same regulatory process again. So I think we really need to think about why that section doesn't work on its own and what we can do, especially after you hear testimony like Ms. Reinstein gave us today about the very real health effects that asbestos is having. And I want to thank you for sharing that human moment with us. Mr. Greenwood, in your testimony you said accurately that many Federal laws share a common pattern of weighing health and environmental risks against the cost and benefit of action, as well as the availability of alternatives. Under the Clean Air Act, the EPA sets national ambient air quality primary standards that protect public health regardless of cost, but implements those standards who state implementation plans that incorporate cost benefit analysis. And so I am wondering, could a framework where chemical determinations are made based only on health risks but are implemented considering the cost or benefit of different options be more effective? What do you think about that? Mr. Greenwood. I mean, I think that is an option that is worth considering. You mentioned the Clean Air Act. Essentially that is what you have in the Safe Drinking Water Act as well. Ms. DeGette. Right. Mr. Greenwood. So that is a model. I think one of the questions will be kind of what factors distinguish those things that are the health-based criteria from those things that would be this unreasonable risk notion. Ms. DeGette. Right. Mr. Greenwood. And so I think that is a key factor, but certainly, that is a model that could be considered. Ms. DeGette. Well you know, one thing that the EPA says when thinking about how they are going to have reform is they say chemicals should be reviewed against safety standards that are based on sound science--that is a radical concept, by the way, sometimes in this committee--and reflect risk-based criteria protective of human health and the environment. What do you think about that standard? Mr. Greenwood, what do you think about that? Mr. Greenwood. Well, I think---- Ms. DeGette. That is what the EPA says that their guidelines should be. Mr. Greenwood. Well, I think that is what they think they do, and that is exactly what their guideline is. But I think that is certainly part of at least a component of the unreasonable risk standard that we think of as this notion of looking at the risks through looking at exposure and hazard, and then perhaps getting into the risks of the alternatives. So I think it is consistent with unreasonable risk in that sense. Ms. DeGette. OK. So Mr. Srolovic, New York has been really successful in placing restrictions on dangerous chemicals. What was the process that New York used in making those determinations? Mr. Srolovic. The restrictions at the State level in New York have been legislative decisions, so those bans or restrictions that I mentioned work through our State legislation process. Ms. DeGette. OK, but I assume the legislature used some kind of a basis for making those determinations? Mr. Srolovic. Indeed. They---- Ms. DeGette. Let me ask you this. Is it a cost benefit analysis or an analysis of alternatives? Do you know? Mr. Srolovic. It includes those considerations, certainly. When the--for example, the BPA ban was passed, all the voices were heard: industry, producers, users, the medical community. So there in essence was a legislative hearing process that led to the legislature making that balance that considered all of those factors. Ms. DeGette. And they used--did they use science? Mr. Srolovic. Indeed. Ms. DeGette. OK, just checking. Mr. Johnson, you know, you talked about the need for States to know about some disclosure. That got me to thinking about the EPCRA statutes that relate to storage of chemicals. We could do something similar with TSCA for chemicals--for disclosure of chemicals, right, where you are letting people know what those chemicals are but maybe not disclosing proprietary information? Mr. Johnson. Right. I think there is a balance in there that was--there was attempt to achieve, originally. The problem was, from what I understand, is that you--for a long time, companies take the box that said confidential--the material is automatically confidential without any much review and today, as a State official, I can go on the Internet and read material about chemicals that EPA, by statute, cannot talk to me about because it is confidential. Ms. DeGette. Right, right. OK. Thank you. Thanks, Mr. Chairman. Mr. Shimkus. Gentlelady's time is expired. Chair now recognizes the gentleman from Ohio on the top panel, Mr. Latta, for 5 minutes. Mr. Latta. Well, it is good to know we have two Ohioans here on the committee, Mr. Chairman. Thanks very much, and thanks very much for our panel for being with us today. If I could ask a couple questions to you, Ms. Thomas, if I may. Are some of the public policies in conflict with others when it comes to designing and producing a new car or truck, and kind of following up on that, how often does that happen, and is it the Federal that are really conflicting with the State, or vice versa? Ms. Thomas. Thank you, Congressman. Yes, multiple State laws and regulations have the potential to comply with Federal environmental and safety standards. You know, a good example is in order to meet the aggressive fuel economy standards for model years 2017 through 2025, my members are going to be relying heavily on lightweight materials like plastics that contain chemicals like flame retardants in them. And NTSA, under DOT, also has authority to regulate the flammability standards, so we comply with those standards by using flame retardants. But then at the State level, you are seeing bills banning different flame retardants that are used in different products, but in the same way, so the problem becomes when they--when requirements for a couch are misapplied in error to an automobile, which obviously is very different from a couch. Mr. Latta. Let me follow up. On page four of your testimony, you--it calls for continually--pardon me, continuation of regulatory exemption for articles. Would you want these exemptions to preempt States, or should States be allowed to regulate beyond those exemptions on the articles? Ms. Thomas. Yes, so I am happy to be here today to talk about the proactive steps that my companies have been taking to reduce substances of concern from their vehicles. We work with our suppliers on maintaining a tracking database for--to ensure that restricted substances of concern do not end up in our vehicles. But the reality is a car is a very complex product with thousands of components, each made up of multiple chemicals and mixtures, so any requirements at the State level become very challenging, because they each have their own hurdles. So we would like to see a strong Federal approach that focuses on specific applications with potential for actual consumer exposure. We believe that would be a more effective approach than an overly broad one. Mr. Latta. Thank you. Ms. Thomas. And yes, Federal action should preempt State action on that regard. Mr. Latta. Thank you. Mr. Johnson, on the last page of your testimony you have a couple things you say. The second one of the unaddressed issues is timelines for chemical reviews. And you also state--you say that perhaps similar deadlines to the EPA would be appropriate and would ensure timely actions, because States are doing certain things when it is coming to set deadlines for air and water permit issuance. But you say in the last line then that you are currently unable to suggest what those deadlines ought to be. Any idea, though, because are we running the situation where it is dragging on too long on the Federal side and we need to get these things resolved, and what would you personally like to suggest? Mr. Johnson. I appreciate the question. You know, it is a bit of a challenge. Our members passed the resolution without any ``no'' votes, and they are a pretty broad group, the States. I think that the biggest concern for us is that when you look at your--and it has already been stated here, 37 years, five chemicals, it seems to us that it needs to be quicker than that. You know, when EPA is in a process of reviewing a chemical, I think certainly for my State of Vermont, if EPA could get through that process--I don't know whether it is somewhere 6 months, 2 years to get through all the processes that would need to happen, and make a regulatory decision on that that was transparent and open, then that would, I think, make it much easier for us to address issues of concern from the people in my State. Because what happens is they come in year after year just asking the State to do something, and we are ever hopeful that something might happen at the Federal level, but 3, 4, 5, 6 years later, it starts to get difficult to sort of just defer to the Federal EPA on these things. Mr. Latta. Thank you very much, and Mr. Chairman, I see my time is expired and I yield back. Mr. Shimkus. Gentleman yields back his time. Chair now recognizes gentleman from Texas, Mr. Green, for 5 minutes. Mr. Green. Thank you, Mr. Chairman, for holding the third hearing on TSCA reform. Just for the panel, I have a district in Houston in East Harris County. It is home to one of the largest collection of chemical plants in the country, and seeing TSCA that works for the affected is important by this important statute, including industry and employees and workers and consumer advocates is vital to our constituents and the regional economy. Mr. Rawson, are you aware of any voluntary safety initiatives or product stewardship programs run by the chemical manufacturers? Mr. Shimkus. Can you check your microphone? Mr. Rawson. Thank you. Yes, there are quite a few. Some in collaboration with EPA and other stakeholders that are described in EPA's Web site, initiatives to phase out certain chemistries without having to determine that they present an unreasonable risk, but because sufficient concerns have been raised, and there are many private--I shouldn't say private. There are many product stewardship initiatives that are not done with the Agency but are just part of the good practices of a company. So to my view, this is certainly an important part of making sure that chemicals or manufacture processed and used safely. Mr. Green. So EPA has collaborated with chemical manufacturers in promoting some of the programs and---- Mr. Rawson. Yes, it has, and in many cases, with other stakeholders at the table. Mr. Green. OK. Do you know how many rulemaking actions have been taken by the EPA under Section 6 since the corrosion-proof fittings ruling? Mr. Rawson. I cannot think of one. They tried for many years with respect to grout materials, but ultimately it was a very long process and controversial, but ultimately became unnecessary because personal protective equipment was developed that made it unnecessary. Mr. Green. OK. So are the requirements for rulemaking under Section 6 too burdensome for EPA to regulate? Mr. Rawson. Well, so we can have a range of opinions at the table. My view is that the statute creates the right target. Corrosion-proof fittings read EPA the riot act a little bit, and so--and the Agency concluded let's not try that again. My feeling is they gave up a little bit too quickly. But if there are ways we can make easier without--easier to make good decisions. To me, the goal here is to make good decisions that meet all the objectives of the statute, not just to make it easier to ban chemicals. So that is what we want to do. If we make changes, we want to make sure that anything that is done helps EPA make good decisions to consider all the factors, unreasonable risk, safety of alternatives, et cetera. Mr. Green. So you testimony is we really need a structure for EPA to do it? They have enough--do you think they have enough resources to be able to do it if we gave them a statutory structure? Mr. Rawson. I think they could use some more resources, and particularly as described in my testimony, I think it would be helpful if they really sped up the review of existing chemicals. And you know, we hear over and over again with five in 37 years, and that is the number regulated, but they have actually assessed hundreds, thousands. We need a much more transparent way to keep track of that so people can have more confidence in what is being done, and a greater through put. Mr. Green. OK. Mr. Greenwood, are the requirements for rulemaking in Section 6 too burdensome for EPA to regulate chemicals? Mr. Greenwood. Pardon me? I didn't---- Mr. Green. Is the rulemaking requirements in Section 6 too burdensome for EPA to regulate chemicals? Mr. Greenwood. Well I think--as I have indicated a couple times now--I think there is a problem with the least burdensome alternative finding, the way it has been interpreted. I think unreasonable risk can work as a framework for it. I do think some of the procedural parts of it also may not be necessary. Mr. Green. If there was one change in Section 6, what would it be that you could suggest? Mr. Greenwood. Well, I would try to fix the corrosion-proof fitting determination on least burdensome alternative. Mr. Green. Ms. Reinstein, back in 2008 I was acting chair of the subcommittee, and I actually introduced a bill to ban asbestos in TSCA, and I ended up getting a lot of contacts from, you know, asbestos is a substance that comes out of the ground in California and different places. But one, I would like to thank you for your leadership and I am sorry about learning of the passing of your husband. I also represent not only an industrial area, but a lot of seafarers, and over the years, asbestosis is something that is part of their life and their families. Can I ask how did consumers first learn about the dangers of asbestosis or asbestos? Ms. Reinstein. How can consumers learn about the dangers? That is a very mystifying question and it is very important because although there are 10,000 Americans that die every year, because the nature of the disease latency period makes it very difficult for the workers and families. So I think we obviously have to work with the medical community, but also go back to labor unions and increase awareness. And that is what ADO has been trying to do is work with the congressional leadership and unions to indeed just do that. But you are right, it is an ongoing problem. Mr. Green. Which professions are more exposed--American workers exposed to asbestos? I know, like I said, people work on ships. Our ships used to be covered with asbestos because of the threat of fire. Any other professions? Ms. Reinstein. That is another great question. If you use the NIOSH database, you can actually sort by industry and you can clearly see that there is a large group between ship building, obviously anyone who served on ships like the veterans, as well as construction and also the auto industry. Those three groups of workers have been most plagued by asbestos exposure. Mr. Green. OK. Mr. Chairman, I know I am out of time and I appreciate your patience. Mr. Shimkus. Gentleman's time is expired. Chair now recognizes gentleman from Ohio, Mr. Johnson, for 5 minutes. Mr. Johnson of Ohio. The other gentleman from Ohio. Mr. Shimkus. Last, but not least. Mr. Johnson of Ohio. There you go. Mr. Johnson--that is odd for me to say. I don't say that very often. I can tell by your accent you are from the other side of the family, I think. Do the States participate in EPA's implementation of TSCA today, and if so, how? Mr. Johnson. Well, they have in a fairly small way. I mean, I think the biggest challenge for the States is because EPA has been so challenged to get to chemicals, one of the things that States have really felt is necessary is a better way for States to sort of be the petition or somehow to get the chemicals that are coming up and being raised as of concern among citizens in States to get EPA to look at those. It is a challenge because I think as has already been mentioned, new chemicals there is somewhat of a process for, but we have this huge group of chemicals that got grandfathered in 37 years ago, and I think certainly amongst the people in our States, the idea that they may be dangerous but we don't know, but they are in commerce and we will get back to them maybe never is just not an answer. Mr. Johnson of Ohio. Well maybe I am a little unclear. Are they delegated any authority under TSCA today or do they have to go ``Mother, may I'' to---- Mr. Johnson. Well, what happens today is because EPA hasn't really assessed a lot of chemicals, they don't have to go to EPA to do it. They go to the State legislature and if they can pass a regulation like California or New York or Oregon or Washington or Maine have done---- Mr. Johnson of Ohio. So they have to assume the authority? Mr. Johnson. Then they would assume it, yes. Mr. Johnson of Ohio. Do the States engage in chemicals management? Mr. Johnson. Some States do and some States don't. It is-- except for California, which is at the moment or is just about to roll out a pretty comprehensive regulation that is--they spent the last 3 years working on that would be sort of more of a system approach, most States have done it on a chemical-by- chemical basis because of a particular concern raised. And as was mentioned earlier, it usually goes through the legislature. People come in and say we need you to do something about this chemical, and so I would say that that has been--in those States that have done it, there is certainly a way to do it, but it is not particularly efficient and it means you have a spotty landscape. Mr. Johnson of Ohio. Why do you think some States have engaged more actively in chemical management than others? Mr. Johnson. Part of it is resources. Some bigger States have just been in a better position to do it, because they have been able to bring some resources to bat, either through their health department or their environmental regulatory agency. Some States have just had individual legislators who have a particular interest who have been able to bring something forward and get it passed. States like mine have been somewhat reticent to get into the business of regulating chemicals, because we haven't worked out how we would actually pay for it. And we quite honestly think that it makes sense to do it at the Federal level. Our market in Vermont is pretty small, and we don't want to somehow isolate ourselves by having a block to commerce that would just have us cut out of the market. Although we don't have a lot of industry, we do have an IBM chip manufacturing plant and the semiconductor industry is one of the ones a bit like the car industry, a lot of components involved in there. But it is really a resource issue. Mr. Johnson of Ohio. One final one for you, Mr. Johnson. Do some of the concerns that States have addressed fall under laws other than TSCA or agencies other than the EPA, for example, FDA or OSHA? Mr. Johnson. They do, although in pesticides, for instance, and Food and Drug Administration there has been a lot more activities by those agencies. It is sort of the reverse, generally pretty good. I think people feel confident. The American people seem pretty confident in those agencies, with the occasional sort of thing that stands out as an issue, whereas TSCA is almost the other way. It is like generally not confident with the occasional thing that stands out as being OK. Mr. Johnson of Ohio. Sorry I didn't have any questions for the rest of you. It was just more comfortable family to family here, so thank you. Mr. Johnson. I appreciate it. Mr. Johnson of Ohio. Mr. Chairman, I yield back. Mr. Shimkus. Gentleman yields back his time. Chair now recognizes ranking member of the full committee, Mr. Waxman, for 5 minutes. Mr. Waxman. I thank you, Mr. Chairman. Today the subcommittee continues its oversight work on the Toxic Substances Control Act, tackling two important and related issues: EPA's authority to regulate harmful chemicals, and the ability of States to take action when necessary. EPA's regulation of chemicals can be an important part of protecting families from harmful environmental exposures and pollution. Unfortunately, TSCA has so far fallen short of its objectives. Its failures have meant avoidable suffering, disease, and death. Asbestos is one of the clearest examples. Over the course of 10 years, EPA undertook a rulemaking and built an exhaustive record in an attempt to regulate this dangerous toxin, but the court threw it out and essentially, EPA gave up hope of using TSCA to address chemical risks. Mr. Rawson, you suggested in your testimony that you agree with the court's decision to throw out EPA's asbestos rule. Specifically, Mr. Rawson seems to argue that the automobile brake pads should remain on the market unless EPA can prove that brake pads not containing asbestos are safe to use. Ms. Reinstein, you know firsthand the terrible suffering associated with exposure to asbestos, and what can you tell us about the health risks posed by exposure to asbestos from brake pads? Ms. Reinstein. Thank you, Ranking Member Waxman, and you are also my Congressman so it is lovely to finally meet you in person. We know that asbestos is a carcinogen causing disability and deaths. I can only tell you that those who are diagnosed with these diseases and their entire families suffer. We have many asbestos victims who have changed brakes and have inhaled and obviously been exposed to asbestos. And again, the latency period complicates it. There is no cure for any of these diseases; however, prevention is a cure. Substitutes do exist. Mr. Waxman. In your view, if Congress were to consider TSCA reform legislation, should we ensure that EPA be able to put an end to the ongoing asbestos exposures in this Nation? Ms. Reinstein. I think that if there is a bill passed that can't do that, it needs to go back to the wood shed. Clearly, any TSCA reform must ban asbestos. Mr. Waxman. Thank you. Ms. Thomas, you represent 12 major automobile manufacturers. Do your manufacturers still use asbestos brake pads and linings on new cars? Ms. Thomas. To the best of my knowledge, no. Mr. Waxman. Do you or your members have concerns about the safety of non-asbestos brake pads? Ms. Thomas. I am sorry, repeat that question one more time. Mr. Waxman. Do you or your members have concerns about the safety of non-asbestos brake pads? Ms. Thomas. No. Mr. Waxman. But my understanding is that brake pads containing asbestos remain on the market today. Asbestos can still be found in imported brake pads sold in the aftermarket. Isn't that correct? Ms. Thomas. Yes, that is my understanding. Mr. Waxman. Now, Mr. Rawson, I would like to go back to you. Let's put aside whether the court decided the asbestos case correctly or EPA built the best record it could over the course of its 10-year effort. Do you think that this was a good policy outcome? Do you believe it was good for the public for asbestos to remain on the market? Public health advocates and State regulators remain concerned about asbestos in brake pads. For example, some States, including California, have passed bans on asbestos brake pads. Mr. Rawson. Thank you for the question. First of all, I obviously don't take lightly the hazards of asbestos and share the sympathies of everybody in this room for all families who suffered losses as a result. So I take that as seriously as everybody else. At the time of the rulemaking, new cars were already not using asbestos in brake pads. Mr. Waxman. Well what do you think the policy ought to be? Do you think it was a good policy outcome? Mr. Rawson. I am trying to answer that. Mr. Waxman. Do it very quickly, because my time is running out. Mr. Rawson. The issue was with replacement brakes, using non-asbestos brake pad on a car engineered for a brake pad could cause many more deaths than it would prevent. An EPA study said that and EPA experts said that the loss of life from putting the wrong brake pad on the car would far outweigh any benefit of the rule. The problem was EPA didn't answer that. Had they answered that---- Mr. Waxman. Let me ask Mr. Srolovic, how important is it to maintain the ability of States to take actions like that to address health risks from chemicals when EPA can't? It is an important issue. I can't support legislation that would undermine the few protections that are in current law or that would preempt successful State efforts to protect the public. What do you think? Mr. Srolovic. Congressman, I think it is very important to preserve the traditional power of States to take legislative regulatory action under their traditional powers to protect their citizens and their environment from the hazards posed by toxic chemicals. Mr. Waxman. Thank you. Well, I appreciate that. I am sorry to have cut you off, but my time is already over and I have to yield back to the chairman to call on another member. Mr. Shimkus. And he knows how tough I am on time, so thank you. I thank the ranking member. Chair now recognizes my colleague from Illinois, Ms. Schakowsky, for 5 minutes. Ms. Schakowsky. Thank you, Mr. Chairman. I had some questions for Mr. Greenwood which really go back to the history of TSCA. You made the argument that the EPA struggled over resource allocation in the early years of TSCA, and here we are almost 40 years later and I can't imagine that efforts by this body to get funding--by this body to gut EPA funding--we are talking about cutting, including the interior and environmental appropriations bill, by 34 percent, a 34 percent cut to the EPA have made it much better. But here is my question. What TSCA-related risks to human health and the environment can be anticipated if the EPA were severely underfunded? Mr. Greenwood. That is a major question. It is hard to translate that, a budget cut into specific actions. I think the budget situation at EPA, as I understand it, is that they are very limited on what they can do on new chemicals. The staffing is as lean as it can be---- Ms. Schakowsky. I am sorry, on new chemicals? Mr. Greenwood. On new chemicals. And as to existing chemicals, they have started to lay out a fairly, I think, constructive plan with a list of 83 work plan chemicals that they are trying to address, and they have a budget for it and I think it is something that I think we all would like to see progress. They are going to be using good science to assess and then decide what they can do from a risk management point of view. My guess is that that is the area that is most likely to be hurt if there are severe budget cuts, and I think it is not in the interest of most of us. Ms. Schakowsky. Thank you. It seems to me that the EPA's effort to address asbestos is illustrative of some of the underlying problems of TSCA and the existing chemicals. As you said in your testimony, asbestos was seen as a test case to prove the efficacy of TSCA. Still, it took 10 years from the advance notice of proposed rulemaking to the official ban, and that ban was overturned in 2 years and despite the findings that there are no safe levels for asbestos, many products from kids' toys to car brakes, which we were just talking about, have been found to contain asbestos since 1991. And as Ms. Reinstein said, 30 Americans die each day from preventable asbestos-caused disease. So what does the asbestos case tell us about TSCA and how should the law be changed, amended, fixed to ensure that dangerous products, you know, many years and decades later aren't still on the market? Mr. Greenwood. Well, I think that the case has told us that there are parts of the structure of the statute that prevent problems from getting decisions made. I have mentioned this now multiple times. The least burdensome alternative---- Ms. Schakowsky. I apologize for coming so late. Mr. Greenwood. No, that is OK. Least burdensome alternative provision and how it was interpreted by the court, I think most of us felt that EPA at the time after the decision came down was a surprise and was something that would have long term effects. I think it is important to recognize though that we didn't necessarily think that the other parts of the statute couldn't work. I don't recall any discussion where people thought that unreasonable risk was an inappropriate standard. It was very focused on this one issue, so I think for most of us at EPA at the time, that was the major takeaway message of concern. Ms. Schakowsky. Thank you. Again, I apologize for having you repeat it, but I appreciate your indulgence. Thank you. I yield back, Mr. Chairman. Mr. Shimkus. Gentlelady yields back her time. The chair wants to thank the panelists here today. Again, this is the third of a set of hearings on TSCA. As my colleague from Colorado said, this is one everybody would like us to do something on, hopefully something positive, and it is kind of exciting to open up the can of worms and start pulling them out and see what works and what doesn't. So I appreciate your attendance and look forward to working with you. I appreciate the involvement of the Minority and the very active questioning and the like. I would like to ask unanimous consent for a letter to Mr. Waxman from Californians for a Healthy and Green Economy, as well as a press statement from CHANGE to be submitted into the record, also a letter from the American Alliance for Justice that was sent to myself and Mr. Tonko concerning State tort law to be submitted for the record, and a resolution from ECOS, which they have been very helpful over my time as a chairman in dealing with issues, referenced by Mr. Johnson in his testimony. That will all be submitted into the record. Without objection, so ordered. [The information appears at the conclusion of the hearing.] Mr. Shimkus. And with that, I would like to declare the hearing adjourned. [Whereupon, at 3:52 p.m., the subcommittee was adjourned.] [GRAPHIC] [TIFF OMITTED] T7349.071 [GRAPHIC] [TIFF OMITTED] T7349.062 [GRAPHIC] [TIFF OMITTED] T7349.063 [GRAPHIC] [TIFF OMITTED] T7349.064 [GRAPHIC] [TIFF OMITTED] T7349.065 [GRAPHIC] [TIFF OMITTED] T7349.066 [GRAPHIC] [TIFF OMITTED] T7349.067 [GRAPHIC] [TIFF OMITTED] T7349.068 [GRAPHIC] [TIFF OMITTED] T7349.069 [GRAPHIC] [TIFF OMITTED] T7349.070 [GRAPHIC] [TIFF OMITTED] T7349.072 [GRAPHIC] [TIFF OMITTED] T7349.073 [GRAPHIC] [TIFF OMITTED] T7349.074 [GRAPHIC] [TIFF OMITTED] T7349.075 [GRAPHIC] [TIFF OMITTED] T7349.076 [GRAPHIC] [TIFF OMITTED] T7349.077 [GRAPHIC] [TIFF OMITTED] T7349.078 [GRAPHIC] [TIFF OMITTED] T7349.079 [GRAPHIC] [TIFF OMITTED] T7349.080 [GRAPHIC] [TIFF OMITTED] T7349.081 [GRAPHIC] [TIFF OMITTED] T7349.082