California’s Safer Consumer Products Regulations Overview and Implementation April 9, 2014

1. California’s Safer Consumer Products RegulationsOverview and ImplementationApril 9, 2014

2. What are the Safer Consumer Products Regulations? • Assembly Bill 1879 (2008)- required DTSC to adopt regulations establishing a process to: • Identify and prioritize chemicals in consumer products with potential to cause adverse public health or environmental impacts • Evaluate safer alternatives • Shared vision - a science-based process to drive markets toward safer products • DTSC’s interpretation – manufacturers should ask: “is it necessary?”

3. SCP Regulation – How it Works Candidate ChemicalsList 1. Chemicals 2. Products(Product-Chemical Combinations) Priority Products 3. Alternatives Analysis Alternatives Selection 4. Regulatory Response

4. Chemicals & Products Petition Process • Anyone may petition DTSC to add / remove a chemical, chemical list, or product • High priority for petitions by federal and California regulatory programs

6. Why “Candidate Chemicals”? • Manageable universe of substances for prioritization • List of lists approach minimizes surprises and facilitates stakeholder acceptance • Sends immediate signals to the marketplace • Detersregrettable substitutions

8. Selection of Initial Priority Products • Proposed list of 3 product-chemical combinations released March 13, 2014: • Spray Polyurethane Foam (SPF) Systems containing unreacted diisocyanates • Children’s Foam Padded Sleeping Products containing Tris (1,3-dicloro-2-propyl) phosphate (TDCPP) • Paint and Varnish Strippers and Surface Cleaners containing methylene chloride • DTSC to propose a 3-year workplan for additional Priority Product listings in October, 2014.

10. Priority Products Listing Process – Additional Procedural Requirements • External scientific peer review • CEQA • Economic impact analysis • Environmental Policy Council review

11. Regulatory Off-Ramps • Notice of intent to remove chemical of concern or product (within 6 months of PP listing) • Alternatives Assessment Threshold (AAT) - DTSC may include in final PP listing • Petition to de-list (chemical or product)

12. Alternatives Analysis Process: Required after a Priority Product is listed: • To evaluate alternatives to use of COC • AA first stage & Preliminary AA Report • AA second stage & Final AA Report • Alternate Process AA

13. Scope of AA - “A-M” Criteria in Statute • Energy efficiency • Greenhouse gas emissions • Waste and end-of-life disposal • Public health impacts: sensitive sub-populations • Environmental impacts • Economic impacts DTSC required to issue AA guidance before adopting first list of Priority Products Product function/ performance Useful life Materials/resource consumption Water conservation Water quality impacts Air emissions Product use, transportation,energy inputs

14. Responsibilityfor Compliance 1 • MANUFACTURER: makes the product or controls the manufacturing process, or has the capacity to specify the chemicals in the product. 2 • U.S. IMPORTER: imports the product into California. 3 • RETAILERS: sell the product in California. • -OR- • ASSEMBLERS: assemble products containing Priority Product components

15. Transparency • AA final reports posted - allow for redaction of trade secrets • Public comment period for final AA Report • DTSC will review comments to determine which warrant a response from manufacturer

16. Potential Regulatory Responses • No action • Additional information to DTSC • Additional information to consumer • Additional safety measures • Use Restrictions/Prohibitions on Sales • End-of-life product stewardship • R&D funding

17. Implementation Timeline

18. Implementation Challenges • Objective selection of Priority Products • PP Rulemaking – APA, scientific peer review, economic analysis and EPC review • Lawsuits • More PRA requests • Petitions to add/remove CCs and PPs • Filling data gaps - especially product/market data • Managing data and trade secret information • DTSC resources