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bPA Auto Industry Meeting, re: Substance Regulation
Juif? 25; 2017
Globaiutomateers Q :
AUTO ALLIANCE
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00001
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M eeljfig'plli
Initiate a reguiqriwdjjAray dialog w ith ERA on substance issues
Highlight challenges unique! to th i au%3 industry regarding substance
regulations
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1 ~v.,. i'S.
Discuss key sections of-TSCA-of particular int^i;est---feK-Att-t-n:;ker,s
Ensure th a t ERA engages the auto sectoV as key stakeholders in ijts
im plem entation o f LCSA
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- - y A . ::::
Offer the input and assistance o f the auto sector as ERA moves forw ard on TSCA regulations
identify issues o f concern for future discussions and., how we can help i
GlobaiAutomakers
AUTO ALLIANCE
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00002
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00003
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00004
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AUTOMAKERS
t\ TOYOTA
De lp h i
SUPPLIERS DENSO
Glob;-: tcrnik--rj.t'.sk.Corgl
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Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00005
The Able jijanjpe and Global Automakers together make up nearly ever&gomp&ny selling new vehicles in the United Stages
> 7,25 Million >$S.OO Billion >$552-Biiiion
35 Billion
Total'Auto Jobs in the ilS vJ Total Compensation Annually New Vehicle Sales Annual Tax Revenues
GlobaiAutomakers Q :
AUTO ALLIANCE
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00006
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00007
Mime f3pipcT& 'Global utomakers are
Stakeholders
One or both associations 'Egrso^'^ ttto t f ^ l W bwing comments on TSCA regulations:
Risk Evaluation krocedioal-Rule under TSCA section 6(b)(4) Rule
Risk-Rased Prioritisation Procedural Ref t untfen TSCA section 6(b)(1) Rule
Scope of Risk evaluations for Ten Chemicals
TSCA Inventory Notification Requirements
Auto Alliance Conirnents/Globai Automakers o~1 Pro Chemicals for Risk Evaluation
O-RrieUiletAron of
Procedures for Chemical Risk Evaluation
* Trichloroethylene: Regulation of Use in Vapor Degreasing Under TSCA Skgfand ::::::::
Regulation o f Certain Uses Under TSCA 6(a)
' X- t
* M ethvlene Chloride anti N -M ethvlpyrroiidone: Regulation of Certain Uses Under
TSCA 6(a) -
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> Nanoscale Materials; TSCA Reporting and Recordkeeping Requirements
* Various individual SNURs
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GlobaIAutom akers iQ l
AUTO ALLIANCE
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00008
Auto Industry Challenges Around Substance Regulation
* Rapid changes in technology th a t may demand new m aterials * Durable complex goads * tong product developroeot. lead tim e * Long product use phase * Competing regulations aod customer requirements * Global fo o tp rin t w ith a large coroples supply chain * High capital investm ent
GlobalAutomakers Q i
AUTO ALLIANCE
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00009
> Autonomous Vehicles A Electrified Vehicles . > Ughtweighting > ICE Fuel Economy Improvements y Hydrogen Fuel Cell Vehicles
GlobaiAutomakers Q i
i
AUTO ALLIANCE
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00010
"Complex Durable Goods
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L
-Vehicle Complexity
" ..aa
Automakers have thousands o f bornl^orients in each
vehicle (esL 30,000 at lovfest component Isvsij
Meet components conta:.$ multiple material* *i
d
Automakers make many different models w ith jmany
parts unique for that model
Long Design Cycle
Engineering and validation begins up to five years prior
IX-.J1" ! ;
- to vehicles being placed on market
Supply Chain Complexity Automakers have a complex intema-Uonai supply chain Automakers have thousands o f suppliers
Designed to last > 10 years
Must maintain supply of replacement parts {articles and
mixtures)
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.i s o s o
'v 'feet-many other!
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ty, fiieleconomy.
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GlooalAutomakers r
AUTO ALLIANCE
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00011
tolrfpoeMpiTipiexty Varies
Ad electric motor (foe! pn.rhp show;! to the
right) is'a component with'multiple
|
subcomponents consisting of multiple
substa nces/m ate riaIs
A splash shield can have do subcomponents and consist of a single material
?gSecincFusi PumpCutaway StedntMaiaf Arature
GlobalAutomakers
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Funief
&ss Tiwkns.iivk-sit Wtai fftnSS 7.003* fprn.sr: w!wPA>ASCA<K}X'Sii fG;cffwc<r>6ssw!k:;:
AUTO ALLIANCE
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00012
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00013
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00014
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T.'
Compting lntf rstS;j{ReguIatory and Customer-driven) Validation: Vidiclini^yiiiatfiided Consequences
Thousands of Ports on a Vehicle
Any part change requires a host of tests and vglidationiiby OEMs and/or Supply Chain to ensure they meet the " At.
specification:
.Regulatory validation
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Safety testing {crash tests,, flammability, etc.)
Validation of functionality at part, level, assembly level, vehicle'level {performance, endurance, reliability, etc.)
* M ciriula internal and external neriorrnance standards (ASTM, PFPA, APS!, ISO, SAE , etc.)
Material validation (compatibility^ environmental durability, tensile etc.)
Manufacturing validation - will-change affect processes and tooling in OEM or supplier plants? :
Huge capital In
G loba iA uto m ake rs
r
;iW f
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00015
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00016
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Collaboration on Substances
International M a te ria lity System (ijjyfDS) - good hut with limitations
Collaboration of almost ail glofeaKJEWi
Established almost 2 decades ago to managelU tlV h'bavyjmeS&restrictlons
......................., 1
i , 'Em_______...
Contains over 30 million material dam sheets for 45 QEMs-lpaBally >;, *
More than 13,500 different chemical ingredients (Automotive Basic] Substance Llsf}_
Data entered by 157,000 suppliers (roilectup to Tog Tier}; 425,000 riser IS.'sP
OEMs have dedicated departments managing iiVIDS submissions; Usera see cjniy own date.
Confidential ingredients may he hidden (10%)
~0
De m/e/mA'issue: Reports to 0,1%
Doesn't Crank nanornateriais
Global Automotive Declarable Substances List (GADSL)
Non -profit collaboration of giobaiOEMs, suppliers and chemical industry list of automotive sy-bstance.slhat are agreed to for monitoring through formal process Chemicals listed on GADSL cannot be hidden as confidential
GlobaiAutomakers Q
d !^ AUTO ALLIANCE
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00017
Tier 3
Tier 2
Tier 1
i M DS provides a common method for identifying materials, substances and attributes
Suppliers proactively send material composition information
Gis,tw m HH
__ E S 3r~
Composition inform srtion
OEM
Composition
IM DS manages aggregated data sent forward through the supply chain.
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00018
'Jl
High C a p ita y h ie S m e iit w \try
GlobalAutomakers Q
W'on'n t a tO '^ ' PteCt(eeaTi 0,000iw ijc. VJrt(1
AUTO ALLIANCE
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00019
TSCA REFORM: Provisions important to Auto industry
Artide Provisions in Sec, 5 & 6 Replacement Part Exemption Pre-emption
GlobalAutomakers Q i
AUTO ALLIANCE
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00020
rltes
i .........
Lautenberg language on :# 'f idles ifSec, SJ; '
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"In selecting among prohibitions and otherresincd-ops, the Adm inistrator shall apply such
prohibitions or other-restrictions to ari'a rttcltrq r c a t e ^ ly 'afeaaarfes containing the chemical
substance or mixture only to the exten't necessmsy.to adrir'ess the identified risks from exposure
to the chemical substance or mixture from the article"o f category o f Articles so that the
substance or mixture does n o tp re se n ta o unreasonably risk Gf-iTjatytdifS3i1tror!t t ,rar
..environment identified In the risk evaluation..."
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Articles (like .autos and auto components} typically do not present same.exposure risks.as bulk.....
chemicals or form ulated products.
S-
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Chemical regulatory.actions (including but not limited to bans) across the whole vehicls are very
d ifficu lt clue to large hum bers'of parts and suppliers
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How will EPA Implement the new evaluations requirements for drficles?
* Under See. 5 (SNUgs, etc.) ;
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* Under Sec. 6
GlobaiAutomakers i Q
AUTO ALLIANCE
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00021
= 'Re:p%.cer^fn/Serce Parts
-Replacement arid Production P'rts J^ack-stx%>p--P:rodcmjicmufAmee
* M otor vehicle ports le.g. replacement. atfem arket, and servie* from production parts due to high volume ancfiong product lift
dffer Significantly
unione and differ
p->0 ye ars.
rpu'tv sKflF Parts. pnd
* ' :Redesigning replacement parts not common as not roll replacement parts continue production after end o f vehicle production o f a vehicle
Exemptions fo r Replacement Parts are Critical * , Replacement parts present a substantially' lower exposure risk due to significantly limited
numbers and distribution in the marketplace * Will ERA implement measures to quantify risk contribution from exposurelto chemicals in
; replacement parks compared to overall risk for th a t chemical per section q(e}(?.}(0}? "
i
GlobaiAutomakers Q :
LSCA Sec, 6 Replacement Part Exemption:
3
AUTO ALLIANCE
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00022
Sif^lof Pjre-Eijptiori
Ip Current State Regulatory Efforts as of 8/7/201?
GlobaiAutomakers Q i
State regulation ~ Pa facto hiorth American fand sometimes global! regulation
in 2016, at the state legislative ievah ''`State efforts to regulate toxics and chemicais led to 554 bills being
\ \ - M reduced in 43 states: 56 w ere enacted." fhiCSL, " State
G/7/17)
jtt a l& oad^r ievej; "2016 was an active year for
environm ental health in the states. State Legislatures
introduced 2244 bills' related lb eVwehnrnentai health,
gnaeting 452 o f th e n l" fhiCSt,
Uegisiation 2016," 6/7 /1 7 ) j I
i
Im practicable fo r autom akers to design/ roanoTarpre" end sell d iffe re n t vehicles fo r in d ivid u a l spates
Will EPA play any rolelrrensuring" states follow LSCA pre-emption provisions?
AUTO ALLIANCE
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00023
.. ~;;vr
Sumrti8
ant Points
'he combination of a global footprint
italtpyestment, long product development lead
tim e anti ong product' jse cycle drive yurperpectivejFrcRii'fflcai content regulations
Unlike other regulatory requirements that may h e a d ! resssteigdd ivifhip our own companies'
design choices, chemical restrictions cascade throughput. u s p p i y Ip lp iis p H ; om-basic
materials industries up to assembly manufacturers ,
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;Nature..pf autoJndustry requires notice of chemical regulation far in advance '
We prefer an orderly and transparent process that establishes hot only federally uniform*
requirements but also an ERA position that leads our trading partners to common
requirements
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Globaiutomateers iQ
AUTO ALLIANCE
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00024
-il
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G o in g F o rw a rd
. ' ? H S i......
Can we pla h to nieet on ;a regu|ar4jasis?
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Request ongoing two-wgy eomsttun^cstforr'
Potential Topics for future conversations;''',. i
* Processing
* Chemical identifiers (CAS numbers)
* Information gathering
. .Gy "|G.. !
<v .
Input on how we as the auto industry can help the ERA move forward
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Thoughts from your side?
Gioha1Automakers Q ____ 1_____________________ ______ ,, ______________
a-u-t-o--a-l-l-i-a-n--c -e
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00025
Sierra Club v. EPA 18cv3472 NDCA
Tier 5
ED 002061 00044067-00026