Document NewL745Gjz476ZBKKw1DaO6jE

UCC BUSINESS CONFIDENTIAL Not to be released without approval of R.F. Kelley ISSUE SUMMARY UCC FEDERAL GOVERNMENT RELATIONS DEPARTMENT 194A Draft Report December 3r 1980 REGULATION OF ASBESTOS Description and Background Asbestos is a known human carcinogen. Asbestos was the first material regulated by OSHA and has been subject to a standard since December, 1971. The Environmental Protection Agency (EPA) and the Consumer Product Safety Commission (CPSC) have worked out an inter agency agreement which divides up the regulatory responsibility for the massive asbestos efforts now underway. The EPA will regulate asbestos under the Toxic Substances Control Act or TSCA, the Resource Conservation and Recovery Act (RCRA), and the Clean Air Act. Financial Impact Union Carbide's asbestos business is especially susceptible to the mandatory substitution approach being considered by EPA and CPSC. Without regard for higher cost and lower performance, non-asbestos substitutes are available for many of our current applications. Although total asbestos sales are relatively low, the quality of the business is excellent, with a net income of between S500M to SIMM per year. UCC Position We do not oppose regulations which are necessary to enhance worker safety and protect the environment, and we believe that current regula tions are adequate to accomplish this. We will continue an active role in the Asbestos information Association of North America (AIA/NA) because our interests are often not the same as other asbestos suppliers and users. The Other Side In analyzing the exposure to asbestos, the EPA has used an innovative "cradle-to-grave" approach similar to that used to ban polychlorinated biphenyls. As described in the October '79 ANPR the approach is to measure the risk at each step in the life cycle of the substances (mining, milling, transportation, product manufacture, product use, and final disposal) and add them together. If the cumulative risk is judged to be unreasonable, the EPA takes the position that all except absolutely Auq3 UCC 013821 UCC BUSINESS CONFIDENTIAL 194A essential uses should be banned. They have already made a tentative conclusion that an unreasonable risk situation exists for asbestos, and this is reflected in the proposed regulatory alternatives. Allies and Opponents Our allies on this issue include the National Association of Manufacturers, the American Mining Congress, and the Asbestos Information Association/North America, all of whom have been involved with the regulatory aspects of asbestos. UCC Actions Taken . Union Carbide has been active in participating in the meetings with the National Association of Manufacturers and the Asbestos Information Association. Union Carbide has been supportive of comments submitted by the Asbestos Information Association in response to an advance notice for proposed rulemaking issued by EPA in October of 1979. UCC Personnel Involved Harrison B. Rhodes, Metals, Niagara Falls John L. Mayers, Metals, Niagara Falls Situation Update and Outlook The regulatory timetables that are now appearing give belief that there are several more years of regulatory investigations ahead with the result being substantiative legal challenges. It is likely that the courts may be the only possible source of relief. Bans or mandatory substitutions are not expected as a result of the large scale regulatory actions in progress. Final regulations reducing the asbestos exposure may take one to three years to be promulgated with several more years after that open for industry to come into compliance. Adverse publicity related to proposed rulemaking and litigation proceedings is doing more harm to the asbestos industry than promulgated regulations. It seems apparent that some agencies are using the media in a calculated manner to achieve their end. Federal Government Relations Contact: R.F. Kelley Supporting Contact: George J. Hanks, Jr. Address: 1730 Pennsylvania Avenue, N.W. Suite 1250 Washington, D.C. 20006 Telephone: (202) 872-8555 SUPPLEMENTAL DISTRIBUTION LIST R.A. Allenbach R.G. Beverly J.B. Browning T.A. Carmody J.L. Mayers H.B. Rhodes T> ^ . `r f-js /jr/194A UCC 013822 36C