National VOC Rule Sparks Congressional Interest

by Robert L. Redding, Jr.

Congressional interest in Clean Air Act implementation is on the rise once again, spurred by concern over non-attainment areas and the proposed "national rule" on automotive refinish products. These developments certainly hold interest for members of the Automotive Service Association (ASA).

First, let’s look at concerns with non-attainment areas. There are approximately 150 urban areas in the country that have clean air problems, and about 100 of these are designated "non-attainment" areas where pollution prevention measures need to be put in place. ASA has argued that more suburban areas should be included in the non-attainment areas because of commuters going into the cities on a daily basis. The inclusion of these areas has also been mentioned as a possible future initiative by some members of Congress. Obviously, the decision to expand a non-attainment area boundary should have a clean air payoff, but such expansion would benefit the automotive service industry if it means wider attention to proper vehicle maintenance.

The second area that is gaining attention has to do with the U.S. Environmental Protection Agency’s (EPA’s) proposed rule to reduce the emission of volatile organic compounds (VOCs) from automotive refinish products. After the EPA put forth the rule in April, it seemed as though the proposal would simply glide into its final regulatory stages. Now several bipartisan efforts are building in Congress to take another look at the national VOC rule.

A little background is necessary here. The proposed rule would affect five large automobile refinish manufacturers and possibly an additional number of small manufacturers. The rule focuses on limiting the VOC content per coating category at the manufacturing and importing levels. The rule does not contain any point of sale provisions regarding who may buy refinish products.

Early estimates of the annual cost of the proposed national rule came out to approximately $5 million. Supposedly these costs would result from the training of refinish company and distributor representatives, as well as technicians, in the use of lower VOC coatings. The EPA estimates that the cost of coatings will increase by less than 10 cents per gallon. The cost to the consumer of a typical refinish repair is expected to increase by less than 0.5 percent.

Now, back to what’s brewing on Capitol Hill. Four members of Congress have written a letter to Leon Panetta, White House chief of staff, stating that the proposed rule did not meet recently enacted small business rulemaking regulatory requirements. Supported by President Clinton, this small business law requires that new regulations initiated by a federal agency can go before Congress for review. Specifically, Congress can overturn proposed regulation by passing a resolution.

The bipartisan group of members believes the EPA skirted this new small business regulation by issuing the VOC proposed rule shortly before the small business regulation was to take effect. Many believe that this effort is backed by a group of approximately 100 small paint manufacturers that claim the national refinish rule will put them out of business. The paint companies supplying the supporting data to the EPA in the development of the rule were larger manufacturers. These larger manufacturers also dominate the National Paint and Coatings Association.

Another group in the U.S. House of Representatives feels that the national rule does not go far enough. ASA has received numerous calls since its annual meeting from House members asking questions about ASA’s point-of-sale initiative. In the 1990 Clean Air Act Amendments, VOCs were addressed by calling for states to achieve a 15 percent reduction in total VOC emissions by 1996. Since 1993, ASA has advocated that the best method to reduce VOC emissions from automotive refinishing is through product control at the point of sale. Although the Clean Air Act does not specifically mention body shops in its VOC reduction criteria, some members of Congress do not understand why the EPA would not regulate a group that has asked for some regulation.

ASA has had some limited success around the country with its point-of-sale initiative. State legislatures have seen some bills dropped in; one municipality in Texas has moved on new legislation; and several ASA state affiliates have made point of sale their top priority for 1997. The key elements of the bill are:

• minimal equipment requirements,

• shared recordkeeping responsibilities,

• and technician training.

In comments to the EPA reviewed by ASA, the National Paint and Coatings Association argued that lacquer coatings should be exempt to protect antique car hobbyists. ASA does not contend that the hobbyists’ access to lacquer coatings be completely denied, but there should be a cap or some threshold that determines a very firm limit as to how much of the lacquer may be purchased by hobbyists.

Some distributors argue that the small amount of sales going to non-professionals is a very minor part of their business, yet somehow they haven’t lost their fervor for trying to halt point-of-sale initiatives.

ASA will continue to advocate point-of-sale legislation across the country. Our major point is that only refinish professionals have the basic equipment and education needed to properly use these products, thereby ensuring emissions are kept to a minimum and products are safely and properly used and disposed of. The paint manufacturers state it best with the labeling they commonly place on their products: "For Professional Use Only." We agree and hope more legislators at various levels of government catch on to the common sense and effectiveness of point-of-sale control.

Robert L. Redding, Jr., is ASA’s Washington representative. He holds a law degree from George Washington University School of Law.


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AutoInc. Magazine ®, Vol. XLIV No. 8, August 1996