(February 12, 2008) A state agency is entering the second phase of a program that could lead to new regulations mandating how businesses manufacture, label and even educate consumers about their products.

The “California Green Chemistry Initiative” was launched last April when Linda Adams, secretary of the California Environmental Protection Agency (Cal/EPA), directed the California Department of Toxic Substances Control (DTSC) to lead other state entities in the effort.

On January 31, Cal/EPA released a report compiling policy options that more than 600 participants submitted during phase one. The 818 suggestions covered the gamut from establishing new requirements for data collection on certain products to prohibiting certain chemicals, conducting more research on chemicals, providing technical assistance to businesses and a recognition/award process.

“Green Chemistry seeks to transform industrial activity to create a zero-waste society,” states the executive summary of the report.

The “green chemistry” program not only seeks to fill data gaps on chemicals in commercial use, but also to suggest how to further regulate the use of chemicals in California. It seems modeled after the all inclusive policies used in Canada and the European Union.

The program is being implemented in two phases. In the first phase, April to December 2007, the department gathered stakeholder suggestions on options for carrying out the policy. The second phase, to include public workshops to solicit more detailed, in-depth analysis of those options, will conclude with the presentation of recommendations to the Cal/EPA secretary this summer.

Possible Effect on Business

Options outlined in the report include:

• Data Collection and Use: The report states that businesses do not always know the substances that are in their products or supply chains. Therefore, California should build a statewide chemical inventory identifying chemical uses by type, industry sector and toxicity.
• Economic Incentives and Markets: The report calls for an incentives and penalties mechanism to encourage businesses to change manufacturing inputs and processes should consumers be exposed to toxic chemicals in products. Incentives listed include: low interest loans, grants and tax credits.
• Statutory and Regulatory Requirements, Enforcement: Prohibitions on uses or bans on harmful chemicals or product labeling could be set in place for manufacturers. Also listed are requirements on data collection, reporting, disclosure and take-back programs that would require manufacturers to take back certain products after use.
• Voluntary Measures: Existing public-private partnerships and programs could be expanded to encourage companies to design and sell less toxic products.
• Education and Outreach: The report acknowledges that most of the general public, including businesses, are not aware of “green chemistry.” Therefore, businesses would be encouraged to communicate the effort.
• Research and Technology: To advance research and discovery, laboratories and research institutions would be encouraged to conduct research in new screening methods, production methodologies and safer substitutes and alternatives.
• Technical Assistance: The state would be urged to provide a “green chemistry” business program to promote access to information for businesses on the topic. Such a program could include workshops, demonstration projects, training and education, and mentoring and curriculum development.

Other Key Elements

• The majority of the stakeholders said new laws and regulations should be among the options that decision-makers consider for the California Green Chemistry Initiative. 
• Political will, public support and informed consumer choice will be necessary for a successful program, the report said. Therefore, California must train a new generation of scientists and engineers who conceive of molecules in a “societal context.” 
• Awards for high performance were mentioned as being important to use as marketplace signals to guide consumers to products from companies of distinction.

Workshops

According to a draft schedule, DTSC will conduct separate workshops on each major topic beginning this month and will announce dates and locations on February 15. A “preferred framework” is to be released for public comment in mid-May.

The department will be asking members of the public and interested parties questions such as how an option will be implemented; by whom and in what way; how much will it cost and who pays; what is the timeframe; and what are the pros and cons.

CalChamber Efforts

The California Chamber of Commerce is actively involved in building a coalition of business representatives to develop a collective response to Cal/EPA.

CalChamber members who are interested in joining the coalition are invited to contact Jason Schmelzer at (916) 444-6670, jason.schmelzer@calchamber.com.

Staff Contact: Jason Schmelzer

Additional Materials

Environmental Regulations