ACA in Brief• Founded in 1888

• Industry Trade (advocacy) Association with Five Targeted Affiliates

• Representing more than 90% of U.S. coatings production

• Membership – Coatings Manufacturers, Raw Material Suppliers, Chemical Distributors, Adhesive and Sealant Manufacturers, S&T Professionals

• Headquarters – Washington D.C.

• 65 staff professionals

Issues Areas

• TSCA Implementation/Chemicals Management

• Clean Air/VOC/HAPs• Product

Stewardship/Sustainability• GHS/ Hazard

Communication• Transportation

• Trade• Regulatory Reform• Infrastructure Investment• Labeling• Water Quality and Waste

Management• Sale and Display Restrictions

MARCH 31 - APRIL 2, 2020INDIANA CONVENTION CENTER

INDIANAPOLIS, INDIANA

2018 Results versus 2020 Projections:

137,500/147,125 Net sq. footage of Exhibit space (7% increase)

9,427/10,086 Attendees (7% increase)

558/597 Exhibitors (7% increase)

55 Product Presentations (sold out)

NEW FOR AC Show and Conference 2020

New Adhesives and Sealants Pavilion. New Powder Coatings Pavilion. New “Start Up” Pavilion. AC Conference dates shifted to give conference attendees

more time on the show floor! AC Conference location moved to the 1st floor directly across

from the show floor. Most AC Conference breaks on show floor. Additional luncheon on show floor final day.

• South Coast Air Quality Management District (SCAQMD) - most stringent AIM VOC rule

• California Air Resources Board (CARB) - utilizes SCAQMD rule to develop Suggested Control Measure (SCM) for the rest of California (2000, 2007 and 2019 SCM )

• Northeast States - Ozone Transport Commission (OTC) States develop their Model Rules (Phase I, Phase II, Phase III) based on the CARB SCMs

• Midwest (Lake Michigan Directors Consortium) LADCO, Utah and Colorado utilize the OTC Model Rules

• Rest of States - EPA National AIM Rule • 8 different levels of AIM VOC rule stringency in the US

AIM VOC Landscape

PCBTF - one of the most widely used VOC “exempts” Used in various coatings including ◦ Architectural and Industrial Maintenance (AIM) coatings; Marine coatings; ◦ Autorefinish coatings; ◦ Factory applied metal, plastic, and wood coatings; ◦ Adhesives ◦ Consumer Products including paint thinners.

In 2017, the National Toxicology Program (NTP) determined PCBTF to be a potential carcinogen June 28, 2019 OEHHA added PCBTF to the Proposition 65 list of chemicals Fall 2019 - OEHHA to release proposed PCBTF unit risk factor (IUR) and No Significant Risk

Level (NSRL) 2020 OEHHA to release final IUR and NSRL, review by the CA Scientific Review Panel SCAQMD to utilize OEHHA unit risk factor and conduct risk assessment - may pull

VOC exemption

PCBTF (Oxsol 100)

PCBTF (Oxsol 100)

• Usually chemical manufacturer would conduct advocacy efforts - no domestic manufacturer of PCBTF

• ACA filling this void – Evaluating NTP report – Developed extensive Proposition 65 comments – OEHHA and SCAQMD advocacy

• Important to determine if NTP animal studies are relevant to human health - technical arguments could be helpful in our advocacy efforts

• Completed Weight of Evidence/Relevance to Human Health Evaluation • Advocacy goals

– Increase VOC limits where alternatives are not available – Reasonable OEHHA risk factor to allow continued use with engineering controls and PPE– Adequate time for manufacturers to reformulate

• Proposition 65 - Proposed No Significant Risk Level for p-chloro-α,α,α-trifluorotoluene (para-Chlorobenzotrifluoride, PCBTF)•• The Office of Environmental Health Hazard Assessment (OEHHA)• proposes to adopt a Proposition 65 No Significant Risk Level (NSRL) of 23 micrograms per day for p-chloro-α,α,α-trifluorotoluene(para-Chlorobenzotrifluoride, PCBTF). Public comments concerning this proposed action must be received by OEHHA by December 2, 2019.

PFAS Activity - States

• In 2018, over 45 bills introduced in states• Bills addressing PFAS contamination of drinking water

passed in MI, NC, NH, NY, VT and WA• Regulatory activity in states• State Attorneys General

– New York + 20– Pennsylvania AG urges passage of H.R. 2500

Board of Director Meeting, October 15, 2019, Intercontinential Hotel, Chicago,

Illinois

PFAS - Legislative Activity

• NDAA, H.R. 2500– designate PFAS chemicals as hazardous substances under

CERCLA– Not in Senate bill (S. 1790)

• Coalition Efforts (US Chamber, NAM)– Statement of Principles– Letter to Armed Services Committee– Advocacy efforts

Board of Director Meeting, October 15, 2019, Intercontinential Hotel, Chicago,

Illinois

TiO2 Classification in the EU: PROPOSAL ADOPTED (October 4, 2019)

The European Commission has adopted the TiO2 proposal. Please find the adopted proposal attached or under the following link:

http://ec.europa.eu/info/law/better-regulation/initiatives/c-2019-7227_en.

Thereby, the dossier will enter a two months scrutiny period in which the European Parliament and Council (EU Member States) can object.

Should there be no objection, the dossiers follows these steps:

Publication in the Official Journal (December)Entering into force on the 20th day after publication Final application 18 months after the date of entry

Expected Compliance: Mid-2021

What it means… basic classification

BOTTOM LINE: Respirable TiO2 du particles will carry the cancer hazar warning.

What it means…. Interpretive ANNEX

ADDITIONAL PRECAUTIONS for LIQUID and POWDER PAINT LABELS

TSCA Implementation/Compliance

• TSCA Implementation• Final TSCA Inventory and Compliance Challenges• EPA New Chemical Review (PMN Review)

• 90 day review under statute – Backlog of up to 500 PMNs– Average time for completion: 7 months to 3.5 years

• Impact on Industry– Stifling innovation– Preventing global product launches– US market stuck with existing technologies– Expansion of LVE and polymer exemptions

Trade

• Mexico, Canada• China• Japan• Miscellaneous Trade Petition System

USMCA – ACA Activities

• Comment Letters– USTR

• Congressional Communications– Coalition Letters to Congress– Ohio Day– Emails to House Members of Democratic

Caucus– CoatingsVOICE campaign and state fact

sheetsBoard of Director Meeting, October 15, 2019, Intercontinential Hotel, Chicago,

Illinois

Miscellaneous Tariff Bill Petition System

• Must apply for temporary duty suspension• Under current law, MTBs will not relieve importers of

additional duties imposed under Chapter 99 of the Harmonized Tariff Schedule, including products of China subject to section 301 duties and steel and aluminum products subject to section 232 duties.

• The MTB Petition System began accepting petitions on October 11, 2019. The deadline to submit petitions is 5:15 PM, ET on December 10, 2019. No late submissions will be accepted.

State Legislation

• PaintCare Expansion and Maintenance• HHW EPR

• Chemicals Management Efforts• Lead Paint Liability• Coal Tar Sealants

• Single Use Plastics

Sustainability Initiatives

• Product Category Rule and

• Sustainability Program Development

Product Category Rules

• Resinous Floor Product Category Rule– Finalized and published in December of 2018

• Powder Coatings Product Category Rule– Approved in October and will begin seating the Joint Committee

this month• Actively exploring other market segments for PCR

Development

• Scope of the Program is similar to ACA Architectural Coatings Product Category Rule

• The goal is to allow this program to recognize what companies are already doing in the green building space

• The program will include both product specific and company specific criteria

General Industry Sustainability Program Framework

– ACA Labeling Guide – Guide to Training Hazardous Materials Employees

Involved in Transportation (Hazardous Materials Transportation Guide)

– Guide to FTC Labelling Requirement for Health and Environmental Marketing Claims and Certifications

– Powder Coatings Guide – Inventory Reset/Due Diligence Guidance

ACA 2019/2020 Compliance Guides

The International Paint and Printing Ink Council (IPPIC)

is becoming the World Coatings Council

The Voice for the Global Coatings Industry

Priority Issues - International • Restrictions on Lead Use in Paint

– Working with the UN’s Lead Paint Alliance to establish and enforce legal restrictions on lead use in residential and decorative paints

• Marine Coatings • Microplastics in the Marine Environment

– Engage national governments and research organizations to better understand paint’s contribution to new-found sources of marine pollution (i.e. polymer/film fragments from surface preparation and post-application clean-up among other sources)

• Chemicals Management (General and Specific)– Ensuring proper risk/exposure assessment and viable risk management approaches for paint raw materials (including

biocides, TiO2, GHS Classifications, TDG, VOC’s)

• Supply Chain Management and Sustainability Issues (General and Specific)– Engaging NGO’s and business partners to increase awareness of supply chain issues, tracking supportive actions and

identifying feasible support (including Natural Mica “Effect” Pigments)

• Indoor Air Quality and Paint Emissions – Sharing technical information and advocacy efforts to address public concerns about paint’s contribution to (indoor) air quality