Update on U.S. State Regulations & Testing Requirements

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1 Update on U.S. State Regulations & Testing Requirements Hosted by United States Fashion Industry Association (USFIA) & SGS July 19, :00 P.M. Eastern/11:00 A.M. Pacific

2 Today s Speaker Louann Spirito Director of Technical Support for Softlines SGS North America

3 Do you have a question? During the webinar, all attendees will be assigned to listenonly mode. Please use the Questions box on your dashboard to ask a question during the webinar.

4 Q u e s t i o n s? Please use the Questions box on your dashboard on the right side of your screen. You can also ask a question after the webinar. info@usfashionindustry.com Phone:

5 Update on U.S. State Regulations & Testing Requirements Louann Spirito Director Technical Support Softlines July 19, 2016

6 GOAL OF STATES To reduce exposure of harmful chemicals to children and sometimes adults To limit chemicals used in certain products sold in some states To study and evaluate the chemicals used and their effect on health and environment Find alternative chemicals And do it faster than the Federal Government 6

7 CALIFORNIA PROPOSITION 65 7

8 CALIFORNIA PROPOSITION 65 California Proposition 65 includes a list of chemicals known to cause cancer or birth defects or other reproductive harm if consumers are exposed to any listed chemical This list has grown to include approximately 800 chemicals since it was first published in

9 CALIFORNIA PROPOSITION 65 Businesses are required to provide a "clear and reasonable" warning before knowingly and intentionally exposing anyone to a listed chemical. Court case decisions or settlements are used to establish substance limits believed to be safe for consumers Most important substances in our industry are Lead Cadmium Phthalates 9

10 TRENDS Number of 60-day notices Continuing to target Handbags/accessories Footwear Focus on Phthalates Lead Cadmium 10

11 TRENDS Settlement limits Have leveled off to the federal limits Except in some cases! Original Temp CPSIA CPSIA After CPSIA After CPSIA Occasional PPM 11

12 SETTLEMENTS - LEAD IN BELTS Belts and Footwear Product Reference Reformulation Reference County of Alameda, RG- Case No Paint 90ppm Leather 300ppm Lead PVC 200ppm Lead Belts Reference Russell Brimer vs Franshaw, Inc., and Does 1 through 150 County of Santa Clara Case No. 11-CV μg Lead (NIOSH 9100) and < 100 ppm Lead Payment: $750 to State, $28,500 attorney fees Belts Reference Held vs Fashion Avenue Sweater Knits LLC No court case no. (settlement agreement) 1.0 μg Lead (NIOSH 9100) and < 50 ppm Lead, and 1000 ppm DEHP Payment: $1,125 to State, $18,875 attorney fees 12

13 PROPOSED REFORM CA Governor Brown proposes reform in

14 PROPOSED WARNING REGULATION Use of familiar exclamation point graphic in most warnings Identification of at least one Prop 65 chemical to which the consumer would be exposed Product must list the OEHHA website 14

15 PROPOSED WARNING LABEL Warning: This product contains a chemical known to the State of California to cause cancer. WARNING This product can expose you to formaldehyde, a chemical known to the State of California to cause cancer. For more information go to: 15

16 PROP 65 UPDATES List is reviewed and substances are added and deleted New chemicals added BPA Effective date May 12, 2016 No 60 day notices yet Proposed changes to the law Not going away 16

17 Washington State s Children s Safe Products Act WASHINGTON 17

18 Washington State s Children s Safe Products Act Went into effect July 1, 2009 Purpose: To prevent exposure of toxic chemicals to children Lead, Cadmium, Phthalates To develop a list of chemicals on which manufacturers must report To gather information about the quantities of these chemicals that come into Washington State 18

19 Chemicals of High Concern to Children This list is called the Chemicals of High Concern to Children (CHCC) Currently CHCC consists of 66 chemicals considered toxic bioaccumulative, persistent found either in children s tissue (blood, urine) or in children s products 19

20 Reporting DOE has a web-based reporting form on their website This is a self-declaration by the manufacturer, and no test results are required Reporting is done by product category Clothing Footwear Toys/Games 20

21 Washington State s Children s Safe Products Act The DOE has recently published an enforcement guideline for compliance with lead, cadmium and phthalates Will enforce state limits for children s products that are not covered by a limit under CPSIA Washington s limits for lead, cadmium and phthalates in children s products cover a broader range of products and are also generally more stringent than the CPSIA limits. 21

22 Washington State s Children s Safe Products Act The Washington standard for lead, cadmium and phthalates cannot be enforced for products to which a federal standard applies Lead content. There is considerable overlap between the products covered by the federal lead limits and children s products under the Washington law Cadmium content. Children s products such as childcare articles, clothing, footwear and jewelry are subject to Washington s CSPA limits 22

23 Washington State s Children s Safe Products Act Phthalates - Children s products such as clothing, footwear and cosmetics are subject to Washington s CSPA limits Other than lead, cadmium and phthalates, no restriction on selling any children s product which contains one or more CHCC at any concentration by any state 23

24 ENFORCEMENT DOE selects products at random for testing If they find a violation, the manufacturer will be notified He has 45 days to respond before enforcement action is initiated, if any Manufacturer will provide evidence of a manufacturing control program (ISO, ASTM, best manufacturing practices) Can provide evidence of due diligence (test results, audits, quality/purity of feedstock) DOE prefers investigation/correction to enforcement action. ($5000 per incident otherwise) 24

25 CHEMICALS OF HIGH CONCERN TO CHILDREN VERMONT 25

26 VERMONT Vermont has regulated the use of individual chemicals of concern lead mercury bisphenol A phthalates decabromodiphenyl ether tris(1,3-dichloro-2-propyl) phosphate tris(2-chloroethyl) phosphate Inefficient system 26

27 VERMONT Establishes a list of chemicals of high concern to children 66 chemicals Very similar to Washington State CSPA Beginning July 1, 2016, manufacturers must report each chemical of high concern intentionally added contaminant Reporting deadline is January 1, 2017 Manufacturers are required to provide disclosures to the department by this date The website for reporting is open 27

28 VERMONT 28

29 DIFFERENCES Establishes a fee of $200 per chemical No tiered system for reporting 29

30 Chemicals of High Concern MAINE 30

31 MAINE TOXIC CHEMICALS IN CHILDREN S PRODUCT LAW Maine has designated 36 compounds as Chemicals of High Concern Four phthalates and formaldehyde changed from "high concern" to "priority chemical" status under state rules Manufacturers need to report the use of the chemicals in children s products sold in the state Priority chemicals identified: BPA, NP, NPES, Cadmium, Arsenic, Mercury, Formaldehyde, Phthalates 31

32 OREGON 32

33 OREGON Oregon has recently established the initial list of high priority chemicals of concern (HPCCs) for reporting in children s products Proposed currently in Senate Committee The first biennial notice will be no later than 1 January, 2018 The list of HPCCs would also include the reporting list of Chemicals of High Concern to Children (CHCCs) from Washington State The criteria for reporting an HPCC are also similar to those for Washington 33

34 NEW YORK STATE & 4 COUNTIES 34

35 NEW YORK Albany Local Law "P" (replaces local law "J") No Reporting Requirement Westchester County No Reporting Requirement Suffolk County No Reporting Requirement Rockland County Local Law No. 3 (amended) No Reporting Requirement New York City (proposed) No Reporting Requirement 7 Heavy Metals Various limits 7 Heavy Metals Formaldehyde Banned 6 Heavy Metals Banned 7 Heavy Metals Banned 7 Heavy Metals Formaldehyde Banned Counties have agreed not to enforce until the law suit is settled Will only enforce Federal limit Have no known ability to enforce NY State has passed Assembly, waiting on Senate vote 35

36 FLAME RETARDANT CHEMICALS PROHIBITION Many States have proposed or imposed a ban on flameretardant chemicals used in children s products and upholstered residential furniture TDCPP (tris(1,3-dichloro-2-propyl)phosphate) Decabromodiphenyl ether; Hexabromocyclododecane; and TCEP (tris(2-chloroethyl)phosphate) 36

37 Toxic Substances Control Act TSCA 37

38 TSCA Federal Law EPA must make a list of high and low priority chemicals for review High priority chemicals must be actively investigated by the EPA for safety and uses EPA must make a final determination of the safety of the chemicals using Good Science and taking Risk and Exposure into account As chemicals receive final determinations, new chemicals will be prioritized 38

39 TSCA New TSCA clearly gives the EPA more power to regulate chemicals in consumer products, along with more budget to do it The new TSCA is still focused on regulating chemicals rather than products EPA still has to write rules for enforcement and how the regulations relate to consumer products and articles; those will need to be written in the coming year 39

40 TSCA We assume that the regulation of chemicals in consumer products will be part of the final determination that is released after an investigation into the chemicals 40

41 TSCA - PREEMPTION The bill does nothing to preempt existing US State Chemical Laws in consumer products in the near future The bill does preempt NEW state laws while the EPA is investigating the chemical. A final determination will also preempt a state law The bill only preempts new laws about chemicals that the EPA is actively investigating, and the preemption is limited to 3.5 years 41

42 TSCA - PREEMPTION Final determinations by the EPA will preempt existing or NEW state chemical regulations in consumer products that conflict with the EPA determination Final determinations are not expected for several years, so US laws may start to align around

43 WHAT DO I DO TO COMPLY? 43

44 IS THIS MANAGEABLE? Regardless of how the chemical got into the product, the manufacturer must be aware of the CHCCs in the product or component Understand how these chemicals are used and where they can be found These are NOT a Restricted Substances List (RSL) Check with raw material suppliers to obtain the information 44

45 IS THIS MANAGEABLE? MSDS cannot be relied upon to contain this information Only required to contain hazardous chemicals if present at 1.0% or greater Or carcinogens if present at 0.1% or greater Not required to list the amount present Does not account for contaminates Oeko-tex, bluesign or Eco-Passport certifications May not include all of the chemicals in question Some chemicals are either intentionally added or present as a contaminate above 100ppm and must be reported Testing is NOT required by the regulations but is available 45

46 IS THIS MANAGEABLE? It is impractical to test each product offered for sale in Washington State for all 66 chemicals A risk-based approach by testing for those chemicals that are likely to be present can be used Since not all 66 chemicals will be found in all materials Testing can be reduced by testing only those chemicals likely to be found in specific material categories If a screening test is conducted and presence of a CHCC is determined, quantitative analysis must be performed 46

47 IS THIS MANAGEABLE? Material # of CHCCs suggested for testing after risk assessment Plastic / Foam 33 Synthetic Rubber / Silicone Rubber 23 Synthetic Fabric 25 Coating 32 Coating with Substrate 37 Paper and Paperboard 7 Wood 13 Natural Fabric 17 Natural Leather 19 Metal / Ceramic / Glass 6 47

48 SOURCES FOR INFORMATION Work with your third party testing partner Have a complete understanding of the product requirements Make a written plan for how you will manage requirements Know your product & supply chain Communicate your requirements to your suppliers 48

49 RECOMMENDATIONS Be Proactive! Plan to exceed government standards Understand company requirements before production Establish a comprehensive testing program starting with raw materials through finished product Work with a quality partner that understands the requirements, test methods and quality solutions 49

50 SGS Group Management SA 2015 All rights reserved - SGS is a registered trademark of SGS Group Management SA