The impacts of regulatory provisions of the TSCA of 1976 and OSH Act of 1970 on the capital and operational costs of a chemical producing facility.
There are several federal environmental statutes & many state laws that deal with ecological issues & the protection of employees within the working place. A chemical manufacturer is supposed to know these laws and regulations since they influence conditions of the working environment, the manufacture, importation, processing, distribution, use, and or disposal of any chemical substances that present a significant threat to human health or the environment.
In 1970 following approval by Congress, the Environmental Protection Act (EPA) was established under the Nixon administration. The Primary responsibility of the EPA was to regulate air and water quality and chemicals used commercially, to develop regulatory criteria for management & disposal of solid & hazardous waste, and to clean up environmental contaminants.
The EPA has several federal statutes that underpin its programs and activities legally; the implementation and enforcement of these federal statues are delegated to the states.
The Occupational Safety and Health (OSH) Act of 1970 was responsible for assuring the safety and healthy working conditions of employees through research, information, education, and training related to the occupational field.
The OSH requires the employer to provide each of their employees with a healthy working environment free of hazards that are known to cause or likely to cause death or serious physical injury.
The employer should eliminate or minimize hazards if hazards exist; this can be achieved by providing employees with adequate safeguards and protective gear.
The Toxic Substances Control Act (TSCA) was passed into law in 1976.
The control actions taken by the EPA on the authority of the TSCA are comprehensive and cover the manufacturing, use, processing, commercial distribution, and disposal of chemical substances.
Some key steps are;
- Manufacturers & processors of chemicals are required to conduct tests on existing and new naturally occurring and synthetic chemicals and to report the test results to determine the effect of potentially dangerous chemicals on living things and the environment.
- To prevents future risks through the pre-manufacture of new chemicals or uses. Manufacturers are required to give notice to the EPA at least 90 days before production or introduction of new chemical products to the country.
- It controls the significant risks already known for existing chemical, or as they are discovered for new chemicals.
- To gather and provide information about chemical substances production, use, and possible adverse effects on human health, the environment, and other things.
The EPA’s regulatory scheme of mandatory testing results in higher compliance costs; when the manufacturer requests for evaluation of specific chemicals, they pay for the associated costs as follows;
If the evaluation is has been put under the TSCA work plan, the manufacturer pays half of the cost, and if the evaluation is not under the TSCA work plan, the manufacturer pays the total cost.
The OSH requires training of the workforce and the provision of safety gear, which are all operational costs incurred by the manufacturer.
Reference;
https://www.epa.gov/enforcement/toxic-substances-control-act-tsca-and-federal-facilities
https://www.osha.gov/laws-regs/oshact/completeoshact