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1 and related substances, and (2) a standard means for stor

2 ing and for obtaining rapid access to information respecting

3 such materials. ·

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"STATE REGULATIONS

SEC. 221. Nothing in this title shall affect the authority

6 of any State or local government to restrict the distribution 7 or use of a chemical substance or impose requirements of 8: tests and' test results for a chemical substance except that 9(1) if the Administrator has published proposed regulations 10 under section 205 with respect to limiting particular uses of 11 a particular substance a State or local government may not 12 thereafter impose restrictions on such uses of such substance 13 other than a total ban on such use or uses; (2) if the Ad14 ministrator has published proposed regulations under section 15. 203 For › section 204 (b) with respect to test standards for 16 particular substances or uses, a State or local government 17 may not impose test protocols or results to be achieved 18 therefrom with respect to such substances and uses for the 19 purposes similar to this title; (3) if the Administrator has 20 published proposed regulations under section 205 with 21 respect to limiting particular uses of a particular substance 22 or if the Administrator has published proposed regulations 23 under section 203 or 'section 204 (b) with respect to tests 24 for particular substances or uses, a State is not preempted 25 from enforcing any restrictions or test protocols and results

71-179 O 72 pt. 1 5

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1 to be achieved therefrom existing at the time any such 2 proposed regulation was published; (4) if the Administratof 3 issues a final regulation under section 205 restricting the 4 use of such substances the State may not enforce any restric 5 tion of its own after the effective date of such regulation, 6 other than a total ban on such use or uses; and (5) if the 7 Administrator issues a final regulation under section 203 8 or section 204 (b), the State may not enforce any test 9 requirements of its own after the effective date of such 10 regulations.

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"REGULATIONS AND PROCEDURE

"SEC. 222. (a) The Administrator is authorized to

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13 issue such regulations as he may deem appropriate to carry 14 out the purposes of this title and to amend them at any time, (b) The Administrator shall publish any regulations

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16 proposed under this title in the Federal Register at least sixty 17 days prior to the time, when such regulations shall become 18 final. If any person adversely affected by a proposed regula-. 19 tion files objections and requests a public hearing within 20 forty-five days of the date of publication of the proposed, 21 regulation, the Administrator shall grant such request. If 22 a public hearing is held, final regulations shall not be pro-.. 23 mulgated by the Administrator until after the conclusion of 24 such hearing. All public hearings authorized by this subsec-; 25 tion shall consist of the oral and written presentation of data,

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1 views, or arguments pursuant to section 553 of title 5 of the

2 United States Code.

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"AUTHORIZATION FOR APPROPRIATIONS

"SEC. 223. There is hereby authorized to be appro5 priated to the Environmental Protection Agency such sums 6 as may be necessary for the purposes and administration of 7 this Act."

8 SEC. 3. (a) Chapter 36 of the Internal Revenue Code 9 of 1954 (relating to certain other excise taxes) is amended by adding at the end thereof the following new subchapter: "Subchapter F-Chemical Substances

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"Sec. 4496. Imposition of tax.
"Sec. 4497. Special rule.

12 "SEC. 4496. IMPOSITION OF TAX.

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"(a) CHEMICAL SUBSTANCES.-There is hereby im

14 posed on the sale by the manufacturer of any chemical sub15 stance manufactured or produced under a certification issued 16 under section 204 of the Federal Hazardous Substances Act 17 a tax equal to percent of the price for which such sub

18 stance is sold.

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"(b) SUSPENSION OF TAX.-The tax imposed by this 20 section on any manufacturer shall be suspended whenever 21 the amount collected from that manufacturer equals the 22 amount approved for payment to him under section 204 (c) 23 of the Federal Hazardous Substances Act. Such suspension

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shall remain in effect until additional testing with respect to

2 that manufacturer is required pursuant to section 203 or

3 section 204 (b) of such Act, but shall become effective again 4 whenever, after such testing, the manufacturer again satis5 fies the requirement of the preceding sentence.

6 "SEC. 4497. SPECIAL RULE.

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"Under regulations prescribed by the Secretary or his

8 delegate, the provisions of subchapters F and G of chapter 9 32 and the provisions of subtitle F relating to the taxes im10 posed by chapter 32 shall apply to the taxes imposed by 11 section 4496."

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(b) The table of subchapters for such chapter 36 is 13 amended by adding at the end thereof the following new

14 item:

"SUBCHAPTER F. Chemical substances."

GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE,
Washington, D.C., October 5, 1971.

Hon. WARREN G. MAGNUSON,
Chairman, Committee on Commerce,

U.S. Senate,

Washington, D.C.

DEAR MR. CHAIRMAN: Reference is made to your request for the views of the Department of Defense on Amendment No. 338 to S. 1478, 92d Congress, a bill "To amend the Federal Hazardous Substances Act, as amended, and for other purposes."

The purpose of the Amendment is to provide for the regulation of toxic substances that may affect the safety of man or the quality of the environment. Under the Amendment, the Administrator of the Environmental Protection Agency would be required to issue regulations, within one year after enactment of the Amendment, that specify test protocols for various classes and uses of chemical substances. Manufacturers of new chemical substances would be required to obtain a certification from the Administrator that the new substances meet the appropriate testing requirements. The Administrator would also be required to issue regulations that specify existing chemical substances that would be subject to test procedures. A manufacturer of a chemical substance manufactured or produced under a certification issued under the proposal would be required to pay a tax on his product until the Administrator had, by paying to the manufacturer annual amounts equal to the tax receipts, paid the manufacturer for the cost of testing the chemical substance.

The proposal would also give the Administrator the authority to restrict or prohibit the distribution or use of chemical substances and to seize substances that are manufactured, used or distributed in violation of the Federal Hazardous Substances Act. A Toxic Substances Board would be established in the Environmental Protection Agency to advise the Administrator on policies and procedures.

The Department of Defense is extremely concerned about the quality of the environment and recognizes that the unregulated use of toxic substances presents a great potential danger to that environment. In view of the large quantity of chemical substances that the Department of Defense procures, we would expect to benefit substantially from reasonable and effective regulation of the manufacturing of these substances.

As to the merits of the Amendment, the Department of Defense defers to the Council on Environmental Quality and the Administrator of the Environmental Protection Agency.

The Office of Management and Budget advises that, from the standpoint of the Administration's program, there would be no objection to the presentation of this report for the consideration of the Committee.

Sincerely,

J. FRED BUZHARDT.

Senator SPONG. Let me welcome our first witness, the Honorable Russell E. Train, Chairman of the Council on Environmental Quality. Mr. Train, it is a pleasure to have you here this morning.

STATEMENT OF HON. RUSSELL TRAIN, CHAIRMAN, COUNCIL ON ENVIRONMENTAL QUALITY; ACCOMPANIED BY ALVIN L. ALM, STAFF DIRECTOR, PROGRAM DEVELOPMENT

Mr. TRAIN. Thank you, Mr. Chairman.

I appreciate the opportunity to appear before you to testify in support of S. 1478, the Toxic Substances Control Act of 1971. Since the committee will have an opportunity tomorrow to hear testimony from Mr. Robert Fri of the Environmental Protection Agency, which will have administrative responsibility with respect to S. 1478, I will confine myself to the basic concepts of this bill and the need for such legislation.

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