More Than Pallets

On December 16, 2009 Representative Pingree (D-Maine) introduced H.R. 4394 which will provide for a phased ban on decabrominated diphenylether and mixtures or products containing that chemical, and for other purposes.  The title of this legislation alone would be enough to believe that the provider of the only plastic rental pallet company iGPS is on the ropes.  Reading the bill, I believe it will not affect iGPS as competitors would hope. 

The current status of H.R. 4394 referred to committee.   The committees that are reviewing the bill is House Energy and Commerce, House Foreign Affairs, and the House Ways and Means.  These are the sections of the bill that are relevant to plastic pallet industry.

SEC. 2. BAN ON DECABDE, DECABDE MIXTURES, AND DECABDE PRODUCTS.

Beginning January 1, 2013, it shall be unlawful for any entity to produce for distribution in commerce, distribute in commerce, import, or export–

(1) decaBDE;

(2) decaBDE mixtures; or

(3) decaBDE products.

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This section would provide the scope of the ban, which at this point looks absolute.  This section outlaws companies to produce a product for distribution in commerce and not allow a company to distribute in commerce for either import or export.  What would this mean for imported products from China and other countries that might use decaBDE fire retardants in product that use plastics, especially in the electronics industry. 

SEC. 3. PHASING IN OF BAN.

(a) Report of DecaBDE Activity During 2009- Not later than 90 days after the date of enactment of this Act, each entity who, during 2009, engaged in any activity that will be prohibited under paragraph (1) or (2) of section 2 shall report to the Administrator of the Environmental Protection Agency (hereinafter in this Act referred to as the ‘Administrator’), in such form and detail as the Administrator requires in order to carry out this Act, the following:

(1) Each such activity engaged in with regard to decaBDE, including the amount of decaBDE used in that activity.

(2) Each such activity engaged in with regard to decaBDE mixtures, including the amount of such mixtures used in that activity.

(b) Establishment of Quotas for Each Entity- Not later than 15 days after receiving a report from an entity under subsection (a), the Administrator shall establish an annual quota for that entity for each activity that entity reports, in accordance with the following:

(1) For activities with regard to decaBDE, each such annual quota shall be equal to the amount of decaBDE reported to have been used in that activity.

(2) For activities with regard to decaBDE mixtures, each such annual quota shall be equal to the amount of such mixtures reported to have been used in that activity.

(c) Only Entities With Quotas Able To Engage in Activities- Not later than 90 days after the date of enactment of this Act, it shall be unlawful for any entity to engage in an activity that will be prohibited under paragraph (1) or (2) of section 2 if the Administrator has not established an annual quota for that entity for that activity.

(d) Annual Quotas- During each year shown on the left column of the table below, it shall be unlawful for any entity to engage in an activity with regard to an amount of decaBDE or decaBDE mixture that exceeds the percentage, shown on the right column of the table below, of the annual quota established for that entity for that activity:

2010 – 100 Percent

2011 – 66 Percent

2012 – 33 Percent

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All business entities that use decaBDE or decaBDE mixture will be required to report to the Environmental Protection Agency (EPA) which will be referred to as the Administrator.  As of 2010 all products that use 100 percent of a decaBDE mixture will be banned.  In 2011 the percentage of mixture allowed will lower to 66 percent and 33 percent by the year 2012.  How will this affect the iGPS  plastic pallet.  According to a news release by the National Wooden Pallet and Container Association, iGPS purchases their plastic pallets from Schoeller Arca System which uses 3.4 pounds of decaBDE.  According to the iGPS website (www.igps.net) their plastic pallet weighs 48.5 pounds, which represents a decaBDE mixture of 7.01 percent well below the annual quota requirements outlined in Section 3(d). 

Read my full analysis at www.glgroup.com