P. 1 

# OAR Box 1500 Prepped by Ollie Stewart



### Document

Number: 

# 66 ) ll-C-9 2 Docket Number: 

# A-94-5 2

Printed 8/5/2008 1:51:29 PM

Sheet 66 of 343P. 2

^ t0S ^ | > A r

o UNITE D STATE S ENVIRONMENTA L PROTECTIO N AGENCY | ^j} ^ | RESEARC H TRIANGL E PARK , N C 2771 1 

## X ! > 

## A 8 4 5 2 1 1 

## - 

## C- 7 

## 2 JU N 4 I99 8 ~— - . OFFIC E O F AI R QUALITY PLANNIN G AN O STANDARD S Mr . John Schweitzer/Mr . Stev e McNall y Composite Fabricator s Associatio n 165 5 Nort h For t Mye r Drive , Suit

e 51 0 Arlington , Virgini a2220 9 Dea r John an d Steve : Thi s i s t o follo w u

p o n th e teleconferenc e cal l tha t Melani e Proctor , Charle s Hester , and I had wit h yo u o n Ma

y 26,199 8 to discus s th e cos t element s liste d in you

r Ma y 9 , 199 8 letter . Thi s letter summarize s m

y understandin g of

wha t th e Composit

e Fabricator s Associatio n (CFA) had in min d fo

r th e variou s cost s liste d and review s th e actio n item s discussed . Direc t Cost s Unde r th e direc t costs , th e CF

A indicate d tha

t th e testin g o

f corrosio n resin s would b e a cos t incurre d b y th e resi n manufacturer ; th e corrosio n testin g woul d b e done onc e pe r resin . The CF A estimate d tha

t n o mor e tha n 4 0 percent

ofth e composit

e manufacturer s usin g vapo r suppressant s receiv e th e resi n alread y suppressed . Thus , a

t leas t 6 0 percen t o f suppressan

t user s woul d b e testin g a

t th e facility . However , i f

w e determin e (i n th e developmen t ofth e tes t method ) tha

t th e vapor suppressan

t tes t need s to b e don e by th e composite s manufacturing facility , the n 10

0 percent ofth e facilitie s wil l need t o d o testing . Indirec t Cost s Th e CF A consider s th e highe

r labor cost s du e to processin g problem s a s aone-tim e cos t and , potentially , acontinuou s cost . If , fo r example , th e ne w resin systemresult s in agreate r roll

ou t time (du e t o aviscosit

y change) , thi s coul d increas e labor cos t o n acontinuou s basis . Th

e one-time cos t

i s associate d wit

h the learnin g curve . The cos t o f rewor k an d scra p du e t o processin g problem s i s aone-tim e cos t associate d wit

h th e learning curve . Becaus e acomplianc e date wil l b e provide d tha

t wil l allo w facilitie s time t o comply wit h th e rule , th e CF

A agreed tha

t th e cos t pertainin g to los t

busines s i s no longe

r a n issue . Th

e cos t fo r trainin g worker s t

o handl e th e ne w equipment

o r material s would b e aone-tim e cost . Th e cos t o f testin g new applicatio n equipment , suppressants , or resin s involve s afacilit

y tryin g ou t th e variou s choice s availabl e t o choos e th e on e tha t work s bes t

fo r thei r situation . Thi s i s aone-time cost . The cos t of additiona l material s woul d b e acontinua l cos t tha t would result

if 

## I Interne t Addres s (URL ) • http://www.epa.go v Recycled/Recyclabl e • Printe d wit h Vegetabl e Oi l Base d Ink s o n Recycle d Pape r (Minimu m 25 % Postconsumer)P. 3

afacilit y neede d to increas e th e amoun t o f resi n use d o

r us e amor e expensiv e glas s o

r fille r to attai n th e necessar

y produc t qualit y usin g anew resi n system . Th e cos t o f rework , returns , an

d scra p du e to produc t

failur e i s aone-time cos t

tha t woul d result

i f aproduc t failed . According t o th e CFA , wheneve

r ther e i s achemistr

y chang e t o th e resin , the qualit y ofth e produc t

coul d b e negativel y effected . I f

thi s occurred , i t

coul d resul t

i n asmall cos t

(on e part ) o r

larg e cos t ( a truc k loa d or al l part s mad

e unde r th e warranty) . The CF

A consider s th e cos t

o f los t busines s a s acos t o f losin g acustome

r du e t o problem s wit

h produc t quality . Thi s i s aone-time cost . I t wa s agree d tha

t th e laborator

y test s o f ne w resin s o

r suppressant s wa s alread

y covere d unde r th e direc t cost s an d othe

r testin g costs . The cos t

o f making sampl e product s i s considere d acos t to tes t th e sampl e products , sinc e th e cos t t o mak e th e sample product s woul d alread y b e covere d b y th e cost s previously discussed . Thi s i s aone-tim e cost . Th e cos t o f laboratory , engineering , an d third-part

y activitie s i s relate d t o th e U L testin g discusse d subsequently . An exampl e o f

product s tha

t woul d requir

e U L testin g M

e fue l storag e tanks ; i t

wa s assume d thi s woul d b e aone-time cos t

tha t woul d b e neede d t o b e done wheneve r th e resi n systemwa s changed . However , th e CF A wil l spea

k to storag e tan

k manufacturers to ge

t abetter understandin g o f

U L testin g an

d it s cost . The CF

A agree d tha

t fabricator s wer

e alread y require d t o participate i n ASTM , ASME , and other bodie s tha

t gover n produc t requirements , s o thi s woul d no t b e acos t ofth e standard . Th e EP

A explaine d tha

t the potentia

l fo r busines s closur

e i s evaluate d in th e economi c impact analysi s ofth e rul e and tha t thi s i s no t acos t ofth e complianc e ofth e rule . Actio n Item s A s discusse d i n th e meeting , w e reques t tha t th e CF A provid e supportin g informatio n neede d t o allo w u s t o conside

r incorporatin g th e cost s suggested i n th e Ma y 9 , 199 8 letter . On

e are awher e furthe r informatio n i s neede d i s th e specific s of whic h product s and/or

unde r which particula r situation s wil l facilitie s incur th e produc t

failur e an d processin g problem s costs . Als o needed ar e specifi c parameter s require d t o cos t th e element s discussed in thi s letter tha t ar e associate d wit

h changin g t

o lowe r HA P content resins , no n spra

y resi n applicatip n techn o logy , an d vapor suppressants . Th e CF

A als o agree d t

o investigat

e cos t saving s involved . W

e understan d tha

t th e CF A wil l provide writte n supportin g documentation . Separat e documentatio n woul d b e needed fo r eac h ofth e abov e changes . Further , th e CF

A wil l provide detail s o n U L testin g an

d associate d costs . W

e reques t thi s informatio n b e provide d by Jun e 30 , 1998 . A s soo n a s we receiv e thi s information , w e will analyz e ho w th e abov e cost s will b e incorporate d in th e cos t analysis .



# 1P. 4

>

I f

you hav e an

y question s o

n th e abov e summar

y or actio n items , pleas e cal l m e a t (919)5412383 . Sincerely , t I i!A^r 

# ^IcJib/* Madelein e Stru

m Environmenta

l Enginee r Coating s and Consume

r Product s Grou

p



# 3