Document ID: EPA-HQ-OW-2003-0074-1053
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2004-08-26T04:00Z

1
Date:
13
August
2004
To:
James
Covington,
EPA
From:
Amy
Stillings
and
Maureen
F.
Kaplan,
ERG
Subject:
Organic
Chemicals,
Plastics,
and
Synthetic
Fiber
Focus
Group
3:
Dioxin
Dischargers
 
Industry
Profile
1.
Introduction
EPA
published
its
preliminary
effluent
guidelines
program
plan
for
2004/
2005
in
December
2003
(
USEPA,
2003).
EPA
used
a
four­
factor
approach
to
review
existing
guidelines
as
part
of
the
Agency's
responsibilities
under
Clean
Water
Act
Section
304(
m).
The
first
factor
is
an
evaluation
of
the
hazard
remaining
in
an
industrial
category's
discharge.
EPA
examined
discharges
by
SIC
code
in
the
Toxics
Release
Inventory
(
TRI)
and
Permit
Compliance
System
(
PCS)
databases
and
calculated
toxicity­
weighted
pound­
equivalent
discharge
as
a
measure
of
remaining
hazard.
Based
on
the
remaining
hazard,
EPA
selected
the
Organic
Chemicals,
Plastics,
and
Synthetic
Fibers
(
OCPSF)
industry
for
further
review.
This
memorandum
provides
a
profile
of
this
industry.

Sections
2
through
5
focus
on
the
facilities
 
who
they
are,
who
owns
them,
and
who
works
at
them.
Section
2
describes
the
subset
of
industries
within
the
OCPSF
industry
that
might
be
considered
for
further
investigation.
Section
3
provides
facility
and
company
counts
as
well
as
a
count
of
facilities
belonging
to
small
businesses.
Section
4
presents
general
industry
data
on
employment
and
payroll
expenses.
Section
5
reviews
the
processes
used
by
this
group
of
facilities,
products
produced,
and
end
uses.
Section
6
summarizes
trade
considerations
in
terms
of
imports
and
exports.
Section
7
presents
the
costs
of
production
and
discusses
two
major
cost
inputs
in
detail.
Section
8
examines
the
industry
concentration
in
the
chlor­
alkali
industry
and
what
it
might
imply
for
an
economic
analysis.
Section
9
discusses
trends
in
the
industry.

2.
Industries
Covered
Based
on
the
analysis
of
TRI
and
PCS
data,
as
well
as
information
from
industry
studies,
EPA
identified
a
group
of
facilities
whose
remaining
hazard
was
driven
by
dioxin
in
their
discharges
(
USEPA,
2004).
These
facilities
manufacture
the
following
products:

Chlor­
alkali;

Ethylene
Dichloride
(
EDC)/
Vinyl
Chloride
Monomer
(
VCM);

Polyvinyl
Chloride
(
PVC);
and

Other
Organic
Chemicals
including
chlorinated
solvents.
2
The
manufacturing
facilities
can
be
stand
alone
where
chlorine
is
the
primary
product
and
sold
as
a
commodity;
a
manufacturing
facility
where
chlorine
is
an
intermediate
product
(
e.
g.,
co­
located
operations);
or
a
stand­
alone
manufacturing
facility
where
chlorine
is
an
input
(
e.
g.,
polyvinyl
chloride).

The
majority
of
these
facilities
are
classified
with
the
Standard
Industrial
Code
(
SIC)
of
2812
Alkalies
and
Chlorine
and
North
American
Industry
Classification
System
(
NAICS)
code
of
325181
Alkalies
and
Chlorine
Manufacturing.
Table
1
provides
a
list
of
all
the
SIC
and
corresponding
NAICS
of
the
identified
industries.

Table
1
SIC
and
NAICS
Codes
for
Facilities
in
OCPSF
Focus
Group
3:
Dioxin
Dischargers
SIC
NAICS
NAICS
Description
2612
322121
Paper
Mills
(
Except
Newsprint)

2812
325181
Alkalies
and
Chlorine
Manufacturing
2819
325188
All
Other
Basic
Inorganic
Chemical
Manufacturing
2821
325211
Plastics
Material
and
Resin
Manufacturing
2869
325199
All
Other
Basic
Organic
Chemical
Manufacturing
2870
325300
Agricultural
Chemical
Manufacturing
2899
325199
All
Other
Basic
Organic
Chemical
Manufacturing
3087
325991
Custom
Compounding
of
Purchased
Resin
3.
Facility
and
Company
Counts
EPA
identified
approximately
61
facilities
in
OCPSF
Focus
Group
3:
Dioxin
Dischargers
that
are
still
in
operation
and
still
use
chlorine
in
the
manufacturing
process
(
EPA,
2004).
Attachment
1
lists
the
facilities,
the
company
owning
the
facility,
and
the
corporate
parent
(
where
one
exists).
These
61
facilities
belong
to
26
companies/
corporate
parents.
Six
of
the
companies/
corporate
parents
are
foreign­
owned.

The
Regulatory
Flexibility
Act
(
RFA),
as
amended
by
the
Small
Business
Regulatory
Enforcement
and
Fairness
Act
of
1996,
requires
EPA
to
consider
the
economic
impacts
of
this
regulatory
action
on
small
entities.
Companies
operating
chlorine
manufacturing
plants
can
be
grouped
into
large
or
small
businesses
based
on
the
Small
Business
Administration's
(
SBA)
general
size
standard
definitions
(
SBA,
2002).
Table
2
lists
the
NAICS
codes
and
size
standards
for
the
companies
owning
Focus
Group
3
facilities.
(
There
are
fewer
NAICS
codes
in
Table
2
than
in
Table
1
because
a
company
will
have
one
NAICS
code
while
it
may
operate
several
facilities
each
of
which
has
a
different
NAICS
code.)
3
Table
2
NAICS
Codes
and
Small
Business
Size
Standards
NAICS
Codes
Size
Standard
(
Employees)
322121
325181
325188
325199
325211
325991
750
1,000
1,000
1,000
750
500
Source:
SBA,
2002.

Four
companies
in
Attachment
1
can
be
classified
as
small
businesses:

#
Ashta
Chemicals
Inc.

#
Kuehne
Chemical
Company,
Inc.

#
Pioneer
Companies
#
Veisicol
Chemical
Corporation.

A
total
of
six
facilities
belong
to
four
small
businesses.

4.
Industry
Employment
EPA
does
not
have
facility­
specific
employment
information
for
the
facilities
listed
in
Attachment
1.
An
approximation
of
the
number
of
employees
within
this
industry
segment
can
be
made
by
examining
the
Census
data
collected
for
NAICS
325181
(
Alkalies
and
Chlorine
Manufacturing).
These
data
do
not
include
employment
for
facilities
in
Focus
Group
3
that
are
in
other
NAICS
codes,
such
as
NAICS
322121
(
Paper
Mills,
except
newsprint).
Table
3
lists
data
on
employment
and
payroll
for
NAICS
325181.
The
number
of
employees
in
the
industry
fluctuated
between
4,900
to
4,700
during
1997
and
2001.
The
payroll
per
employee
peaked
in
2000
and
dropped
slightly
in
2001.

Table
3
Employment
and
Payroll
for
NAICS
325181,
1997­
2001
Year
Total
Employees
Payroll
($
1,000)
Payroll
per
Employee
($)

1997
4,859
$
272,779
$
56,139
1998
4,899
$
279,018
$
56,954
1999
4,878
$
277,595
$
56,908
2000
4,891
$
300,311
$
61,401
2001
4,693
$
285,999
$
60,942
Source:
U.
S.
Census,
2003a.
4
5.
Processes
and
Products
This
section
discusses
the
following
manufacturing
processes
that
have
been
identified
as
sources
of
dioxin
in
wastewater:

Chlor­
alkali;

EDC/
VCM;
and

PVC.

The
section
begins
with
the
production
of
chlorine
(
Section
5.1).
Chlorine
is
an
input
to
the
manufacture
of
EDC/
VCM
and
these,
in
turn,
are
inputs
to
the
manufacture
of
PVC
(
Section
5.2).

5.1
Chlor­
Alkali
and
Chlorine
Production
5.1.1
How
Is
It
Produced?

The
chlor­
alkali
process
is
the
most
common
method
for
producing
chlorine,
accounting
for
more
than
95
percent
of
the
world
chlorine
production
(
World
Chlorine
Council,
2002).
Since
chlor­
alkali
accounts
for
the
majority
of
chlorine
production,
and
has
been
identified
as
a
source
of
dioxin,
this
section
will
focus
on
the
chlor­
alkali
process.
The
process
produces
chlorine
gas
and
sodium
hydroxide
(
caustic)
by
passing
an
electric
current
through
a
sodium
chloride
brine
solution.
Although
less
common,
potassium
chloride
may
also
be
used
as
the
feed
stock
to
produce
chlorine
and
potassium
hydroxide.
There
are
three
electrolytic
technologies
used
in
the
chlor­
alkali
process:
mercury
cell,
asbestos
diaphragm
cell,
and
membrane
cell.
The
primary
focus
of
this
industry
profile
is
the
generation
of
dioxin
in
industrial
discharges.
Hence,
it
focuses
on
chlorine
and
its
subsequent
use
in
other
products
rather
than
the
coproduced
sodium
hydroxide.

Concerns
over
mercury
emissions
in
wastewater
has
caused
a
shift
in
the
United
States
to
nonmercury
processes.
The
Chlorine
Institute
reports
an
81
percent
reduction
in
mercury
usage
over
a
1990­
1995
baseline
(
Chlorine
Institute,
2003a),
partly
due
to
the
closure
of
five
mercury
cell
production
facilities.
Table
4
lists
the
chlorine
production
method
utilized
in
the
United
States.
In
2003,
the
chlor­
alkali
industry
used
the
mercury
cell
process
for
9.0
percent
of
the
total
chlorine
produced,
while
67.2
percent
was
made
in
diaphragm
cells,
21.7
percent
in
ion­
exchange
membrane
cells,
and
2.1
percent
other
process
(
Chlorine
Institute,
2003b).
5
Table
4
Percent
of
Total
Chlorine
Production
by
Method
in
the
United
States
Year
Diaphragm
Membrane
Cells
Mercury
Cells
All
Other
1997
75.8
9.5
12.1
2.6
1998
72.8
12.2
12.4
2.6
1999
70.6
15.6
12.0
1.8
2000
69.0
18.5
10.75
1.75
2001
67.45
19.85
10.35
2.35
2002
67.9
20.7
9.4
2.6
2003
67.2
21.7
9.0
2.1
Source:
Chlorine
Institute,
2003b.

5.1.2
How
Much
Is
Produced?

Table
5
summarizes
the
amount
of
chlorine
produced
in
the
United
States
from
1997
to
2002.
The
first
column
are
the
data
as
reported
by
the
Chlorine
Institute
while
the
second
column
presents
data
collected
by
U.
S.
Census.
Production
peaked
in
2000
with
14.1
million
short
tons
and
declined
to
12.7
million
short
tons
in
2002.
Regulations
to
reduce
the
emission
of
chlorinated
products
into
the
environment
explains
part
of
the
decreased
demand
for
chlorine.
In
1998,
EPA
promulgated
effluent
limitations
guidelines
for
bleached
papergrade
kraft
and
papergrade
sulfite
pulp
and
paper
mills
(
USEPA,
1998,
also
known
as
the
Phase
I
cluster
rule
because
EPA
coordinated
air
emission
requirements
[
MACT]
in
the
same
rulemaking).
A
technology
basis
for
the
limitation
was
the
100
percent
substitution
of
chlorine
by
chlorine
dioxide
for
most
of
the
subcategories
and
sectors
and
a
totally
chlorine­
free
basis
for
a
segment
of
the
papergrade
sulfite
subcategory.
The
pulp
and
paper
industry
accounted
for
7
percent
of
chlorine's
demand
in
1995,
but
now
accounts
for
about
1
percent
(
Innovation
Group,
2003a).
Another
contributing
factor
is
the
general
economic
slowdown
that
began
in
2001.
6
Table
5
Chlorine
Production,
1997­
2002
Chlorine
Production
Year
Chlorine
Institute
(
short
tons)
Census
(
short
tons)

1997
13,685,360
12,922,235
1998
13,532,559
12,841,273
1999
13,807,739
13,352,756
2000
14,057,698
13,310,668
2001
12,604,865
12,664,934
2002
12,666,629
12,879,395
Source:
Chlorine
Institute,
2003a;
U.
S.
Census,
2003b;
U.
S.
Census,
2001a;
and
U.
S.
Census,
2000.

5.1.3
Who
Uses
the
Chlorine?

Table
6
summarizes
the
U.
S.
Chlorine
consumption
in
2002.
As
mentioned
earlier,
it
is
used
to
a
lessening
degree
in
the
bleaching
of
paper
pulps.
Chlorine
is
also
used
as
a
disinfectant
in
drinking
water
treatment
systems.
The
primary
use
of
chlorine,
however,
is
an
input
to
the
manufacture
of
other
organic
and
inorganic
chemicals.
Table
7
indicates
that
PVC
production
consumes
slightly
over
one­
third
of
the
entire
U.
S.
production
of
chlorine.

While
chlorine
use
is
declining
in
some
sectors
(
e.
g.,
pulp
and
paper),
the
Chlorine
Institute
predicts
a
long­
term
growth
of
0.5
percent
to
1
percent
per
year,
due
to
the
use
of
chlorine
in
plastics,
electronics,
computers,
water
disinfection,
and
crop
protection
(
Dungan,
2002).
7
Table
6
U.
S.
Chlorine
Consumption,
2002
Percent
of
Total
Production
Organic
Chemicals
77%

PVC
Production
36%

Inorganic
Chemicals
15%

Pulp
and
Paper
1%

Water
Treatment
4%

Miscellaneous
3%

Source:
Innovation
Group,
2003a.

5.2
Ethylene
Dichloride
(
EDC),
Vinyl
Chloride
Monomer
(
VCM),
and
Polyvinyl
Chloride
(
PVC)

5.2.1
How
Is
It
Produced?

As
seen
in
Table
7,
36
percent
of
chlorine
consumption
is
its
use
in
the
production
of
PVC.
Ethylene
dichloride
(
EDC)
is
a
major
PVC
feedstock
and
is
produced
either
by
the
direct
chlorination
of
ethylene
or
oxychlorination,
in
which
ethylene
reacts
with
chlorine
in
hydrogen
chloride.
The
Innovation
group
reports
that
96
percent
of
the
EDC
produced
in
the
United
States
is
consumed
in
the
production
of
vinyl
chloride
monomer
(
VCM)
(
Innovation
Group,
2003a).
In
turn,
98
percent
of
the
VCM
produced
is
consumed
in
the
production
of
PVC
(
Innovation
Group,
2003b).
The
production
is
a
mix
of
vertically
integrated
sites
that
produce
chloring,
EDC,
VCM,
and
PVC,
sites
producing
EDC,
VCM,
and
PCV,
sites
that
produce
only
EDC
and
VCM,
and
sites
that
produce
only
PVC.

5.2.2
What
Is
It
Used
For?

PVC
is
the
second
most
popular
plastic
type
produced.
There
are
two
types
of
PVC
products
that
can
be
produced:
rigid
PVC,
which
are
inflexible
and
hard;
and
flexible
PVC,
which
contains
a
large
portion
of
plasticizer
to
make
them
soft
and
stretchable.
Table
7
lists
the
most
common
PVC
uses.
8
Table
7
Use
of
PVC
Use
Total
PVC
Production
Construction
74%

Piping
and
Tubing
46%

Siding
14%

Windows
and
Doors
6%

Other
Construction
8%

Consumer
Goods
9%

Packaging
Films
and
Containers
6%

Electrical
Fittings
and
Wire
and
Cable
Coatings
5%

Transportation
(
e.
g.,
Automobile
Parts)
2%

Home
Furnishings
(
e.
g.,
Shower
Curtains)
2%

Miscellaneous
2%

Source:
Innovation
Group,
2003c.

6.
Trade
Considerations
 
Chlorine
Imports
and
Exports
As
presented
in
Table
8,
exportation
of
U.
S.
production
of
chlorine
was
less
than
one
percent,
while
importation
of
chlorine
into
the
United
States
between
1997
to
2002
fluctuated
between
3
to
4
percent.
9
Table
8
Importation
and
Exportation
of
Chlorine,
1997­
2002
(
metric
tons)

Year
Production
Imports
Exports
1997
11,722,975
410,731
24,179
1998
11,649,526
374,228
22,456
1999
12,113,620
326,295
21,088
2000
11,912,142
358,015
24,231
2001
11,489,436
358,060
20,964
2002
11,683,992
409,695
18,566
Source:
U.
S.
Census,
2003b;
U.
S.
Census,
2001a;
and
U.
S.
Census,
2000.
Note
U.
S.
Census
changed
measurement
from
short
tons
to
metric
tons
for
this
table.

7.
Production
Costs
7.1
What
Are
The
Major
Cost
Components?

Energy
and
raw
material
costs
represent
the
highest
share
of
chlor­
alkali
production
costs.
As
shown
in
Table
9,
these
costs
account
for
approximately
65
percent
of
total
costs.
We
discuss
the
major
cost
components
in
more
detail
in
the
sections
below.
Labor
is
also
a
significant
cost
in
the
production
of
chlorine,
representing
21
percent
of
total
production
costs.

Table
9
Costs
of
Production
for
Chlor­
Alkali
Industry,
1997
Value
(
103)
Share
of
Total
Costs
Share
of
Value
of
Shipments
Raw
Materials
and
Supplies
$
537,520
33%
22%

Fuels
and
Electricity
$
527,228
32%
21%

Labor
$
339,677
21%
14%

Depreciation
$
145,890
9%
6%

Purchased
Services
$
62,293
4%
3%

Rental
Payments
$
13,862
1%
1%

Total
$
1,626,470
100%
66%

Value
of
Shipments
$
2,465,183
­
100%

Source:
U.
S.
Census,
1999.
10
Figure
1
Natural
Gas
and
Electricity
Prices,
1999­
2003
7.2
Salt
The
production
of
chlorine
by
the
chlor­
alkali
process
begins
with
salt
or
brine
(
World
Chlorine
Council,
2002).
As
a
dominant
input,
salt
prices
were
examined
as
a
proxy
for
the
cost
of
raw
materials
in
chlorine
production.
The
cost
of
salt
from
1999
to
2003
increased
by
$
0.50
per
ton
or
roughly
two
percent
(
USGS,
2004).

7.3
Energy
The
U.
S.
Department
of
Commerce
conducts
an
annual
survey
of
manufacturers
for
NAICS
code
325181,
the
alkalies
and
chlorine
manufacturing
industry.
Based
on
this
available
data,
changes
in
energy
and
labor
costs
can
be
examined.
Chlorine
production
is
energy
intensive,
requiring
the
chlor­
alkali
industry
to
consume
68
trillion
Btu
of
energy
in
1998
(
EIA,
1998).
Therefore,
the
increases
in
fuel
prices
impact
industrial
production
costs.
In
2001,
electricity
and
fuel
costs
were
$
624
million,
which
represents
an
increase
of
approximately
$
100
million
over
industry
costs
in
1997
(
Census,
2003b)
even
though
chlorine
production
decreased.
According
to
Joel
Saltzman,
vice
president
and
general
manager
for
the
industrial
chemicals
division
of
Old
World
Industries,
the
current
rate
of
$
6
to
$
7/
million
Btu
rate
for
natural
gas
contrasts
with
the
$
2.5­$
3/
million
Btu
rates
chlor­
alkali
producers
have
been
used
to
paying,
drastically
cutting
into
operating
margins
(
Graff,
2004).
Figure
1
illustrates
the
change
in
natural
gas
and
electricity
costs
between
1999
and
2003.
11
300
350
400
450
500
550
600
1999
2000
2001
2002
2003
Year
Electricity,
Industrial
Price
($
0.01/
kWh)
Natural
Gas,
Industrial
Price
($
0.01/
ft3)
Source:
EIA,
2004.

8.
Organization
of
the
Chlor­
Alkali
Industry
The
chlor­
alkali
industry
is
a
highly
concentrated
industry
with
only
26
companies
in
1997.
As
shown
in
Table
10,
the
four
largest
companies
represent
over
80
percent
of
the
value
of
shipments,
and
the
eight
largest
companies
over
90
percent.
Herfindahl­
Hirschmann
indices
(
HHI)
over
1,800
are
considered
to
be
highly
concentrated
industries,
indicating
that
it
is
less
competitive.

Table
10
Share
of
Value
of
Shipments
by
Number
of
Companies:
Alkalies
and
Chlorine,
1997
Companies
Total
Value
of
Shipments
(
1,000)
Percentage
Accounted
for
by
Four
Largest
Companies
Percentage
Accounted
for
by
Eight
Largest
Companies
Herfindahl­
Hirschmann
Index
26
$
1,421,798
81.2
93.5
2,558.5
Source:
U.
S.
Census,
2001b.

However,
an
examination
of
Attachment
1
in
conjunction
with
the
Census
data
indicates
that
an
economic
analysis
of
the
Focus
Group
3
facilities
will
need
to
address
several
features
of
the
industry.
While
the
production
of
chlor­
alkali
is
concentrated,
it
is
not
necessarily
specialized.
Most
of
the
larger
12
companies
listed
in
Attachment
1also
manufacture
other
chemicals
and/
or
have
other
business
segments
as
well.
For
this
set
of
companies,
economic
impacts
could
affect
whether
the
company
decides
to
keep
the
facility
open,
but
the
existence
of
the
company
is
unlikely
to
be
endangered.

On
the
other
hand,
the
set
of
facilities
includes
some
small
companies
where
it
appears
that
their
only
operations
are
in
this
sector.
For
these
companies,
economic
impacts
from
increased
pollution
control
costs
might
affect
both
the
facilities
and
the
companies
that
own
them.

ERG
examined
other
sources
of
data
to
evaluate
its
financial
condition,
such
as
Census
(
2004a)
and
Standard
and
Poor's
industry
surveys.
The
Quarterly
Financial
Report
for
the
Manufacturing,
Mining,
and
Trade
Corporations
provides
data
for
NAICS
3251
and
3252
on
a
combined
basis,
that
is
two
4­
digit
industries.
This
level
of
aggregation
makes
the
information
inappropriate
for
examining
what
is
primarily
a
single
industry
defined
in
NAICS
at
a
6­
digit
level.
Standard
and
Poor's
industry
profile
covers
all
basic
chemicals.

9.
Trends
and
Related
Parameters
The
financial
health
of
the
industry
can
be
affected
on
two
major
fronts
 
cost
of
production
and
demand.
We
discuss
each
of
these
in
turn.

9.1
Cost
of
Production
Section
7.3
notes
the
potential
vulnerability
of
this
group
of
facilities
to
increases
in
energy
prices.
The
Chemical
Market
Associates
predicts
that
demand
for
chlorine
will
require
additional
expansion
in
the
chlor­
alkali
industry,
however
the
high
price
of
natural
gas
in
the
United
States
will
likely
mean
the
expansion
will
occur
in
Northeast
Asia
or
the
Middle
East
(
CAI,
2004).
They
also
predict
that
the
average
price
of
the
feedstock
for
PVC,
including
chlorine,
will
increase
by
40
percent
over
its
cost
during
the
1990s
(
Plastic
News,
2004).
Innovation
Group
(
2003c)
also
notes
the
high
cost
of
energy
could
also
place
the
U.
S.
PVC
industry
at
a
disadvantage
in
the
world
market.
Esposito
(
2004)
opines
that
the
profit
margin
for
the
PVC
industry
is
expected
to
increase
in
the
near
term,
though
exports
from
China,
which
could
become
the
world's
largest
PVC
maker
by
2010,
may
cause
less
profitable
players
to
leave
the
market
and
create
the
need
for
greater
consolidation
of
the
U.
S.
PVC
industry.
So,
although
Table
8
indicates
that
imports
are
only
about
4
percent
of
domestic
production
in
2002,
the
industry
might
be
vulnerable
to
lower­
priced
imports
if
energy
costs
remain
high
or
continue
to
rise.

9.2
Demand
Construction
consumes
nearly
three­
quarters
of
PVC
production
(
see
Table
7).
Table
11
presents
the
last
10
years
of
residential
housing
start
data.
Although
housing
can
be
cyclical,
the
demand
for
residential
housing
remained
strong
for
the
last
five
years.
The
Chief
Economist
for
the
National
Association
of
Home
Builders
(
NAHB)
recently
discussed
the
annual
3­
year
revision
of
the
National
Income
and
Product
Accounts,
a
component
of
the
General
Domestic
Product
(
GDP)
(
Seiders,
2004).
Residential
fixed
investment
(
RFI)
was
little
changed
for
2001
and
2002,
but
revised
upwards
for
2003.
For
the
first
quarter
of
2004,
RFI
averaged
10.7
percent
growth
and
the
projection
for
the
second
quarter
is
13
15.4
percent
growth.
Some
of
this
strength
might
be
due
to
locking
in
the
current
low
interest
rates,
that
is,
in
expectation
of
or
in
reaction
to
the
Federal
Reserve
Board's
quarter­
point
increase
in
the
federal
funds
rate
target
on
August
11,
2004.
That
is,
housing
demand
and
therefore
a
major
component
of
PVC
demand
appears
to
remain
strong
in
the
present
and
near
future
economic
conditions.

Table
11
Residential
Housing
Starts
1995­
2004
Year
Single­
Family
Multi­
Family
Total
1995
1,076,000
278,000
1,354,000
1996
1,161,000
316,000
1,477,000
1997
1,134,000
341,000
1,475,000
1998
1,271,000
346,000
1,617,000
1999
1,303,000
339,000
1,642,000
2000
1,231,000
338,000
1,569,000
2001
1,273,000
330,000
1,603,000
2002
1,364,000
347,000
1,711,000
2003
1,445,000
341,000
1,786,000
2004
1,381,000
319,000
1,700,000
Source:
Census,
2004b
and
NAHB,
2004.
14
10.
References
Chlorine
Institute.
2003a.
The
Chlorine
Institute,
Inc.,
Sixth
Annual
Report
to
EPA
for
the
Year
2002,
May
12,
2003,
available
at
www.
epa.
gov/
region5/
air/
mercury/
6thcl2report.
pdf.

Chlorine
Institute.
2003b.
The
Chlorine
Institute,
Inc.,
North
American
Chlor­
Alkali
Industry
Plants
and
Production
Data
Report
­
2002,
June
2003.

CAI.
2004.
Chemical
Market
Associates,
Inc.,
"
CAI
Completes
2004
World
Chlor­
Alkali
Analysis,"
January
8,
2004.

Dungan.
2002.
Dungan,
Arthur,
The
Chlor­
Alkali
Industry
and
Mercury
Cell
Technology,
The
Chlorine
Institute,
May
30,
2002,
available
at
www.
epa.
gov/
ORD/
NRMRL/
Pubs/
600R02007/
600R02007.
pdf.

EIA.
2004.
Energy
Information
Administration,
"
Monthly
Energy
Review,"
U.
S.
Department
of
Energy,
available
at
www.
eia.
doe.
gov/
emeu/
mer/
prices.
html,
accessed
July
28,
2004.

EIA.
.
1998.
Energy
Information
Administration,
"
1998
Energy
Consumption
Manufacturing
Survey,"
U.
S.
Department
of
Energy,
available
at
www.
eia.
doe.
gov/
emeu/
mecs/
mecs98/
byfuel/
elec98.
html,
accessed
July
28,
2004.

Esposito.
2004.
Esposito,
Frank,
"
Aging
Population
Should
Help
PVC,"
Plastic
News,
April
5,
2004,
available
at
www.
plasticsnews.
com/
subscriber/
features2.
phtml?
cat=
2&
id=
1081178508.

Graff.
2004.
Graff,
George,
"
Surging
Natural
Gas
Rates
Will
Stem
Price
Erosion,"
Purchasing
Magazine
Online,
February
5,
2004,
available
at
www.
manufacturing.
net.

Innovation
Group.
2003a.
The
Innovation
Group,
Chemical
Profile:
Chlorine,
June
2003.

Innovation
Group.
2003b.
The
Innovation
Group,
Chemical
Profile:
Ethylene
Dichloride,
November
2003.

Innovation
Group.
2003c.
The
Innovation
Group,
Chemical
Profile:
Polyvinyl
Chloride,
November
2003.

NAHB.
2004.
National
Association
of
Home
Builders.
Housing
Facts,
Figures
and
Trends
2004.
http://
www.
nahb.
org/
fileUpload_
details.
aspx?
contentTypeID=
7&
contentID=
20.
Downloaded
11
August.

Plastic
News.
2004.
"
Feedstocks
Should
Blame
at
CMAI
Conference,"
Plastic
News,
July
16,
2004,
available
at
www.
manufacturing.
net.

Seiders.
2004.
David
F.
Seiders.
Eye
on
the
Economy­
08/
11/
2004.
http://
www.
nahbmonday.
com/
eyeonecon/
textonly/
2004­
08­
11.
html
Downloaded
11
August.

SBA.
2002.
Small
Business
Administration.
Small
Business
Size
Standards:
Size
Standards
by
2002
North
American
Industry
Classification
System.
Federal
Register
67:
56944.
6
September.
15
U.
S.
Census.
2004a.
Census
Bureau.
Quarterly
Financial
Report
for
the
Manufacturing,
Mining,
and
Trade
Corporations.
QFR/
04­
01.
June
2004.
http://
www.
census.
gov/
prod/
2004pubs/
qfr04q1.
pdf
U.
S.
Census.
2004b.
Census
Bureau.
Quarterly
Starts
and
Completions
by
Purpose
and
Design.
http://
www.
census.
gov/
const/
www/
quarterly_
starts_
completions.
pdf.
Downloaded
11
August.

U.
S.
Census
2003a.
U.
S.
Census
Bureau,
Statistics
for
Industry
Groups
and
Industries:
2001,
U.
S.
Department
of
Commerce,
January
2003.

U.
S.
Census
2003b.
U.
S.
Census
Bureau,
Inorganic
Chemicals:
2002,
U.
S.
Department
of
Commerce,
August
2003,
available
at
www.
census.
gov/
cir/
www/
325/
mq325a.
html.

U.
S.
Census
2001a.
U.
S.
Census
Bureau,
Inorganic
Chemicals,
U.
S.
Department
of
Commerce,
July
2001,
available
at
www.
census.
gov/
cir/
www/
325/
mq325a.
html.

U.
S.
Census
2001b.
U.
S.
Census
Bureau,
Concentration
Ratios
in
Manufacturing,
U.
S.
Department
of
Commerce,
January
2001,
available
at
www.
census.
gov/
prod/
ec97/
m31s­
cr.
pdf.

U.
S.
Census
2000.
U.
S.
Census
Bureau,
Inorganic
Chemicals,
U.
S.
Department
of
Commerce,
February
2000,
available
at
www.
census.
gov/
cir/
www/
325/
mq325a.
html.

U.
S.
Census
1999.
U.
S.
Census
Bureau,
1997
Economic
Census­
Manufacturing
Industry
Series:
Alkalies
and
Chlorine
Manufacturing,
August
1999,
available
at
www.
census.
gov/
prod/
ec97/
97m3251e.
pdf.

USEPA.
2004.
U.
S.
Environmental
Protection
Agency.
Organic
Chemicals,
Plastics,
and
Synthetic
Fibers.
Detailed
Review
Chapter
VIII
of
the
Technical
Support
Document
Supporting
the
2004/
2005
Biennial
Plan.
Draft
dated
July.

USEPA.
2003.
U.
S.
Environmental
Protection
Agency.
Preliminary
Effluent
Guidelines
Program
Plan
for
2004/
2005.
Federal
Register
68:
75515­
75531.
31
December.

USEPA.
1998.
U.
S.
Environmental
Protection
Agency.
40
CFR
Parts
63,
261,
and
430.
National
Emissions
Standards
for
Hazardous
Air
Pollutants
for
Source
Category:
Pulp
and
Paper
Production;
Effluent
Limitations
Guidelines,
Pretreatment
Standards,
and
New
source
Performance
Standards:
Pulp,
Paper,
and
Paperboard
Category;
Final
Rule.
Federal
Register
63:
18504­
18751.
15
April.

USGS
2004.
U.
S.
Geological
Survey,
Salt,
U.
S.
Department
of
the
Interior,
January
2004,
available
at
http://
minerals.
er.
usgs.
gov/
minerals/
pubs/
commodity/
salt/
saltmcs04.
pdf.

World
Chlorine
Council
2002.
Chlorine
and
Caustic
Soda:
Chlor­
alkali
manufacturing
processes.
http://
www.
worldchlorine.
com/
publications/
pdf/
mfg_
processes.
pdf
downloaded
11
August
2004.
16
Attachment
1
Facilities
Reporting
Dioxin
Discharges
Company
Facility
Location
Corporate
Parent
Small
Business
Ashta
Ashtabula,
OH
X
Atofina
Petrochemicals
La
Porte,
TX
Atofina
Bayer
Baytown,
TX
Celanese
Acetate
Narrows,
VA
Celanese
AG
Certainteed
Corp.
Westlake,
LA
Colorite
Specialty
Resins
Burlington,
NJ
Tekni­
Plex
Cytec
Industries
Wallingford,
CT
Dover
Chemical
Dover,
OH
ICC
Industries
Dow
Freeport,
TX
Plaquemine,
LA
Texas
City,
TX
DuPont
Niagara
Falls,
NY
Deepwater,
NJ
Formosa
Plastics
Baton
Rouge,
LA
Delaware
City,
DE
Illiopolis,
IL
Point
Comfort,
TX
GE
Plastics
Burkville,
AL
General
Electric
Co.
Mount
Vernon,
IN
Geismar
Vinyls
Geismar,
LA
Westlake
Chemical
Co.
Georgia
Gulf
Aberdeen,
MS
Oklahoma
City,
OK
Plaquemine,
LA
Westlake,
LA
Georgia
Pacific
Green
Bay,
WI
Muskogee,
OK
Rincon,
GA
Keysor
Century
Geismar,
LA
Kuehne
Chemical
Kearny,
NJ
X
Occidental
Chemical
Company
Convent,
LA
Delaware
City,
DE
Ingleside,
TX
Hahnville,
LA
Mobile,
AL
Niagara
Falls,
NY
Pottstown,
PA
Olin
Augusta,
GA
Charleston,
TN
Company
Facility
Location
Corporate
Parent
Small
Business
17
McIntosh,
AL
Niagara
Falls,
NY
OxyVinyls
Deer
Park,
TX
Occidental/
Polyone
LaPorte,
TX
Louisville,
KY
Pasadena,
TX
Pedricktown,
NJ
Oxychem
Muscle
Shoals,
AL
Occidental
Chemical
Castle
Hayne,
NC
Pioneer
Henderson,
NV
Pioneer
Companies
X
St.
Gabriel,
LA
Tacoma,
WA
Polyone
Corp.
Burlington,
NJ
Henry,
IL
PPG
Industries,
Inc.
Lake
Charles,
LA
Natrium,
WV
Sasol
North
America,
Inc.
Westlake,
LA
Sasol
Limited
Baltimore,
MD
Shintech
Inc.
Addis,
LA
Shin­
Etsu
Chemical
(
Japan)
Freeport,
TX
Vulcan
Chemicals
Geismar,
LA
Port
Edwards,
WI
Wichita,
KS
Velsicol
Chemical
Corp
Memphis,
TN
X
Vygen
Ashtabula,
OH
Westlake
Monomers
Calvert
City,
KY
Westlake
Chemical
Co.
Pensacola,
FL
Source:
EPA
2004.