The Chemical World This Week

EPA MOVES QUICKLY ON TOXIC SUBSTANCES LAW The Environmental Protection Agency is implementing the toxic substances control law with a vigor that perhaps surpasses the agency's handling of any other laws under its purview. In the words of deputy ad­ministrator John R. Quarles Jr., im­plementation of this new law is a "critical program for EPA, and we must meet the challenge with a first-rate, excellent effort." To this end, Quarles has directed that "people detailed to work on the law must be relieved of some of their other duties so that they will have time to work on their assignment."

Last week, Quarles met for the second time in a month with repre­sentatives from industry, labor, and environmental action groups to bat around ideas on how best to fulfill EPA's mandate under the law.

At the meeting Quarles introduced the new acting assistant administra­tor of the office of toxic substances, Kenneth L. Johnson, a mechanical engineer who has been EPA's deputy regional administrator in Boston. Since the law requires that the office be administered by a Presidential appointee, Johnson is expected to return to his Boston position when the Carter Administration takes over. Quarles explains that he and admin­istrator Russell E. Train chose Johnson because they "wanted to put into that job the best person we can find. Ken has excellent ability to or­ganize and work with people. He will be able to bring more intensity into the program." Created in anticipation of a law, the office of toxic substances has been around for almost four years

Quarles: critical program for EPA

6 C&ENNov. 15, 1976

and has been headed by Glenn Schweitzer, who remains as director under Johnson.

Among the issues explored at the meeting were the functions of two agency task groups recently ap­pointed by Quarles. One group, Quarles says, will identify the major areas and issues to be addressed, es­tablish goals and program priorities, identify the regulations to be written, and recommend the final strategy for implementing the law by March 1977. The other group, he explains, will develop an integrated procedure for managing toxic materials under all EPA's statutes. Currently, Quarles points out, the efforts of the various offices suffer from a lack of coordi-

No recovery yet for Can< Not much relief was expected by Ca­nadian chemical producers in the third quarter. And none came. Earn­ings again were hit hard by a combi­nation of weak markets, especially in fibers and fertilizer, labor unrest, low-priced imports, and Canada's year-old wage and price controls.

Overall, after-tax earnings plunged 76% from third-quarter 1975 and 78% from the record third quarter of 1974 at the four largest publicly reporting Canadian chemical companies— Canadian Industries (CIL), Celanese Canada, Du Pont of Canada, and Union Carbide Canada. Sales of these companies fell 1% from the record third quarter of 1975.

The third-quarter earnings drop was the sixth straight such year-to-year decline for the four companies and by far the worst. The year-to-year dip in the second quarter was 32% (C&EN, Aug. 9, page 5). This means that, from an earnings point of view, Canadian chemicals still are looking for an end to the 1975 recession a full year after the earnings recovery began for chemical makers in the U.S.

The combined profit margin on sales for the four companies sank to 1.5% in the third quarter from 6.2% in 1975 and 7.6% in 1974. This average masks reasonably good profitability at Union Carbide Canada (7.6%), poor profitability at CIL (2.3%), and losses at Celanese Canada ($3.7 mil­lion) and Du Pont of Canada ($1.2 million).

nation and from the lack of a clear definition of priorities.

Also at the meeting, Schweitzer discussed a section of the law that requires EPA to publish a list of all existing chemicals by November 1977. This list will be the basis for determining which chemicals are new and hence are subject to the premar-ket notification requirement of the law. It will be updated continually to contain all chemicals manufactured in or imported into the U.S. within the previous three years. According to Schweitzer, a contract to prepare the initial list will soon be "let to the best resources in the world." By that, he is probably thinking of ACS's Chemical Abstracts Service. D

jian chemicals The red ink was due mainly to

Canada's distressing fibers market. However, Celanese Canada also had some notable labor troubles. A pro­tracted strike at its Drummondville, Que., fibers plant led to a stoppage of carpet production at Sorel, Que. Contrasting positive notes at Cela­nese Canada were continued profit­able chemicals operations and suc­cessful startup of a new polyester staple facility at Millhaven, Ont.

At CIL, a 61% year-to-year earn­ings drop was due in large part to an earnings decline in agricultural chemicals. The company says that fertilizer sales volume held up, but that selling prices dropped sharply. At the same time, the cost of natural gas raw material rose about 40%. Pesticides earnings also fell because of lower selling prices and lower vol­ume resulting from unusually high import levels.

At Carbide Canada, a 35% year-to-year earnings drop was attributed to lower product prices caused by market conditions and anti-inflation restraints, a sharp decline in inven­tory profit, and increased preliminary operating expense at a new polyeth­ylene plant near Sarnia, Ont.

For the fourth quarter, the outlook is scarcely any better. Celanese Can­ada has started production again at Drummondville, but the four com­panies foresee no immediate end to the more fundamental problems squeezing chemical profits. D