Z-404: The Kohler Engines Material Restriction Standard Mike Major michael.major@kohler.com Introduction Z-404 specifies that components must be free of regulated substances in excess of REACH and RoHS concentration limits as well as free of ozone depleting chemicals. Z-404 communicates the requirement to the supplier on the drawing and for quoting purposes. However, Kohler Engines will verify Supplier’s acknowledgement and compliance with a recently purchased software package, Actio. Actio allows supplier to declare compliance status and answer several simple questions by following the internet link provided in an Actio generated email. 5/28/2014 2 Regulation Applicability REACH and RoHS concentration limits apply to homogenous materials (any single substance that could theoretically be separated mechanically). For example: a wiring harness may comprise a plastic connector, solder, plastic sheath, wire, wire coating etc. Even the wire coating must comply with the concentration limits. 5/28/2014 3 Regulation Applicability REACH already applies to all identified consumer goods imported to Europe. RoHS currently allows an exemption for engine powered equipment, but Kohler Engines is driving compliance to meet customer specific requirements and to anticipate future regulatory development. RoHS will formally apply to engine powered equipment beginning July 2019. 5/28/2014 4 REACH - Registration, Evaluation, Authorization and Restriction of Chemicals REACH restricts substances which are carcinogenic, mutagenic, toxic for reproduction or bioaccumulative. REACH is organized in articles, annexes, appendices and the SVHC list. Z-404 specifies compliance with Annex XVII concentration limits and absence of SVHC candidates. Overview: http://echa.europa.eu/web/guest/regulations/reach/und erstanding-reach Legislation: http://eur-lex.europa.eu/legalcontent/EN/TXT/PDF/?uri=CELEX:02006R190720130701&qid=1395826642786 5/28/2014 5 REACH ANNEX XVII Annex XVII identifies currently regulated substances and restriction conditions/applications. Conditions of Restriction may include concentration limits 5/28/2014 6 SVHC Candidate List Substances of Very High Concern List or SVHC list announces proposed substances for future, formal inclusion in Annex XVII. In many cases, SVHCs candidates are subsequently regulated. – Industry and consumers may comment and approve or oppose (if no commercially viable alternative exists) the nomination. If approved, SVHC candidates are added to Annex XVII. – http://echa.europa.eu/web/guest/candidate-listtable 5/28/2014 7 REACH Effect REACH imposes registration and reduction requirements for substance and article importers to the EU. OEMs are potentially subject to registration and Kohler Engines should not contribute to their totals. Therefore, Z-404 specifies that the REACH concentration limits apply. 5/28/2014 8 RoHS – Restriction of Hazardous Substances RoHS limits concentrations of 6 substances: 1. Lead (0.1 %) 2. Mercury (0.1 %) 3. Cadmium (0.01 %) 4. Hexavalent chromium (0.1 %) 5. Polybrominated biphenyls (PBB) (0.1 %) 6. Polybrominated diphenyl ethers (PBDE) (0.1 %) Legislation: http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L: 2011:174:0088:0110:EN:PDF 5/28/2014 9 RoHS Exemptions/Exclusions Some components and products may contain regulated substances in excess of the standard concentration limits. Notable: Lead as an alloying element in aluminum containing up to 0,4 % lead by weight; lead solders. Please see Annex III. 5/28/2014 10 RoHS through Z-404 Z-404 specifies RoHS compliance although Spark ignition engines and equipment are currently exempt. However, the RoHS “Recast,” commonly referred to as RoHS II, applies to spark ignition engines and equipment made available on the European market effective July 2019. This includes pre-July 2019 manufactured engines imported for sale to Europe after July 2019. 5/28/2014 11 RoHS II RoHS II offers a professional use exemption, but there is no professional use definition. RoHS II directly applies to all Kohler engines other than Command and Trident. OEMs demand compliance based on internal policies and Kohler Engines is working towards complete product line compliance. The EU commission may expand RoHS II to encompass several priority substances including: • Hexabromocyclododecane (HBCDD), • Bis (2Aethylhexyl) phthalate (DEHP), • Butyl benzyl phthalate (BBP), • Dibutylphthalate (DBP). Z-404 does not require Supplier to investigate or declare their presence, but Supplier should be aware and actively minimize their inclusion. 5/28/2014 12 Kohler Engines Declarations Kohler Engines will track, analyze and rely on Supplier’s Actio declaration to make downstream declarations to customers and government agencies. 5/28/2014 13 Actio Process - Login • Supplier will receive an email with a link to the Actio login site. • In the first login instance, select Forgot pwd. Actio will then prompt Supplier to create a password. 5/28/2014 14 Actio Process - Verification Once logged in, Supplier will confirm/verify company information 5/28/2014 15 Actio Process – Supplier Portal Supplier presented with list of components requiring declaration. 5/28/2014 16 Actio Supplier Questionnaire 5/28/2014 17 Full Material Disclosure Option The Actio questionnaire allows (but does not require) Supplier to provide Full Material Declaration ("FMD“) In an FMD, supplier would identify all substances and materials included in the component. Future inquiries may therefore be avoided if unidentified substances comprise less than the regulated thresholds. FMD is NOT required to comply with Z404 but may simplify future reporting. 5/28/2014 18 Actio Declaration Processing Kohler will receive Supplier’s Actio declaration and automatically assign compliance status. Supplier can view existing declarations through his portal. Supplier should maintain current contact information and may assign additional users through Actio. 5/28/2014 19