Legislation Affecting the Pressure Washer Industry Regulations and Compliance Introduction Regulations can be divided into several categories: • Safety Certification (OSHA) • Environmental (Emissions and Water) • Mandatory vs Voluntary • Federal Law vs Local Regulation • Consumer Protection Act • Laws (OSHA, Clean Air and Water Act) • Codes • Trade Agreements – – – – Buy America 49 CFR 661 Buy-American Act 41 U.S.C 10 Conflict Minerals Reporting ST-3 (Steel Products Act 73 P.S. 1881) Regulations and Compliance Understanding Regulations Impacting the Pressure Washer Industry • • • • • • • • • • • • • • Agenda Introduction Why Product Certification? Product Safety Certification / Market Access Safety Standards: IEC/UL/CSA Environmental Protection International Shipments Gasoline and Diesel Engines Trailer Registration National Codes Warranty Laws Requirements for Selling Products to Government Agencies Buy America vs Buy American, ST-3 procurement Act Conclusion Certification worldwide Mandatory Recommended Regions w/ increasing mandatory certification Regulations and Compliance Why Product Safety Certification? Several countries around the world make it mandatory I will only address North America: – Under OSHA (CCOHS) regulation 1910.399 and 1910.303(a) states, that all electrical and other types of equipment used in the workplace must be “listed” by an “approved” testing agency. Failure to comply can result in penalties and removal of all equipment that does not display the certification mark from a NRTL. Regulation 1910.303(a)(2) states that listed and labeled equipment shall be installed in accordance with the listing or labeling (outdoor vs Indoor) – Worker Protection: Manufacturers that submit their product for certification will be inspected by a NRTL (UL, CSA, ETL) to an industry safety standard. These standards contain safety devices, testing, practices and warnings to protect the operator from any foreseen danger. – Liability Protection: In this day of costly litigation, one of our best legal protections against an accident on the job is purchasing only equipment that has been certified by an NRTL to rigorous pressure washer industry safety standards. Regulations and Compliance Product Safety Certification – – – – – A NRTL provides Certification Services for safety to nationally recognized standards. They must meet the requirements of 29 CFR 1910.7 to be recognized by OSHA of the U.S. Government. Product certification is a multi-step process: • Product submittal. Samples of a product are submitted for testing against a widely recognized standard appropriate to the product and locale where it is to be marketed or installed. • Agreement. Once it is ascertained that the product complies with the requirements of the standard, the manufacturer sign an agreement that initiates a series of site inspections.. • Factory Assessment. The initial Factory Assessment (IFA), determines if the manufacturing site is capable of consistently producing products identical to the evaluated samples. Upon satisfactory completion of the testing and assessment, an authorization to mark the product is issued and the product is eligible to be “listed” in the NRTL Directory of Listed Products. The product is now eligible to bear a certification mark, which contains the manufactures number and standard against which it was evaluated. Regulations and Compliance Safety Standards Used in Our Undustry • • • • • • • • • • • • • • • • UL 1776 – Pressure Washer Standard will be harmonized to UL 60335-2-79 UL 73 - Electric motor operated appliance standard UL 795 - Commercial-Industrial Gas Heating Equipment CGA 3.2-1992 – Commercial Gas Fired Equipment UL 1017 – Vacuum Cleaners, Blowers and Household Floor Finishing Machines UL 1450 – Motor operated Air Compressors, vacuum pumps and painting equipment CSA B140.11 – Pressure Washer Safety Standard CSA 22.3 - Electric motor operated appliance standard CGA 2.17-1976 – Gas-Fired Appliances UL 296 – Safety of Oil Burners CSA B140.2.1 – Atomizing type oil burners UL 979 – Standard for Water Treatment Appliances CSA C22.2 #68 – Motor operated Appliances IEC 60335-2-79 – Pressure Washer Standard for international equipment NSF C-2 – Sanitation Foundation Standard for cleaning equipment Consumer Product Safety Act of 2008 (CPSIA) Sec. 14(a)(1) Regulations and Compliance Environmental Protection Clean Air Act of 1990 • Federal law requires all 50 states to comply with this law • Each state must have a program to reduce air pollution • California is the most restrictive and enforce the Rules or Regulations • These regulations are different from state to state and jurisdiction to jurisdiction. • The California program is the standard most states or counties implement. • They regulate CO and NOx at 3% oxygen emission • This is a permit program and recently we received an exemption status by permit under Rule amendment 222 removing us from Rule 1147. Regulations and Compliance Environmental Protection Clean Air Act requirements for pressure washers • CETA was instrumental in taking the lead lobbying with the SCAQMD to adopt a category for pressure washer equipment working to exempt pressure washers under rule 219 accomplished under amendment rule 222 for permitting, removing pressure washers from restrictive rule 1147. SCAQMD Compliance Advisory Notice dated May 14th, 2014 states: “Rule 1147 no longer applies to pressure washers because this equipment is now included in Rule 219 –Equipment Not Requiring a Written Permit Pursuant to Regulation ll, and Rule 222” • Presently under this new regulation propane and natural gas machines are exempt but oil fired models require owners to purchase a permit to operate in California. Requires an hour meter to measure time of burner operation. • Future innovations that can reduce NOx levels below 9ppm can eliminate the need to purchase operating permits every year. The reason CETA lobbied to be removed from rule 1147. Efficiency Regulations and Compliance Existing Efficiencies & Regulations: CO in flue gas <400ppm Federal Level: 78% Annual Fuel Utilization Efficiency (AFUE Standard) Smoke test #3 on the smoke spot The EUnited Cleaning Machines Association requires on a voluntary bases any machine greater then 50KW (170,800 Btu’s) can not have a thermal loss of greater then 9% as measured using the carbon dioxide content or oxygen measurement in the exhaust. Efficiency Regulations and Compliance Environmental Protection Department of Energy (DOE) Efficiency Requirements • The DOE has adopted an efficiency standard for process heaters and equipment that heat water for cleaning. • The 2015 efficiency standard DOE 10 CFR 430 regulation will be 81% for Natural Gas/Propane and 83% for oil fired burners. No mention of pressure washer equipment but could be used to regulate our industry because of the broad definition. • CETA is working on development of an efficiency standard for the pressure washer industry for the purpose of submittal to the DOE preventing enforcement of an efficiency standard not related to our industry. • CETA is also working with Intertek Testing Services to use our efficiency standard allowing equipment to be labeled with the Green Leaf or a verified logo and hopefully in the future establishing a category for pressure washers and the use of the Energy Star labels providing tax credit incentives. Future Efficiency Regulations and Compliance WASHINGTON, DC - The U.S. Department of Energy (DOE) recently announced it has increased the energy efficiency standards for process heaters and boilers. The Department amended these standards, which become effective in 2015. The minimum AFUE rating requirements vary based on the type of fuel used and the heating medium. The minimum AFUE rating for a gas-fired hot water process heaters and boilers is 82%; the minimum AFUE rating for an oil-fired hot water process heater and boiler is 84%. In addition, gas-fired process heaters and boilers are not permitted to have a constant burning pilot. In 2020 the ENERG is going to make mandatory EU-wide 9% thermal energy loss in exhaust gas on machines over 170,800 btu’s Regulations and Compliance Environmental Protection • • Is your pressure washer Emission Compliant? SORE (small off road Equipment), Evaporative emission requirements • All gasoline engine powered pressure washers must now meet strict rules and regulations in the United States and in California for emissions. They must also be approved for emission compliance to be sold anywhere in the US or California. The USEPA (Environmental Protection Agency) issues the Certificate of Conformity for compliance for 49 states (all states except California). California issues Executive Orders (EO’s) for all machines that will be sold into California or used in California. It is important to verify that the pressure washer that you are considering purchasing in California has an EO issued from CARB (California Air Resources Board). If the pressure washer is only EPA approved for 49 state sales then it can’t be bought, sold or used in California. You would be in violation and fined. If you are not in California then make sure the pressure washer system is EPA approved with a Certificate of Conformity to ensure that you are selling complying equipment. Regulations and Compliance Environmental Protection This topic is very complex and will involve several slides. The following slides will discuss EPA regulations impacting our industry: • Small off-road Equipment (SORE) : – – – – – – The purpose of these regulations is to: (a) Set performance standards for gasoline-fueled, spark-ignited small off-road equipment utilizing engines rated at equal to or less than 19 Kilowatts (26 HP) (b) In order to give manufacturers maximum flexibility, compliance programs were available beginning the 2006 model year. What pressure washer products require compliance? • All gasoline powered products. Does a manufacture need to register their equipment if the engine has an integrated fuel tank and is labeled for compliance? • No Does a manufacturer need to register if the engine is certified and the fuel tank is provided by the pressure washer manufacturer? • Yes – Enforced by compliance officers most commonly from complaints and whistle blowing, penalties $37,5000 for each occurrence Regulations and Compliance Gasoline and Diesel Engines • • Regulation ICES-002 – Use engines that comply with SAE J551 and CISPR 12. This is part of the EMC testing or C-Tick labeling. Engines should have the C-Tick label with the supplier code number. – Compliance to regulation CAN/CSA-CISPR 12-10 similar to SAE J551 for combustion engines Tier l – lV engines – Implementation of diesel and gasoline engines emission requirements. 2015 is the final date for compliance. – Engines must be labeled as compliant. Some engine manufacturers have made the decision to comply with the 49 state requirement and not sell engines into California Federal EPA Registration Regulations and Compliance Environmental Protection Prop 65, Canada RoHS, CA RoHS and REACH (Chemical Manufactures) • Part of the Safe drinking water & Toxic enforcement act of 1986 • There is a list of 750 chemicals (OEHHA) known to be hazardous toxins • Manufactures are required to identify these toxins on products and place applicable warning labels • This requires working with suppliers to gather this information. • 60 day notice is given in advance of alleged violation to keep it out of the media • Average settlement is $186,000. A group of attorneys have formed to inspect consumer products mainly to find violations. • Example: – Look at warning labels on various products warning the operator to wash their hands after touching PVC coated power cords on equipment if they contain methylene Chloride? Do you warn against chemicals known by the State of California to cause cancer and birth defects or other reproductive harm? • Spark arrestors must be available for all equipment using engines on National Forest land Consumer Product Safety Improvement Act 2008 • • • • • • “Every manufacturer” of a product that is subject to a consumer product safety rule or similar rule, ban, standard or regulation and which is “imported for consumption or warehousing” or “ distributed in commerce” Products certified to industry safety standards meet the requirements of the CPSC Law Manufacturers (including importers), distributors and retailers must report to the CPSC immediately if they learn that one of their products fails to comply with an applicable consumer product safety rule or “any other rule, regulation, standard, or ban” under the CPSA or any other Act enforced by the Commission No company likes to recall one of its products, but when a safety problem makes a product recall necessary to prevent injuries and save lives, it benefits everyone to move quickly and effectively. We need to follow the CPSIA RECALL HANDBOOK A Guide for Manufacturers, Importers, Distributors and Retailers on Reporting Under Sections 15 and 37 of the Consumer Product Safety Act and Section 102 of the Child Safety Protection Act and Preparing for, Initiating, and Implementing Product Safety Recalls Regulations and Compliance International Shipments • Canada and the USA are the only countries in the world that have not completely adopted the IEC safety standards • Self certify to an IEC safety standard and national directives • Construct a technical construction file • Comply with the IEC and national directives • Have equipment tested to comply with EMC directives and place the C-Tick and CE label as required on equipment • Issue a declaration of conformity for each shipment Regulations and Compliance Trailer Registration • All trailers rated above 3500lbs must be registered • Submit and register as a manufacturer of trailers • Registered with the Federal Department of Transportation and the National Highway Traffic Safety Administration (NHTSA) • You will receive an identification number • Issue a vehicle identification number (VIN) in compliance with the regulations • Record the DOT number on each tire installed on our trailer for possible tire recall notifications • Issue a certificate of origin with each trailer Regulations and Compliance National Codes • Standards like national electric codes (NEC/CEC) are included in the safety standards • When designing equipment used indoors understand the requirements of the National Fire Protection Association (NFPA) – Example: Size of propane bottles and requirement for distance from product during operation. Recommendations in operators manuals for installation should comply with the NFPA and building codes • The food and health industry have requirements that equipment must comply with the National Sanitation Foundation standards (NSF). Regulations and Compliance Warranty Laws • The Magnuson-Moss Warranty Act is the federal law that governs consumer product warranties. Passed by Congress in 1975, the Act requires manufacturers and sellers of consumer products to provide consumers with detailed information about warranty coverage. In addition, it affects both the rights of consumers and the obligations of warrantors under written warranties. • To understand the Act, it is useful to be aware of Congress' intentions in passing it. First, Congress wanted to ensure that consumers could get complete information about warranty terms and conditions. By providing consumers with a way of learning what warranty coverage is offered on a product before they buy, the Act gives consumers a way to know what to expect if something goes wrong, and thus helps to increase customer satisfaction. Regulations and Compliance Selling Products to Government Agencies • • • • • Understanding Buy America The Buy America Act requirements apply to iron and steel products and their coatings that are purchased for the federal-aid highway construction program (highways, bridges, transit systems and terminals). Under Buy America, federal-aid funds may not be obligated for a project unless iron and steel products used in such projects are manufactured in the United States. An exception is that foreign-source materials, valued at the greater of $2,500 or 0.1 per cent of the original contract value, are permitted. Value is based on the value “as delivered to the project site,” and is the total for the project for all foreign-source materials. Under an alternate-bid procedure, foreign-source materials may be used if the total project bid using foreign-source materials is 25 per cent less than the lowest total bid using domestic materials. The Buy America Act defines manufactured as any process that modifies the chemical content, physical shape or size, or final finish of a product. Manufacturing begins with the initial melting and mixing, and continues through the bending and coating stages (coating includes epoxy coating, galvanizing, painting, and any other coating that protects or enhances the value of the coated steel or iron product/component). Understanding Buy American The Buy American Act is a separate and distinct program from Buy America and has completely different rules. The Buy American Act, which covers specified products, requires the U.S. government to purchase domestic goods and services unless the head of the agency involved in the procurement has determined that the prices of the domestic suppliers are “unreasonable” or that the purchase would be “inconsistent with the public interest.” The act also contains exceptions in terms of trade agreements. Trade agreements are, for example, the NAFTA agreement or WTO agreements recognized by the U.S. Regulations and Compliance Conclusion These are the major items which we deal with monthly in our industry. There are several other items such as Massachusetts and other state and local regulations but if we comply with the above we can be approved by almost all jurisdictions. There are regulations such as CAN/CGA 2.17 requiring information labeling on products for high altitudes. We have new regulations being introduced and old regulations being amended. We have new standards like CAN/CSA-B128.1-06/B128.2-06 (R2011) Design and Installation of Non-Potable Water Systems/Maintenance and Field Testing of Non-Potable Water Systems which could affect water treatment products. These new standards can also open doors for new product offerings giving consumers options to comply with these new regulations. This presentation did not discuss the Clean Water Act of 1987(Public Law 100-4). This law could impact products like aqueous parts washers and water reclamation products.