California sued over pay-to-play fee forcing businesses to fund green research

A Texas-based spray foam insulation company is suing California for forcing the business to pay money to fund “green research” — part of an allegedly unconstitutional regulation imposed on the company in order to do business in the state.Quadrant Performance Materials accused the California Department of Toxic Substances Control of funneling the fee, amounting to two cents per pound, into research that they say could eventually destroy their business.“The State requires producers of spray polyurethane foam (spray foam) to first fund private researchaimed at replacing the products they sell, effectively funding the termination of their business — research those companies cannot direct, cannot veto and will never benefit from,” the lawsuit stated.

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By clicking above you agree to the Terms of Use and Privacy Policy.Never miss a story Last month, the department began requiring spray foam manufacturers to pay two cents for every pound sold in the state.

Spray foam insulation is a plastic-based material sprayed as a liquid that rapidly expands and hardens into a thick, airtight sealing layer.It is often used in construction.The state agency, which is in charge of mitigating the harms of toxic chemicals, had identified unreacted methylene diphenyl diisocyanates — found in spray foam — as a chemical of concern.

The department labeled it a “respiratory sensitizer that can lead to asthma and allergic sensitization.”However, alternative spray foams without the chemicals are not “functionally acceptable” or technically feasible, Quadrant said in a report to the state agency.As a result,  the agency created a Green Chemistry and Engineering Innovation Fund that would help research and develop a safer alternative.It ordered Quadrant to pay two cents per pound of spray into the fund, the lawsuit sai...