K.  Regulatory Flexibility Analysis

Comment: Two respondents stated that the rule will have significant impact on small entities.

DoD Response: As mentioned above, since the rule was modified such that plating and anodizing are not covered by the rule, capital costs for conversions are de minimis. For the most part, compliance with the rule will only require switching to non-chromate paints and primers. As noted and described more thoroughly in section II.C. of this preamble, based on conversations with industry and small businesses, DoD believes that the rule will have a positive impact on industry and small business profits and at worst, be revenue neutral over time. A number of small businesses have developed non-chromate processes but have been hindered in their ability to market these processes to DoD by existing DoD specifications. The rule will also help make businesses more competitive in the world market. Non-hexavalent chromium processes should be less costly over the lifecycle of the process due to the use of less hazardous materials and related control and disposal costs.

Comment: Four respondents stated that the rule will increase lifecycle cost due to less corrosion protection.

DoD Response: The rule does not necessarily require the use of substitutes for hexavalent chromium if lifecycle costs are higher or if performance requirements for corrosion control are not met. As described in Section II.E of this preamble, the DoD policy of April 8, 2009, contains factors for considering substitutes. These factors include lifecycle costs.