I did think it was an over-simplification. I got it from here:
http://www.luthiertalk.com/forums/showthread.php?t=239
", and they pay a monthly fee to do so because the EPA regs state that the current maximum allowed nitro component is only 5%."
I'd like to see documentation on this.
Generally the EPA is concerned with VOC levels, Volatile Organic Compounds. Volatile as in they evaporate, the stuff gets into the atmosphere. Nitro or acrylic components in finishes are solids.
The reason BOTH nitro and acrylic lacquers are banned in California and other places for industrial use is because the solvent component necessary for application exceeds legally mandated VOC levels.
The automotive acrylic lacquer I use is not legal in California...even though the company that manufactures it is based there.
AFAIK, you don't pay fees to be allowed to break laws, they're called fines.
I'm perfectly willing to be proven wrong but until I see documentation this goes in the bullshit file right next to 'Finishes that allow wood to breathe'.