Article

U.S. EPA Publishes Final TSCA Fees Rule

Posted on: October 24, 2018

TSCA FeesBy John J. Kowalski, CHMM

On October 17, 2018, the U.S. Environmental Protection Agency (also known as the EPA or ‘the Agency’) published a final fees rule under Section 26(b) of the Toxic Substances Control Act (TSCA). The purpose of the final rule is to establish and collect fees from certain manufacturers (including importers) and processors to defray some of the EPA’s costs related to activities under TSCA Sections 4, 5, 6, and 14. The rule was originally proposed on February 26, 2018. You can read more about this here.

Who does the TSCA Fees Rule apply to?

The final rule applies to manufacturers who are required to submit information under TSCA Section 4, manufacturers and processors who submit certain notices and exemption applications under TSCA Section 5, and manufacturers of chemicals that are subject to risk evaluation under TSCA Section 6(b).

Except for manufacturer-requested risk evaluations, the Agency is finalizing the fee amounts as described in the proposed rule. The EPA is finalizing an actual cost approach for manufacturer-requested risk evaluations, whereby the requesting manufacturer (or requesting consortia of manufacturers) will pay either 50% or 100% of the actual costs, depending on whether the chemical is included in the TSCA Work Plan.

The final fee amounts are summarized in the table below.

 TSCA SECTION  FEE CATEGORY  FEE AMOUNT
 4  Test order  $9,800
 4  Test rule  $29,500
 4  Enforceable consent agreement  $22,800
 5  PMN and consolidated PMN, SNUN, MCAN   and consolidated MCAN  $16,000
 5  LoREX, LVE, TME, Tier II exemption, TERA,   Film Articles  $4,700
 6  EPA-initiated risk evaluation  $1,350,000
 6  Manufacturer-requested risk evaluation on a   chemical included in the TSCA Work Plan  Initial payment of   $1.25M, with final   invoice to recover   50% of actual costs
 6  Manufacturer-requested risk evaluation on a   chemical not included in the TSCA Work Plan  Initial payment of   $2.5M, with final   invoice to recover   100% of actual costs

Reductions for Small Businesses

The Agency is also finalizing reduced fee amounts for small businesses, consistent with the proposed rule.  The final fee amounts for small businesses are summarized in the table below:

 TSCA SECTION  FEE CATEGORY  FEE AMOUNT
 4  Test order  $1,950
 4  Test rule  $5,900
 4  Enforceable consent agreement  $4,600
 5  PMN and consolidated PMN, SNUN, MCAN   and consolidated MCAN  $2,800
 5  LoREX, LVE, TME, Tier II exemption, TERA,   Film Articles  $940
 6  EPA-initiated risk evaluation  $270,000
 6  Manufacturer-requested risk evaluation on a   chemical included in the TSCA Work Plan  Initial payment of   $1.25M, with final   invoice to recover   50% of actual costs
 6  Manufacturer-requested risk evaluation on a   chemical not included in the TSCA Work Plan  Initial payment of   $2.5, with final   invoice to recover   100% of actual costs

“Small Business Concern”

In addition, the EPA is finalizing a revision to the size standard used to identify businesses that can qualify as a ‘‘small business concern’’ under TSCA for the purposes of fee collection. Under the TSCA fees rule, ‘‘small business concern’’ means a manufacturer or processor who meets the revised size standard based upon its North American Industry Classification System (NAICS) code and number of employees, as set forth at 40 CFR §700.43.

The final rule, which took effect on October 18, 2018, applies to all submissions received by the Agency starting October 1, 2018. It generally requires upfront payment of fees. However, the EPA will send invoices to affected companies for submissions received between October 1, 2018 and October 18, 2018.

The TSCA fees rule also allows joint submissions under Section 5 and the formation of, and payment by, consortia for submissions underSections 4 and 6. But, it will only allow electronic payment.

Finally, the Agency has revised the TSCA reporting applications within Central Data Exchange (CDX) to facilitate upfront fee payments, as required under the final rule. They will be hosting a webinar covering the use of CDX for upfront TSCA fee payments on Wednesday, November 7th from 1:00 pm to 2:30 pm EST.  You can register for this webinar here.

Next Steps

  • Review the final rule;
  • Consider participating in the webinar on November 7th; and,
  • Continue to watch this space for information regarding new developments under TSCA.

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Useful Information

Fees for the Administration of the Toxic Substances Control Act [PDF]

[Article] U.S. EPA Proposes New TSCA User Fees

EPA webinar covering the use of CDX for upfront TSCA fee payments

Keywords

United States, EPA, Toxic Substances Control Act, TSCA Fees, Environmental Protection Agency, Final Rule, Central Data Exchange, CDX, NAICS Code, Small Business Concern