EPA proposes TSCA user fees

Abstract
We all knew it was coming, and the proposal has finally arrived. On February 8,2018, the US Environmental Protection Agency (EPA) announced that EPA Administrator Scott Pruitt signed a proposed rule regarding user fees for the administration of the Toxic Substances Control Act (TSCA). As amended by the Frank Lautenberg Chemical Safety for the 21st Century Act TSCA provides the EPA the authority to levy fees on certain chemical manufacturers, including importers and processors, to "provide a sustainable source of funding to defray resources that are available for implementation of new responsibilities under the amended law" (EPA, 2018a, p. 1). The EPA states in its press release that these fees: would go toward developing risk evaluations for existing chemicals; collecting and reviewing toxicity and exposure data and other information; reviewing Confidential Business Information (CBI); and, making determinations in a timely and transparent manner with respect to the safety of new chemicals before they enter the marketplace, (EPA, 2018a, p. 1)

This column summarizes the proposal and explains why it is significant.

Under the amendments to Toxic Substances Control Act (TSCA), the US Environmental Protection Agency (EPA) has authority to require payment from manufacturers and processors who:

• Are required to submit information by test rule, test order, or enforceable consent agreement (ECA) (TSCA Section 4);
• Submit notification of or information related to intent to manufacture a new chemical or significant new use of a chemical (TSCA Section 5); or
• Manufacture or process a chemical substance that is subject to a risk evaluation, including a risk evaluation conducted at the request of a manufacturer (TSCA Section 6(b)).

Beginning in fiscal year (FY) 2019, the EPA is required to adjust fees, as necessary, every 3 years to reflect inflation and ensure that fees are sufficient to collect 25% of the costs to the EPA in administering TSCA Sections 4, 5, 6, and 14. Before establishing new fees or revising any existing fees, the EPA is required to consult with manufacturers and processors, or their representatives.

The proposed rule provides a description of proposed TSCA fees and fee categories for FYs 2019, 2020, and 2021, and explains the methodology by which the proposed TSCA user fees were determined and would be determined for subsequent FYs. In proposing the new TSCA user fees, the EPA also proposes amending long-standing user fee regulations governing the review of premanufacture notices (PMNs), exemption applications and notices, and significant new use notices (SNUN). After implementation of final TSCA user fees regulations, certain manufacturers and processors would be required to pay a prescribed fee for each notice, exemption application, and data set submitted or chemical substance subject to a risk evaluation for the EPA to recover certain costs associated with carrying out certain work underTSCA. The EPA requests comment on the proposed userfees and the methodology used for determining the amounts. The EPA is also proposing and taking comment on standards for determining which persons qualify as small business concerns, and thus, would be subject to lower fee payments.