EPA Narrows Scope of TSCA Fees Program

Key Summary

• EPA proposed updates narrow TSCA fees by exempting several categories of companies from obligations.
• Proposed rule improves fairness with production volume based fee allocation and inclusion of export only manufacturers.
• EPA increases flexibility by allowing more time for companies to form fee sharing consortia.
• Updates respond to inequities uncovered after the 2018 TSCA Fees Rule implementation.
• IPC plans to review the proposal, gather industry feedback, and submit comments during the 45 day window.
• Final decisions will fall to the incoming administration despite this pre publication release.

Today, the U.S. Environmental Protection Agency (EPA) released proposed updates to the Toxic Substances Control Act (TSCA) Fees Rule. IPC is still reviewing the proposed updates, but it appears to meaningfully address the issues that IPC has raised with the policymakers at the EPA and the White House Office of Management and Budget.

Under TSCA, EPA is required to collect fees from chemical manufacturers and processors to support risk evaluations of high-priority chemical substances. The EPA finalized the original rule for fees collection in October 2018, but implementation, beginning in 2020, highlighted the rule’s inequities and inefficiencies.

IPC and peer organizations have been communicating with EPA and other federal policymakers to underscore the need for commonsense reforms to the fees rule. IPC is pleased the proposed updates appear to make important and positive changes to the original rule, including:

• Narrowing the scope of the rule by exempting the following: importers of articles containing a chemical substance, companies that produce a chemical as a byproduct or manufacture or import as an impurity, companies that produce a chemical in de minimus amounts, companies that use chemicals solely for research and development purposes, and companies that manufacture a chemical that is produced as a non-isolated intermediate from fees.
• Ensuring fees are fairly and appropriately shared across companies by proposing a production-volume based fee allocation and including export-only manufacturers for EPA-initiated risk evaluations.
• Increasing flexibility for companies by extending the amount of time to form consortium to share in fee payments.

IPC applauds the EPA for the open engagement with stakeholders to hear our concerns and consider making appropriate changes.

IPC will review the proposed rule once it is published in the Federal Register, solicit feedback from electronics manufacturers, and submit comments regarding the proposed updates within the 45-day comment period.

IPC cautions the industry that the rule released today is a pre-publication of the proposed rule. The task of finalizing the rule will be in the hands of the incoming Biden administration. IPC will be working aggressively to ensure that the incoming EPA team understands the industry’s perspective and our support for the changes outlined in the proposed rule.  

Please contact me if you have questions about this subject.