The U.S. Environmental Protection Agency (EPA) has published preliminary lists identifying manufacturers (including importers) that may be subject to fee obligations under 40 CFR 700.45, associated with each EPA-initiated risk evaluation of the following five High-Priority Substances under the Toxic Substances Control Act (TSCA) Section 6 (Refs. 2):
- Acetaldehyde (CASRN 75-07-0)
- Acrylonitrile (CASRN 107-13-1)
- Benzenamine (CASRN 62-53-3)
- Vinyl chloride (CASRN 75-01-4)
- 4,4′-Methylene bis(2-chloroaniline) (CASRN 101-14-4)
Regardless of whether a company is listed, any company that has manufactured or imported a listed chemical in the prior five years must report to EPA via the CDX (Central Data Exchange). All five chemicals are either directly used in the manufacture of paint, coatings, sealants and adhesives and/or used in the manufacture of resins. Companies that do not qualify for an exemption from fee payment must also provide manufacture or import volumes for the three (3) years prior to publication of this list.
EPA is accepting comments on its preliminary lists by March 3, 2025. The agency expects to publish final lists of manufacturers (including importers) subject to fees no later than concurrently with the publication of the final scope documents for risk evaluations of these five High-Priority Substances. Manufacturers (including importers) identified on the final lists will be subject to the applicable fees.
Exemptions
Companies that qualify for an exemption will not be required to pay fees. To qualify for certain exemptions, companies must report to EPA regardless of whether the company is on the preliminary list. EPA recognizes the following exemptions from fee payment:
- Import of articles containing the chemical;
- Manufacture as a non-commercial by-product;
- Manufacture as an impurity;
- Manufacture as a non-isolated intermediate;
- Manufacture as an R&D substance in “small quantities” – NOTE: EPA implemented a new definition related to R&D substances for fees that varies from the general TSCA definition. The TSCA Fee Rule includes a new definition of small quantities solely for research and development specifying that amounts cannot be greater that than “reasonably necessary for such purposes.” EPA includes a record-keeping requirement to establish reasonably necessary amounts; and
- Manufacture for an otherwise non-exempt purpose in amounts of 2,500 lbs or less.
To be eligible for Exemptions 1-5:
- Companies must meet one or more of the exemptions (Exemptions 1-5) as of the certification cut-off of Dec. 18, 2023; and
- Qualify for an exemption during the subsequent five years.
Additionally, any manufacturer or importer qualifying for Exemptions 4-6 must self-identify to EPA via CDX (Central Data Exchange), regardless of whether it is included on the preliminary list. Those manufacturers (including importers) meeting the production volume exemption (Exemption 6 above), must report their production volume for the three calendar years prior to publication of the preliminary list. This enables EPA to better track volumes for the purpose of fee allocation. Also, if all manufacturer and import is at or below the 2,500 lb. threshold, the exemption will no longer apply, triggering a fee payment obligation.
Companies that are on the preliminary list, but that qualify for Exemptions 1-3, can submit an exemption certification on the CDX to be removed from the final list. Otherwise, companies meeting Exemptions 1-3 do not need to submit notification.
Companies that qualify for exemptions must maintain records of production volumes for five years from the date of submitting notification (See 40 CFR 700.43(b)(10)). In addition, companies that qualify for the R&D exemption must maintain manufacturing and other business records for five years, such as production volume, plans of study, information from R&D notebooks, study reports or notice for R&D use. Records would establish amounts necessary for R&D purposes.
Contact ACA’s Riaz Zaman for more information.