EPA Proposes $20 Million in TSCA Fees for Chemical Companies

On February 7, US EPA released a long-awaited TSCA draft rulemaking to implement user fees for chemical manufacturers to control the costs of EPA’s work to evaluate and regulate chemicals in the US.

Under the proposal, persons who submit data for EPA’s review under TSCA Sections 4, 5, or 6 would be required to pay a fee. Businesses impacted by the fees will likely include:

• Chemical Manufacturers
• Chemical, Petroleum, and Merchant Warehouses
• Petroleum and coal Products

TSCA Section 26(b), as amended by the Frank R. Lautenberg Chemical Safety for the 21^st Century Act, or LCSA for short, authorizes EPA to collect fees to defray the costs related to the collection, processing, review, and protection of chemical manufacturing and inventory data.

Previously, EPA was limited to fees of $100 for small businesses and $2,500 for other chemical manufacturers and processors. The LCSA lifted this fee cap, enabling EPA to collect fees designed to cover 25% of the cost of the Agency’s TSCA work. (Pictured: EPA Administrator Scott Pruitt) 

EPA estimates that annualized fees collected from industry will equal more than $20 million, with about $3.2 million coming from small businesses. Of the different data submissions covered by the fees, EPA estimates that TSCA Section 5 fees will make up 43 percent of the total and TSCA Section 6 fees will make up 56 percent.

The public comment period will officially open once EPA’s posts the proposed rule to the Federal Register. Watch this space for an update on publication and how to submit comments to EPA.

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