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EPA Rule Defines Parent Company for TRI Reporting

Posted on 10/24/2022 by Roger Marks

A Final Rule published on October 21 codifies the definition of “parent company” for the purpose of Toxics Release Inventory (TRI) reporting required under the Emergency Planning and Community Right-to-Know Act (EPCRA).

Sometimes referred to as “SARA 313” or “Form R,” TRI reporting is due by July 1 every year from facilities that manufacture, import, process, or use large volumes of covered chemicals.

As part of that report, facilities must identify their parent company (40 CFR 372.85(b)(8)). Given the variety and complexity of ownership scenarios for different facilities, reporting the parent company was a point of confusion for many sites required to submit TRI reporting.

This Final Rule provides clarity about how to identify a parent company for facilities owned by corporate subsidiaries, facilities with multiple owners or foreign owners, and facilities that are publicly owned. The Rule also more closely aligns the definition of parent company for TRI reporting with other EPA reporting programs like TSCA CDR and Greenhouse Gas reporting under the Clean Air Act (GHGRP).

Beginning with reports due July 1, 2024, the Final Rule also requires reporting of a facility’s highest-level foreign parent company when applicable.

What is a Parent Company for TRI Reporting?

With this Final Rule, EPA is defining “parent company” to mean:

Parent company means "the highest level company (or companies) of the facility’s ownership hierarchy as of December 31 of the year for which data are being reported..."

This addresses the following ownership scenarios:

  • A facility is owned by a single company, which is not owned by another company;

  • A facility is owned by a single company; which is owned by another company;

  • A facility is owned by multiple companies, including companies that are themselves owned by other entities;

  • A facility is owned by a joint venture or cooperative;

  • A facility is owned, at least in part, by a foreign company; and

  • A facility is owned by the Federal Government, or a state, tribal, or municipal government.

[87 FR 63951]

 

The full definition provides additional clarification for facilities under various ownership scenarios. The definition can be viewed on page 63955 of the October 21, 2022 Federal Register. EPA is adding the full definition of parent company to 40 CFR 372.3.


EPA Rule Defines Parent Company for TRI Reporting


Standardized Naming Convention for Parent Company

EPA now requires facilities to identify their parent company using specific naming conventions. The naming conventions are provided in the annual TRI reporting forms and instructions (RFI) and are available for download through the EPA website.

Who Submits TRI Reporting?

TRI reporting is required from facilities with more than 10 employees, in specific industry groups, that manufacture, import, process, or use any covered chemical in a quantity that exceeds the thresholds listed in 40 CFR 372.25 or 372.28. 

More detail: What's New for TRI Reports?

Earlier this year, US EPA proposed to adopt the 2022 North American Industry Classification System (NAICS) Codes for use on reports due July 1, 2023. The public comment period for that proposed rule closed on September 20, 2022.

EPCRA and CERCLA Online Training

TRI reporting is one of many topics addressed in Lion’s unique Superfund and Right-to-Know Act Regulations Online Course. The interactive online course guides environmental professionals through the complex, overlapping EPA chemical reporting requirements under EPCRA and CERCLA/Superfund.

This focused training will help facilities identify and meet applicable chemical inventory reporting, release notification, and emergency planning responsibilities, including Toxics Release Inventory (TRI) reporting.

Tags: chemical reporting, EPCRA, Toxics Release Inventory, TRI reporting

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