How Will TSCA User Fees Impact Your Company?

Check out our breakdown and analysis below

The Environmental Protection Agency (EPA) recently released its proposed TSCA Fees rule, which may impact companies in the PERFORMANCE and AGRICULTURAL CHEMICALS SECTORS. 

The fees are intended to help EPA defray 25 percent of the costs for the program. This includes costs associated with Section 4 test rules, test orders, and enforceable consent agreements, Section 5 review of new chemical and significant new use applications, and Section 6 risk evaluations. EPA anticipates collecting approximately $20 million in fees each year.  


Below is a breakdown of the proposal and how it might impact SOCMA members:

  • Section 4 Testing of Chemicals: EPA expects these fees will be paid by consortia, assuming that multiple companies manufacture the same chemical. The fee proposed for a test order is $9,800, the fee for a test rule is $29,500, and the fee for an enforceable consent agreement is $22,800.
  • Section 5 Manufacturing & Processing Notices: Fees proposed for each PMN, SNUN and MCAN is $16,000. The fee proposed for each exemption such as LoREX, LVE, and TME is $4,700. EPA proposes to continue the practice of allowing consolidation of PMNs for up to six closely similar chemical substances with similar use, structure, and probable toxicology at the same time and for the same fee as a single chemical substance. EPA also intends to eliminate the "intermediate PMN" fee class.
  • Section 6 Risk Evaluations: EPA is proposing a $1.3 million fee for Agency-initiated risk evaluations and for manufacturer-requested risk evaluations for chemicals on the 2014 Work Plan. Fees would approximately double for manufacturer-requested risk evaluations on non-Work Plan chemicals. While fee payers will self-identify for certain actions, such as making a Section 5 new chemical submission to EPA, for actions like TSCA Section 6 risk evaluations, EPA proposes to use Chemical Data Reporting (CDR) data to identify a preliminary list of companies that will be assessed.
The rule also includes proposed changes to manufacturer size standards.

EPA proposes to increase the current revenue threshold for entities defined as small businesses using the Producer Price Index (PPI) - using a base year of 1988 and inflating to 2015 dollars, resulting in a threshold change from $40 million to approximately $91 million.

EPA is also proposing to change the timeframe over which annual sales values are calculated when estimating business revenue. Instead of using just one year preceding the date of submission, the Agency would average annual sales values over the three years preceding the submission. EPA set the proposed small business fees at an 80 percent reduction.

EPA has set the proposed TSCA fee at an approximately 80 percent reduction for small businesses. The proposed small business fees include:

  • PMNs/SNUNs - $2,800
  • Exemption fees - $940
  • EPA-initiated risk evaluation - $270,000
  • Test orders - $1,950
  • Test rules - $5,900
  • Enforceable consent agreements - $4,600

Advocacy & Guidance

SOCMA's Environment, Health and Safety Committee will be kept apprised of further details, including development of industry comments to EPA as well as opportunities to directly engage in advocacy.  

If you would like to receive regulatory updates like these, please contact Jared Rothstein to request communications from the SOCMA Environment, Health and Safety Committee.
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