{"id":10209,"date":"2021-04-07T08:00:09","date_gmt":"2021-04-07T13:00:09","guid":{"rendered":"http:\/\/blogs.edf.org\/health\/?p=10209"},"modified":"2025-12-03T14:11:27","modified_gmt":"2025-12-03T19:11:27","slug":"at-all-costs-failings-of-trump-epas-proposed-tsca-fee-rule","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/health\/2021\/04\/07\/at-all-costs-failings-of-trump-epas-proposed-tsca-fee-rule\/","title":{"rendered":"At all costs: Failings of Trump EPA\u2019s proposed TSCA fee rule"},"content":{"rendered":"<p><strong><em><a href=\"http:\/\/www.edf.org\/people\/lindsay-mccormick\">Lindsay McCormick<\/a>, Program Manager <\/em><\/strong><em><strong>and<\/strong> <\/em><strong><em><a href=\"https:\/\/nam11.safelinks.protection.outlook.com\/?url=http%3A%2F%2Fenvironmentaldefense.org%2Fpage.cfm%3FtagID%3D908&amp;data=04%7C01%7Crdenison%40edf.org%7C2f3b414ccf7d4e5b5c3308d88b38e9c1%7Cfe4574edbcfd4bf0bde843713c3f434f%7C0%7C0%7C637412423848247204%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&amp;sdata=j%2FoxZelSPqwHSCLbqub22AgG5FGmKD7qZQq7UWjWJWA%3D&amp;reserved=0\">Richard Denison, Ph.D.<\/a>, Lead Senior Scientist<\/em><\/strong><\/p>\n<p>When Congress reformed the Toxic Substances Control Act (TSCA) in 2016, it authorized EPA to require companies to pay fees to help defray the agency\u2019s costs of administering this extensive new law.\u00a0 EPA finalized the first \u201cfee rule\u201d in 2018 to establish the payment framework.\u00a0 Under TSCA, EPA is to adjust the fees every three years both to account for inflation and to ensure it is recouping the authorized portion of agency costs to implement the law.<\/p>\n<p>Therefore, developing an accurate estimate of the agency\u2019s costs to implement TSCA is critical.\u00a0 Not only does this provide the baseline by which to establish industry fees (as EPA is to set the fees so as to recoup 25% of its program costs), but it should serve as a north star to identify the true resource needs to lawfully implement TSCA.<\/p>\n<p>Recent reports by the <a href=\"https:\/\/www.gao.gov\/assets\/gao-21-119sp.pdf\">Government Accountability Office<\/a> and <a href=\"https:\/\/www.epa.gov\/sites\/production\/files\/2020-08\/documents\/_epaoig_20200817-20-p-0247.pdf\">EPA\u2019s Office of Inspector General<\/a> found that EPA\u2019s ability to assess and manage chemicals regressed over recent years due to lack of workforce or workload planning to ensure the agency can carry out its duties. \u00a0Both reports recognize the greatly increased scope of work under amended TSCA, and EPA\u2019s failure to translate that into additional staff and resource needs.\u00a0 Establishing a robust, accurate budget for administering TSCA is the first step to rectifying this problem.<\/p>\n<p>Despite the alarm bells rung by these two watchdogs, the Trump EPA\u2019s proposed <a href=\"https:\/\/www.epa.gov\/tsca-fees\/proposed-revisions-tsca-fees-rule\">revised fee rule<\/a> seems to have lost sight of Congress\u2019 purpose in expanding EPA\u2019s fee authority.\u00a0 The proposed rule invokes a new purpose entirely divorced from TSCA: to reduce asserted burdens on industry \u2013 without regard to the impacts that will have on EPA\u2019s ability to implement the law or on ensuring health and environmental protection from chemical exposures.\u00a0 As a result, EPA underestimated its costs and proposed fees such that, if finalized, would push an undue portion of its costs onto the taxpayer.<\/p>\n<p>Below we summarize the major concerns about the fee rule proposal that we detailed in <a href=\"https:\/\/www.regulations.gov\/comment\/EPA-HQ-OPPT-2020-0493-0061\">our comments<\/a> submitted to the agency late last month.<!--more--><\/p>\n<p><strong>Summary of Major Concerns <\/strong><\/p>\n<p><em>Underestimated costs and insufficient fees<\/em><\/p>\n<p>EPA significantly underestimated the baseline costs to the agency of carrying out TSCA as it is required to do under the law.\u00a0 For example:<\/p>\n<ul>\n<li>TSCA Section 4: EPA has significantly underestimated the amount of testing EPA needs to conduct robust risk evaluations and instead still intends to over-rely on voluntary information submissions.<\/li>\n<li>TSCA Section 5: EPA estimates its costs for new chemicals based on an illegal review approach limited to intended uses and fails to adequately address costs of developing consent orders and Significant New Use Rules.<\/li>\n<li>TSCA Section 6: EPA fails to include <em>any<\/em> explicit estimate or cost breakdown for several core section 6 activities and needs, including: identifying potential candidates for prioritization and prioritization itself, risk management, and scientific assistance provided by EPA\u2019s Office of Research and Development.<\/li>\n<li>TSCA Section 8: EPA has ignored the costs associated with developing reporting rules under this section, which are vital to inform section 4 testing actions and section 6 prioritization, risk evaluation, and risk management activities.<\/li>\n<li>TSCA Section 14: EPA\u2019s estimate for activities under this section has dropped by more than half relative to that in its Final 2018 Feel Rule \u2013 a clear indication that EPA continues to grossly underestimate the true costs of carrying out its duties under TSCA to review confidential business information.<\/li>\n<\/ul>\n<p>As a result of these underestimates and omissions, the Trump EPA proposed to set the fees below the levels required by TSCA section\u00a026(b)(4)(B), and would not recoup the portion of its costs allowed under TSCA.<\/p>\n<p>Critically, while Congress set an initial annual fee cap at $25 million for the first fee rule, revised fee rules are not subject to this cap.\u00a0 This is because Congress understood that costs to administer TSCA would appropriately and necessarily increase over time.\u00a0 In revising the fee rule, EPA is required to adjust fees so they recoup 25% of program costs \u2013 meaning that if EPA\u2019s costs for administering TSCA exceed $100 million, then the fees it recoups should exceed the initial cap of $25 million.<\/p>\n<p><em>Widespread exemptions and lenient fee schedule <\/em><\/p>\n<p>The Trump EPA proposed to exempt many manufacturers from TSCA\u2019s obligation that companies making a chemical substance undergoing a risk evaluation under section 6(b) be subject to fees.\u00a0 The activities EPA proposed to exempt are: 1) importing the chemical in an article; 2) producing the chemical as a byproduct; 3) producing or importing the chemical as an impurity; 4) producing, importing or processing chemicals for research and development activities; 5) manufacturing less than 2,500 lbs. annually of the chemical; and 6) manufacturing a chemical as a non-isolated intermediate. As we <a href=\"https:\/\/blogs.edf.org\/health\/2020\/08\/31\/what-the-heck-is-going-on-with-epas-risk-evaluation-fees-under-tsca\/\">blogged<\/a> about previously, these exemptions originated from industry demands starting in January 2020 that landed on the receptive ears of Trump EPA political appointees.<\/p>\n<p>Yet neither TSCA nor EPA\u2019s Final 2018 Fee Rule provides any basis for such exemptions.\u00a0 In fact, all of these activities constitute forms of manufacturing under TSCA and are required to be included in the scope of a risk evaluation.\u00a0 Hence, EPA will necessarily incur costs in evaluating those activities.<\/p>\n<p>EPA also proposed to delay and spread out fee payments for risk evaluations over nearly the entire period during which they are to be conducted.\u00a0 Yet it failed to acknowledge, let alone assess, the impact of this fee schedule on EPA\u2019s ability to conduct timely and robust risk evaluations. EPA\u2019s ability to hire staff and engage contractors to do the necessary work requires stability in its budget and advanced planning, both of which will be adversely affected if EPA does not receive timely fees.<\/p>\n<p><em>First 10 chemicals and risk management fee<\/em><\/p>\n<p>In its Final 2018 Fee Rule, EPA declined to collect fees for the first 10 risk evaluations.\u00a0 But EPA continues to incur costs arising from these evaluations, as it identified unreasonable risks and must now develop 10 comprehensive <a href=\"https:\/\/www.epa.gov\/assessing-and-managing-chemicals-under-tsca\/risk-management-existing-chemicals-under-tsca\">risk management rules<\/a> for the first time.\u00a0 This is a major undertaking that is largely ignored in the fee rule proposal. \u00a0Not only did EPA fail to estimate its costs for undertaking risk management, it again passed up the opportunity to charge a fee for makers of chemicals found to present unreasonable risks for which risk management is mandated under TSCA.<\/p>\n<p><em>Future fee rules <\/em><\/p>\n<p>By law, EPA is to revise the fee rule every three years.\u00a0 However, the current and proposed rules include a provision that could significantly hinder public participation in future iterations.\u00a0 Specifically, this provision states that if EPA proposes to revise the rule only to adjust fees for inflation, it will circumvent the public comment process.\u00a0 This provision unacceptably precludes the public from weighing in with arguments for why fees should be adjusted beyond just inflation.<\/p>\n<p>&nbsp;<\/p>\n<p>For more details, see <a href=\"https:\/\/www.regulations.gov\/comment\/EPA-HQ-OPPT-2020-0493-0061\">EDF\u2019s full comments<\/a>.\u00a0 We urge the Biden EPA to revisit this proposal and finalize an update to the fee rule that reflects its true costs for implementing TSCA.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Lindsay McCormick, Program Manager and Richard Denison, Ph.D., Lead Senior Scientist When Congress reformed the Toxic Substances Control Act (TSCA) in 2016, it authorized EPA to require companies to pay fees to help defray the agency\u2019s costs of administering this extensive new law.\u00a0 EPA finalized the first \u201cfee rule\u201d in 2018 to establish the payment &#8230;<\/p>\n","protected":false},"author":50533,"featured_media":10217,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[68,44,56096,114108],"tags":[68,91723,56107],"coauthors":[114097],"class_list":["post-10209","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-epa","category-policy","category-omboira","category-tsca","tag-epa","tag-fees","tag-lautenberg-act"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/blogs.edf.org\/health\/wp-json\/wp\/v2\/posts\/10209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.edf.org\/health\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.edf.org\/health\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.edf.org\/health\/wp-json\/wp\/v2\/users\/50533"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.edf.org\/health\/wp-json\/wp\/v2\/comments?post=10209"}],"version-history":[{"count":1,"href":"https:\/\/blogs.edf.org\/health\/wp-json\/wp\/v2\/posts\/10209\/revisions"}],"predecessor-version":[{"id":13389,"href":"https:\/\/blogs.edf.org\/health\/wp-json\/wp\/v2\/posts\/10209\/revisions\/13389"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blogs.edf.org\/health\/wp-json\/wp\/v2\/media\/10217"}],"wp:attachment":[{"href":"https:\/\/blogs.edf.org\/health\/wp-json\/wp\/v2\/media?parent=10209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.edf.org\/health\/wp-json\/wp\/v2\/categories?post=10209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.edf.org\/health\/wp-json\/wp\/v2\/tags?post=10209"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/blogs.edf.org\/health\/wp-json\/wp\/v2\/coauthors?post=10209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}