EPA has proposed changes to TSCA’s Inventory Update Reporting Rule (IUR) that
would significantly increase the amount of information required to be reported,
the frequency of reporting, and the number of companies that would have to file
an IUR report.
Currently, the IUR rule requires U.S. companies to file a report every five
years for each chemical on the TSCA Inventory that they manufacture or import.
The next report is due between June and September 2011 for the calendar year
2010. The threshold for filing is 25,000 pounds during the preceding calendar
year. Additional information on domestic processing and use has to be reported
if a company manufactures or imports more than 300,000 pounds during that year.
A separate report is filed for each chemical that exceeds the threshold at each
In a proposed rule issued last Friday (August 13), EPA proposes to
dramatically change the IUR rule.
More Information to be Reported
Currently, companies only have to report the amount of a chemical that they
produced or imported during the preceding calendar year. For instance, in the
2011 report, a company would only report what it produced or imported during
2010. The proposed rule changes this. Instead, a company will have to report the
amount it produced or imported for each year since the last filing, meaning that
in the 2011 report, a company will have to report such figures for each year
from 2006 through 2010.
In addition, the 300,000-pound threshold for reporting how downstream
companies or consumers process or use a chemical is eliminated. Anyone who files
an IUR report will have to provide such information.
Increased Reporting Frequency
Currently, an IUR report is due every five years, with the last reporting
year being 2006. Starting in 2011, the IUR report will be due every four years.
However, EPA is seriously considering increasing the reporting frequency even
further with a strong indication in the preamble to the proposed rule that IUR
reports may well have to be filed annually.
More Companies Required to File
Historically, the duty to file was based on whether the reporting threshold
was met during the previous calendar year. Starting in 2015, companies will have
a duty to file if the threshold is exceeded in any calendar year since the last
filing. For example, if a company does not manufacture a chemical in 2011, 2012
or 2014, but makes 50,000 pounds in 2013, it will have to file an IUR report in
Electronic Reporting Mandatory
Beginning with next year’s filing, all IUR reports will have to be filed
electronically. Paper filings will not be accepted.
Significant Timing Concerns
EPA does not expect to finalize this rule until next spring, shortly before
the filing period begins in June. This schedule creates considerable uncertainty
for companies as to what they will have to report. Comments on the proposed rule
can be submitted through Oct. 12, 2010.
Non-compliance with the IUR reporting rule can lead to significant financial
penalties, as each chemical at each facility is considered a separate violation.
With each violation subject to a fine of approximately $22,000, a failure to
report just five chemicals leads to a fine of more than $100,000. Over the last
18 months, McGuireWoods has represented three companies with regard to alleged
non-compliance with the 2006 reports, one of which faced a fine of more than
For further information regarding the proposed changes to the IUR rule,
please contact the authors.