Economic Analysis of the Proposed Rule for User Fees for the Administration of the Toxic Substances Control Act, EPA-HQ-OPPT-2017-0401; RIN 2070-AK27)

                                                         Contract # EP-W-16-009

                                                                      FAR Draft

                                                                 April 30, 2017

Economic and Policy Analysis Branch
	Chemistry, Economics & Sustainable Strategies Division
Office of Pollution, Prevention, and Toxics
U.S. Environmental Protection Agency
1200 Pennsylvania Avenue
Washington, DC 20460

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Economic Analysis of the Proposed Rule for User Fees for the Administration of the Toxic Substances Control Act, EPA-HQ-OPPT-2017-0401; RIN 2070-AK27)
Table of Contents
Tables	iv
Glossary	i
Executive Summary	ii
1.	Introduction	1-1
1.1	Statutory Authority	1-1
1.2	Regulatory Background	1-1
1.2.1	TSCA Section 4	1-1
1.2.2	TSCA Section 5	1-2
1.2.3	TSCA Section 6	1-3
1.2.4	TSCA Section 14	1-4
1.3	Statement of Need	1-4
1.4	Organization of This Report	1-5
2.	Industry Profile	2-6
2.1	Methodology	2-6
2.1.1	Universe of Affected Entities	2-6
2.1.2	Small Business Determination: For Industry Profile Analysis	2-8
2.1.3	Small Business Determination: For Proposed Rule Implementation	2-8
2.2	Chemical Manufacturers	2-8
2.3	Petroleum Refineries	2-9
2.4	Chemical and Petroleum Merchant Wholesalers	2-9
3.	Costs	3-11
3.1	Overview	3-11
3.1.1	TSCA Section 4 Actions	3-11
3.1.2	TSCA Section 5 Actions	3-11
3.1.3	TSCA Section 6 Actions	3-11
3.1.4	TSCA Section 14	3-12
3.2	Cost Estimation Method	3-12
3.2.1	Estimates of Number of Activities	3-12
3.3	Proposed Option	3-13
3.4	Total Cost of Proposed Option	3-15
3.4.1	Total Small Business Costs for Proposed Option	3-18
3.5	Baseline Costs	3-21
3.5.1	Baseline Costs for Small Businesses	3-22
3.6	Incremental Costs of Proposed Option	3-24
3.6.1	Incremental Costs for Small Businesses	3-25
3.7	Alternative Option	3-26
3.7.1	Alternative Option Fee Structure	3-26
3.7.2	Alternative Option Total Costs	3-27
3.7.3	Alternative Option Incremental Costs	3-1
4.	Benefits	4-3
4.1	Funding for Program Implementation	4-3
4.1.1	Benefits of Regulations under TSCA Section 4	4-3
4.1.2	Benefits of Regulations under TSCA Section 5	4-4
4.1.3	Benefits of Regulations under TSCA Section 6	4-4
5.	Small Entity Analysis	5-1
5.1	Regulatory Requirement for Small Business Analysis	5-1
5.1.1	Definition of Small Entities	5-1
5.2	Methodology Overview	5-3
5.3	Small Entity Analysis Calculations and Results	5-3
5.3.1	Estimating the Universe of Affected Entities	5-3
5.3.2	Estimating Annual Revenue for Affected Parent Companies	5-4
5.3.3	Estimating Small Business Cost Impacts	5-5
5.3.4	Number of Affected Small Businesses	5-8
5.4	Summary of Small Business Impacts	5-8
6.	Other Impacts	6-1
6.1	Employment Impact Analysis	6-1
6.2	Impacts on Technological Innovation and the National Economy	6-2
6.3	Paperwork Burden Analysis	6-2
6.3.1	Loaded Wages	6-4
6.3.2	Section 4 Respondent Burden and Costs	6-6
6.3.3	Section 5 Respondent Burden and Costs	6-6
6.3.4	Section 6 Respondent Burden and Costs	6-7
6.4	Agency Burden	6-8
6.5	Unfunded Mandate Reform Act	6-10
6.6	Executive Order 12898 - Environmental Justice	6-10
6.7	Executive Order 13045 - Protection of Children	6-10
6.8	Executive Order 13132 - Federalism	6-11
6.9	Executive Order 13175 - Tribal Implications	6-11
6.10	Executive Order 13211 - Energy Supply, Distribution, or Use	6-11
7.	References	7-1

Tables
Table ES-1-1: Summary of Fee Structure Options	ii
Table ES-1-2: Industries Expected to Be Impacted by Proposed Rule	iii
Table ES-1-3: Overview of Total Costs of Fee Structure Options	iv
Table ES-1-4: Comparison of Fee Structure for Regulatory Options	v
Table ES-1-5: Fee Structure Options for Manufacturer-Requested Risk Evaluation	v
Table ES-1-6: Annual Small Business Cost-Revenue Impacts for Firms Incurring Costs	vii
Table 2-1: Industries Expected to Be Affected by Proposed Rule	2-7
Table 2-2: Total Number of Parent Companies, Firms, and Employees in the Chemical Manufacturing Industry	2-9
Table 2-3: Total Number of Firms and Employees in Petroleum Refineries Industry Sectors	2-9
Table 2-4: Total Number of Firms and Employees in the Chemical and Petroleum Merchant Wholesaler Industry Sectors	2-10
Table 3-1: Fee Structure for Proposed Option	3-14
Table 3-2: Fee Structure for Manufacturer-Requested Risk Evaluation under the Proposed Option	3-14
Table 3-3: Annual Total Cost of Proposed Option	3-16
Table 3-4: Discounted Total Costs of Proposed Option	3-17
Table 3-5: Total Costs of Proposed Option Manufacturer-Requested Risk Evaluations	3-17
Table 3-6: Total Annual Small Business Costs for Proposed Option	3-20
Table 3-7: Discounted Total Small Business Costs for Proposed Option	3-21
Table 3-8: Total Baseline Costs	3-23
Table 3-9: Incremental Costs of Proposed Option	3-24
Table 3-10: Proposed Option Incremental Costs of Manufacturer-Requested Risk Evaluations	3-24
Table 3-11: Incremental Costs per Firm of Proposed Option	3-25
Table 3-12: Proposed Option Incremental Costs of Small Businesses	3-26
Table 3-13: Alternative Option Fee Structure	3-26
Table 3-14: Total Costs of the Alternative Option	3-28
Table 3-15: Discounted Total Costs of the Alternative Option	3-29
Table 3-16: Total Annual Small Business Costs for the Alternative Option	3-30
Table 3-17: Incremental Costs of the Alternative Option	3-1
Table 3-18: Alternative Option Small Business Incremental Costs	3-2
Table 5-1: SBA Small Business Definitions for Affected Sectors	5-2
Table 5-2: Section 5 Small Business Cost-Revenue Impact 1% and 3% Thresholds	5-6
Table 5-3: Fees for Section 4 and Section 6	5-6
Table 5-4: Section 4 and 6 Small Business Cost-Revenue Impact with Discount	5-7
Table 5-5: Section 4 and 6 Small Business Cost-Revenue Impact without Discount	5-7
Table 5-6: Average and Median Revenue for Small Businesses in the Industries Likely to be Affected	5-8
Table 5-7: Total Estimated Small Business Fee Payments	5-9
Table 6-1:  Industry Wage Rates	6-5
Table 6-2: Summary of Annual Total Respondent Burden Costs Associated with Section 4 Activities ($2016)	6-6
Table 6-3: Summary of Annual Total Respondent Burden Hours and Costs Associated with Section 5 Activities ($2016)	6-7
Table 6-4: Summary of Annual Total Respondent Burden and Costs Associated with Section 6 Activities ($2016)	6-8
Table 6-5 Agency Wage Rate- Section 5 (2016$)	6-9

Glossary
BLS	U.S. Bureau of Labor Statistics
CBI	Confidential Business Information
CDX	Central Data Exchange
CFR 	Code of Federal Regulations
EPA	U.S. Environmental Protection Agency
ICR	Independent Cost Request
LVE	Low Volume Exemption
MCAN	Microbial Commercial Activity Notice
NAICS	North American Industry Classification System
NOC	Notice of Commencement
PMN	Pre-Manufacture Notice
PPI	Producer Price Index
RFA	Regulatory Flexibility Act
SBA	Small Business Administration
SBREFA	Small Business Regulatory Enforcement Fairness Act
SNUN	Significant New Use Notice
SNUR	Significant New Use Rule
TERA	TSCA Environmental Release Application
TME	Test Marketing Exemption
TSCA	Toxic Substances Control Act

Executive Summary
The Frank R. Lautenberg Chemical Safety for the 21st Century Act amended the Toxic Substances Control Act (TSCA) and gives the Environmental Protection Agency (EPA) the authority to create a new fee structure to cover the costs of administering TSCA activities. (Section 26(b) of TSCA, 15 U.S.C. 2625). The fee structure must be designed to collect the lesser of 25 percent of EPA administration costs or $25 million.
The economic analysis for this proposed rule considers the costs and benefits of the proposed fee structure, as well as an alternative regulatory option, both of which are summarized in Table ES-1-1.
Table ES-1-1: Summary of Fee Structure Options
                             Fee Structure Option

                   Estimated Total Annualized Fee Collection
                          Difference Between Options
Proposed Option
Sections 4, 5, and 6
                                  $24,770,542
Fees calculated at 33% of Section 4, 33% of Section 5, and 50% of Section 6 administration costs.

Manufacturer-Requested Risk Evaluations
                                  $9,822,232

Alternative Option
Sections 4, 5, and 6
                                  $24,492,001
Fees calculated at 5% of Section 4, 20% of Section 5, and 70% of Section 6 administration costs.

Manufacturer-Requested Risk Evaluations
                                  $9,822,232

Affected Entities
EPA expects chemical manufacturing to be the primary industry sector affected by the proposed rule. Additionally, EPA expects the petroleum refineries industry sector and firms in the merchant wholesale sectors for chemicals and petroleum to be affected by the proposed rule. The 33 industry sectors expected to be affected by the proposed rule are presented in Table ES-1-2.

Table ES-1-2: Industries Expected to Be Impacted by Proposed Rule
NAICS Code
NAICS Name
                                    324110
Petroleum refineries
                                    325110
Petrochemical manufacturing
                                    325120
Industrial gas manufacturing
                                    325130
Synthetic organic dye and pigment manufacturing
                                    325180
All other basic inorganic chemical manufacturing
                                    325193
Ethyl Alcohol Manufacturing
                                    325194
Cyclic crude and intermediate manufacturing
                                    325199
All other basic organic chemical manufacturing
                                    325211
Plastics material and resin manufacturing
                                    325212
Synthetic Rubber Manufacturing
                                    325220
Artificial and Synthetic Fibers and Filaments Manufacturing
                                    325311
Nitrogenous Fertilizer Manufacturing
                                    325312
Phosphatic Fertilizer Manufacturing
                                    325314
Fertilizer (Mixing Only) Manufacturing
                                    325320
Pesticide and Other Agricultural Chemical Manufacturing
                                    325411
Medicinal and botanical manufacturing
                                    325412
Pharmaceutical preparation manufacturing
                                    325413
In-Vitro Diagnostic Substance Manufacturing
                                    325414
Biological Product (except Diagnostic) Manufacturing
                                    325510
Paint and Coating Manufacturing
                                    325520
Adhesive manufacturing
                                    325611
Soap and other detergent manufacturing
                                    325612
Polish and other sanitation good manufacturing
                                    325613
Surface active agent manufacturing
                                    325620
Toilet Preparation Manufacturing
                                    325910
Printing Ink Manufacturing
                                    325920
Explosives Manufacturing
                                    325991
Custom compounding of purchased resins
                                    325992
Photographic film, paper, plate, and chemical manufacturing
                                    325998
All other miscellaneous chemical product and preparation manufacturing
                                    424690
Other Chemical and Allied Products Merchant Wholesalers
                                    424710
Petroleum Bulk Stations and Terminals
                                    424720
Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)

Costs
Overall, EPA developed seven fee categories for Sections 4, 5, and 6. Section 4 actions include Test Orders, Test Rules, and Enforceable Consent Agreements (ECAs). Section 5 actions include Pre-Manufacture Notices (PMNs), Low Volume Exemptions (LVEs); Test Marketing Exemption Applications (TMEAs); Low Release/Low Exposure Exemptions (LoREX); Microbial Commercial Activity Notices (MCANs); TSCA Experimental Release Application (TERAs), Tier II Exemptions, Film Article Exemptions, and Significant New Use Notifications (SNUNs). Finally, Section 6 comprises both Agency-initiated and manufacturer-requested risk evaluations.
EPA estimates total industry costs of $24,770,542 per year for the proposed option. A breakdown of total costs for the regulatory options examined for this proposed rule is summarized in Table ES-1-3. Total costs were calculated by multiplying the estimated number of submissions per action by the corresponding proposed fee. Additional information can be found in Chapter 3 of this Economic Analysis.
Table ES-1-3: Overview of Total Costs of Fee Structure Options

                            Submission Type/Action
                        Estimated Total Annualized Fees
                      Percentage of Total Annualized Fees
Proposed Option

Section 4
                                                                   $1,540,009
                                                                           6.2%
Section 5
                                                                    $9,897,200
                                                                          40.0%
Section 6
                                                                   $13,333,333
                                                                          53.8%
Manufacturer-Requested Risk Evaluations
                                                                    $9,822,232
                                                                              *
Alternative Option

Section 4
                                                                     $231,668
                                                                           0.9%
Section 5
                                                                    $5,927,000
                                                                          24.2%
Section 6
                                                                   $18,333,333
                                                                          74.9%
Manufacturer-Requested Risk Evaluations
                                                                    $9,822,232
                                                                              *
* Manufacturer-requested risk evaluation fees are considered separately from total fee collection because these actions are not Agency driven.

Prior to the 2016 amendments to TSCA, EPA only charged fees for certain Section 5 actions, with no fees for Section 4 or Section 6 actions. A comparison of the proposed fees for the various regulatory options examined for this proposed rule is shown in Table ES-1-4 and Table ES-1-5. Further discussion can be found in Section 3.5 of this analysis.

Table ES-1-4: Comparison of Fee Structure for Regulatory Options
                            Submission Type/Action
                               Proposed Option
                              Alternative Option

                               General Industry
                               Small Business[1]
                               General Industry
                               Small Business[1]
Section 4

Test Order
                                                                      $120,000
                                                                       $60,000
                                                                       $18,000
                                                                        $9,000
Test Rule
                                                                      $370,000
                                                                       $92,500
                                                                       $56,000
                                                                       $28,000
ECA
                                                                      $280,000
                                                                       $70,000
                                                                       $43,000
                                                                       $21,500
Section 5

PMNs (including intermediates)/MCAN/SNUN
                                                                       $20,000
                                                                        $2,000
                                                                       $12,000
                                                                        $2,000
TME/TERA/LVE/LoREX/Tier II/Film Article
                                                                        $2,000
                                                                          $500
                                                                        $1,000
                                                                          $500
Section 6

EPA-Initiated Risk Evaluation
                                                                    $2,000,000
                                                                    $1,600,000
                                                                    $2,750,000
                                                                    $2,200,000
[1] For the fee options, Section 5 actions are the only TSCA activities associated with a prescribed discounted fee for eligible small businesses. For Sections 4 and 6 actions, EPA is proposing 50% and 20% discounts, respectively, on the portion of the fee to be paid by an affected eligible small business that opts out of joining a consortium or that is the sole affected firm for an action. This means that the specific discounted fees for eligible small businesses for Sections 4 and 6 actions are dependent on the number of affected firms.

Table ES-1-5: Fee Structure Options for Manufacturer-Requested Risk Evaluation
                            Submission Type/Action
                                Proposed Option
Work Plan Chemical
                                                                    $1,964,446
Non-Work Plan Chemical
                                                                    $3,928,893

Benefits
The principal benefit of the proposed rule is to provide EPA a sustainable source of funding necessary to implement TSCA as mandated under the Frank R. Lautenberg Chemical Safety for the 21st Century Act. The benefits of TSCA regulation are described broadly in Chapter 4 of this Economic Analysis with respect to Section 4, Section 5, and Section 6. Specific benefits can be found in the economic analyses on chemicals regulated under TSCA.
Small Business Impacts
For the fee options, Section 5 actions are the only TSCA activities associated with a prescribed discounted fee for eligible small businesses. For Sections 4 and 6 actions, EPA is proposing 50% and 20% discounts, respectively, on the portion of the fee to be paid by an affected eligible small business that opts out of joining a consortium or that is the sole affected firm for an action. This means that the specific discounted fees for eligible small businesses for Sections 4 and 6 actions are dependent on the number of affected firms.
Affected small businesses examined in this analysis are defined by the Small Business Administration (SBA). For the purposes of setting fees, small businesses eligible for discounted fees are defined as firms with average annual sales in the preceding three years of less than $91 million. Using Census revenue data on the universe of affected entities from the chemical manufacturing (NAICS code 325), petroleum refinery (NAICS code 324110), chemical merchant wholesalers (NAICS code 424690), and petroleum merchant wholesalers (NAICS codes 424710 and 424720) sectors, EPA determines that only the fees associated with risk evaluations under Section 6 may represent significant impacts for small businesses. However, only a small proportion and small number of small businesses are likely to experience these impacts.
EPA estimates the median annual sales for small businesses likely to be affected by Section 4 and Section 6 actions to be $5,445,250; and $3,475,263 for small businesses likely to be affected by Section 5 actions. Table ES-1-6, presents the number and proportion of small businesses that are expected to experience costs as a result of the proposed rule. More details can be found in Chapter 5 of this Economic Analysis. Overall, of the 307 small businesses that are expected to incur costs each year, about 95.4% of small businesses within the NAICS codes expected to be affected by Sections 4, 5, and 6 actions may pay fees equivalent to less than 1% of the average sales. About 4.6% of small businesses affected by the proposed rule may pay fees greater than 3% of average sales. Total estimated fee payments from small businesses amount to $6,245,002, with $385,002 from Section 4 actions, $500,000 from Section 5 actions, and $5,360,000 from Section 6 actions. EPA estimates that total fees paid by small businesses will account for about 25% of the $25 million maximum fees to be collected for Sections 4, 5, and 6 actions. EPA also estimates that total discounted fees paid by small businesses account for 14% of the total annual cost of the proposed rule.

Table ES-1-6: Annual Small Business Cost-Revenue Impacts for Firms Incurring Costs
Submission Type/Action
                      General Fee Paid per Small Business
                    Small Business Discounted Fee per Firm
                   Number of small businesses with impacts
                              < 1% and > 0%
                   Number of small businesses with impacts
                              < 3% and > 1%
                    Number of small businesses with impacts
                                    > 3%
Section 4

Test Order
                                                                        $4,286

                                                                     70 (22.8%)
                                                                       0 (0.0%)
                                                                       0 (0.0%)
Test Rule
                                                                       $13,214

                                                                       7 (2.3%)
                                                                       0 (0.0%)
                                                                       0 (0.0%)
ECA
                                                                       $10,000

                                                                       7 (2.3%)
                                                                       0 (0.0%)
                                                                       0 (0.0%)
Section 5

PMNs (including intermediates)/MCAN/SNUN
                                                                       $20,000
                                                                        $2,000
                                                                     96 (31.3%)
                                                                       0 (0.0%)
                                                                       0 (0.0%)
TME/TERA/LVE/LoREX/Tier II/Film Article
                                                                        $2,000
                                                                          $500
                                                                    106 (34.5%)
                                                                       0 (0.0%)
                                                                       0 (0.0%)
Section 6

Risk Evaluation
                                                                      $285,714

                                                                       7 (2.3%)
                                                                       0 (0.0%)
                                                                      14 (4.6%)

                                                                          Total

                                                                    293 (95.4%)
                                                                       0 (0.0%)
                                                                      14 (4.6%)
Note:
Fees paid by small businesses are a combination of discounted fees (for firms designated as eligible small businesses by the EPA definition of average sales over preceding three years averaging less than $91 million) and general fees paid by SBA-defined small businesses with average sales over the preceding three years averaging $91 million or more. Discounted fees for Section 5 actions are prescribed. The discounted Sections 4 and Section 6 fees are estimated by dividing the general fee per action by the estimated average number of firms for each chemical involved in each action, then applying a 50% discount for Section 4 actions or 20% discount for Section 6 actions. Once the portion of the Section 4 and Section 6 fee for small businesses eligible for discounts is excluded, the general fee paid by a small business not eligible for a discount is determined by dividing the remainder by the number of other affected firms for the respective action. EPA assumes that seven chemicals are involved in each Section 4 action and estimates that four firms are impacted by each chemical involved in a Section 4 action, with one of the four affected entities being a small business not eligible for a discounted fee. For Section 6, EPA estimates an average of seven firms are manufacturers of each chemical under a risk evaluation, with three affected entities being small businesses and two of the three small businesses eligible for the discounted fee.

Introduction
The U.S. Environmental Protection Agency (EPA) must develop and finalize a rule establishing a fees framework before collecting fees to defray some of the costs associated with the requirements of the Toxic Substances Control Act (TSCA), as amended by the Frank R. Lautenberg Chemical Safety for the 21st Century Act. This chapter presents an overview of the economic justifications for the proposed rule. Section 1.1 describes the statutory authority for the proposed rule. Section 1.2 provides the regulatory background of this proposed rule, summarizing the regulations under TSCA sections associated with the proposed rule and the Agency's burden. Section 1.3 explains the economic justifications for the proposed rule. Section 1.4 describes the organization of the remainder of this Economic Analysis.
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Statutory Authority
The Toxic Substances Control Act (TSCA), as amended by the Frank R. Lautenberg Chemical Safety for the 21st Century Act, provides EPA authority to collect fees to defray the costs associated with administering TSCA Sections 4, 5, and 6, as well as the costs of collecting, processing, reviewing, and providing access to and protecting chemical substances from disclosure as appropriate under Section 14. This rule is proposed under Section 26(b) of TSCA, 15 U.S.C. 2625.
TSCA was enacted in 1976 to regulate the manufacture, import, processing, distribution, use, and disposal of chemical substances in the United States. On June 22, 2016, the President signed into law the Frank R. Lautenberg Chemical Safety for the 21st Century Act, amending TSCA. Among other provisions, the Lautenberg Act provides for EPA to collect up to 25 percent of the costs to carry out Sections 4, 5, 6 and 14 (or $25 million, whichever is lower) in user fees. Previously, TSCA capped individual user fees at $2,500 and provided more limited fee collection authority (EPA, 2016a).
Regulatory Background
Currently, fees are only collected for certain submissions under Section 5 of TSCA. These fees are established in 40 CFR §700.45. Under the Lautenberg Act's amendments to TSCA, EPA has authority to collect fees from manufacturers and processors who:
 Are required to submit test data (TSCA Section 4);
 Submit notification of or information related to intent to manufacture a new chemical or new use of a chemical (TSCA Section 5);
 Manufacture or process a chemical substance that is subject to a risk evaluation (TSCA Section 6); or
 Request EPA to conduct risk evaluation on an existing chemical (TSCA Section 6). (EPA, 2016a)
These fees are intended to defray some of the costs associated with administering these Sections, as well as the costs of collecting, processing, reviewing, and providing access to and protecting chemical substances from disclosure as appropriate under TSCA Section 14  (EPA, 2016a). An overview of each of these TSCA Sections is provided below.
TSCA Section 4
TSCA Section 4, Testing of Chemical Substances and Mixtures, gives EPA the authority to require, by rule, order, or consent agreement, manufacturers and processors to conduct testing of identified chemical substances or mixtures. This testing is required to develop information on health or environmental effects when there is insufficient information for EPA risk assessors to be able to determine whether a chemical substance or mixture presents an unreasonable risk to health or the environment.
The current respondent (industry) burden,  as reported in the TSCA Section 4 Information Collection Request (ICR) supporting statement, associated with Section 4 activities include submission of reports and study plans; new Central Data Exchange (CDX) registration; exemption application; and arranging for studies. EPA expects that, as in the past, multiple manufacturers/processors will be subject to each future Section 4 activity and allows for regulated companies to form consortia for each Section 4 action. The consortium would be responsible for providing the requested information and paying the fee for the Section 4 action.
EPA's activities associated with the administration of TSCA Section 4 include:
 Rule/order development;
 Test plan review
 Compliance review
 Data analysis
 Data management
 Transparency
 Management of Confidential Business Information (EPA, 2016a).
Currently, manufacturers and processors subject to rules promulgated under TSCA Section 4 are not required to pay a fee associated with these activities.
TSCA Section 5
TSCA Section 5, Manufacturing and Processing Notices, requires that manufacturers and processors provide EPA with notice before initiating the manufacture (or import) of a new chemical substance or initiating the significant new use of a chemical substance. EPA is required to take risk management action as needed to address any unreasonable risk identified during pre-manufacture review.
Examples of the notices or other information that manufacturers and processors are required to submit under TSCA Section 5 are Pre-Manufacture Notices (PMNs), Low Volume Exemptions (LVEs); Test Marketing Exemption Applications (TMEAs); Low Release/Low Exposure Exemptions (LoREX); Microbial Commercial Activity Notices (MCANs); TSCA Experimental Release Applications (TERAs); Notices of Commencement (NOCs), and Significant New Use Notifications (SNUNs).
Current respondent burden activities for Section 5 activities include reporting hours, recordkeeping, and CDX registration.
The amendments to TSCA now require EPA to provide affirmative determinations for all notices that EPA reviews. EPA's activities associated with the administration of TSCA Section 5 include:
 Notice review/data analysis
 Development/refinement of analytical tools
 Order/rule development/risk reduction
 Affirmative determination for notices reviewed
 Data management
 Transparency
 Management of Confidential Business Information (EPA, 2016a)
Under 40 CFR 700.45(b)(1), small business concerns currently must pay a fee of $100 for each Section 5 notice submitted. EPA is authorized under §700.45(b)(2) to request fees from other manufacturers and processors as follows:
       PMNs and consolidated PMNs: $2,500
       Intermediate PMNs: $1,000
       SNUNs: $2,500.
       Exemption applications:  $2,500
       Exemption notices: $2,500
       MCAN and consolidated MCAN: $2,500
However, EPA did not require fees for Section 5 exemptions.
TSCA Section 6
TSCA Section 6, Prioritization, Risk Evaluation, and Regulation of Chemical Substances and Mixtures, provides EPA with the authority to regulate chemicals if the manufacture, processing, distribution in commerce, use, or disposal presents an unreasonable risk of injury to human health or the environment. Under the Lautenberg Act's amendments to TSCA, Section 6 also requires EPA to perform risk evaluations: EPA must establish a risk-based screening process, including criteria for designating chemical substances as high-priority substances for risk evaluations or low-priority substances for which risk evaluations are not warranted at the time. Under Section 6, EPA can require the submission of relevant information on a chemical substance in order to perform the risk evaluation.
Under the amendments to TSCA, EPA must be conducting at least 20 EPA-initiated risk evaluations at all times by the year 2020. In addition, manufacturers may request a risk evaluation on a chemical substance; TSCA establishes that these requests are subject to the payment of a fee sufficient to defray 50% of the costs associated with conducting a risk evaluation on a chemical in the 2014 Work Plan and the full cost of conducting the risk evaluation for all other chemicals. EPA expects that multiple manufacturers/processors will be subject to each future Section 6 activity and allows affected manufacturers (including importers) and processors to form a consortium for the payment of fees associated with each Section 6 action.
EPA's activities associated with the administration of TSCA Section 6 include:
 Risk-based prioritization
 Risk Evaluation  -  data gathering, data analysis, unreasonable risk determination
 Data management
 Transparency
 Confidential Business Information management
 Development/refinement of analytical tools
 Peer review, as appropriate
 Development of risk management actions
Currently, manufacturers and processors of chemicals undergoing EPA risk-screening processes are not required to pay a fee associated with risk evaluations under Section 6.
TSCA Section 14
TSCA Section 14, Confidential Information, prevents EPA from disclosing certain Confidential Business Information (CBI), as determined to be protected under the statute. Under the amended TSCA, EPA is required to review all CBI claims for chemical identity and make a determination of whether such claims are substantiated, within 90 days of receipt, and review a representative 25 percent of other CBI substantiation claims within 90 days of receipt. Information will be considered CBI for a period of 10 years, unless the claim is reasserted.
EPA's activities associated with the administration of TSCA Section 14 include:
 CBI docket management
 Data Management specifically for receiving and managing CBI data
 Tracking and notification for reassertion of claims
 Claims Reviews
 Transparency, as appropriate
 Disclosure to authorized persons, including States
 Clearance and security procedures (EPA, 2016a)
Currently, manufacturers (including importers) and processors of chemicals are not required to pay a fee associated with the maintenance of CBI. EPA plans to continue this practice.
Statement of Need
The authority for EPA to collect fees to defray some of the costs associated with administering TSCA is a method of privatization of finance, as opposed to general taxation. Governments use this method to require specific "customers" to pay for the services they receive. While regulations under Sections 4, 5, and 6 of TSCA provide health and environmental benefits to society as a whole (as described in Chapter 3.7), it must also be understood that the chemical manufacturer/processor profits financially by being able to sell a chemical that has been determined to not present an unreasonable risk. Therefore, it is appropriate that the manufacturer/processor share in the cost for this evaluation.
Mikesell (2013) identifies four general advantages of user charges (e.g., fees): to register and record public demand for a service; to improve financing equity for the services; to improve the agency's operating efficiency; and to correct cost-and-price signals in the private market. The advantages most relevant to this proposed rule are that fees can help improve financing equity, and to correct the cost-and-price signals.
Improved financing equity. Mikesell (2013) notes that "If the service is of a chargeable nature, its provision by general tax revenues will undoubtedly subsidize the service recipient group at the expense of the general taxpaying public." The proposed rule increases social equity in that for a chemical company to profit from the goods that it produces, the company must share in the cost to implement the rules that gather and disseminate information about the chemical's risk.
Correct cost-and-price signals. The implementation of a fee associated with TSCA Sections 4, 5, and 6 may correct cost-and-price signals in the private market, in that the cost to the consumer of the regulated chemicals may include these costs. Therefore, the fee makes the consumer recognize and respond to the true social cost.
Organization of This Report
The remainder of this report provides EPA's economic analysis in support of this proposed rule. Potentially affected entities are characterized in Chapter 2. Chapter 3 estimates the cost of the proposed rule. Chapter 4 qualitatively addresses the benefits of the proposed rule. Chapter 5 provides the small entity impact analysis for the proposed rule, as mandated by the Regulatory Flexibility Act (RFA), and amended by the Small Business Regulatory Enforcement Fairness Act (SBREFA). Several additional impact analyses are presented in Chapter 6.
Note that all dollar amounts in this analysis are reported in 2016 dollars.
Industry Profile
This chapter presents the number of entities that EPA estimates may be affected by the proposed rule. EPA estimates that chemical manufacturers, petroleum refineries, and chemical and petroleum wholesalers may be affected by the proposed rule, based on their engagement in TSCA activities. Therefore, the affected entities analyzed in this chapter include chemical manufacturers, petroleum manufacturers, and chemical and petroleum merchant wholesalers that may be subject to TSCA Sections 4, 5 and 6 actions.
In order to estimate the scale and impact of the proposed rule, EPA has identified the types and number of firms that may potentially be subject to fees as a result of this proposed rulemaking. Section 2.1 presents the methodology for defining, counting, and identifying the sizes of the entities which may be affected by the proposed rule. Section 2.2 describes the chemical manufacturing industry sector; Section 2.3 describes the petroleum refineries industry sector; and Section 2.4 describes the chemical and petroleum merchant wholesaler industry sector.
Methodology
In order to estimate the scale and impact of the proposed rule, EPA has estimated the number of entities that will potentially be affected by this proposed rule and the size of these entities. Section 2.1.1 presents the list of affected industries and EPA's methods for determining this list.
For the purpose of this analysis, EPA used the Small Business Administration's (SBA) size determination (see Section 2.1.2).
Universe of Affected Entities
EPA expects chemical manufacturing to be the primary industry sector affected by the proposed rule. EPA also expects that firms from the petroleum refining industry sector and the chemical and petroleum merchant wholesale industry sectors are likely to be affected by the proposed rule. The petroleum refining sector frequently engages in activities regulated under TSCA  -  in particular, Section 5 significant new use applications.
Table 2-1 shows the NAICS codes for all 33 industry sectors that EPA estimates will be affected by the proposed rule. The list comprises all 29 6-digit NAICS code for the Chemical Manufacturing sector (NAICS code 325), the Petroleum Refinery sector (one NAICS code: 324110), and three 6-digit NAICS codes (424690, 424710, and 424720) from the Wholesale Trade sector (42) for chemical and petroleum wholesalers.
Table 2-1: Industries Expected to Be Affected by Proposed Rule
                                  NAICS Code
                               NAICS Description
                                    324110
Petroleum refineries
                                    325110
Petrochemical manufacturing
                                    325120
Industrial gas manufacturing
                                    325130
Synthetic organic dye and pigment manufacturing
                                    325180
All other basic inorganic chemical manufacturing
                                    325193
Ethyl Alcohol Manufacturing
                                    325194
Cyclic crude and intermediate manufacturing
                                    325199
All other basic organic chemical manufacturing
                                    325211
Plastics material and resin manufacturing
                                    325212
Synthetic Rubber Manufacturing
                                    325220
Artificial and Synthetic Fibers and Filaments Manufacturing
                                    325311
Nitrogenous Fertilizer Manufacturing
                                    325312
Phosphatic Fertilizer Manufacturing
                                    325314
Fertilizer (Mixing Only) Manufacturing
                                    325320
Pesticide and Other Agricultural Chemical Manufacturing
                                    325411
Medicinal and botanical manufacturing
                                    325412
Pharmaceutical preparation manufacturing
                                    325413
In-Vitro Diagnostic Substance Manufacturing
                                    325414
Biological Product (except Diagnostic) Manufacturing
                                    325510
Paint and Coating Manufacturing
                                    325520
Adhesive manufacturing
                                    325611
Soap and other detergent manufacturing
                                    325612
Polish and other sanitation good manufacturing
                                    325613
Surface active agent manufacturing
                                    325620
Toilet Preparation Manufacturing
                                    325910
Printing Ink Manufacturing
                                    325920
Explosives Manufacturing
                                    325991
Custom compounding of purchased resins
                                    325992
Photographic film, paper, plate, and chemical manufacturing
                                    325998
All other miscellaneous chemical product and preparation manufacturing
                                    424690
Other Chemical and Allied Products Merchant Wholesalers
                                    424710
Petroleum Bulk Stations and Terminals
                                    424720
Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)
Source: EPA, 2007 and 2008; Census, 2015

Small Business Determination: For Industry Profile Analysis
To identify small businesses that may be impacted by the proposed rule, EPA used the 2012 U.S. Census data and the 2016 SBA small business size standards (Census, 2015; SBA, 2016). The SBA size determinations are industry-specific and represent revenue or employee thresholds that a parent company within the industry must be below in order for the entity to be classified as a small business by the SBA and federal contracting programs. These size thresholds are determined for 6-digit NAICS codes. All 33 NAICS codes affected by this proposed rule have employment-based thresholds, ranging from 150 to 1,500 employees (SBA, 2016). EPA relied on 2012 U.S. Census data for employment information (Census, 2015).
Small Business Determination: For Proposed Rule Implementation
The proposed rule prescribes a discounted fee for eligible small businesses submitting under TSCA Section 5, as well as for eligible small businesses subject to a Section 4 or Section 6 action.  EPA is proposing that in order to be eligible for the small business discount, the parent company's average revenue over the preceding three years must be less than $91 million.  Therefore, for the purpose of estimating costs in this analysis, EPA identified small parent companies as those reporting average annual sales below $91 million over the three years preceding the submission or action. To estimate annual revenue for affected parent companies, EPA used firm-level 2012 U.S. Census Statistics of the U.S. Business (SUSB) data to obtain reported revenue figures for parent entities in the affected universe. The U.S. Census reports total receipts for each NAICS code/revenue size combination. EPA divided the average of total receipts reported for each NAICS code/revenue size classification by the total number of firms in that category to estimate the average revenue for firms in each NAICS code/revenue size combination.
In a couple of instances, Census receipt data were not reported. The Census does not report annual receipts for some NAICS code/revenue size combinations in order to avoid disclosing individual firm information. Therefore, it was not possible to include these firms in this analysis using this data. Additionally, SUSB data do not report the total receipts for NAICS/revenue size classifications that are comprised of too few enterprises in order to avoid disclosing financial information that may be readily disaggregated to the individual firm level. In many cases, where possible, EPA uses the average percent difference of the adjacent revenue size classes to estimate the value of the unreported total revenue.
Chemical Manufacturers
As shown in Table 2-2, 13,309 establishments reported Chemical Manufacturing as their primary NAICS code in the 2012 Census. These 13,309 establishments belong to a total of 10,451 parent companies and employ a total of 727,993 employees (Census, 2015). To present a general characterization of the structure of this industry, about 91% of chemical manufacturing firms are identified as small businesses based on the SBA employee-based definitions for the applicable NAICS codes.
Table 2-2: Total Number of Parent Companies, Firms, and Employees in the Chemical Manufacturing Industry
                                   Industry
                                 (NAICS Code)
                                   Firm Size
                               Parent Companies
                                     Firms
                                   Employees

                                     Total
                                    Percent
                                     Total
                                    Percent
                                     Total
                                    Percent
Chemical Manufacturing (325)
Large
                                                                            876
                                                                             8%
                                                                          2,785
                                                                            21%
                                                                        461,858
                                                                            63%

Small
                                                                          9,575
                                                                            91%
                                                                         10,524
                                                                            79%
                                                                        266,135
                                                                            37%

Total
                                                                         10,451
                                                                           100%
                                                                         13,309
                                                                           100%
                                                                        727,993
                                                                           100%
Source: Census, 2015; SBA, 2016

Petroleum Refineries
Table 2-3 presents the number of parent companies, establishments, and employees in the petroleum refinery industry sector (NAICS code 324110). This industry comprises establishments primarily engaged in refining crude petroleum into refined petroleum. This industry sector is the primary resource for many petrochemical products and feedstock. A total of 68 parent companies, 152 establishments, and 59,388 employees are reported for the petroleum refineries industry sector, according to the 2012 U.S. Census data (Census, 2015). About 56% of petroleum refineries are classified as small businesses based on the SBA definition: firms with less than 1,500 employees.
Table 2-3: Total Number of Firms and Employees in Petroleum Refineries Industry Sectors
                                   Industry
                                 (NAICS Code)
                                   Firm Size
                               Parent Companies
                                     Firms
                                   Employees

                                     Total
                                    Percent
                                     Total
                                    Percent
                                     Total
                                    Percent
324110
Large
                                                                             30
                                                                            44%
                                                                            109
                                                                            72%
                                                                         57,605
                                                                            97%

Small
                                                                             38
                                                                            56%
                                                                             43
                                                                            28%
                                                                          1,783
                                                                             3%

Total
                                                                             68
                                                                           100%
                                                                            152
                                                                           100%
                                                                         59,388
                                                                           100%
Source: Census, 2015; SBA, 2016

Chemical and Petroleum Merchant Wholesalers
As shown in Table 2-4, 16,667 establishments reported chemical or petroleum merchant wholesaler sectors as their primary industry (NAICS codes 424690, 424710, and 424720) in the 2012 Census. The Other Chemical and Allied Products Merchant Wholesalers industry (NAICS code 424690) comprises establishments primarily engaged in the merchant wholesale distribution of chemicals and allied products (except agricultural and medicinal chemicals, paints and varnishes, fireworks, and plastics materials and basic forms and shapes). Firms reporting NAICS codes 424710 and 424720 include establishments with bulk liquid storage facilities, primarily engaged in the merchant wholesale distribution of crude petroleum, petroleum, and petroleum products, including liquefied petroleum. The 16,667 establishments within this sector belong to a total of 11,145 parent companies and employ a total of 221,170 employees (Census, 2015). About 94% of firms in this sector are classified as small businesses with less than 100 employees (for NAICS code 424690) and less than 200 employees (for NAICS codes 424710 and 424720).
Table 2-4: Total Number of Firms and Employees in the Chemical and Petroleum Merchant Wholesaler Industry Sectors
                             Industry (NAICS Code)
                                   Firm Size
                               Parent Companies
                                     Firms
                                   Employees

                                     Total
                                    Percent
                                     Total
                                    Percent
                                     Total
                                    Percent
424690,
424710,
424720
                                     Large
                                                                            675
                                                                             6%
                                                                          4,954
                                                                            30%
                                                                        108,059
                                                                            49%

                                     Small
                                                                         10,470
                                                                            94%
                                                                         11,723
                                                                            70%
                                                                        113,111
                                                                            51%

                                     Total
                                                                         11,145
                                                                           100%
                                                                         16,677
                                                                           100%
                                                                        221,170
                                                                           100%
Source:   Census, 2015; SBA, 2016

Costs
Overview
Under the Frank R. Lautenberg Chemical Safety for the 21st Century Act, for the first three years, EPA is granted authority to collect fees to offset the cost to implement TSCA Sections 4, 5, 6 and 14, up to the lesser of 25 percent of total TSCA administrative costs or $25 million. After three years, EPA can collect up to 25% of the TSCA administrative costs annually. Based on the estimated cost of and number of submissions under the new law, EPA estimated the total regulatory implementation costs during the first three years to be over $100 million. Thus, EPA has designed the fee structure to capture the statutory maximum of $25 million. Appendix A of this Economic Analysis presents a discussion of EPA's methodology for estimating Agency costs to administer TSCA Sections, 4, 5, 6, and 14.
Sections 3.1.1, 3.1.2, 3.1.3, and 3.1.4 outline the TSCA action categories considered in the proposed fee structure. Section 3.2 describes the methodology used to estimate the cost of the proposed rule. Section 3.3 presents the fee structure for the Proposed Option. This chapter also addresses the total fees to be collected under the Proposed Option in Section 3.4. Baseline costs are presented in Section 3.5. The incremental costs for the Proposed Option for general industry and small businesses are presented in Section 3.6. Section 3.7 presents similar discussions for the Alternative Option examined for this proposed rule.
TSCA Section 4 Actions
Under TSCA Section 4, there are three types of actions that for which EPA is proposing to require the payment of fees:
 Test Orders
 Test Rules
 Enforceable Consent Agreements (ECAs)
TSCA Section 5 Actions
Under TSCA Section 5, EPA proposes two fee categories that include the following submissions:
 Pre-manufacture Notice (PMNs) (including intermediates and consolidated cases), Microbial Commercial Activity Notice (MCAN) (including consolidated cases), and Significant New Use Notice (SNUN)
 Test Market Exemption Applications (TMEAs), TSCA Environmental Release Applications (TERAs), Low Volume Exemptions (LVEs), Low Release and Low Exposure Exemptions (LoREXs), Tier II, and Film Article exemptions
The cost of administering Notices of Commencement (NOCs) are incorporated in the fee for PMNs, MCANs, and SNUNs and thus not included as a separate fee category for those actions.
TSCA Section 6 Actions
Risk evaluations are the only activity under TSCA Section 6 that will be assessed a fee. There are two main types of risk evaluations: those initiated by EPA and those requested by manufacturers. For manufacturer-requested risk evaluations, two categories of fees may be collected: for Work Plan chemicals (i.e., those included on the TSCA Work Plan for Chemical Assessments: 2014 Update) and for chemicals not on the Work Plan. Fees from manufacturer-requested risk evaluations are not subject to the cap of the lesser of 25% of total agency costs or $25M.
TSCA Section 14
The costs of TSCA Section 14, which covers CBI, have been incorporated into the overall estimate of defrayable costs that are used to calculate the statutory caps on annual collections.  No fees are being proposed for TSCA Section 14 activities, thus, TSCA Section 14 activities are not represented as an individual category in this analysis.
Cost Estimation Method
Total cost for a regulatory option is calculated by determining (1) the number of submissions per fee category and (2) the fee amount for the category.
For the baseline, EPA used the average number of submissions per year from 2013 to 2016 for each Section 5 action as the estimate of the number of annual submissions per fee category for the next three years. Section 4 Test Orders are new under TSCA and the average number of such actions expected per year represents an EPA estimate. For the other Section 4 actions (Test Rules and Consent Agreements), EPA also estimated the expected average number of such actions per year. For Section 6, the amended TSCA requirements specify the number of risk evaluations EPA must have ongoing over the next three years. EPA uses the mandated number of risk evaluations to estimate the cost of the proposed rule for Section 6 activities. Under the recent amendments to TSCA, EPA assumes that Section 4 activities (test rules and ECAs) would change from the baseline, Section 5 activities would decrease as a result of higher fees and the new statutory requirement for affirmative determination, and Section 6 actions initiated would increase in accordance with statutory requirements.
Estimates of Number of Activities
EPA estimates the cost of this proposed rule by multiplying the proposed fees with the number of expected activities under full implementation for each Section of TSCA. For Section 4, Test Orders are a new activity stemming from the amendments to TSCA. For Test Rules and ECAs, EPA has not promulgated any test rules or entered into any enforceable consent agreements in the recent past and therefore has estimated the number of activities that will be achievable. However, EPA used data from the most recent High Production Volume (HPV) Section 4 actions to develop assumptions for estimates of the proportion of small firms impacted per action.
EPA based the estimates of future number of Section 5 submissions on the historical number of submissions for all Section 5 notices and exemptions. EPA further assumes that the number of each category of Section 5 activities will decline by approximately 10% as a result of higher fees on PMNs (including Intermediates), MCANs, and SNUNs, and new fees for exemptions.
Section 6 risk evaluations are a new activity under the amended TSCA. In the past, EPA developed risk assessments. This risk assessment process has been replaced by risk evaluations and EPA uses data from the 2012 TSCA Chemical Data Reporting for the first 10 chemicals identified for risk evaluations to estimate the expected average number of affected manufacturers per chemical and number of affected small businesses. For manufacturer-requested risk evaluations, EPA estimated the number of activities for Work Plan and non-Work Plan chemicals based on a historical average of 2014 and 2015 submissions (EPA 2017).
EPA estimates the cost of this proposed rule using the full implementation levels for Sections 4, 5, and 6 activities. Similarly, the full implementation level of manufacturer-requested risk evaluations is used in estimating the industry cost of these actions. As a result, the fee amounts and estimated number of submissions (on average) do not change from year to year and annual total costs are the same as annualized costs. Three-year discounted total costs are shown to represent the total cost of the proposed rule over the three-year period, as EPA is mandated to review and revise fees at the end of three years.
Proposed Option
This section presents the proposed fee structure identified by EPA for this proposed rule. EPA has also developed an alternative option, which is described in Sections 3.7.1. Each of the fee structures examined for this economic analysis recovers no more than the $25 million statutory maximum in total annual revenue (as the total annual Agency cost to administer the chemical review program at full implementation is estimated to be about $114 million), but differ in the distribution of burden among the TSCA Sections. Table 3-1 shows the Proposed Fee Structure for TSCA Sections 4, 5, and 6 and Table 3-2  presents the proposed fees for manufacturer-requested risk evaluations for the Proposed Option. Detail on EPA's cost to administer TSCA Sections 4, 5, 6, and 14 and the reasoning for the proposed fee structure are included in Appendix A.
Table 3-1: Fee Structure for Proposed Option
                            Submission Type/Action
                  EPA Annual Cost per Submission/ Action [a]
              Total Estimated Actions/year & Submissions [b]
                                 Proposed Fee
                        Proposed Small Business Fee [c]
Section 4

Test Order
                                                                      $368,985
                                                                             10
                                                                      $120,000
                                                                       $60,000
Test Rule
                                                                    $1,114,507
                                                                              1
                                                                      $370,000
                                                                      $185,000
ECA
                                                                      $860,725
                                                                              1
                                                                      $280,000
                                                                      $140,000
Section 5

PMNs (including intermediates)/MCAN/SNUN
                                                                       $59,524
                                                                            519
                                                                       $20,000
                                                                        $2,000
TME/TERA/LVE/LoREX/Tier II/Film Article
                                                                        $5,974
                                                                            575
                                                                        $2,000
                                                                          $500
Section 6

EPA-Initiated Risk Evaluation
                                                                    $3,928,893
                                                                           6.67
                                                                    $2,000,000
                                                                    $1,600,000
[a] Appendix A presents the estimation of EPA costs to Administer these activities.
[b] For the number of submissions per Section 5 action, EPA used the average number of annual submissions from 2013 to 2016 for each Section 5 action, reduced by 10% to account for expected manufacturer response to the increased fees. Section 4 Test Orders are new under TSCA and the average number of such actions expected per year represents an EPA target amount. For the other Section 4 actions (Test Rules and ECAs), EPA uses forecasts of the average number of such actions as an indicator of future activity. EPA assumes that Section 6 risk assessments initiated at full implantation will be seven per year due to statutory requirements and an estimated timeframe of three years to complete a risk evaluation.
[c] EPA expects industry to form consortia to divide fee payments to reach the proposed fee amount for each of the TSCA actions under Sections 4 and 6. While an exact discount is not specified, EPA will mandate that small businesses receive a discount in fee contributions. The small business fee will also be applied if the sole firm affected is an eligible small business.

Table 3-2: Fee Structure for Manufacturer-Requested Risk Evaluation under the Proposed Option
                            Submission Type/Action
                Total Estimated Actions/year & Submissions
                              Risk Evaluation Fee
Work Plan Chemical
                                                                           0.67
                                                                    $1,964,446
Non-Work Plan Chemical
                                                                           2.67
                                                                    $3,928,893

Total Cost of Proposed Option
The annualized total industry cost for the Proposed Option is shown in Table 3-3. Total fee collection from the Proposed Option is $24,770,542.  For the Proposed Option, Section 4 fees account for 6.2% of the total fee revenue, Section 5 fees for 40.0%, and Section 6 fees for 53.8%.
For small businesses, EPA assumes that 16% of Section 5 submissions will come from small businesses (based on the average percentage of small business firms that reported Section 5 activity between 2012 and 2016) that will pay discounted fees. Thus, the estimated number of small business submissions with a discounted fee is 83 for PMNs, SNUNs and MCANs, and 92 for exemptions. Total annualized costs for Section 5 fees paid by small businesses paying the discounted fees are estimated to be $212,000. Table 3-4 shows the estimated discounted three-year total costs for the Proposed Option using 3 percent and 7 percent discount rates, corresponding to the statutory timeframe allowed for EPA to review and revise the fees.
Annualized total industry costs for manufacturer-requested risk evaluations are listed in Table 3-5. For the Proposed Option, the annualized total industry cost for Work Plan chemical risk evaluations is estimated to be $1,964,446 and the annualized industry cost for non-Work Plan chemical risk evaluations is estimated to be $7,857,786. EPA also estimates the total industry cost of manufacturer-requested risk evaluations using 3 percent and 7 percent discount rates over a three-year period.
Table 3-3: Annual Total Cost of Proposed Option
                            Submission Type/Action
                   Total Estimated Actions & Submissions
                       Estimated Regular Fee Submissions
                                      (A)
                  General Industry Fee per Sub/Action     (B)
                Estimated Annual Fee Recovery        (C= A x B)
                Small Business Estimated Subs & Actions (D)
                 Small Business Fee per Subs & Actions (E)
       Small Business Estimated Annual Fee Recovery          (F = D x E)
           Total General Industry & Small Business Cost (C + F)
Section 4
Test Order
                                                                             10
                                                                             10
                                                                      $120,000
                                                                    $1,200,000

                                                                    $1,200,000
Test Rule [a]
                                                                              1
                                                                              1
                                                                      $370,000
                                                                      $246,703

                                                                      $246,703
ECA[a]
                                                                              1
                                                                              1
                                                                      $280,000
                                                                       $93,306

                                                                       $93,306
Section 5
PMNs (including intermediates)/MCAN/SNUN
                                                                            519
                                                                            436
                                                                       $20,000
                                                                    $8,719,200
                                                                             83
                                                                        $2,000
                                                                      $166,000
                                                                    $8,885,200
TME/TERA/LVE/LoREX/Tier II/Film Article
                                                                            575
                                                                            483
                                                                        $2,000
                                                                      $966,000
                                                                             92
                                                                          $500
                                                                       $46,000
                                                                    $1,012,000
Section 6
EPA-Initiated Risk Evaluation
                                                                           6.67
                                                                           6.67
                                                                    $2,000,000
                                                                   $13,333,333

                                                                   $13,333,333

TOTAL
                                                                          1,113
                                                                            938

                                                                    $24,558,542
                                                                            175

                                                                      $212,000
                                                                    $24,770,542
[a] Test Rules and ECAs are estimated to have one new action every 2 years. Thus, annualized costs are calculated accounting for the timing of the fee collected over a 3-year period.  EPA assumes that a Test Rule will be initiated in the first and third years of this analysis and one ECA will be initiated in the second year of this analysis.

Table 3-4: Discounted Total Costs of Proposed Option
                            Submission Type/Action
                                  Total Costs
                      3-Year Total Cost with 3% Discount
                       3-Year Total Cost with 7% Discount
Section 4

Test Order
                                                                    $1,200,000
                                                                    $3,496,164
                                                                    $3,369,622
Test Rule
                                                                      $246,703
                                                                      $718,760
                                                                      $692,745
ECA
                                                                       $93,306
                                                                      $271,845
                                                                      $262,005
Section 5

PMNs (including intermediates)/MCAN/SNUN
                                                                    $8,885,200
                                                                   $25,886,761
                                                                   $24,949,803
TME/TERA/LVE/LoREX/Tier II
                                                                    $1,012,000
                                                                    $2,948,431
                                                                    $2,841,714
Section 6

EPA-Initiated Risk Evaluation
                                                                   $13,333,333
                                                                   $38,846,263
                                                                   $37,440,242

TOTAL
                                                                   $24,770,542
                                                                   $72,168,224
                                                                   $69,556,132

Table 3-5: Total Costs of Proposed Option Manufacturer-Requested Risk Evaluations
                            Submission Type/Action
                       Total Estimated Risk Evaluations
                                 Proposed Fee
                                  Total Cost
                      3-Year Total Cost with 3% Discount
                       3-Year Total Cost with 7% Discount
Work Plan Chemical
                                                                              1
                                                                    $1,964,446
                                                                    $1,964,446
                                                                    $5,723,354
                                                                    $5,516,200
Non-Work Plan Chemical
                                                                              2
                                                                    $3,928,893
                                                                    $7,857,786
                                                                   $22,893,421
                                                                   $22,064,806
Total
                                                                              3

                                                                    $9,822,232
                                                                   $28,616,775
                                                                   $27,581,006

 Total Small Business Costs for Proposed Option
On average, EPA estimates that 1,476 firms will be affected by this proposed rule each year. Of the firms affected by the proposed rule each year, 307 (21%) are expected to be small businesses as defined by the SBA. EPA estimates that 16% (202) of Section 5 submissions will be from small businesses and 175 of these 202 submissions will be from small businesses with average annual sales less than $91 million in the three preceding years, so are eligible to pay discounted fees.
For Sections 4 and 6, discounted fees for eligible small businesses and fees for all other affected firms may differ over the three years, since the fee paid by each firm is dependent on the number of affected firms. The total fee collected per action has to sum to the specified fee per action. As a result, if multiple firms are subject to fees and the small business(es) eligible for a discount decide to forgo associating with a consortium, EPA will determine fees using the number and type of affected firms per action. The general fee paid by each affected firm will be related to the total number of affected firms per action (or chemical) and taking into account lower fees for eligible small businesses:

Where:
Ps = the portion of the applicable fee to be collected from a small business that qualifies for a discount.
Po = the portion of the applicable fee to be collected from each other affected business.
F = the total applicable fee to be collected per action.
Mt = the total number of affected firms for the chemical.
Ms = the number of affected small businesses for the chemical that qualify for a discount.

For Section 4 actions, based on the recent Section 4 actions for High Production Volume (HPV) chemicals, EPA estimates that each action involves an average of seven chemicals and that an average of four firms will be impacted per chemical. EPA further estimates that one of the four firms is a small business, none of which will be eligible for discounted fees. As a result, EPA estimates that 84 small businesses ((10 test orders + 1 test rule + 1 ECA) x 7 chemicals per Section 4 action x 1 small business impacted per chemical) will be involved in Section 4 actions each year. However, for Test Rules, EPA expects one action in the first and third years; and for ECAs, one action in the second year of the analysis. Since EPA does not expect any small businesses to be eligible for a discounted fee (based on the firms affected by the past HPV rules), the average fee per affected firm for Section 4 activities are estimated as followed: $4,286 ($120,000/28 firms) for Test Orders; $8,811 ($246,703/28 firms) for Test Rules; and $3,332 ($93,306/28 firms) for ECAs.
Finally, for Section 6 actions, based on the average number of manufacturers per the initial 10 chemicals identified by EPA for risk evaluations, EPA estimates that seven manufacturers will be affected by each Section 6 action. Of these seven manufacturers, three are expected to be small businesses; two of the small businesses will be eligible for discounted fees based on their average annual sales for the previous three years. With seven Section 6 actions expected to be initiated each year at full implementation levels, EPA estimates that 21 small businesses will be affected by Section 6 actions each year. The average fees per affected firm for a Section 6 activity are as follows: $228,571 (0.8 x $2,000,000/7 firms) for two eligible small businesses and $308,571 ([$2,000,000  -  2 x $228,571]/5 firms) for other affected firms (including small businesses not eligible for the small business discount).
For each of the three years to be covered by this proposed rule, EPA estimates that total fees paid by small businesses will account for about 25% of the $25 million maximum fees to be collected for Sections 4, 5 and 6 actions. Table 3-6 presents the estimated total small business annual costs for each action.

Table 3-6: Total Annual Small Business Costs for Proposed Option

                            Submission Type/Action
                  Small Business Firms paying Regular Fee (A)
                    Regular Fee per Subs & Actions
(B)
                Small Business Firms paying Discounted Fee (C)
                         Discounted Fee per Submission
                                      (D)
       Small Business Estimated Annual Fee Recovery
(E = A x B + C x D)
Section 4

Test Order
                                                                             70
                                                                        $4,286
                                                                              0
                                                                        $2,143
                                                                      $300,000
Test Rule [a]
                                                                              7
                                                                        $8,811
                                                                              0
                                                                        $4,405
                                                                        $61,676
ECA [a]
                                                                              7
                                                                        $3,332
                                                                              0
                                                                        $1,666
                                                                        $23,327
Section 5

PMN/MCAN/SNUN
                                                                             13
                                                                       $20,000
                                                                             83
                                                                        $2,000
                                                                      $426,000
TME/TERA/LVE/LoREX/Tier II/Film Article
                                                                             14
                                                                        $2,000
                                                                             92
                                                                          $500
                                                                       $74,000
Section 6

EPA-Initiated Risk Evaluation
                                                                              7
                                                                      $308,571
                                                                             14
                                                                       $228,571
                                                                     $5,360,000

TOTAL
                                                                            118

                                                                            189

                                                                     $6,245,002
Note:
Number may not add up due to rounding.

[a] Test Rules and ECAs are estimated to have one new action every 2 years. Thus, annualized costs are calculated accounting for the timing of the fee collected over a 3-year period.  EPA assumes that a Test Rule will be initiated in the first and third years of this analysis and one ECA will be initiated in the second year of this analysis.

Over the three-year period covered by this proposed rule, EPA estimates that the discounted total fees paid by affected small businesses will be about $7 million per year. Table 3-7 presents the estimated discounted total fees (with 3% and 7% discount rates) expected to be paid by small businesses affected by this proposed rule.
Table 3-7: Discounted Total Small Business Costs for Proposed Option
                            Submission Type/Action
                          Total Small Business Costs
                      3-Year Total Cost with 3% Discount
                      3-Year Total Cost with 7% Discount
Section 4

Test Order
                                                                      $300,000
                                                                      $874,041
                                                                      $842,405
Test Rule
                                                                       $61,676
                                                                      $179,690
                                                                      $173,186
ECA
                                                                       $23,327
                                                                       $67,961
                                                                       $65,501
Section 5

PMN/MCAN/SNUN
                                                                      $426,000
                                                                    $1,241,138
                                                                    $1,196,216
TME/TERA/LVE/LoREX/Tier II/Film Article
                                                                       $74,000
                                                                      $215,597
                                                                      $207,793
Section 6

EPA-Initiated Risk Evaluation
                                                                    $5,360,000
                                                                   $15,616,198
                                                                   $15,050,977

TOTAL
                                                                    $6,245,002
                                                                   $18,194,625
                                                                   $17,536,080

Baseline Costs
Before the 2016 amendment to TSCA, EPA was authorized to collect fees for only select TSCA Section 5 and Section 4 actions. However, EPA only ever collected fees for certain Section 5 activities. As mentioned in Section 1.2 of this document, under TSCA Section 6, there were formerly no fee costs for firms. Baseline costs for this proposed rule are based on the fees that EPA actually collected under TSCA before the 2016 amendment. Baseline costs do not include fees that EPA was authorized to collect but never implemented.
The submission fees for the various Section 5 actions before the 2016 amendment were limited to not be greater than the following amounts:
       PMNs and consolidated PMNs: $2,500
       Intermediate PMNs: $1,000
       SNUNs: $2,500.
       Exemption applications:  $2,500
       Exemption notices: $2,500
       MCANs and consolidated MCANs: $2,500
EPA does not collect fees for exemptions. As a result, EPA has not included the fees for exemptions in the baseline cost estimates.
Baseline Costs for Small Businesses
Firms determined to be small businesses based on EPA's 1988 definition of $40 million were charged fees capped by statute at $100 for any of the Section 5 submissions. For the purposes of TSCA Section 5 submissions, EPA defined small businesses eligible to pay a discounted fee as firms with average annual sales less than $40 million. This means that it was likely for some firms designated as small businesses by SBA standards not to be considered eligible small businesses to pay the discounted fee by the EPA definition and, therefore, be required to pay the general fee for Section 5 submissions. EPA estimated the number of small businesses that pay the general fee using the relationship between the number of firms in the affected NAICS codes that are small businesses by the EPA and SBA definitions. Using this procedure, EPA estimates that 14 small businesses currently pay the general fee for PMN/SNUN/MCAN submissions. Using historical averages of TSCA submissions, total baseline costs for all Sections are shown in Table 3-8. Under Section 5, total baseline annualized costs are estimated at $1,203,700, with small businesses comprising 0.76 percent of the total collection.

Table 3-8: Total Baseline Costs
                            Submission Type/Action
                   Total Estimated Actions & Submissions
                     Estimated Regular Fee Submissions (A)
                  General Industry Fee per Sub/Action     (B)
                Estimated Annual Fee Recovery        (C= A x B)
                Small Business Estimated Subs & Actions (D)
                 Small Business Fee per Subs & Actions (E)
       Small Business Estimated Annual Fee Recovery          (F = D x E)
           Total General Industry & Small Business Cost (C + F)
Section 4
Test Order [a]

                                                                            $0
                                                                            $0

                                                                            $0
                                                                            $0
                                                                            $0
Test Rule [b]

                                                                            $0
                                                                            $0

                                                                            $0
                                                                            $0
                                                                            $0
ECA [b]

                                                                            $0
                                                                            $0

                                                                            $0
                                                                            $0
                                                                            $0
Section 5
PMNs/MCAN/SNUN
                                                                            563
                                                                            473
                                                                        $2,500
                                                                    $1,182,500
                                                                             90
                                                                          $100
                                                                        $9,000
                                                                    $1,191,500
Intermediate PMNs
                                                                             14
                                                                             12
                                                                        $1,000
                                                                       $12,000
                                                                              2
                                                                          $100
                                                                          $200
                                                                       $12,200
TME/TERA/LVE/LoREX/Tier II
                                                                            639
                                                                            537
                                                                            $0
                                                                            $0
                                                                            102
                                                                            $0
                                                                            $0
                                                                            $0
5(h)(2) Exemptions [c]
                                                                              0
                                                                              0
                                                                        $2,500
                                                                            $0
                                                                              0
                                                                          $100
                                                                            $0
                                                                            $0
Film Articles [c]
                                                                              0
                                                                              0
                                                                        $2,500
                                                                            $0
                                                                              0
                                                                          $100
                                                                            $0
                                                                            $0
Section 6
EPA-Initiated Risk Evaluation [d]

                                                                            $0
                                                                            $0

                                                                            $0
                                                                            $0
                                                                            $0

TOTAL

                                                                   $1,194,500

                                                                        $9,200
                                                                   $1,203,700
a Test Orders are a new action under TSCA, as amended by the Frank R. Lautenberg Chemical Safety for the 21st Century Act.
[b] EPA has not proposed any Section 4 Test Rules or entered into ECAs in the recent past. Since no fees are currently required for these actions, the baseline industry cost for these actions is $0.
[c] EPA has historically not collected any fees associated with these exemptions.
[d] Risk Evaluations are new Sections 6 actions so the baseline cost for these Section 6 actions is $0.

Incremental Costs of Proposed Option
Compared to the baseline, the total annualized incremental cost of the Proposed Option is $23,567,642, with $1,540,009 from Section 4 fees, $8,694,300 from Section 5 fees, and $13,333,000 from Section 6 fees, as shown in Table 3-9. Total incremental costs have been discounted at a 3 percent and 7 percent rate over a 3-year period.
Table 3-9: Incremental Costs of Proposed Option
                            Submission Type/Action
                                Baseline Costs
                        Total Costs of Proposed Option
                     Incremental Costs of Proposed Option
                   3-Year Incremental Cost with 3% Discount
                   3-Year Incremental Cost with 7% Discount
Section 4

Test Order
                                                                            $0
                                                                    $1,200,000
                                                                    $1,200,000
                                                                    $3,496,164
                                                                    $3,369,622
Test Rule
                                                                            $0
                                                                      $246,703
                                                                      $246,703
                                                                      $718,760
                                                                      $692,745
ECA
                                                                            $0
                                                                       $93,306
                                                                       $93,306
                                                                      $271,845
                                                                      $262,005
Section 4 Total
                                                                            $0
                                                                    $1,540,009
                                                                    $1,540,009
                                                                    $4,486,769
                                                                    $4,324,373
Section 5

PMNs (including intermediates)/MCAN/SNUN
                                                                    $1,203,700
                                                                    $8,886,000
                                                                    $7,682,300
                                                                   $22,382,148
                                                                   $21,572,038
TME/TERA/LVE/LoREX/Tier II/Film Article
                                                                            $0
                                                                    $1,012,000
                                                                    $1,012,000
                                                                    $2,948,431
                                                                    $2,841,714
Section 5 Total
                                                                    $1,203,700
                                                                    $9,898,000
                                                                    $8,694,300
                                                                   $25,330,580
                                                                   $24,413,752
Section 6

EPA-Initiated Risk Evaluation
                                                                            $0
                                                                   $13,333,333
                                                                   $13,333,333
                                                                   $38,846,263
                                                                   $37,440,242
Total
                                                                    $1,203,700
                                                                   $24,771,342
                                                                   $23,567,642
                                                                   $68,663,611
                                                                   $66,178,367

The total annualized incremental cost of manufacturer-requested risk evaluations under the Proposed Option is $9,822,000, as shown in Table 3-10. Total annualized incremental costs for manufacturer-requested risk evaluations have also been discounted at 3 percent and 7 percent over a three-year period.
Table 3-10: Proposed Option Incremental Costs of Manufacturer-Requested Risk Evaluations
                            Submission Type/Action
                                Baseline Costs
                        Total Costs of Proposed Option
                     Incremental Costs of Proposed Option
                   3-Year Incremental Cost with 3% Discount
                   3-Year Incremental Cost with 7% Discount
Work Plan Chemical
                                                                            $0
                                                                    $1,964,446
                                                                    $1,964,446
                                                                    $5,723,354
                                                                    $5,516,200
Non-Work Plan Chemical
                                                                            $0
                                                                    $7,857,786
                                                                    $7,857,786
                                                                   $22,893,421
                                                                   $22,064,806
Total
                                                                             $0
                                                                    $9,822,232
                                                                    $9,822,232
                                                                   $28,616,775
                                                                   $27,581,006

Incremental costs per firm are shown in Table 3-11. To determine the number of firms per action under Section 4, EPA used historical averages of the number of affected manufacturers per chemical from the three recent Test Rules for HPV chemicals and assumed an average of 7 chemicals involved per Section 4 action and 4 affected firms per chemical. Section 5 activities involve one firm per action and Section 6 activities use the average number of affected manufacturers per chemical for the first ten chemicals for review under TSCA as amended by the Frank R. Lautenberg Chemical Safety for the 21[st] Century Act. It should be noted that EPA expects each firm to incur these costs once during the three-year period of the proposed rule; these are not annual recurring costs.
Table 3-11: Incremental Costs per Firm of Proposed Option
                            Submission Type/Action
                 Total Estimated Actions & Submissions (A)
                      Number of Firms per Action     (B)
               Total Number of Firms per Action      (C = A x B)
                       Incremental Cost of Proposed Fee
                                      (D)
                 Incremental Cost Per Firm           (E = D/C)
Section 4

Test Order
                                                                             10
                                                                             28
                                                                            280
                                                                    $1,200,000
                                                                        $4,286
Test Rule
                                                                              1
                                                                             28
                                                                             28
                                                                      $246,703
                                                                        $8,811
ECA
                                                                              1
                                                                             28
                                                                             28
                                                                       $93,306
                                                                        $3,332
Section 5

PMNs (including intermediates)/MCAN/SNUN
                                                                            519
                                                                              1
                                                                            519
                                                                    $7,682,300
                                                                       $14,802
TME/TERA/LVE/LoREX/Tier II/Film Article
                                                                            575
                                                                              1
                                                                            575
                                                                    $1,012,000
                                                                        $1,760
Section 6

EPA-Initiated Risk Evaluation
                                                                           7[a]
                                                                              7
                                                                             49
                                                                   $13,333,333
                                                                      $285,714
[a] Amount is rounded

Incremental Costs for Small Businesses
Compared to the baseline, the total annualized small business incremental cost for the Proposed Option is $6,235,802 as shown in Table 3-12. Total small business incremental costs have been discounted over a three-year period at 3 and 7 percent discount rates, respectively. EPA provides a more specific analysis of small business impacts in Section 5.4.

Table 3-12: Proposed Option Incremental Costs of Small Businesses
                            Submission Type/Action
                                Baseline Costs
                          Total Costs of Proposed Fee
                       Incremental Costs of Proposed Fee
                   3-Year Incremental Cost with 3% Discount
                   3-Year Incremental Cost with 7% Discount
Section 4

Test Orders
                                                                            $0
                                                                      $300,000
                                                                      $300,000
                                                                      $874,041
                                                                      $842,405
Test Rules
                                                                            $0
                                                                       $61,676
                                                                       $61,676
                                                                      $179,690
                                                                      $173,186
ECAs
                                                                            $0
                                                                       $23,327
                                                                       $23,327
                                                                       $67,961
                                                                       $65,501
Section 5

PMNs (including intermediates)/MCAN/SNUN
                                                                        $9,200
                                                                      $426,000
                                                                      $416,800
                                                                    $1,214,334
                                                                    $1,170,382
TME/TERA/LVE/LoREX/Tier II
                                                                            $0
                                                                       $74,000
                                                                       $74,000
                                                                      $215,597
                                                                      $207,793
Section 6

EPA-Initiated Risk Evaluations
                                                                            $0
                                                                    $5,360,000
                                                                     $5,360,000
                                                                   $15,616,198
                                                                   $15,050,977
Total
                                                                        $9,200
                                                                    $6,245,002
                                                                    $6,235,802
                                                                   $18,167,821
                                                                   $17,510,246

Alternative Option
This section describes the alternative fee structure examined by EPA and the corresponding total cost and incremental cost for this alternative option under the proposed rule. Section 3.7.1 presents the fee structure for the Alternative Option while Section 3.7.2 and 3.7.3 cover the total and incremental cost of the Alternative Option, respectively.
Alternative Option Fee Structure
Table 3-13 shows the fee structure under the Alternative Option. The Alternative Option fees for Section 4 and Section 5 activities are significantly lower than the Proposed Option. Section 5 small business fees remain the same as the Proposed Option as do the fees for manufacturer-requested risk evaluations. The difference lies in the fee for Section 6 EPA-initiated risk evaluations, which is increased to subsidize the fees for Section 4 and 5 actions.
Table 3-13: Alternative Option Fee Structure
                            Submission Type/Action
                  Total Annual Estimated Actions/Submissions
                                 Proposed Fee
                          Proposed Small Business Fee
Section 4

Test Order
                                                                             10
                                                                       $18,000
                                                                        $9,000
Test Rule
                                                                              1
                                                                       $56,000
                                                                       $28,000
ECA
                                                                              1
                                                                       $43,000
                                                                       $21,500
Section 5

PMNs (including intermediates)/MCAN/SNUN
                                                                            519
                                                                       $12,000
                                                                        $2,000
TME/TERA/LVE/LoREX/Tier II/Film Article
                                                                            575
                                                                        $1,000
                                                                          $500
Section 6

EPA-Initiated Risk Evaluation
                                                                              7
                                                                    $2,750,000
                                                                    $2,200,000

Alternative Option Total Costs
Total annualized costs for the Alternative Option sum to $24,492,001as shown in Table 3-14. For the Alternative Option, Section 5 fees account for 24.2 percent of total fee revenue and Section 6 fees make up 74.9 percent, compared to 40.0 percent and 53.8 percent, respectively, in the Proposed Option. Section 4 fees comprise a small share of the total fee revenue in both options, at 6.2 percent and 1.1 percent for the Proposed Option and the Alternative Option, respectively. In Table 3-15, 3-year total costs are discounted by 3 and 7 percent.
Table 3-14: Total Costs of the Alternative Option
                            Submission Type/Action
                   Total Estimated Actions & Submissions
                     Estimated Regular Fee Submissions (A)
                  General Industry Fee per Sub/Action     (B)
                Estimated Annual Fee Recovery        (C= A x B)
                Small Business Estimated Subs & Actions (D)
                 Small Business Fee per Subs & Actions (E)
       Small Business Estimated Annual Fee Recovery          (F = D x E)
           Total General Industry & Small Business Cost (C + F)
Section 4
Test Order
                                                                             10
                                                                             10
                                                                       $18,000
                                                                      $180,000

                                                                      $180,000
Test Rule [a]
                                                                              1
                                                                              1
                                                                       $56,000
                                                                       $37,339

                                                                       $37,339
ECA [a]
                                                                              1
                                                                              1
                                                                       $43,000
                                                                       $14,329

                                                                       $14,329
Section 5
PMNs (including intermediates)/MCAN/SNUN
                                                                            519
                                                                            436
                                                                       $12,000
                                                                    $5,232,000
                                                                             83
                                                                        $2,000
                                                                      $166,000
                                                                    $5,398,000
TME/TERA/LVE/LoREX/Tier II/Film Article
                                                                            575
                                                                            483
                                                                        $1,000
                                                                      $483,000
                                                                             92
                                                                          $500
                                                                       $46,000
                                                                      $529,000
Section 6
EPA-Initiated Risk Evaluation
                                                                          7 [b]
                                                                          7 [b]
                                                                    $2,750,000
                                                                    $18,333,333

                                                                  $18,333,333

TOTAL