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Answers to the Most Frequently Asked Questions about Chemical Data Reporting

Though questions about the EPA’s Chemical Data Reporting (CDR) requirements are always swirling around the internet, we’ve noticed an uptick in interest in the last few months. That comes as no surprise, since the CDR deadline is approaching on November 30.

Staying on top of compliance requirements and regulatory changes is no small feat. And even if you plan to work with a third-party to facilitate the reporting process, it’s helpful to familiarize yourself with the basics.

To help you out, we’ve gathered some of the most frequently asked questions about CDR on Google, Twitter, and other platforms and compiled the answers here for you. The contents of this article are intended to convey general information — not provide any legal advice or opinions. As always, you should seek a lawyer for advice on specific issues. Without further ado, here is your CDR FAQ!

What is CDR?

The Chemical Data Reporting requirement (CDR) is a rule that requires companies that manufacture or import chemicals to report certain information about these substances to the EPA.

According to the EPA, there are over 70,000 chemicals in commerce. Identifying these chemicals and assessing potential risks to human health and the environment poses a considerable challenge. Thus the Toxic Substances Control Act (TSCA) was born in 1976.

The TSCA gives the EPA the authority to gather information about and regulate the manufacture, import, use, and disposal of various chemicals. As part of the TSCA, the CDR rule requires companies that make or import chemicals listed on the TSCA Chemical Substance Inventory list to report information about the types, quantities, and uses of these chemicals every four years.

Why does the EPA collect this information?

As we mentioned above, data reported under CDR provides the EPA with up-to-date information about the types and amounts of chemicals produced and imported into the U.S. The EPA uses this information to regulate the distribution and use of industrial chemicals.

Information collected through CDR helps the agency identify and evaluate toxic chemicals. It helps them protect the public and the environment from chemical hazards. And, it helps the agency prioritize enforcement initiatives. Without CDR, it would be nearly impossible for the EPA to keep tabs on all the various chemicals in use today.

Who is required to report?

Not every company is required to file a CDR report. Generally, the requirement applies to companies that manufacture chemicals for commercial purposes. That includes paints and coatings, adhesives and sealants, cleaners, and fertilizer, to name a few. It also includes companies that import these chemicals into the U.S.

Whether or not you are required to report also depends on the type and amounts of chemicals. If you produced or imported a substance on the TSCA Inventory in a quantity greater than 25,000 pounds at one site in any of the covered calendar years, you are required to file a CDR report. However, the threshold for more toxic substances — like those on the Chemicals of Concern list — drops to 2,500 pounds. There are also exemptions for certain chemicals, such as those already regulated by the FDA.

The requirements for reporting can get confusing when there are multiple businesses involved — for example, when a chemical importer arranges a delivery to a buyer but doesn’t take physical possession of the imported chemical. If you’re unsure whether your business is subject to the reporting requirements, it’s best to consult an expert who can offer guidance on your specific situation.

What information is required?

The CDR rule requires manufacturers (and importers) to submit basic exposure-related information about the distribution, processing, and use of chemicals listed on the TSCA Inventory. This includes:

  • Chemical substance name and ID code
  • Production volume
  • Processing and use information
  • Commercial and consumer use information
  • Exposure
  • Confidentiality claim substantiation

Submitters are required to report information that is “known to or reasonably ascertainable by” the company. But what does that mean, exactly? Under the previous standard, submitters were only required to assemble information that was known to managers or supervisors. This only offered a narrow view of the information a manufacturer might have in its possession. The new standard expands the scope of the review to cover all information in the company’s possession. That includes information from references like MSDSs, as well as data contained in the company’s files such as marketing studies, sales reports, and customer surveys. It also includes information outside the organization, such as identification numbers from the Chemical Abstracts Service (CAS).

This information is submitted on Form U. You will need to file a separate Form U for each site you are responsible for. A sample of form U is shown below:

 

Form U Sample

Sample Form U for 2020 (EPA.gov)

When is the deadline?

Information about chemicals on the TSCA Inventory list is collected every four years.

The current submission period is from June 1 to November 30, 2020. Companies are required to submit full information about manufacturing, processing, and use from 2019, as well as production volume information for the covered calendar years 2016, 2017, 2018, and 2019.

How do I submit my report?

Now that you know what information is required and when it is due, you might be wondering how to go about submitting your CDR report. The EPA has established a secure website — called the Central Data Exchange (CDX) — for companies to submit their information electronically.

You might already be familiar with the CDX if you are required to submit information for e-TSCA, e-PMN, or TRI. If so, you can add CDR to your existing registration. Otherwise, you will need to first register on CDX. Then you’ll be able to access the e-CDRweb reporting tool to complete and submit Form U.

The EPA does provide instructions for how to use the e-CDRweb tool, but many submitters note that it’s not the most intuitive system. In other words, you should plan to start the process early and enlist help if needed.

What is the penalty for noncompliance?

Despite their best efforts, companies often uncover non-compliance in the course of preparing information for CDR reporting. It may be that you failed to report a chemical during the last reporting period. Or, it might be that you didn’t account for a chemical byproduct that must be reported.

These violations are almost always unintentional. However, the penalty for such missteps can be severe: up to $37,500 per day in civil penalties, and $50,000 per day in criminal fines. It’s worth noting that those penalties are per chemical — so these amounts can add up quickly.

If a violation is discovered, companies have the option to self-disclose under the EPA’s Audit Policy. Self-disclosure offers some relief from steep penalties, but the window of time companies can take advantage of this incentive is short: only 21 days from the time the non-compliance is discovered. For example, let’s say your company acquires another smaller company. You discover that the last owners failed to report a chemical for CDR. You would have just three short weeks to notify the EPA of the omission.

What's new in 2020?

Earlier this year, the EPA amended the CDR rule. The changes were intended to simplify reporting and improve the quality of chemical data collected.

Notably, the revised rule updates the definition of a small manufacturer — information which is used to determine reporting and record-keeping obligations. Other changes include:

  • streamlining the reporting process by allowing manufacturers to use the existing international codes developed by the OECD
  • requiring submitters to provide upfront substantiation for confidentiality claims
  • adding exemptions for specific types of by-products

A full summary of the changes can be found here.

Final thoughts

The requirements for reporting chemical data are complicated, and the penalties for non-compliance are severe. That’s why it’s so important to have a good record-keeping system in place from the start.

If you produce or import chemicals, it’s not a bad idea to use chemical management software. These tools are designed specifically to help you track receipt, inventory, and use of various chemicals. They can even automate volume tracking and alert you when volumes reach threshold levels. This makes maintaining compliance with the TSCA and other regulations much easier. Not to mention, preparing for the CDR deadline will be much easier when you don’t have to dig through your files every four years.

More information is available here: Basic Information about Chemical Data Reporting | US EPA

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