82_FR_57053 82 FR 56824 - TSCA Reporting and Recordkeeping Requirements; Standards for Small Manufacturers and Processors; Final Determination

82 FR 56824 - TSCA Reporting and Recordkeeping Requirements; Standards for Small Manufacturers and Processors; Final Determination

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 82, Issue 229 (November 30, 2017)

Page Range56824-56826
FR Document2017-25822

On December 15, 2016, EPA issued a notice in the Federal Register requesting public comment on whether revision to the current size standards for small manufacturers and processors, which are used in connection with reporting regulations under the Toxic Substances Control Act (TSCA) section 8(a), is warranted. This document describes EPA's final determination that revision to the current size standards is warranted.

Federal Register, Volume 82 Issue 229 (Thursday, November 30, 2017)
[Federal Register Volume 82, Number 229 (Thursday, November 30, 2017)]
[Notices]
[Pages 56824-56826]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-25822]


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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OPPT-2016-0675; FRL-9968-41]


TSCA Reporting and Recordkeeping Requirements; Standards for 
Small Manufacturers and Processors; Final Determination

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: On December 15, 2016, EPA issued a notice in the Federal 
Register requesting public comment on whether revision to the current 
size standards for small manufacturers and processors, which are used 
in connection with reporting regulations under the Toxic Substances 
Control Act (TSCA) section 8(a), is warranted. This document describes 
EPA's final determination that revision to the current size standards 
is warranted.

FOR FURTHER INFORMATION CONTACT: For technical information contact: 
Lynne Blake-Hedges, Chemistry, Economics, and Sustainable Strategies 
Division (7406M), Office of Pollution Prevention and Toxics, 
Environmental Protection Agency, 1200 Pennsylvania Ave. NW., 
Washington, DC 20460-0001; telephone number: (202) 564-8807; email 
address: [email protected].
    For general information contact: The TSCA-Hotline, ABVI-Goodwill, 
422 South Clinton Ave., Rochester, NY 14620; telephone number: (202) 
554-1404; email address: [email protected].

SUPPLEMENTARY INFORMATION: 

I. General Information

A. Does this action apply to me?

    You may be potentially affected by this action if you manufacture 
or process chemical substances or mixtures. The following list of North 
American Industrial Classification System (NAICS) codes is not intended 
to be exhaustive, but rather provides a guide to help readers determine 
whether this document applies to them. Potentially affected entities 
may include:
     Basic Chemical Manufacturers (NAICS code 3251);
     Resin, Synthetic Rubber, and Artificial Synthetic Fibers 
and Filament Manufacturers (NAICS code 3252);
     Pesticide, Fertilizer, and Other Agricultural Chemical 
Manufacturers (NAICS code 3253);
     Paint, Coating, and Adhesive Manufacturers (NAICS code 
3255);
     Other Chemical Product and Preparation Manufacturers 
(NAICS code 3259); and
     Petroleum Refineries (NAICS code 32411).

B. How can I get copies of this document and other related information?

    The docket for this action, identified by docket identification 
(ID) number EPA-HQ-OPPT-2016-0675, is available at http://www.regulations.gov or at the Office of Pollution Prevention and Toxics 
Docket (OPPT Docket), Environmental Protection Agency Docket Center 
(EPA/DC), West William Jefferson Clinton Bldg., Rm. 3334, 1301 
Constitution Ave. NW., Washington, DC. The Public Reading Room is open 
from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal 
holidays. The telephone number for the Public Reading Room is (202) 
566-1744, and the telephone number for the OPPT Docket is (202) 566-
0280. Please review the visitor instructions and additional information 
about the docket available at http://www.epa.gov/dockets.

II. What action is the agency taking?

    On June 22, 2016, President Obama signed into law the Frank R. 
Lautenberg Chemical Safety for the 21st Century Act which amends the 
Toxic Substance Control Act (TSCA), the nation's primary chemicals 
management law. A summary of the new law is available at https://www.epa.gov/assessing-and-managing-chemicals-under-tsca/frank-r-lautenberg-chemical-safety-21st-century-act. This particular action 
involves revised TSCA section 8(a)(3)(C), which requires EPA, after 
consultation with the Administrator of the Small Business 
Administration, to review the adequacy of the standards for determining 
which manufacturers and processors qualify as small manufacturers and 
processors for purposes of TSCA sections 8(a)(1) and 8(a)(3). (Note 
that under TSCA section 3(9), manufacture includes import.) TSCA 
furthermore requires that (after consulting with the Small Business 
Administration and providing public notice and an opportunity for 
comment) EPA determine whether revision of the standards is warranted. 
For the reasons described below, EPA determines that revision of the 
standards is warranted.
    In the 1980s, EPA issued standards that are used in identifying 
which businesses qualify as small manufacturers and processors for 
purposes of the reporting and recordkeeping rules issued under TSCA 
section 8(a). Under TSCA section 8(a)(1), small manufacturers and 
processors are generally exempt from section 8(a) reporting 
requirements, except in limited cases set forth in TSCA section 
8(a)(3).
    In 1982, EPA finalized standards for determining which 
manufacturers of a reportable chemical substance qualify as small 
manufacturers for purposes of the section 8(a) Preliminary Assessment 
Information Reporting (PAIR) rules, codified in 40 CFR part 712, 
subpart B. The small manufacturer standard for PAIR rules is found at 
40 CFR 712.25(c).
    In 1988, EPA established general small manufacturer standards for 
use in other rules issued under TSCA section 8(a) (40 CFR 704.3). For 
example, these are the standards that now apply to the Chemical Data 
Reporting (CDR) rule (40 CFR part 711). The general standards are 
somewhat different from the earlier standards that are codified for use 
in the PAIR rules. The general small manufacturer standards are as 
follows:
    Small manufacturer or importer means a manufacturer or importer 
that meets either of the following standards:
    1. First standard. A manufacturer or importer of a substance is 
small if its total annual sales, when combined with those of its parent 
company (if any), are less than $40 million. However, if the annual 
production or importation volume of a particular substance at any 
individual site owned or controlled by the manufacturer or importer is 
greater than 45,400 kilograms (100,000 pounds), the manufacturer or 
importer shall not qualify as small for purposes of reporting on the 
production or importation of that substance at that site, unless the 
manufacturer or importer qualifies as small under standard (2) of this 
definition.
    2. Second standard. A manufacturer or importer of a substance is 
small if its

[[Page 56825]]

total annual sales, when combined with those of its parent company (if 
any), are less than $4 million, regardless of the quantity of 
substances produced or imported by that manufacturer or importer.
    3. Inflation index. EPA shall make use of the Producer Price Index 
for Chemicals and Allied Products, as compiled by the U.S. Bureau of 
Labor Statistics, for purposes of determining the need to adjust the 
total annual sales values and for determining new sales values when 
adjustments are made. EPA may adjust the total annual sales values 
whenever the Agency deems it necessary to do so, provided that the 
Producer Price Index for Chemicals and Allied Products has changed more 
than 20 percent since either the most recent previous change in sales 
values or the date of promulgation of this rule, whichever is later. 
EPA shall provide Federal Register notification when changing the total 
annual sales values.
    Pursuant to authority under section 8(a)(3)(B), certain section 
8(a) rules codify slight variations of the general small manufacturer 
standards at 40 CFR 704.3. (See, e.g., 40 CFR 704.45). Other rules 
issued under TSCA section 8(a) establish (for use in a particular rule) 
analogous standards for small processors (See, e.g., 40 CFR 704.33).
    As an initial step in evaluating whether a change in these current 
size standards are warranted, EPA reviewed the change in the Producer 
Price Index (PPI) for Chemicals and Allied Products between 1988 (the 
year the general size standards at 40 CFR 704.3 were last revised) and 
2015 (the most recent year of PPI data available) (Ref. 1). EPA found 
that the PPI has changed by 129 percent, far exceeding the 20 percent 
inflation index specified as a level above which EPA may adjust annual 
sales levels in the current standard if deemed necessary. This change 
to the PPI is pertinent for both the $4 million annual sales standard 
and the $40 million threshold used in the combined sales and production 
standard. Furthermore, among the more than 500 revenue-based size 
standards set by the Small Business Administration (SBA), the lowest is 
$5.5 million, and more than 75% of those standards are in excess of 
$7.5 million. Some revenue-based standards are as high as $38.5 
million. Thus, EPA's existing $4 million annual sales standard is an 
outlier at the low end of this range. Along the same lines, the sales-
only size standard EPA recently adopted for the TSCA section 8(a) 
nanoscale reporting rule is $11 million, significantly larger than $4 
million. Because of the magnitude of the increase in the PPI since the 
last revision of the size standards and because the current annual 
sales standard is comparatively low given current revenue-based size 
standards developed by SBA, EPA preliminarily determined that a 
revision to currently codified size standards is warranted.
    On December 15, 2016, EPA published its preliminary determination 
and requested public comment on the adequacy of the current standards 
and whether revision of the standards is warranted. In addition, EPA 
consulted with the SBA and received feedback on the consultation from 
SBA on April 5, 2017. SBA's consultation feedback recommended that EPA 
``apply a comprehensive approach that not only evaluates inflation but 
also examines other important factors, such as the characteristics of 
firms and industries associated with manufacturing or importation of 
chemical substances and percentage of firms impacted by the rules, to 
determine whether or not a revision to the current size standards is 
warranted.''
    EPA reopened the public comment period on May 9, 2017 to give the 
public an opportunity to review SBA's consultation feedback to inform 
their comments on EPA's preliminary determination. On May 9, 2017, 
EPA's preliminary finding and its basis remained the same as in the 
December 15, 2016 publication in the Federal Register.
    EPA's decision not to consider a more comprehensive range of 
factors as recommended in SBA's consultation feedback before taking the 
current action is appropriate because the current action is limited to 
determining whether ``revision of the standards'' is warranted or not. 
See TSCA section 8(a)(3)(C)(ii). (The set of size standards covered by 
this determination are those that EPA has issued under TSCA section 
8(a)(3)(B), pertinent to information collection under TSCA section 
8(a).) EPA found that the PPI index changed by a percentage far 
exceeding the 20 percent inflation index. EPA had previously specified 
20 percent as a level above which EPA may adjust annual sales levels in 
the current standard if deemed necessary. This change in the PPI index 
(along with the observation that the current annual sales standard is 
comparatively low given current revenue-based size standards developed 
by SBA) is a sufficient basis to determine that some revision of the 
standards is warranted, even if there are other factors that could have 
supported the same conclusion. EPA notes that the SBA's Office of 
Advocacy substantively agreed with EPA's preliminary determination 
(that a revision to the current size standards is warranted) even 
though it requested EPA to consider additional factors in reaching that 
conclusion.
    EPA received a number of comments on its preliminary determination. 
Most commenters agreed with EPA's preliminary determination that an 
update is warranted. SBA submitted comments that argued that EPA should 
have considered more than the second (i.e., the sales-only) standard 
when making a final determination, such as whether the standard is 
structured appropriately. This comment is similar to the SBA's 
recommendation in its consultation feedback that EPA evaluate a broader 
set of factors related to firm and industry characteristics and 
percentage of firms impacted by section 8 rules to determine whether or 
not a revision to the standards is necessary. However, as previously 
noted, the change in the PPI index (along with the comparative analysis 
of the current annual sales standard) is a sufficient basis to 
determine (even if other factors could have supported the same 
conclusion) that some revision of the standards for small manufacturers 
and processors is warranted, for both the sales-only and the sales plus 
production standards.
    Two commenters questioned whether a revision to the standards is 
warranted. One of these commenters argued that the standards should not 
be changed, based on the serious nature of unspecified chemicals of 
concern. The second commenter argued that a revision to the standards 
that would result in classifying more manufacturers or processors as 
small is not warranted because states need to have complete information 
about chemical use, including volume, location, and toxicity, in order 
to effectively respond to emergencies and to prioritize resources to 
address concerns among various chemicals.
    EPA does not agree that either argument justifies a determination 
that revision of the standards is not warranted. The first commenter 
did not explain how chemical risks would be exacerbated by updating the 
status quo of small manufacturer standards. With regard to the second 
comment, the outcome of the rulemaking (i.e., whether it would result 
in exempting more firms from reporting than under the current 
standards) cannot be known until the rulemaking is complete. Although 
revising the size standards for inflation could be presumed to increase 
the number of exempt firms, the second commenter did not explain how 
such increase would necessarily translate into a loss of information 
necessary for

[[Page 56826]]

states to effectively respond to emergencies and prioritize resources. 
With respect to the need of states to have complete information about 
the toxicity of particular chemical substances, EPA notes that the size 
standards at issue in this action only relate to the collection of 
information under TSCA section 8(a). The primary information collection 
under TSCA section 8(a) is the Chemical Data Reporting rule, 40 CFR 
part 711, which collects exposure-related data rather than hazard data. 
In any event, although the exemption of small businesses from reporting 
necessarily reduces the amount of chemical information EPA collects, 
Congress nonetheless decided to provide for an exemption and directed 
EPA to determine the need for revision. As explained above, EPA 
believes the currently promulgated standards are clearly outdated with 
respect to the current understanding of what qualifies a business as 
small. EPA has not yet proposed any revisions to the size standards; 
any changes would be established through future notice and comment 
rulemaking. At that time, public comments regarding the merits of any 
proposed revisions would be sought by EPA and subsequently addressed.
    Several commenters also provided their opinions on how the 
standards should be specifically revised or explained why specific 
parts of the standards ought to be maintained. For example, SBA 
commented that, when developing standards, EPA should consider a broad 
range of factors that may potentially be relevant in the context of 
TSCA reporting. These factors include barriers to entry, start-up and 
expansion costs, capital versus labor intensiveness of industries, 
average firm size (employment and revenue), growth trends, and 
technological factors. Multiple commenters agreed with SBA's 
recommendations. Additionally, one commenter argued that the combined 
sales and production standard should be revised by lowering its 
production threshold and not changing its $40 million sales threshold. 
However, the scope of this action is limited to a general determination 
as to whether some revision to the TSCA small manufacturer and 
processor standards is warranted. More particular issues (i.e., 
relating to how the standards ought to be revised) will be addressed in 
a subsequent rulemaking and are beyond the scope of this action. 
Although EPA has no obligation to respond to the suggestions for 
specific revisions submitted as comments on this action, EPA intends to 
consider these comments as it develops its rulemaking proposal. Members 
of the public who wish to maintain previously submitted comments or who 
wish to submit new comments may do so following the publication of 
EPA's proposal in the Federal Register. EPA will address such comments 
prior to finalizing any changes to the TSCA size standards.
    EPA's preliminary determination that a revision to size standards 
was warranted did not include the size standard for nanoscale materials 
found at 40 CFR 704.20. See 81 FR 90842 (determination was only with 
respect to currently codified size standards as of December 15, 2016). 
EPA promulgated the size standards at 40 CFR 704.20 on January 12, 
2017, along with the other provisions of EPA's reporting and 
recordkeeping rule for nanoscale materials. Concurrent with 
promulgating the size standards at 40 CFR 704.20, EPA indicated that it 
would consider the adequacy of the size standards at 40 CFR 704.20 in 
the course of finalizing this determination under TSCA section 
8(a)(3)(C). 82 FR 3650. At this point, EPA has not made a determination 
as to whether the size standards in the nanotechnology rule warrant 
revision. EPA will further evaluate the need for any revision as part 
of the rulemaking to revise the standards identified in this final 
determination.
    Based on EPA's preliminary determination, a review of the comments 
on the preliminary determination, and the feedback from consultation 
from SBA, EPA is now making a final determination under TSCA section 
8(a)(3)(C)(ii) that revision to the TSCA section 8(a) size standards 
for manufacturers and processors is warranted.

III. References

    The following is a listing of the documents that are specifically 
referenced in this document. The docket includes these documents and 
other information considered by EPA, including documents that are 
referenced within the documents that are included in the docket, even 
if the referenced document is not physically located in the docket. For 
assistance in locating these other documents, please consult the 
technical person listed under FOR FURTHER INFORMATION CONTACT.
    U.S. Bureau of Labor Statistics. ``Producer Price Index, Series 
WPU06, Chemicals and Allied Products, 1933-2015''. Retrieved November 
14, 2016 from http://data.bls.gov/cgi-bin/srgatet.

    Authority:  15 U.S.C. 2607(a).

    Dated: November 21, 2017.
Charlotte Bertrand,
Acting Principal Deputy Assistant Administrator, Office of Chemical 
Safety and Pollution Prevention.
[FR Doc. 2017-25822 Filed 11-29-17; 8:45 am]
 BILLING CODE 6560-50-P



                                               56824                     Federal Register / Vol. 82, No. 229 / Thursday, November 30, 2017 / Notices

                                               2017, effective July 13, 2017 to July 13,               I. General Information                    review the adequacy of the standards for
                                               2018.                                                                                             determining which manufacturers and
                                                                                                       A. Does this action apply to me?
                                                                                                                                                 processors qualify as small
                                               Centers for Disease Control and                            You may be potentially affected by     manufacturers and processors for
                                               Prevention                                              this action if you manufacture or         purposes of TSCA sections 8(a)(1) and
                                                 Public health exemptions: EPA                         process chemical substances or            8(a)(3). (Note that under TSCA section
                                               authorized use of pyriproxyfen (a                       mixtures. The following list of North     3(9), manufacture includes import.)
                                               larvicide) and Beauveria bassiana (a                    American Industrial Classification        TSCA furthermore requires that (after
                                               fungus pathogenic to adult insects) to                  System (NAICS) codes is not intended      consulting with the Small Business
                                               help control Aedes species of                           to be exhaustive, but rather provides a   Administration and providing public
                                               mosquitoes, vectors of the zika virus, in               guide to help readers determine whether notice and an opportunity for comment)
                                               Puerto Rico. Effective May 12, 2017 to                  this document applies to them.            EPA determine whether revision of the
                                               May 12, 2018.                                           Potentially affected entities may         standards is warranted. For the reasons
                                                                                                       include:                                  described below, EPA determines that
                                                  Authority: 7 U.S.C. 136 et seq.                         • Basic Chemical Manufacturers         revision of the standards is warranted.
                                                 Dated: October 18, 2017.                              (NAICS code 3251);                           In the 1980s, EPA issued standards
                                               Michael Goodis,                                            • Resin, Synthetic Rubber, and         that are used in identifying which
                                               Director, Registration Division, Office of
                                                                                                       Artificial Synthetic Fibers and Filament businesses qualify as small
                                               Pesticide Programs.                                     Manufacturers (NAICS code 3252);          manufacturers and processors for
                                                                                                          • Pesticide, Fertilizer, and Other     purposes of the reporting and
                                               [FR Doc. 2017–25831 Filed 11–29–17; 8:45 am]
                                                                                                       Agricultural Chemical Manufacturers       recordkeeping rules issued under TSCA
                                               BILLING CODE 6560–50–P
                                                                                                       (NAICS code 3253);                        section 8(a). Under TSCA section
                                                                                                          • Paint, Coating, and Adhesive         8(a)(1), small manufacturers and
                                                                                                       Manufacturers (NAICS code 3255);          processors are generally exempt from
                                               ENVIRONMENTAL PROTECTION
                                                                                                          • Other Chemical Product and           section 8(a) reporting requirements,
                                               AGENCY
                                                                                                       Preparation Manufacturers (NAICS code except in limited cases set forth in
                                                                                                       3259); and                                TSCA section 8(a)(3).
                                               [EPA–HQ–OPPT–2016–0675; FRL–9968–41]                       • Petroleum Refineries (NAICS code        In 1982, EPA finalized standards for
                                                                                                       32411).                                   determining which manufacturers of a
                                               TSCA Reporting and Recordkeeping
                                               Requirements; Standards for Small                       B. How can I get copies of this document reportable chemical substance qualify as
                                                                                                       and other related information?            small manufacturers for purposes of the
                                               Manufacturers and Processors; Final                                                               section 8(a) Preliminary Assessment
                                               Determination                                              The docket for this action, identified Information Reporting (PAIR) rules,
                                                                                                       by docket identification (ID) number      codified in 40 CFR part 712, subpart B.
                                               AGENCY: Environmental Protection                        EPA–HQ–OPPT–2016–0675, is available The small manufacturer standard for
                                               Agency (EPA).                                           at http://www.regulations.gov or at the   PAIR rules is found at 40 CFR 712.25(c).
                                               ACTION:   Notice.                                       Office of Pollution Prevention and           In 1988, EPA established general
                                                                                                       Toxics Docket (OPPT Docket),              small manufacturer standards for use in
                                               SUMMARY:   On December 15, 2016, EPA                    Environmental Protection Agency           other rules issued under TSCA section
                                               issued a notice in the Federal Register                 Docket Center (EPA/DC), West William      8(a) (40 CFR 704.3). For example, these
                                               requesting public comment on whether                    Jefferson Clinton Bldg., Rm. 3334, 1301   are the standards that now apply to the
                                               revision to the current size standards for              Constitution Ave. NW., Washington,        Chemical Data Reporting (CDR) rule (40
                                               small manufacturers and processors,                     DC. The Public Reading Room is open       CFR part 711). The general standards are
                                               which are used in connection with                       from 8:30 a.m. to 4:30 p.m., Monday       somewhat different from the earlier
                                               reporting regulations under the Toxic                   through Friday, excluding legal           standards that are codified for use in the
                                               Substances Control Act (TSCA) section                   holidays. The telephone number for the PAIR rules. The general small
                                               8(a), is warranted. This document                       Public Reading Room is (202) 566–1744, manufacturer standards are as follows:
                                               describes EPA’s final determination that                and the telephone number for the OPPT        Small manufacturer or importer
                                               revision to the current size standards is               Docket is (202) 566–0280. Please review means a manufacturer or importer that
                                               warranted.                                              the visitor instructions and additional   meets either of the following standards:
                                                                                                       information about the docket available       1. First standard. A manufacturer or
                                               FOR FURTHER INFORMATION CONTACT:    For                 at http://www.epa.gov/dockets.            importer of a substance is small if its
                                               technical information contact: Lynne                                                              total annual sales, when combined with
                                               Blake-Hedges, Chemistry, Economics,                     II. What action is the agency taking?     those of its parent company (if any), are
                                               and Sustainable Strategies Division                        On June 22, 2016, President Obama      less than $40 million. However, if the
                                               (7406M), Office of Pollution Prevention                 signed into law the Frank R. Lautenberg annual production or importation
                                               and Toxics, Environmental Protection                    Chemical Safety for the 21st Century      volume of a particular substance at any
                                               Agency, 1200 Pennsylvania Ave. NW.,                     Act which amends the Toxic Substance      individual site owned or controlled by
                                               Washington, DC 20460–0001; telephone                    Control Act (TSCA), the nation’s          the manufacturer or importer is greater
                                               number: (202) 564–8807; email address:                  primary chemicals management law. A       than 45,400 kilograms (100,000
                                               blake-hedges.lynne@epa.gov.                             summary of the new law is available at    pounds), the manufacturer or importer
                                                 For general information contact: The                  https://www.epa.gov/assessing-and-        shall not qualify as small for purposes
daltland on DSKBBV9HB2PROD with NOTICES




                                               TSCA-Hotline, ABVI-Goodwill, 422                        managing-chemicals-under-tsca/frank-r- of reporting on the production or
                                               South Clinton Ave., Rochester, NY                       lautenberg-chemical-safety-21st-          importation of that substance at that
                                               14620; telephone number: (202) 554–                     century-act. This particular action       site, unless the manufacturer or
                                               1404; email address: TSCA-Hotline@                      involves revised TSCA section             importer qualifies as small under
                                               epa.gov.                                                8(a)(3)(C), which requires EPA, after     standard (2) of this definition.
                                                                                                       consultation with the Administrator of       2. Second standard. A manufacturer
                                               SUPPLEMENTARY INFORMATION:                              the Small Business Administration, to     or importer of a substance is small if its


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                                                                         Federal Register / Vol. 82, No. 229 / Thursday, November 30, 2017 / Notices                                          56825

                                               total annual sales, when combined with                  revision of the size standards and                    current size standards is warranted)
                                               those of its parent company (if any), are               because the current annual sales                      even though it requested EPA to
                                               less than $4 million, regardless of the                 standard is comparatively low given                   consider additional factors in reaching
                                               quantity of substances produced or                      current revenue-based size standards                  that conclusion.
                                               imported by that manufacturer or                        developed by SBA, EPA preliminarily                      EPA received a number of comments
                                               importer.                                               determined that a revision to currently               on its preliminary determination. Most
                                                  3. Inflation index. EPA shall make use               codified size standards is warranted.                 commenters agreed with EPA’s
                                               of the Producer Price Index for                           On December 15, 2016, EPA                           preliminary determination that an
                                               Chemicals and Allied Products, as                       published its preliminary determination               update is warranted. SBA submitted
                                               compiled by the U.S. Bureau of Labor                    and requested public comment on the                   comments that argued that EPA should
                                               Statistics, for purposes of determining                 adequacy of the current standards and                 have considered more than the second
                                               the need to adjust the total annual sales               whether revision of the standards is                  (i.e., the sales-only) standard when
                                               values and for determining new sales                    warranted. In addition, EPA consulted                 making a final determination, such as
                                               values when adjustments are made. EPA                   with the SBA and received feedback on                 whether the standard is structured
                                               may adjust the total annual sales values                the consultation from SBA on April 5,                 appropriately. This comment is similar
                                               whenever the Agency deems it                            2017. SBA’s consultation feedback                     to the SBA’s recommendation in its
                                               necessary to do so, provided that the                   recommended that EPA ‘‘apply a                        consultation feedback that EPA evaluate
                                               Producer Price Index for Chemicals and                  comprehensive approach that not only                  a broader set of factors related to firm
                                               Allied Products has changed more than                   evaluates inflation but also examines                 and industry characteristics and
                                               20 percent since either the most recent                 other important factors, such as the                  percentage of firms impacted by section
                                               previous change in sales values or the                  characteristics of firms and industries               8 rules to determine whether or not a
                                               date of promulgation of this rule,                      associated with manufacturing or                      revision to the standards is necessary.
                                               whichever is later. EPA shall provide                   importation of chemical substances and                However, as previously noted, the
                                               Federal Register notification when                      percentage of firms impacted by the                   change in the PPI index (along with the
                                               changing the total annual sales values.                 rules, to determine whether or not a                  comparative analysis of the current
                                                  Pursuant to authority under section                  revision to the current size standards is             annual sales standard) is a sufficient
                                               8(a)(3)(B), certain section 8(a) rules                  warranted.’’                                          basis to determine (even if other factors
                                               codify slight variations of the general                   EPA reopened the public comment                     could have supported the same
                                               small manufacturer standards at 40 CFR                  period on May 9, 2017 to give the public              conclusion) that some revision of the
                                               704.3. (See, e.g., 40 CFR 704.45). Other                an opportunity to review SBA’s                        standards for small manufacturers and
                                               rules issued under TSCA section 8(a)                    consultation feedback to inform their                 processors is warranted, for both the
                                               establish (for use in a particular rule)                comments on EPA’s preliminary                         sales-only and the sales plus production
                                               analogous standards for small                           determination. On May 9, 2017, EPA’s                  standards.
                                               processors (See, e.g., 40 CFR 704.33).                  preliminary finding and its basis                        Two commenters questioned whether
                                                  As an initial step in evaluating                     remained the same as in the December                  a revision to the standards is warranted.
                                               whether a change in these current size                  15, 2016 publication in the Federal                   One of these commenters argued that
                                               standards are warranted, EPA reviewed                   Register.                                             the standards should not be changed,
                                               the change in the Producer Price Index                    EPA’s decision not to consider a more               based on the serious nature of
                                               (PPI) for Chemicals and Allied Products                 comprehensive range of factors as                     unspecified chemicals of concern. The
                                               between 1988 (the year the general size                 recommended in SBA’s consultation                     second commenter argued that a
                                               standards at 40 CFR 704.3 were last                     feedback before taking the current                    revision to the standards that would
                                               revised) and 2015 (the most recent year                 action is appropriate because the                     result in classifying more manufacturers
                                               of PPI data available) (Ref. 1). EPA                    current action is limited to determining              or processors as small is not warranted
                                               found that the PPI has changed by 129                   whether ‘‘revision of the standards’’ is              because states need to have complete
                                               percent, far exceeding the 20 percent                   warranted or not. See TSCA section                    information about chemical use,
                                               inflation index specified as a level                    8(a)(3)(C)(ii). (The set of size standards            including volume, location, and
                                               above which EPA may adjust annual                       covered by this determination are those               toxicity, in order to effectively respond
                                               sales levels in the current standard if                 that EPA has issued under TSCA section                to emergencies and to prioritize
                                               deemed necessary. This change to the                    8(a)(3)(B), pertinent to information                  resources to address concerns among
                                               PPI is pertinent for both the $4 million                collection under TSCA section 8(a).)                  various chemicals.
                                               annual sales standard and the $40                       EPA found that the PPI index changed                     EPA does not agree that either
                                               million threshold used in the combined                  by a percentage far exceeding the 20                  argument justifies a determination that
                                               sales and production standard.                          percent inflation index. EPA had                      revision of the standards is not
                                               Furthermore, among the more than 500                    previously specified 20 percent as a                  warranted. The first commenter did not
                                               revenue-based size standards set by the                 level above which EPA may adjust                      explain how chemical risks would be
                                               Small Business Administration (SBA),                    annual sales levels in the current                    exacerbated by updating the status quo
                                               the lowest is $5.5 million, and more                    standard if deemed necessary. This                    of small manufacturer standards. With
                                               than 75% of those standards are in                      change in the PPI index (along with the               regard to the second comment, the
                                               excess of $7.5 million. Some revenue-                   observation that the current annual sales             outcome of the rulemaking (i.e., whether
                                               based standards are as high as $38.5                    standard is comparatively low given                   it would result in exempting more firms
                                               million. Thus, EPA’s existing $4 million                current revenue-based size standards                  from reporting than under the current
                                               annual sales standard is an outlier at the              developed by SBA) is a sufficient basis               standards) cannot be known until the
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                                               low end of this range. Along the same                   to determine that some revision of the                rulemaking is complete. Although
                                               lines, the sales-only size standard EPA                 standards is warranted, even if there are             revising the size standards for inflation
                                               recently adopted for the TSCA section                   other factors that could have supported               could be presumed to increase the
                                               8(a) nanoscale reporting rule is $11                    the same conclusion. EPA notes that the               number of exempt firms, the second
                                               million, significantly larger than $4                   SBA’s Office of Advocacy substantively                commenter did not explain how such
                                               million. Because of the magnitude of the                agreed with EPA’s preliminary                         increase would necessarily translate
                                               increase in the PPI since the last                      determination (that a revision to the                 into a loss of information necessary for


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                                               56826                     Federal Register / Vol. 82, No. 229 / Thursday, November 30, 2017 / Notices

                                               states to effectively respond to                        proposal. Members of the public who                     Dated: November 21, 2017.
                                               emergencies and prioritize resources.                   wish to maintain previously submitted                 Charlotte Bertrand,
                                               With respect to the need of states to                   comments or who wish to submit new                    Acting Principal Deputy Assistant
                                               have complete information about the                     comments may do so following the                      Administrator, Office of Chemical Safety and
                                               toxicity of particular chemical                         publication of EPA’s proposal in the                  Pollution Prevention.
                                               substances, EPA notes that the size                     Federal Register. EPA will address such               [FR Doc. 2017–25822 Filed 11–29–17; 8:45 am]
                                               standards at issue in this action only                  comments prior to finalizing any                      BILLING CODE 6560–50–P
                                               relate to the collection of information                 changes to the TSCA size standards.
                                               under TSCA section 8(a). The primary                       EPA’s preliminary determination that
                                               information collection under TSCA                       a revision to size standards was
                                               section 8(a) is the Chemical Data                       warranted did not include the size                    FEDERAL ACCOUNTING STANDARDS
                                               Reporting rule, 40 CFR part 711, which                  standard for nanoscale materials found                ADVISORY BOARD
                                               collects exposure-related data rather                   at 40 CFR 704.20. See 81 FR 90842
                                               than hazard data. In any event, although                                                                      Notice of Request for Comment on the
                                                                                                       (determination was only with respect to               Annual Report for Fiscal Year 2017 and
                                               the exemption of small businesses from                  currently codified size standards as of
                                               reporting necessarily reduces the                                                                             Three-Year Plan
                                                                                                       December 15, 2016). EPA promulgated
                                               amount of chemical information EPA
                                                                                                       the size standards at 40 CFR 704.20 on                AGENCY: Federal Accounting Standards
                                               collects, Congress nonetheless decided
                                                                                                       January 12, 2017, along with the other                Advisory Board.
                                               to provide for an exemption and
                                                                                                       provisions of EPA’s reporting and
                                               directed EPA to determine the need for                                                                        ACTION:   Notice.
                                                                                                       recordkeeping rule for nanoscale
                                               revision. As explained above, EPA
                                                                                                       materials. Concurrent with
                                               believes the currently promulgated                                                                               Pursuant to 31 U.S.C. 3511(d), the
                                                                                                       promulgating the size standards at 40
                                               standards are clearly outdated with                                                                           Federal Advisory Committee Act (Pub.
                                                                                                       CFR 704.20, EPA indicated that it would
                                               respect to the current understanding of                                                                       L. 92–463), as amended, and the FASAB
                                                                                                       consider the adequacy of the size
                                               what qualifies a business as small. EPA                                                                       Rules of Procedure, as amended in
                                                                                                       standards at 40 CFR 704.20 in the
                                               has not yet proposed any revisions to                                                                         October 2010, notice is hereby given
                                               the size standards; any changes would                   course of finalizing this determination
                                                                                                                                                             that the Federal Accounting Standards
                                               be established through future notice and                under TSCA section 8(a)(3)(C). 82 FR
                                                                                                                                                             Advisory Board (FASAB) has issued its
                                               comment rulemaking. At that time,                       3650. At this point, EPA has not made
                                                                                                                                                             Annual Report for Fiscal Year 2017 and
                                               public comments regarding the merits of                 a determination as to whether the size
                                                                                                                                                             Three-Year Plan.
                                               any proposed revisions would be sought                  standards in the nanotechnology rule
                                                                                                       warrant revision. EPA will further                       The Annual Report for Fiscal Year
                                               by EPA and subsequently addressed.                                                                            2017 and Three-Year Plan is available
                                                                                                       evaluate the need for any revision as
                                                  Several commenters also provided                     part of the rulemaking to revise the                  on the FASAB Web site at http://
                                               their opinions on how the standards                     standards identified in this final                    www.fasab.gov/our-annual-reports/.
                                               should be specifically revised or                       determination.                                        Copies can be obtained by contacting
                                               explained why specific parts of the                                                                           FASAB at (202) 512–7350.
                                               standards ought to be maintained. For                      Based on EPA’s preliminary
                                                                                                       determination, a review of the                           Respondents are encouraged to
                                               example, SBA commented that, when                                                                             comment on the content of the annual
                                               developing standards, EPA should                        comments on the preliminary
                                                                                                       determination, and the feedback from                  report and FASAB’s project priorities
                                               consider a broad range of factors that                                                                        for the next three years. Written
                                               may potentially be relevant in the                      consultation from SBA, EPA is now
                                                                                                       making a final determination under                    comments are requested by January 29,
                                               context of TSCA reporting. These factors                                                                      2018, and should be sent to fasab@
                                               include barriers to entry, start-up and                 TSCA section 8(a)(3)(C)(ii) that revision
                                                                                                       to the TSCA section 8(a) size standards               fasab.gov or Wendy M. Payne, Executive
                                               expansion costs, capital versus labor                                                                         Director, Federal Accounting Standards
                                               intensiveness of industries, average firm               for manufacturers and processors is
                                                                                                       warranted.                                            Advisory Board, 441 G Street NW., Suite
                                               size (employment and revenue), growth                                                                         6814, Mailstop 6H19, Washington, DC
                                               trends, and technological factors.                      III. References                                       20548.
                                               Multiple commenters agreed with SBA’s
                                               recommendations. Additionally, one                                                                               The Board is also conducting an
                                                                                                          The following is a listing of the
                                               commenter argued that the combined                                                                            online survey to help in assessing the
                                                                                                       documents that are specifically
                                               sales and production standard should be                                                                       most important priorities for the future.
                                                                                                       referenced in this document. The docket
                                               revised by lowering its production                                                                            The annual planning survey is available
                                                                                                       includes these documents and other
                                               threshold and not changing its $40                                                                            at https://tell.gao.gov/fasabplanning
                                                                                                       information considered by EPA,
                                               million sales threshold. However, the                                                                         2017/. The survey closes on November
                                                                                                       including documents that are referenced
                                               scope of this action is limited to a                                                                          30, 2017.
                                                                                                       within the documents that are included
                                               general determination as to whether                     in the docket, even if the referenced                 FOR FURTHER INFORMATION CONTACT:   Ms.
                                               some revision to the TSCA small                         document is not physically located in                 Wendy M. Payne, Executive Director,
                                               manufacturer and processor standards is                 the docket. For assistance in locating                441 G Street NW., Mailstop 6H19,
                                               warranted. More particular issues (i.e.,                these other documents, please consult                 Washington, DC 20548, or call (202)
                                               relating to how the standards ought to                  the technical person listed under FOR                 512–7350.
                                               be revised) will be addressed in a                      FURTHER INFORMATION CONTACT.
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                                                                                                                                                              Authority: Federal Advisory Committee
                                               subsequent rulemaking and are beyond                                                                          Act, Pub. L. 92–463.
                                               the scope of this action. Although EPA                     U.S. Bureau of Labor Statistics.
                                               has no obligation to respond to the                     ‘‘Producer Price Index, Series WPU06,                   Dated: November 15, 2017.
                                               suggestions for specific revisions                      Chemicals and Allied Products, 1933–                  Wendy M. Payne,
                                               submitted as comments on this action,                   2015’’. Retrieved November 14, 2016                   Executive Director.
                                               EPA intends to consider these                           from http://data.bls.gov/cgi-bin/srgatet.             [FR Doc. 2017–25819 Filed 11–29–17; 8:45 am]
                                               comments as it develops its rulemaking                    Authority: 15 U.S.C. 2607(a).                       BILLING CODE 1610–02–P




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Document Created: 2017-11-30 00:35:09
Document Modified: 2017-11-30 00:35:09
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
ContactFor technical information contact: Lynne Blake-Hedges, Chemistry, Economics, and Sustainable Strategies Division (7406M), Office of Pollution Prevention and Toxics, Environmental Protection Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460-0001; telephone number: (202) 564-8807; email
FR Citation82 FR 56824 

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