On March 29, 2016, the U.S. Environmental Protection Agency (EPA) published the Partial Exemption of Certain Chemical Substances from Reporting Additional Chemical Data final rule in the Federal Register. This final rule amends the list of chemical substances that are partially exempt from additional reporting requirements under the Chemical Data Reporting (CDR) rule. The rule applies to six biodiesel chemicals that are very similar to petroleum based biodiesel chemicals that are already on the exempt list. Per EPA's estimate, companies that utilize this reporting exemption will save 65.63 hours, or almost 1.5 weeks of staff time, per report. Companies that produce more than one of the listed chemicals or have more than one reporting site will save even more.

This EPA rulemaking amends the list of chemicals for which the more time-consuming and onerous downstream processing and use information must be reported under the CDR Form U, Part III. In October 2014, BRAG submitted a petition to EPA outlining the reasons why the six biodiesel chemicals should be afforded reduced reporting requirements under the CDR. 

EPA concurred with BRAG's view and issued a direct final rule to add the listed chemicals to the partial reporting list in January 2015. Unfortunately, due to one comment that EPA deemed adverse, EPA was required to with withdraw the direct final rule and re-propose it as a standard rulemaking under the Administrative Procedures Act, a significantly more time- and resource-consuming approach. BRAG expressed its members' concerns that the rulemaking process might not be completed in time to add the biodiesel chemicals to the partial reporting exemption list prior to the 2016 reporting cycle. EPA staff worked diligently to issue the proposed rulemaking in July 2015 and issued the final rule in March 2016 -- lightning-fast action within a regulatory context.

The six biodiesel chemicals added to the list of chemicals eligible for partial CDR exemptions are:

• Fatty acids, C14-18 and C16-18 unsaturated, methyl esters (Chemical Abstracts Service (CAS) No. 67762-26-9);

• Fatty acids, C16-18 and C-18 unsaturated, methyl esters (CAS No. 67762-38-3);

• Fatty acids, canola oil, methyl esters (CAS No.129828-16-6);

• Fatty acids, corn oil, methyl esters (CAS No. 515152-40-6);

• Fatty acids, tallow, methyl esters (CAS No. 61788-61-2); and

• Soybean oil, methyl esters (CAS No. 67784-80-9).

The reporting window for the 2016 CDR is June 1, 2016, to September 30, 2016. CDR reporting includes detailed information on volumes of chemicals produced, imported, used on site, and exported. It also requires information on amounts and functions for downstream uses in industrial, commercial, and consumer applications. Renewable fuel and biobased chemical companies that have successfully moved from research and development to commercialization will be required to respond to the CDR rule under the Toxic Substances Control Act (TSCA). All chemicals not otherwise regulated as a pesticide, food, food additive, drug, cosmetic, or nuclear material, are subject to the rules and requirements under TSCA. Companies that do not comply are subject to enforcement actions and significant fines of up to $37,500 per violation, per day.

Companies that produce or import the six biodiesel chemicals do not have to report the following information elements for the exempted chemicals:

• Top ten combinations of industrial process, industrial sector and industrial functions;

• Production or importation volumes associated with each combination;

• Number of industrial sites using the chemical within each combination;

• Number of workers potentially exposed within each combination;

• Top ten consumer and/or commercial downstream applications;

• Indication of whether reported consumer or commercial categories result in products intended for children;

• Production or importation volumes associated with each reported consumer or commercial category;

• Maximum concentration within each reported consumer or commercial category; and

• Number of workers potentially exposed with each reported consumer or commercial category.