Major, sweeping TSCA reform first in 40 years

July 6th, 2016 by Dakota Software Staff Industry News

The Toxic Substances Control Act exists to regulate the introduction of new chemicals and compounds into business processes. The act served in that role for some time after it was first introduced in 1976, giving the Environmental Protection Agency authority over a wide range of chemical use in commercial and industrial applications. However, there were no major or substantial changes to the regulations and framework of the TSCA during its first 40 years of existence - until President Barack Obama recently signed legislation that gives the EPA more control over new substances. Additionally, the new legislation allows the EPA to investigate and change the regulations for chemicals previously introduced.

The rare bipartisan cooperation involved in the passing of the legislation is one of the most notable aspects of the event. That element of cooperation extends beyond federal lawmakers and includes a number of groups that usually have opposing positions on the issue. Environmentalists and organizations representing chemical producers and businesses using substances that may face increased regulations and restrictions both supported the plan.

A clearer view of regulations or more complications?
More regulations for existing chemicals and the potential for stricter rules means businesses in a wide variety of industries must be prepared to make changes to environmental compliance processes. ABC News cited just a few of the many substances used in industrial processes - formaldehyde and styrene - regulated by the revamped TSCA and noted additional restrictions on use of those chemicals and others are part of that document.

The uncertainty that comes along with the major TSCA changes is another consideration businesses must make. While President Obama already signed the new elements of the act into law, it will take time for the EPA to use the regulatory processes outlined in the act and make final determinations about the fitness of given substances for use and if those chemicals will be restricted in some way or completely banned from various applications.

The Chicago Tribune outlined the length of the review process, noting that the two elements of the action will take 12 years in some instances. That includes approximately seven years for the environmental regulator to complete the evaluation of chemicals and a five-year compliance period for businesses once new rules, if any, for potentially harmful chemicals are set. Depending on how the agency is viewed and interacts with the next presidential administration in office, the recently approved changes may themselves be altered. If there are legal or judicial challenges in the future, additional delays in the process may arise.

While the long timeline for changes to chemical rules and the five-year grace period for making changes are good news for businesses, the potential for uncertainty through actions like legal challenges to the new TSCA late in the compliance process means additional confusion. The potential for the TSCA to change in the future, possibly during reviews of existing and new chemicals, introduces significant complications into the compliance process.

One benefit of the revised TSCA is the creation of a single set of federal standards to replace a variety of state-level rules. This is a more direct approach to regulation, although the TSCA itself involves plenty of complicated processes. Businesses using toxic or hazardous substances as part of regular operations need to understand the changes that already occurred in terms of the act as well as the potential for additional alterations in the future. Using EHS software solutions allows companies to remain compliant with changing regulations and gain more confidence in their ability to manage regulatory obligations.