Toxic Substance Control Act Fees Raise Unexpected Questions
Builders, developers, trades and retailers could be considered an importer of High Priority Substances under the Toxic Substances Control Act (TSCA).
The Environmental Protection Agency (EPA) published a notice in the Federal Register on Jan. 27, which lists manufacturers (including importers) of 20 chemical substances that have been designated as a High Priority Substance for risk evaluation under the TSCA.
The TSCA requires that manufacturers, including importers, pay fees to cover a portion of the risk evaluation cost if they manufacture or import these High Priority Substances.
While builders, developers, trades and retailers are not considered chemical manufacturers under the rule, they could be considered an importer under the rule if they import products containing High Priority Substances directly. Product importers are also required to comply with the fees rule and must self-identify under the rule as well.
The lists of manufacturers and importers subject to the TSCA Fees Rule is broken out by chemicals undergoing risk evaluation. Certain chemicals — such as formaldehyde, which is one of the 20 designated a High Priority Substance — may be found in imported building products. The presence of the chemical could trigger responsibilities for builders and remodelers under the rule.
Because of the implementation issues raised by affected stakeholders regarding the list of manufacturers and importers subject to the TSCA, EPA is extending its comment period for an additional 60 days until May 27, 2020.
Although most NAHB builder and developer members are unlikely to be impacted by the TSCA Fees Rule, it is important to note that it is still possible for builders and remodelers to be considered importers based on their activity. If a covered product is purchased directly from a foreign source (manufacturer or distributor), then you may be required to self-identify. Associate members who are retailers, distributors or wholesalers of potentially covered products may be the most likely to be affected.
Additionally, as EPA continues to work through implementation issues with the final rule, more guidance will be coming on reporting requirements and expectations during this period. This is also a time when businesses can certify as a "small business concern" and receive a reduced fee, or to make certain other certifications and avoid fee obligations.
For more information on implementation of the TSCA Fees Rule, contact Tamra Spielvogel at 800-368-5242 x8327.
Latest from NAHBNow
May 23, 2025
Volatile Spring Selling Season ContinuesSales of newly built, single-family homes in April increased 10.9% to a 743,000 seasonally adjusted annual rate from a downwardly revised March number, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales in April was up 3.3% compared to a year earlier.
May 22, 2025
NAHB Members Cite Impact of Tariff Uncertainty on Home BuildingTariff uncertainty from the Trump administration continues to impact home builders across the country, as builders prepare for potential price hikes and supply chain issues. NAHB members have been sharing the impact that these tariffs are having with media outlets across the United States.
Latest Economic News
May 22, 2025
Existing Home Sales Fall in AprilDespite the brief retreat in mortgage rates and increased supply, existing home sales dropped to 7-month low in April, according to the National Association of Realtors (NAR). This unexpected decline suggests buyers’ activity continues to be constrained by economic uncertainty and ongoing affordability challenges even with improved market conditions.
May 22, 2025
Income Growth Helps Mute Existing Affordability ConstraintsDespite solid income gains and lower home prices, Americans still continue to face major housing affordability challenges, according to the latest data from the National Association of Home Builders (NAHB)/Wells Fargo Cost of Housing Index (CHI).
May 21, 2025
Gains for Multifamily Missing Middle over Last YearThe missing middle construction sector includes development of medium-density housing, such as townhouses, duplexes and other small multifamily properties.