Aug 12, 2010

EPA Proposal Addresses Abuse of Chemical Trade Secret Claims

After the Environmental Working Group exposed a study claiming that chemical manufacturers overuse the trade secret protections provided in current law, the EPA is taking action. Proposed changes to the Inventory Update Reporting (IUR) rules will require manufacturers to substantiate their trade secret claims up front, with their update report. EPA touts the proposed changes as part of their "Actions to help keep children, families safer".

The proposed rule returns the reporting requirement to once every four years, and reduces the threshold requiring use reporting to 25,000 pounds from 300,000 pounds. "Enhanced reporting on the production and use of chemicals will help give the American people greater access to information on the chemicals to which their children and families are exposed every day," said Steve Owens, EPA's assistant administrator for the Office of Chemical Safety and Pollution Prevention. "The proposal being announced today will allow the agency to more effectively and expeditiously identify and address potential chemical risks and improve the information available to the public on chemicals most commonly used in commerce."

Most importantly, the proposal tightens up the controls on trade secret claims. Currently, manufacturers can claim anything trade secret, at will. In case of an audit, the manufacturer must prove that their business interests would be harmed by disclosure of the information, and show that they have taken measures in other areas of their business to protect the information. But it is a not-so-well-kept secret that the USA has the loosest trade secrecy laws of any country that has serious chemical control legislation.

Read the full story from a hugger