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United States: EPA Adopts Amendments to Definition of “Parent Company” for Reporting Purposes to the Toxic Relief Inventory
- #Environmental Protection Agency (EPA)
- #EPA
On October 21, 2022 in the Federal Register, the Environmental Protection Agency (EPA) adopted amendments to the definition of “parent company.” The codified rule for parent company for Toxic Relief Inventory (TRI) purposes clarifies existing guidance and reporting for facilities owned by corporate subsidiaries, multiple owners, foreign entities or publicly owned companies. In addition, EPA is requiring facilities to report their highest-level foreign parent company beginning Reporting Year 2023, for forms due by July 1, 2024 and subsequent reporting years. The amendments serve several purposes: 1) reporting parent companies more efficiently identifies whether any reportable off-site transfers of TRI chemicals are sent to a facility also owned by that same parent company thereby removing inaccurately reporting off-site transfers of TRI chemicals sent to a facility also owned by that same parent company; 2) EPA is also requiring the use of a standardized naming convention for parent companies, including identical punctuation and capitalization styles or using common abbreviations; and 3) EPA finalized the requirement for TRI facilities to submit their highest-level foreign parent company, where applicable. These rules are in effect December 20, 2022.
The definition of “parent company” as of December 31 of the reporting year are ownership scenarios where:
- “A facility is owned by a single company, which is not owned by another company;
- A facility is owned by a single company, which is owned by another company;
- A facility is owned by multiple companies, including companies that are themselves owned by other entities;
- A facility is owned by a joint venture or cooperative;
- A facility is owned, at least in part, by a foreign company; and
- A facility is owned by the Federal Government, or a state, tribal, or municipal government.”
Source:
Parent Company Definition for Toxics Release Inventory (TRI) Reporting, EPA, Federal Register, 87 FR 63950, October 21, 2022 https://www.federalregister.gov/documents/2022/10/21/2022-22833/parent-company-definition-for-toxics-release-inventory-tri-reporting