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TSCA Audits Under EPA's Audit and New Owner Policies (PSX 2023 On Demand)

The Environmental Protection Agency's Audit Policy for environmental laws, including the Toxic Substances Control Act (TSCA), provides incentives for industry to conduct voluntary audits of a facility's compliance management system or past operations, disclose findings of potential noncompliance to EPA, and complete necessary corrective actions, among other things. Eligible disclosures receive significant relief from penalties. Similarly, EPA's New Owner Policy encourages new owners to evaluate and self-disclose compliance issues identified at recently acquired facilities. Product-focused due diligence activities may commence in a limited manner during the pre-acquisition phase and continue as audits in the post-acquisition phase. In contrast, companies planning to divest a business may be well served by conducting a pre-divestiture audit to evaluate the compliance status of their business. In any of these situations, product stewards and regulatory affairs personnel are required to work with internal or external auditors or in-house or outside counsel. Using illustrative examples, this session will explore how product stewards can collaborate with auditors and counsel to ensure high efficiencies and best outcomes, as well as better understand the legal and regulatory risks associated with audits.