Document ID: EPA-HQ-OPP-2008-0480-0013
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2010-11-22T05:00Z

Registration Service Fees

Guidance on How to Request Small Business Fee Waivers 

Resources

  HYPERLINK "http://www.epa.gov/pesticides/fees/index.htm"  About
Registration Service Fees  

Questions and Answers on: 

  HYPERLINK
"http://www.epa.gov/pesticides/fees/questions/pira21day-screen.htm"  21
Day Screening Worksheet  

  HYPERLINK
"http://www.epa.gov/pesticides/fees/questions/actions_not_covered.htm" 
Actions Not Covered by Registration Service Fees  

  HYPERLINK
"http://www.epa.gov/pesticides/fees/questions/fee_inquiries.html"  Fee
Inquiries  

  HYPERLINK
"http://www.epa.gov/pesticides/fees/questions/biopesticides.htm" 
Biopesticides  

  HYPERLINK
"http://www.epa.gov/pesticides/fees/questions/fee_payments.htm"  Fee
Payments  

  HYPERLINK "http://www.epa.gov/pesticides/fees/questions/waivers.htm" 
Fee Waivers  

  HYPERLINK "http://www.epa.gov/pesticides/fees/questions/fundmanag.htm"
 Fund Management  

  HYPERLINK
"http://www.epa.gov/pesticides/fees/questions/exemptions.html"  Guidance
on Federal and State Agency Exemptions  

  HYPERLINK
"http://www.epa.gov/pesticides/fees/questions/guidance_ir-4.htm" 
Guidance on IR-4 Exemptions  

  HYPERLINK "http://www.epa.gov/pesticides/fees/questions/processin.htm"
 In-Processing of Applications  

  HYPERLINK "http://www.epa.gov/pesticides/fees/questions/inerts.htm" 
Inert Ingredients  

Current as of December 2009

This is the Agency's current guidance on how to request fee waivers for
small businesses under the Pesticide Registration Improvement Renewal
Act (PRIRA or PRIA 2). This guidance reflects the Agency's current
thinking at this time. As the Agency gains additional experience with
the review of fee waiver and fee reduction requests under PRIA 2, this
guidance may change.

Guidance on this page for:

  HYPERLINK "http://www.epa.gov/pesticides/fees/questions/waivers.htm"
\l "1#1"  General Guidance  

  HYPERLINK "http://www.epa.gov/pesticides/fees/questions/waivers.htm"
\l "2#2"  Small Business  

  HYPERLINK "http://www.epa.gov/pesticides/fees/questions/waivers.htm"
\l "3#3"  Certification Example for Small Business  

General Guidance

1. Can registration service fees be waived?

Yes. Section 33(b)(7)(F) of the Federal Insecticide, Fungicide, and
Rodenticide Act (FIFRA) contains the provisions for small business
waivers.  Specifically, an applicant that qualifies as a small business
is eligible for a partial waiver of 50% or, in some cases, 75% of the
registration service fee.  Please note that PRIA 2 amended the small
business waiver provisions and a 100% waiver is no longer available.

2. When and where should I submit my request for a waiver of a
registration service fee?

A request for a waiver or reduction must be submitted in writing
together with the application and should be sent to:

By USPS Mail	By Courier

Document Processing Desk (REGFEE)

Office of Pesticide Programs (7504P)

U.S. Environmental Protection Agency

Ariel Rios Building

1200 Pennsylvania Avenue, NW

Washington, DC 20460-0001	Document Processing Desk (REGFEE)

Office of Pesticide Programs

U.S. Environmental Protection Agency

One Potomac Yard Room S-4900 

2777 S. Crystal Drive 

Arlington, VA 22202

All small business waiver requests must be accompanied by a partial
payment of at least 25% of the appropriate fee.  Therefore, if you are
requesting a 75% waiver, you must submit 25% of the fee with your
application.  If you are requesting a 50% waiver, you must submit 50%
of the fee with your application.  The payment should be made by
accessing the PRIA fee determination decision tree web site (or calling
the appropriate Office of Pesticide Programs ombudsman) to identify the
appropriate fee and then paying the fee by credit card or wire transfer
through   HYPERLINK "https://www.pay.gov/paygov/"  Pay.gov   or by
sending a check, money order or bank draft: 

By USPS Mail:	By courier:

U.S. Environmental Protection Agency

 Washington Finance Center

 FIFRA Service Fees

 P.O. Box 979074

 St. Louis, MO 63197-9000	U.S. Bank

 Government Lockbox 979074

 1005 Convention Plaza

 SL-MO-C2-GL

 St. Louis, MO 63197

 (314) 418-4990 

Documentation of payment should be attached to the front of your
application and can be either a copy of the check or bank draft or a
pay.gov acknowledgement of payment. This will assure that the EPA can
match up your payment with the application.

3. What is the time frame for the Agency's determination to grant or
deny requests for waivers of registration service fees? 

The Administrator must determine whether to grant or deny the request as
soon as practicable, but not later than 60 days after the date on which
the Administrator receives a request for a waiver or reduction of a
registration service fee.

4. How does EPA process waiver requests?

The Agency will review the documentation provided by the applicant and
other information in the Agency databases as well as other publicly
available information to determine if the applicant meets the applicable
criteria for a waiver. The Agency will respond in writing to the
applicant with the decision regarding the waiver. If a portion of the
fee is still due to the Agency, the letter will include the amount to be
paid and instructions for submitting payment.

5. When does the decision time review period begin when a waiver has
been granted or denied?

If no additional fees are due, the decision time review period begins on
the date the waiver is granted or 60 days after receipt of the waiver
application, whichever is earlier. If a partial waiver is granted but
additional fees are due, the decision review time period begins on the
date the Agency receives certification of payment of the applicable
registration fee. If a waiver or fee reduction request is denied, the
decision time review period begins when the applicable registration
service fee is received.

6. Will the registration service fees be refunded if the application is
withdrawn? 

If the applicant withdraws a covered pesticide registration application
during the first 60 days after the beginning of the applicable decision
time review period, the Agency must refund all but 25% of the total
registration service fee. If a covered pesticide registration
application is withdrawn after the first 60 days of the applicable
decision time review period, the Agency must determine what portion, if
any, of the total registration service fee for the application may be
refunded based on the proportion of the work completed at the time of
withdrawal.  The maximum that can be refunded is 75%.

7. What should I do if my application contains confidential information?

You may assert a business confidentiality claim covering part or all of
the information in the application at the time it is submitted to the
Agency. If you wish to assert a claim of confidentiality, you must mark
the document "CONFIDENTIAL BUSINESS INFORMATION' or with a similar
designation, and must bracket all text so claimed. Information covered
by a claim of confidentiality will be disclosed by EPA only to the
extent, and by means of the procedures set forth under 40 CFR Part 2. If
no claim of confidentiality accompanies the information when it is
received by EPA, it may be made available to the public by EPA without
further notice to the applicant.

8. I received an invoice from the Agency in response to my application.
I had submitted a waiver request with my application and I disagree with
the Agency’s decision on the waiver request. How can I appeal this
decision? 

First, do not pay the fee. Instead, please submit a written response,
including a rationale explaining your rationale for a different waiver
determination. The written response should be submitted to:

By USPS Mail	By Courier

Document Processing Desk (WAIVER APPEAL)

Office of Pesticide Programs (7504C)

U.S. Environmental Protection Agency

Ariel Rios Building

1200 Pennsylvania Avenue, NW

Washington, DC 20460-0001	Document Processing Desk (WAIVER APPEAL) 

Office of Pesticide Programs

U.S. Environmental Protection Agency

One Potomac Yard Room S-4900 

2777 S. Crystal Drive 

Arlington, VA 22202

Once received by the Office of Pesticide Programs, your response will be
reconsidered by the PRIA Waiver Workgroup. After the Agency has
completed its review of the rebuttal, you will receive a telephone call
from the Agency explaining the Agency's decision. If the Agency changes
the waiver determination and fees are still due, you will receive a new
invoice from the Agency requesting payment. If the Agency determines
that the waiver can be granted and you have already paid the portion of
the fee due, you will receive a letter granting your waiver request. If
the Agency decides to maintain its original decision on the waiver
request, you will be instructed to remit payment.

9. Is there an Agency contact for questions on small business fee
waivers? 

Yes, the Agency's contact for small business fee waivers is   HYPERLINK
"mailto:green.christopher@epa.gov"  Christopher Green 
(green.christopher@epa.gov, 703-347-0367).

  HYPERLINK "http://www.epa.gov/pesticides/fees/questions/waivers.htm"
\l "content#content"  Top of page 

Guidance on Small Business Waivers

1. Under what circumstances is a small business eligible for a fee
waiver?

An applicant that meets the definition of a small business is eligible
for a fifty percent (50%) waiver of the pesticide registration service
fee. A small business means a corporation, partnership, or
un-incorporated business that has 500 or fewer employees and during the
3-year period prior to the most recent maintenance fee billing cycle,
has an average annual global gross revenue from pesticides that did not
exceed $60 million (including any such revenue from all of its
affiliates). In addition, a small business that has average annual
global gross revenues from pesticides of less than $10 million
(including any such revenue from all of its affiliates) over the past
3-year maintenance fee billing cycle at the time of the application is
eligible for a 75% waiver of the pesticide registration service fee.

2. What is the previous “maintenance fee billing cycle” referred to
in the statute?

The "maintenance fee billing cycle" is a yearly cycle commencing on
January 15th. Therefore, the relevant time periods for measuring whether
an applicant meets the definition of a small business are the
applicant's three fiscal years preceding the January 15th of the year in
which the application is received.

3. What are affiliates of an applicant for purposes of requesting a
small business fee waiver?

Affiliates include direct and indirect subsidiary and parent entities of
the applicant as well as entities that are controlled directly or
indirectly by the owner(s) or any parent entity of the applicant. In
addition, two unrelated entities are affiliates if they are both owned
or controlled by the same entity or person. Specifically, business
entities are affiliates of each other if, directly or indirectly, either
entity controls or has the power to control the other entity, or a third
entity controls or has the power to control both entities. Indicia of
control include interlocking management or ownership, identify of
interests among family members, shared facilities and equipment, and
common use of employees. Accordingly, control is not limited to voting
control over another entity.

4. What information should I include in my request for a fee waiver as a
small business?

The request should be in writing and include the following information:

The company name and company number assigned by OPP to the applicant,
the official mailing address under FIFRA, the telephone number and
e-mail or fax number of the contact person regarding the fee waiver or
reduction request. 

A certification signed by a responsible officer that the documentation
submitted to support the waiver or reduction request is true, complete,
and correct. 

An ownership structure chart depicting the relationship of the applicant
to subsidiaries and parent entities that are directly or indirectly
controlled by the owner(s) or any parent entity of the applicant, if
appropriate. If the applicant does not have a parent entity, the
percentage ownership interest of the direct and indirect owner(s) or
shareholders of the applicant should be disclosed. If the applicant does
not have a parent entity, the percentage ownership interest of the
direct and indirect owner(s) or shareholders of the applicant should be
disclosed. If the applicant does have a parent company (or companies),
the ownership of the ultimate parent entity should also be disclosed. 

A narrative or explanatory information, if appropriate, addressing
whether related entities are affiliates.

A narrative or explanatory information, if appropriate, explaining how
the applicant differentiated its global gross receipts from pesticides
from other revenue and how such revenue was calculated, both for the
applicant and for any affiliates. The rationale should explain what
types of revenues have been excluded. 

Appropriate supporting documentation demonstrating that the criteria for
the waiver or reduction from the registration service fee are met. 

  -- A workgroup comprising representatives of registrant companies and
trade associations designed a form for assisting pesticide registrants
when they submit small business waiver requests under the Pesticide
Registration Improvement Act. EPA staff provided input to the process.
Use of the form is voluntary and information submitted using the forms
will be accepted by the Agency. Other formats that meet the requirements
of the statute will be acceptable to the Agency as well. 

5. What information is required for certification for a fee waiver?

A certification should include: 

information on business identification; 

information regarding the number of employees of the applicant; 

information regarding the ownership of the applicant and affiliated
entities; 

information regarding the global gross revenue from pesticides (of the
applicant as well as any affiliates); and 

a certification statement signed by a responsible officer that the
information provided is true, complete, and correct. The following is a
sample certification: 

An Example of a Certification for Small Business

Section 1: Business Identification 

Name of the applicant 

Company number assigned by OPP to the applicant 

Official mailing address under FIFRA 

Name of the contact person for the waiver or fee reduction request 

Phone number, fax number, and e-mail for the contact person 

Section 2: Small Business Criteria

A) Global Gross Revenue from Pesticides 

Do you have any subsidiaries? Please include any indirect subsidiaries
(subsidiaries of subsidiaries or other subsidiaries of a parent entity)
as well. 

Do you have any parent entities? Please provide information regarding
the ownership of your ultimate parent (including the percentage
ownership/membership interest of each stakeholder). 

If you do not have a parent entity, please provide information on the
ownership of the applicant and the percentage ownership/membership
interest of each stakeholder. 

Do any stakeholders with a controlling interest in the applicant or any
parent entity also directly or indirectly control or have the ability to
directly or indirectly control any other entity?

Which affiliates, if any, have global gross revenue from pesticides?

Including affiliates, what is your global gross revenue from pesticides,
averaged over the applicable three year period?

If you are distinguishing global gross revenue from pesticides from
other gross revenue, please explain how you differentiated and
calculated global gross revenue from pesticides alone. 

B) Employee Threshold

       1. Do you employ 500 or fewer employees? What is the
number of employees? 

Section 3: Certification Statement 

“I, [insert name of undersigned], the [insert title] of [insert name
of applicant], am authorized and have personal knowledge sufficient to
make this certification on behalf of [insert name of applicant]. I
hereby certify under penalty of perjury that the documentation submitted
in connection with [insert name of applicant]’s this fee waiver
request is true, complete, and correct in all material respects.”

Applicant’s Name

Applicant Signature

Title

Date

6. What should the certification statement say? 

The new law requires the accuracy of the documentation supporting a
small business waiver request is certified by a responsible officer. A
responsible officer is someone who is authorized and has sufficient
personal knowledge to make the certification. An agent for the applicant
is not a responsible officer. In addition, the Agency considers the
information to be accurate if it is true, complete, and correct in all
material respects. Thus, the sample certification is an acceptable model
that complies with the statutory requirements.

If a certification statement is qualified in a manner such that the
Agency is unable to determine that it was made by someone who is
authorized to do so and has sufficient personal knowledge, e.g., the
certification is qualified with a blanket “to the best of my
knowledge” statement, the waiver request will be denied.

7. What information should be included in an ownership structure chart
submitted in connection with a small business fee waiver?

An ownership structure chart is a diagram that shows the relationship
between the applicant and other entities, including parent and
subsidiary entities. The ownership structure chart should show all the
entities related to the applicant, either directly or through a parent
or subsidiary entity, or by virtue of common ownership. If the applicant
does not have a parent entity, the direct and indirect owner(s) or
shareholders of the applicant should be disclosed. The ownership
structure chart and accompanying narrative should include: 

all related entities and owners or shareholders (the company names and
company numbers assigned by OPP to entities, if applicable; the official
mailing address under FIFRA, if applicable; telephone number; fax
number; and e-mail for each entity), and

the relationship between the entities (i.e., identifying who the owners
or interested parties are, identifying entities with any gross revenues
from pesticides, and a factual disclosure with respect to the statutory
“indicia of control”). 

8. What documentation must I provide if my total gross revenue exceeds
the threshold for a waiver but my global gross revenue from pesticides
is less than the threshold?

If the applicant is differentiating between gross revenue from
pesticides from other gross revenue, the applicant should provide an
explanation of how the applicant differentiated and calculated global
gross revenue from pesticides from other gross revenue for itself and
for its affiliates. If the applicant’s total global gross revenues
from all sales (and not just pesticides) are well below the $10 million
threshold, the applicant does not need to differentiate between total
global gross revenues and global gross revenues from pesticides alone.

9. How should I calculate the number of employees?

To be eligible for a small business waiver, the applicant must have 500
or fewer employees at the time of submitting the application. Unlike the
calculation for global gross receipts from pesticides, the calculation
of the number of employees is limited to the employees of the applicant
and does not include the employees of affiliates. The Agency currently
believes that the number of employees should be calculated in a manner
similar to how the Small Business Administration calculates the number
of employees for purposes of its regulations. Therefore, the number of
employees should be determined upon consideration of the totality of the
circumstances, including factors relevant for tax purposes. Accordingly,
the number of employees should include all individuals employed on a
full-time, part-time, and temporary basis (including shared employees).
Supporting documentation may, in part, include payroll information and a
recent IRS Form 941, together with a statement certifying the total
number of individuals employed by the applicant.

10. How should I calculate global gross revenues from pesticides? 

Global gross revenue from pesticides (as defined in FIFRA and the
implementing regulations) is not limited to revenue from pesticides for
which the applicant is the registrant but includes all revenue from the
distribution or sale by the applicant or any of its affiliates of a
substance (or mixture of substances) that is intended for a pesticidal
purpose or is advertised as having pesticidal purpose, either in the
United States or abroad, even if (i) the applicant is not the registrant
and (ii) the substance or device is not registered in the United States.
Thus, global gross revenue from pesticides includes revenue from
pesticides that are not currently registered in the United States.;
Global gross revenue from pesticides also includes all revenue from the
sale or distribution of so-called “Section 25(b)” exempt pesticides.
Global gross revenue from pesticides does not, however, include revenue
from devices that are sold separately from a pesticide.

11. What type of documentation should be included to support a small
business waiver request?

The documentation to support the waiver or fee reduction request should
be reliable, pertinent, and comprehensive. The type of documentation
that the Agency currently believes will aid it in making a decision
regarding a small business waiver or fee reduction request includes, but
is not limited to, such documents as: income tax returns filed with the
Internal Revenue Service (such as IRS Forms 1065, 1120, or 1120S, as
applicable), the applicant’s most recent IRS 941, and audited
financial statements.

12. What information should I include in my request for a small business
waiver if my business is located in countries other than the United
States?

Foreign entities must provide the same information provided by domestic
entities. However, if the information is not in English, the applicant's
request may be denied because the Agency is unable to determine that the
applicant meets the statutorily defined criteria for a small business.
Therefore, documentation not in English should be accompanied by a
translation with a certification that the translation is accurate. The
Agency will consider the appropriate documentation supporting the
request on a case-by-case basis.

13. My gross revenue includes global pesticide sales paid by foreign
currencies. What exchange rates should I use to convert my global
pesticide sales into U.S. dollars? 

Global gross revenue from pesticides is calculated as an average during
the 3-year period prior to the most recent maintenance fee billing
cycle. The exchange rates to convert the global gross revenue into US
dollars should also be the average during the same period. The applicant
should include an explanation of the method used for averaging such
revenues over the applicable period(s) as well as an explanation of how
the exchange rate used was determined.

14. I’d like to request a fee waiver for small business, but I am a
newly formed start-up company. What supporting documentation should I
submit?

The Agency will consider these situations on a case-by-case basis. To
the extent possible, the applicant should provide the same information
as other applicants regarding the number of employees and affiliates.
The applicant should disclose whether the ownership or management of the
new entity had control over other entities with gross global revenue
from pesticides in the prior applicable three-year period. The Agency
will not grant a waiver if it determines that the entity submitting the
application has been formed or manipulated primarily for the purpose of
qualifying for the waiver 

15. After the Agency has granted my request for a small business fee
waiver on one registration application, how do I request the waiver for
subsequent registration applications? 

EPA must determine that the applicant meets the statutory criteria for a
small business fee waiver or reduction at the time of the request for
each registration application. Therefore, you must provide a
certification with each registration application. To the extent that
previously submitted documentation is still valid and represents your
company’s current small business status, you can rely on these
materials by reference.

If the previous request occurred during a prior maintenance fee billing
cycle (i.e., prior to January 15)

The applicant must submit all of the necessary documentation supporting
the fee waiver/reduction request as if the request were being made for
the first time. 

If the previous request occurred during the current maintenance fee
billing cycle and the information provided in connection with the prior
request has not changed 

The applicant may reaffirm the information and the underlying
documentation previously submitted by submitting a new certification
statement that could read as follows: 

“I, [insert name of undersigned], the [insert title] of [insert name
of applicant], am authorized and have personal knowledge sufficient to
make this certification on behalf of [insert name of applicant]. I
hereby certify under penalty of perjury that, since [insert name of
applicant]’s waiver  request of [insert date], there has been no
change in the number of [insert name of applicant]’s employees,
entities affiliated with [insert name of applicant] or average gross
global revenue from pesticides, including any such revenue from
affiliates and that the documentation submitted in connection with the
request of [insert date] remains true, complete, and correct and remains
valid.

Applicant’s Name

Applicant’s Signature

Title

Date 

While not required, the Agency asks that the applicant also provide a
copy of the Agency letter granting the fee/waiver reduction as
information in this letter helps the Agency expedite the waiver
decision-making process. 

If the previous request occurred during the current maintenance fee
billing cycle and some of the information provided in connection with
the prior request has changed

The applicant can reaffirm the information and underlying documentation
previously submitted to the extent that there have been no changes and
provide updated documentation with respect to those pieces of
information that have changed. In these instances, the applicant would
provide the following:

A letter indicating what information in the last certification continues
to remain “true, complete, and correct”.

Materials documentation the information that has changed since the last
certification.

A new certification that could read as follows: 

“I, [insert name of undersigned], the [insert title] of [insert name
of applicant], am authorized and have personal knowledge sufficient to
make this certification on behalf of [insert name of applicant]. I
hereby certify under penalty of perjury that the documentation submitted
in connection with [insert name of applicant]’s waiver request is
true, accurate, and complete in all material respects. I further certify
under penalty of perjury that, since [insert name of applicant]’s
partial waiver request of [insert date] there has been no change in the
[include applicable elements]: number of employees/entity
affiliations/average gross global revenue from pesticides, including any
such revenue from affiliates] and the documentation submitted in
connection with the request of [insert date] remains true, complete, and
correct and remains valid.”

Applicant’s Name

Applicant’s Signature

Title

Date

While not required, the Agency asks that the applicant also provide a
copy of the Agency letter granting the fee/waiver reduction as
information in this letter helps the Agency expedite the waiver
decision-making process.