FR 2021-03170

The Environmental Protection Agency (EPA) has issued a notice regarding its intention to grant certain contractors access to information that may be classified as Confidential Business Information (CBI). This action is primarily concerned with data tied to the EPA's fuel quality programs, vital for monitoring adherence to environmental standards. The public is encouraged to submit comments on this action until February 22, 2021, through various channels, with a preference for electronic submissions via the EPA's website.

General Summary

The document outlines the EPA's plan to authorize specific contractors to access CBI to assist with compliance monitoring and the processing of related reports. The notice suggests that involved contractors will adhere to strict confidentiality protocols, such as non-disclosure agreements, to maintain the privacy and security of the data. By allowing external contractors to access sensitive data, the EPA aims to manage the extensive data handling requirements essential for implementing the Clean Air Act and related regulatory programs.

Significant Issues or Concerns

Several issues arise from the document's contents. Primarily, it does not offer a thorough explanation for why specific contractors and subcontractors have been chosen to access this CBI, which raises concerns regarding the criteria used for selection and potential favoritism or lack of competition. Another concern is the ambiguity surrounding the conditions under which contracts can be extended without further announcements, potentially reducing transparency about contractor roles and responsibilities over time. Additionally, the parameters for what constitutes “need-to-know” access are not clearly defined. This lack of clarity may lead to questions about who qualifies for access and under what circumstances.

The document also assumes a high level of familiarity with EPA systems and regulations, such as 40 CFR part 1090 or the Central Data Exchange (CDX). This presumption can alienate members of the public and stakeholders who are not intimately acquainted with EPA procedures and terminology, hindering their ability to engage meaningfully in the commenting process.

Impact on the Public

The potential impact of this action on the public is multifaceted. For the general public, the main concern is the handling of CBI and how its unauthorized access might impact environmental policies and compliance. The public trusts that such information is managed securely, preventing any misuse that could potentially affect environmental outcomes or market dynamics.

For specific stakeholders, such as fuel manufacturers, refiners, and distributors, the implications are more direct. Access to CBI by contractors means these entities must trust that their sensitive information, submitted as part of compliance activities, will be handled with due care to prevent competitive disadvantage or breaches. Understanding and involvement in how their data is protected and who has access become crucial considerations.

Positive and Negative Stakeholder Impact

The decision to involve external contractors may bring efficiency and specialized skills to the data processing and compliance monitoring required by the EPA. This can positively impact stakeholders by ensuring audits and regulations are handled proficiently, potentially leading to a more streamlined regulatory environment.

Conversely, it exposes stakeholders to the risks associated with sharing sensitive information. Should any breach occur, it might harm companies' competitive positions or provoke regulatory scrutiny. Therefore, while there could be operational benefits from enhanced data handling, the trade-off lies in managing the accompanying risks of shared data access.

This notice exemplifies the balance the EPA must maintain between leveraging external expertise for regulatory implementation and ensuring the protection of sensitive business information submitted under environmental regulations. The public feedback process will be essential in shaping how this balance is achieved, influencing the future readiness and transparency of EPA's regulatory functions.