Submitting an Indemnity Claim to EPA for Cancelled DCPA Products

Background

On October 23, 2024, EPA issued a final cancellation order for all U.S. registrations of dimethyl tetrachloroterephthalate (DCPA or Dacthal)  products, which was published in the Federal Register. EPA issued the cancellation order after issuing an emergency order of suspension (EOS) to prevent an imminent hazard due to human health risks from DCPA, particularly risks to unborn babies whose pregnant mothers are exposed to DCPA. 

Pursuant to FIFRA Section 15, end users who owned any quantity of an EPA-registered DCPA pesticide product on August 6, 2024 (immediately before publication of the EOS), and who suffered losses due to the suspension and cancellation of the registrations of those pesticide products, may submit a claim for an indemnity payment. However, prior to EPA issuing the final cancellation order on October 23, 2024, AMVAC initiated a return program to collect existing stocks of DCPA products from distributors, retailers, and end users. As part of this return program, AMVAC reimbursed these distributors, retailers, and end users for any unused and unopened stock of DCPA products. Any indemnity payment payable to end users under FIFRA Section 15 will be reduced by the amount of such reimbursement from AMVAC.

The information below describes the procedure for submitting indemnification claims from end users of DCPA products Dacthal Flowable Herbicide (EPA registration number 5481-487) and Technical Chlorthal Dimethyl (EPA registration number 5481-495) who have not already been fully reimbursed by the DCPA registrant through the process stated above.

Eligibility for Indemnity Payments

To qualify for an indemnity payment from EPA under FIFRA Section 15, you must meet all the following criteria:

1. You must have been in possession of either of the two above-described EPA-registered products containing DCPA at the time EPA issued the EOS (i.e., August 6, 2024). Qualification for indemnity applies to pesticide products Dacthal Flowable Herbicide (EPA registration number 5481-487) and Technical Chlorthal Dimethyl (EPA registration number 5481-495) only.
2. You must have suffered a financial loss as a result of the EOS and subsequent cancellation of the two above-described DCPA products. The only loss for which FIFRA Section 15 allows payment of an indemnity is for the cost of the pesticide product itself, up to the fair market value of that product immediately before issuance of the EOS. No other costs are subject to indemnification, including the cost of transporting the pesticide product, any crop losses alleged from the inability to use the suspended or cancelled products, or any other associated costs. Qualification for indemnity applies to pesticide products Dacthal Flowable Herbicide (EPA registration number 5481-487) and Technical Chlorthal Dimethyl (EPA registration number 5481-495) only.
3. You must still have an outstanding financial loss after receiving any reimbursement from AMVAC or any other entity for return of the two above-described products. Any other reimbursement, offset, or payment received in association with the suspended and cancelled DCPA products (e.g., sale of the product for export) will reduce or eliminate the amount of indemnity payments that can be paid under FIFRA Section 15.

Process for Submitting Claims

To submit a claim to EPA, send an email to [email protected] with the subject line DCPA INDEMNIFICATION CLAIM. Supporting documentation to prove eligibility for an indemnity payment should be attached to the email and should include:

1. Confirmation that you were in possession of product that was registered at the time that emergency order of suspension was issued on August 6, 2024. Note: This applies only to products with EPA registration numbers 5481-487 (Dacthal Flowable Herbicide) and 5481-495 (Technical Chlorthal Dimethyl, used for formulating into herbicides).
2. Documentation showing that the product was held for the sole purpose of applying or using the pesticide and not for distribution, sale, or further processing. For partially filled products, verification to identify the content in the container may be used to assess eligibility, if available. Verification could include testing by EPA, a GLP lab, or a similar facility.
3. Documentation showing that you suffered a financial loss as a result of the emergency order of suspension. This documentation may include purchase receipts for the product, evidence of remaining stock on August 6, 2024, and other relevant evidence. Note: Indemnification is limited to the fair market value of the pesticide in possession at the time of the order of suspension and is reduced by any reimbursement received through return.
4. Information about reimbursement from other sources, including information about denied reimbursement requests. If reimbursement was offered by another entity but you did not accept it, you should include a report on the payment offered and a summary of why the payment was not accepted. If some reimbursement was received, you should include a statement providing justification for seeking additional compensation.

Your email should also include a certification statement. An example of a certification statement is included below:

“I understand that any person who knowingly submits, or causes to submit, false claims to the government may be liable for three times the government’s damages plus a penalty, 31 U.S.C. 3729, and that criminal penalties for presenting fraudulent claims or making false statements to the government can include fines, imprisonment, or both, 18 U.S.C. 287, 1001.”

Questions about the claims process can also be directed to the [email protected].

Evaluation of Claims

Once a claim is received by EPA, it will be evaluated for eligibility based on the documentation you provided, product return records, and any lab tests to verify the content of partial containers. If EPA determines that you are eligible for reimbursement, EPA will determine the payment amount for each claim based on the fair market value of the product immediately before the emergency order of suspension was issued. Claimants will be notified of their claim status via email.

Once EPA determines that a claimant is entitled to indemnification under FIFRA Section 15, the claimant will be required to sign an agreement. The agreement will provide that payment of the specified amount is a final payment satisfying all rights to indemnification under FIFRA Section 15 and is not subject to any right of appeal or reconsideration. The agreement will also constitute a release of the United States Government as to all future claims arising from the EPA’s issuance of the August 6, 2024, emergency order of suspension.