1. Electronic Signatures in Global and National Commerce Act (E-SIGN) Office of Environmental Information USEPA January 10, 2001

2. Agenda... zOverview of E-SIGN zE-SIGN’s Scope zE-SIGN’s Effective Dates zEffect on Environmental Programs zEPA E-SIGN Strategy zIssues for States

3. Overview zPL 106-229, enacted on June 30, 2000 zPurpose: to eliminate legal barriers to E-commerce by stipulating that: ycontracts on paper = E-contracts ypen-and-ink signatures = E-signatures yother legally-required written documents = the same info in E-form.

4. E-SIGN... zRequires agencies to allow private parties to do business and keep records electronically, including the use of electronic signatures zEstablishes requirements for using electronic records and signatures in consumer transactions.

5. E-SIGN’s Scope zCommercial, consumer, and business transactions affecting interstate and foreign commerce, including transactions regulated by federal and State agencies. zE-Sign applies to: yRegulation of Private Parties’ Contract Formation yLegally Required Notices and Disclosures in Private Transactions yBusiness Record Retention Requirements

6. E-SIGN’s Scope Excludes... zUniquely governmental transactions, such as reporting and record-keeping by regulated entities principally for governmental purposes. yThe Government Paperwork Elimination Act (GPEA) addresses these requirements -- federal agencies must provide for electronic submissions and record- keeping under their programs, when practicable, by Oct 2003. zGovernmentaltransactions that are also commercial are not excluded…more later...

7. E-SIGN Effective Dates... zMost provisions effective on Oct 1, 2000 zProvisions relating to non-excluded governmental transactions are effective on March 1, 2001... z...Except for Agencies undertaking rulemaking on these transactions, the effective date is June 1, 2001. zCROMERRR (we hope) allows us to push back to the June 1 date.

8. Effect on Environmental Programs zE-SIGN applies to federal or State regulatory requirements when ythe records that companies create and keep in compliance with 40 CFR are created and kept in the normal course of their business yin the absence of EPA regulations, the regulated entity would maintain the record. zExample: E-SIGN might apply to records that regulated companies keep for the benefit of, or provide to, third parties.

9. Environmental Programs... zWhen E-SIGN applies to a federal or state requirement to create, keep or transmit a record… yregulated entities may comply with this requirement electronically as soon as E-SIGN is effective (March 1 or June 1); ythe regulated entity’s electronic records practices need not meet any special standards unless the federal or state agency provides such standards by regulation.

10. Environmental Programs... zAbsent specific EPA guidance or regs, effective Jun 1, 2001, regulated entities can determine which records are subject to E-SIGN and select their own electronic method for maintaining those records. zEPA’s CROMERR rule establishes standards for electronic records and electronic signatures but the Final Rule will not be published until Dec, 2001

11. EPA’s E-SIGN Strategy zDetermine the universe of EPA reports and records affected by E-SIGN (Jan) zDecide whether E-SIGN poses risks (Feb) zIf significant risks -- promulgate CROMERRR for E-SIGN universe by June 1. zIf no great risks -- allow E-SIGN to take effect and wait for CROMERRR to set standards for electronic reports/records

12. Strategic Issues... zSignificance of specific E-SIGN records for enforcement and programmatic needs zLapse between promulgation of CROMERRR and E-SIGN effective date

13. Issues for States zThe E-SIGN universe of reporting/record- keeping requirements under State programs ythe applicability of EPA’s inventory ythe relevance of EPA’s decisions about E-SIGN zThe time it will take for States to amend delegated/authorized program to address E- SIGN-affected requirements they care about. zThe consequences for State programs of waiting for CROMERRR to address E-SIGN

14. State/EPA Questions... zHow aware are States of E-SIGN? zAre States currently doing anything to address E-SIGN? zWhat is the best way for EPA to help States deal with E-SIGN? zOther issues/questions….?