EPA is initiating a rulemaking process to consider amendments to the formulators' exemption. Section 3(c)(2)(D) of the Federal Insecticide, Fungicide, and Rodenticide Act excuses an applicant from the requirement to submit or cite data pertaining to any pesticide contained in its product that is derived solely from one or more EPA-registered pesticide products which the applicant purchases from another person. Accordingly, section 3(c)(2)(D) also excuses the applicant from the requirement to offer to pay reasonable compensation for the use of any such data. This provision is commonly referred to as the formulators' exemption. The formulators' exemption reduces the data submission burden on an applicant for registration of a product that uses an EPA-registered pesticide product as the source of its active ingredient. EPA is considering changes to regulatory provisions addressing the formulators' exemption to improve the reliability, efficiency, and effectiveness of review and approval of applications.