p. 1



# OAR Box 1833
Prepped by Keeia Richards



## Document

Number: 

# 69 ) FE D RE G VO L 5 5 N O 12 1 JUN E 22,199 0

Docket Number: 

# A-87-2 0

Printed 11/14/200811:01:29AM Sheet 69of 172P_ L 

## y?-- 8-7-JLo
Frida y Jun e 22 , 199 0



## W 1 

# Par t VI1 9



# Environmenta l Protectio n Agenc

y
4 0 CF R Part 8 2 Protectio n o f Stratospheri c Ozone ; Fina l Rul e2581 2 Federa l Register/Vol

. 55 , No

. 12 1 / Friday , Jun e 22 , 199 0 /Rule s an dRegulation s - . P. 3

ENVIRONMENTA L PROTECTIO N AGENCY 4 0 CF R Part 8 2 [FRLT3790-1 ] Protectio n o f

Stratospheri c Ozon e AGENCY: Environmenta l Protectio n Agency

. ACTION: Fina l rule

. SUMMARY : Today' s notic e announce s a tentativ e lis t

o f Articl e 5 Partie s i n appendi x E t o th e fina l rul e o n stratospheri c ozon e protectio n (4 0 CF R par t 82)

. A n Articl e 5 Part y i s define db y th e Montrea l Protocol , th e treat y tha t limit s th e productio n an dconsumptio n o f ozon e depletin g chemicals , a s aPart y t o th e Protoco l tha t

i s " adevelopin g countr y whos e annua l calculate dleve l (define da s th e quantit y o f th e ozon e depletin g chemica l multiplie db y it s ozon e depletio n weight ) o f controlle d substance s o f

pe r capit aconsumptio n i s les s tha n
. 3 kilogram s a s o f th e dat e o f th e entr y int o forc e o f

th e Protoco l fo r it"

. Unde r

th e regulator y progra mfo r th e protectio n o f

stratospheri c ozone , companie s tha t

expor t t o Articl e 5 Partie s ma y increas e thei r productio n o f controlle dsubstance s u p t o th e limit s state di n Articl e 2 o f

th e Protocol

. Th e Agenc y consider s thi s atentativ e lis t o f Articl e 5 Parties

. I t

i s base do n th e bes t availabl e information , bu t ma y b e revise da s mor e relevan t informatio n i s receive dfo r

affecte dcountries

. Th e Agenc y reserve s th e right t o revis e thi s appendi x shoul dadditiona l informatio n becom e availabl e tha t

indicate s tha t suc hcountrie s ar e no t

Articl e 5 Parties , o r t o ad dt o thi s lis t

a s mor e countrie s ar e eligible

. Thes e countrie s ar e Mexico , Venezuel aan dThailand

. DATES : Thi s fina l rul e (appendi x E ) i s effectiv e Jun e 22,1990

. ADDRESSES : Comment s an dothe r informatio n relevan t

t o thi s rulemakin g ar e maintaine di n Docke t A-87-2 0 a t

th e Ai r Docke t roo mM-1500 , Firs t

Floor , Watersid e Mall , Environmenta l Protectio n Agency , 40 1 M Stree t SW. , Washington , D C 20460

. Th e docke t ma y b e inspecte dbetwee n 8 a.m
. an d3:3 0 p.m
. o n weekdays

. A s provide di n 2 0 CFRpar t 2 areasonabl e fe e ma y b e charge dfo r

photocopying

. FO R FURTHE R INFORMATIO N CONTACT : Davi dLee , Regulator y an dAnalysi s Branch , Globa l Chang e Division , Offic e o f Atmospheri c an dIndoo r Ai r Programs , Offic e o f

Ai r an dRadiation , ANR-445 , 40 1 M Stree t

SW. , Washington , D C 20460 , (202 ) 475-7497

. SUPPLEMENTAR

Y INFORMATION: O n Augus t 12,1988 , EP A promulgate da fina l rul e t o limi t th e productio n an d consumptio n o f

certai n chlorofluorocarbon s (CFCs ) an d brominate dcompound s (halons ) t o reduc e th e risk s o f

stratospheri c ozon e depletion

. The-rul e require s anear-ter m freez e a t 198 6 level s o f

productio n an d consumptio n (define da s productio n plu s import s minu s exports ) o f CFC—11 , -12 , -113 , -114 , an d-11 5 base do n thei r relativ e ozon e depletio n weights , followe db y aphase dreductio n t o 8 0 percen t an d5 0 percen t

o f 198 6 level s beginnin g i n mid-199 3 an dmid-1998 , respectively

. I t

als o limit s productio n an dconsumptio n o f

Halo n 1211,1301 , an d240 2 t o 198 6 level s beginnin g i n 1992

. Unde r

specifie dcircumstances , limite dincrease s i n productio n (bu t no t consumption ) abov e thes e level s i s permitted

. Thi s rul e wa s promulgate dunde r sectio n 157(b ) o f

th e Clea n Ai r

Ac t an d constitute dth e Unite dStates ' implementatio n o f

th e Montrea l Protocol , whic hth e Unite dState s ratifie do n Apri l 21,1988

. Th e fina l rule' s contro l measure s too k

effec t whe n th e Protoco l entere dint o forc e o n Januar y 1 , 1989

. Th e curren t

rul e implement s th e Protocol' s requirement s t o contro l productio n an dconsumptio n o f th e CFC s an dhalon s specifie dabov e b y allocatin g productio n an dconsumptio n allowance s t o firm s tha t produce dan d importe dthes e chemical s i n 1986 , base d o n thei r 198 8 level s o f

thes e activities

. I n addition , producer s receive d potentia l productio n allowance s equa l t o 1 0 percen t

o f thei r 198 6 productio n level s (1 5 percen t

i n 199 8 fo r

CFCs)

. Thes e potentia l productio n allowance s ca n b e converte dt o productio n allowance s t o replac e export s t o Articl e 5 Parties

. A n Articl e 5 Part y i s a developin g countr y wh o i s Part y t o th e Protoco l an dwhos e calculate dleve l pe r capit aconsumptio n o f

thes e chemical s i s les s tha n
. 3 k g a s o f

th e dat e tha t

th e Protoco l entere dint o effec t fo r it

. A compan y ma y als o conver t potentia l productio n allowance s t o productio n allowance s upo n receip t o f productio n right s fro manothe r

Part y tha t

ha s agree dt o decreas e it s productio n b y a n equa l amoun t

fo r th e purpose s o f industria l rationalization

. ( A Federa l Registe r Notice , publishe do n Februar y 13,199 0 (5 5 FR5007) , amende dth e condition s unde r

whic hthi s offse t

o r • industria l rationalizatio n coul doccur
. Industria l rationalizatio n i s define di n Articl e 1 o f

th e Montrea l Protoco l a s "th e transfe r

o f al l o r aportio n o f

th e calculate dleve l o f

productio n o f

on e Part y t o another , fo r

th e purpos e o f achievin g economi c efficiencie s o r respondin g t o anticipate dshortfarfsTi n
. suppl y a s aresul t

o f plan t closures)

. Rulemakin g fo r

Appendi x E O n Jul y 12,198 9 th e Agenc y propose d Appendi x E , "Articl e 5 Parties " (5 4 FR 29353)

. Th e Agenc y propose dthi s lis t whic hinclude dth e followin g countries : Egypt , Ghana , Kenya , Maldives , Mexico , Nigeria , Panama , Uganda , Jordan , an d Venezuela

. I n thi s sam e notice , th e Agenc y propose da n amendmen t tha t woul d amen dth e condition s unde r whic ha compan y coul dincreas e it s productio n unde r th e limit s state di n th e Protocol

. Originally , companie s operatin g unde r § 82.1 1 coul dincreas e thei r productio n fo r export s t o an y Party

. However , ' Parties , i n thei r

firs t meetin g i n Helsinki , Finlan di n Ma y 1989 , agree dtha t suc h increase s coul doccu r

onl y fo r export s t o Articl e 5 Parties , o r

when.tw o Partie s ha dagree dt o transfe r

production , resultin g i n on e Part y increasin g it s productio n whil e anothe r decrease s it s productio n fo r

th e purpose s o f

industria l rationalization

. Th e proposa l amende d § § 82. 9 an d82.1 1 i n orde r t o institut e th e agreemen t

o f th e Parties

. Th e Agenc y finalize dthi s amendmen t o n Februar y 13,199 0 (5 5 F R5007) , bu t wa s unabl e t o finaliz e th e lis t o f countrie s i t

ha dpropose da s Articl e 5 Partie s du e t o unresolve ddat aissues

. Sinc e tha t

tim e th e Agenc y ha s receive d additiona l dat atha t

allow s EP A t o bette r estimat e pe r

capit aconsumptio n fo r th e perio dspecifie db y Articl e 5 (th e dat e tha t th e Protoco l entere dint o effec t fo r th e developin g countr y whic his , Januar y 1,198 9 o r

after)

. A s th e Agenc y state di n th e Februar y 1 3 Federa l Registe r

Notice , n o developin g countr y Part y ha s ye t t o submi t dat ao n it s consumptio n o f controlle dsubstance s a s o f th e dat e th e Protoco l entere dint o forc e fo r it , Januar y 1,198 9 o r

later

. Man y countries , includin g mos t

developin g countr y Parties , hav e no t

ye t complie dwit h Articl e 7 o f

th e Protoco l tha t

require s countrie s t qrepor t

thei r level s o f productio n an dconsumptio n o f controlle dsubstance s i n 198 6 withi n thre e month s o f

becomin g Parties

. A s a result , ther e wa s littl e o r n o basi s a t

tha t tim e fo r determinin g whether,an y developin g countr y consume dcontrolle d substance s a t

a n annua l calculate dleve l o f les s tha n
. 3 kilogra mpe r capit ao n th e dat e tha t th e Protocol , entere dint o effec t fo r it , an dthu s whethe r

an y developin g countr y Part y coul davai l itsel f o f th e specia l treatmen t

afforde db y Articl e 5

. I n respons e t o areques t fro mth e Unite dStates , th e Secretaria t o f th e Protoco l decide dtha t

unde r thes eP. 4

/ Vo l 55 , No

. _2 1 /

Friday , Jun e 22 , 19S 0 / Rule s an dRegulation s
circumstances , i t

coul dno t an dwoul d no t make
_determinatio n o

f whic h Partie s shoul db e considere dt o b e operatin g unde r

Articl e 5 unti l th e country submit s dat ademonstratin g tha t it s consumptio n o

f controlle dsubstance s a s o f th e dat e th e Protoco l entere dint o forc e fo r i t wa s les s tha n
. 3 kilogra

mpe r capita

. Th e Secretaria t

explaine dtha t

a different approac ht o identificatio n o f Articl e 5 Partie s woul drisk allowin g higher productio n an dconsumptio n o f controlle dsubstance s tha n th e Protoco l woul dotherwis e allow , o r mak e a n incorrec t assumptio n a s t o aParty' s desir e t o operat e unde r

Articl e 5 , o r both

. T o remedy thi s situation , th e Secretaria t

requeste dthi s dat afro

mal l Partie s tha t

wis ht o b e considere d Articl e 5 Parties

. Th e Unite dState s als o requeste d simila r dat afro masubse t

o f potentia l Articl e 5 Parties , relyin g upo n U.S

. embassie s withi n thes e countrie s t o conve y th e nee dfo

r thes e countrie s t o report thei r Articl e 5 statu s t o bothth e Secretaria t

an dth e Unite dStates

. Base do n informatio n receive dt o dat e fro mbothth e Secretaria t

an dth e Unite d States ' dat arequest , th e Agenc y believe s tha t

i t i s appropriat e t o identif

y atentativ e listin g o

f Articl e 5 countrie s a t thi s time

. Th e Unite dState s ha s expresse dth e nee dfo

r alis t o f Articl e 5 Partie s t o othe r

Partie s o f th e Protocol , an dth e Unite dState s believe s tha t it mus t procee dwit

hidentificatio n o

f thes e countrie s a t

thi s time , base do n th e bes t availabl e informatio n i n orde r t o allo w fo

r effectiv e us e o

f th e potentia l productio n allowance s permitte dunde r th e Protoco l durin g th e firs t contro l period

. U.S

. industry ha dplanne dt o increas e it s productio n base do n goo d fait htha t countrie s woul dreport

i n a timel y manne r

th e provision s state di n th e Protocol

. Indeed , severa l companie s exporte dt o countrie s tha t wer e propose da s Articl e 5 Partie s i n th e Federa l _.egkt e Notic e publishe dlas t July

. In suc hcases , thes e countrie s hav e benefite dfro

mth e suppl y o

f thes e chemicals , yet

th e U.S

. producer s hav e no t bee n abl e t o increas e thei r productio n o

f thes e chemical s unde r

th e provision s o

f th e Protocol

. It

i s possibl e tha t domesti c producer s woul dno t hav e exporte dt o thes e countries , i f the y ha d know n tha t

the y woul db e unabl e t o increas e thei r

production

. I

f suc h producer s ar e unabl e t o increas e thei r productio n unde r

th e limit s o

f th e Protocol , i t

i s th e domesti c user s wh o ar e ultimatel y deprive do

f thes e chemicals

. Fo r thes e reasons , th e Agenc y believe s tha t

i t mus t publis hatentativ e lis t o f Articl e 5 Parties

. EP

A i s publishin g thi s lis t toda y t o provid e affecte dcompanie s withsufficient time withi n thi s contro l perio dt o adjus t thei r productio n schedules

. Th e Agenc y obtaine dindividua l country pe r capit a consumptio n dat adirectl y fro mth e countrie s o r

fro minformatio n o n 198 6 consumptio n estimate s recentl y receive d fro mth e Secretariat

. Base do n thi s information , th e Agenc y announce s thre e countrie s tha t tentativel y qualif

y a s Articl e 5 countries

. Thes e countrie s ar e Mexico , Venezuela , an dThailand

. Thes e thre e countrie s ar e Partie s t o th e Protoco l an dar e considere db y th e Secretaria t a s developin g countries

. Th e Agenc y ha s assumed , base do n th e bes t availabl e information , tha t

thei r individua l calculate dleve l pe r

capit aconsumptio n i s les s tha n
. 3 kilogram

. EP A emphasize s tha t thes e countrie s hav e no t

yet reporte dthei r

calculate dleve l o

f pe r capit aconsumptio n fo

r th e require d period , th e dat e o n whic hth e Protoco l entere dint o effect

fo r thes e countries , an dtha t th e Secretaria t

ha s no t yet declare dthes e countrie s a s Articl e 5 Partie s fo r thi s reason
. However , base d o n informatio n th e Agenc y ha s recentl y receive dconcernin g thes e countries , EP A may tentativel y assum e tha t thei r pe r capit aconsumptio n wa s belo w
. 3 kilogra ma t th e time tha t

th e Protoco l entere dint o effect

fo r thes e countries

. Th e Agenc y ha s receive dinformatio n fro mth e Secretaria t

tha t Venezuela' s calculate dleve l pe r

capit aconsumptio n wa s "belo w
. 3 kilograms " fo r 1986

. Recen t informatio n fro

mth e Unite d States ' embass y l n Venezuel aindicate s tha t base do n discussio n withth e Venezuelan Environmental Ministry , Venezuela' s pe r

capit aconsumptio n ha s falle n t o almos t

. 2 K g ove r th e pas t year , an dtha t Venezuel aconsider s itsel f o n Articl e 5 Party

. Th e Agenc y ha s als o receive d informatio n fromth e Secretaria t tha t Mexico' s 198 8 calculate dleve l pe r capit aconsumptio n i s "wel l belo w
. 3 kilograms"

. Recen t

informatio n fro

mth e Unite dStates ' embass y i n Mexic o confirme dtha t

Mexic o ha s declare d itsel f a n Articl e S Party an dtha t "Mexico' s control s o n th e us e o f CFC s an dhalon s ar e muc hstricte r tha n thos e unde r th e Protocol" , an dimplie dtha t pe r capit aconsumptio n o

f thes e chemical s hav e droppe dsinc e 1986

. EP A ha s als o receive dinformatio n fro mth e Secretaria t

tha t Thailand' s pe r capit aconsumptio n o

f thes e chemical s i s "wel l belo w
. 3 kg"

. However , th e Secretaria t

warne dEP

A tha t Thailan d ha s no t reporte dal l th e controlle d substance s t o th e Secretariat

. Th e Secretaria t

di dno t identif y th e missin g controlle dsubstances

. Th e Agenc y ha s

no t ye t receive dan y communicatio n fro mThailan do n it s statu s a s a n Articl e 5 Party

. Companie s shoul db e awar e o f Thailand' s situatio n before increasin g productio n t o replac e export s t o thi s country a s a n Articl e 5 Party

. Th e Agenc y propose dVenezuel aan d Mexic o a s Articl e 5 Partie s i n Appendi x E(5

. F R29353 ) o n Jul

y 13.1989

. Today' s notic e complete s rulemakin g fo r thes e countries

. Th e Agenc y di dno t propos e Thailan dsinc e i t

wa s no t

_Party t o th o Protoco l a t

tha t time

. However , th e Agenc y believe s tha t

it mus t no w announc e Thailan da s a n Articl e S Party withou t firs t proposin g suc hstatu s unde r S U.S.C

. 553(6)(B ) whic hprovide s tha t a n Agenc y ma

y dispens e with notic e an dcomment

fo r goo dcaus e o n ground s o f impracticality o r

contrar y t o th e publi c interest

. Th e Agenc y doe s no t believ e tha t

ther e i s sufficien

t time fo r industry t o tak e advantag e o f th e provision s o

f th e Montreal Protoco l b y th e en do f th e contro l perio d(June 30 , 1890) i f th e Agenc y wer e t o procee dwith notic e an dcomment

o n thi s country

. In addition , i n th e Notic e o

f Propose d Rulemaking , EP

A announce dth e criteri a unde r whic hacountry coul db o include da s a n Articl e 5 Party

. Th e Agenc y ha s exhauste dal l authoritativ e resource s (th e Secretaria t o f th e Protoco l an dth e governmen t

o f Thailand ) wh o woul dhav e th e bes t

knowledg e o

f Thailand' s status , an dbelieve s tha t notic e an dcomment

woul dno t

likel y provid e additiona l dat afo r thi s country

. I n th e future , th e Agenc y intend s t o propos e additiona l Articl e 5 Partie s fo r notic e an dcomment , an dt o revie w datu

. i f an y i s available , receive ddurin g th e publi c comment

period , before fina

l promulgatio n o

f thei r status

. EP

A wil l procee daccordingl y whe n th e Secretaria t

canno t "officially " declar e Articl e S Party statu s fo

r technica l reason s despit e dat aan danalysi s tha t indicat e th e country D

O qualifies

. However , i

f th e Secretaria t

shoul d formally designat e acountry a s a n Articl e 5 Party , th e Agenc y woul dvie w th e additio n of

tha t country t o Appendi x Ea s apurel y ministeria l tas k fo r whic h notic e an dcomment

wa s unnecessary
. Therefore , th e Agenc y shal l a t tha t time procee dt o amen dAppendi x Ethroug ha technica l amendmen t

withou t an y notic e an dcomment

period

. Domesti c companie s that

hav e exporte dt o thes e thre e countrie s wil l receiv e "authorizations " at thei r reques t t o increas e thei r

productio n unde r

th e limit s o f th e Protocol

. Such authorization s ar e vali dfo r only thi s contro l period

.

### 2581 4 Federa l Registe r / Vol

. 55 , No

. 12 1 /

Friday , Jun

e 22 , 199 0 / Rule s andRegulation s P. 5

However , sinc e thi s designatio n i s no t base do n consumptio n informatio n for th e specifie dtime period , th e dat e o n whic hth e Montrea l Protoco l entere d int o effect fo r th e developin g country , bu t o n informatio n tha t

suggest s suc h status , th e Agenc y consider s thi s lis t a s tentative

. I

f th e Agenc y shoul dlear n a t a late r dat e tha t thes e countrie s ar e no t Articl e 5 Partie s (i.e. , the y d o notappea r o n a n eventua l lis t

develope db y UNEP) , th e Agenc y shal l delet e thes e countrie s
. fro mappendi x E , an drescin dan y authorization s t o increas e productio n fo r export s t o thes e countries

. T o date , th e Agenc y ha s no treceive d consumptio n estimate s fo r man y of th e othe r developin g countrie s tha t ar e Party t o th e Protocol , o r

hav e receive d report s tha t

ar e inconsisten t

with report s t o th e Secretariat

. Th e Agenc y wil l continu e t o wor

k throug hit s embassie s an dth e Secretaria t t o determin e th e pe r

capit aconsumptio n of controlle dsubstance s fo

r al l developin g countrie s tha t

ar e Part y t o th e Protocol

. Additional Informatio n 1. Executive Order

12291 Executiv e Orde r

(E.O. ) 1229 1 require s th e preparatio n o

f aregulatory impac t analysi s fo

r majo r rules , define db y th e orde r a s thos e likel y t o resul t

in : (1 ) A n annua l effec t o n th e econom y o f $10 0 millio n o r more ; (2 ) A majo r increas e i n cost o r price s fo r consumers , Individua

l industries , federa

l stat e o r loca l governmen

t agencies , o

r geographi c industries ; o

r (3 ) Significan t advers e effect

s o n competition , employment

, investment, productivity , innovatio

n o r o n th e abilit y o f the Unite dStates-basedenterprise s to compet e wit hforeig n basedenterprise s i

n domesti c o r expor t markets

. : EP A determine dtha t

it s Augus t

12 , 1988 , final rul e t o protec t

stratospheri c ozon e met

wit hth e definitio n o

f amajo r rule , an dtherefore prepare daregulatory impac t analysi s (RIA)

. Sinc e thes e amendment s d o no t

impos e an y significant burden s a s define db y E.O

. 12291 , th e RI

A prepare dfo

r th e final rul e fulfill s th e executiv e order' s requiremen t fo r thes e proposals

. 2. Paperwork

Reduction Act Th e informatio n collectio n requirement s containe di n th e fina l rul e publishe do n Augus t

12,198 8 (5 3 F

R 3056 ) hav e bee n approve db y th e Offic e o f Managemen t

an dBudget

(OMB ) unde r th e provision s o

f th e Paperwork Reductio n Act , 4

4 U.S.C

. e t

seq
. an d hav e bee n assigne dOM

B contro l numbe r 2080-0170

. Sen dcomment s regardin g th e burde n estimat e o r

an y othe r

aspec t o f thi s collectio n of

information , includin g suggestion s fo

rreducin g th e burde n t o Chief , Informatio n Polic y Branch , PM

223 , U.S

. Environmental Protectio n Agency , 401 M Stree t

SW. , Washington , D C 2046 0 an dth e Offic e o

f Informatio n en dRegulatory Affairs , Offic e o f Managemen t

an dBudget

Paperwork Reductio n Projec t

(2080-0170) , Washington , D C 20530 , marke d "Attention : Des k

Office r o f EPA"

. 3. Regulatory.Flexibility Act *-*

- Th e Regulator

y Flexibility Act , 5 U.S.C

. 601-612 , require s tha t Federa l agencie s examin e th e impact s o f thei r regulation s o n smal l entities

. Unde r 5 U.S.C

. 604(a) , wheneve r

a n agenc y i s require dt o publis hagenera l notic e o f propose drulemaking , i t

mus t prepar e an dmak e availabl e fo

r publi c comment a n initial regulatory flexibilit y analysi s (RFA)

. Suc ha n analysi s i s no t require d i f th e hea dof

th e agenc y certifie s tha t

a rul e wil l no t

have , asignificant

numbe r o f smal l entities , pursuan t

t o 5 U.S.C

. 605(b)

. EP A prepare da n initia l RF

A i n support o f it s final rule , an dn o additiona l RF

A nee db e prepare dfo

r thes e amendments

. Dated : Jun e 15,1990

. Willia mK

. Reilly , Administrator. Lis t o f Subject s i n 40 CF

RPar t82 Stratospheri c ozone
. PAR T 82—PROTECTIO

N O F STRATOSPHERI C OZON E 1

. Th e Authority citatio n for par t 8 2 continue s t o rea da s follows : Authority : 4

2 U.S.C

. 7457(b)

. 2

. Part 8 2 i s amende db y addin g appendi x Et o rea da s follows : Appendi x E—Articl e 5 Partie s Mexico , Venezuela , Thailand

. [F RDoc

. 90-1452

3 File d6-21-.0 ; 8:4

5 am )
BILLING COO E 6560-SO- M