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# OAR Box 

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## Document

Number: 

# 10 ) FE D RE G PROTECTIO N O F OZON E 6/15/9 0

Docket Number: 

# A-87-2 0

Printed 5/9/200811:25:59AM

Sheet 10of 60P. 2 

# A-87-20

Frida y Jun e 15 , 199 0

e s a 

# Environmenta l

Protectio n Agenc y
4 0 CF R Par t 8 2 Protectio n o f Stratospheri c Ozone ; Fina l Rul eP. 3

2449 0 Federa l Registe r / Vol

. 55 , No

. 11 6 /

Friday , Jun e 15 , 199 0 / Rule s an dRegulation s
ENVIRONMENTA L PROTECTIO N AGENC Y 4 0 CF R Part 8 2 [FHL-3716-2 ] Protectio n o f Stratospheri c Ozon e AGENCY : Environmental Protectio n Agency

. ACTION : Final amendmen t

t o th e fina

l rule

. SUMMARY : Today' s notic e amend s EPA' s Augus t 12,198 8 rul e (4

0 CF Rpar t 82 ) implementin g th e Montrea l Protoco l o n Substance s Tha t

Deplete th e Ozon e Layer , atreat y t o limi t

th e productio n an dconsumptio n o

f chlorofluorocarbon s an dhalons

. Thi s amendmen t conform s EPA' s rul e with agreement s reache db y th e Partie s t o th e Montreal Protoco l concernin g th e implementatio n o f th e Protocol

. Thi s amendmen t expand s th e definitio n o

f export s t o includ e use dan d recycle dcontrolle dsubstances , grant s additiona l allowance s t o an y perso n wh o use s controlle dsubstance s a s a feedstoc k fo r othe r substances , an d require s producer s t o maintai n record s o f spill s or othe r release s abov e ad e minimi s leve l an dinclud e thes e a s par t o f production

. Th e Agenc y propose dthes e amendment s o n Jul

y 12,198 9 (54 F

R 29353)

. At tha t time , EP A als o propose d an amendmen t

tha t allowe dproducer s o f thes e chemical s t o increas e thei r productio n fo

r th e purpose s o

f "industria l rationalization " an d suspende d§ 82.1 1 o

f 40 CF Rpar t 8 2 that allowe dth e Unite dState s limite d increase s i n it s productio n o f controlle d substance s fo

r export s t o Parties

. Th e Agenc y publishe dth e amendmen t concernin g industria l rationalizatio n o n February 13,199 0 (5 5 F

R5007)

. During it s publi c comment period , EP A receive dcomment s concernin g thes e amendment s fro

meight companie s an dorganizations : fou

r chemical producer s (Racon , Pennwalt , Allied

Signal , an dD

u Pont) ; thre e use r companie s (Vulcan , Ausimon t an d Halocarbon) ; an don e industry associatio n (Halogenate dSolvent s Industry Allianc e (HSIA))

. EFFECTIV E DATE : Jun e 15,1990

. FO R FURTHE R INFORMATIO N CONTACT : Davi dLee , Regulator

y an dAnalysi s Branch , Global Chang e Division

. Office o f Atmospheri c an dIndoo r

Air Programs , Office o

f Air an dRadiation

. ANR-445 , 40 1 M St

. SW. , Washington

. DC 20460

. (202

) 475-7497

. SUPPLEMENTAR

Y INFORMATION

: O n Augus t 12,1980 , EP

A promulgate da fina l rul e t o limit

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

. Th e rul e require s anear-term 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 CF C -11 , -12 , -113 , •'114 , an d-11 5 base do n thei r relativ e ozbn 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

. It

als o limit s production

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 Clean Ai r

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

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

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

effect whe n th e Protoco l entere dint o forc e o f January 1 , 1989

. Th e rul e implement s th e Protocol' s requirement s t o contro l productio n an d consumptio 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 dimporte dthes e chemical s i n 1986 , base do n thei r 198 6 level s o f thes e activities

. Producer s receive dpotentia 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 potential productio n allowance s coul db e converte dt o productio n allowance s t o replac e export s t o developin g country Partie s whos e pe r

capit aconsumptio n o

f thes e chemical s i s les s tha n
. 3 kg , or upo n receip t

o f productio n right s fro

m anothe r Party tha t

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

. Today th e Agenc y amend s severa l section s o f thi s fina l rule

. Thes e amendment s ar e base do n agreement s concernin g implementatio n o f th e Montreal Protoco l reache db y nation s tha t ar e Partie s t o th e Protoco l at thei r firs t meetin g i n Helsinki

. Finland , durin g th e wee k o f Ma y 1,1989

. Th e Expor

t o f Use dor Recycle d Controlle dSubstance s Th e firs t amendmen t

concern s th e fina l rule' s definitio n o

f exports

. I n th e fina l rul e publishe din Augus t 1988 , EP A exclude drecycle dan duse dcontro l substance s f

ro mth e definitio n o

f export s exclude dexport s o f suc h substance s fro

mth e reportin g requirements , an dpreclude dexportin g companie s fro mclaimin g additiona l consumptio n allowance s unde r § 82.1 0 an dauthorizatio n t o convert unde r § 82.1 1 fo r

export s o f suc h substances

. Th e Agenc y wa s concerne da t tha t time tha t definin g export s t o includ e recycle d an duse dcontrolle dsubstance s alon g with virgi n controlle dsubstance s woul d ris k U.S ; noncomplianc e withth e Protocol

. Sinc e th e Agency' s rul e define dproductio n t o exclud e recycle d controlle dsubstanees , firm s coul dhav e recycle dthos e substance s withou t expendin g productio n an dconsumptio n allowances

. However , with export s define dt o includ e recycle dsubstances , whe n firm s exporte dth e recycle d substances , the y coul dappl y fo r authorizatio n t o convert

potentia l productio n allowance s equa l t o th e amoun t o f th e recycle dsubstance s exported

. Thus , a s aresul t o f exportin g recycle dsubstance s fo

r whic hn o productio n an dconsumptio n allowance s wer e expended , firms woul drealiz e a ne t increas e in productio n allowance s (u p t o th e 1 0 or

1 5 percen t

limi t o n potentia l productio n allowances ) an d consumptio n allowances

. The y coul d the n us e thes e additiona l allowance s to produc e o r

impor t an dsel l domesticall y controlle dsubstance s i n exces s o f th e amoun t o f th e initia l allocation s authorized ; In thi s amendment , th e Agenc y expand s th e definitio n o

f export s t o includ e recycle do r

use dcontrolle d substance s i n accordanc e wit hth e agreemen t

reache db y th e Partie s i n Helsinki

. Th e Parties ' agreemen t o n th e definitio n o

f export s allow s suc h countrie s t o export

thei r use dcontrolle d substance s an dthe n reimport th e reprocesse do r

recycle dcontrolle d substance , expendin g consumptio n allowance s receive dfo

r exportin g th e chemicals

. Th e Partie s state dthat recyclin g i s a n importan t

contro l optio n t o limi t th e productio n o

f additiona l controlle dsubstance s an dshoul db e encourage dwhereve r

possible

. Minute s t o th e meetin g (Repor

t o f th e Partie s to th e Montrea l Protoco l o n th e Wor k o f thei r Firs t Meeting , Ma

y 4,1989) , stat e in sectio n II , 11 , H , tha t

"importer s an d exporter s o

f bulk use dcontrolle d substance s shoul db e treate dan d recorde din th e sam e manne r a s virgi n controlle dsubstance s an dinclude di n th e calculatio n o

f aParty' s consumptio n limits"

. Th e Agenc y believe s that th e U.S

. domesti c programshoul db e consisten t withth e internationall y accepte ddefinition s reache db y agreemen t

o f th e Parties

. I

n thi s case , th e expande ddefinitio n o f export s benefit s domesti c recyclin g companie sP. 4

Federa l Registe r/

Vol

. 55 , No

. 11 6 /

Friday , Jun e 15 , 199 0 / Rule s an dRegulation s 2449 1

tha t inten dt o trad e i n use dan drecycle d controlle dsubstances

. Th e Agenc y furthe r

believe s tha t definin g export s unde r

th e U.S

. rul e t o includ e recycle do r

use dcontrolle d substance s wil l hav e n o advers e effec t o n stratospheri c ozon e levels

. Controlle dsubstance s produced , recycle dan dexporte dal l i n th e sam e contro l perio dwil l no t

yiel dane t increas e i n consumptio n allowance s sinc e consumptio n allowance s wer e expende dan drecoupe di n th e sam e contro l period

. Controlle dsubstance s produced , recycle dan dexporte di n differen t contro l period s wil l als o no t affec t th e ozon e layer

. A controlle d substanc e eventuall y recycle dcoul d hav e bee n release do r

emitte ddurin g th e contro l perio dwhe n i t wa s produce d an dwhe n consumptio n allowance s wer e expende dfo r

it

. Instead , recyclin g result s i n th e consumptio n o r us e (i n th e sens e o f emission ) o f

asubstanc e bein g transferre dfro mth e perio di t wa s produce dt o th e perio di t wa s exported

. Thus , th e ne t

effec t o n th e environmen t woul db e zer o ' sinc e al l tha t occurre d wa s a n inter-tempora l transfe r o f consumptio n (o r

emissions ) fro mon e contro l perio dt o another

. Sinc e th e chang e wil l hav e n o advers e environmental«effect , an dsinc e th e Partie s t o th e Protoco l hav e agree dt o thi s definitio n o f

exports , th e Agenc y expand s th e definitio n o f export s i n it s rul e t o includ e use do r

recycle d controlle dsubstances

. Tw o companie s commente do n th e propose damendmen t

t o expan dth e definitio n o f

export s t o includ e controlle dsubstance s tha t ar e eithe r use do r recycled

. Vulca n wrot e tha t th e amendmen t

i s unclea r

a s t o whethe r

o r no t EP A propose dtha t

recycle dan d use dCFC s woul db e counte dagains t a company' s consumptio n allowances

. Th e responden t

state dtha t

Partie s t o th e Protoco l intende dtha t

recycle dCFC s shoul dno t

b e counte dagains t

a country' s consumptio n allowanc e an d that , therefore , EP A shoul dreflec t tha t inten t i n it s fina l rule

. Th e amendmen t

establishe s tha t recycle dan duse dCFC s ar e treate di n th e sam e manne r

a s virgi n CFC s fo r purpose s o f

calculatin g acompany' s leve l o f consumptio n allowances

. I n short , recycle dan duse dcontrolle d substance s tha t

acompan y import s ar e counte dagains t

tha t company' 3 consumptio n allov/ances , whil e recycle d an duse dcontrolle dsubstance s tha t a compan y export s ar e th e basi s fo r

1 There i s achanc e fo

r increase dproductio n u

p to th a1 0 percen t

cap , fo r the expor t o f use do r recycle dcontrolle dsubstance s produce dprior t o Jul y 1.1989

. obtainin g consumptio n allowance s fro m EPA

. Use dcontrolle dsubstance s tha t ar e recovere dwithi n th e Unite dState s an dthe n recycle ddomesticall y ar e no t affecte db y thi s rule

. Allied-Signa l commente dtha t onl y 5 0 percen t o f use dCFC s importe dint o th e Unite dState s ca n b e recycle dint o re
usabl e CFCs

. Suc hadiscrepanc y woul d discourag e U.S

. recycler s fro mimportin g use dmaterials , an dthu s hinde r othe r countrie s i n thei r

recyclin g o f

controlle d substances

. Allied-Signa l suggeste dtha t a n importe r

o f use dcontrolle d substance s shoul dnee dconsumptio n allowance s equivalen t

t o onl y one-hal f o f th e calculate dleve l o f use dCFC s t o impor t use dcontrolle dsubstances

. However , EP A ha s receive dn o documentatio n supportin g th e clai mtha t onl y 5 0 percen t

o f use dCFC s ca n b e recycled

. Th e percentag e o f th e controlle dsubstanc e reclaime ddepend s o n th e qualit y o f

th e use dcontrolle d substanc e an dth e proces s use dfo r reclamatio n o r

distillation

. Allowance s fo r

th e Consumptio n o f Controlle dSubstance s a s Feedstoc k Th e Agenc y als o amend s th e fina l rul e t o allo w person s wh o consum e o r transfor mpurchase dcontrolle d substance s a s feedstoc k fo r othe r substance s t o clai mconsumptio n an d productio n allowance s equa l t o th e allowance s expende dfo r th e productio n o r importatio n o f

th e consume do r transforme dcontrolle dsubstance

. Previously , onl y person s wh o produc e an dconsum e th e controlle dsubstanc e i n th e productio n o f

othe r substance s coul d exemp t th e amoun t

o f consume d controlle dsubstance s fro mth e productio n an dconsumptio n limit s se t b y th e fina l rule

. Th e Agenc y state di n it s fina l rul e publishe do n Augus t

12,1988 , tha t trackin g controlle dsubstance s produce d an dtransforme db y differen t person s woul db e administrativel y burdensom e an dpresen t

verificatio n problem s fo r complianc e o r

enforcemen t

proceedings

. Furthermore , th e Agenc y coul dno t resolv e a t

th e tim e whethe r

th e perso n wh o produce dth e controlle dsubstanc e o r th e perso n wh o transforme dth e controlle dsubstanc e shoul dreceiv e th e credit

. Thi s issu e wa 3 eve n mor e difficul t t o resolv e wher e transformation s involv e controlle d substance s produce di n anothe r country

. I n Marc h1988 , technica l advisor s t o th e Protoco l meetin g i n Nairob i coul dno t agre e o n whic hcountr y shoul db e grante dcredit s i n th e cas e o f transformatio n o f

feedstock s trade d betwee n countries

. A t thei r meetin g i n Helsink i i n Ma y o f 1989 , th e Partie s resolve dthi s issu e an d agree dtha t aPart y coul dexclud e fro m it s limit s an y controlle dsubstance , eithe r importe do r

manufacture d domestically , tha t

th e Part y entirel y use s a s feedstock

. Minute s t o th e meetin g (Repor t o f th e Partie s o n th e Wor k o f thei r Firs t Meeting , Ma y 4,1989) , stat e i n Paragrap h 5 8 tha t

i t i s th e Parties ' understandin g "tha t

controlle d substance s use da s chemica l feedstock s i n th e manufactur e o f

othe r chemical s shoul db e exclude dfro mth e calculatio n o f 'controlle dsubstance s produced'. " Du e t o thi s agreement , th e Agenc y amend s th e fina l rul e t o allo w companie s tha t

us e controlle d substance s a s feedstoc k t o clai m allowance s equa l t o th e allowance s expende dt o impor t

o r t o produc e thes e substances , regardles s o f wh o originall y produce do r

importe dth e controlle d substance

. A compan y tha t import s o r purchase s fro ma n importe r coul d reques t consumptio n allowance s t o replac e th e consumptio n allowance s tha t wer e expende dfo r

th e impor t

o f consume dcontrolle dsubstances

. A compan y tha t

purchase s controlle d substance s fro maproduce r coul d reques t bot h productio n an d consumptio n allowance s t o replac e thos e allowance s expende di n th e productio n o f

th e consume dcontrolle d substances

. Th e fina l rul e alread y provide s tha t producer s o f

controlle dsubstance s ma y subtrac t fro mthei r

productio n an d consumptio n th e calculate dleve l o f controlle dsubstance s produce db y tha t compan y tha t

ar e consume da s feedstock s b y tha t

company
. I n accordanc e wit hth e decisio n tha t purchaser s o f

controlle dsubstance s receiv e allowance s fo r

controlle d substance s tha t

ar e consumed , th e Agenc y wil l allo w aproduce r o f controlle dsubstance s wh o consume s controlle dsubstance s produce db y a differen t perso n t o subtrac t

tha t leve l o f controlle dsubstanc e fro mit s calculate d level s o f productio n an dconsumption

. Th e Agenc y understand s tha t consumptio n o f

afeedstoc k

require s th e alteratio n o f

th e molecula r

structur e o f th e controlle dsubstanc e resultin g i n a differen t chemical

. Thi s wil l disallo w claim s o f consumptio n i n whic h a controlle dsubstanc e i s merel y blende d wit h othe r

substance s resultin g i n a stabl e mixtur e o f

th e origina l controlle d substanc e wit h othe r

substances

. Vulca n an dth e Halogenate dSolvent s Industr y Allianc e supporte dth e propose damendmen t

t o allo w credi t

fo r controlle dsubstance s whic h ar e consume di n th e productio n o f othe r substances

.P. 5

2449 2 Federa l Registe r/ Vol . 55 , No

. 11 6 /

Friday , Jun e 15 , 199 0 / Rule s an dRegulation s

Tw o companie s commente do n th e administrativ e burde n o f complyin g wit h th e propose dregulation

. Bot h Halocarbo n (directl y an dthroug h lega l counsel ) an dAusimon t commente dtha t EPA' s propose drul e regardin g th e transformatio n o f

controlle dsubstance s wa s "cumbersome " becaus e acompan y mus t transfor mth e controlle dsubstanc e befor e i t i s grante dadditiona l allowances

. Halocarbo n state dtha t th e Protoco l doe s no t

requir e an y elaborat e applicatio n an ddocumentatio n procedur e o f

suc h atransformation

. Bot h companie s requeste dtha t EP A gran t additiona l allowance s prio r t o th e actua l consumptio n o f

th e controlle d substances

. Halocarbo n requeste dtha t i t receiv e th e treatmen t

tha t i s believe d wa s accorde dt o producers , tha t is , tha t producer s nee dno t

consum e controlle d substance s befor e exemptin g thei r productio n fro mth e regulator y limits

. I n response , th e Agenc y state s tha t i n th e cas e o f

producer s an dnonproducers , credi t fo r transformatio n i s availabl e onl y afte r

th e transformatio n ha s occurred , no t

prio r t o th e transformation

. Th e Agenc y believe s tha t th e environmen t

woul db e a t

risk i f credi t fo r transformatio n wer e extende d prio r t o th e transformatio n sinc e transformatio n migh t

no t occu r afte r all

. Halocarbo n note dtha t

EP A coul d inspec t plant s o n aroutin e basi s t o ensur e compliance , bu t th e Agenc y note s tha t

if aviolatio n doe s occu r

i t ma y b e difficul t

t o remed y th e environmenta l effects

. Fo r thi s reason , EP A insist s tha t

transformatio n occu r befor e th e Agenc y wil l gran t productio n and/o r consumptio n allowance s t o th e transformin g company
. Furthermore , th e Agenc y note s tha t thi s administrativ e approac h o f grantin g allowance s afte r

transformatio n i s consisten t

wit h othe r

procedure s fo r grantin g additiona l allowances

. Exporter s mus t

prov e t o EP A tha t

a n expor t o f controlle dsubstance s ha s occurre dbefor e th e Agenc y wil l gran t additiona l consumptio n allowance s unde r 4 0 CF R82.1 0 an dadditiona l productio n allowance s unde r 4 0 CF R 82.11

. Contrar y t o Halocarbon' s comments , producer s ca n exemp t th e productio n o f

controlle dsubstance s fro mthei r

reporte dproductio n onl y afte r th e transformatio n ha 3 occurre dunde r 4 0 CFR82. 3 an d82.13

. Ausimon t

an dHalocarbo n wrot e tha t acompan y tha t

doe s no t

hav e a n initia l quot afro mwhic h t o dra w mus t pa y a hig h pric e t o obtai n allowance s (assumin g suc h allowance s ar e availabl e fo r

trade) , whil e Halocarbo n furthe r state dtha t

producin g companie s woul dno t

b e willin g t o sel l CFC s fo r transformatio n unles s the y wer e give n additiona l allowance s i n advance

. Bot h Ausimon t

an dHalocarbo n suggeste d tha t th e propose damendmen t provid e fo r som e kin do f

transformatio n allowance s allocate dinitiall y t o companie s tha t

inten dt o transfor m controlle dsubstances

. Th e Agenc y believe s tha t industry' s comment s d o no t

reflec t th e likel y dynamic s o f

th e market

. Ther e i s n o reaso n t o believ e tha t

producer s woul d no t sel l controlle dsubstance s fo r transformatio n purpose s withou t firs t bein g provide dadditiona l allowances , bu t woul dsel l controlle dsubstance s fo r othe r purpose s withou t

bein g provide d suc h allowances

. I n afre e marke t producer s ar e mos t

likel y t o sel l controlle dsubstance s t o whomeve r wil l pa y th e market-clearin g price , regardles s o f thei r intende dus e fo r

th e chemicals

. Indeed , give n tha t

transformatio n wil l yiel dadditiona l productio n allowances , producer s an dtransformer s coul d establis h acontractua l relationshi p whereb y th e transformin g compan y woul dagre e t o transfe r allowance s t o th e produce r

obtaine dfo r

th e transformatio n i n exchang e fo r abelo w marke t pric e fo r th e controlle d substanc e t o b e transformed

. I f companie s ar e unabl e t o establis h suc h arelationship , the n transformin g companie s ma y initiall y nee dt o pa y th e marke t pric e fo r controlle dsubstances

. However , onc e th e transformer s hav e consume dthes e chemical s an dobtaine d allowance s fro mEPA , th e companie s coul dsel l th e allowance s t o producers , recoupin g par t

o f th e purchas e pric e o f th e CFCs

. I n fact , onc e acompan y obtain s allowance s fo r

transformation , th e compan y ma y trad e thes e allowance s t o an y importe r o r produce r i n exchang e fo r

controlle dsubstances

. Bot h respondent s commente dtha t eve n i f th e compan y ca n fin danothe r compan y willin g t o sel l o r trade , ther e remain s atimin g proble mi n tha t th e compan y woul dhav e t o complet e buyin g domesticall y o r importing , transformin g an dapplyin g fo r additiona l allowances , al l withi n th e sam e contro l period

. Th e Agenc y emphasize s tha t th e timin g an dprocedur e fo r purchasin g an d transformin g controlle dsubstance s an d th e subsequen t

submissio n of

th e reques t fo r allowance s t o EP A an dthei r trad e ar e busines s decisions , an dtha t th e rul e provide s som e flexibilit y fo r industr y t o pla n thei r

productio n schedule s accordingly

. Th e Agenc y wil l gran t additiona l allowance s fo r transformatio n onl y fo r th e contro l perio di n whic htransformatio n occurs
. Indeed , companie s ma y fin dthi s limitin g i f the y inten dt o transfor mcontrolle d substance s durin g th e las t day s o f th e contro l perio dwhe n ther e i s insufficien t tim e t o request , receiv e an dtrad e allowance s t o replac e thos e consume d chemicals

. However , th e rul e allow s companie s t o purchas e controlle d substance s i n on e contro l perio dtha t coul db e transforme di n th e nex t contro l period

. I n thi s scenario , th e Agenc y woul dgran t

additiona l allowance s i n th e secon dcontrp. 1 perio dfo r transforme dcontrolle dsubstance s produce di n th e first

. Th e Agenc y believe s tha t

companie s coul dpla n accordingl y t o ensur e sufficien t tim e t o obtai n additiona l allowance s t o replac e thos e controlle dsubstance s consume d i n th e productio n o f

othe r chemicals

. Exporter s wh o desir e additiona l consumptio n allowance s unde r 4 0 CF R 82.1 0 als o fac e th e sam e timin g problem

. Halocarbo n an dAusimon t furthe r commente dtha t

th e propose d amendmen t

woul dinhibi t

o r eve n prohibi t th e us e o f

CF C feedstock s t o mak e CF C substitute s b y non-producer s o f CFCs

. Commenter s wer e concerne d tha t producer s wh o ar e developin g substitute s ma y exclud e othe r manufacturer s fro mthi s marke t b y deprivin g competin g companie s fro m controlle dsubstanc e feedstocks

. However , di e Agenc y i s no t awar e o f ho w th e rul e wil l inhibi t th e us e o f

CF C feedstoc k

t o mak e CF C substitute s b y non-producers

. I f

th e commenter s believ e tha t

producer s wil l den y feedstoc k

t o non-producer s t o preven t competition , th e Agenc y note s tha t suc h asituatio n woul dexis t absen t thi s rul e regardin g credi t

fo r transformatio n o f controlle dsubstances

. Bot h companie s propose dprocedure s t o gran t allowance s prio r

t o transformation

. Halocarbo n recommende dtha t

CFC s produce dfo r feedstoc k

us e b e exclude dfro mth e allocate dproductio n quota s fo r controlle dsubstances

. Specifically

. Halocarbo n propose dtha t ause r o f CFC s fo r feedstock s appl y t o EP A fo r a documen t

certifyin g tha t

i t ma y purchas e controlle dsubstance s whic h wil l no t coun t agains t aproducer' s allowances

. Halocarbo n suggest s Uiat EP A accep t

application s fro mnon
producin g feedstoc k

user s fo r "authority " t o bu y limite dquantitie s of controlle dsubstance s "outsid e o f allocations. " Th e amoun t woul db e specifie db y EP A a s "a n acceptabl e d e minimis " (Halocarbo n recommend s ad e minimi s leve l o f

tw o millio n kilograms)

. Ausimon t

suggeste dtha t

suc h transformatio n allowance s woul db e issue dt o aspecifi c compan y base do n informatio n o f

intende dtransformation ,P. 6

woul db e non-transferable , an dwoul d b e renewe dannually

. Producer s o r importer s coul dthe n appl y t o EP A fo r transformatio n credit s onc e transformer s ha dbough t

controlle d substance s fro

mthe mwith transformatio n allowances

. Th e Agenc y agai n state s tha t i t canno t gran t allowance s t o companie s fo r controlle dsubstance s t o b e transforme d a t alate r date

. Suc ha n approach'woul d b e administrativel y impractical ; how , fo r instance , woul dth e Agenc y determin e whethe r an y particula r

compan y shoul d b e grante dallowance s t o bu y controlle d substance s "outsid e allocation " an di n wha t amounts ? It

i s no t clear tha t th e Agenc y coul do r

shoul drel y o n a company' s historica l transformatio n rat e o r productio n plan s t o gran t suc h authority ; us e of

historica l rate s coul d preclud e ne w entrant s i n th e marke t an d ho t reflec t curren t demand , an d productio n plan s d o no t

provid e assurance s tha t

wha t i s produce dwil l al l b e sold

. A s note dabove , grantin g credi t befor e transformatio n occurre d woul db e inconsisten t

withothe r provision s o

f th e rul e grantin g allowance s an dincrease s th e likelihoo d o f potentia l violatio n o

f di e Montrea l Protocol

. Halocarbo n questione dth e nee dfo r th e Agenc y t o defin e th e transformatio n componen t

o f th e definitio n o

f productio n t o cove r

onl y controlle d substance s tha t

hav e bee n wholl y use d an dconsumed

. Whil e Halocarbo n recognize dth e importanc e o f preventin g overproductio n unde r

th e Protocol , Halocarbo n suggeste dtha t thi s i s no t adequat e justificatio n fo

r th e definition , base dupo n EPA' s "ampl e investigativ e an denforcemen t

powers. " Th e Agenc y believe s th e preventio n o f an y meaningfu l risk

o f overproductio n t o b e more tha n sufficient

justificatio n fo

r th e amendment

. I n addition , i t woul db e administrativel y cumbersom e t o gran t pre-transformatio n allowances , an dthe n audi t transformer s t o assur e tha t transformatio n occurred

. In anothe r

propose dapplicatio n scheme , Halocarbo n recommende dtha t companie s file adocumen t whic hgive s aprototyp e disclosur e o

f it s repetitiv e process , eliminatin g numerou s repetitiv e filing s whic h ar e duplicativ e i n al l respect s excep t

date s an damounts

. Althoug h th e Agenc y believe s that suc h adocumen t

providin g aprototyp e disclosur e o

f it s repetitiv e proces s i s on e alternative , EP

A believe s tha t

th e require dinformatio n i s no t excessive , an dtha t th e affecte dcompan y ca n easil y generat e duplicativ e filings usin g wor dprocessors
. Halocarbo n als o commente dthat th e proposa l faile dt o specif

y th e perio d durin g whic hth e EP A mus t ac t o n request s fo

r allowance s an dt o provid e a n appea l proces s similar t o th e on e require dunde r

4 0 CF R82.1 2 fo r transfers

. In response , th e Agenc y intend s t o proces s suc h report s promptl y upo n thei r

receipt

. However , th e Agenc y emphasize s tha t

th e revie w o

f transfe r request s unde r

§ 82.1 2 an dth e revie w of areques t fo r additiona l allowance s ar e no t th e same
. T o revie w transfe r request s unde r

§82.12 , th e Agenc y review s interna l EP

A record s t o determin e an y outstandin g complianc e issue s an dwhethe r

sufficient allowance s exist

. T o approv e additiona l allowance s whethe r

fo r transformatio n or fo r exports , th e Agenc y mus t revie w busines s document s tha t

may,b e incomplet e o r

incorrect , or
. may hav e numerou s transactions

. Suc h revie w doe s requir e substantia l time i f tlier e ar e meaningful problem s with th e submission

. However , th e Agenc y believe s tha t

a n appea l proces s may benefi t companie s wh o ar e denie d allowance s for

complianc e issues , an d th e Agenc y ha s establishe dsuc h a
. process
. I f th e Agenc y initiall y disallow s a
. reques t fo r allowance s fo

r th e transformatio n o

f controlle dsubstances , th e disallowanc e may b e appeale dt o th e Director , Offic e o

f Atmospheri c an d Indoo r Air Programs , Offic e o

f Ai r an d Radiation , withi n 1 0 day s o f th e disallowance

. Spill s an dVenting s In establishin g di e baselin e fo r th e allocatio n o

f th e 198 6 productio n allowances , di e Agenc y requeste ddia t companie s report

Uiei r productio n level s for 1986

. Sinc e th e Protoco l set s limit s o n productio n (an dconsumption ) a s a mean s o f limitin g stratospheri c ozon e depletion , di e Agenc y intende ddia t productio n dat ainclud e al l controlle d substance s produced , whedie r sol do r spilled/vented

. Bodi spille dan dsol d controlle dsubstance s ha s equa l impact s o n ozon e depletion

. At

leas t on e compan y confirme dwithEP A before submittin g it s repor t

tha t productio n dat ashoul dinclud e spills

. However , EP

A ha s sinc e learne dtha t som e producer s di dno t

includ e spill s i n diei r reporte dproductio n levels , instea d countin g onl y tha t

productio n actuall y sol dplu s chang e i n inventories

. Thes e companie s hav e commente di n thi s rulemakin g lha t

sinc e the y receive dn o productio n allowanc e fo

r thei r 198 6 spills , the y shoul dno t

hav e spill s counte dagains t

die mi n th e future

. First , it shoul db e note dtha t

di e Agenc y distinguishe s betwee n spill s o r venting s an dfugitiv e emissions

. Th e fina l guidanc e documen t

fo r th e stratospheri c ozon e protectio n program

define s fugitiv e emission s a s "emission s tha t occu r i n th e ordinar y cours e o

f th e productio n proces s a s aresul t of leak s fro mflange s o r

valves. " It

i s no t th e intent o f EP A t o includ e suc h emission s a s spills

. A s note db y on e producer , fugitiv e emissio n releas e estimate s ar e base do n th e bes t

engineerin g practice s availabl e an dar e difficult t o quantif

y accurately

. Becaus e suc h emission , release s ar_e..ver

y smal l i n volume an d impractica l t o quantify , EP A decide d tha t the y nee dno t

b e reported

. EP A regret s tiiat

severa l companie s faile dt o includ e spille dcontrolle d substance s i n thei r

reporte d198 6 productio n volume s a s note di n tiieir comments

. Th e dictionary definitio n o f "production " i s dia t

whic h i s mad e o r th e tota l outpu t

o f acompan y o r industry ; th e definitio n does'no t exclud e fro mproductio n tha t

whic h i s no t

sold

. Moreover , give n tiie Protocol' s approac h o f limitin g emission s o

f controlle d substance s b y limitin g productio n (a s wel l a s consumption) , th e nee dfor reporte dproductio n t o includ e both sol d an dspille dsubstance s coul dan dshoul d hav e bee n inferred

. EP A ha s decide dagains t

reopenin g companies ' reporte d198 6 productio n level s t o allo w companie s tha t faile dt o report spill s t o obtai n a n increas e i n thei r productio n allowances

. Th e Agenc y afforde dcompanie s ampl e opportunity betwee n it s Decembe r 193 7 reques t fo r productio n dat aan dit s Augus t 198 8 fina l rul e allocatin g productio n allowance s t o provid e complet e an daccurat e dat ao n whic h t o bas e thei r productio n allowanc e allocations

. I

n addition , th e Unite d State s ha s alread y complie dwith Articl e 7 o f th e Protoco l whic h require dtha t eac h Party report

it s tota l 198 8 productio n t o th e Protoco l Secretaria t b y Apri l 1989 , an di t

i s no t clear tha t th e Unite dState s coul dchang e it s report i n orde r t o increas e it s allowabl e productio n afte r

th e first contro l perio d (Jul y 1,198 9 t o Jun e 30,1990 ) ha s begun

. A t th e sam e time , EP

A canno t permi t thes e companie s t o exclud e spill s from thei r reporte dproductio n i n th e future

. A s note dabove , spille dcontrolle d substance s ar e n o different fro msol d controlle dsubstance s i n thei r ability t o deplet e ozone
. Excludin g spill s coul d resul t i n th e U.S

. exceedin g it s allocatio n unde r

th e Protocol , an d thereb y jeopardiz e complianc e wit hth e Protocol

. Th e Agenc y recognize s tha t producer s hav e a n economi c incentiv e to minimiz e th e numbe r

an dvolume o

f spills

. However , excludin g spill s fro m reporte dproductio n coul dallo w producer s wh o produce din exces s o fP. 7



### 2449 4 Federa

l Registe r/

Vol . 55 , No . 11 6 /

Friday , Jun

e 15 , 1990 /

Rules an d Regulations -
thei r productio n limit s t o reduc e reporte dproductio n b y ventin g o r spillin g th e exces s amounts

. EPA , however , ha s decide dno t t o requir e reportin g o

f d e minimi s spills , i.e. , tha t leve l o f spill s tha t

unde r routin e operatin g procedure s canno t b e detecte d i n time t o avoi dan dtha t

cannot , a s a result , b e accuratel y quantified

. Th e Agenc y ha s se t

th e d e minimi s leve l o

f releas e a t 10 0 pound s (45 kilograms ) pe r spill

. Thi s d e minimi s leve l i s base do n informatio n receive dfro

mpubli c comment s an db y independen t EP A data

. Thi s informatio n indicate s tha t mino r leak s ca n b e reasonabl y inspecte dan dresolve dprio r t o th e releas e o f 100 pound s of

controlle d substance

. Additionally , dat areceive d b y EP A indicate s tha t

producer s ca n readil y measur e an drecor dquantitie s o f controlle dsubstance s spille do r release d t o a t leas t 10 0 pound s (in fact , some dat a indicate s th e ability t o estimat e quantitie s release ddow n t o les s tha n 1 0 pounds)

. Th e selectio n o

f a10 0 poun d de-minimi s leve l effectively exempt s spill s whic h EP

A woul dconside r

t o b e ordinary leak s for

th e purpose s o

f thi s regulation

. Th e Agenc y note s th e wid e rang e o f d e minimi s level s suggeste db y respondents

. On e produce r suggeste da d e minimi s leve l o

f 3,00 0 pounds , statin g tha t thei r curren t reporte dproductio n alread y reflecte dlosse s unde r thi s amount

. Other s suggeste dad e minimi s leve l o f 5,00 0 pound s fo

r a n episodi c spil l over a24-hou r perio dbase do n th e recordkeepin g requiremen t unde r Comprehensiv e Environmenta l Respons e Compensatio n Liabilit y Ac t (CERCLA ) fo r Reportabl e Quantities

. Th e Agenc y believes , however , tha t th e approac h take n t o d e minimi s spill s unde r CERCL A i s no t relevan t t o thi s rule

. Th e d e minimi s leve l o f 5,00 0 pound s se t

unde r th e Superfun dProgra

m wa s base do n suc h chemical propertie s a s toxicity , carcinogenicity , an d reactivity , bu t

no t o n ozon e depletio n potential

. Whil e release s o f 5,00 0 pound s pe r

day may no t

pos e a significant toxicity hazard , i t

may b e significant i n term s o

f ozon e depletion

. Unde r suc h alevel , on e compan y coul d spill , i n theory , acalculate dleve l o f u p t o 828,32 1 kilogram s o

f controlle d substance s over

asingl e contro l perio d withou t it countin g towar dthei r production

. Howeve r

n o compan y seekin g aprofit

woul dpresentl y allo w thi s kin do

f spil l rat e t o persist

. EP A does , however , acknowledg e tha t venting s or

spill s o f greate r tha n 10 0 pound s may occur

infrequentl y a t

wel l operate dplant s a s aresul t o f overpressurize dequipment

. Therefore , EP A wil l excus e tw o venting s o r spill s o f controlle dsubstance s pe r plan t ove r th e de-minimi s leve l o

f 10 0 pounds , fo

r a give n contro l period , i

f thes e individua l venting s o r

spill s ar e les s tha n 100

0 pound s each

. Th e EP

A ha s base dthi s productio n exemptio n o n informatio n reporte db y on e larg e producin g plan t tha t indicate dtha t

spill s greate r

tha n 10 0 pound s wer e infrequent

an dmos t likel y averag e les s tha n tw o ayear , an d tha t spill s greate r

tha n 100 0 pound s wer e rare
. In addition , thi s exempte d volume represent s muc h les s tha n 1 percen t o f eac hproducer' s annua l production

. Thus , base dupo n th e availabl e evidenc e i n th e rulemakin g record , ade

minimi s leve l i s se t

a t 10 0 pound s (45 kilograms ) pe r

spill

. A s clarifie db y amendmen t

o f th e recordkeepin g requirement s a t

§ 82.13 , al l spill s o r release s ove r

10 0 pound s mus t

b e recorded

. EPA , b y amendmen t t o th e definitio n o

f production , i s clarifyin g tha t spill s o r venting s ove r

thi s 100 pound s de-minimi s leve l wil l coun t agains t allowabl e productio n (an d therefore consumption)

. However , a s specifie di n th e amende ddefinitio n of production , eac hproductio n plan t i s allowe dtw o separat e venting s o r spill s o f les s tha n 100

0 pound s each , i n eac h give n contro l period , whic hwil l no t b e counte da s production

. Destructio n Finally , companie s commente do n destructio n technologie s fo r controlle d substances

. Vulcan wrot e tha t EP A shoul dconside r

amendin g th e regulatio n t o incorporat e th e destructio n o f controlle dsubstance s b y th e facilit y producin g acontrolle dsubstance

. Th e responden t

state dtha t

incineratio n woul db e applicabl e technolog y fo r th e destructio n o

f CFCs

. Th e Haiogenate d Solvent s Industry Allianc e als o commente do n th e incineratio n o f CFC s an dsuggeste dtha t

EP A encourag e credi t fo r destroye dcontrolle d substances

. I n response , th e Agenc y note s unde r th e Protoco l tha t

th e Partie s mus t approv e destructio n technologie s before aParty may clai mcredi t

fo r destroyin g controlle dsubstances

. Th e Partie s t o th e Montrea l Protoco l hav e no t a s yet decide do n th e natur e of

destructio n technology

. Th e Agenc y mus t thus awai t th e decision s o

f th e Parties

. Final Amendmen t Toda y EP A modifie s fou

r section s o

f th e final regulation

. Th e Agenc y amend s § 82.3(h ) whic h define s th e export s o f controlle dsubstances

. Th e fina l rul e i s amende dt o includ e recycle dan duse d contro l substance s i n th e definitio n o f requirements , an dpenni t exportin g companie s t o clai madditiona l consumptio n allowance s unde r S 82.1 0 an dauthorizatio n t o convert unde r § 82.1 1 fo r export s o f suc hsubstances

. Sectio n 82.10(a

) wa s als o modifie dt o delet e th e phras e "(othe r

tha n recycle d o r use dcontrolle dsubstances)"

. Th e deletio n o f thi s phas e provide s consisten t regulatory languag e throughou t

th e rul e t o allo w exporter s t o clai mconsumptio n allowance s fo r th e export o f use do r recycle dcontrolle d substances

. Sinc e export s durin g th e curren t contro l perio dprio r

t o thi s amendmen t may mee t th e condition s o

f thi s amendment , EP

A wil l gran t

additiona l consumptio n allowance s fo r pas t export s o f use dor recycle dcontrolle d substances

. Th e Agenc y believe s tha t firm s tha t hav e me t th e condition s o

f today' s amendmen t

shoul db e permitted , a s otiie r Parties ' firms alread y have , additiona l consumptio n allowance s unde r th e term s o

f th e Protocol

. Th e Agenc y als o amend s th e fina l rul e t o allo w person s wh o consum e o r transformpurchase dcontrolle d substance s a s feedstoc k

fo r othe r substance s t o clai ma n allowanc e credi t equa l t o th e allowance s expende dfo r th e productio n or

importatio n o

f th e transforme dcontrolle dsubstance s (§ § 82.9(e) an d82.10(c))

. Person s tha t

us e an dfull

y consum e controlle dsubstance s a s feedstoc k ca n clai mallowanc e credit s equa l t o th e allowance s tha t

wer e expende dt o eithe r impor t o r produc e thes e substances , regardles s o

f wh o originall y produce do r importe dth e controlle dsubstance

. T o receiv e thes e allowances , aperso n mus t report th e name , quantit y an dcalculate d leve l o f controlle dsubstanc e entirel y consume di n th e manufactur e o f anothe r substance , th e nam e o

f th e resultin g produc t o f th e transformation , th e quantity o f th e produc t

transformed , an d indicat e tha t

th e produc t

i s use d commercially

. Th e perso n mus t als o submi t acop y o f th e invoic e o r

receip t documentin g th e purchas e o f th e controlle dsubstance s tha t wer e transforme dan dsuc h othe r informatio n a s may b e necessar y t o trac e th e origi n o f th e controlle dsubstance

. Th e Agenc y require s suc h informatio n t o determin e whethe r productio n an dconsumptio n allowance s wer e expende dfo r th e domesti c us e o

f th e controlle d substance , an dt o verif

y tha t th e controlle dsubstanc e wa s transforme d int o anothe r

substanc e rathe r

tha n destroyed

. Person s wh o d o reques t additiona l consumptio n an dproductio n allowance s mus t

maintai n date drecord s o f th e typ e an dquantity o

f th eP. 8

Fswfieso l Rsgistei r

/ Vo l 55 , No

. 11 8 /

Friday , Jun e 15 , 199 0 / Rule s an dRegulation' s
controlle dsubstanc e transformed , th e quantit y o f

ih e resulting product , an d an y shippin g record s tha t verify , th e sal e o f th e resultin g produc t

( § 82.13(h))

. After reviewin g thi s information , th e Agenc y wil l issu e st

notic e grantin g additiona l consumptio n allowance s fo r consume dcontrolle dsubstance s tha t wer e imported , o r

additiona l productio n
. an dconsumptio n allowance s fo r consumptio n o f

controlle dsubstance s tha t wer e produce ddomestically

. Grante dallowance s wil l equa l tiie calculate dleve l o f

th e controlle d substanc e entirel y consumed , an dwill onl y b e vali dfor

th e contro l perio di n whic h th e consumptio n occurred

. Suc h allowance s wil l entitl e th e holde r t o eithe r produc e o r

impor t additiona l controlle dsubstance s ari dmay b e trade dt o othe r

person s unde r

4 0 CF R 62.12

. Du e t o comment s requestin g a n appea l proces s for

disallowe drequest s fo r additiona l allowance s fo r transformation , th e Agenc y ha s include d a10-day appea l procedur e b y whic h companie s ca n petitio n th e Directo r o f th e Offic e o f

Atmospheri c an dIndoo r Ai r Program s t o reconside r

th e disallowance

. A n additiona l recordkeepin g requiremen t

fo r spill s equa l t o o r

greate r tha n 100 pound s i s require dunde r § 82.13(f)(2)(vii)

. Th e definitio n o f productio n i n % 62-3 i s amende dto includ e thes e spills ; however , th e industry may exemp t

tw o separat e spill s o r ventings , eac hunde r

1000 pounds , fromreportin g productio n a t eac h plan t Th e curren t

wordin g o f

th e recordkeepin g an dreportin g requirement s a t

% 82.1 3 (f)(2)(h) an d (f)(3)(i) i s ahead ? broa denoug h t o appl y t o al l producers , whethe r

o r no t th e controlle dsubstanc e use da s feedstoc k wa s manufacture db y tha t person
. Therefore , i n orde r

t o qualif y for credi t fo r th e consumptio n of

feedstocks

. - producer s nee dt o kee p th e record s an d mak e th e report s require db y g 82.13(f)(2)(ii } an dg 82.13(f)(3)(i) a s wel l a s g 82.13(h)

. 1. Executiv e Orde r

1229 1 Executiv e Orde r

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

aregulatory impac t analysi s for

. 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 effect

o n th e economy o

f $10 0

. millio n o r

more ; (2) A major

increas e i n cost s o r price s fo r consumers , individua l industries

. Federal , Stat e o r loca l governmen t

agencies , o r

geographi c industries ; o r

(3 ) Significant

advers e effect s o n competition , employment , investment , productivity , innovatio n o r o n th e ability o

f th e Unite dStates-base d enterprise s t o compet e withforeign base denterprise s h t domesti c o r

expor t • markets

. EP A determine dtha t

it s Augus t

12 , 198 8 fina l rul e t o protec t

stratospheri c ozon e me t

withth e definitio n of

amajo r rule , an dtherefor e 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 amendments

. 2

. Papsmor k

SedusctioK S Ac t Change s t o th e informatio n requirement s a s amende di n today' s notic e hav e bee n submitte dfor approva l t o th e Offic e o

f Managemen t

an dBudget (OMB ) unde r

th e Paperwork

Reductio n Act , 4 4 U.S.C

. 350 1 e t

seq
. A n Informatio n Collectio n Reques t documen t ha s bee n prepare db y EP A (IC RNo

. 1432.04) an dacop y may b e obtaine db y writin g Sand y Farmer , Informatio n Polic y Branch ; EPA ; 401 M St

. SW

. (PM-223) ; Washington

. D C 2046 0 o r b y callin g (202

) 382-2468

. Publi c reportin g burde n for thi s collectio n of

informatio n I s estimate dt o increas e a n averag e of

3 hour s pe r response , includin g tim e for reviewin g instructions , searchin g existin g dat a sources , gatherin g an dmaintainin g th e dat aneeded , an dcompletin g an d reviewin g th e collectio n of information

. 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 o

f information , includin g suggestion s for

reducin g thi s burde n t o Chief , Informatio n PoKc

y Branch , PM

223 , US. Environmenta l Protectio n Agency , 401 M

S t SW , Washington , D C 20460 ; an dt o th e Offic e of Informatio n an dRegulatory Affairs , Paperwork Reductio n Projec t

(2080-0170) , Offic e of Managemen t

an dBudget , Washington , D C 20503 , marke d"Attention : Des k Office r fo r EPA. " 8

. Regulatory Flexibility Ac t Th e Regulator

y Flexibility Act , 5 U.S.C

. 801-812

. require s tha t federa l agencies 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 commen t 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 do

f th e agenc y certifie s tha t

a rul e wil l no t

hav e asignificant

economi c impac t o n asubstantia l 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

of it s fina l rule , an dn o additiona l RF A wa s prepare dfo

r thes e amendments

. Dated : Jun e 7,1980

. WSHan i C C RefflBy , Administrator.

Fo r reason s se t

fort hi n th e preamble , th e Agenc y propose s t o amen d4 0 CF R par t 8 2 a s follows : 1

. Th e authorit y citatio n fo r par t 8 2 continue s t o rea da s follows : Authority : 4

2 U5. C 7457(b)

. 2

. Amen d§ 82. 3 t o revis e paragraph s (h ) an d(s ) t o rea da s follows : §82. 3 Dsflnttions

. ft •o o o o (h ) Export

mean s th e transpor t

o f virgin , use do r

recycledcontrolle d substance s fro

minsid e th e Unite dState s o r it s territorie s t o person s outsid e th e Unite dState s o r

it s territories , excludin g Unite dState s military base s an dship s for on-boar duse
. O O O O 0 (s ) Production mean s th e manufactur e * * * b y th e sam e perso n of othe r chemicals

. Productio n include s spillin g o r ventin g of

controlle dsubstance s equa l t o o r

i n exces s of

on e hundre d pound s pe r

event ; howeve r

eac h productio n plan t

i s allowe dtw o spill s o r venting s o

f les s tha n 1000 pounds , withi n agive n contro l period

. 0 < , _ > o
_ > 3

. Sectio n 82. 0 i s amende db y addin g paragrap h(e ) t o rea da s follows : § 82. S AwaiJatolUi

y at productteft allowanco o I n additio n t o (baselin e productio n allowances

. 0 O

0 O. O (e ) A perso n wh o doe s no t produc e controlle dsubstance s ma y obtai n productio n allowance s equa l t o th e calculate dleve l o f

controlle dsubstance s produce df

n th e Unite dState s tha t

th e perso n use dan dentirel y consume di n th e manufactur e o f

othe r chemical s In accordanc e with th e provision s of thi s paragraph

. A reques t

fo r productio n allowance s unde r

thi s sectio n wil l b e considere dareques t

for consumptio n allowance s unde r

g 82.10(c)

. (1 ) A perso n mus t

submi t areques t fo r productio n allowance s tha t include s th e following : (i ) Th e identity an daddres s of th e person ; (ii ) Th e name , quantit y an dcalculate d leve l o f controlle dsubstanc e use dan d entirel y consume di n th e manufactur e o f anothe r chemical ; (iii ) A cop y o

f th e invoic e o r

receip t documentin g th e sal e fro

mth e produce r o f th e controlle dsubstanc e t o th e person ; an dP. 9

2449 6 Federa l Registe r / Vol

. 55 , No

. 11 6 /

Friday , Jun e 15 , 199 0 / Rule s an dRegulation s (iv ) Th e name , quantit y an d verificatio n o

f th e commercial us e o

f th e resultin g chemical

. (2 ) Th e Administrator' s designate d representativ e will revie w th e informatio n an ddocumentatio n submitte dunde r

paragrap h(1 ) o

f thi s section , an dwil l asses s th e quantit y o f controlle dsubstanc e tha t th e documentatio n an dinformatio n verifie s wer e use dan dentirel y consume di n th e manufactur e o

f othe r chemicals

. Th e Administrator' s designate d representativ e wil l issu e th e perso n productio n allowance s equivalen t t o th e calculate dleve l o

f controlle dsubstance s tha t th e Administrator' s designate d representativ e determine dwer e consumed

. Th e gran t

o f allowance s wil l b e effectiv e o n th e dat e tha t th e notic e i s issued

. (3 ) I f th e Administrator' s designate d representativ e determine s tha t th e reques t fo r productio n allowance s doe s no t satisfactoril y mee t

th e requirement s state di n paragrap h (e ) o

f thi s section , th e Administrator' s designate d representativ e wil l issu e anot e disallowin g th e reques t

fo r additiona l consumptio n allowances

. Withi n te n workin g day s afte r

receip t of notification , th e part y may file anotic e o f appeal , with supportin g reasons , with th e Director , Offic e o

f Atmospheri c an d Indoo r Ai r Programs , Offic e o

f Ai r an d Radiation

. Th e Directo r

may affir mth e disallowanc e o r

gran t a n allowance , a s h e find s appropriat e i n light o f th e availabl e evidence

. 4

. Amen d§ 82.1 0 b y revisin g paragrap h (a) an daddin g paragrap h(c ) t o rea da s follows : § 82.1 0 Availability o f consumptio n allowance s I n additio n t o baselin e consumptio n allowances

. (a) Excep t a s limite db y paragrap h(b ) o f thi s section , an y perso n may obtain , i n accordanc e with th e provision s o f thi s subsection , consumptio n allowance s equivalen t

t o th e calculate dleve l o

f controlle dsubstance s tha t th e perso n ha s exporte dfro

mth e Unite dState s an d it s territories

. Th e consumptio n allowanc e grante dunde r thi s sectio n wil l b e vali donly durin g th e contro l perio di n whic h th e export s departe dth e Unite dState s o r

it s territories

. **** * (c ) A perso n wh o doe s no t produc e controlle dsubstance s may obtai n consumptio n allowance s equa l t o th e calculate dleve l o

f acontrolle d substanc e eithe r

produce di n o r

- importe dint o th e Unite dState s tha t th e perso n use dan dentirel y consume di n th e manufacture o

f othe r chemical s i n accordanc e with th e provision s o f thi s paragraph

. (1 ) A perso n mus t

submi t areques t fo r consumptio n allowance s tha t include s th e following : (i ) Th e identity an daddres s o f th e person ; (ii ) Th e name , quantity an dcalculate d leve l o f controlle dsubstanc e use dan d entirel y consume di n th e manufactur e o f anothe r chemical ; (iii ) A cop y o

f th e invoic e o r

receip t documentin g th e sal e fromth e produce r o r importe r o f th e controlle dsubstanc e t o th e person ; (iv ) Th e name , quantit y an d verificatio n o

f th e commercial us e o

f th e resultin g chemical

. (2 ) Th e Administrator' s designate d representativ e wil l revie w th e informatio n an ddocumentatio n submitte dunde r

paragrap h (c ) o

f thi s section , an dwil l asses s th e quantit y o f controlle dsubstanc e tha t

th e documentatio n an dinformatio n verifie s wer e use dan dentirel y consume di n th e manufacture o

f othe r chemicals

. Th e Administrator' s designate d representativ e wil l issu e th e perso n consumptio n allowance s equivalen t t o th e calculate dleve l o

f controlle d substance s tha t

th e Administrator' s designate drepresentativ e determine d wer e consumed

. Th e gran t o f allowance s wil l b e effectiv e o n th e dat e tha t th e notic e i s issued

. (3 ) I f th e Administrator' s designate d representativ e determine s tha t th e reques t fo r consumptio n allowance s doe s no t satisfactoril y mee t

th e requirement s state di n paragrap h (c ) o f thi s section , th e Administrator' s designate drepresentativ e wil l issu e a not e disallowin g th e reques t fo r additiona l consumptio n allowances

. Withi n te n workin g day s afte r receip t o f notification , th e part y may file anotic e o f appeal , with supportin g reasons , with th e Director , Offic e o

f Atmospheri c an d Indoo r Ai r Programs , Offic e o

f Ai r an d Radiation

. Th e Directo r

may affir mo r vacat e th e disallowance.-I f n o appea l i s take n b y th e tentivda y afte r notification , th e disallowanc e wil l b e final o n tha t day

. 5

. Amen d{ 82.1 3 b y addin g paragraph s (f)(2

) (vii ) an d(h) t o rea da s follows : { 82.1 3 Recordkeepin g an d reportin g requirements

.

* • , •• * • * • 

## m-v * 

## r • (2) •• / (Vii ) Record s o

f th e date , th e controlle dsubstance , an dth e estimate d

. quantit y o

f an y spil l o r

releas e o f a controlle dsubstanc e tha t equal s o r exceed s 100 pounds

. (h) Ever y perso n wh o ha s requeste d additiona l productio n allowance s unde r § 82.9(e) o r

consumptio n allowance s unde r $ 82.10(c) , o r

producer s wh o purchas e controlle dsubstance s use do r consume da s feedstoc k

fo r othe r substance s mus t

maintai n th e following : (1 ) date drecord s o

f th e quantit y an d calculate dleve l o

f controlle dsubstanc e use dan dentirel y consume di n th e manufactur e o

f anothe r chemical ; (2 ) copie s o f th e invoice s o r

receipt s documentin g th e sal e fro

mth e produce r o r importe r o f th e controlle dsubstanc e t o th e person ; (3 ) date drecord s o

f th e names , commercial us e an dquantitie s o f th e resultin g chemical(s) ; an d

. (4) date drecord s o

f shipment s t o purchaser s o

f th e resultin g chemical(s)

. [F RDoc . 90-13849 Filed 6-14-90 ; 8:4 5 am] WLUN O COD t8560-SO- M