Mandatory Greenhouse Gas 

Reporting Rule: EPA’s 

Response to Public Comments 

Subpart QQ: Importers and 

Exporters of Fluorinated GHGs 

Inside Pre-charged Equipment 

or Closed-cell Foams 

November 2010 1
November 2010 2

FOREWORD 

This document provides responses to public comments on the U.S. 

Environmental Protection Agency’s (EPA’s) Proposed Mandatory Greenhouse 

Gas Reporting Rule: Additional Sources of Fluorinated GHGs: Subpart QQ: 

Imports and exports of fluorinated inside pre-charged products and closed-cell 

foams. EPA published a Notice of Proposed Rulemaking in the Federal Register 

(FR) on April 12, 2010 (75 FR 18652). EPA received comments on this proposed 

rule via mail, e-mail, and at a public hearing held in Washington D.C. on April 20, 

2010. Copies of all comments submitted are available at the EPA Docket Center 

Public Reading Room. Comments letters and transcripts of the public hearings 

are also available electronically through http://www.regulations.gov by searching 

Docket ID EPA-HQ-OAR-2009-0927. 

EPA prepared this document in multiple sections, with each section focusing on a 

different broad category of comments on the rule. In light of the large number of 

comments received and the significant overlap between many comments, this 

document does not respond to each comment individually. Rather, EPA 

summarized and provided a single response to each significant argument, 

assertion, and question contained within the totality of comments. Within each 

comment summary, EPA provides in parentheses one or more lists of Docket ID 

numbers for commenters who raised particular issues; however, these lists are 

not meant to be exhaustive, and EPA does not individually identify each and 

every commenter who made a certain point in all instances, particularly in cases 

where multiple commenters expressed essentially identical arguments. 

EPA’s responses to comments are generally provided immediately following 

each comment summary. In some cases, EPA provided responses to specific 

comments or groups of similar comments in the preamble to the final rulemaking. 

Rather than repeating those responses in this document, EPA has referenced 

the preamble. 

Comments were assigned to specific section of this document based on an 

assessment of the principal subject of the comment; however, some comments 

inevitably overlap multiple subject areas. 
Table of Contents 

Table of Contents 

1. General Comments................................................................................................. 4 

2. Definition of Source Category ................................................................................. 5 

3. Reporting Threshold................................................................................................ 7 

4. GHGs to Report ...................................................................................................... 9 

5. GHG Emission Calculation Procedures .................................................................10 

6. Data Reporting Requirements................................................................................11 

6.1 Confidential Business Information...................................................................11 

November 8, 2010 

 

3

Subpart QQ: Importers and Exporters of Fluorinated GHGs 

Inside Pre-charged Equipment or Closed-cell Foams 
November 8, 2010 

 

Subpart QQ: Importers and Exporters of Fluorinated GHGs 

Inside Pre-charged Equipment or Closed-cell Foams 

4

1. General Comments 

Comment Summary 1-b: Three commenters (0085, 0128, DC-03) supported EPA’s 

proposal to require reporting of imports and exports of fluorinated GHGs contained in 

pre-charged equipment and closed-cell foams. One commenter (0128) asserted that 

pre-charged equipment and foams contain a significant amount of stored GHGs, in total 

accounting for 29 million metric tons CO2e. 

Response 1-b: EPA has finalized the reporting requirements for imports and exports of 

fluorinated GHGs in pre-charged equipment and closed-cell foams. As discussed in the 

preamble of the proposed and final rule, this subpart represents a significant source of 

fluorinated GHGs. EPA estimates that approximately 22 MMTCO2e of fluorinated 

GHGs are imported annually into the U.S., making it the eleventh most significant 

source of GHGs (when weighted by carbon dioxide equivalent) covered under the 

Mandatory Reporting of Greenhouse Gases Rule. Imports of fluorinated GHGs from 

entities subject to this subpart account for seven to ten percent of the U.S. fluorinated 

GHG supply. In addition, EPA estimates that the number of importers and exporters 

are relatively small and that the costs associated with the reporting requirements are 

reasonably modest. 
November 8, 2010 

 

Subpart QQ: Importers and Exporters of Fluorinated GHGs 

Inside Pre-charged Equipment or Closed-cell Foams 

5

2. Definition of Source Category 

Comment Summary 2-a: One commenter (0119) recommended excluding closed-cell 

foams from this subpart. This commenter stated that most facilities operate regionally 

and do not ship closed-cell foams long distances due to economic considerations. This 

commenter also observed that EPA’s Technical Support Document estimated that 

GHGs imported in closed-cell foams are equal to the amount exported, creating a “net 

effect of zero on GHG supply.” 

Response 2-a: EPA did not exclude closed-cell foams from this subpart. There may 

be specific closed-cell foam products or particular circumstances where the closed-cell 

foams are not shipped long distances. However, imports of closed-cell foams are, in 

fact, a significant source of fluorinated GHGs. EPA estimates that currently over 13 

percent of fluorinated GHGs (in carbon dioxide equivalent terms) imported under this 

subpart are contained within closed-cell foams. 

EPA subsequently obtained more detailed information regarding this sector and has 

updated the “Technical Support Document for Importers and Exporters of Fluorinated 

GHGs Inside Pre-charged Equipment and Closed-cell Foams.” EPA found that imports 

of closed-cell foams exceed exports by a factor of 5. This results in a net increase in 

the U.S. supply of fluorinated GHGs and warrants inclusion of closed-cell foams under 

this subpart. See the “Technical Support Document for Importers and Exporters of 

Fluorinated GHGs Inside Pre-charged Equipment and Closed-cell Foams” for detailed 

estimates of U,S, imports and exports of closed-cell foams. 

Note that this ration of closed-cell foam imports to exports is likely to change over time. 

Even if imports of closed-cell foams would equal the exports of closed cell foams 

(resulting in no net change in supply), EPA would still need to collect information on this 

source of fluorinated GHGs. EPA is collecting this information in order to understand 

this source category and to support analysis of policy options in regard to these 

sources. 

Comment Summary 2.b: One commenter (0091) stated that EPA had not proposed 

the specific regulatory text that would add importers and exporters of fluorinated GHGs 

in pre-charged equipment or closed-cell foams as a supplier source category at 40 CFR 

98.2(a)(4). This commenter stated that although EPA states its intention to make this 

addition, EPA has not provided the actual text nor notice and an opportunity for affected 

entities to comment on the proposed revision which will directly impact them. 

Response 2.b: On April 12, 2010, EPA published the Mandatory Reporting of 

Greenhouse Gases: Additional Source of Fluorinated GHGs- Proposes Rule (75 FR 

18653) to provide notice of the addition of this subpart and the opportunity to comment. 

Specifically, under Section II.F of the preamble, titled Subpart A Revisions, (75 FR 

18689) EPA stated that “importers and exporters of pre-charged equipment or closedcell foam products containing fluorinated GHGs . . . would be added to the list of 
November 8, 2010 

 

Subpart QQ: Importers and Exporters of Fluorinated GHGs 

Inside Pre-charged Equipment or Closed-cell Foams 

6

suppliers referenced in 40 CFR 98.2(a)(4).” The Notice of Proposed Rulemaking in its 

entirety and this particular statement provided notice of EPA’s proposed amendments 

to Part 98 and an opportunity to affected entities to submit comments on the proposed 

amendments. EPA received comments on the issue of whether the rule should cover 

suppliers; therefore, the notice given appears to be adequate. EPA is not required to 

provide draft regulatory text to accompany a Notice of Proposed Rulemaking. 
November 8, 2010 

 

Subpart QQ: Importers and Exporters of Fluorinated GHGs 

Inside Pre-charged Equipment or Closed-cell Foams 

7

3. Reporting Threshold 

Comment Summary 3-a: Two commenters (0091 and 0116) stated that the proposed 

rule was contradictory and that EPA should therefore clarify whether the reporting 

threshold “was greater than and equal to” or just “greater than” 25,000 metric tons 

CO2e. The commenters stated that the proposed rule is vague for facilities that are 

potentially covered under subpart C and subpart QQ and whether a supplier should 

consider combustion emissions when determining the applicability under subpart QQ. 

Response 3-a: Subpart QQ has been added as a supplier source category under 40 

CFR 98.2(a)(4). As stated in the final rule, the reporting threshold for importers and 

exporters is an annual quantity of fluorinated GHGs contained in pre-charged 

equipment or closed-cell foams that is greater than or equivalent to 25,000 metric tons 

CO2e. Importers and exporters should calculate the amount of fluorinated GHGs 

imported or exported within pre-charged equipment and closed-cell foams and 

determine if this amount is greater than or equivalent to 25,000 metric tons CO2e. If 

their imports and/or exports equal or exceed this threshold, they are required to report 

under this subpart. Because this is a supplier source category under 40 CFR 

98.2(a)(4), suppliers should not consider subpart C combustion emissions when 

analyzing whether the supplier meets the reporting threshold under this subpart. 

Comment Summary 3-b: One commenter (0085) expressed concern about importers 

segregating shipments into segments under the 25,000 metric tons CO2e threshold and 

thus avoiding reporting. 

Response 3-a: As stated in the final rule, importers and exporters of an annual quantity

of fluorinated greenhouse gases contained in pre-charged equipment or closed-cell 

foams that is greater than or equivalent to 25,000 metric tons CO2e must report under 

this subpart. The amount of fluorinated GHGs contained within an individual shipment 

does not impact whether importers or exporters must report under this subpart. The 

total quantity importer or exported within the calendar year must be evaluated in order 

to determine if an importer or exporter must report under this subpart. 

Importers and exporters who meet the reporting threshold must report all imports and 

exports of fluorinated greenhouse gases contained in pre-charged equipment or closedcell foams regardless of the size of each shipment. 
November 8, 2010 

 

Subpart QQ: Importers and Exporters of Fluorinated GHGs 

Inside Pre-charged Equipment or Closed-cell Foams 

8

Comment Summary 3-c: One commenter (0085) stated that the threshold calculation 

method at 40 CFR 98.2(f) is inappropriate as it only includes those fluorinated GHGs 

with global warming potentials listed in Table A-1. The commenter stated that the 

threshold analysis should not be limited to Table A-1 fluorinated GHGs when the 

market is rapidly transitions to new products with new flourinated GHGs. This 

commenter further stated that excluding fluorinated GHGs that are not listed on Table 

A-1 would provide EPA with an incomplete accounting of fluorinated GHGs. 

Response 3-c: In this action, EPA did not propose and is not finalizing revisions to the 

methods used to determine if an entity meets the reporting thresholds described at 40 

CFR 98.2. EPA included Table A-1 to ease the burden when analyzing if an entity 

would meet the reporting threshold for a particular subpart. Those who meet the 

reporting threshold must report imports and exports of all fluorinated GHGs contained 

in pre-charged equipment and closed-cell foams. EPA anticipates that it will update 

Table A-1 when the scientific community evaluates and re-evaluates the global 

warming potential of particular fluorinated GHGs. See the preamble to the Final 

Mandatory Reporting of Greenhouse Gases Rule for a discussion of the definition of the 

fluorinated GHGs and Table A-1 (74 FR 56260).
November 8, 2010 

 

Subpart QQ: Importers and Exporters of Fluorinated GHGs 

Inside Pre-charged Equipment or Closed-cell Foams 

9

4. GHGs to Report 

Comment Summary 4-a: Three commenters (79, 90,113) stated that EPA should limit 

the reporting requirements to fluorinated GHGs with a global warming potential (GWP) 

of 150 or higher. Commenters stated that this would provide an incentive to 

manufacturers to transition out of fluorinated GHGs with high GWPs. In addition, 

commenters stated that this would provide consistency with European Union 

regulations. 

Response 4-a: In this action, EPA did not propose and is not finalizing revisions to the 

definition of fluorinated GHGs. As discussed in the preamble to the Final Mandatory 

Reporting Rule (74 FR 56348) and the associated response to comment document 

(Volume No.: 2 "Selection of Reporting Thresholds, Greenhouses Gases, and De 

Minimis Provisions,” page 15) reporting of all fluorinated GHGs imported and exported 

will provide valuable information on the full range of fluorinated GHGs entering U.S. 

commerce. This information can be used to assess the overall volume and importance 

of particular compounds. Ultimately, all of this information can be used to inform policy 

decisions regarding the appropriate type and scope of emission reduction measures for 

these gases. Considering the modest cost of reporting import and export of these 

compounds, the potential value of this information justifies a comprehensive definition 

of fluorinated GHG. EPA stresses that the final rule intends to collect data of sufficient 

accuracy and quality to inform future climate policy development, thus it would be 

premature at this time to include such a threshold level for GHGs. Changing the 

behavior of firms by encouraging substitution is beyond the scope of this rule. 
November 8, 2010 

 

Subpart QQ: Importers and Exporters of Fluorinated GHGs 

Inside Pre-charged Equipment or Closed-cell Foams 

10

5. GHG Emission Calculation Procedures 

Comment Summary 5-a: One commenter (0085) suggested that EPA provide 

flexibility in the calculation procedures for closed-cell foams. This commenter noted that 

appliance manufacturers often blow foam into appliance cavities. In such instances, it 

may be difficult to determine the cubic feet of foam contain in the appliance. Reporters 

may wish to calculate the mass of fluorinated GHGs contained in the closed-cell foam 

within each unit and then multiply this mass by the number of units imported or 

exported. 

Response 5-a: EPA notes that the proposal and this final rule include different 

calculation procedures and reporting requirements for closed-cell foams contained in 

appliances and for closed-cell foams not contained in appliances. 

For closed-cell foams that are imported inside of appliances, the rule states that 

importers and exporters must report the identity of the fluorinated GHG contained in the 

foam, the quantity of fluorinated GHG contained in the foam in each appliance, and the 

number of appliances imported for each type of appliance. Thus, reporters are not 

required to calculate the cubic feet of foam contained in the appliance. 

For closed cell-foams that are not inside of appliances, the final rule states that 

importers and exporters must report the identity of the fluorinated GHG, the density of 

the fluorinated GHG in the foam (kg fluorinated GHG/cubic foot), and the quantity of 

foam imported (cubic feet) for each type of closed-cell foam. 

EPA notes that an additional calculation method was added to the final rule for closedcell foams where the identity and density of the fluorinated GHG within the closed-cell 

foam is unknown. See section II.G.3 of the preamble for more information. 
November 8, 2010 

 

Subpart QQ: Importers and Exporters of Fluorinated GHGs 

Inside Pre-charged Equipment or Closed-cell Foams 

11

6. Data Reporting Requirements. 

Comment Summary 6-a: One commenter (0085) suggested that EPA require 

reporters to submit broker information. This commenter stated that importers often act 

through brokers and expressed concern over an entity avoiding reporting by separating 

shipments among multiple brokers. This commenter suggested that brokers identify 

their clients and vice versa in their reports. The commenter also suggested that EPA 

utilize Dun and Bradstreet numbers to identify unique entities. 

Response 6-a: EPA does not have reason to believe that the risk of entities avoiding 

reporting under this particular subpart is significant enough to justify the addition of 

these reporting requirements. In addition, EPA notes that the number of brokers used 

by an importer or exporter does not impact the information that the importer or exporter 

must report to EPA. This rule requires that importers and exporters must submit 

information on an annual quantity of fluorinated greenhouse gases imported and 

exported in pre-charged equipment or closed-cell foams. The range or number of 

brokers used to coordinate particular shipments does not impact the information that 

must be submitted by a particular importer or exporter. For more information on the 

definition of importers and the relationship to brokers see the Response to Comment 

document for the Final Mandatory Reporting Rule (Volume No.: 14 "Subpart A: 

Definitions, Incorporation by Reference, and Other Subpart A Comments,” page 12) 

Regarding the comment on Dun and Bradstreet numbers, on September 16, 2010, EPA 

amended subpart A to require facilities and suppliers reporting GHGs to also report 

their corporate parent company(s), the North American Industry Classification System 

(NAICS) code(s) that apply to the facility/supplier, and whether or not reported 

emissions include emissions from a cogeneration unit (75 FR 57669, September 22, 

2010). In that rule, EPA considered requiring each facility and supplier to report a 

corporate identifier, such as a Dun and Bradsteet number. For numerous reasons, EPA 

decided not to require such reporting; please refer to the preamble to that action for a 

full discussion of and response to comments on corporate identifiers. 

6.1 Confidential Business Information 

Comment Summary 6.1-a: Four commenters (0085, 0091, 0116, 0119) stated that 

EPA should protect data submitted under subpart QQ as CBI. Commenters stated that 

data reported under this subpart would reveal key business information such as 

production information and market share. Commenters stated that releasing this data 

would harm the competitive position of reporting companies. Commenters also 

discussed whether the data reported under this subpart could be considered emissions 

data. 

Response 6.1-a: For a response to comments about confidential business information 

(CBI), see the Preamble section II.B.