Fw: Summary of Interagency Comments under EO 12866/13563 -- Protection 

of Stratospheric Ozone : Adjustments to the Allowance System for Controlling 

HCFC Production, Import, and Export

Luke Hall-Jordan to: Frey, Nathan J. 10/11/2011 01:44 PM

Cc: JohnB Chamberlin, David Donaldson

Hi Nathan,

Attached, please find EPA's response. Let's set up a call to discuss comment one this week if possible. 

We're still working through comment two.

Best,

Luke

Luke Hall-Jordan

U.S. Environmental Protection Agency

1200 Pennsylvania Ave, NW (MC-6205J)

Washington, DC 20460

Office: 202-343-9591

Cell: 202-230-7589

Response_final.pdf

----- Forwarded by Jeremy Arling/DC/USEPA/US on 09/27/2011 10:19 AM -----

From: "Frey, Nathan J." <Nathan_J._Frey@omb.eop.gov>

To: Jeremy Arling/DC/USEPA/US@EPA

Cc: Drusilla Hufford/DC/USEPA/US@EPA, Cindy Newberg/DC/USEPA/US@EPA

Date: 09/27/2011 10:17 AM

Subject: Summary of Interagency Comments under EO 12866/13563 -- Protection of Stratospheric Ozone: 

Adjustments to the Allowance System for Controlling HCFC Production, Import, and Export

Attached please find a summary of interagency comments on the draft proposed rule, Adjustments to 

the Allowance System for Controlling HCFC Production, Import, and Export for 2012. Also attached are 

several letters from stakeholders referenced in the summary of interagency comments. 

 [attachment "Scan_Attachment‐330155656‐000.pdf" deleted by Luke Hall‐Jordan/DC/USEPA/US] 

[attachment "EPA letter ‐ Comments to Interim Final Rule August 5, 2011.pdf" deleted by Luke 

Hall‐Jordan/DC/USEPA/US] [attachment "EPAletter.pdf" deleted by Luke Hall‐Jordan/DC/USEPA/US] 

[attachment "Letter to EPA re ICOR.PDF" deleted by Luke Hall‐Jordan/DC/USEPA/US] [attachment 

"Summary of Interagency Comments_2060‐AQ98 HCFC Allowance Adjustments 2012.docx" deleted by 

Luke Hall‐Jordan/DC/USEPA/US] 
ATTACHMENT 1 

Response_final.pdf
*** E.O. 12866 Review – Do Not Cite, Quote, or Release During Review *** 

Page 1 of 2 

Response to Interagency Working Comments on Draft Language Sent 9/27/2011 

under EO12866/13563 Interagency Review 

Comment 1: 

Some stakeholders have expressed concern that EPA’s system of allocations has allowed for the 

existence of an oligopoly that is artificially limiting HCFCs in the economy by refusing to engage in the 

trading that is essential to mitigating the economic effects of an HCFC phase-out. If true, this should 

raise significant concerns that EPA’s program is contributing to the unnecessary stifling of the very 

innovation that EPA knows will be necessary in the post-2015 environment. EPA should also be very 

wary of using current market conditions as a basis for speeding up the phase-out schedule, since both 

the economic recessions and failure of the trading system would depress production and consumption of 

HCFCs. 

It would be helpful to understand how EPA would respond to these concerns, including whether it can 

release production and consumption data to confirm ICOR’s allegations and how it will respond to 

ICOR’s petition for re-allocation. It would also be helpful to better understand whether EPA has seen 

recycling and reclamation at the levels anticipated in the 2009 rulemaking and whether the 

misallocation of consumption allocations is impeding reclamation efforts. 

Response 1: 

Overall, the agency believes that the HCFC phaseout program is functioning as intended, with 

flexibility for trading and ability for new entry and expanded production and import. In addition, 

EPA will rely on data and industry input to determine if recent supply and demand levels are 

such that a reduction in allocations is needed—in order to foster both reclaim and innovation in 

non-HCFC alternatives. We look forward to discussing this further with OMB and the 

commenter. 

The commenter also asked EPA to release consumption and production data. The ODP-weighted 

amount of unused HCFC allowances was discussed in the proposed rule (see section III.B.4.). 

Additionally, EPA annually reports HCFC use to UNEP (see 

http://ozone.unep.org/Data_Reporting/Data_Access/). HCFC-22 consumption data are provided 

below. This table will be added to the docket. 

 
*** E.O. 12866 Review – Do Not Cite, Quote, or Release During Review *** 

Page 2 of 2 

Comment 2: 

We would like to encourage EPA to consider whether the rule could or should allow for 

flexibility to lower further the overall amount of HCFC consumption and production allowances 

authorized, particularly for HCFC-22. Doing so would help to foster the growth of an HCFC 

reclamation industry and create the right incentives to ensure that the United States is able to be 

a leader in meeting and exceeding phaseout obligations under the Montreal Protocol in a way 

that is environmentally responsible. It seems advisable to provide for incentives for 

reuse/reclamation, recognizing it needs to be done in a practical and balanced way. Doing so 

would also put the United States in a better position to promote a faster phaseout of HCFCs in 

other countries, which would provide significant ozone and climate benefits.

Response 2: 

Based on the above comment and comments on the 2011 interim final rule, EPA is currently 

collecting and reviewing data to determine if it is prudent to further reduce the overall allocation.