P. 1



# OAR Box 

# 1153 Prepped by Candice Davis



# Document

Number: 

# 16 ) FE D RE G STRATOSPHERI C OZON E 12/14/8 7

Docket Number: 

# A-87-2 0

Printed 5/9/2008 11:25:59 AM

Sheet 16 of 60P. 2 

# A$7-£o

Monda y Decembe r 14 , 198 7



# Part I I 

# Environmenta l Protectio n Agency
4 0 CF R Part 8 2 Protectio n o f Stratospheri c Ozone ; Fina l Rul e an d Propose d Rul eP. 3



### 4748 6 Federa

l Register/

Vol

. 51 , No

. 2§ 9 /

Monday, , Decembe r

14 , 1987 /

Rule s an dRegulation s

ENVIRONMENTA L PROTECTIO N AGENC Y
4 0 CF R Part 8 2 [FHL-3299-9 ] Protectio n o f Stratospheri c Ozon e AGENCY: Environmenta l Protectio n Agenc y (EPA)

. ACTION: Fina l rule

. SUMMARY

: EP A i s requirin g tha t individual s o r

lega l entitie s involve di n th e production , impor t

o r expor t o f specifie dozone-depletin g chemical s i n 198 6 provid e informatio n regardin g thes e activitie s t o EP A withi n 3 0 days

. T o implemen t

th e Montrea l Protocol , EP A mus t

obtai n dat ao n Unite dState s 198 6 production , import s an dexport s o f th e chemical s covere db y thi s agreement

. Thi s informatio n i s critica l becaus e th e Montrea l Protoco l use s 198 6 activit y a s th e baselin e fo r it s restrictions

. I n additio n t o thi s reques t fo r data , EP A i s als o publishin g toda y i n th e Federa l Registe r

it s propose ddetaile d strateg y fo r

implementin g th e Montreal Protocol on Substances that

Deplete the Ozone Layer

(Montrea l Protocol)

. Whil e EP A i s askin g fo r

publi c commen t

o n tha t propose dstrategy , thi s dat a collectio n rul e i s effectiv e immediately

. EFFECTIV EDATE : Decembe r

14,1987

. FO R FURTHE R INFORMATIO N CONTACT : Stephe n Seidel ; Stratospheri c Protectio n Program ; Offic e o f

Progra m Developmen t

(ANR-445) ; Offic e e f

Ai r an dRadiation ; 40 1 M Street , SW. , Washington , D C 20460

. (202 ) 382-2878

. SUPPLEMENTAR YINFORMATION : I

. Backgroun d O n Septembe r

16,1987 , th e Unite d State s an d2 3 othe r

nation s signe dth e Montreal Protocol

on Substances that Deplete the Ozone Layer (Montrea l Protocol)

. Thi s agreemen t set s fort ha timetabl e fo r

reducin g specifie dozone
depletin g chemicals

. I t

represent s a significan t

multilatera l respons e t o addressin g th e healt han d environmenta l risk s o f

stratospheri c ozon e depletion

. Th e requirement s containe di n th e Montrea l Protoco l an dEPA' s propose d pla n fo r implementin g the mwithi n th e Unite dState s ar e discusse di n detai l i n aFedera l Registe r

notic e als o publishe d today

. T o implemen t

th e Montrea l Protocol , EP A mus t

obtai n dat ao n Unite dState s 198 6 production , import s an dexport s o f th e chemical s covere db y thi s agreement

. Thi s informatio n i s critica l becaus e th e Montrea l Protoco l use s 198 6 activit y a s th e baselin e fo r it s resuigions

. AJfiwug hth e timing o f

th e effectiv e dat e < $ th e Montrea l Protoco l i s uncertai n (i t

depend s o n whe n th e condition s fo r

entr y int o forc e ar e satisfied) , i t

coal doccu r

a s earl y a s Januaf y 1,1989

. Th e effectiv e dat e (termft dentr y feito force ) woul db e "Januar y 1,198 9 provide dtha t a t leas t eleve ainstrument s o f

ratification , acceptance , approva l o f th e Protoco l o r accessio n theret o hav e bee n deposite d b y Stfte s o r

re.gion.al economi c integratio n organisation s representin g a t leas t two-third s o f

198 6 estimate dgloba l conswnptio n o f

th e controlle d substace s * * *. " I n addition , the Vienna Convention for

the Protection of the Okone Layer, unde r whic hthi s Protoco l wa s negotiated , mus t als o hav e entere dint o forc e iiefor e th e Protoco l ca n tak e effect

. K

fhes e condition s hav e no t bee n satisfie dfey Januar y 1,1989 , tha n fee Protoco l enter s int o forc e o n th e 90t hfa y followin g th e dat e o n whic hth e condition s hav e bee n fulfilled

. Recognizin g th e potentiall y shor t tim e perio dbefor e enu f

int o force , th e participant s a t

th e Diplomati c Conferenc e i n Montrea l passe da "Resolutio n O H R^iortin g o f Data. " Thi s resolutio n "[G|al§ 8 upo n al l Signatorie s t o take , expedittetsly , al l step s necessar y t o acquir e dat aan drepor t o n th e production , impor t

an dexpor t

o f conttolle dsubstance s in acomplet e an d time|y manne r

* * *. " T o implemen t

thi s conferenc e resolution , th e Halte dNation s Envi_?onmen t

Pro-a m(UNEP ) ha s alread y requeste dproductio n an d consumptio n dat afro msignatorie s an d ha s tentativel y schedule dameetin g fo r earl f nex t yea r a t whic hsignatorie s t o discus s an drepor t

o n dat acollectio n effosts

. II

. Statutor y Authorit y EF A i s requirin g thi s informatio n undfcr th e authorit y grante di t i n Sectio n 11 4 © f th e Clea n Ai r

Act

. Thi s sectio n state s tha t

"th e Administrato r

ma y requir e an y perss n wh o own s o r operate s an y emissio n sourc e o r wh o i s subjec t t o an y requiremen t

o f thi s Ac t * * * provid e suc hothe r information , a s h e ma y reasonabl y requir e * * *. " EP A ha s electe dt o requir e thi s informatio n b y rul e t o ensur e tha t al l producers , importer s an dexporter s receiv e notic e tha t

thi s informatio n i s beia g collected , if

th e Agenc y instea d sen t letter s t o firm s believe dt o b e inv©ive di n thes e activities , i t migh t no t reac hth e entir e univers e o f involve d parties

. EP A intend s t o sen dfoi!ow-u p request s fo r

informatio n unde r

sectio n 11 4 t o producer s o f th e specifie dozone
depletin g chemical s askin g fo r mor e detaile dinformatio n relate dt o past , current , an dfutur e productio n activity

. Th e informatio n requeste di n thos e letter s wil l supplemen t

tha t require db y thi s rule

. Th e rul e i s bein g publishe da s afinal actio n withou t

first seekin g publi c commen t fo r severa l reasons
. First , th e rul e i s limite di n scop e an dsimpl y require s tha t

informatio n o n pas t specifie dactivitie s b e reported

. Second , th e informatio n requeste di s straightforwar dan dclearl y delineated

. Third , th e resource s involve di n reportin g thi s informatio n shoul db e minimal

. Onl y seve n firms ar e believe d t o produc e th e specifie dozone-depletin g chemical s i n th e Unite dStates , whil e fewe r tha n 2 0 firms o r

individual s ar e likel y t o hav e bee n importer s o r exporter s i n 1986

. Fourth , thi s informatio n i s no t

availabl e throug h existin g channels

. Whil e som e o f th e informatio n i s availabl e throug hth e U.S

. Internationa l Trad e Commissio n an dth e Chemica l Manufacturer s Association , thi s dat ai s presente di n a n aggregat e manne r an ddoe s no t

cove r mos t o f th e specifie dozone-depletin g chemicals

. Fifth , a s discusse dEP A wil l nee dthi s informatio n i n atimel y manne r t o respon dt o UNEP' s reques t an dt o participat e i n th e upcomin g meetin g o n dat acollection

. Fo r

thes e reasons , EP A find s tha t

notic e an dpubli c commen t o n thi s rul e ar e impracticable , unnecessar y an dcontrar y t o th e publi c interes t withi n th e meanin g o f

5 U.S.C

. sectio n 553(b)(B)

. III

. Requirement s o f

th e Rul e A. Affected

Parties Th e rul e applie s onl y t o thos e partie s wh o produced , imported , o r exporte d th e specifie dbul k

chemical s (Se e sectio n III. B below ) i n 1986

. Thus , firm s whic hus e chlorofluorocarbon s (CFCs ) an dhalon s a s par t

o f thei r manufacturin g proces s woul dno t b e affecte db y thi s rule

. I n fact , a s state d above , EP A believe s tha t onl y seve n firm s produce dth e specifie dozone
depletin g chemical s i n th e Unite dState s i n 198 6 an dfewe r

tha n 2 0 firm s wer e involve di n importin g o r exportin g thes e chemical s i n thei r

bul k form

. I t i s importan t

t o not e tha t

import s o r export s o f

product s containin g o r produce dwit hth e specifie dozone
depletin g chemical s woul dno t b e covere db y thi s rule

. Thus , i t woul dno t appl y t o afirmimportin g refrigerator s containin g CFC-12

. I t

would , however , appl y t o th e impor t

o r expor t o f an y bul k shipment s o f

mixture s o r

azeotrope sP. 4



### containin g di e specifie dchemicals

. Th e definitio n of

controlle dsubstance s containe di n th e Montrea l Protoco l state s tha t

i t exclude s an y of

th e specifie dchemical s "whethe r existin g alon e o r i n mixtur e tha t

I s i n a manufacture dproduc t

othe r tha n a containe r use dfor transportatio n o r storag e 4 

### ' "." B. Specified

Ozone-Depleting Chemicals Th e Montrea l Protoco l an dtherefor e thi s rul e applie s t o th e followin g chemicals : (1 ) CFC-13—Trichlorofluoromethan e (CFC-11 ) (2) CC12F2—Dichlorodifluoromethane (CFC-12 ) (3 ) CC12F-CC1E2

— Trichlorotrifluoroethan e (CFC-113 ) (4) CF2C1-GC1F2

— Dichlorotetrafluoroethan e (CFC-114 ) (5 ) CC1F2-CF8

— (Mono)chloropentafluoroethan e (CFC-115 ) (6) CF2BrCl

— Bromochlorodifiuoromethan e (Halo n 1211 ) (7 ) CF3Br—Sromotrifluoromethan e (Halo n 1301 ) (8 ) C2F4Br2—Dibromotetrafluoroethan e (Halo n 2402

) C. Data Required EP A i s requirin g tha t

affecte dpartie s provid e dat ao n th e quantit y o f eac ho f th e specifie dchemical s tha t wa s produced , importe do r

exporte din 1986

. Th e yea r 198 6 i s th e baselin e use di n th e Montrea l Protoco l fo

r determinin g limit s o n productio n an dconsumptio n (define d a s productio n plus import s minu s exports ) establishe db y tha t agreement

. A s aresult, 198 6 i s th e year fo r whic h dat ai s sought

. Informatio n o n th e quantit y an d locatio n o f eac hof th e specifie d chemical s produce di n th e Unite dState s o r it s territiorie s i s require dalon g with th e amoun t

of thos e chemical s whic h ma y hav e bee n use dan dconsume da s chemica l intermediarie s i n th e productio n o

f othe r chemicals

. Th e latte r informatio n i s necessar y t o avoi d double-countin g CF

C o r halo n production

. Documentatio n supportin g th e submissio n o

f 198 6 productio n level s coul dinclud e productio n record s o r logs , certifie dproductio n statement s use dfo r othe r reportin g purpose s o r

similar information

. Quantitie s shoul db e reporte di n kilogram s fo

r eac ho f th e specifie dCFC s an dhalons

. Th e quantit y o

f eac hspecifie d chemica l importe dt o th e Unite dState s an dit s territorie s i s require dt o b e reporte dt o EP

A alon g withEntry Number , Custom s Distric t an dPor t Code , Employer

Identificatio n Number (EIN ) o r importe r number , commodity code , th e dat e an dport

of entr y an dth e country i n whic hi t

wa s produced

. Th e require dinformatio n o n export s include s th e quantity exported , Use produce r o f th e chemical , th e dat e an d port of exit , th e EIN , Custom s Distric t an dPort Code , th e commodity code , an d th e country o

f fina l destination

. Documentatio n supportin g import s an d export s shoul dinclud e copie s o f officia l paper s (e.g. , shipper s export declarations

. For

m752 5 an dEntry Summaries , i

f available ) o r

othe r evidenc e confirmin g suc hactivity

. Affecte dpartie s shoul dspecif y wha t of th e submitte ddat ai s covere db y 4 0 CFR, Part 2 , Subpart

B , whic hgovern s th e treatmen t

o f busines s information

. Congres s ha s give n EP

A broa dauthorit y t o secur e thi s informatio n throug h Sectio n 11 4 of

th e Clean Ai r

Ac t for th e purpose s o

f developin g regulation s an d standards

. Under sectio n 114 , EP

A i s empowere d t o obtai n informatio n whic hma y b e considere dconfidentia l busines s information

. Producers , importers , an d exporter s may reques t

tha t EP A conside r som e o r al l o f th e informatio n the y suppl y a s confidentia l a t th e tim e i t i s submitted

. Failur e to asser t aclai mof confidentiality a t

th e time o

f submissio n may resul t

in disclosur e o

f th e informatio n b y th e Agenc y withou t further notice

. D. Submission of

Data Th e dat arequire dunde r

thi s rul e mus t b e submitte dt o EP

A withi n 3 0 day s followin g th e dat e o

f publicatio n of

thi s notice

. It shoul db e sen t

to : Stratospheri c Protectio n Program ; Offic e o f ProgramDevelopmen t

(ANR-445) ; Office o f Ai r an dRadiation ; 401 M Stree t SW. , Washington , DC 20460

. E. Failure to Comply Affecte dpartie s failin g t o submi t th e require ddat awil l b e i n violatio n of sectio n 11 3 o

f th e Clean Ai r

Ac t an dwil l b e subjec t t o fine s o f u p t o $25,00

0 pe r day

. I n addition , sinc e th e dat acollecte d b y thi s rul e wil l likel y b e use di n determinin g th e allocatio n o f right s t o produc e an dimport

bul k CFC s an d halons , th e failure t o notif y EP A of 198 6 activitie s coul dinvalidat e futur e claim s t o suc hallocations

. F. Future Steps EP A intend s t o us e th e informatio n require db y thi s rul e t o develo p th e U.S

. 198 6 productio n an dconsumptio n baselin e a s require dunde r th e Montrea l Protocol

. In addition , thi s dat awoul d als o b e use da s th e basi s fo r th e propose d"allocate dquota " approac ht o implementin g th e Protoco l (se e accompanyin g propose drule ) whic h grant s pas t

producer s an dimporter s right s t o produc e an dconsum e base do n thei r 198 6 activities

. EP

A intend s to publis hfor

commen t ih e allocation s base do n thi s dat ai n Sprin g o f 1988

. Final allocation s providin g th e basi s fo r issuin g rights t o impor

t an dproduc e th e regulate dCFC s an dhalon s woul db e publishe da s par t

o f th e final rul e
. implementin g th e Montrea l Protocol

. Tha t fina l rul e i s schedule dfor promulgatio n b y Augus t

1,1988

. IV

. Additiona l Information ! A. 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 4

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 s o r

price s fo r consumers, individua l industries , Federal , State , 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 , innovation , o r o n th e ability o f Unite dStates-base d enterprise s t o compet e withforeign

base denterprise s in domesti c o r export markets

. EP A ha s determine dtha t

thi s regulatio n doe s no t

mee t th e definitio n o f amajor rul e unde r

E.O

. 12291 , an d therefor e ha s no t

prepare daregulatory impac t analysi s (RIA)

. B. Regulatory Flexibility Act Th e Regulatory Flexibility Act , 5 U.S.C

. section s 601-612 , 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 , it

mus t prepar e an dmak e availabl e fo

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

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

a n 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

of smal l entities , pursuan t

t o 5 U.S.C

. 605(b)

. Becaus e thi s rul e wil l no t hav e a
. significan t impac t o n smal l entities , n o RF A ha s bee n prepared

. C. Paperwork

Reduction Act Th e informatio n collectio n requirement s i n thi s rul e hav e bee n approve db y th e Offic e o

f Managemen t an dBudget

(OMB ) unde r

th e Paperwork Reductio n Ac t

o f 1980,4 4 U.S.C

. 350 1 e r seq. an dha s bee n assigne dOM B contro l numbe r 2060-0158

.P. 5



### 4748 8 Federa l Registe r/ Vol

. 52 , No. ' 23 9 /

Monday , Decembe r

14 , 198 7 /

Rule s an dRegulation s
Date : Decembe

r 1,1987

. Le e M

. Thomas , Administrator. '..-•• Fo r th e reason s se t

ou t i n th e preamble , Par t

8 2 o f Titl e 40 o f th e Cod e of Federa l Regulation s i s adde da s follows :
PAR T 82—PROTECTIO

N O F STRATOSPHERI C OZON E Authority : 4 2 U.S.C
. 7457(b)
. § 82.2 0 Baselin e dat a collection

. 

### (a) Thi s sectio n applie s t o an y individua l o r

lega l entit y wh o engage d i n an y o f th e followin g activities i n 198 6 involvin g an y o

f th e chemical s specifie d i n § 82.20(b ) o

f thi s part : (1 ) Producer s wh o manufacture dth e chemical s liste di n § 82.20(b) fro mra w material s o r

feedstoc k chemicals ; (2 ) Importer s wh o transporte dth e chemical s liste di n § 82.20(b) fro m outsid e th e Unite dState s o r it s territorie s t o person s withi n th e Unite d State s o r it s territories ; an d (3 ) Exporter s wh o transporte dth e chemical s liste di n § 82.20(b) fro m withi n th e Unite dState s o r it s territorie s t o outsid e th e Unite dState s o r it s territories

. (b ) Th e chemical s covere db y thi s sectio n ar e th e following : (1 ) CFC-te—Trichlorofluoromethan e (CFC-11 ) - •

• • (2JCC12F2—Dichlorodifluoromethan e (CFC-12 ) (3 ) CC12F-CC1F2

—^ Trichlorotrifluoroethan e (GF&-113 ) (4) CF2CI-CC1F2

— Dichlorotetrafluoroethan e (CFC-114 ) (5 ) CClFa-CF3 — (Mono)chloropentafluoroethan e (CFC-115 ) (6) CF2BrCl

— Bromoehlorodifluoromethan e (Halo n 1211 ) (7 ) CF3Br—Bromotrifluoromethane (Halonl301 ) (8 ) C2F4Br2—Dibromotetrafluorbethan e (Halo n 2402

) (c ) Individual s an dlegal entitie s meetin g Si e condition s se t fort hin § 82.2 0 (a) an d(b ) mus t

report th e followin g informatio n alon g wit h supportin g documentation : (1 ) Name , addres s an dtelephon e numbe r of contact ; (2 ) Th e amoun t

(kilograms ) o

f eac ho f th e substance s i t

produce di n 198 6 in th e Unite dState s o r

it s territorie s an dth e locatio n o f it s production ; (3 ) Th e amoun t

(kilograms ) o

f eac ho f th e chemical s liste di n 5 82.20(b) whic h wa s use dan dentirel y consume da s a chemica l intermediar y i n th e productio n o f othe r chemicals ; (4) Th e amoun t (kilograms ) o

f eac ho f th e chemical s liste di n § 82.20(b) whic h i t importe dint o th e Unite dState s o r it s territorie s i n 1986 , alon g withth e port an ddat e o

f entr y an dth e country i n whic hi t wa s produced ; (5 ) Th e amoun t

(kilograms ) o

f eac ho f th e chemical s liste di n § 82.20(b ) whic h i n 198 6 i t exporte dfro

mth e Unite d State s o r it s territories , th e produce r o f th e chemical , th&dat e aii dport o f exit , th e country o

f fina l destinatio n an dth e dat e o f entr y int o tha t

country. ' (d j Informatio n require db y 5.82.20(c) mus t b e submitte dt o EP

A withi n 3 0

.. . day s after th e dat e o

f publicatio n o

f thi s section

. Report s shoul db e addresse dto : Stratospheric , Protectio n Program ; Office o f ProgramDevelopmen t

(ANR-445) ; Offic e o f Ai r an dRadiation ; U.S

. Environmenta l Protectio n Agency ; 40 1 M Street , SW. , Washingto n DC 20460

. (e ) Failur e t o submi t

require d informatio n b y thi s dat e shal l b e a violatio n o

f sectio n 11 4 o

f th e Clean Ai r Ac t an dmay-invalidat e futur e claim s fo

r allocatio n o

f right s t o produc e o r

impor t chemical s liste di n § 82.20(b)

. [F RDoc . 87-2821 4 File d 12-11-87 ; 8:45 am ) BILLING COD E 6560-50- MP. 6



### Federa l Registe r

/ Vol

. 52 , No

. 23 9 /

Monday , Decembe r

14,

. 1987 /

Propose dRule s 4748 9
ENVIRONMENTA L PTOTECTtO W AGENC Y 40 CFR Par

t 8 2 [FHL-3284-9 ] 

### Protectio n of

f Stratospheri cOzone

. AGEMCV : Environmenta l Protectio n Agenc y (EPA)

. ACTION : Propose drule

. SUMMARY" : EP A i s proposin g t o limi t th e productio n an dconsumptio n o f certai n chlorofluorocarbon s (CFCs ) an d brominate dcompound s (halons ) t o reduc e th e risks o f

stratospheri c ozon e depletion

. Specifically , th e propose drul e woul drequir e afreez e a t 198 6 consumptio n an dproductio n level s o f CFC-11

. -12 , -113

. -114 , an d-11 5 o n th e basi s o f thei r relativ e ozon e depletio n weights , followe db y reduction s 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

woul dals o prohibi t productio n an dconsumptio n o f Halo n 1211,130 1 an d240 2 fro mexceedin g 198 6 level s o n aweighte dbasi s beginnin g i n approximatel y 1992. Unde r limite d circumstances , somewha t highe r level s o f productio n (bu t

no t consumption ) woul db e permitted

. Consumptio n i s define di n th e propose drul e a s productio n plu s import s minu s export s o f th e bul k chemical s describe dabove

. Thes e requirement s ar e bein g propose dunde r

sectio n 157(b ) o f

th e Clea n Ai r

Ac t an dwoul dconstitut e th e Unite dStates ' implementatio n o f th e "Montrea l Protoco l o n Substance s Tha t Deplet e th e Ozon e Layer " (Montrea l Protocol ) whic hwa s signe db y 2 4 countries , includin g th e Unite dStates , o n Septembe r

16,198 7 i n Montreal , Canada

. However , EP A i s proposin g tha t th e contro l requirement s describe dabov e onl y tak e effec t

if th e Unite dState s

- ratifie s th e Protoco l an dfollowin g entr y int o force

. EPA' s propose dactio n i s i n respons e t o growin g scientifi c evidenc e linkin g increase datmospheri c level s o f chlorin e an dbromin e t o anticipate ddepletio n o f th e ozon e layer

. I

f ozon e depletio n occurs , increase dlevel s o f harmfu l ultraviole t

radiatio n woul dpenetrat e t o th e earth' s surfac e resultin g i n substantia l damag e t o huma n healt han d th e environment

. T o implemen t

th e Montrea l Protocol , EP A propose s t o restric t productio n an d consumptio n o f

th e specifie dozone
depletin g chemicals

. Quota s reflectin g th e allowabl e leve l o f

productio n an d consumptio n wil l b e allocate dt o eac ho f th e firm s wh o engage di n thes e activitie s i n 1986

. Tradin g o f

allocate dquota s woul db e permitted

. Export s an d import s o f

th e restricte dchemical s wil l als o b e allowe dconsisten t wit h restriction s containe di n th e Montrea l Protocol

. EP A believe s tha t thi s approac hwil l provid e glow-cos t mean s o f achievin g it s regulator y goal , spu r technologica l innovation , minimiz e administrativ e requirement s an d facilitat e enforcement

. EP A i s als o considerin g whethe r

to develo p specifi c regulation s limitin g CF C an dhalo n us e fo r particula r

industrie s to supplemen t allocate dquotas

. A s a n alternativ e t o th e abov e regulator y approach , EP A i s requestin g commen t o n th e us e o f

aregulator y fe e i n additio n t o allocate dquotas

. Thi s optio n i s bein g considere dbecaus e i t addresse s concern s tha t a n allocate d quot asystem , b y itself, i s inequitable — tha t CF C an dhalo n producer s an d importer s migh t

accru e excessiv e profit s a t th e expens e o f

CF C an dhalon'use r industrie s an dconsumers
. Th e fe e woul db e se t

t o obtai n fo r

th e Unite d State s Treasur y pric e increase s resultin g fro mth e scarcit y create db y EP A regulations

. Alternatively , thi s sam e objectiv e coul db e satisfie db y auctionin g (instea do f

allocating ) right s t o produc e an dconsum e CFC s an d halons

. I n aseparat e notic e accompanyin g today' s proposa l EP A i s requirin g firms involve di n producing , importin g o r exportin g an y o f

th e regulate dchemical s i n 198 6 t o repor t

thes e activitie s t o EPA

. DATES : A publi c hearin g wil l b e hel do n Januar y 7,198 8 fro m9:0 0 a.m
. t o 5:0 0 p.m
. a t th e locatio n liste dbelow , i n orde r t o provid e a n opportunit y fo r ora l presentation s o f

data , views , o r argument s concernin g th e regulation s propose di n thi s notice

. Person s wh o wis ht o testif

y a t thi s hearin g shoul d notif y Stephe n R

. Seide l a t

th e addres s liste dbelo w prio r

t o Decembe r

29,1987

. Writte n comment s mus t b e submitte d t o th e locatio n liste dbelo w b y Februar y 8,1988

. ADDRESSES : Th e publi c hearin g wil l b e hel da t th e EP A Educatio n Center ; 40 1 M Street , SW. , Washington , D C 20460

. Writte n comment s shoul db e sen t t o Docke t No

. A-87-20 , Centra l Docke t Section , Sout hConferenc e Roo m4 , Environmenta l Protectio n Agency , 40 1 M Street , SW. , Washington , D C 20460

. Th e docke t ma y b e inspecte dbetwee n 8:00 a.m
. an d4:0 0 p.m
. o n weekdays

. A s provide di n CF RPar t

2 , areasonabl e fe e ma y b e charge dfo r

photocopying

. T o expedit e review , i t

i s als o requeste dtha t aduplicat e cop y o f

writte n comment s b e sen t t o Stephe n R

. Seide l a t th e addres s liste dbelow

. FO RFURTHE

RINFORMATIO

N CONTACT : Stephe n R

. Seidel , Senio r Analys t Offic e o f Progra mDevelopment ; Offic e o f Ai r an dRadiatio n (ANR-445)

. EPA , 401 M Street , SW. , Washington , D C 20460

. Telephon e (202 ) 382-^2787

. SUPPUEMEWTAS

V IMFOTOSATiOW

: I

. Overvie w o f

th e Proble m' , . . . B y preventin g muc ho f

th e potentiall y harmfu l ultravioletradiatio n (UV- B , radiation ) fro mpenetratin g t o th e earth' s surface , th e stratospheri c ozon e laye r act s a s avita l shiel dprotectin g huma n health , welfar e an dth e environment

. Concer n abou t

possibl e depletio n o f th e ozon e laye r

fro mchorofluorocarbon s (CFCs ) wa s first raisedi n 197 4 wit h publicatio n o f

researc hwhic htheorize d tha t chlorin e Telease dfromCFC s coul d migrat e t o th e stratospher e an dTeduc e th e amoun t

o f ozon e (Molin aan d• Rowland , 1974).Som e o f th e CFC s hav e a n atmospheri c lifetim e o f ove r 12 0 year s (i.e. , the y d o no t

breakdow n i n th e lowe r atmosphere)

. A s a ; result , the y migrat e slowl y t o th e stratosphere ' • V ' wher e highe r

energ y radiatio n strike s them , releasin g chlorine

. Onc e freed , th e chlorin e act s a s acatalys t repeatedl y combinin g wit han dbreakin g apar t ozon e molecules

. I f

ozon e depletio n occurs , mor e UV- B radiatio n woul d penetrat e t o th e earth' s surface

. Moreover , becaus e o f

th e lon g atmospheri c lifetime s o f CFCs , i t woul d tak e man y decade s t o ove r acentur y fo r th e ozon e laye r

t o retur n t o pas t concentrations

. I n th e thirtee n year s sinc e tha t theor y wa s firs t proposed , substantia l scientifi c researc hha s supporte dth e genera l concer n tha t

increase dconcentration s o f chlorine , a s wel l a s bromin e fro m halons , i n th e stratospher e pos e substantia l risks o f

depletio n resultin g i n har mt o huma n healt han dth e environment

. Today' s proposa l i s i n respons e t o increase dconcern s raise db y th e improve dunderstandin g o f th e risk s associate dwit hcontinue dus e o f CFC s an dhalons

. Durin g th e pas t tw o years , tw o extensiv e assessment s o f thes e risk s hav e bee n complete dan dar e relie do n b y EP A i n evaluatin g th e nee d fo r additiona l restriction s o n th e us e o f potentia l ozone-depletin g chemicals

. Th e first , Atmospheric Ozone, 1985 (WMO , 1986) , provide s a n extensiv e revie w o f

th e curren t

stat e o f knowledg e concernin g atmospheri c chemistr y an d modelling , pas t

change s i n trac e gase s tha t affec t ozon e levels , an dcurren t trend s i n ozon e levels

. A secon dstudy , An Assessment

of the Risks from Trace Gases that

can Modify the Stratosphere (EPA , 1987) , wa s prepare db y EP A an dP. 7



### 4749 0 <• •> Federa l Registe r / Vol

. 52 , No

. 2j 9 /

Monday , Decembe r

14 , 198 7 /'Propose dRule s
reviewe db y it s Scienc e Advisory Board

. Thi s stud y summarize s th e stat e o f knowledg e relate dt o bothatmospheri c issue s (e.g. , possibl e future change s i n ozon e levels) , an dhuman healthan d environmenta l effect s i

f th e ozon e laye r wer e depleted

. Thes e studie s an dmore recen t researc hfindings ar e Summarize d belo w in Sectio n IV ; The y als o wer e relie do n extensivel y i n developin g th e regulatory impac t

analysi s (RIA

) prepare din support

o f thi s rul e whic hi s summarize dbelo w i n Sectio n VII

. Unlik e mos t issue s o f concern to

. EPA , stratospheri c ozon e protectio n necessaril y involve s al l nation s o f th e world

. Given thei r

long atmospheri c lifetimes , CFC s an dhalons'becom e widel y dispersed

. A s aresult , th e releas e o f thes e chemical s i n on e country coul dadversel y affec t th e ' stratospher e above , an dtherefore th e healthan dwelfare of

, othe r countries

. Thus , t o full

y protec t th e ozon e laye r fro mCFC s an dhalons , a n internationa l agreemen t

i s essential

. Recognizin g th e global natur e o f thi s issue , th e Unite dNation s Environmen t Progra m(UNEP ) organize dnegotiation s in 1982 aime da t

developin g a n agreemen t

t o protec t

th e ozon e layer

. Followin g ahiatu s i n 198 6 t o develo p an dasses s scientifi c an deconomi c information , negotiation s resume din December o f tha t year
. Thes e negotiation s wer e successfull y conclude do n Septembe r

16,198 7 in Montrea l whe n 2

4 nation s signe da Protoco l requirin g substantia l reduction s in th e mos t

poten t ozone-depletin g chemicals

. Thi s internationa l agreemen t represent s aconcerte deffor t b y th e major CF C an dhalo n producin g an d consumin g nation s to respon dto th e risk s fro mcontinue drelianc e o n ozone
depletin g chemicals

. It

constitute s a landmark agreemen t

amon g nation s t o tak e actio n in advanc e to preven t significant environmenta l damag e fro m occurring

. Th e tex t

of th e Protoco l i s include da s a n anne x t o thi s preambl e an di s describe din greate r detai l below

. Th e regulation s propose dtoday woul d permi t th e Unite dState s t o meet th e requirement s establishe db y th e Montrea l Protocol

. The y woul dals o fulfil l EPA' s responsibility unde r sectio n 157(b) o f th e Clean Ai r

Ac t t o protec t stratospheri c ozon e a s neede dt o protec t publi c healthan dwelfare

. Finally , thi s proposa l als o meet s th e requirement s o

f a n agreemen t

settlin g a lawsui t brought b y th e Natura l Resource s Defens e Counci l in th e Distric t Cour t o f th e Distric t

o f Columbi a (NRDC v
. Thomas , No

. 84-358 7 (D.D.C.) ) seekin g t o compe l EP

A to promulgate regulation s unde r

sectio n 157(b)

. Th e term s o f th e settlemen t

(a s amende dto if



### exten dth e schedule ) requir e EP A t o propos e regulation s or

stat e it s reaso n
. fo r decidin g no t

to regulate b y December 1,1987

. atf dt o tak e final actio n b y Augus t 1,1988

. II

. Backgijsund A. Past Regulatory Actions Followin g th e initia l concern s raise d in 197 4 abou t possibl e ozon e depletio n fro mCFG>, EP

A an dth e Foo dan dDrug Administratio n acte dm197 8 t o ba n th e us e o f CFlJ s as"aesos® l propellant s in al l bu t "essential'apptcafions " (4 3 F R 11301 , Matc h17,1P;« 3 F R11318 , Marc hIT 1 

### ,1978)..Daring th e earl y 1970s , CFC s use_ da s aeroso l propellant s Constitute dove r

5 ® pelcen t o f tota l CF C consump f o n i n th e Unite dStates

. Thi s particular us e o f CFCs j wa s reduce di n thi s country b y approsSmatel y 9 5 percent , today' s proposa l doe s no t affec t th ® existin g EP

A an dFDA regulation s restrictin g th e us e o f CFC s a s aerose l propellants

. Sinc e J978 , CF

C us e ha s continue dt o expan diii othe r

applifation s (e.g. , a s a foam-blotoin g agent , refrigeran t an d solvent)

. Tota l productio n no w ha s surpasse dpre-197 4 levels

. Largely i n respons e t o aserie s o f studie s b y th e Nationa l Academ y o f Science s publishe din th e lat e 1970 s (NAS , 1976,1979a , an d1979b) whic h warne d© f substantia l depletio n an d harmfro mcontinue dus e o

f CFCs , EP A issue da aAdvanc e Notic e o f Propose d Rulemakin g (ANPR

) whic hdiscusse da n immediate freez e o n Si e productio n o f certai n CFC s an dth e possibilit y o f employin g asyste mo

f marketabl e permit s l o allocat e CF

C consumptio n amon g iadustrie s whic hus e CFC s (45 F R 66726 ; Octobe r

7,1986)

. Followin g publicatio n o

f thi s ANPR , additiona l scientifi c evidenc e (se e fo r example , Causes and

Effects of

Changes in Stratospheric Ozone: Update 1983, (NAS , 1984) ) becam e availabl e whic h suggeste dtha t

th e atmospheri c factor s affectin g ozon e level s wer e more comple x tha n previoasl y thought

. For example , atmospheri c concentration s o f gase s oiie r

tha n CFC s tha t

als o affect ozon e wer e als o increasing

. Atmospheri c model s whic har e use dt o analyz e possibl e futur

e trend s in ozon e level s wer e no w capabl e o f simultaneousl y considerin g change s in
. multipl e trac e gase s includin g CFCs

. Becaus e increase s i n some o f thes e gase s (e.g. , carbo n dioxid e an dmethane ) coul dpotentiall y buffe

r th e depletin g effect s o f CFCs , concern abou t

possibl e change s in tota l colum

n ozon e level s (i.e. , th e tota l amount

o f ozon e encountere db y radiatio n passin g fro m th e to p o f th e atmospher e to th e earth' s surfac e a t an y give n location ) wa s diminished

. ' "'':.- Th e apparen t

urgenc y o

f th e ozon e depletio n proble mwasals qreduce db y th e fac t tha t CF C us e worldwid e i n th e earl y 1980 s was ' relativel y 'constant

. Whil e some nation s di dno t follo w th e Unite dState s exampl e b y reducin g thei r ' us e o f CFC s a s aeroso l propellants

. .'•'• • other s did, ' whic hfurther

reduce dgloba l consumptio n o

f CFCs

. In addition , a7 downtur n in global economi c condition s durin g thi s perio dha dtemporarily 7 ; • reduce dth e rate o

f growthO f CFCs'i n nonaeroso l applications

. M - ' B. EPA's Stratospheric Protection Plan

• Sinc e 1983 , worldwide^prdduCtio n pf' '" , CFC s ha s grow n a t

a n average , annua l rat e o f 5 percent

. In light

o f thi s rat e o

f growthan dfurther

advancements'i n th e scientifi c understandin g o f th e link

. betwee n CFC s an dozon e depletion , EP A develope dit s Stratospheri c Protectio n Plan (5 1 F

R1257 , January 10 , 1986)

. Thi s pla n describe dth e analyti c basi s fo r supportin g th e on-going internationa l negotiation s an dfo r reassessin g th e nee dfo

r additiona l regulation s o

f CFC s an dothe r

potentia l ozone-depletin g chemicals

. It als o se t fort haschedul e fo

r both domesti c an dinternationa l activities relate dto stratospheri c ozon e protection

. I t

committe dEP

A t o sponsorin g or

participatin g in aserie s o f workshops , bothher e an dabroad , aime dat developin g informatio n tha t woul db e use dfo

r internationa l ' negotiation s an dfo

r domesti c rulemaking

. Workshop s discussin g economi c issue s relate dt o ozon e protectio n involvin g intereste dpartie s fro mwithi n th e Unite dState s wer e hel d in Marc han dJul

y o f 1986

. Internationa l workshop s coverin g th e sam e topic s wer e sponsore db y UNE

Pan dtoo k plac e i n Ma

y an dJuly o

f 198 6 in Rome , Ital y an dLeesburg , Virginia , respectively

. Th e pla n als o committe dEP A to preparin g th e ris k

assessmen t

documen t mentione dabov e an dt o obtaining ; , revie w o f thi s documen t

b y th e Agency' s Scienc e Advisory Board(SAB)

. Meeting s o

f asubcommitte e o

f th e SA B

. organize dspecificall y to revie w thi s documen t wer e hel din November

198 6 an dJanuary 1987

. Comment s fro mth e publi c wer e als o solicite d(5 1 F R40510 , Novembe r

7,1986)

. Th e documen t

ha s bee n revise din respons e to comment s fro mth e pane l an dth e publi c an di s availabl e in th e docke t

at th e addres s give n above

. Th e finding s o f th e ris k assessmen t

ar e describe di n greate r detai l below , in Sectio n IV

.P. 8



### Federa l Registe r

/ Vol

. 52 , No

. 23 9 /

Monday , Decembe r

14 , 198 7 /

Propose dRule s 4749 1 Finally , th e pla n als o committe dEP A t o conductin g arulemakin g o n possibl e further regulatio n o

f CFC s an dto activel y participatin g in th e UNE P negotiation s oha n internationa l agreemen t

t o limi t ozone-depletin g chemicals

. C. International

Negotiations Th e initia l roun do

f internationa l negotiations , conducte dunde r th e auspice s of

UNEP , resulte di n th e Vienn aConventio n fo

r th e Protectio n of th e Ozon e Layer , whic hwa s signe din Marc h1985

. Thi s agreemen t promote s global coordinatio n necessar y fo r th e protectio n o

f th e ozon e laye r

b y providin g for

internationa l cooperatio n in research , monitoring , an dinformatio n exchange

. Whil e th e initia l negotiation s faile dt o reac hagreemen t o n specifi c obligation s limitin g ozone-depletin g chemicals , th e Vienn aConventio n provide s aframewor

k fo r th e continue d negotiatio n an dadoptio n o f internationa l regulatory measure s necessar y t o protec t

th e ozon e layer

. O n December

1,1986 , negotiation s resume do n apossibl e protoco l t o limi t CFC s an dothe r

ozone-depletin g chemicals

. Despit e wid e difference s i n initial position s amon g participatin g nations , thes e negotiation s resulte dte n month s late r

in th e adoptio n o

f th e Montrea l Protoco l whic hwa s signe do n Septembe r

16,1987 , b y 2

4 nations

. Specifi c provision s o

f th e Protoco l ar e discusse din detai l below , an dth e ful l tex t i s printe da s a n addendu mto thi s notice

. III

. Statutory Authority Sectio n 157(b) o

f th e Clean Ai r

Ac t (4 2 U.S.C

. 7457(b) authorize s th e Administrato r

t o issu e "regulation s fo

r th e contro l o

f an y substance , practice , process , o r

activity (or

an y combinatio n thereof ) whic hin hi s judgment

may reasonabl y b e anticipate dto affect th e stratosphere , especiall y ozon e in th e stratosphere , i

f suc heffect

i n th e stratospher e may reasonabl y b e anticipate dt o endange r

publi c healtho r welfare

. Suchregulation s shal l tak e int o accoun t th e feasibilit

y an dth e cost s o

f achievin g suc hcontrol. " Tw o aspect s of

thi s regulatory authority ar e notable

. First , th e Administrato r

i s no t require dto prov e that a"substance , practice , proces s or activity " doe s in fact

deplet e stratospheri c ozon e before h e ma y regulat e it

. In 1977 whe n th e ozon e protectio n provision s wer e adde dt o th e Clea n Ai r Act , Congres s recognize dthat scientist s wer e no t

certai n whethe r stratospheri c ozon e wa s bein g deplete d an dwha t wa s causin g an y depletio n tha t di doccur
. See, e.g., H.R

. Rep

. No

. 294 , 95t hCong. , 1s t

Sess

. 98-9 9 (1977)

. However , Congres s als o recognize dth e potentially seriou s healthan d environmenta l consequence s o f ozon e depletio n i

f it wer e •occurring , an d authorize dEP

A t Q ac t i n th e fac e o

f scientifi c uncertaint y t o protec t agains t thos e advers e consequences
. Id. Thus , th e Administrato r

may regulate o n th e basi s o f "hi s judgment " tha t

th e subjec t o f regulatio n "may b e reasonabl y anticipated " t o affec t

th e stratospher e an dtiiat th e effect "may b e reasonabl y anticipate dt o endange r

publi c healt h an dwelfare. " Second , th e Administrato r i s give n broa dlatitud e t o choos e wha t an dho w t o regulate

. H e i s no t

limite dt o controllin g ozone-depletin g substance s themselves ; h e may als o regulate "an y practice , process , activity " tha t threaten s th e ozon e layer

. Nor i s h e limite dt o aparticular

contro l strategy

. Beside s a n implici t

requiremen t

tha t regulation s b e efficacious , th e statut e require s only that

the y tak e int o accoun t th e cos t an dtechnological feasibility o f achievin g th e require dleve l o f control

. I n short , EP

A ha s broa dlatitud e t o emplo y th e regulatory option s i t find s appropriat e to contro l threat s t o stratospheri c ozon e tha t

in turn threate n publi c healthan dwelfare

. IV

. Ris k Assessmen t A. Changes in Atmospheric Composition Measurement s o

f th e concentration s o f specifi c gase s ove r

th e pas t decad e o r longer hav e produce dconclusive

. evidenc e tha t

huma n activitie s ar e alterin g th e compositio n o f th e earth' s atmosphere

. Tabl e 1 summarize s th e recen t rat e o f increas e for

severa l gases , alon g withth e perio dfo

r whic h measurement s ar e available

. Becaus e eac ho f thes e gase s affect s th e quantit y o f ozone , pas t

an dfutur e change s in thei r atmospheri c level s ar e asignifican t elemen t i n understandin g th e risks o f ozon e depletion

. Tabl e 1 show s tha t

atmospheri c level s of CFC-1 1 an d-1 2 hav e grow n a t th e rat e o f 5 percen t annuall y sinc e 1978

. CFC-1 1 i s use dprimaril y a s afoam

blowin g agen t

an dCFC-1 2 i s use d primaril y a s arefrigerant

. Outsid e th e Unite dStates , in man y countrie s both ar e als o use dextensivel y a s aeroso l propellants

. Atmospheri c level s o f CFC

113 , whic hi s use dprimaril y a s asolven t b y th e electronic s an dmeta l cleanin g industries , hav e bee n increasin g at roughl y doubl e thi s rat e durin g th e sam e period

. Thes e growt

hrate s reflec t

both continue demission s o

f CFC s durin g thi s perio dan dth e long atmospheri c lifetime s o

f thes e chemicals

. TABL E 1 .—CHANGE S I N ATMOSPHERI C CONCENTRATION S O F

OZONE-MODIFYIN G GASE S

CFC-1 1 (CCI3F ) CFC-1 2 (CCI2F2 ) CFC-11 3 (C2CI3F3 ) :..

. CFC-11 4 (C2CI2F4 ) CFC-11 5 (C2CIF5 ) Halon-121 1 (CBrCIF2 ) Halon-130 1 (CF3Br

) Halon-240 2 (C2F4Br2 ) Nitrou s oxid e (N20 ) Methan e (CH4 ) Carbo n Dioxid e (C02 ) Measure d rate s o f increas e Percen t pe ryea r

5. 0 5. 0 10. 0 (' ) (•) 23. 0 C ) (' ) 0. 2 1. 0 0. 5 Perio d

1978-198 5 1978-198 5 1975-198 3 (' ) ( M 1979-198 4 (' ) (' ) 1978-198 5 1977-198 5 1958-198 5 Referenc e

WMO , 1986

. WMO

. 1986

. Rasmusse n an d Khalil , 1982

. (' ) (' ) Khali l an d Rasmussen , 1985

. (' ) (' ) WMO , 1986

. NASA , 1986

. WMO , 1986

.



### * N o dat aavailable

. Muc hles s informatio n i s availabl e abou t growt hin Halo n 1211,130 1 an d 2402

. Thes e compound s ar e becomin g more widel y use dprimaril y i n certai n specialize dfirefighting applications

. No dat ai s yet

availabl e o n atmospheri c trend s o f Halo n 130 1 o r

2402 , whil e very limite dmeasurement s sugges t that atmospheri c level s o

f Halo n 121 1 gre w at 2 3 percen t

annuall y i n recen t

years
. In compariso n to th e CFCs , tota l level s o f thes e halon s remai n very small ; becaus e the y ar e believe dto b e extremel y efficien t depleter s o

f ozon e (Prathe r

e t al. , 1984 ; WMO , 1986) , the y ar e bein g propose dfo

r inclusio n in thi s regulation

. (Se e below , Sectio n VI. ) Carbo n dioxid e an dmethan e ar e als o increasin g in th e atmosphere , thoughat annua l rate s muchslowe r tha n th e CFCs

. Unlike CFC s an dhalons , thes e hav e th e opposite effect

o nP. 9



### 4749 2 Federa

l Register/

Vol

. 52 , No

. 23 9 /

Monday

. Decembe r

14 , 1987 /

Propose dRule s

concentration s o f

ozon e an dcoul d potentiall y offse t

depletio n cause db y
' increase s i n thes e othe r gases
. Carbo n dioxid e emission s resul t primaril y fro m th e burnin g o f

fossi l fuels

. I n contrast , th e reaso n tha t

methan e level s hav e increase di s no t

wel l understood

. Moreover , thi s ga s ha s amuc hshorte r atmospheri c lifetim e tha n CFC s (approximatel y te n years)

. Nitrou s oxid e level s hav e als o bee n increasin g a t

approximatel y 0. 2 percen t annually

. Source s o f

emission s includ e fossi l fue l combustio n an dfertilizers

. I n isolation , nitrou s oxide s releas e nitroge n i n th e stratospher e whic hwoul dac t similarl y t o chlorin e an dcatalyticall y destro y ozone
. However , dependin g o n th e relativ e level s o f

chlorin e an d nitrou s oxide , th e latte r ca n hav e th e ne t effec t o f slowin g dow n th e rat e o f depletio n b y bindin g chlorin e i n a relativel y inactiv e state

. B. Changes in Ozone Levels Th e extensiv e measurement s of recen t growt hi n atmospheri c level s of ozone
modifyin g gase s provid e onl y indirec t evidenc e tha t

huma n activitie s ma y b e alterin g th e earth' s ozon e layer

. T o mor e full y analyz e thes e risks , tw o approache s hav e bee n developed

. First , direc t measurement s o f

th e quantit y o f ozon e hav e bee n analyze dt o determin e if an y trend s ar e apparent ; an dsecond , atmospheri c model s hav e bee n develope dtha t

attemp t t o projec t

futur e change s i n ozon e level s base do n assume dchange s i n atmospheri c level s o f ozone-modifyin g gases
. 1

. Direc t Measurement s o f

Ozon e Level s Monitorin g of

ozon e level s ha s bee n conducte dt o variou s degree s usin g ground-base dinstrument s fo r severa l decades

. Thes e measurement s examin e bot htota l colum n ozon e level s an d change s i n th e quantit y of ozon e a t specifi c altitudes

. Sinc e th e lat e 1970s , satellite-base dinstrument s hav e expande dth e abilit y t o measur e ozon e level s throughou t

th e world

. Base do n th e informatio n availabl e a t th e time , th e WM O assessmen t conclude dtha t

tota l colum n ozon e level s ha dno t

substantiall y bee n altered—tha t

n o statisticall y significan t chang e ha doccurred

. Fo r example , i t cite s astud y b y Reinse l (1985 ) whic h show s tha t

fo r th e perio d197 0 t o 1983 , tota l colum n ozon e level s ha ddecrease d b y onl y 0.00 3 ±1. 2 percen t pe r decad e whic hdoe s no t

represen t

astatisticall y significan t

trend

. Th e WM O assessmen t

als o state d tha t ozon e level s i n th e uppe r atmospher e (a t

approximatel y 4 0 kilometers ) had , i n fact , decrease db y approximatel y 0. 2 percen t t o 0. 3 percen t pe r

yea r ove r th e perio d197 0 t o 1980

. However , increase s i n ozon e level s i n th e tropospher e (i.e. , th e lowe r atmosphere ) ha doffse t

th e decrease s abov e resultin g i n effectivel y n o chang e i n tota l colum n ozone. 1 / Bot hthes e findings—essentially littl e o r n o chang e i n tota l colum n ozon e an d decrease s a t

4 0 km—appea r

consisten t wit hcurren t

atmospheri c theorie s an d model s an dar e containe di n EPA' s risk assessmen t

whic hwa s use da s th e basi s fo r thi s rulemaking

. However , preliminar y informatio n tha t ha s onl y recentl y becom e availabl e raise s th e questio n whethe r

tota l colum n ozon e level s have , i n fact , decline di n recen t years
. 2

. Preliminar y Evidenc e o f Ozon e Depletio n
a
. Seasona l Ozon e Losse s i n Antarctica

. I n Ma y 1985 , a n articl e wa s publishe di n Nature (Farman , Gardine r an dShanklin , 1985 ) whic hprovide d evidenc e tha t

ozon e level s durin g th e month s o f

Septembe r

t o Novembe r

ove r Antarctic aha ddecline db y approximatel y 4 0 percen t fro mth e lat e 1970s

. Thi s discover y o f th e "Antarcti c ozon e hole " b y th e Britis hAntarcti c Surve y team , base do n dat afro ma ground-base dinstrument , wa s completel y unexpected

. Losse s o f

th e magnitud e observe di n Antarctic awer e no t

predicte db y curren t atmospheri c theorie s o r models

. Th e Antarcti c ozon e hol e thu s raise s severa l importan t

questions

. Ar e th e losse s i n ozon e cause db y CFC s an d halons ? Ar e thes e los s mechanism s uniqu e t o th e condition s foun dabov e Antarctic ao r

d o the y hav e implication s fo r ozon e level s elsewhere ? Coul dthi s seasona l ozon e los s itsel f hav e implication s fo r

globa l ozon e concentrations ? How , i f a t all , d o ou r curren t theorie s an dmodel s nee dt o b e altere dt o reflec t

thi s phenomenon ? Thes e question s hav e bee n th e subjec t o f considerabl e researc hwithi n th e scientifi c communit y sinc e th e initia l articl e i n Nature appeared

. I n Octobe r

1986 , atea mo f

researcher s travele dt o Antarctic at o begi n th e proces s of

collectin g dat at o ai di n answerin g thes e questions

. Preliminar y result s fro mth e firs t

Nationa l Antarcti c

1 Ove r the long term , increase s i

n ozone i n th e lower atmosphere canno t

continu e to offse

t decrease s i

n th e stratospher e without substantia l healt han denvironmental damag e resulting

. Ozon e i n th e lower

atmosphere ha s bee n linke dto respiratory diseas e i

n human s an ddamag e to crop s an dforest s an da s aresult i s regulate dby EP

A under one o f it s national ambient

ai r qualit y standards

. Moreover , the same gase s producin g increase dozone i

n th e lower

atmosphere ar e als o greenhous e gase s an dwoul dcontribute to substantia l increase s i

n globa l temperatures

. Ozon e Expeditio n strongl y sugges t tha t anomolou s chlorin e chemistr y play s a rol e i n th e developmen t o f th e ozon e hole

. Tea mmember s reporte d measurement s o f

chlorin e monoxide— a ke y compoun di n th e catalyti c cycl e b y whic hchlorin e destroy s ozone—tha t wer e 20-5 0 time s greate r tha n observe d elsewher e i n th e atmospher e (Pyl e an d Farman , 1987)

. Thes e measurement s hav e recentl y bee n substantiate db y preliminar y dat aoellecte ddurin g airplan e flight s ove r

Antarctic adurin g th e formatio n o f

th e ozon e hol e i n 198 7 a s par t o f experiment s conducte db y th e NASA , th e Nationa l Oceanographi c an d Atmospheri c Administratio n (NOAA) , an dothers

. Man y question s mus t

stil l b e answere dbefor e plausibl e change s i n theorie s an dmodel s ca n b e mad e t o accoun t fo r factor s responsibl e fo r th e ozon e hole

. Researcher s stil l mus t determin e th e exac t

mechanism s o r reaction s whic hproduc e th e hig hlevel s o f chlorin e monoxid e an dthe y mus t als o determin e th e rol e o f

dynami c (e.g. , meteorologica l force s includin g temperature , pressure s an dwinds ) factors

. Mos t

importantly , the y stil l mus t determin e whethe r

thes e los s mechanism s ar e uniqu e t o Antarctic ao r ma y als o affec t

ozon e level s elsewher e an dwhethe r

losse s i n Antarctic aalon e coul dinfluenc e globa l concentration s of ozone
. Unti l acleare r

pictur e emerges , th e scientifi c issue s raise db y th e Antarcti c ozon e hol e canno t ye t serv e a s aguid e fo r

polic y decisions

. Becaus e o f

thes e remainin g uncertainties , EP A believe s tha t n o adequat e basi s ye t

exist s fo r

factorin g th e cause s an dgloba l implication s of th e Antarcti c ozon e hol e int o it s ris k assessmen t

an dregulator y scheme

. Th e Agenc y ha s d e fact o assume dtha t th e ozon e hol e i s no t

relate dt o CFC s an d halons

. Additiona l measurement s fro ma secon dexpeditio n t o Antarctica , furthe r revie w o f

dat aobtaine dfro mth e airplan e flight s throug hth e ozon e hole , an drelate datmospheri c modellin g studie s shoul dbecom e availabl e i n th e comin g year
. Th e Agenc y intend s t o closel y follo w thes e scientifi c development s an dwil l modif y it s ris k assessmen t

i f ne w informatio n warrant s suc hchanges

. I t

als o intend s t o activel y participat e i n upcomin g internationa l scientifi c assessment s tha t ar e require d i n 198 9 an dever y fou r

year s thereafter , whic har e t o b e use da s th e basi s fo r determinin g th e nee dfo r change s t o th e term s of th e protoco l whic hcoul doccu r beginnin g i n 1990

. EP A i s particularl y intereste di n comment s o n it s treatmen t o f thi s issue

.P.1 0



### Federa l Registe r

/ Vol

. 52 , No

. 23 9 /

Monday , Decembe r

14 , 198 7 /

Propose dRule s 4749 3
b

. Possibl e Globa l Losse s i n Ozone

. Recentl y publishe ddat ahav e als o calle dint o questio n th e conclusio n tha t global tota l column ozon e level s hav e no t decrease d(Kerr , 1987)

. Ground

base dmeasurement s o

f tota l colum

n ozon e no w sugges t

tha t a3 percen t

t o 5 percen t decreas e ha s occurre dove r th e pas t si x years
. Decrease s o

f asimilar magnitud e ove r

roughl y th e sam e perio d hav e bee n reporte dbase do n a preliminary assessmen t

o f dat afro mth e Nimbus- 7 satellit e (Kerr , 1987)

. Becaus e o f th e complexitie s in interpretin g satellit e dat a(e.g. , calibration , instrumen t

drif t an dothe r

corrections) , thi s dat ai s currentl y undergoin g further scrutiny

. A s wa s th e cas e withth e Antarcti c ozon e hole , globa l ozon e losse s o f thi s magnitud e appea r

t o fal l outsid e th e bound s o f wha t woul db e expecte dfro

m curren t theorie s an dmodels

. I

f the y ar e confirme db y further

revie w o f th e evidence , severa l importan t question s woul db e raised

. Are thes e losse s i n exces s o f histori c variatio n or

ar e the y du e t o natura l cause s (e.g

. th e sola r cycle , volcani c activity , etc.) ? Are the y relate dt o increase s i n atmospheri c level s o f CFC s an dhalons ? What , i f anything , mus t

b e change di n curren t model s t o accoun t

fo r suc hlosses ? A thoroug hrevie w o

f thi s dat at o resolv e thes e importan t

uncertaintie s ha s recentl y bee n initiate db y scientist s a t NAS A an dNOAA

. Pendin g th e outcom e o

f thi s assessment , EP

A doe s no t believ e tha t

thi s preliminary evidenc e ha s yet

bee n adequatel y reviewe dan danalyze db y th e scientifi c communit y t o allo w fo

r i t t o b e use di n it s ris k assessmen t

or regulatory decisions

. Onc e th e on-going revie w i s completed , i

f ne w informatio n become s availabl e an dpreviousl y unresolve d issue s ar e successfull y addressed , the n EP A wil l modif

y it s risk assessmen t

t o reflec t thi s improve dunderstandin g o f recen t trend s in ozone
. Thi s informatio n wil l als o b e examine din th e contex t o f th e upcomin g internationa l scientifi c an dpolic y review s unde r th e term s o

f th e Protocol

. EP

A specificall y request s comment s o n th e appropriat e means o f factorin g ne w scientifi c evidenc e int o it s ris k assessmen t

an dfutur e polic y decisions

. 3

. Rol e of Atmospheri c Model s i n Predictin g Future Ozon e Level s Whil e direc t

measurement s provid e usefu l informatio n concernin g pas t change s in ozon e levels , atmospheri c model s ar e th e onl y availabl e too l fo r predictin g possibl e futur

e trend s in ozone
. Thes e models , i n more or les s detail , attemp t

t o replicat e th e force s whic hdetermin e ozon e concentrations

. Fo r example , curren t

model s includ e approximatel y 5 0 chemical specie s foundi n th e atmospher e an dsimulat e ove r 14 0 different reaction s amon g thes e chemical s whic hdirectl y o r indirectl y affec t ozon e abundance

. Fro mEPA' s perspectiv e i n evaluatin g risks , ake y questio n i s t o wha t degre e thes e model s ca n accuratel y predic t futur e ozon e changes

. A s state dabove , curren t model s d o no t

predic t th e Antarcti c ozon e hol e an dsugges t tha t global ozon e level s shoul dno t hav e yet decline db y eve n on e percen t base do n th e histori c us e o

f CFC s an dhalons , an d change s in othe r

trac e gases
. Furthermore , curren t

model s fai l t o accuratel y projec t

th e abundanc e o

f al l chemical specie s a t

al l altitudes , thereb y lowerin g our

confidenc e i n thei r predictiv e powers
. Despit e thes e shortcomings , boththe

. EP A an dWM O risk

assessment s conclude dtha t

atmospheri c model s represen t th e bes t availabl e fool s fo

r evaluatin g futur

e trend s in ozon e levels

. Thes e studie s sho w that , whe n teste d agains t th e curren t

make-u p of

th e atmosphere , th e existin g atmospheri c model s d o areasonabl y goo djo b o f replicatin g mos t

ke y atmospheri c constituents

. Thus , th e model s accuratel y predic t

many , thoug h certainl y no t

all , o f th e ke y chemical constituent s whic haffec t

th e creatio n an ddestructio n o

f ozone
. Whil e mode l accurac y wil l inevitabl y improv e ove r time , EP A ha s reliedo n curren t

version s i n assessin g th e risks o

f future ozon e depletion

. 4

. Future Trend s i n Ozon e Levels : Assumin g No Furthe r

Regulatio n o

f CFC s or Halon s I n utilizin g model s t o predic t futur e ozon e trends , th e rat e of

growthof ozone-modifyin g gase s i s ake y variable

. A s par t o f th e Regulatory Impac t Analysi s (RIA

) prepare din support

o f thi s proposal , EP

A examine dth e risks o

f ozon e depletio n fro

mcontinue dus e o

f CFCs , halon s an dothe r

relevan t trac e gases
. Th e assumption s underlyin g thi s analysi s ar e detaile di n Chapte r 4 o f th e RI A an dar e summarize dhere

. EP A conducte dextensiv e studie s analyzin g possibl e futur

e rate s o f growth fo r CFC s an dhalon s i n th e absenc e o f additiona l regulations

. (Se e fo r example: Hammitt e t al

. (Rand) , 1986 ; Nordhau s an dYohe , 1986 ; an dGibb s e t al

. (ICF) , 1986. ) Thi s issu e wa s als o th e subjec t o f bot hEP A an dUNE

Psponsore d workshop s in 1986

. Base do n thi s review , EP

A believe s tha t

stron g marke t deman dexist s fo

r CF C product s i n man y sector s o

f th e economy , bothi n th e Unite dState s an dabroad , an dtha t in th e absenc e o

f regulation , us e o

f CFC-11 , -12 , an d-11 3 woul dincrease

. In th e RIA , amiddl e estimat e o f growth in trac e ga s emission s wa s developed

. Fo r CFC-1 1 an dCFC-12 , th e middl e estimat e implie s a n averag e annua l growthrat e o

f approximatel y 2. 7 percent , whic hreflect s a2. 5 percen t annua l growthrat e fo

r th e develope d world , an dslightl y higher projecte d growthi n th e developin g worl dan di n th e Sovie t Union

. Th e middl e scenari o include s a n averag e annua l growthrat e o f 2. 9 percen t

fo r CFC-113 , 2. 6 percen t fo r CFC-114 , an d2. 6 percen t fo r CFC

115

. Recen t studie s b y Industria l Economics , Inc

. (1987) , withth e cooperatio n o

f a n a dho c technica l committe e representin g halo n producer s an dusers , provide dth e basi s fo r estimate s of

future growthi n productio n o f Halo n 121 1 an d1301 , whic har e assume dt o gro w a t

averag e annua l rate s o f 4. 3 an d2. 7 percent

. Becaus e Halo n 240

2 i s onl y use din mino r application s in th e Unite dStates , thi s chemica l wa s omitte dfro

mth e analysis

. Tabl e 2 show s th e rang e o f growth rate s assume dfo

r thes e chemicals

. Thi s rang e o f estimate s reflec t

th e man y factor s (e.g. , economi c an dpopulatio n growth , technological innovation , etc. ) whic hinfluenc e projection s over this

perio do f time

. It als o show s th e growth rate s assume dfo

r carbo n dioxide , methan e an dnitrou s oxid e whic hwer e base do n pas t

measurement s showin g increase s fo

r eac ho f thes e gases
. Base d o n asimplifie done-dimensiona l mode l o f th e combine deffect s o

f thes e gases , Tabl e 2 indicate s th e projecte dozon e depletio n fo

r eac ho f thes e scenarios

. Thus , i n th e cas e whic hrepresent s th e mid-rang e estimat e o

f futur e trend s in emission s of

trac e gases , projecte dtota l colum n ozon e woul ddeclin e b y 3. 9 percen t b y 202 5 an db y 39. 9 percen t

b y 2075

. In th e cas e wher e CF C us e onl y grow s b y approximatel y 1.2 percen t annually , projecte dozon e depletio n b y 207 5 woul dreac h7. 0 percent , In th e cas e wher e CF C us e grow s a t

approximatel y 3. 8 percen t

pe r year , projecte dozon e depletio n b y 207 5 woul dexcee d50 percent

.
TABL E 2

(Percen t tota l colum n depletion ]

Yea r LowCF C

growt h Mediu m

CF C growt h HighCF C

growt h

Protecte d Futur o Ozon e Depletio n I n th o Absenc e o f

Regulatio n
198 5 199 0 200 0 201 0 202 0 203 0 0.0 0 0.2 7 0.7 6 1.2 5 1.8 7 2.5 5 0.0 0

0.2 7 0.8 8 1.7 1 3.0 0 4.8 6 0.0 0

0.2 8 1.0 2 2.3 3 4.7 3 9.1 3P.1 1



### 4749 4 Federa l Registe r / Vol

. 52 , No

. 23 S /

Monday

. Decembe r

14 , 1987 /

Propose dRule s

TABL E 2—Continue d (Percen t tota l colum n depletion ]

Yea r

2040

. 205 0

_ 206 0 207 0 207 5 LowCF C growt h

3.3 3 4.3 2 5.4 0 6.4 7 7.0 0 Mediu m

CF C growt h
7.6 6 12.3 2 20.2 7 32.4 8 39:9 0 HighCF C

growt h
ie.s e >5 0 >5 0 >5 0 >5 0 Estimate s fro m statistica l mode l develope d b yCornel l (1986 ) an d discusse d h i EP ARis k Assessmen t (1987)

. CF C an d Halo n Scenario * Averag e implie d annua l rate s o f growt h (percent )

Lo wScenari o CFC-11 , 12,114 , 11 5 CFC-11 3 Halon-1211

. Halon-130 1 Mediu m Scenari o CFC-11,12.114

. 11 5 CFC-11 3 Halon-1211..

. Halon-130 1 Hig h Scenari o CFC-11.12 , 114 , 11 5 CFC-11 3 Halon-121 1 Halon-130 1 1985-200 0

2. 1 2. 1 5. 5 -0. 5

3. 6 4. 0 8. 8 1. 1

5. 2 6. 1 12. 0 2. 0 2000-205 0

1. 3 1. 3 1. 5 1. 6

2. 5 2. 5 2. 9 3. 2

3. 8 3. 8 4. 4 4. 7 Post-205 0

Constan t Constan t Constan t Constan t

Constan t Constan t Constan t Constan t

Constan t Constan t Constan t

Othe r Trac e Ga s Scenario s Carbo n Dioxid e 50t h percentil e scenari o fro m th e Nationa l Academ yo f Science s i s use d (implie d annua l growt h i n atmospheri c concentration s o f 0. 7 percen t fro m 198 5 t o 2165)

. Methan e Annua l growt h o f 0.01 7 part s pe rmillio n i n atmospheri c concentrations

. Nitrou s Oxid e Annua l growt h o f 0. 2 percen t t n atmospheri c concentrations

. 

### Th e ozon e depletio n estimate s in Tabl e 2 ar e base do n aparameterizatio n (i.e. , astatistica l simplification ) o f aone
dimensiona l mode l develope db y Lawrenc e Livermor

e Nationa l Laboratory

. A recen t

compariso n o

f th e result s o f thi s mode l withone
dimensiona l model s conducte dunde r th e auspice s o

f UNE Pshowe dtha t

thi s parameterizatio n produce ddepletio n estimate s tha t

wer e somewhat

lowe r tha n thos e projecte db y othe r model s fo

r th e sam e trac e ga s scenarios

. (UNEP , 1987)

. Whil e thi s parameterizatio n provide s areasonabl e representatio n o f aone
dimensiona l mode l (Connell , 1986) , b y desig n it provide s onl y agloball y average destimat e o

f depletion

. Mor

e sophisticate dtwo-dimensional model s hav e recentl y bee n develope dwhic h provid e estimate s o

f ozon e depletio n b y latitude

. Sinc e healthan denvironmenta l effect s wil l vary b y latitude , thes e mor e detaile dmodel s woul db e more appropriat e fo

r calculatin g th e impact s o f depletion

. However , becaus e thes e model s ar e expensiv e an dtime

consumin g t o use , the y ar e o f limite d utility fo

r examinin g awid e rang e o f scenario s a s require din EPA' s ris k assessment

. In addition , different two

dimensiona l model s diffe

r substantiall y i n th e degre e t o whic hdepletio n varie s withlatitude

. A s aresul t

o f tjitfs e limitations , EPA' s estimate s o f risks rel y onl y o n th e previousl y mentione done
dimensiona l parameterization

. A compariso n o

f thes e different model s wa s conducte db y EP A a s par t o f it s ris k assessmen t

(Se e Chapte r

5)

. It showe dtha t

two-dimensiona l model s predic t greate r averag e depletio n tha n one-dimensiona l model s fo r th e sam e trac e ga s scenarios

. For

example , on e two-dimensional mode l (develope db y Sze ) project s a n 1 8 percen t depletio n compare dt o a1 5 percen t depletio n fo

r exactl y th e sam e scenari o fo r aone
dimensiona l model

. Two-dimensiona l model s als o generall y projec t depletio n higher tha n global average s a t

latitude s greate r tha n 4 0 degre e Nort

ho r South , especiall y in th e spring

. S

. Effect s o

f Ozon e Depletio n o n Human Healthan dth e Environmen t An y decreas e in tota l colum n ozon e woul dlea dt o increase dpenetratio n o f damagin g ultraviole t

radiatio n t o th e earth' s surface

. Unde r

curren t atmospheri c conditions , th e ozon e laye r block s mos t

o f th e UN- B par t

o f th e ultraviole t

spectru mwithth e amoun t screene dou t

increasin g withlatitude

. Thi s curren t

gradien t in exposur e provide s ausefu l natura l experimen t demonstratin g th e effect s o f different exposur e t o UN- B radiation

. Th e healthan denvironmenta l effect s o f ozon e depletio n ar e briefly describe d below ; fo r afulle r explanatio n see Chapte r 7 o f th e RI A an dChapter s 7 t o 1 6 o f th e EPA' s ris k

assessment

. EP

A ha s attempte dt o quantif

y eac heffect , bu t insufficient

dat aha s mad e quantifyin g some effect s impossible

. Estimate s ar e als o uncertai n becaus e o f possibl e change s i n futur

e technologies

. Additiona l researc ht o bette r understan dUV- B effect s i s warranted

. However , EP

A ha s take n accoun t

o f al l possibl e ozon e depletio n effect s in assessin g th e nee dfo

r controls

. a
. Increased

Incidence of Nonmelanoma Skin Cancers. Laboratory studie s an depidemiological evidenc e sho w astron g lin k betwee n exposur e t o UV- B radiatio n an d increase dincidenc e o

f basa l an d squamou s nonmelanom aski n cancers
. (Se e Chapte r

7 o f EPA' s ris k assessment. ) Several line s o f evidenc e support thi s relationship : (1 ) Nonmelanom aski n cancer s ten dto develo p in sun-expose dsites ; (2 ) outdoo r worker s hav e higher

incidenc e rates ; (3 ) incidenc e rate s ar e higher

closer t o th e equato r

(correctin g fo

r difference s in ski n pigmentation) ; an d individual s geneticall y suspectibl e t o sunburn hav e ahigher

incidenc e o

f ski n cancers
. Severa l researcher s hav e correlate d UV- B measurement s withnonmelanom a ski n cance r

incidenc e data

. Result s fro m si x studie s sho w tha t

a1 percen t depletio n o

f tota l colum

n pzon e woul d lea dt o a n increase~i n nonmelanom a ski n cance r

incidenc e o

f 4. 8 percen t

t o 7. 6 percent

. Base do n th e expecte dgrowt hin trac e ga s emission s fo

r th e middl e scenari o presente di n Tabl e 2 , th e resultin g ozon e depletio n woul dlea dt o a n increas e in incidenc e o

f approximatel y 15 3 millio n nonmelanom aski n cance r case s amon g th e Unite dState s populatio n aliv e today an dborn b y th e year

2075

. Base do n curren t fatality rate s fro

mbasa l an d squamou s ski n cancers , thi s increas e in incidenc e coul db e expecte dto lea dto a n increas e o

f 3. 0 millio n death s o

f peopl e born durin g thi s sam e time period

. Give n th e uncertaintie s associate dwit hth e appropriat e dose

respons e relationship , thi s projectio n coul dfall withi n th e rang e o f 1.5 millio n t o 4. 5 millio n deaths

. b

. Increased

Incidence of

Melanoma Skin Cancer. Whil e th e curren t incidenc e o

f melanom aski n cance r case s i s smal l compare dt o nonmelanom acases , th e fatality rat e i s muc hhigher

. Whil e n o anima l mode l an di n vitr o experimenta l evidenc e exist s explainin g th e exac t relationshi p betwee n melanom aan dUV- B radiation , base do n th e preponderanc e o f evidence , EPA' s ris k

assesssmen t conclude dtha t

increase dUV- B exposur e woul dincreas e th e incidenc e o f melanoma

. Evidenc e i n support o f thi s conclusio n includes : (1 ) Lighte r skinne d individuals , whos e ski n ha s les s protectiv e melanin , hav e higher melonom aincidenc e rate s tha n darke r skinne dindividuals ; (2

) earl y childhoo d exposur e t o sunlight

appear s t o b e linke dto higher

incidenc e rates ; an d(3 ) individual s geneticall y incapabl e o f repairin g sunlight-induce ddamag e to cell s hav e ahigher

rat e o f incidence

. Base do n arang e o

f estimate s fo

r uncertai n factors , EPA' s ris k assessmen t develope dadose-respons e relationshi p whic hsuggest s tha t

fo r every 1 percen t increas e in ozon e depletion , th e incidenc e o

f melanom awoul dincreas e b y slightl y les s tha n 1 percen t to 2 percen t an dth e numbe r

o f fatalitie s fro mmelanom awoul dincreas e b y 0. 8 percen t t o 1.5 percent

. Base do n th e trac e ga s scenari o whic h assume da2. 7 percen t

averag e annua lP.1 2



### Federa l Registe r

/ Vol

. 52 , No

. 23 9 /

Monday , Decembe r

14 , 198 7 /

Propose dRule s 474S 5
growthi n CFCs , an dth e resultin g ozon e depletio n show n in Tabl e 2 , th e numbe r o f melanom acase s i n th e Unite dState s woul dincreas e b y 782,100 an dth e numbe r o f fatalitie s woul dincreas e b y 187,00 0 fo r th e populatio n aliv e toda y an dborn b y th e yea r

2075

. Give n th e uncertaintie s associate dwithth e dose

respons e relationship , th e numbe r of death s coul dfall withi n arang e o f 93,50 0 t o 280,000

. c
. Increased

Incidence of

Cataracts. UV- B radiatio n ha s bee n foun dto play a significan t rol e i n th e formatio n o

f cataracts

. Supportin g evidenc e includ e anima l laborator y studie s an d epidemiological studies

. Base do n th e availabl e research , adose-respons e relationshi p wa s develope di n EPA' s ris k assessmen t

(Se e Chapte r

10)

. Assumin g trac e ga s trend s an dth e resultin g ozon e depletio n fo r th e middl e scenari o describe di n Tabl e 2 , th e numbe r o f case s o f cataract s woul d increas e b y 18. 2 millio n fo r th e populatio n in th e Unite dState s aliv e toda y o r born throug h2075

. d

. Suppression of

the Immune System. Experimenta l studie s sho w a suppressio n of

th e immun e respons e syste massociate dwit

hexposur e to UV

B radiation

. Curren t

researc hdoe s no t explai n th e exac t

mechanis mb y whic h th e immune syste mi s altere do r th e potentia l implication s for awid e rang e o f diseases

. Limite dstudie s d o suggest , however , tha t

UV- B induce d suppressio n may increas e th e frequenc y o f outbreak o f herpe s simple x viru s an d leishmaniasi s (i.e. , aski n disorde r commo n in th e tropics)

. No quantitativ e estimate s o

f th e potentia l harmrelate d t o immun e suppressio n o n thes e o r othe r possibl e disease s ar e a t

thi s time possible , e
. Damages to Plants. Limite dstudie s hav e show n tha t

plant s expose dt o increase dlevel s o

f UV- B radiatio n can b e harmed

. Initia l studie s showe da substantia l vulnerability t o UV- B exposur e acros s awid e rang e of plants

. However , thes e studie s wer e conducte d in laboratorie s o r

greenhouse s an dthei r results.hav e no t

bee n replicate dunde r fiel dcondition s wher e photorepai r mechanism s may offse

t damage

. Th e onl y long-termcontrolle dfiel d stud y involve s so y beans

. Thi s stud y foundtha t

enhance dlevel s o

f UV- B radiatio n simulatin g a1 6 an d25 percen t ozon e depletio n cause dreduction s in cro p yiel dof

u p t o 2 5 percen t

i n th e teste dcultivar

. Substantiall y smalle r change s occurre din year s whe n drought condition s als o greatl y reduce dcro p yield s o f th e plant s grow n unde r naturall y occurrin g condition s (i.e. , th e contro l plants)

. Becaus e awid e rang e o f crop s hav e teste dsensitiv e t o increase d exposur e t o UV- 8 radiation , bu t hav e no t yet bee n teste dunde r

field conditions , th e dos e respons e relationshi p develope dfro mth e field test s o f so y bean s wa s use da s th e basi s fo r estimatin g impactRo n major grai n crop s i n th e RIA

. f

. Damage to Aquatic Organisms. Whil e studie s t o dat e hav e bee n limite d i n scope , it

appear s tha t

increase d exposur e t o UV- B radiatio n coul d adversel y affec t

aquati c organism s an d potentiall y disrup t

th e aquati c foo d chain

. Fo r example , studie s sugges t tha t phytoplankto n remai n clos e t o th e water' s surfac e t o facilitat e photosynthesis

. A s aresult , the y woul d b e susceptibl e t o damag e fro mincrease d UV- B radiation

. Similarly , th e larva e stag e o f man y fis hliv e at

o r nea r th e water' s surfac e an dwoul dals o b e susceptibl e t o damag e i

f ozon e depletio n occurs
. A cas e stud y showe dtha t a1 0 percen t ozon e depletio n woul dlea dt o a 6 percen t los s in th e larva l anchov y population

. Becaus e awid e rang e o f aquati c organism s hav e show n a sensitivity t o increase dexposur e t o UV

B radiation , bu t

insufficient

dat aexist s fo r developin g specifi c dose-respons e relationships , th e cas e stud y examinin g th e effect s o n anchov y larva e wa s use d a s th e basi s fo

r estimatin g impact s o n a limite dgroup o

f shellfis han dfin fishi n th e RIA

. g
. Accelerated

Weathering of

Outdoor Plastics. Plastic s expose dt o th e outdoo r environmen t

unde r curren t ultraviole t condition s contai n light

stabilizer s o r othe r additive s t o reduc e damag e fro m chalking , yellowin g o r

brittleness

. I

f UV

B radiatio n increases , damage s woul d increas e o r

greate r expens e woul db e incurre di n protectin g agains t th e damage s fro

msuc hexposure
. A relationshi p wa s develope dbetwee n UV- B exposur e an ddamag e t o outdoo r product s mad e o

f polyviny l chlorid e an d incorporate di n th e analysi s presente d i n th e RIA

. h

. Increased

Formation of Groundlevel

Ozone. Preliminary studie s hav e assesse dth e impac t o f increasedUV- B penetratio n o n th e photochemica l reaction s responsibl e for th e creation o

f groundleve l ozone
. Thes e cas e studie s sugges t

tha t groundleve l ozon e woul dfor

mearlie r i n th e da y an d neare r to populatio n centers , thus exposin g more peopl e t o it s harmfu l effects

. Tota l amount s o

f groundleve l ozon e woul dals o increase

. Whil e substantia l harmt o human healthan d welfare coul dresul t

fro mincrease d groundleve l ozone , becaus e of limite d data , only th e impact s o n cro p los s wer e include di n th e RIA

. i

. Climate Related

Impacts Due to Increases in Ozone-Modifying Gases. CFC s an dothe r gase s tha t

modif y stratospheri c ozon e ar e als o greenhous e gase s an dtherefor e contribut e t o concer n abou t

future globa l warming

. Base do n th e rat e o

f growthi n trac e gase s assume di n th e middl e scenari o presente di n Tabl e 2 , b y 207 5 agloba l equilibriu mtemperatur e (i.e. , th e earth' s temperatur e a t

th e time whe n incomin g energ y i s balance dagains t outgoin g energy ) increas e of-5. 8 degree s centigrad e (10. 4 degree s Fahrenheit ) coul db e anticipated

. Base do n earlie r report s b y th e Nationa l Academ y o f Science s (1983) , thes e estimate s coul d b e 5 0 percen t

higher o r lowe r t o reflec t curren t uncertaintie s i n climat e mode l predictions

. Thi s temperatur e increas e coul db e expecte dt o affec t wate r resources , agricultura l productivity , forests , an dendangere dspecies

. However , becaus e of

th e difficult

y i n quantifyin g thes e effects , th e RI A doe s no t asses s th e exten t

o f potentia l harm relate ddirectl y t o climat e change

. On e possibl e indirec t

effect o f climat e chang e i s increase dse aleve l rise

. Base d o n curren t

model s an dth e trac e ga s scenari o describe dabove , th e projecte d globa l warmin g coul dincreas e globa l se aleve l b y 97. 8 centimeter s b y 2075

. However , becaus e o

f th e difficult

y in quantifyin g impact s relate dt o se aleve l rise , th e analysi s i n th e RI A i s limite dt o extrapolatio n o

f severa l cas e studie s quantifyin g damag e fro

mse aleve l rise t o majo r por t area s i n th e Unite dStates

. 6

. Conclusio n Base do n th e WM O assessmen t an d EPA' s recentl y complete drisk assessment , th e Agenc y believe s tha t th e curren t

rat e of growthi n atmospheri c level s of

ozone-depletin g gase s i s likel y t o resul t

i n substantia l depletio n of

ozon e whic hwoul dlea dt o significan t

harmt o human healthan d th e environmen t

Whil e man y uncertaintie s exis t

an donly limite d studie s ar e availabl e i n severa l o f th e area s of potentia l harm , th e curren t evidenc e present s astron g cas e fo r actio n t o substantiall y reduc e curren t level s o f us e o f th e mos t poten t ozone
depletin g chemicals

. A compariso n o f th e potentia l cost s of

limitin g CFC s an d halon s t o th e potentia l healt han d environmenta l benefit s i s presente d belo w i n Sectio n VII

. V

. Th e Montrea l Protoco l Th e Montrea l Protoco l i s a comprehensiv e agreemen t fo r dealin g withth e threa t

o f stratospheri c ozon e depletio n b y man-mad e chemicals

. I t ha s thre e ke y components

. First , i t require s partie s t o significantl y reduce : thei r productio n an dconsumptio n o fP.1 3



### 4749 6 Federa l Registe r / Vol

. 52 , No

. 23 9 /

Monday , Decembe r

14 , 1987 /

Propose dRale s : ~ . ^ - •-H M •. - '

... . _ 

### certai n ozone-depletin g substance s over th e nex t decade

. Second , it

provide s fo

r revisio n o f th e reductio n requirement s base do n scheduled , periodi c assessment s of

availabl e scientific , environmental , technica l an deconomi c information

. Third , i t

impose s restriction s o n trad e i n ozone-depletin g product s withnonpartie s t o minimiz e nonparties ' potentia l t o deplet e stratospheri c ozon e an dt o encourag e nation s t o become parties

. Eac ho f thes e component s i s describe din greate r detai l below

. Th e Montreal Protoco l wil l tak e effect ("ente r int o force" ) o n January 1,1989 , provide dtha t

a t leas t 1 1 instrument s ratifyin g th e Protoco l hav e bee n deposite db y State s o r

regional economi c integratio n organization s representin g at

leas t two-third s o

f 198 6 estimate dglobal consumptio n o f th e covere dsubstances , an dtha t th e Vienn a Conventio n fo

r th e Protectio n o

f th e Ozon e Layer

ha s entere dint o force

. I

f thes e condition s hav e no t bee n fulfilled b y January 1,1989 , th e Protoco l wil l ente r int o forc e o n th e 90t

hda y following th e dat e o n whic hth e condition s hav e bee n fulfilled

. Th e Vienn aConventio n ha s s o fa r bee n ratifie db y 1 4 nations , includin g th e Unite dStates , a s note dabove

. Twenty instrument s o

f ratification s ar e require d fo r it s entry int o force

. Th e Departmen t o f Stat e an dth e Whit e Hous e ar e currentl y in th e proces s o

f requestin g fro mth e Senat e it s advic e an dconsen t t o ratificatio n o

f th e Protocol , s o tha t

th e Presiden t ma y ratif y it o n behal f o f th e Unite dStates

. A. Control

Provisions 1

. Th e Chemical s Covere d Th e Protoco l identifie s i n Anne x A tw o group s o

f ozone-depletin g substance s fo

r contro l "controlle d substances")

. Group I include s CFC-11 , -12 , -113 , -114 , an d-115

. Thes e chemical compound s ar e full y halogenate dan dtherefore ar e stron g potentia l ozone-depleter s tha t ar e eithe r widel y use do r

potentia l substitute s fo

r thos e chemical s whic har e no w widel y used

. Group II include s Halo n 1211,130 1 an d2402

. Becaus e the y contai n bromine , thes e chemical s ar e eve n stronge r potential ozone-depleter s tha n th e chemical s in Group I

. However , the y ar e currentl y emitte din smal l quantitie s relativ e to CFCs , substantia l uncertaintie s exis t

a s to thei r

exact ozon e depletio n weights , an drecen t evidenc e suggest s that

thei r ozone
depletin g potentia l ma

y substantiall y depen don atmospheri c chlorin e concentrations

. Th e Protocol' s coverag e extend s onl y : to th e specifie dchemical s in bulk form

. It s definitio n o

f controlle dsubstance s exclude s chemical s whic har e in 7 manufacture dprodur^ s othe, r tha n a containe r use dfo r th e transportatio n ci

r storag e © f th e chemicals/EP A i s seekin g coBimej t o n th e implication s o

f usin g thi s definitio n o

f conlfdlle dsubstances

. 2

. "Calculate dLevels " Th e Montreal Protoco l doe s no t plac e limit s of i eac ho f th e controlle d substances

. Instead , M place s separat e limit s o g th e tota l ozon e depletio n potent i j o f Group I Wi

dGrou p I I controlle dsubstance s tha t apart y produce ^ an dconsUrijes

. Apart y may consequentl y produc e an dconsum e an y mi x o f t|i e controlle dsubstance s withi n eac ho f ih e Groups , S B lon g a s th e tota l ozon e depletio n potential o f th e mi x doe s no t excee dth e specifie dlimits

. Fo r purpose s o

f calculatin g tota l ozon e depletio n potentials , th e Protoco l list s i n .(Innex A ih e "ozon e depletin g potential " o

f al l bu t on e o f th e controlle d substances

. In th e cas e o

f Halo n 2402 , i t provide s tha t

th e ozon e depletin g potentia l i s "t o b e determined. " More generally , i t

note s tha t

th e ozon e depletin g potential s "ar e estimate s base do s existin g knowledg e an dwil l b e reviewe dan drevise dperiodically, " a s provide dunde r

Articl e II , paragrap h9

. Th e Pfrotoco

l use s the phras e "calculate dlevels " t o refer to thi s weightin g o

f controlle dsubstance s base dO H thei r relativ e ozone-depletin g potentials

. It

provide s unde r

Articl e 3 tha t calculate dlevel s b e determine dfo r eac hGroup o

f controlle dsubstance s b y multipljsn g th e amount

o f emission s (in kilograms ) o

f eac hcontrolle dsubstanc e withi n tiiat

Group b y th e ozon e depletin g potential specifie dfo r i t i n Anne x A , an daddin g togethe r th e resultin g products

. , . 3

. Productio n an dConsumptio n Limit s Jus t a s th e Protoco l doe s no t

plac e limit s o s eac hcontrolle dsubstance , it doe s no t plac e limit s o n particular use s (e.g

. aerosols , refrigeration ) o f th e controlle dsubstances

. Instead , th e Protoco l limit s eac hparty' s tota l productio n an dconsumptio n o f Group I (CFCs ) an dGroup I

I fhalons ) controlle d substarEe s fo

r specifie d12-mont

h periods

. It leave s up t o eac hparty ho w t o sta y withi n thos e limits

. Articl e 1 o

f th e protoco l define s productio n a s "th e amoun t o f controlle d substance s produce dminu s th e amoun t destroye db y technotogie s to b e approve db y th e Parties. " It define s consumptio n a s "productio n plu s import s minu s export s o

f controlle d substances. " However , Articl e 3 provide s tha t after January 1,1993 , any export o f controlle dsubstance s t o non
partie s may no t

b e subtracte din calculatin g th e consumptio n leve l ;o f th e exportin g party

. '

. 4

. Timin g an dMagnitud e o f Limit s Th e limit s impose db y th e Protoco l ar e generall y define di n term s of 12 T 

### morit h period s an dkeye dt o calculate dlevel s o f 198 6 productio n an dconsumption. ' ; 

### Th e yea r 198 6 wa s chose n a s th e • • baselin e fo

r control s s o tha t

nation s di d no t hav e a n incentiv e t o increas e thei r productio n an dconsumptio n durin g * 1987 , Whe n th e protoco l wa s bein g '

. negotiated , i n orde r

t o establis hhigher baselines

. .'', '

_ ; y 7' 7 •'" • ''• '
a
. Group I

controlled

substances. For Grou p I controlled^substances , Articl e 2 of th e Protoco l require s eac hpart y t o " ' reduc e in thre e step s th e calculate d leve l o f it s productio n an dconsumptio n o f thos e substances

. For th e first step , paragrap h1 o

f Articl e require s tha t

i f th e Protoco l enter s int o forc e o n January 1,1989 , eac hpart y mus t

limi t it s calculate d level s o f consumptio n an dproductio n to 198 6 level s i n th e 12-mont hperio d commencin g July 1,1989 , an din eac h12

- mont hperio dthereafter

. I

f th e Protoco l enter s int o forc e o n alate r date , eac h part y mus t

mee t tha t limi t in th e 1 2 mont hperio dcommencin g o n th e firs t da y o f th e seventhmont

hfollowing th e dat e o f entry int o forc e o

f th e Protocol , an di n eac h12-mont

hperio dthereafter

. However , th e Protoco l permit s eac h part y t o increas e it s productio n in eac h o f th e relevan t

contro l period s b y u

p to 1 0 percen t of it s calculate dleve l o

f 198 6 production , provide dtha t th e increase d productio n i s use dfo

r on e or bot ho f tw o purposes
. On e purpos e i s t o satisf y th e "basi c domesti c needs " o f developin g countrie s operatin g unde r Articl e 5 o

f th e Protocol

. Tha t

Articl e allow s developin g countrie s wh o ar e partie s t o th e Protoco l an dwhos e annua l

.

„ calculate dleve l o

f consumptio n o

f bot h Grou p I an dGroup I

I controlle d substance s i s les s tha n 0. 3 kilogram s pe r capit ao n th e date.i t

become s apart y to th e Protocol , t o dela y it s complianc e withth e Protocol' s contro l provision s b y te n year s after

tha t specifie din thos e provisions , s o lon g a s it s pe r capit a consumptio n doe s no t

excee d0. 3 kilograms

. WithArticl e 5 , th e drafter s o f Protoco l sought to fairl y accommodat e th e "specia l situation " o

f developin g countrie s whos e 198 6 consumptio n o f th e controlle dsubstance s wa s lo w relativ e to tha t

o f develope dcountries

. By allowin g developin g countrie s to increas e thei r

consumptio n somewhatP.1 4



### Federa l Registe r

/ Vol

. 52 , No

. 23 9 /

Monday , Decembe r

14 , 198 7 /

Propose dRule s 4749 7

an db y allowin g partie s t o increas e thei r productio n t o suppl y th e developin g countries , th e drafter s hope dt o encourag e developin g countrie s t o joi n th e Protoco l an dmake i t

unnecessar y fo r the mto buil dor

expan dan y capacit y fo r producin g controlle dsubstance s i n orde r to suppl y fo

r alimite dperio do

f time thei r growin g domesti c needs

. Th e secon djustificatio n fo r th e partie s t o increas e thei r

productio n b y up t o 1 0 percen t of 198 6 level s i s "for

th e purpose s o

f industria l rationalizatio n betwee n Parties. " Articl e 1 o f th e Protoco l define s industria l rationalizatio n 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 of

on e Party t o another , fo

r th e purpos e o

f achievin g economi c efficience s o r

respondin g t o anticipate d shortfall s in suppl y a s aresul t o f plan t closures. " For th e secon dreductio n step , paragrap h3 require s eac hpart y t o limi t th e calculate dleve l o

f it s productio n an dconsumptio n i n th e perio dfro mJuly 1,1993 , t o Jun e 30,1994 , an din eac h12

- mont hperio dthereafter , t o 8 0 percen t of th e calculate dleve l o

f it s 198 6 productio n an dconsumption

. Notably , th e secon dreductio n ste p take s effect beginnin g July 1,1993 , regardles s of whe n th e Protoco l enter s int o force , s o lon g a s th e Protoco l ha s entere dint o forc e b y tha t

date

. A s in th e cas e o

f tb e firs t step , eac hpart y may excee dit s productio n limi t

in eac hcontro l perio d b y u p t o 1 0 percen t

o f it s 198 6 productio n level , provide dth e productio n ove r

th e limi t i s use dfo r on e or botho f th e sam e tw o purpose s describe dabove

. Finally , fo r th e thir dreductio n step , paragrap h4 require s eac hpart y t o limi t th e calculate dleve l o

f it s productio n an dconsumptio n i n th e perio dfro mJuly 1,1998 , t o Jun e 30,1999 , an din eac h12

- mont hperio dthereafter , t o 5 0 percen t of it s calculate dleve l o

f 198 6 productio n an dconsumption

. Eac hpart y i s allowe d t o excee dit s productio n limi t b y up t o 1 5 percen t of it s calculate dleve l o

f 198 6 production , provide dth e productio n in exces s o f th e limi t i s use dfo

r on e o r bot ho f th e purpose s describe dabove

. Th e thir dreductio n ste p wil l automaticall y tak e effect

beginnin g Jul

y 1,1998 , s o lon g a s th e Protoco l enter s into forc e anytim e before Jul y 1,1998 , an dunles s decide dotherwis e b y atwo

third s majorit

y o f th e partie s presen t an dvoting , representin g at leas t two

third s o f parties ' tota l combine d calculate dleve l o

f consumption

. Paragrap h5 o

f Articl e 2 provide s in limite dcircumstance s for further increase s in productio n o f Group I controlle dsubstance s durin g any o f th e contro ' oeriod s discusse dabove

. That paragrap hpermit s partie s t o excee dth e productio n limit s se t

ou t i n paragraph s 1 throug h4 t o th e exten t

the y receive , for th e purpose s o

f industria l rationalization , transfer s of productio n fro mpartie s whos e calculate dleve l o f 198 6 productio n o

f Grou p I controlle d substance s wa s les s tha n 25 kilotonnes

. However , th e tota l combine dcalculate d level s o f productio n o

f th e partie s involve di n suc hatransfe r o f productio n may no t excee dth e productio n limit s se t ou t in Articl e 2

. In addition , th e secretaria t

o f th e Protoco l mus t

b e notifie do f an y suc htransfer

. b

. Group II

controlled

substances. Fo r Group I I controlle dsubstances , paragrap h2 o

f Articl e 2 require s tha t eac hpart y limi t

th e calculate dleve l o

f it s productio n an dconsumptio n o f thos e substance s t o th e calculate dleve l o f it s 198 6 productio n an dconsumptio n of th e same
. Partie s mus t

mee t tha t limi t i n th e 12-mont hperio dcommencin g o n th e firs t da y o f th e 37t hmont hfollowin g th e dat e o n whic hth e Protoco l enter s int o forc e (Januar y 1,1992 , i

f th e Protoco l enter s int o forc e o n January 1,1989) , an di n eac h12-mont

hperio dthereafter

. However , eac hpart y ma y increas e it s productio n o

f Group II controlle d substance s i n eac hcontro l perio db y u p t o 1 0 percen t

o f th e calculate dleve l o

f it s 198 6 productio n of

thos e substances , provide dtha t

th e increase dproductio n i s use dfo r th e sam e purpose s for

whic h increase dproductio n o

f Group I controlle dsubstance s i s allowe d(i.e. , supplyin g developin g countrie s an dfo r th e purpose s of

industria l rationalization)

. Articl e 2 o

f th e Protoco l include s severa l othe r

paragraph s applicabl e onl y t o particular

partie s othe r

tha n th e Unite dState s (e.g. , paragrap h6 an d8)

. Consequently , thos e paragraph s wil l no t b e summarize dher e no r

implemente db y today' s propose drule

. B. Review and

Revision Provisions Built int o th e Protoco l ar e mechanism s fo r revisin g it s requirement s i n respons e to th e lates t

informatio n o n stratospheri c ozon e depletio n an dit s consequences
. Articl e 6 require s th e
. parties , beginnin g in 1990 , an da t leas t every fou r year s thereafter , t o asses s th e contro l measure s se t

fort hi n Articl e 2 o n th e basi s o

f availabl e scientific , environmental , technica l an deconomi c information

. I

t further provide s fo

r panel s o f expert s i n th e relevan t

field s to issu e report s o n suc hinformatio n on e year prio r t o eac hassessment

. Paragrap h1 0 o

f Articl e 2 permit s th e partie s t o chang e th e coverag e o f th e Protoco l b y revisin g th e lis t o f chemical s include din Grou p I or

Group I I o f controlle dsubstances , base do n th e periodi c assessment s require db y Articl e 6

. Shoul dth e partie s ad d chemical s t o eithe r

Group , paragrap h1 0 als o permit s th e partie s t o decid e o n th e mechanism , scop e an dtiming of contro l measure s tha t

shoul dappl y t o thos e substances

. Decision s unde r paragrap h 1 0 becom e effectiv e whe n accepte db y a two-third s majorit

y vot e o f th e partie s presen t an dvoting

. Paragrap h9 o

f Articl e 2 allow s partie s t o adjus t theozon e depletin g potential s specifie di n Anne x A an dth e contro l measure s specifie di n Articl e 2 , base d o n Articl e 8 assessments

. Paragrap h9 provide s tha t

th e partie s firs t

attemp t t o attemp t t o reac hconsensu s o n th e nee d for an y adjustment ; otherwis e decision s t o mak e an y adjustmen t

mus t b e adopte db y atwo-third s majority vot e of th e partie s presen t

an dvotin g representin g a t

leas t fifty percen t

of th e tota l consumptio n o

f th e controlle d substance s of

th e parties

. C. Trade Provisions Articl e 4 o

f th e Protoco l require s partie s t o impos e specifie drestriction s o n trad e o

f ozone-depletin g product s withnonparties

. Th e purpos e of th e trad e restriction s i s t o reduc e th e potentia l o

f nonpartie s t o adversel y affec t th e ozon e laye r

an dt o induc e nonpartie s t o join , o r

a t leas t compl y with , th e Protocol

. Pursuan t t o paragrap h1 of

Articl e 4 , eac hpart y mus t

ba n th e import

o f controlle dsubstance s fro

mnonpartie s withi n on e yea r

o f th e Protocol' s entry int o force

. Unde r

paragrap h3 , withi n thre e year s o

f th e Protocol' s entr y int o force , th e partie s ar e t o develo p alis t o f product s containin g controlle d substance s (e.g. , refrigerators , ai r conditioners) ; an dwithi n on e yea r o f th e lis t havin g becom e effective , partie s no t objectin g t o th e lis t

ar e t o ba himport s o

f th e liste dproduct s fro

mnonparties

. Unde r paragrap h4 , withi n five year s o f th e Protocol' s entr y int o force , th e - partie s shal l determin e th e feasibility of bannin g o r

restrictin g product s mad e with , bu t no t containing , controlle d substance s (e.g. , electroni c equipment ) and , i f feasible , develo p alis t

of suc h products ; an dwithi n on e yea r o f th e lis t havin g becom e effective , partie s no t objectin g t o th e lis t

ar e t o ba n import s o

f th e liste dproduct s fro

mnonparties

. Paragrap h5 call s o n partie s t o "discourage " th e export

t o nonpartie s of technolog y fo

r producin g an dutilizin g controlle dsubstances

. I n asimilar vein , paragrap h6 require s partie s to "refrain " fro mprovidin g ne w financia l hel p fo r th e export t o nonpartie s o

f anythin g that woul dfacilitat e th e productio n of controlle dsubstances

.P.1 5



### 4749 8 ' Federa l Registe r/ Vol

. 52 , No

. 23 9 /Monday , Decembe r 14 , 198 7 •••

/ Propose dRule s
Articl e 4 als o provide s fo r severa l exemption s fro

mth e trad e restrictions

. Paragrap h7 provide s tha t paragraph s 5 an d6 wil l no t

appl y t o products , equipment , plant s o r

technolog y tha t contribut e t o th e reductio n o f emissio n of controlle dsubstances ; an dparagrap h 8 exempt s fro

mth e restriction s o

f paragraph s 1, 3 an d4 thos e nation s tha t d o no t join , bu t ar e foun dt o b e i n complianc e with , th e Protocol

. D. Other provisions A s fo r it s implementation , th e Protoco l establishe s requirement s fo r partie s t o report relevan t dat a(Articl e 7) ; a n accompanyin g conferenc e resolutio n call s for UNE Pt o conven e ameetin g o

f governmen t

expert s t o recommen dt o th e partie s measur e fo

r harmonizin g an d coordinatin g dat ao n production , import s an dexport s o

f controlle d substances

. Th e Protoco l als o require s th e partie s a t

thei r firs t meetin g t o develo p enforcement

mechanism s an d penaltie s fo

r non-complianc e (Articl e 8)

. T o eas e compliance , th e Protoco l call s fo r th e partie s t o cooperat e in th e research , developmen t

an dexchang e of informatio n o n emission s reductio n technologies , substitute s fo r ozone
depletin g products , an dcontro l strategie s (Articl e 9)

. It

als o urge s partie s t o len don e another , an d particularl y developin g countries , technica l assistanc e t o facilitat e participatio n i n an dimplementatio n o f th e Protoco l (Articl e 10)

. VI

. Proposed Actio n A. Scope and

Stringency EP A propose s t o implement

th e Montreal Protocol , provide dtha t it enter s into forc e an dth e Unite dState s ratifie s it

. Base do n it s assessmen t o f th e availabl e evidence , EP

A believe s tha t th e Protocol' s requirement s ar e a n appropriat e respons e t o th e potentia l ozon e depletio n proble mat thi s time

. Moreover , give n that

potential ozon e depletio n i s aglobal proble mrequirin g a global response , EP

A believe s tha t

th e Protoco l i s th e mos t

effectiv e means o

f addressin g th e problem

. For thes e reasons , EP

A believe s tha t implementatio n o

f th e Protoco l woul d bes t protec t publi c healthan dwelfare fro mth e advers e effect s o

f an y ozon e depletion

. Th e Protoco l ma

y b e amende din way s tha t coul dsignificantl y affec t

th e stringenc y o

f th e contro l regime it prescribes

. For

example , th e Protoco l provide s explicitl y tha t

th e fift y percen t reduction s i n consumptio n an d productio n require db y Articl e 2 , Paragrap h4 , wil l no t

come into effect

i f th e Partie s b y a*wo-third s majorit y vot e otherwise

. I n th e even t tha t an y suc h amendmen t

i s adopte db y th e parties , EP A intend s t o conduc t

rulemakin g to conside r th e effect th e change s should

. hav e o n fce contro l regime prescribe d b y thes e regulations

. ./-.,.-. ' s-.i' • , . . • 

### 1

. Basi s fo r contro l requirement s EPA' s assessmen t

o f th e risk s o

f ozon e depletio n indicate s tha t th e Protocol' s contro l requirement s ar e a n appropriat e response , particularl y
. - - considerin g tha t

th e Protoco l permit s revision s o

f th e requirement s a s ne w informatio n warrants

. Th e chemical s covere db y th e Protoco l ar e thos e whic hcurrentl y pos e th e greates t

threa t t o stratospheri c , . ozone
. Moreover , th e Protocol' s different treatmen t o f CFC s an dhalon s reasonabl y reflect s difference s i n wha t i s know n abou t

th e ozon e depletio n potentia l o

f th e tw o classe s o

f chemical s an dth e volume o

f thei r respectiv e emissions

. Th e exten t

t o whic hachemical wil l contribut e t o ozon e depletio n depend s o n it s chlorin e an dbromin e conten t an d it s atmospheri c lifetime

. Tabl e 3 list s thes e characteristic s fo

r thos e compound s considere dfo r coverage
. It illustrate s tha t

th e chemical s i n Group II (halons ) hav e greate r

ozon e depletio n potential s tha n th e chemical s i n Group I (CFCs) , an dtha t

Grou p I chemical s hav e greate r ozon e depletio n potential s tha n CFC-2 2 an dmethy l chloroform

. It als o show s tha t

carbo n tetrachlorid e (CC14 ) i s astronge r

potentia l ozone-deplete r tha n severa l o

f th e chemical s include d in Group I

. TABL E 3.—RELATIV E OZONE-DEPLET

IN G POTENTIA L O F CHEMICA L COM

POUND S

Compoun d

CFC-1 1 CFC-1 2 CFC-11 3 CFC-11 4 CFC-11 5 Halon-121 1 Halon-130 1

.... . Halon-240 2 HCFC-2 2 Methy l Chlorofor m CC I 4 Life

tim e (years )

7 5 11 1

. .9 0 18 5 38 0 2 5 11 0
<• > 2 0 6. 5 5 0 Ozone

deplet

in g poten

tial 1 (mas s basis )

1. 0 1. 0 0. 8 1. 0 0. 6 3. 0 10. 0 6. 0 0.0 5 0. 1 1.0 6 2 No t reported

. • ' < Sources : Lifetim e estimate s ar e base d

. o n WM O (1986),

. an d ar e summarize d i n EPARis k

Assessment , 1987 , arid.EPA

Regulator

yimpac t Analysis , 1987 , Ozone , depletio n potential s fo rGFC-11,.T12 , - 113,-114.-115 , Halon-121 1 • an d 1301

. methy l chloroform , an d CCI 4 approxi

mat e thos e estimate d b yth e Lawrenc e Livermor e Nationa l Laboratory-"•one-di

mensiona l atmospheri cmode l (Connell , persona l communication).

. Ozon e 'deple

tio n potentia l forJHalon-240 2 reporte d a t negotiation s fo rMontreal Protocol

on* Substances

that Affect the Ozone Layer (Bakken , ' persona l communication)

. Value s fo rCFC-11 , -12 , -113 , -114 , r115 , an d Halo n 121 1 an d 130 1 ar e liste d i n Anne xAo f th e Montrea l Protocol

. Thes e value s ar e preliminar yestimate s base d o n currentl yavailabl e researc h an d ar e likel yt o chang e ove rtim e a s ne w informatio n become s available

. 

### HCFC-2 2 an dmethy l chlorofor mar e appropriatel y exclude dfro mcoverag e fo r severa l reasons
. First , a s Tabl e 3 shows , the y ar e substantiall y les s harmful t o th e atmospher e tha n the

. othe r chemical s considere dfo

r coverage
. Second , the y hav e short atmospheri c lifetimes , s o thei r futur e atmospheri c concentration s can b e more quickl y reduce db y emissio n limit s i f suc hreduction s ar e determine dt o b e necessar y in th e future

. Third , both chemical s ar e potentia l substitute s fo r som e o f th e more poten t

ozone-depletin g chemical s covere db y th e Protocol

. I n contrast , carbo n tetrachlorid e i s a relativel y stron g potentia l ozone
depleter , bu t

it s smal l volume o

f emission s make s i t

reasonabl e t o exclude

. Mos t

carbo n tetrachlorid e i s consume da s afeedstoc k

t o producin g CFC s an drelativel y littl e i s emitte dinto th e atmosphere

. CFC-11 4 an dCFC-11 5 ar e reasonabl y include ddespit e currentl y mino r productio n level s becaus e the y ar e full y halogenate dCFC s an dtherefore hav e lon g atmospheri c lifetime s an dar e relativel y stron g potentia l ozone
depleters

. Furthermore , i

f the y wer e no t covered , the y coul db e substitute di n some , use s fo

r th e covere dCFCs

. I

f suc h substitution s wer e t o occur , th e ris k o f ozon e depletio n woul dno t b e substantiall y reduced

. '

1 Measure d relativ e t o CFC-1 1 whic h i s se t t o 1.0

. Value s reporte d o n a mas s basi s (i.e

. pe rkilogram)

. * I tshoul d b e note d tha tCFC-11 5 ca n b e use d I n ablen d wit h HCFC-2 2 i n severa l commercia l refrigeratio n applications
. Whil e an y suc h us e o f CFC-11 5 woul d b e covere d b y th e Protocol' s contro l requirements , shiftin g from CFC-1 2 t o thi s blen d woul d substantiall y reduc e th e overal l ozone depletin g potentia l o f

th e chemical s used . Sinc e thi s reductio n i n ozon e depletio n woul d occu rwithou t substantiall y alterin g produc tprices , industr y ma y continu e thi s tren d a s on e mean s o f reducin g risk s from ozon e depletion
.

### Tabl e 3 als o highlight s th e substantia l

concern withHalo n 1211,130 1 an d240 2 a s potentia l ozone-depleters

. Becaus e bromin e remain s in achemicall y reactiv e stat e in th e stratosphere , i t i s a n extremel y effectiv e catalys t contributin g t o ozon e depletion

. However , whil e genera l agreemen t

exist s tha t

th e halon s are , kilogra

mfo r kilogram , more poten t ozone-depleter s tha n CFCs , substantia l uncertaintie s exis t

regardin g thei r ozone-depletio n potential

. A s aresult , th e ozon e depletio n weight s provide din Tabl e 3 an dAnne x A o

f th e Protocol , particularl y i n th e cas e o

f th e halons , shoul db e viewe da s preliminary , an d ar e likel y t o chang e a s more informatio n become s available

. EP A examine dth e effect

o n futur e ozon e depletio n base do n projection s fro masimplifie done-dimensiona l atmospheri c model

. For

abaselin e cas e wher e CFC s ar e reduce db y 5 0 percen t ove r te n years , i

f th e halon s wer e allowe dt o continu e to gro w at expecte d rates, depletio n o

f 3. 2 percen t

woul d occu r b y 2075

. By freezing halo n productio n a t

curren t levels , th e leve l o

f predicte dozon e depletio n woul db e reduce dt o 1. 3 percen t

b y 2075

. EPA' s ris k

assessmen t

als o indicate s tha t th e Protocol' s reductio n requirement s woul dsubstantiall y reduc e potentia l depletio n an dthus th e advers e healthan dwelfare effect s o f depletion

. A s show n earlie r in Tabl e 2 , base do n mode l projections , continue d trend s in worldwide us e o f CFC s in th e absenc e o f regulatio n coul dresul t

in substantia l ozon e depletio n sometim e durin g th e earl y par t

o f th e nex t century

. Th e exten t

to whic hlimit s o n CF

C an d halo n productio n an dconsumptio n coul dreduc e estimate dozon e depletio n i s dependent , in part , o n futur e trend s in othe r trac e gases , th e exten t

t o whic h othe r nation s als o reduc e thei r consumptio n an dproductio n o f ozone
depletin g chemicals , an dth e ability o f curren t model s t o predic t

futur e change s i n ozon e levels

. Th e assumption s underlyin g thi s analysi s ar e explaine din detai l in th e RI

A accompanyin g thi s rulemaking

. Severa l different

level s o f emissio n reduction s an dthei r

effect s o n ozon e depletio n ar e presente di n Tabl e 4

. Thes e estimate s ar e compare dto th e bas e cas e (n o regulation ) show n earlie r in Tabl e 2

. The y indicat e tha t internationa l actio n to freez e CFC s at 198 6 level s alon e woul dsubstantiall y reduc e depletio n compare dto th e bas e case , bu t woul dstil l resul t

in approximatel y 6 percen t

depletio n b y 2075

. In contrast , mode l projection s indicat e tha t

th e reduction s require db y th e Montrea l Protoco l ari dth e anticipate dparticipatio n b y mos t develope dan ddevelopin g nations , woul dresul t

i n les s tha n 2 percen t depletio n b y 2075

. I

f th e Unite dState s wer e t o tak e additiona l step s beyon d th e 5 0 percen t

reductio n require db y th e Protoco l an dreduc e i| s CF C consumptio n b y 80~percent , depletio n woul donl y b e reduce db y a n additiona l 0. 1 percent

. TABL E 4.—OZON E DEPLETIO N LEVEL S FO R ALTERNATIV E REDUCTIO N OPTION S (Percen t depletio n o

f tota l colum n ozone ]
Cas e

3

. CF C 20 % 4

. CF C 50 % 5

. CF C 80 % 6

. CF C 50%/Halo n freeze 7
. CF C 50%/Halo n freeze/U.S

. 80 % : 8

. U.S

. only/CF C 50 % - 200 0
0. 9 0. 8 0. 8 0. 8 0. 8 0. 8
0. 8 0. 8 202 5

3. 9 2. 3 1. 9 1. 5 1. 2 1. 3
1. 2 3. 1 205 0

12. 4 4. 3 3. 4 2. 3 1. 6 1. 6
1. 4 8. 5 207 5

39. 9 6. 2 5. 0 3. 2 2. 2 1. 3
1. 2 20. 4


### Source: Case s 1- 6 assum e specifie d reduction s ar e take n o n th e timetabl e specifie din th e Montrea l Protoco l an d tha t 9 4 percen t o f th e non-U.S

. develope dworl dan d65 percen t o f th e developin g worl dparticipat e i n makin g thes e reductions

. Cas e 7 assume s tha t th e U.S

. take s unilatera l action

. A more detaile ddiscussio n o

f assumption s i s include din Chapte r

5 o f th e RIA

. Give n th e man y variable s an d uncertaintie s involve din predictin g ozon e depletio n fa

r int o th e future , th e Protocol' s contro l requirement s achiev e areasonabl e degre e o

f ris k reduction

. Moreover , th e Protoco l include s revie w an drevisio n mechanism s fo r obtainin g more o r les s risk reductio n a s advance s i n modellin g capability , ne w data , or othe r relevan t developments warrant

. Th e Protocol' s trad e provision s ar e als o areasonabl e means o f reducin g th e ris k o f stratospheri c ozon e depletion

. A s mode l projection s indicate , broa d observanc e o

f th e Protoco l i s neede dt o effectivel y protec t

stratospheri c ozone , an dnation s tha t

neithe r joine dno r complie dwit

hth e Protoco l woul d endange r th e ozon e layer

. Implementatio n o

f th e Protocol' s trad e restriction s woul dreduc e th e potentia l fo r thos e nation s t o adversel y affec t th e ozon e laye r

an dwoul dinduc e the mt o joi n th e Protocol

. 2

. Internationa l Consideration s Take n a s awhole , EP

A believe s tha t th e Protoco l effectively addresse s th e global proble mo

f potentia l ozon e depletion

. Th e Agenc y thu s consider s it unwis e to

. ris k

underminin g th e agreemen t

b y deviatin g fro

mit s requirements

. A s explaine dearlier , EP

A believe s tha t th e availabl e evidenc e full y support s th e nee dfo

r th e Protocol' s contro l requirements

. Moreover , failure

b y th e Unite dState s t o mee t al l th e requirement s woul dse t

adamagin g precedent

. Fo r

th e Protoco l t o b e effective , nation s canno t

pic k an d choosewhic ho

f it s provision s t o • implement

. Requirin g th e Unite dState s t o d o mor e tha n th e Protoco l require s coul d als o b e counterproductive

. Were EP A t o implemen t

th e reduction s require db y th e Protoeo l regardles s of whethe r th e Protoco l enter s int o force , or requir e greate r reduction s tha n th e Protoco l requires , othe r

nation s might

hav e les s incentiv e t o joi n th e Protocol

. Th e failure o f man y nation s t o joi n th e Unite dState s i n bannin g CFC s i n aerosol s demonstrate s tha t unilatera l Unite dState s actio n doe s no t necessaril y lea dothe r

nation s t o reduc e thei r emissions , an draise s th e concern tha t othe r nation s migh

t "free-ride " o n Unite dState s reduction s t o avoi d makin g costl y reduction s themselves

. In an y event , a s note dearlier , eve n i f EP A wer e t o requir e tha t

th e Unite dState s tak e a n additiona l ste p beyon dth e Protoco l an dreduc e it s consumptio n b y 8 0 percent , potentia l ozon e depletio n woul donl y b e reduce db y a n additiona l 0. 1 percent

. B. Control

Strategy A s note dearlier , th e Montrea l Protoco l leave s u p t o eac hpart y ho w t o achiev e th e require dreduction s in productio n an dconsumption

. EPA' s goal in implementin g th e Protoco l i s t o provid e th e marke t

plac e witha s muc h flexibilit y a s th e Protoco l permit s t o achiev e th e require dreduction s i n th e mos t economicall y efficien

t manne r possible

. 1

. Economi c Incentive s Versu s Engineerin g Controls/Ban s Tw o genera l approache s fo r achievin g th e Protocol' s require dreduction s o f controlle dsubstance s wer e evaluate d b y th e Agency

. On e approac hrelie s o n marke t incentive s t o achiev e lo w cos t reduction s in th e us e o

f CFC s an d halons

. Under

thi s approac hEP

A coul d eithe r directl y restric t

th e suppl y o

f CFC s an dhalon s o r

asses s aregulatory fee o n thei r

use
. Either

cas e woul d increas e cost s of

usin g CFC s whic h woul dgiv e thos e firm s withrelativel y low-cos t reductio n option s a n economi c incentiv e t o reduc e thei r

us e o f thes e chemicals

. Thos e firm s wher e n o suc h reductio n opportunitie s exis t woul d continu e t o us e CFCs , althoug hthe y woul dhav e t o pay ahigher price

. Accordin g t o economi c theory , providin g firm s witha n incentiv e to make cost-effectiv e reduction s shoul dP.1 7



### 4750 0 Federa l Registe r / Vol

. 52 , No

. 2f9 /

Monday , Decembe r

14 , 198 7 /

Propose dRule s
minimiz e th e cost s t o society o f meetin g th e regulatory goal

. Thre e alternativ e economi c incentiv e approache s wer e evaluated : marketabl e rights base do n auction s ("auctione drights"), marketabl e right s allocate db y quot at o pas t producer s an dimporter s ("allocate dquotas") , an dregulatory fees

. Th e secon dgenera l approac hi s th e us e o f traditiona l engineerin g control s an dproduc t

o r chemical s ban s ("engineerin g control s o r

bans")

. It involve s EP

A decidin g whic hspecifi c industrie s o r

use s o f CFC s an dhalon s shoul db e regulated

. EP

A woul dmake thi s decisio n base do n th e availability o f lo w cos t reductions , th e quantit y of reduction s achieved , th e administrativ e burden s o f monitorin g compliance , th e enforceability o

f th e regulation , an dth e impact s o n smal l businesses

. Thi s approac hi s EPA' s usua l metho do f regulatin g pollution

. It

wa s considere d alone , an dasupplemen t

t o allocate d quota s base do n th e exten t to whic h CF C user s may b e postponin g th e adoptio n o

f lo w cos t reduction s "hybri d option")

. EP A evaluate deac ho

f thes e option s in light o f th e following criteria : Certainty o

f achievin g th e desire d environmenta l goal ; economi c cost s an d efficienc y in meetin g tha t

goal ; equity considerations ; administrativ e cost s an d enforceability ; legal certainty ; an d impact s o n smal l business

. Eac ho f th e option s ha s specifi c advantages , bu t

als o raise s possibl e problems. Th e regulatory fee s optio n shoul dprovid e fo

r leas t cos t reductions , whil e providin g clear

pric e incentive s fo r user s t o reduc e thei r

relianc e o n CFC s an dhalon s an dfo

r producer s t o introduc e chemical substitutes

. However , regulatory fee s alon e woul d no t ensur e tha t

th e freez e o r

reduction s o f controlle dsubstance s woul db e achieve ddurin g th e time perio drequire d b y th e Protocol

. For

example , more firms tha n anticipate dcoul ddecid e t o pay th e fee an dcontinu e usin g CFC s or halons

. Engineerin g control s o r

ban s woul dpos e th e sam e problem , sinc e use s o f CFC s o r halon s tha t

wer e no t regulate dcoul d continu e to grow , possibl y offsettin g reduction s fro

mth e regulate duses
. Engineerin g control s o r

ban s woul d als o b e administrativel y burdensome , considerin g th e man y thousand s o f smal l firms tha t

us e CFC s or

halons

. I n th e cas e o f regulatory fees , anothe r concern i s whethe r

EP A ha s th e lega

l authority t o impos e afee whic hwoul d resul t in revenue s in exces s o

f th e cost s o f operatin g th e program ; regulatory fee s migh t b e invalidate da s beyon dth e Agency' s authority unde r

th e Clean Air Act

. (The legal issue s concernin g fee s ar e discusse din aseparat e analysi s prepare d% EP

A whic hi s containe din thedookei ) Th e auctione dright s optio n woul d efrtail auclionin g rights-allowing a specifie damoun t

o f productio n o r consumptio n o

f CFC s o r halons

. Th e auction s Woul

db e ope n t o an y intereste dparty

. Th e tota l amoun t o f productio n an dconsumptio n right s auctioned ? woul dreflec t

EPA' s regulator f goal

. Revenue s fro

mth e auctio n v|oul dg o t o till Unite dState s Treasury , Rrm s seekin g t o us e CFC s or halon s weul dhav e to obtai n right s a t auctio n o t fey purchasfei g the mfro

m othe r firafeo n asecondary market

. Akeraatifely , t o th e exten t CF C o r halo n producer s or

supplier s ha dno t purchase ! right s at

auction , final user s of thes e fhemical s coul dsimpl y bu y the mdisfiti y throug hthei r existin g channels * ©

f supply

. EP

A woul dmonito r complianc e b y check-wi

g whethe r produces s an dimporter s hel dright s authorin g thei r

productio n an d consumption

. Lik e al l th e economi c incentiv e approaches , auctione dright s shoul d provid e lo r

economicall y efficient reductions

. In addition , an y revenue s fro mth e auctio n woul dg o t o th e genera l treasury 3 

### Concern s hav e bee n raised , howevet , tha t

auctions , a t

leas t initially , woul doreat e larg e HHcertaintie s fo r firms abjou

t pric e aa davailability , an d coul d\md t o speculatio n an dshort-term hoardm g o

f permit s (beyon dafirm' s actua l needs ) durin g th e auctio n process* 4 

### Also , legal>question s hav e bee n raise dconsemifi g EPA' s authority unde r tj» e Clean Ai r

Ac t t o implement

a n auctio n to allocat e rights

. (Thes e issue s ar e als e discusse diath e EP A analysi s containe din th e docket. ) EP A favor s simpl y allocatin g right s equa l t e th e quantit y o

f allowabl e produoMo n an dconsumptio n t o producer s an dimporter s o f controlle d substance s i n 1986

. Sinc e producer s an d importer s ar e sffialli n numbe r (probabl y n o mog e tha n 1 9 t o fO) , i t

woul db e fa

r les s btffdensome t o 'allocat e right s t o the minstea do

f users
. Simila

r t o auctione drights , ftwns allocate dright s coul dbu y an dse

H themt o respon dt o

5 The argument

advance dby economist s i s that equit y woul db e serve dvyer

e revenue s fro

mthe auctio n © r regulator y fee s t o go to the Treasury becaus e th e revenue s wsul drepresen t payment s fro mthts e wh o damag e th e environment t o thos e wh o ar s damaged , i.e.

. citizens

. 4 Spetttlatio n can b e S

H ai dt o market functioning

. O f course , i f speculator s ente r

the marke t

an dbi d u p the pric e to level s highe

r than market

value , they will los e mone

y i n their subsequen t

effort s to sell i

n the aftetmarket

. However , to th e exten t price s ar e bi du p fey speculator s an dremain highe r fo r som e time , stiial l firms using CFC s o r halon s ma

y b e adversel y affected

. 

### change s in marke t conditions

. Pric e increase s a s aresul t

o f decrease d supplie s shoul dprovid e firm s usin g CFC s oriialon s "wit

hth e economi c incentiv e t o mak e th e lowes t cos t reduction s o

f controlle dsubstances

. Unlik e auctione dright s o r

regulatory fees , thi s optio n avoid s raisin g an y legal issue s concernin g EPA' s regulatory
. authority

. Th e major

concern abou t

th e allocate d quota s optio n i s on e o

f equity—shoul d curren t CF C an dhalo n producer s an d importer s rea p apossibl e windfal l profit fro mth e scarcit y create db y EPA' s regulation ? Th e exten t

t o whic hCF

C an dhalo n price s increas e ove r time wil l determin e th e magnitud e o f thi s potentia l gain

. A secon dconcern (on e tha t applie s to al l o f th e economi c incentiv e approaches ) i s tha t

certai n industrie s wher e low-cos t

reduction s ar e possibl e may decid e no t

to mak e thes e reductions , a t

leas t fo r atime , an dma

y elec t instea dt o continu e thei r us e o f CFC s o r halons

. Fo r

example , CFC s ar e avery smal l par t

o f th e cost s o

f a computer

. A s aresult , firm s in thi s industry may b e bette r

abl e t o pas s o n pric e increase s t o thei r

customers

. I

f availabl e inexpensiv e reduction s ar e no t realizedb y thes e or

othe r industry groups , the n CF

C an dhalo n price s coul d increas e more tha n the y otherwis e would , resultin g in additiona l economi c burde n o n al l firm s usin g thes e chemicals

. Th e impac t

o f thi s burde n coul db e particularl y larg e in th e nea r term , before ne w chemical substitute s becom e available

. Thes e tw o concern s ar e discusse din greate r detai l in alate r

sectio n whic h describe s potentia l remedie s t o thes e problem s an dpresent s th e alternativ e regulatory approache s stil l unde r consideratio n b y th e Agency

. 2

. Desig n o

f Allocate dQuot aSyste m EP A propose s to implement

th e Montrea l Protoco l usin g asyste mo f allocated , marketabl e "rights. " 5 

### Th e Protocol' s limit s o n productio n an d consumptio n woul db e translate dinto allocate dquota s o

f productio n right s an dconsumptio n rights

. Th e Protocol' s separat e treatmen t

o f Group I an d Group I I controlle dsubstance s woul db e reflecte din separat e right s fo r eac h group o f controlle dsubstances

. Similarly , th e Protocol' s definitio n o f

6 Th e word"rights " i s use da s amatter o f convenience

. Th e "rights " tha t woul db e create db

y th e regulation s ar e reall y privileges , since , i f futur e circumstance s o

r shift s i n the regulator

y approac h warran t change s i

n allocation s o

f controlle d substances , EP

A ma y b y rulemakin g modif

y Ih e amount o f right s allocated

.P.1 8

Federa l Registe r

/ Vol

. 52 , No

. 23 9 /

Monday , Decembe r 14 , 198 7 /

Propose dRule s 4750 1

limit s i n term s o f

"calculate dlevels " o f Grou p I o r

Grou p I I substance s woul db e carrie dove r

int o th e definitio n o f

rights

. (A s explaine dearlier , calculate dleve l i s determine db y multiplyin g th e emission s -Cil eac hcontrolle dsubstanc e b y it s ozon e depletio n weigh t an daddin g togethe r th e resultin g product s fo r al l th e controlle dsubstance s withi n eac h Group. ) Thus , right s woul db e specifie d i n term s o f

calculate dleve l o f

Grou p I o r Grou p II controlle dsubstances , s o tha t holder s o f

right s coul dselec t

an y mi x o f controlle dsubstance s withi n eac h Group , provide dtha t

th e tota l calculate d leve l o f th e mi x di dno t

excee dth e calculate dleve l o f

th e right s held

. a
. Chemical

Coverage and

Ozone Depletion Weights. Th e regulation s woul dinclud e th e sam e chemical s i n Grou p I an dGrou p II o f controlle d substance s a s th e Protoco l does

. The y woul dlikewis e adop t

th e Protocol' s ozon e depletio n weight s fo r eac ho f th e controlle dsubstances

. However , th e regulation s woul dals o provid e a n ozon e depletio n weigh t

fo r Halo n 2402 , wherea s th e Protoco l leave s th e weigh t fo r tha t halo n fo r

late r determination

. EP A i s proposin g a6. 0 weigh t fo r Halo n 240 2 base do n it s assessmen t o f th e chemical' s ozon e depletio n potential

. Th e Agenc y wil l als o propos e thi s weigh t fo r adoptio n b y th e Protoco l parties ; bu t

shoul dth e partie s establis h adifferen t

weigh t an dscientifi c evidenc e suppor t

thei r choice , EP A woul drevis e it s regulatio n t o confor mt o th e Protocol

. I n th e meantime , EP A believe s i t

appropriat e t o propos e it s assessmen t

o f th e ozon e depletio n weigh t o f Halo n 2404 t o giv e industr y a basi s for judgin g thei r

complianc e wit h th e halo n limit

. b

. Production Rights and Consumption Rights. Productio n right s hel db y firm s woul dauthoriz e the mt o produc e a calculate dleve l o f

controlle dsubstance s equa l t o th e calculate dleve l o f right s the y hold. 6 Right s woul db e apportione d amon g producer s o f

controlle d substance s accordin g t o th e calculate d leve l o f controlle dsubstance s eac h produce di n 1986 , th e baselin e yea r establishe db y th e Protocol

. Th e tota l o f

6 Productio n right s woul db e require dfo r virgi n production , bu t

no t fo r recycling , o f

controlle d substances

. Productio n use dan dconsume da s a chemica l intermediar y i s als o exempt

. Further , th e Protoco l define s productio n o f controlle d substance s a s th e amoun t produce dminu s th e amoun t destroye d"b y technologie s t o b e approve d b y th e parties. " Becaus e n o suc htechnologie s hav e ye t bee n approved , thi s proposa l doe s no t includ e an y provisio n fo r

credit s fo r

destruction

. However

. EP A intend s t o wor k

wit hindustr y i n th e futur e t o revie w existin g an dne w destructio n technologie s and , i f appropriate , submi t

thes e technologie s t o th e Partie s fo r

thei r approval

. thes e "baselin e productio n rights " woul dthu s equa l Unite dState s
. productio n i n 1986

. Consumptio n rights.woul dauthoriz e holder s t o produce off

import a calculate dleve l ofxdntrolle dsubstance s equa l t o th e calculate dleve l o f th e right s held

. A s describe dearlier , th e Protoco l define s consumptio n a s productio n plu s import s minu s exports , an dkey s it s consumptio n limit s t o 198 6 level s o f thes e thre e component s o f th e consumptio n equation

. Sinc e export s o f controlle dsubstance s ar e subtracte d from , an dtherefor e ai dcomplianc e wit h th e consumptio n limit , n o right s woul d b e require dt o expor t

(althoug h exporter s woul db e require dt o repor t thei r export s t o EPA)

. No r

woul duser s o f CFC s o r halon s eve r

becom e involve d wit heithe r

productio n o r

consumptio n rights—only producers , importers , an d exporter s woul db e directl y involve di n thi s propose dregulator y system

. Baselin e consumptio n right s woul db e apportione dt o producer s an dimporters , bu t i n amanne r

tha t take s accoun t

o f 198 6 exports

. Importer s woul db e allotte dbaselin e consumptio n right s equa l t o th e calculate dleve l o f thei r 198 6 imports , o f

controlle dsubstances

. Producer s woul db e apportione d baselin e consumptio n right s equa l t o th e calculate dleve l o f

thei r 198 6 production , les s aproportionat e shar e o f th e calculate dleve l o f

th e Unite dStates ' tota l 198 6 exports

. Th e apportionmen t formul afo r

determinin g eac hproducer' s consumptio n right s woul db e th e producer' s 198 6 productio n multiplie db y acorrectio n facto r

equivalen t

to :

[(U.S

. 198 6 production)—(U.S

. 198 6 exports) ]

(U.S

. 198 6 production )

EP A believe s producers ' baselin e consumptio n right s shoul db e reduce dt o reflec t export s becaus e producer s generall y hav e bee n th e majo r exporter s o f controlle dsubstances

. I n aseparat e rul e als o appearin g i n today' s Federa l Register , EP A i s requirin g producers , importer s an d exporter s o f

controlle dsubstance s i n 198 6 t o provid e th e Agenc y wit hth e informatio n neede dt o determin e th e Unite dStates ' 198 6 productio n an d consumptio n levels , individua l producer' s baselin e productio n an d consumptio n rights , an dindividua l importer' s baselin e consumptio n rights

. Base do n th e informatio n received , th e Agenc y plan s t o publis hpropose d baselin e apportionment s i n tim e fo r fina l apportionment s t o b e include di n thi s rul e whe n i t

i s promulgate do n Augus t 1 , 1988

. A s thei r definition s suggest , productio n an dconsumptio n right s overlap , bu t

no t entirely

. T o produc e controlle dsubstances , afirmmus t hav e bot hproductio n an dconsumptio n rights ; t o impor t controlle dsubstances , i t nee d hav e onl y consumptio n rights

. Th e overla p simpl y mirror s th e overla p o f th e Protocol' s limit s o n productio n an d consumptio n (i.e. , productio n plu s import s minu s exports)

. Severa l example s illustrat e ho w th e tw o limit s - ma y interac t

an dho w th e propose d- regulator y syste mwoul daccommodat e thes e interactions.

. Assume th e Unite dState s i n 198 6 produce d10 0 units , importe d1 0 units , an dexporte d5 unit s o f Grou p I controlle dsubstances

. Unite dState s 198 6 productio n woul db e 10 0 unit s an d it s 198 6 consumptio n 10 5 units

. Afte r th e Protocol' s freez e o n Grou p I controlle d substance s too k

effect , th e Unite dState s coul dno t

produc e u p t o 10 5 unit s o f controlle dsubstance s fo r domesti c consumptio n eve n thoug hi t woul dsta y withi n it s consumptio n limit , becaus e i t woul dexcee db y 5 unit s it s productio n limit

. Unles s th e Unite dState s gaine d th e righ t t o increas e it s productio n i n th e manne r permitte db y th e Protoco l (describe dbelow) , i t

coul donl y obtai n th e remainin g 5 unit s o f controlle d substance s permitte db y th e consumptio n limi t

b y importin g them

. T o restat e thi s scenari o i n term s o f rights , Unite dState s producer s woul db e grante dproductio n right s fo r 10 0 unit s o f controlle dsubstances

. Producer s an d importer s woul db e grante d consumptio n right s fo r

10 5 units

. Thus , producer s coul dproduc e u p t o 10 0 unit s o f controlle dsubstance s usin g al l o f thei r 10 0 productio n right s an d10 0 o f th e 10 5 availabl e consumptio n rights ; th e remainin g consumptio n right s coul db e use dt o impor t

controlle dsubstances

. c
. Allowance for

Additional Consumption Rights. A slightl y differen t exampl e illustrate s anothe r aspec t o f th e propose dregulator y system

. Assum e th e Unite dState s i n 198 6 produce d10 0 units , importe d5 units , an dexporte d1 0 unit s o f controlle dsubstances , fo r a198 6 productio n leve l o f

10 0 an da198 6 consumptio n leve l o f

95

. I n thi s case , baselin e consumptio n right s woul dno t b e plentifu l enoug ht o permi t producer s t o produc e al l 10 0 unit s fo r whic hthe y hel dbaselin e productio n rights

. Th e Protoco l woul dpermi t

productio n of

al l 10 0 units , provide dtha t a t leas t 5 ar eP.1 9



### 4750 2 Federa l Registe r/ Vol . 52 , No

. 23 9 /

Monday , Decembe r

14 , 198 7 /

Propose dRule s exporte ds o that

th e consumptio n limi t i s no t exceeded

. Th e propose d regulation s woul dpermi t

th e sam e b y grantin g additiona l consumptio n rights upo n proo f

o f export s o f controlle d substance s t o an y natio n unti l January 1 , 1993 , an dt o an y part y o

f th e Protoco l beginnin g January 1,1993. 7 

### I f aproduce r hel dproductio n right s fo

r 1 2 unit s an d consumptio n right s fo

r 1 0 units , h e coul d produc e th e 1 0 unit s fo

r whic hh e hel d productio n rights, export

2 o f th e units , an dreceiv e fro

mEP A additiona l consumptio n right s fo

r 2 units

. With thos e additiona l consumptio n rights, h e coul dproduc e al l 1 2 unit s fo r whic hh e hel dproductio n rights

. Th e regulation s woul drequir e controlle dsubstance s to b e exporte d before additiona l consumptio n right s woul db e granted , t o ensur e tha t th e Unite dState s staye dwithi n it s consumptio n limits

. I

f EP A wer e t o gran t additiona l consumptio n right s base d merel y o n aproducer' s pla n or agreemen t

to export controlle d substances , th e Unite dState s coul d excee dit s consumptio n limit s i f th e produce r di dno t ultimatel y export

th e substance s bu t

nonetheles s increase d hi s productio n a s allowe db y th e additiona l consumptio n right s h e received

. Th e regulation s woul d moreover requir e tha t

export s reac h thei r destination—no t

jus t leav e th e Unite dStates—before additiona l consumptio n right s woul db e granted

. Thi s requiremen t

i s necessar y t o trac k controlle dsubstance s fo

r purpose s o

f determinin g parties ' complianc e withth e consumptio n limits

. Otherwise , o n th e las t da y o f an y contro l period , partie s coul dexport

controlle dsubstance s a s neede dto sta y withi n consumptio n limits , bu t sinc e th e exporte dcontrolle d substance s woul dlikel y no t arriv e a t thei r destination s unti l th e following contro l period , n o party woul dhav e to includ e th e controlle dsubstance s in th e tall y o f it s consumption

. Anyon e wh o export s controlle d substance s coul dobtai n consumptio n right s equal to th e calculate dleve l o f controlle dsubstance s exported

. I f th e exporte r wer e no t als o aproducer , h e coul dsel l th e consumptio n right s to a producer

. A s further

explaine dbelow , al l right s create db y th e regulation s woul db e transferabl e subjec t to EP A verificatio n tha t

th e transfero r

in fac t possesse s th e right s bein g transferred

.

7 A s note d earlier , th e Protoco l require s that , beginnin g Januar

y 1.1993 , onl y export s t o partie s wil l b e subtracte d in determinin g consumption
. EP A wil l in future rulemaking s promulgat e alis to f partie s base d o n th e lis tkep tb y th e Secretaria tof Ih e Protocol . 

### T o illustrat e anothe r possibl e scenario , assum e tota l Unite dState s export s increase dover

198 6 levels , s o tha t th e Unite dState s wa s belo w it s consumptio n limit

. Whil e th e Unite d State s coul dno t

increas e its.pnbductio n (excep t unde r th e circumstance s describe dbelow) , it

coul dincreas e it s import s up to th e leve l permitte db y th e consumptio n cap
. T o restat e thi s in term s o f rights , i f aproduce r

wit h productio n rights fo

r 1 0 unit s an d consumptio n right s fo

r 1 2 unit s exporte d 6 units , h e coul dacquir e additiona l consumptio n rights fo

r 6 unit s an d impor t atota l o f 8 units

. A s th e abov e example s demonstrate , th e Protocol' s productio n an d consumptio n limit s ca n interac t in man y ways
. EP A ha s trie dt o creat e a regulatory syste mflexibl e enoug ht o accommodat e th e possibl e interactions

. Comment s ar e requeste do n whethe r th e propose dsyste mdoe s provid e adequat e flexibilit y an dho w it

migh t b e improved

. d

. Scheduled

Reduction of

Production and Consumption Rights. Th e regulatory syste mmus t

als o provid e fo

r th e Protocol' s schedule dreductions

. Th e propose dregulation s woul dd o s o b y reducin g th e numbe r

o f rights grante d ove r time

. For Group I controlle d substances , it

woul dgran t

producer s an dimporter s 10

0 percen t o f thei r apportione dbaselin e productio n an d consumptio n rights fo

r th e first reductio n step ; 8 0 percen t o f th e sam e fo r th e secon dreductio n step ; an d5 0 percen t o f th e sam e fo

r th e third

. For Group I I controlle dsubstances , th e regulation s woul dgran t

10 0 percen t o f th e apportione d198 6 baselin e productio n an dconsumptio n right s fo r al l th e applicabl e contro l periods

. Th e propose dregulation s d o no t ye t specif y th e contro l period s t o whic hth e grant s o f right s woul dapply , sinc e th e Protoco l make s th e timin g o f th e freeze s o f Group I an dGroup I

I substance s dependen t

o n whe n th e Protoco l enter s int o force

. EP

A solicit s comment s o n th e appropriat e time perio dfo r whic hthes e right s woul dapply

. EP

A woul d promulgate th e date s o

f th e contro l period s in afutur

e rulemakin g after

th e Protoco l ha s entere dint o forc e an d before th e Protocol' s requiremen t hav e take n effect

. Even after th e dat e o

f entry into forc e i s known , however , aquestio n wil l remai n a s to th e prope r

date s fo r th e freez e o f Group I controlle dsubstance s at 198 6 levels

. Th e issu e arise s fro mth e potentia l discontinuity in th e timin g o f th e firs t an dsecon dstep s o

f th e reductio n schedul e fo

r Group I controlle dsubstances

. Th e Protoco l specifie s 12-mont

hcontro l period s fo

r al l thre e step s o

f th e Grou p I reductio n schedule

. Bu

t whil e th e Protoco l provide s tha t

th e secon dste p wil l tak e effect beginnin g Jul

y 1,1993 , it

make s th e star t o f th e firs t ste p dependen t

o n whe n th e Protoco l enter s int o force

. I f th e Protoco l enter s int o forc e o n January 1,1989 , th e freez e wil l tak e effect beginnin g Jul

y 1,1989

. In tha t

case , th e en do f las t freez e contro l perio dwil l coincid e withth e star t

o f th e first contro l perio dfo

r th e secon dstep

. O n th e othe r hand , i f th e Protoco l enter s int o forc e o n an y dat e othe r tha n January 1st , ther e woul db e overlappin g contro l periods , unles s EP A define dth e las t contro l perio da s lastin g les s tha n 1 2 months

. T o avoi dthi s problem , EP A intend s to promulgat e date s fo

r th e las t contro l perio do f th e freez e tha t

d o no t overlap withth e first

contro l perio do

f th e 80 percen t step

. Unles s th e Protoco l enter s int o forc e o n January 1 , th e las t contro l perio do f th e freez e woul db e les s than 1 2 month s long , an dth e right s grante d fo r tha t perio dwoul db e reduce d accordingly

. EP

A solicit s comment s on thi s approach

. e
. Allowance for

Additional Production Rights. A s explaine dearlier , th e Protoco l allow s partie s to excee d thei r productio n limit s b y certai n amount s unde r

certai n circumstances

. For th e firs t an dsecon dstep s o

f th e reductio n schedul e fo

r Group I controlle dsubstance s an dfo r th e freez e o f Group I I controlle dsubstances , th e Protoco l permit s partie s t o excee dth e applicabl e productio n limit s b y 1 0 percen t o f th e calculate dleve l o

f thei r 198 6 productio n i n orde r

t o suppl y th e "basi c domesti c needs " o f partie s that ar e developin g countrie s an d"for th e purpose s o

f industria l rationalization. " For th e thir dste p o

f th e Group I reductio n schedule , th e Protoco l allow s productio n t o excee dth e 5 0 percen t productio n limi t

b y 1 5 percen t

o f 198 6 productio n level s fo

r th e sam e tw o , purposes
. Thes e allowance s ar e terme d "potentia l productio n rights"

. EP A believe s tha t

th e drivin g forc e behin dth e developin g countrie s an d industria l rationalizatio n provision s wa s t o minimiz e th e construction o f ne w manufacturin g capacity , particularl y durin g th e initia l perio dwhe n state s ar e decidin g whethe r

t o adher e t o th e Protocol

. S o viewed , th e provision s fo r 1 0 an d1 5 percen t

increase s in productio n ar e intende dt o allo w nation s tha t alread y hav e substantia l installe d manufacturin g capacit y to make availabl e limite damount s o f supplie s t

o satisf y deman dfro

mdevelopin g nations , an dt o offse

t fo r losse s in productio n that migh t b e sustaine db y shuttin gP.2 0



### Federa l Registe r

/ Vol

. 52 , No

. 23 9 /

Monday , Decembe r

14 , 198 7 /

Propose dRule s 4750 3
dow n inefficient

o r obsolet e facilities

. Th e cushio n provide db y th e allowabl e "potentia l productio n rights" wil l provid e sufficient

flexibilit y i n th e marke t t o accommodat e thes e need s withou t undu e pric e increase s tha t might encourage constructio n of ne w manufacturin g capacity

. Accordingly , EP

A propose s to implement

th e provision s fo

r 1 0 an d1 5 percen t productio n increase s b y allocatin g "potentia l productio n rights" tha t coul db e converte dto productio n right s upo n proo f

of export s o f controlle dsubstance s t o parties

. Ever y produce r grante dbaselin e productio n right s woul dals o b e grante dpotentia l productio n rights equa l t o 1 0 or 1 5 percen t o f hi s baselin e productio n rights , dependin g o n th e contro l perio dan d grou p of controlle dsubstance s involved

. A produce r

coul dthe n obtai n authorizatio n fro

mEP A t o convert

hi s potentia l productio n right s to productio n right s to th e exten t

h e exporte d controlle dsubstance s t o parties

. Becaus e th e industria l rationalizatio n provisio n refer s t o transfer s betwee n parties, an dth e developin g country provisio n similarl y limit s productio n increase s t o thos e necessar y t o suppl y parties tha t

ar e developin g countries , EP A woul dauthoriz e conversio n o f potentia l productio n right s onl y t o th e exten t controlle dsubstance s hav e bee n exporte dt o parties

. I

n futur e rulemakings , EP

A woul dpromulgate , an dfro mtime t o time revise , a s Appendi x B t o thes e regulations , alis t o f nation s tha t

ar e partie s t o th e Protocol

. Tha t lis t woul db e base do n th e lis t o f partie s kep t

b y th e Secretaria t

o f th e Protocol

. EP A woul dotherwis e issu e notice s authorizin g conversio n o

f potential productio n rights o n th e sam e basi s a s th e Agenc y woul dgran t

additiona l consumptio n rights upo n proo f o f exports

. I n bothcases , EP A woul d requir e tha t

th e exporte dcontrolle d substance s arriv e i n th e country importin g the mbefore EP A woul dissu e th e authorizin g notic e or

gran t consumptio n rights. EP

A woul dals o limi t th e authorizatio n or

th e consumptio n right s t o th e contro l perio d in whic hth e export s arrive din th e importin g country

. For aproduce r

t o make us e o

f productio n rights converte dfro m potential productio n rights , h e woul d als o hav e t o obtai n consumptio n right s i n th e sam e amount

. Sinc e an y controlle dsubstance s he exporte dto a part y woul dprovid e th e basi s fo r obtainin g additiona l consumptio n rights , EP A woul dtrea t

request s fo

r authorizatio n t o convert

potential productio n right s a s request s fo r additiona l consumptio n rights , a s well

.

Therefore , upo n proo f

o f export s t o parties , EP

A woul d(1 ) issu e anotic e authorizin g th e conversio n o f potentia l productio n rights equa l t o th e calculate d leve l o f th e exports , for

th e contro l perio di n whic hth e export s arrive di n th e importin g nation , an d(2 ) gran t consumptio n rights i n th e sam e amoun t fo r th e sam e contro l period

. Anyon e (no t

jus t producers ) exportin g controlle dsubstance s t o partie s coul d obtai n authorization t o convert potentia l productio n rights, whethe r o r no t h e hel d potentia l productio n rights

. I f h e di dno t hol dpotentia l productio n rights, h e coul deithe r

purchas e suc hrights from , o r sel l hi s authorizatio n to , someon e wh o does

. I

f enoug hcontrolle d substance s wer e exporte dt o parties , i t woul db e possibl e fo

r EP A t o issu e authorization s t o convert

more potentia l productio n rights tha n ther e wer e potentia l productio n right s t o convert

. In tha t case , authorization s beyon dthos e neede dt o convert

al l availabl e potentia l productio n right s coul dno t b e use d withou t violatin g th e term s o

f th e Protoco l an dwoul dtherefor e b e useless

. f

. Transfers Involving 25Kilotonne Parties. Th e Protoco l als o allow s apart y t o increas e it s productio n beyon dth e 1 0 o r 1 5 percen t

allowances , i

f i t receive s a transfer , "for

th e purpose s o

f industria l rationalization, " of

acalculate dleve l of productio n fro

manothe r

part y whos e 198 6 calculate dleve l of

productio n wa s les s tha n 25 kilotonnes

. However , unlike th e othe r provision s relate dt o industria l rationalization , thi s sectio n o f th e Protoco l provide s tha t

"th e tota l combine dcalculate dlevel s of productio n o

f th e Partie s concerne d (may ) no t excee dth e (Protocol's ) productio n limits. " EP A propose s t o implemen t

thi s provisio n b y permittin g anyon e ("th e recipient" ) to obtai n productio n rights i n exces s o f baselin e productio n rights t o th e exten t a"25-kilotonn e party " agree s t o transfe r

t o himsom e amoun t

o f th e calculate dleve l o

f productio n tha t

th e part y i s permitte dunde r

th e Protoco l an dt o decreas e it s productio n b y tha t amount

. In afuture rulemaking , EP A woul dpromulgat e alis t

o f 25-kilotonn e partie s a s Appendi x D to thes e regulations

. EP

A woul dadop t

alis t o f 25-kilotonn e partie s compile db y th e Protoco l parties , bu t

absen t suc halist , th e Agenc y woul dcompil e it s ow n base do n informatio n availabl e fro mth e Secretaria t

o f th e Protoco l an dth e partie s themselves

. EP A believe s tha t

an y transfe r meetin g thes e requirement s woul dserv e th e purpose s o

f industria l rationalization , whic har e t o "achiev[e ] economi c efficiencies " or "respond f

] to anticipate dshortfall s in suppl y a s a resul t o f plan t closures. " EP

A coul d reasonabl y assum e tha t

an y suc h transfe r woul d"achiev(e ] economi c efficiencies " sinc e th e Unite dState s recipien t of a25-kilotonn e party' s productio n presumabl y woul dno t see k tha t productio n unles s i t

wer e economicall y efficient

fo r hi mt o produc e it

. < Th e regulation s woul drequir e tha t th e recipien t o f a25-kilotonn e party' s productio n obtai n fro

mth e principa l diplomati c representativ e i n tha t party' s embass y i n th e Unite dState s a documen t clearl y statin g tha t

th e 25

- kilotonn e part y wil l decreas e it s productio n b y th e amoun t i t i s " transferrin g t o th e recipient

. Th e 25

- kilotonn e party' s agreemen t t o decreas e it s productio n b y th e amoun t bein g transferre dwoul densur e tha t th e tota l combine dcalculate dlevel s of productio n o

f th e Unite dState s an dth e 25-kilotonn e part y woul dno t excee dth e limit s applicabl e t o th e tw o partie s unde r th e Protocol

. Upo n obtainin g a cop y o f thi s documen t

an dothe r requisit e information , EP

A woul dnotif

y th e Secretaria t

o f th e Protoco l of

th e transfer , a s require db y th e Protocol , an dissu e anotic e grantin g th e recipien t productio n right s equivalen t t o th e calculate dleve l o

f productio n transferred

. g
. Transfer

of Rights. A s pointe dou t earlier , al l o

f th e rights an d authorization s obtaine dpursuan t t o th e regulation s woul db e transferable

. However , fo

r atransfe r

t o b e effective , th e transfero r

woul dfirs t

b e require dt o submi t atransfe r

reques t to EPA

. Th e Agenc y woul dmaintai n record s o f wh o hold s wha t

rights o r ha s bee n issue d authorization s t o convert

potentia l productio n rights

. I

f EPA' s record s indicate dtha t

th e transfero r

possesse d sufficient rights o r authorizatio n t o cove r th e transfe r

request , EP

A woul d issu e anotic e o

f transfe r t o th e transfero r an dtransferee

. Th e transfe r woul dtak e effect

a s o f th e dat e EP

A issue dth e notice , an dEP

A woul drevis e it s record s t o reflec t

th e transfer

. EP A i s proposin g thes e transfe r requirement s becaus e o

f th e nee dt o assur e complianc e withth e Protocol

. A fraudulen t transfe r o f right s o r authorizatio n woul dno t

only resul t

in highe r emission s o

f ozone-depletin g substances , bu t

ris k th e Unite dState s exceedin g th e Protocol' s limits

. Thus , EP A ha s provide dfo

r th e procedura l safeguard s describe dabov e to minimiz e th e possibility o

f fraudulen t

or mistake n transfers

. h

. Prohibitions on Production or Import in Excess of

Rights. Th eP.2 1



### 4750 4 Federa l Registe r / Vol

. 52 , N®

. 23 9 /

Monday , Decembe r 14 , 198 7 /

Propose dRule s

M M - ~ i'\

1 a '

J r. capston e of

th e propose dsyste mo f productio n an dconsumptio n right s woul db e th e prohibition s o n productio n an dimpor t

o f controlle dsubstances

. Th e regulation s woul dprohibi t anyon e fro mproducin g acalculate dleve l o f controlle dsubstance s i n exces s o f th e amoun t o f "unexpended " productio n right s hel db y tha t

person
. Similarly , the y woul dprohibi t

anyon e fro m producin g o r

importin g acalculate d leve l o f controlle dsubstance s i n exces s o f th e amoun t

o f "unexpended " consumptio n right s hel db y tha t person
. A person' s "unexpended " productio n o r consumptio n right s woul db e th e tota l of th e calculate dleve l o f

productio n o r consumptio n right s h e holds , Biinu s th e calculate dleve l of

controlledjsubstanoe s th e perso n ha s produce dand/o r imported , dependin g o n th e typ e o f right s involved

. I n short , th e prohibition s preven t anyon e a t

an y tim e fro m producin g o r

importin g controlle d substance s i n amount s greate r tha n th e unuse dproductio n an dconsumptio n rights tha t

h e hold s a t

th e time

. i

. Import Bans. I n additio n t o implementin g th e Protocol' s productio n an dconsumptio n limits , th e regulation s woul dals o enac t

th e Protocol' s ba n o n import s o f

controlle dsubstance s fro m an y nonparty , excep t

nonpartie s foun d t o b e i n complianc e wit hth e Protocol' s requirements

. Th e Protoco l require s tha t partie s impose , an dth e regulation s woul daccordingl y implement , tha t ba n beginnin g on e yea r

afte r th e Protoco l enter s int o force

. I n futur e rulemakings , EP A woul dpromulgate , an dfro mtim e t o tim e revise , a s Appendi x C t o thes e regulations , alis t

of nonpartie s foun dt o b e i n complianc e wit hth e Protocol

. Th e Protoco l als o provide s fo r partie s t o impos e impor t

ban s o n product s containin g an dproduct s mad e with , bu t no t containing , controlle dsubstances

. However , thos e provision s ar e no t self

executing , a s the y requir e furthe r actio n o f th e partie s t o implement / Thus , EP A i s no t proposin g t o impos e furthe r impar t bans , bu t wil l promulgat e suc hban s i n futur e rulemaking s whe n th e partie s hav e take n th e necessar y action

. EP A i s nonetheles s seekin g comment s o n product s tha t

shoul db e covere db y tiie futur e bans

. Th e Agenc y i s als o seekin g commen t o n whethe r

an y additiona l step s (e.g. , labellin g o f

product s containin g o r

produce dwit hcontrolle d substance s fro mnonparties ) migh t b e warrante deithe r

prio r t o o r i n conjunctio n wit hth e trad e restriction s containe di n th e Protocol

. j

. Reporting and

Recordkeeping. EP A i s considerin g avariet y o f alternativ e recordkeepin g an dreportin g requirements

. On e optio n i s t o requir e firms involve di n tiie productio n o f th e regulate dchemical s t o maintai n th e followin g information : Weekl y record s o f tht j quantit y o f

segulate dchemical s prodtce da t

eac hfacilityjncludin g contoMe dsubstascesjiipduce dan d consume dfo r

feedstoc k

purposes ; an d weekl y record s o f

th e quantit y an d purchase r

o f controlle dsubstance s prodsce da t

eac hplant

. Thes e record s woul db e retaine dfo r

aperio do f

fou r years
. I n addition , EP A woul drequir e monthl y report s fro mproducer s o f th e controlle dsubstaace s fo r eac hplan t

an d fo r aj ! plant s owne db y th e sam e comfan y withi n 1 5 day s afte r th e en do f eachiiaontii

. Th e report s woul dinclud e th e fellowing: summarie s o f monthl y productio n o f

th e controlle dsubstances ; monthl y summarie s of

th e quantit y o f sale s fo r eac ho f Si e controlle d substances ; th e quantit y an dsourc e o f materia l containin g recoverabl e controlle dsubstance s an dth e quantit y o f controlle dsubstance s recovered ; summarie s o f

tota l monthl y an dcontrol

peri®d-to-dat e productio n of th e calculate dlevel s o f

Grou p 1 an dGrou p 2 confrolle dsubstances ; an dtota l right s th e produce r

hold s a t th e en do f

eac h month

. AllOthe r approac han dth e wa y EP A i s presentl y leanin g i s t o requir e th e followin g information : dail y record s o f th e quantit y o f

th e CFC s an dhalon s produce da t

eac hfacilit y includin g controlle dsubstance s produce dan d consume dfo r

feedstoc k

purposes ; dail y record s of

th e quantitie s o f

HCFC-2 2 an dCFC-11 6 tha t

ma y als o b e produce d a t ii e sam e facilties ; continuou s record s o f

reactiv e temperatur e an d pressur e withi n th e primar y reacto r an d initia l distillatio n colum n a t eac hfacilit y durin g th e productio n operations ; dail y rec®ed s o f

purchase s an dus e o f

th e followin g material s consume di n producin g th e regulate dchemical s a t eafhplant : carbo n tetrachloride , peschloroethyleiie , chloroform , hydrofluori c acid , hydrochlori c acid , bremine , HCFC-2 2 an dCFC-23 ; an d dail y record s o f

th e quantit y an d purchase r

o f controlle dsubstance s produce da t

eac hplant

. Thes e record s woul db e retaine dfo r

aperio do f

fou r years
. Unde r thi s approach , monthl y report s require dwithi n 1 5 day s of th e en do f eac hmont hwoul dinclud e th e following : summarie s of

monthl y productio n of th e controlle dsubstances , specifyin g th e quantit y use dan dconsume da s feedstocks , an dproductio n quantitie s of HCFC-2 2 an dCFC-116 , if the y ar e produce da t

th e sam e facility ; monthl y summarie s o f

th e quantit y o f

sale s fo r eac ho f

th e controlle dsubstances ; descriptio n o f

an y materia l alteration s i n th e annua l productio n pla n require d fo r eac hfacilit y b y EP A (a s describe d below) ; descriptio n o f

an y shift s i n operatin g characteristics;'th e quantit y an dsourc e o f

materia l containin g recoverabl e controlle dsubstance s an d th e quantit y o f

controlle dsubstance s recovered ; summarie s of tota l monthl y an dcontrol-period-to-dat e calculate d productio n level s o f

Grou p I an dGrou p I I controlle dsubstances ; ari dth e producer' s tota l consumptio n rights , productio n right s an dauthorizatio n t o conver t potentia l productio n right s t o productio n rights

. EP A i s leanin g towar drequestin g dail y instea do f

weekl y record s o f productio n sinc e dail y record s wil l provid e mor e precis e informatio n o n production

. Th e mor e precis e informatio n wil l ai di n evaluatin g trade s (determinin g expende dversu s unexpende dproductio n rights) , pinpointin g violations , an dwil l eas e check s o n productio n record s whe n usin g proces s parameter s (quantitie s o f ra w materials , temperature , pressure ) t o calculat e production

. I t i s no t expecte d tha t dail y record s wil l impos e a significan t

burde n o n th e industr y sinc e informatio n currentl y availabl e t o EP A indicate s tha t

manufacturer s alread y kee p productio n dat ao n aonc e pe r shif t basis

. Record s o f

ra w materials , proces s parameters , an dOthe r

CF C compound s (HCFC-2 2 an dCFC-116 ) produce da t th e regulate dfacilitie s ar e requeste dt o provid e achec k

o n productio n records

. Record s o f

sale s of controlle d substance s woul dprovid e no t onl y a chec k o n productio n records , bu t woul d provid e EP A informatio n o n whethe r exporter s hav e actuall y purchase dth e reporte dquantit y o f

controlle d substance s exported

. Record s o f import s an dexport s ar e requeste do n adail y basi s sinc e EP A wil l nee dt o chec k th e dat e of import/expor t

agains t record s hel db y U.S

. Custom s an dth e U.S

. Censu s t o verif

y compliance

. Thi s informatio n woul dprovid e EP A wit hadouble-chec k

o n whethe r producer s an dimporter s ar e stayin g withi n thei r

productio n an d consumptio n rights

. EP A solicit s commen t o n bot ho f

thes e approache s t o reportin g an drecordkeepin g requirements

. EP A i s specificall y intereste di n th e leve l of reportin g necessar y t o ensur e complianc e wit h permi t restrictions

. Whateve r

approac hi s chosen , failur e t o maintai n th e require drecord s o r fil e thes e report s i n atimel y manne r ma y resul t i n EP A assumin g productio n for th e unknow n perio da t

maximu mP.2 2

capacit y fo r

th e purpose s o f

evaluatin g compliance

. Record s an dreport s coul db e require d fo r eac hfacilit y a t

eac hplan t

owne db y acompan y o r

the y coul db e require do n a n aggregate , company-wid e basis

. EP A i s presentl y incline dt o requir e tha t al l productio n an dsale s record s b e maintaine dfo r

individua l productio n facilities , bu t

tha t monthl y report s t o EP A b e submitte dcontainin g informatio n fo r

bot hindividua l plant s an daggregate dfo r

al l th e plant s owne d b y afirm

. Wit hthi s approach , EP A woul dno t gran t right s fo r

eac hCF C o r

halo n productio n facilit y o r

plant , bu t

wil l instea dgran t

right s tha t

ar e company
wide

. However , t o facilitat e enforcemen t

wit hrespec t

t o thes e rights, EP A wil l requir e tha t

firm s infor mEP A o n a n annua l basi s o f

thei r intende d productio n plan s fo r

eac hfacilit y an d plan t an dnotif

y th e Agenc y o f

an y significan t

shift s i n th e locatio n o r quantit y o f

productio n describe di n thes e plan s a s par t

o f thei r monthl y reports

. Whil e complianc e wit hthes e annua l productio n plan s wil l no t b e binding , the y provid e usefu l informatio n t o EP A fo r

purpose s o f

complianc e monitoring

. EP A solicit s comment s o n th e sufficienc y o f

thes e requirements

. Fo r firm s engage di n th e impor t o f controlle dsubstances , EP A i s als o considerin g avariet y o f alternativ e reportin g an drecordkeepin g requirements

. EP A i s presentl y incline d t o requir e th e maintenanc e o f dail y record s o f

th e quantit y o f

controlle d substances , eithe r

alon e o r i n mixtures , tha t ar e imported ; th e date s an dport s o f cal l o f imports ; th e dat e an dpor t o f entr y int o th e Unite dState s o r it s territories ; th e date s o n whic han dth e countr y i n whic hth e importe d controlle dsubstance s wer e produced ; an danam e an daddres s fro mwhic h additiona l informatio n ca n b e obtained

. Monthl y report s b y importer s t o EP A mus t includ e summarie s o f

th e abov e informatio n alon g wit htotal s fo r control-period-to-dat e an dth e importer' s tota l consumptio n right s a t th e en do f

th e month

. EP A wil l furthe r verif y reporte dimpor t

activitie s wit h informatio n obtaine db y U.S

. Custom s an dwit hinformatio n reporte dthroug h dat apresente db y othe r nation s t o th e Secretaria t

t o th e Protocol

. Exporter s mus t

repor t al l export s no t previousl y reporte di n th e contex t o f obtainin g consumptio n o r productio n rights

. Report s woul db e require do n a monthl y basi s an dinclude : nam e an d addres s o f

exporte r an drecipien t

o f th e exports ; th e exporter' s Employe r Identificatio n Numbe r

(EIN) ; th e typ e an dquantit y o f

controlle dsubstance s exported ; th e dat e an dpor t fro mwhic h th e export s wer e shipped ; th e dat e an d countr y i n whic hth e export s arrived ; an dth e sourc e fro mwhic hth e exporte d controlle dsubstance s wej e purchased

. T o facilitat e th e collectio n o f th e relevan t information , EP A i s requestin g th e U.S

. Departmen t

o f Commerc e fo r permissio n t o obtai n copie s o f Shipper' s Expor t Declaration s (For m7525-V ) file d b y exporter s o f

controlle dsubstances

. EP A i s als o requestin g th e Custom s Servic e fo r

permissio n t o obtai n copie s o f "Entr y Summaries " (For m7501 ) filed b y importer s o f

controlle dsubstances

. EP A solicit s comment s o n thes e reportin g an drecordkeepin g requirements

. k

. Compliance and

Penalties. Base d o n it s revie w o f

report s and.record s an d possibl e sit e inspections , EP A woul d determin e whethe r

firm s ar e i n complianc e wit hth e regulations

. Th e regulation s woul ddefin e aviolatio n a s th e productio n o r

impor t o f ever y kilogra mo f

controlle dsubstance s i n exces s o f unexpende dproductio n o r consumptio n rights , o r

i n contraventio n o f th e ba n o n import s fro mnonparties

. Unde r sectio n 113(b ) o f

th e Clea n Ai r Act , penaltie s o f

u p t o $25,00 0 pe r

da y pe r violatio n ca n b e assessed

. Thus , a firmtha t produce dtw o kilogram s o f ' controlle dsubstance s beyon dit s rights woul db e potentiall y subjec t t o a maximu mfin e o f

$50,000

. I n additio n t o th e variou s remedie s unde r th e Clea n Ai r Act , EP A ha s th e authorit y t o see k injuctiv e relie f

t o limi t furthe r productio n o r

sales , an dt o see k

t o hav e an y activit y i n exces s o f unexpende d rights subtracte dfro mfutur e year' s rights

. Also , th e Agenc y ma y brin g crimina l penaltie s agains t knowin g violators , a s se t

fort hunde r

sectio n 113(c ) o f th e Act

. Give n tha t

complianc e wit hth e term s o f th e Montrea l Protoco l i s determine d o n atwelv e mont hbasis , th e contro l perio dwoul db e fo r

on e bloc k

yea r (unles s otherwis e specified) , an dEP A woul dtrac k

complianc e ove r

tha t sam e period

. However , trackin g complianc e o n a n annua l basi s present s som e practica l limitations—i n extrem e circumstance s afirmcoul dg o ou t o f complianc e onl y a t

th e en do f

th e period

. Wit hashorte r

averagin g tim e o r arollin g average , complianc e coul db e judge dearlie r

o r mor e frequently

. A s a n alternativ e t o th e bloc k annua l contro l period , EP A coul dspecif y arollin g twelve-mont hcontro l perio dwher e complianc e coul db e measure da t th e en do f eac hmont hbase do n th e previou s twelv e month s o f production

. Thi s alternativ e woul dprovid e greate r assuranc e tha t

th e Unite dState s satisfie s it s obligation s unde r th e Montrea l Protocol , bu t coul dsomewha t limi t th e flexibilit y o f

firm s i n meetin g shiftin g marke t

condition s durin g th e cours e o f ayear
. EP A propose s t o initiall y specif

y complianc e o n abloc k on e yea r contro l period , bu t

wil l conside r shiftin g t o atwelve-mont h rollin g contro l perio dif difficultie s i n ensurin g complianc e develop

. EP A ma y impos e th e twelve-mont hrollin g quot a o n firm s tha t

hav e violate dproductio n o r consumptio n rights o r

i n case s wher e complianc e monitorin g i s hindered

. 1

. Effective Date. Th e propose d regulation s woul dno t

tak e effec t

unti l th e Montrea l Protoco l enter s int o force

. Afte r th e Protoco l ha s entere dint o force , EP A woul drevis e th e effectiv e dat e sectio n o f

regulation s t o includ e th e dat e o f entr y int o force

. Th e Unite dState s i s no w i n th e proces s o f

ratifyin g th e Protocol

. Tha t proces s include s completio n o f a n environmenta l impac t

statemen t concernin g th e Protocol , an dsubmitta l o f th e Protoco l b y th e Presiden t t o th e Senat e fo r

it s advic e an dconsent

. If th e Senat e give s it s advic e an dconsent , th e ratificatio n documen t

the n goe s t o th e Presiden t

fo r hi s signatur e and , onc e signed , i s deposite da t

th e Unite d Nation s headquarters

. Unles s unanticipate ddelay s ar e encountered , EP A expect s thi s proces s t o b e complete dwel l befor e th e Januar y 1 , 198 9 targe t

dat e fo r entr y int o force

. m
. Payment

of Fees. 8(a ) Background. I n recognitio n o f

th e fac t tha t producer s an dimporter s o f

controlle dsubstance s woul dreceiv e productio n an d consumptio n right s whic hwoul dallo w the mt o engag e i n thei r activities , EP A ha s examine dth e feasibilit y an d desirabilit y o f

makin g th e administratio n o f

thi s regulator y syste m a s self-supportin g a s possibl e b y havin g th e producer s an dimporter s bea r som e o f it s cost s throug hpaymen t o f administrativ e fees

. EP A i s proposin g t o includ e Sec

. 82.1 4 i n th e propose drule , whic hwoul dprovid e fo r EP A t o collec t fee s i n advanc e fo r

grantin g productio n an dconsumptio n rights

. Th e authorit y fo r thi s provisio n i s th e Independen t Office s Appropriatio n Ac t ("IOAA") , 3 1 U.S.C

. 970 1 (formerl y 3 1 U.S.C

. 483(a)) , whic hpermit s an dencourage s Federa l agencie s t o recover , t o th e fulles t exten t possible , cost s attributabl e t o specia l benefit s provide dt o identifiabl e recipients

.

8 Payment o f administrative fees t

o cover the cost s o f operatin g th e progra

mi s bein g propose d regardles s o

f th e regulator

y approac h(e.g

. allocate d quotas , auctions , or

regulator y fees ) employed

. Becaus e th e fee simply cover s th e cost s o f operatin g th e program , th e lega

l issue s concernin g afe

e use d a s aregulator

y too l ar c no t

applicable

.-,«ai > • 1 1 P.2 3

4750 6 Federa l Registe r / Vol

. 52 , N$

. 23 9 /

Monday , Decembe r 14 , 198 7 /

Propose dRule s

Th e followin g describe s th e broa d outline s of

th e fe e program
. (b ) Activities, the Cost

of Which are Proposed for Recovery. Th e Suprem e Cour t ha s state dtha t

agenc y activitie s fo r whic hcost s ar e properl y chargeabl e t o th e recipien t

ar e thos e whic h "bestow [ ] abenefi t

o n th e applicant , no t share db y othe r

member s o f society. " I n National

Cable Television Ass'n v
. U.S., 41 5 U.S

. 336 , 340-4 1 (1974)

. Th e Cour t

o f Appeal s fo r

th e D.C

. Circui t ha s furthe r

specifie dtha t

th e ful l cost s o f providin g aservic e ma y b e recovere dwhen :

• Th e Agenc y ha s identifie dspecifi c activitie s fo r

whic hth e fe e i s bein g assessed ;

• Th e servic e produce s aprivat e benefit ;

• Th e valu e of

th e benefi t

i s reasonabl y relate dt o th e fee ;

• Th e benefi t

accrue s a t

leas t i n par t t o a n identifiabl e privat e beneficiar y an dno t merel y t o a n entir e industry ; an d

• Th e servic e produce s n o independen t

publi c benefit

. Central & Southern Motor

Freight Tariff Ass'n v
. U.S., 77 7 F.2 d722 , 73 0 (D.C

. Cir

. 1985)

. Base do n thes e criteria , EP A propose s t o recove r

th e ful l cost s o f

th e followin g activities , al l o f

whic hrelat e t o apportionin g an dadministerin g productio n an dconsumptio n rights: (1 ) Determinin g th e amoun t o f baselin e productio n an dbaselin e consumptio n right s apportione dt o specifi c producer s an dimporters

. (2 ) Processin g applications , unde r Sees

. 82. 9 an d82.1 1 fo r

additiona l productio n rights , an dtakin g associate d action s (e.g

. notifyin g th e Secretaria t of th e Protoco l of

25-kilotonn e part y transfers)

. (3 ) Processin g application s unde r Sec

. 82.1 0 fo r additiona l consumptio n rights

. (4 ) Processin g application s unde r Sec

. 82.1 2 fo r transfer s o f

rights. (5 ) Processin g an dmaintainin g th e report s require dt o b e submitte dt o EP A unde r Sec

. 82.13

. EP A request s comment s o n whethe r t o charg e fo r

additiona l activities , suc ha s audi t an denforcemen t

activities

. (c ) Determination of

Costs of Activities. EP A propose s t o recove r th e followin g cost s of

th e activitie s describe dabove : (1 ) Direc t labo r costs , whic hwil l b e base do n th e grad e leve l o f staf f workin g directl y o n th e activities ; (2 ) Indirec t

labo r costs , whic hwil l includ e manageria l an dsupervisor y support , an dsecretarial/clerica l support ; and ; (3 ) Overhea dcosts , includin g offic e spac e costs , utilities , equipment , an d materials

. B y Sh e firs t da y o f an y contro l period , ever y perso n ownin g productio n o r consumptio n rights , applicabl e t o tha t contrS i perio dwoul dhav e t o pa y EP A th e ful i amoun t

o f fi e fe e owed

. Failur e t o pa j th e fe e @

n atimelyjbasi s woul d resul t te th e perso n being 1 treate da s ownin g n b productio n o r consumptio n rightaAtring th e centra l period , unti l paymfen t i s made , tat e paymen t woul d b e subjec t

t o iBteris t

compute da t

th e Federa l short-ter mrate

. Unde r EPA' s propose dsystem , ownef s o f

productio n o r

consumptio n rights woul dmak e on e fe e paymen t a s o f th e beginnin g o f

th e contro l period

. N o additiona l fee s woul daris e fro m appli f ation s t o EP A unde r

Sees

. 82.9

- 82.1 2 to r additiona l productio n o r cons*nptio n right s o r

transfer s o f

rights

. EP A solicit s comment s o n th e merit s o f charin g separatel y fo r EPA' s cost s i n processin g suo hamplication s an d redt_t_5_R g th e up-frsn t

fee s accordingly

. I n aoMtion , EP A solicit s comment s o n procedure s fo r

imposin g fee s wit h respec t t o aud i o r

enforcemen t activities , if

EP A determine s t o impos e suc hlees

. (d>i% e Waivers or

Adjustments. Ther e ma y b e ciroumstance s unde r whic hwaiver s from , o r adjustment s of

, fee s Woul db e appropriate

. Whil e th e IOA A i s silen t

coacernin g suc hmatters , i t doe s provid e tha t

th e Presiden t

shal l se t p®Mcie s concernin g th e implementatio n o f

th e IOAA

. Offic e of Managemen t

an dBudge t

(OMB ) Circula r A-2S , Sec

. 9(b ) contain s guideline s fo r Federa l use r

charg e system s an d provide s fo r

exception s t o agenera l use r fe e polic y unde r

severa l circumstances

. Und# r thes e guidelines , waiver s ma y b e appropriat e unde r

th e followin g circumstances : (1 ) Public Interest. I

f th e perso n use s th e controlle dsubstance s a s par t o f activitie s desigse dt o promot e th e publi c intefest , th e fe e iSsa

y b e waived

. EP A solitjit s comment s o n th e circumstance s undg r whic hthi s exemptio n ma y b e appScable

. (2 } Economic Hardship. A fe e ma y b e waite do r

adjuste di

f it s impositio n woul dresul t

i n a n economi c hardshi p o n th e person
. Consideration s fo r a n ecoaomi c hardshi p waive r includ e siz e of tfe e firman damoun t

o f sale s o r us e o f controlle dsubstasices

. (3 | Small Business. EP A solicit s commen t o n whethe r

waiver s o f adjustment s woul db e appropriat e fo r smal l businesses , base do n numbe r of employee s an dannua l gros s revenu e fro msal e o r

us e of th e controlle d substance

. EP A furthe r

solicit s comment s o n whethe r afe e shoul db e charge dfo r proeessin g a n applicatio n for awaive r o r

adjustmen t

(whic hwoul db e refunde d if th e waive r

o r adjustmen t

i s granted)

. 3

. Othe r Regulator y Option s Considere d A s aregulator y scheme , allocate d quota s o f

productio n an dconsumptio n right s appea r

t o offe r th e advantage s o f th e othe r option s whil e avoidin g man y o f thei r potentia l problems

. However , a s discusse dabove , i t

i s no t fre e fro m concerns
. B y restrictin g th e suppl y o f CFC s an d halon s throug hregulation , EP A woul d effectivel y creat e ascarcit y tha t woul d resul t i n highe r

price s fo r

th e controlle d substance s a s deman dfo r CFC s an d halon s exceede dsuppl y ove r time

. Unde r th e allocate dquot aapproach , an y additiona l revenu e tha t woul dresul t fro mth e scarcit y create db y thi s regulatio n accru e t o th e firm s allocate d rights

. Th e magnitud e o f

thes e transfe r revenue s woul ddepen do n ho w muc h th e price s fo r

th e regulate dchemical s increase dove r

time

. Base do n th e analysi s presente di n th e RIA , Tabl e 5 present s EPA' s estimate s o f possibl e transfe r revenue s tha t

woul daccru e primaril y t o th e chemica l manufacturers , assumin g tha t

the y allowe dmarke t force s t o determin e wha t pric e an d whic hfirm s purchas e CFC s an dhalons

. (I f marke t force s d o no t

operate , th e producer s an dimporter s wil l determin e allocatio n t o user s base do n criteri a othe r tha n prices. ) Tabl e 5 show s that , eve n fo r scenario s wher e pric e increase s ar e smal l i n th e initia l year s an d graduall y increas e t o th e pric e wher e expecte dchemica l substitute s com e int o play , th e tota l amoun t

o f transfer s coul d rang e fro m$2. 0 billio n t o $5. 7 billio n fro m198 9 throug h2000

. Fo r th e scenari o wher e CF C pric e increase s i n th e earl y year s ar e mor e substantia l (e.g. , th e "stretchou t

cases " wher e implementatio n o f

lo w cos t reduction s i s delayed) , th e amoun t

of th e transfer s increase s accordingly

. Overall , for th e decad e leadin g u p t o th e tur n of th e century , transfe r

revenue s wer e calculate dt o b e approximatel y thre e time s greate r

tha n th e socia l cost s (i.e., th e rea l resourc e cost s t o reduc e use ) involve di n meetin g th e contro l requirement

.

TABL E 5.—PRELIMINAR Y ESTIMAT E O F POTEN

TIA L SOCIA L COST S AN D TRANSFER S T O PRODUCER S

CF C pric e increase s (198 5 S/kg) : 198 9 Leas t cos t

0. 0 Stretchout s Moder

at e

0. 0 Moder

ate / majo r

0. 0 Majo r

0. 0P.2 4

TABL E 5.—PRELIMINARY ESTIMAT E O F POTEN

TIA L SOCIA L COST S AN D TRANSFER S T O PRopycERS-rContinued ,

'1994.„ '

_ . .'

. 199 9 2005...:...... - 207 5 : ..... . Socia l costs (presen t valu e i n million s o

f 198 5 dollars) ; 1989-200 0 1989-2075...........

. Transfe r revenues (presen t valu e i n million s o

f 198 5 dollars) : 1989-200 0 1989-207 5 Least cos t

2.2 1 "3.7 7 3.77 ' 5.4 8

68 9 27,04 0

1.97 5 6,16 3 .Stretchout s
Moderat e

3.5 0 5.4 8 5.4 8 5.4 8

1,14 6 29,22 0

2.51 6 7,09 6 Moder

ate / majo r
3.7 0 •5.4 8 5 5.4 8 5.4 8

"1,62 8 37,91 0

2,75 7 6,37 6 Majo r

. 5.4 8 5.4 8 5.4 8 5.4 8

1,85 0 38,14 0

5,70 3 9,40 0 

### Assume s CFC s regulate dwitha n initia l freez e i n 198 9 a t

198 6 levels , 20 percen t reductio n i n 199 3 an d5 0 percen t reductio n i n 1998 , an dhalon s frozen a t 198 6 level s i n 1992

. Socia l cost s ar e discounte dat a2 percen t rate , an dtransfe r

cost s ar e discounte da t

arat e o f 6 percent , reflectin g th e opportunity cos t o f fund s in th e privat e sector

. Source: Estimate s take n fro mRIA

. A n argumen t

ca n b e mad e tha t

th e abov e analysi s overstate s th e quantity o f transfers

. Accordin g to thi s lin e o f reasoning , chemical manufacturer s may no t behav e competitivel y an dwoul dno t allo w marke t

price s t o determin e wh o get s thes e chemicals , bu t

woul dinstea d directl y allocat e the mt o thei r customer s base do n pas t

sales

. CF C an dhalo n price s woul dincreas e onl y graduall y reflectin g th e higher

cost s o f producin g les s o f thes e chemical s an dth e nee dt o generat e capita l fo

r researc han d productio n of

chemica l substitutes

. Th e resultin g lowe r

pric e increase s coul dac t a s adisincentiv e t o th e introductio n o f more expensive , substitut e chemicals

. Whil e n o estimat e o

f th e pric e increase s unde r

thi s scenari o ha s bee n calculated , give n th e slo w rat e o f pric e increas e i n th e EP

A scenarios , th e overal l differenc e i n th e quantit y o f transfer s i s no t

likel y t o diffe

r substantially

. Thus , eve n in th e scenari o wher e CF C an dhalo n producer s allocat e thei r

allowabl e productio n an d limit pric e increases , transfer s o n th e orde r of anearl y abillio n dollar s o r more ar e likel y over

th e nex t te n years
. Thi s raise s question s a s t o whethe r possibl e profit s fro

mcontinue d productio n o

f th e restricte dchemical s might hav e th e undesire deffect o f delayin g th e introductio n o f les s profitabl e chemical substitutes

. EP A ha s explore danumbe r o f possibl e approache s t o improvin g th e equity o f it s propose dregulatio n b y reducin g o r eliminatin g th e potentia l transfer s t o th e CF

C an dhalo n producer s an dimporters

. On e approach , th e us e o f auction s t o allocat e marketabl e rights , wa s mentione di n a n earlie r section

. Unde r

thi s option , EP

A woul dauctio n right s f

o al l intereste d partie s an dth e resultin g transfer s woul d accru e t o th e U.S

. Treasury

. A n advantag e of

th e auctio n approac h i s tha t it take s CF C allocatio n ou t

o f th e hand s o f producin g firm s an dallow s th e marke t t dfunction

. Whil e detaile d desig n o f a n auctio n i s no t

presented , a s a n ai dt o commenters , th e majo r characteristic s o

f auctio n form s mos t likel y t o b e applicabl e t o th e cas e o f CFC s ca n b e briefl y presented

. A n advantag e i n th e desig n o f a n auctio n of CF C permit s i s th e availabilit y of existin g model s provide db y th e auction s regularl y conducte db y th e Federa l Governmen t

in th e area s o

f governmen t

procurement , leasin g o

f minera l right s (includin g onshor e an d oute r continenta l oi l an dga s development , coa l leases , geotherma l development , etc.) , an dTreasur y bills

. Th e governmen t

auction s ar e typicall y structure da s "first-pric e sealed-bid " auctions, 9 

### in whic hpotentia l bidder s submi t seale dbid s an dth e highes t bidde r i s awarde dth e ite mfo

r th e pric e h e bid

. A n alternativ e i s th e "second

pric e sealed-bid " auction , i n whic hth e highes t bidde r win s th e ite mbu t

pay s a pric e equa l no t

t o hi s ow n bi dbu t

t o th e second-highes t

bid

. Variation s o n thes e form s ca n b e used : fo

r example , th e governmen t

may impos e areserv e price , discardin g al l bid s i

f the y ar e to o low ; an dbidder s may b e charge da n entr y fee fo r th e right to participate

. Whe n afixe dquantit y o

f agoo di s pu t up fo r sal e (suc ha s withth e weekl y Treasur y bil l auction) , tw o kind s o f seale dbi dauction s ar e use dt o sel l multipl e units , a s explaine dbelow

. I n th e discriminatory seale dbi dauction , eac ho f th e bidder s pay s th e amoun t h e bid

. I n th e uniform-pric e seale dbi d auction , eac hsuccessfu l bidde r pay s a pric e equa l t o th e highes t

unsuccessfu l bid

. Procedurally , bidder s submi t bid s tha t consis t o f bothapric e an da
. desire dnumbe r

of unit s of th e commodity

. Enoughunit s ar e availabl e tha t anumbe r

o f th e highes t

bidder s ca n b e awarde dth e unit s fo

r whic hthe y bid

. Th e governmen t

the n rank s al l buyers ' bid s b y pric e fro

mhighes t t o lowest , an d cumulate s th e quantitie s bid. 1 0 

### Th e resul t i s amarke t

deman dcurve
. * T o ai din reducin g uncertainty , th e introductio n o

f a n auctio n a s a n allocatio n mechanis mcouldb e phase d i n accordin g to apreahnourice d schedul e (suc ha s every thre e months) ; u 

### eac hauctio n woul doffe

r onl y afractio n o f tota l right s fo

r sale

. Th e phase-i n approac hwoul dallo w time fo r • ' procedura l an dsubstantiv e familiarity t o b e gaine db y al l parties ; if necessary , . limitation s coul db e place do n th e amoun t o f right s an y on e fir

mcoul d acquire

. Withavery short timeframe , betwee n auctions , afir

mConcerne d abou t th e biddin g u p of

price s coul d hol dback , bi donl y it s tru e valu e fo r right s i n asubsequen t

auction , an dhav e les s concer n ove r

right s acquisition..T o th e exten t i t i s desirabl e t o protec t

smal l firm s o r particularl y vulnerabl e industries , se t

aside s coul db e designate dfor

thes e groups
. I n EPA' s consideratio n o

f th e us e o f a n auctio n t o allocat e rights, severa l concern s hav e arisen

. EP

A i s concerne d abou t th e potentia l larg e uncertaintie s regardin g th e pric e an davailabilit y of th e controlle dsubstance s whic ha n auctio n might

create , particularl y i n it s initia l years
. Relate dconcern s ar e tha t bi g companie s coul deasil y outbi dsmal l companies , tha t

speculator s woul ddriv e u p th e pric e o

f rights , an dtha t companie s woul dhoar dsupplies

. "A s suggeste dabove , anumbe r o f step s in designin g a n auctio n coul db e take n t o addres s thes e concerns
. Th e fina l concern involve s th e questio n o

f EPA' s lega l authorit y unde r th e Clean Ai r

Ac t t o operat e a n auction

. Suc ha n auctio n woul dconstitut e regulatory actio n b y a n administrativ e agency , pursuan t

t o a n asserte dgran t

o f authorit y fro

mCongress , requirin g th e paymen t o f mone y b y th e privat e secto r t o th e U.S

. Treasury

. Th e principa l legal issue s EP A i s considerin g concern (i) whethe r suc ha n asserte dgran t

o f congressiona l authorit y constitute s a delegatio n b y Congres s o f it s constitutiona l powe r

t o impos e taxe s or , alternatively , it s constitutiona l powe r t o regulat e commerce ; an dwhethe r Congres s in fac t

grante dsuc hauthorit y fo r a n auctio n unde r

th e statute s EP

A administers

. On e potentia l alternative— a"zer o revenu e auction"—might

avoi dsom e of th e legal an dpractica l problems. Thi s alternativ e woul dno t

yiel drevenu e to th e government

. Unde r thi s approach , eac hproduce r (o r user ) woul dreceiv e aprovisiona l

• Sealed-bid s ar e preferre d du e t o ris kaversio n o n th e parto f

bidders
. 1 0 Th e cumulatio n proces s ma y requir e severa l step s (no tdetaile d here)
. 1 ' T o som e exten tuncertaint y stem s from th e shortage s themselve s an d sufficien tinformatio n regardin g th e auctio n for m woul d alleviat e concern s ove rth e metho d o f

allocation
.P.2 5



### 4750 8 Federa l Registe r / Vol

. 52 , No

. |3 9 /

Monday , Decembe r

14 , 198 7 /

Propose dRule s
allocatio n o

f rights equal t o it s 198 6 productio n (o r

use)

. Eac hproduce r

or use r woul dthe n b e require dto submi t a seale dbi dpresentin g th e numbe r of rights i t woul dpurchas e a t

arang e of alternativ e price s (i.e

. it s deman d schedule)

. Thes e bids woul db e aggregate dt o construc t

th e marke t deman dfo

r thes e rights. Th e resultin g marke t pric e woul dthe n b e se t

a t th e pric e tha t equate s marke t

deman dwit

h th e 198 6 ceilin g o n tota l production

. Eac hfirm' s fina

l allocatio n wil l b e it s reporte ddeman da t

th e marke t

price

. Eac hfir mwoul dthe n pa y a n amoun t equa l t o th e pric e o

f thes e rights time s it s fina l allocatio n an dreceiv e bac k a n amoun t equa l t o th e pric e time s it s provisiona l allocation

. Ne t payment s t o th e governmen t

woul db e zer o fo

r al l firm s take n together

. Eac hfir mwoul d receiv e exactl y th e numbe r o f rights it initiall y state dit

woul db e willin g an d abl e t o purchas e a t

th e equilibriu m price

. Th e zer o revenu e auctio n ha s severa l feature s tha t

make i t a n attractiv e interi moption

. First , i t

virtuall y eliminate s uncertainty b y guaranteein g eac hfir mth e numbe r

o f right s it initiall y reporte din it s ceile dbids a t eac h alternativ e price. 1 2 

### Second , i t automaticall y produce s th e firs t roun do f trade s i n th e syste mo

f marketabl e permits , thu s reducin g an y on e firm' s ability t o hoard , speculate , o r t o outbi d others

. Third , it

produce s apubli c pric e signal providin g informatio n fo r futur e (non-zero revenue ) auction s an dothe r allocatio n system s tha t

th e governmen t ma y wan t t o implement

a s wel l a s fo

r potential entrant s into th e industry

. Finally , i f th e auctio n i s conducte dfo r user s (a s oppose dt o producers) , i t woul daddres s th e concern s tha t some user s ma y b e force dout

o f business

. Eac huse r coul dguarante e tha t

it stay s i n busines s o r

b e compensate dfo

r goin g ou t o f busines s a t

apric e t o whic hi t agreed

. I f i t i s determine dthat

EP A lack s th e authority t o conduc t

a n auction , legislativ e authorizatio n woul db e necessary
. Thes e legal issue s ar e addresse din greate r

detai l i n a n analysi s prepare db y EP

A whic hi s include din th e docket

. EP A i s specificall y intereste din receivin g comment s o n th e desirability o f usin g auction s a s th e metho do f allocatin g rights, th e possibl e step s EP A coul dtak e t o minimiz e disruptio n in th e

1 2 I n fact , any fir

mcoul dgo s o fa

r a s t o guarante e it s provisional allocat:o n a s it s fina l one b y reportin g tha

t i t woul dpurchas e it s provisiona l allocatio n regardles s o

f the price

. I

f all firms di d this , th e provisional allocatio n woul db e the fina l one an dchang e hands

. 

### earl y year s o f a n auction , an dth e legal issue s concernin g th e possibl e nee dfo r additiona l legislativ e authority

. I f th e lega l obstacle s t o auctionin g marketatl e permit s canno t b e resolved , apotentiall y attractiv e alternativ e woul dinvolv e EP

A allocatin g CF

C o r halo n right s t o firm s no w usin g (a s opposed) to producing , importing , o r exportbjjpj l thes e cnemicals

. Thi s optio n i s very sjfeiila

r t o tiie scenari o describe d abov e v#ereb y tise ctiemical producer s woul dreallocat e theft1 

### allowabl e quota s to thei r customer s ba^e do n histori c sales

. Tfe e majo r differenc e i s tha t

in th e optio n wher e EP

A allocate s rights directl y to users , the.possibility o f transfe ® fro

muser s f o producer s i s substantiall y reduced

. However , unde r thi s opio n EP

A woul db e require dt o allocat e rights t o approximatel y 10,00 0 firm s wfe o no w bu y firectl y fro

mCF C an dhate n producers , EP

A i s intereste d i n receMn g comment s o n th e desirability o

f thi s approac han d possibl e way s to miaimiz e th e administrativ e burde n o

f th e intitial allocation

. Anofie r attractiv e optio n whic h provide s astron g alternativ e t o th e auctioa i optio n woul db e t o combin e allocate dquota s witharegulatory fee

. Whil e afee alon e woul dno t ensur e complianc e wit hth e reduction s require d b y th e Montrea l Protocol , whe n teame d withajocate dquotas ; thi s fla w woul d b e remedied

. Th e quot awoul dprovid e a relativel y straightforwar dmean s o f ensuriB g tha t

th e reduction s require db y th e Montreal Protoco l ar e achieved

. A fee assesse dagains t

producer s an d importer s woul dprovid e a n economi c incentiv e fo

r th e introductio n o

f chemi f a l substitute s an dfo

r firm s t o emplo y othe r

lo w oas t method s o

f reducin g emissions

. It

woul dals o provid e clear

signal s abou t

futur e pric e increase s an davoi dman y o f th e potenSal uncertaintie s associate dwith auctions

. Th e fee woul dals o captur e mos t $ f th e traasfef

s fo r th e U.S

. Treassry , thu s servin g equity

. Th e fee wout db e se t

t o captur e al l o r mos t © f th e CF C a» dhalo n pric e increase s whic hresul t

fro mth e scarcit y create db y EPA' s regulations , Th e margtea l cos t

o f tite CF C contro l alternative s (includin g substitutes ) woul dprovid e th e primary basi s fo r setthf g th e leve l of

suc hfees

. A s with tradabl e rights, fee s woul db e scale do n th e besi s o

f ozone»depletin g potential , e.g
. dollar s per

kilogram-equivalen t

o f ozone-depletin g substanc e produced

. A n importan t

desig n consideratio n i s th e exten t to whic hperiodi c fee adjustment s woul doccur

o n an automati c basi s o

r woul drequir e regulatory intervention

. Wit hth e quot a syste min place , automati c fee change s specificall y intende dt o brin g actua l CF C productio n int o alignmen t with productio n goal s woul dno t b e necessary
. However , an y adjustment s neede da s aresul t

o f significant

change s in economi c activity , ne w scientifi c evidence , and/o r

discovery tha t

th e cos t o f switchin g t o certai n substitute s wa s different tha n previousj y thought

woul d likel y b e difficult " to accomplis ho n a n automatic basis

. O n th e othe r hand , th e more automati c th e adjustment , th e more certainty fo

r investmen t

an d productio n decision s th e syste mi s likel y t o provide

. Anothe r importan t

desig n consideratio n i s th e exten t t o whic hth e fee shoul db e phase din : shoul di t b e se t fro mth e star t

a t level s calculate dt o extrac t th e ful l amoun t o f transfe r payment s or

shoul di t b e se t lo w (merel y a s apric e signal ) an dsubsequentl y adjuste dupwar di n (either smal l o r large ) increments ? Collectio n o

f fee payment s woul db e directl y fro

mth e firm s allocate dth e CF C an dhalo n quotas , o n aperiodi c (e.g

. monthl y o r

annual ) basis

. EP A seek s comment s o n th e fees

with-quota s option , i n compariso n with bot hth e auctio n optio n an dth e allocate dquot aoptio n withou t fees

. EP A i s intereste din receivin g comment s o n th e desirabilit y an dimplementatio n issue s relate dt o thi s option , includin g th e legal issue s raise dearlier

. Unde r afina l approac ht o reducin g th e potentia l inequitie s o

f th e allocate d quot asystem , som e portio n o f th e transfer s coul db e recapture dthroug h voluntary donation s b y th e producer s to a n industry-wid e researc horganization

. Thi s approac hwoul dno t

b e mandate d b y EPA , bu t

woul db e pursue db y a voluntary organizatio n create db y CF C an dhalo n produce r

an duse r industries

. Essentially , som e or

al l o f th e produce r firm s woul dagre e t o se t

asid e some portio n o f th e pric e increas e fro

mCFC s an dhalon s t o support

researc h activities

. Fund s se t

asid e fo r thi s organizatio n coul db e use dto support project s to ai dproducer s an duser s in thei r transitio n awa y fro

mth e us e o

f thes e regulate dchemicals

. Example s o f possibl e project s coul dinclude : join t toxicity testin g fo

r ne w chemicals ; studie s t o support fire an dbuildin g cod e changes ; testin g o

f th e compatibility o

f ne w chemical s withexistin g equipment ; educatio n an dtrainin g t o encourag e increase drecyclin g b y professional s involve dwit

hservicin g equipmen t

usin g CFC s an dhalons ; support fo r test s require dto obtai n regulatory approval s neede dfo r produc t substitutes , etc

. AllP.2 6

Federa l Registe r

/ Vol

. 52 , No

. 239,/ : Monday , Decembe r 14 , 198 7 /

Propose dRule s 4750 9

propose dproject s woul db e submitte d o n avoluntar y basi s an dreviewe db y a committe e representin g th e member s o f

. th e institute

. Join t researc hgroup s have-bee n establishe db y othe r

industrie s (e.g. , th e Electri c Powe r

Researc hInstitute ) an d ar e generall y highl y regarde db y thei r members

. Severa l CF C use r group s hav e alread y initiate dan dfunde djoin t effort s t o resolv e obstacle s t o testin g an dusin g CF C substitutes

. Th e majo r halo n producer s an duser s hav e agree di n principa l t o pursu e thi s optio n wit hth e chemica l producer s assessin g afe w cen t pe r kilogra mtarif

f o n al l halo n sale s t o fun djoin t

project s t o reduc e emissions , t o develo p ne w fir e protectio n chemical s an dpractices

. EP A i s intereste di n comment s o n th e possibl e structur e an d scop e o f thi s typ e o f

organization , ho w i t migh t ai di n facilitatin g technolog y transfe r an dth e exten t

t o whic hi t

migh t ad dt o researc han ddevelopmen t effort s undertake n anywa y b y individua l firms

. Th e secon dmajo r

concer n wit h allocate dquota s relate s t o th e possibilit y tha t

som e industries — particularl y thos e wher e CFC s o r halon s ar e onl y asmal l fractio n o f tota l produc t cost—ma y b e slo w t o respon dt o economi c incentive s t o reduc e thei r us e o f th e controlle dsubstance s an dma y elec t t o simpl y pa y highe r

price s fo r CFCs/halon s instead

. Th e rat e a t whic h firm s wil l mov e t o mak e cos t effectiv e reduction s rest s o n abehaviora l assumptio n abou t

th e exten t

t o whic h firms wil l minimiz e productio n costs

. T o gai n som e insight s int o th e effec t o f alternativ e assumption s o n cost

minimizin g behavior , EP A include di n th e RI A severa l scenario s wher e th e analysi s assume dtha t

firm s electe dt o dela y o r faile dentirel y t o pursu e certai n cost-effective , low-cos t reductio n options

. Tabl e 5 show s th e difference s i n CF C price s fo r

variou s assumption s abou t th e rat e a t whic hfirm s emplo y low-cos t use
. reductions

. Compare dt o th e "leas t cost " cas e wher e reduction s ar e take n a s the y becom e cos t

competitiv e an d technologicall y available , th e thre e "stretchout " case s demonstrat e tha t shoul dfirm s no t

see k t o minimiz e costs , CF C prices , socia l cost s an dtransfer s
.. . coul dal l increase

. Give n th e assumptio n o n th e availabilit y o f

substitute s i n th e future , thes e increase s occu r primaril y i n th e earl y year s whe n th e burde n o n use r industrie s wil l b e mos t difficul t an d befor e chemica l substitute s fo r man y application s wil l b e commerciall y available

. Thi s analysi s show s th e clos e interrelationship s amon g CFC

- an d halon-usin g industrie s unde r th e propose dregulator y approach

. T o th e exten t thos e industrie s where

. inexpensiv e reduction s ar e availabl e postpon e makin g suc hreductions , price s o f CFC s an dhalon s woul dlikel y increas e t o al l industries

. Fo r thos e use r

. group s wher e CFC s ar e $larg e percentag e o f

fina l produc t

pric e (e.g. , th e foamblowin g applications) , suc h increase s coul db e burdensom e particularl y i n th e initia l year s befor e
. chemica l substitute s com e t o marke t an dplac e aceilin g o n suc hcos t increases

. Tabl e 6 show s EP A estimate s o f th e tota l amoun t

o f CFC s an dhalon s consume db y th e majo r use r industries

. TABL E 6.

—198

5 U.S

. CONSUMPTIO N O F 

### CFCs AN D 

### HALON s B YMAJO R USE R INDUSTRIE S

.

Industr y

Flexibl e Foa m Rigi d polyurethan e foam

. Rigi d non-urethan e foam

. Refrigeratio n an d ai r conditioning

. Aeroso l Solven t Fir e extinguishe r

Miscellaneou s Tota l weight

e d us e (mil l kg )
18. 6 61. 3 12. 8 96. 0 11. 6 54. 8 43. 4 >

22. 0 Chemical s

use d

CFC-1 1 CFC-11

. 1 2 CFC-12 , 11 4 CFC.11,12 , 114.11 5 CFC-11,1 2 CFC-11 3 Halon-1211 , 1301 , 240 2 CFC-1 2

• Estimate s d o no t includ e Halo n 2402

. Source : Estimate s prepare d fo rEPARegu

latoryImpact Analysis

. O f course , direc t

limit s o n specifi c CF C o r halo n uses—^eithe r

ban s o r engineerin g controls—als o hav e seriou s drawbacks

. The y woul dreduc e o r effectivel y eliminat e th e markets ' abilit y t o allocat e CFC s an dhalon s t o thei r highes t value duse s an dresul t i n a wast e o f resources
. Thi s happen s becaus e the y reduc e individual' s an d firm' s reward s fro mfindin g thos e use s a s wel l a s thei r

incentive s t o fin d substitute s tha t

d o no t deplet e ozone
. Requirement s o f

thi s typ e ar e als o generall y inflexibl e an dunresponsiv e t o change s i n th e relativ e value s o f CFC s an dhalon s i n othe r

uses
. A n approac h relyin g o n ban s an dengineerin g control s place s i n the'hand s o f

th e Federa l governmen t

basi c decision s o n th e us e o f thes e chemicals

. Ther e i s n o guarante e tha t

th e mandate drestriction s wil l resul t

i n bette r

o r mor e valuabl e use s o f thes e chemicals

. Sinc e th e initia l limit s ar e a t 198 6 levels , an y shortfal l i n suppl y (an d associate dincrease s i n prices ) ar e no t likel y t o b e larg e i n th e earl y years
. Further , i t coul dtak e severa l year s t o > promulgat e regulation s restrictin g specifie duses.tThus , suc hregulation s ; ma y no t b e helpfu l i n easin g th e transition

. . . However , becaus e o f

th e potentia l concern s tha t

som e user s ma y no t minimiz e thei r

costs , EP A i s seekin g commen t o n th e desirabilit y o f supplementin g th e allocate dquot a syste mwit hdirec t

limit s o n specifi c CF C o r halo n use r

industrie s wher e inexpensiv e reduction s appea r feasible

. Thes e limit s coul db e establishe db y EP A o n avoluntar y (e.g. , th e publicatio n o f technica l guidance ) o r mandator y basis , o r the y coul dstar t

a s voluntar y - an dbecom e mandatory , throug ha rulemakin g procedure , onl y if necessary
. The y coul db e develope dthroug hth e traditiona l agenc y proces s o r throug ha differen t proces s (e.g. , anegotiate d process ) wit hgreate r

involvemen t

o f industr y an dothe r

intereste dgroups
. I n developin g th e RI A cos t analysis , EP A obtaine dsubstantia l informatio n fro mavariet y o f

source s o n low-cos t measure s t o reduc e CF C an duse
. Base d o n it s preliminar y cos t

analysis , th e followin g step s t o reduc e CF C an dhalo n us e appea r

possibl e durin g th e perio d covere db y thi s regulation : a
. Commercial

Air Conditioning. Firm s i n thi s industr y hav e take n step s i n recen t year s t o shif

t awa y fro mCFC

1 2 i n ai r conditioning

. Fo r

example , windo w an dcentra l unit s ar e n o longe r o f concer n fro mth e perspectiv e o f thi s proposa l becaus e the y no w us e HCFC

22

. Commercia l chiller s hav e alread y begu n t o shift , bu t

coul dmak e greate r us e o f HCFC-22 , CFC-502 , CFC-50 0 an d othe r chemical s an dmixe s wit hozon e depletio n weight s tha t

ar e significantl y lowe r tha n CFC-1 1 an dCFC-12

. Althoug hCFC-50 2 i s ablen do f 48. 8 percen t HCFC-2 2 an d51. 2 percen t CFC

115 , i t ha s acombine dozon e depletio n weigh t o f approximatel y 0.3 , an d therefor e represent s apotentiall y attractiv e optio n fo r

man y firms

. B y alterin g thei r

marke t mi x an dshiftin g mor e towar dCFC-22

. CFC-502 , etc. , substantia l reduction s i n CFC-1 1 an d CFC-1 2 us e ar e currentl y possible

. Nonetheless , ther e appea r t o b e substantia l emission s resultin g fro m curren t practice s o f

ventin g CFC s durin g routin e maintenance

. Relativel y mino r desig n change s (e.g. , differen t valves ) b y equipmen t

manufacturer s coul d facilitat e improve dservicin g practice s an dreduce demissions

. Ove r th e longer-term , chemica l substitute s ma y mak e i t possibl e t o eliminat e us e o f

CFC-1 1 an dCFC-1 2 i n ne w equipment

. Th e mos t promisin g chemica l substitut e no w appear s t o b eP.2 7



### 4751 0 Federa l Registe r/ Vol

. 52 , No

. 38 9 /

Monday

. Decembe r

14

. 198 7 /

Propose dRule s
HFC-134a

. Thi s chemical doe s no t contai n an y chlorin e an dtherefore woul dnot : deplet e ozone
. It ha s passe d preliminary short-termtoxicity tests , bu t ha s no t ye t undergon e longer-term

. testin g an di s no t

ye t availabl e in commercial quantitites

. Recen t industry estimate s sugges t

thi s chemical coul db e availabl e in 5 year s t o 6 year s i f n o major problem s ar e encountered

. It ha s man y o f th e sam e chemical an dphysica l propertie s o

f CFC-1 2 an dinitia l test s sugges t tha t it might requir e onl y mino r change s t o b e use di n ne w equipment

. It i s likely , however , t o cos t severa l time s th e curren t

pric e o f CFC-12

. b

. Automobile Air

Conditioning. Approximatel y 25 percen t o f al l CFC s ar e use din automobil e ai r conditioner s makin g i t b y fa r th e singl e larges t

use r industry

. In th e nea r

term , th e aut o manufacturer s coul dimprov e componen t

quality an dsevera l coul d redesig n thei r

ai r conditionin g unit s t o requir e alowe r

initia l CF C charg e pe r unit

. Whil e substantia l progres s ha s bee n mad e in reducin g emission s in manufacturin g over

th e pas t years , EPA' s analysi s suggest s tha t awid e varianc e exist s amon g automobil e manufacturer s an dtha t

additiona l step s coul db e take n in thi s area
. Othe r CF C reduction s whic happea r

possibl e in th e near ter ma t th e poin t o f manufactur e includ e completin g th e switchove r t o heliu mga s fo

r testin g system s an d eliminatin g unnecessar y losse s durin g charging

. Ove r th e longer

term , automobil e manufacturer s appea r

t o hav e severa l promisin g option s fo

r eliminatin g thi s us e o f CFC-12 , includin g th e us e o f chemical substitute s (e.g. , HCFC-22 , CFC-142b/2 2 blend , an dHFC-134a)

. I n addition , alternat e ai r

conditionin g system s includin g amodifie dsterlin g cycl e ma y b e feasible

. Becaus e o

f th e difficult y in knowin g whic ho

f thes e o r othe r option s wil l prov e t o b e mos t attractive , researc hint o severa l o f thes e option s simultaneousl y may b e desirable

. Even i f automobil e manufacturer s ar e capabl e o f

shiftin g awa y fro

mCFC-1 2 base dai r conditioner s ove r

th e nex t seve n year s o r

longer , substantia l quantitite s o

f CFC-1 2 wil l stil l b e require dt o servic e th e existin g fleet

. Althoug halarg e numbe r

of facilitie s servic e car

ai r conditioner s (leavin g asid e fo r th e moment

th e portio n o

f th e marke t service db y car

owner s directly) , severa l promisin g option s deserv e attentio n becaus e o

f th e larg e quantity o f CFC s use db y thi s marke t segment

. On e optio n involve s th e sal e o f smal l container s use db y car

owner s an dsome servic e center s t o recharg e vehicles

. Thes e container s eliminat e th e possibility o f recovery a t

aservic e station , resultin g in substantia l quantitite s o

f CFC s los t

throug hventing , an dloss ® du e to refrigeran t trappe di n th e cont^toe r

followin g use
. .. . A secofj doptio n involve s jth e possibilife r o f blendin g anon-CFC chemicapwit

hCFC-1 2 t o reduc e th e latter' s u_5

e in servicin g th e aftermarke t Initia l researc hha s show n promisin g preliminary result s tha t

suc ha compoun dcoul db e use di n existin g equipmen t

withou t costl y modification s an dwoul db e more energ y efficien t an d les s expensive

. c
. Electronics and

metal cleaning. Perhap s Hi

e fastes t growin g us e of

CFC s i s th e us e o

f CFC-11 3 a s asolven t

b y th e electronic s industry

. Becaus e CFC-11 3 i s nontoxi c an dcompat&l e withavariet y o f materials , it s us e ha s increase d substanSall y durin g th e pas t severa l years , particularl y a s healthconcern s hav e bee n raise dconcernin g othe r chlorinate dsolvent s currentl y bein g used

. Becaus e o f th e highcos t

o f CFC-11 3 an dth e fac t

tha t it i s use da s asolven t an dtherefore i s no t

consume din th e manufacturin g process , recovery an d reclamatio n o

f substantia l quantitie s o

f CFC-11 3 alread y occurs
. However , base do aEPA' s preliminary analysis , additiona l opportunitie s exis t fo r improve drecycling

. For

example , existin g equipmen t

frequentl y doe s no t hav e automatic cover s or hoist s (in th e cas e o f epe n to p vapo r

degreasors) , bot h o f whic hcoul dreduc e losses

. I n addition , operatin g practice s coul db e improve dt o further

reduc e CFC losses

. Increase drecovery o

f CFC-11 3 may b e particularl y importan t

becaus e o

f th e drawback s o

f switchin g fro

mCFC-11 3 t o othe r chlorinate dsolvents

. EPA' s Office o f Toxi c Substances , a s par t o f it s Chlorinate dSolvent s Tas k Force , i s workin g alon g withothe r

EP A office s an dothe r agencie s suc ha s th e Occupationa l Healthan dSafet y Administratio n an dConsume r Produc t Safet y Commission , t o revie w th e us e of methylen e chloride , perchloroethylene , trichloroethylene , an dmethy l chlorofor mi n solven t

an dothe r applications

. Befor

e switchin g t o an y of thes e alternatives , firm s shoul dconsul t wit hEP A an dstat e agencies t o determin e curren t

requirement s an dth e potential fo

r futur e regulations

. I

n th e cas e of meta l cleanin g applications , alternative s t o thes e chlorinate d solvent s whic hmigh

t b e appropriat e fo

r many curren t

applications includin g aqueou s cleanin g a s wel l a s othe r non
chlorinate dsolvents

. Th e electronic s industry consume s CFC-11 3 t o remov e solde r flu x fro m printe dcircui t

boards , to degreas e semiconductors , t o manufactur e etchan t gases , to degreas e printe dcircui t board s i n storag e medi amanufacture , an din othe r ways
. Viabl e alternative s exis t fo r eac ho f thes e uses
. Beginnin g in th e short terman dexpandin g ove r th e longer term , th e us e o

f aqueou s cleanin g an dflu x tha t doe s no t requir e cleanin g appear s mos t

promising

. EP

A convene d apane l o f expert s in thi s fieldan dthe y reporte dtha t

it i s technicall y possibl e to eliminat e u p t o 9 0 percen t o f curren t CFC-11 3 us e in non-surfac e mount application s b y substitutin g aqueou s cleaning

. Th e remainin g 1 0 percen t depend s o n non-aqueou s cleaner s becaus e o f desig n choice s tha t

can b e change dove r

time

. An importan t

ste p in facilitatin g th e us e o

f aqueou s an dnon
clea n fluxe s may involv e workin g with th e U.S

. military t o revie w it s curren t solven t an dsolde r

specification s t o • facilitat e th e us e o

f thes e alternative s wher e appropriate

. d

. Flexible Foam. Thi s industry group include s maker s o

f polyurethan e foa

m slabstoc k use dprimaril y fo

r beddin g an dmattresses

. CFC-1 1 i s use da s a n auxiliary blowin g agen t

in tha t segment o f th e industry whic hproduce s les s expensive , lo w densit y or supersof t foams

. Man y producer s no w us e methylen e chlorid e t o make simila r foa mproducts

. However , becaus e o f toxicity concern s an dth e possibility o f more stringen t

regulation s bothinsid e an doutsid e th e workplace , it i s unlikel y tha t man y firm s wil l elec t

t o switc hto thi s alternativ e blowin g agen t No alternativ e technologie s o r chemical substitute s currentl y appear a s th e likel y replacement s fo r us e o f CFC

l l in blowin g flexibl e foam

. Instead , in th e near-ter mit

i s possibl e tha t

th e ver y softest , lowes t

density foam s wil l b e replace db y firmer

foam s blow n withou t a n auxiliar y agen t

Ove r th e longer-term , dependin g o n it s price , HCFC-12 3 ma y becom e aviabl e replacemen t fo r CFC

l l blow n foam

. Thi s chemical appear s t o b e apossibl e replacemen t fo r CFC-1 1 in man y foa

mapplications

. It

ha s simila

r industria l propertie s an dinitia l test s sugges t tha t i t migh t b e a n effectiv e substitut e blowin g agent

. HCFC-12 3 ha s asubstantiall y shorte r

lifetime tha n CFC-1 1 an dtherefor e ha s no t bee n include dunde r

th e chemical s covere d b y thi s proposal

. However , additiona l toxicity test s wil l b e require dbefore widesprea dus e i s possibl e an dth e cost s o f thi s substitiut e ar e likel y to b e approximatel y 2 time s t o 3 time s th e curren t pric e o f CFC-11

. Lik

e HFC-134a , thi s chemical shoul db e commerciall y availabl e in 5-year s to 6 year s assumin g n o major problem s ar e encountered

.

### Federa l Registe r / Vol

. 52 , No

. 23 9 /

Monday , Decembe r

14 , 1987 /

Propose dRule s 4751 1

^ A - — s s 5 "ir- - - - • ' w '• " • • « * • —'
. • . •--.• • —• i II . i • „ . • u f • • . • • i i
. P.2 8

I n additio n t o slabstoc k foam , flexibl e molde dfoa mblow n wit hCFC-1 1 i s use dprimaril y i n sea t

an dbac k cushion s b y aut o manufacturer s an d als o i n som e furnitur e uses
. Severa l companie s hav e state dtha t the y currentl y d o no t

us e CFC-1 1 a s a n auxiliar y blowin g agent ; the y hav e shifte dt o wate r

blow n foam

. Othe r companie s hav e note dtha t withi n thre e month s the y wil l als o shif t ou t o f CF C us e an dint o wate r

blow n foams

. e
. Commercial

and Residential Refrigeration. A s wa s th e cas e wit hai r conditioning , ove r

th e las t fe w years , commercia l refrigeratio n ha s move di n th e directio n o f

shiftin g som e use s fro m CFC-1 2 t o HCFC-22 , CFC-502 , CFC-50 2 an dothe r

refrigerants

. Thi s tren di s likel y t o continu e i n th e are ao f commercia l refrigeration

. Manufacturer s ca n als o furthe r

reduc e emission s fro m lea k testin g an drework

. Increase d recover y a t

reworking , ventin g an d disposa l wil l als o reduc e th e us e o f CFCs

. Ove r

th e longe r

term , HFC-134 a appear s promisin g a s amean s o f eliminatin g thi s us e o f

CFC-12

. Fo r hom e refrigerators , th e sam e substitut e ma y prov e feasible

. I n addition , hom e appliance s migh t b e produce dusin g amodifie dsterlin g cycl e o r othe r technolog y tha t

doe s no t

us e CF C a s it s refrigerant

. CFC-500 , whic h ha s a s ozone-depletin g potentia l o f 0.7 , ca n b e use di n som e appliance s suc ha s dehumidifiers

. f

. Rigid Insulating Foam. CFC-1 1 i s widel y use da s afoa mblowin g agen t t o mak e variou s form s o f

insulatin g foa m (e.g. , polyurethane , isocyanurate , phenolic , etc.)

. It s molecula r weigh t an d lo w therma l conductivit y mak e CFC-1 1 a n excellen t

chemica l i n th e manufactur e o f

highl y efficien t insulatin g material s use dfo r roofs , walls , an dfoundations

. I n th e near-term , thi s us e o f CFC s ma y no t b e significantl y reduce dbecaus e o f it s utilit y i n savin g energ y (an dmeetin g cod e requirements ) an dbecaus e n o substitut e blowin g agent s ar e available

. However , som e produc t substitute s ma y mak e inroad s int o it s curren t market

. Ove r th e longer-term , HCFC-12 3 ma y becom e a n attractiv e mean s o f reducin g thi s us e o f

CFC-11

. g
. Rigid Packaging Foam. CFC-1 2 i s use da s ablowin g agen t i n th e manufactur e o f

polystyren e foa mwhic h i s widel y use di n th e foo dpackagin g industry

. CFC-1 2 currentl y compete s wit hpentan e a s ablowin g agen t fo r producin g thi s foa mwit heac hcapturin g abou t 5 0 percen t

o f th e market

. Becaus e o f

pentane' s potentia l problem s wit hflammabilit y an dai r pollution , man y firm s no w usin g CFC-1 2 wil l no t wan t t o incu r th e substantia l cost s o f shiftin g t o thi s chemical

. Instead , recen t

proces s developmen t effort s hav e demonstrate dtha t HCFC

2 2 ca n effectivel y b e use da s a n alternat e blowin g agent

. Industr y estimate s sugges t

tha t onlyminima l cost s woul db e incurre di n convertin g a plan t fro mCFC-1 2 t o HCFC-2 2 (o n th e orde r o f $50,00 0 t o $100,000 ) an dtha t operatin g cost s an defficiencie s wil l no t b e significantl y affected

. A n applicatio n wa s recentl y approve db y th e Foo dan d Dru g Administratio n grantin g non
objectio n (e.g. , arulin g tha t th e propose d produc t fo r aparticula r

us e doe s no t diffe r materiall y fro ma n alread y approve dproduct ) t o th e us e o f HCFC

2 2 blow n foa mi n fas t

foo dpackaging

. h

. Total Flooding Fire Extinguishant Systems. Halo n 130 1 i s use dalmos t exclusivel y a s th e agen t i n tota l floodin g system s use dt o protec t compute r centers , documen t

rooms , libraries , militar y installations , etc

. Becaus e i t i s nontoxi c (whic hallow s i t t o b e discharge dwithou t

evacuatin g th e facility ) an dbecaus e i t doe s no t

leav e a residue , it s provide s a n extremel y usefu l functio n i n protectin g hig hvalu e property

. I n respons e t o recen t

concern s abou t th e rol e o f

halon s a s apotentia l ozone
depletin g substance , th e industr y ha s initiate daserie s o f

step s t o bette r understan dan dreduc e an y unnecessar y emission s o f

thi s gas
. Fo r

example , th e industr y decide dno t

t o requir e mandator y discharg e testin g o f ne w system s a s par t

o f arevie w o f

it s fir e protectio n code

. I t

i s explorin g th e developmen t

o f alternativ e tes t

gase s an dway s t o limi t

discharge s fro mfals e alarms

. I t

als o conducte da n industry

wid e surve y t o determin e curren t use s an dsource s o f

emission s an di s explorin g way s t o trac k halon s fro mth e tim e o f productio n t o thei r

releas e a s basi s fo r possibl y shiftin g t o a n emission s (instea do f

production ) base d regulator y regime

. I n th e nea r

term , th e voluntar y emissio n reductio n step s describe d abov e migh t

provid e ampl e roo mfo r continue dgrowt hi n th e numbe r o f system s assumin g substantia l reduction s fro munncessar y testin g an dfals e alarm s ca n b e realized

. Ove r th e longe r term , alternat e chemical s ma y b e developed , mor e efficien t us e o f thes e chemical s ma y b e possibl e (e.g. , shiftin g fro m130 1 tota l floodin g system s t o mor e directed , les s depletin g 121 1 systems) , o r th e industr y ma y b e capabl e o f demonstratin g tha t

a n emission s base d regulator y syste mi s aviabl e mean s o f protectin g th e environmen t whil e continuin g th e us e of

thes e chemicals

. i

. Halon Fire Extinguishers. Halo n 121 1 i s use dextensivel y i n wheele dan d handhel dportabl e fir e extinguishers

. Thes e extinguisher s ar e use di n situation s wher e huma n exposur e t o th e agen t i s possibl e (e.g. , airplanes ) o r wher e concern s exis t

abou t har mfro m residue s fro mothe r

agent s (e

. g. , computers)

. A t

th e sam e time , thes e extinguisher s hav e recentl y penetrate d th e broade r

consume r

marke t an dsom e percentag e ar e no w bein g purchase d an duse dfo r

appjication s wher e othe r agent s woul db e adequate

. I n addition , th e majo r

use r o f Halo n 121 1 i s th e militar y a s par t o f it s trainin g exercises

. Th e U.S

. militar y ha s alread y initiate darevie w o f

possibl e step s t o reduc e unneccesar y step s fro mtrainin g an di s als o workin g o n developin g alternativ e fire-fightin g agents

. j

. Sterilization. CFC-1 2 i n combinatio n wit hethylen e oxid e (EO ) (i n a12/8 8 blend ) i s widel y use db y hospitals , medica l equipmen t manufacturer s an dcontractor s fo r sterilizin g equipment

. Whil e 3 0 percen t o f th e commercia l marke t an dmajorit y o f hospital s no w us e thi s CFC/E O blend , othe r option s ar e currentl y feasible

. Hospital s coul dshif

t t o ablen do f carbo n dioxid e an dethylen e oxid e an d totall y eliminat e thei r

us e o f CFC-12

. Whil e thi s shif

t require s tha t

achambe r b e abl e t o withstan dhighe r pressur e an dma y involv e alonge r processin g time , neithe r

o f thes e concern s ar e expecte dt o creat e problem s fo r mos t hospitals

. Becaus e o f

thei r highe r volum e use , commercia l sterilizer s coul d economicall y increas e thei r recaptur e an drecover y o f

CFC-1 2 throug hth e additio n o f

carbo n adsorptio n o r refrigerate dcondensors

. I n turn , hospital s coul delec t

t o increas e thei r relianc e o n contrac t

sterilizer s a s a n alternativ e t o shiftin g t o carbo n dioxide / ethylen e oxid e mix

. Sterilizatio n usin g cobal t radiatio n ha s recentl y achieve dagrowin g shar e o f th e marke t

an doffer s anothe r attractiv e alternativ e t o curren t us e o f CFC-1 2 i n thi s application

. Othe r method s o f

sterilizatio n suc ha s electro n bea man dalternativ e chemical s ar e als o possibl e ove r

alonge r tim e period

. Finally , EP A i s als o seekin g commen t o n th e desirabilit y o f

requirin g tha t product s produce dwit hth e controlle d substance s b e labelled

. Thi s requiremen t

woul dprovid e usefu l informatio n fo r

consumers
. B y makin g i t possibl e fo r

consumer s t o distinguis h betwee n thos e spraycan s tha t containe d CFC s an dthos e tha t

di dnot , i t

wa s a n effectiv e par t

o f th e regulator y progra m limitin g thi s us e o f

CFC s i n 1978

. Labellin g requirement s coul db e use da sP.2 9



### 4751 2 Federa l Registe r / Vol

. 52 , No

. 23 9 /

Monday , Decembe r 14 , 198 7 /

Propose dRule s

a n adjunc t

t o an y o f

th e othe r

regulator y option s describe dabove

. VII

. Impac t

o f Propose dActio n A. Reductions in Ozone Depletion Th e propose dregulatio n woul d substantiall y reduc e th e threa t o f stratospheri c ozon e depletio n an dth e accompanyin g risks t o huma n healt h an dth e environment

. A s show n earlie r i n Tabl e 4 , i n th e absenc e o f an y regulation , acontinuatio n o f curren t trend s i n th e us e o f

ozone-depletin g chemical s coul dresul t

i n agloba l averag e o f

1 2 percen t

depletio n b y 205 0 an da s muc ha s 4 0 percen t depletio n b y 2075

. B y reducin g consumptio n o f th e mos t poten t ozone-depletin g CFC s i n approximatel y adecad e b y 5 0 percen t fro m198 6 level s an db y freezin g consumptio n o f

halon s 1211,1301 , an d 2402 , th e projecte ddepletio n o f ozon e woul db e substantiall y eliminated

. Base do n curren t

models , thes e limitation s (assumin g asignifican t portio n o f

othe r nation s tak e simila r steps ) woul dresul t

i n depletio n estimate s o f

1. 6 percen t

b y 205 0 an d unde r 1. 4 percen t

b y 2075

. Give n th e larg e uncertaintie s concernin g curren t

atmospheri c models , th e rate s o f

growt hof

othe r trac e gases , an dreductio n step s b y othe r nations , EPA' s propose dactio n represent s a reasonabl e near-ter mstrateg y fo r safeguardin g th e ozon e layer

. However , a s w e develo p abette r

understandin g o f thes e factors , EP A intend s t o periodicall y reasses s it s actions

. Th e Agenc y als o intend s t o participat e i n simila r reassessment s conducte dunde r th e auspice s o f

th e Montrea l Protocol

. B. Economic Impact I n it s regulator y impac t analysis , EP A ha s examine dth e potentia l cost s (i n term s o f U.S

. industry ) an dhealt han d environmenta l benefit s als o limite dt a th e U.S

. whic har e likel y t o resul t fro m th e propose daction

. Th e analysi s assume s tha t

alarg e portio n of

othe r develope dan ddevelopin g nation s jo m wit hth e Unite dState s i n reducin g thei r consumptio n an dproductio n of th e controlle dsubstances

. Give n th e natur e of

thi s issue , th e RI A necessaril y cover s abroa drang e o f areas
. O n th e cost s side , thi s analysi s cover s eigh t

majo r industria l groupings : refrigeration ; ai r

conditioning ; flexibl e foam ; rigi dfoam ; solven t cleaning ; sterilization ; miscellaneous ; an dfire extinguishant

. Th e RI A contain s informatio n o n ove r

65 0 differen t

contro l option s fo r

limitin g us e of

CFC s an d halon s withi n thes e industria l groupings

. Th e potentia l benefit s fro mlimitin g th e amoun t

of futur e depletio n als o cove r abroa draag e o f

healt han d environmenta l concerns
. A n increas e i n
. th e quantit y o f

damagid g ultraviole t radiatio n flu x would-represen t amajo r chafig e i n on e o f

th e basi c environmenta l parameter s potentiall y affectin g t o varyin g degree s mos t form s o f biologica l life

. Whil e researc ht o dat e o n fce effect s o f

increase dexposur e t o UV- B radiatio n ha s bee n limited , th e RI A explore s severa l specifi c potentia l area s o f damage , onl y som e o f

whic h cartib e quantifie dwit hcurrentl y availabl e information

. 1

. Economi c Cost s o f

Reduction s EP A use dabottom-u p approac hi n analyzin g th e cost s o f

meetin g th e propose dregulation

. A s describe d above , studie s wer e initiate di n eigh t majo r CF C an dhalo n us e categories

. Thes e grouping s wer e the n furthe r divide dint o 8 2 specifi c applications

. Fo r example , refrigeratio n wa s divide dint o 1 8 categorie s includin g retai l food , hom e refrigerators , refrigerate dtransport , etc

. Finall y cost s an demissio n reductio n estifnate s wer e develope dfo r ove r 65 0 distinc t contro l option s coverin g th e ful l rang e o f us e applications

. Thes e option s include dengineerin g controls , chemica l substitutes , produc t

substitutes , recover y an drecycling , an dwor k practices

. Cos t

estimate s include d capita l an doperatin g expense s (including , wher e applicable , an y energ y penalty)

. Technologie s wer e assesse di n term s of th e dat e a t

whic hthe y woul d b e availabl e (0- 3 years , 4- 7 years , o r longer) , an dtiie (at e an dlimit s fo r achievin g marke t

penetration

. Tii e cos t estimate s fo r

thes e redaction s wer e use da s th e inpu t fo r th e Integrate dAssessmen t

Mode l (IAM ) whic hprovide destimate s of th e tota l cos t o f meetin g aregulator y goal

. Th e mode l operate s fey prioritizin g th e potentia l reduction s o n th e basi s o f leas t cos t an dth e judgmen t

o f EPA' s corttractor s base do n discussio n wit h industr y representative s concernin g th e likel y respons e to regulation s o n th e par t o f specifi c iadustr y sectors

. Th e outpu t

fro mth e mode l provide s a n estimat e o f

th e tota l socia l cost s fo r meetin g arequire dleve l o f reductions , th e CF C o r

halo n pric e increase s whic h wosl dlikel y accompan y suc hcosts , an d th e amoun t

of transfer s whic hwoul db e involved

. Tabl e 5 contain s thes e estimate s fo r

propose dregulatio n unde r fou f differen t assumption s concernin g th e rat e a t

whic hfirm s respon dt o change s i n marke t

condition s resultin g fro mrestriction s o n th e regulate d chemicals

. Th e "leas t cost " scenari o assume s tha t al l reduction s ar e take n a s soo n a s the y ar e technologicall y availabl e an d' a s soo n a s th e cos t

o f CFC s o r halon s excee dth e cos t

o f makin g th e reduction

. I n thi s scenario , CF C pric e increase s ar e minima l i n th e earl y years , ris e t o $3.77 / k g aroun dth e tur n o f

th e centur y an d platea u aroun d$5.48/k g wel l befor e 207 5 whe n chemica l substitute s hav e penetrate d

jnajo r markets

. Th e lo w initia l cos t

increase s reflec t th e larg e quantit y o f

CF C an dhalo n reduction s tha t

ar e availabl e wit h curren t technologie s an dwhic heithe r wil l sav e firm s mone y (e.g. , throug h additiona l CF C o r

halo n recovery ) o r whic har e competitive

. I n th e latte r year s o f th e analysis , th e $5.4 8 pric e ceilin g reflect s th e anticipate dcost s of alternativ e chemical s (e.g. , primaril y HFC-134 areplacin g CFC-1 2 an dHCFC

12 3 replacin g CFC-1 1 i n foa m applications ) whic hcoul dreplac e larg e quantite s o f

curren t CF C use
. I n th e leas t cos t scenario , tota l socia l cost s wer e calculate dt o b e $68 9 millio n throug h200 0 an d$2 7 billio n throug h 207 5 (al l socia l cost s assum e a2 percen t discoun t rate)

. I n contras t

t o th e "leas t

cost " case , th e othe r scenario s assum e varyin g degree s o f

dela y i n implementatio n o f step s t o reduc e CF C an dhalo n use
. Firm s migh t

dela y thei r

respons e for

an y of severa l reasons : The y lac k informatio n abou t

th e availabilit y o r applicabilit y o f

atechnology ; the y ar e les s concerne dabou t

minimizin g cost s i n th e short-ru n becaus e the y ca n pas s o n pric e increase s t o consumers ; the y ma y lac k acces s t o capita l t o mak e a shif t t o alowe r

cos t technology ; o r

the y ma y assum e ahig h"hurdl e rate " (i.e. , th e desire dretur n o n capita l fo r an y ne w investments ) fo r

capita l committe d t o pollutio n control

. Th e cost s o f

meetin g th e propose d regulatio n unde r

thes e alternativ e scenario s i s als o show n i n Tabl e 5

. Th e socia l cost s calculate dfro mth e IA M throug h200 0 range dfro m$1. 1 billio n t o $1. 8 billio n dependin g o n th e rat e a t whic hfirm s implemente dlo w cos t reductions

. Th e CF C pric e increas e whic hwoul daccompan y thes e cost s i n al l scenario s reache d$5.48/k g jus t befor e th e tur n o f

th e century

. However , th e rang e o f

transfe r cost s durin g thi s tim e perio d(1989-2000 ) wa s muc h wider , reflectin g differen t pric e increas e i n th e initia l years
. I n th e "moderat e stretchout " cas e transfer s throug h207 5 totale d$7.1 5 billion , whil e i n th e "majo r stretchout " cas e transfer s totale d$9. 4 billion

. Thus , th e rat e a t

whic hfirm s implemen t

lo w cos t

reduction s i s a nP.3 0



### Federa l Registe r/

Vol

. 52 , No

. 23 9 /

Monday , Decembe r

14 , 1987 /

Propose dRule s 4751 3
importan t

determinant , particularl y i n th e near-term , o f

th e cost s an dtransfe r payment s involve di n meetin g th e propose dregulations

. A s par t o f analyzin g th e economi c cost s o f reducin g CF C an dhalo n use , th e RI A als o take s int o consideratio n possibl e impact s o f

th e propose d regulatio n o n energ y use
. CFC s ar e use d i n awid e rang e o f

energy-relate darea s includin g insulatio n fo r building s an d appliances

. It s therma l efficienc y als o affect s energ y consumptio n o f refrigerator s an dothe r

appliances

. Base do n th e analysi s i n th e RIA , n o significan t

increase s i n energ y consumptio n o r

cost s ar e likel y t o occur
. I n th e near-term , CFC s ar e stil l likel y t o b e use di n majo r

appliances

. I n th e cas e o f insulation , buildin g an denerg y code s generall y requir e ase t

leve l o f energ y efficienc y whic hwil l eithe r continu e t o b e satisfie db y CFC-blow n foa mo r b y othe r insulatin g material s (e.g

. fiberglass)

. I n th e longer-term , substitut e blowin g agent s ar e likel y t o b e develope dan dformulation s modifie dt o maintai n curren t

insulatin g values

. 2

. Healt han dEnvironmenta l Benefit s Th e RI A als o contain s adescriptio n o f th e potentia l benefit s tha t woul dresul t fro maction s t o limi t

th e risk s fro m ozon e depletion

. I n som e o f th e healt h an denvironmenta l areas , sufficien t researc hha s bee n complete dt o provid e abasi s fo r

ados e respons e relationshi p whic hca n b e use dfo r

calculatin g potentia l benefits

. Example s o f thes e area s includ e nonmelanom aan d melanom aski n cancer , an dcataracts

. I n othe r areas , researc ho n UV- B radiatio n effect s primaril y ha s take n th e for mo f cas e studies

. Fo r

example , researc ho n plan t effect s ha s progresse dth e furthes t o n so y beans , whil e researc ho n aquati c effect s ha s examine dpotentia l impact s o n anchovies

. I n thes e an dsimila r area s (e.g. , increase dgroundleve l ozon e formatio n an dse aleve l ris e impacts) , th e RI A quantifie s benefit s base do n a n extrapolatio n fro mexistin g cas e studies

. Finally , i n severa l areas , initia l studie s hav e clearl y show n tha t increase dUV- B radiatio n wil l caus e damage , bu t no t enoug hinformatio n exist s t o quantif y thos e impacts

. Example s includ e suppressio n o f

th e immun e syste man d climat e relate dimpact s o n wate r resources , agriculture , forests , etc

. A detaile ddecriptio n o f

th e derivatio n o f th e benefit s estimate s ar e include di n volume s 1 an d2 o f

th e RIA

. Tabl e 7 summarize s estimate s o f th e economi c benefit s whic hwoul dresul t fro mth e propose daction s t o preven t futur e depletio n o f

th e ozon e layer

. Thes e benefit s reflec t

th e differenc e betwee n th e bas e cas e (n o regulation ) describe di n Sectio n I V an dth e "CF C 50% , Halo n Freeze " cas e whic hform s th e basi s fo r

thi s propose dregulation

. I t shoul db e state dtha t

projectin g benefit s ou t

t o th e yea r

207 5 i s aver y speculativ e exercis e a t

bes t (bu t i s require dbecaus e o f

th e lon g atmospheri c lifetim e o f thes e chemicals)

. Th e estimate s ar e subjec t t o substantia l uncertaintie s bot hi n th e calculatio n o f th e dose-respons e effects , an di n th e economi c value s place do n suc heffects

. Du e t o thi s enormou s uncertainty , th e benefit s hav e bee n estimate di n ranges
. TABL E 7.—SUMMAR Y O F BENEFIT S FRO M

PROPOSE D REGULATION *

Effects:

Valuation:" Valu e o f ski n cance r cases flo wan d hig h sensitivity).

. Valu e o

f ski n cance r deaths

. (lo wan d hig h sensitivity).

. Valu e o f cataract case s (lo wan d hig h sensitivity).

. (lo wan d hig h sensitivity).

. (lo wan d hig h sensitivity).

. Damag e t o crop s fro m groun d leve l ozone . (lo wan d hig h sensitivity).

. (lo wan d hig h sensitivity).

. Se a leve l rise damag e to majo r ports
. Tota l monetar

y benefits : (lo wan d hig h sensitivity).

. Referenc e scenari o

154.4 3 millio n cases .

$61. 3 billion

. ($1. 1 bill.-$20 5 Ml.)

. $6.3 5 trillion

. ($17. 4 bill.-$34 2 toil.). $2.5 7 billion

. ($7 2 mill.-$7. 8 bill.)

. $23. 4 billion

. ($2. 3 MI.-S4 6 Ml)

. ($3bill.-$11.4bill.)

. $12. 4 billion

. ($1. 1 bill.-S24. 9 bill.)

. $3.1 2 billion

. ($22 1 mill.-$6. 3 bill.)

. $4. 3 billion

. $6. 3 trillion

. ($2 9 bill , to $34 0 toil).

* Show s valu e o

f avoided damag e relativ e t o "n o regulation " Fo r population s aliv e toda y an d bor n before 2075

. " Ranges fo r damag e valuatio n reflec t th e followin g sce narios : th e hig h scenari o assumes a 1 percen t discoun t rat e an d a $ 4 millio n valu e o f lif e whic h increases b

y 3. 4 percen t pe r year . Th e lo

wscenari o assumes a 6 percen t discoun t rat e an d a $ 2 millio n valu e o f lif e whic h increases b

y 0.6 5 percen t pe r year . Th e mediu m scenari o assumes a 2 percen t discoun t rat e an d a $ 3 millio n valu e o f life whic h increases b y 1.7 percen t pe r year . Healt h effect s (ski n cance r incidence an d mortality , an d catarac t incidenc

e modeled base d o n dose-response esti mate s presente d k l EPA (1987)

. Cro p estimate s presente d fo r grai n crop s base d only o n dos e response develope d fo r so y beans

. Damag e t o fis h estimate d fo r commercia l harves t o f fi n an d shel l fis h base d o n dos e response develope d to r anchovies

. Polyme r estimates base d o n dos e response model s develope d lo r PVC an d extende d t o includ e acrylics an d polyesters

. Damag e to crops fro m groun d leve l ozon e base d o n cas e studie

s o f 3 U.S

. cities an d a nationa l cro p los s model

. Se a leve l rise estimates

. assum e anticipator y actio n t o lesse n damages , bu t only includes stor m damag e t o majo r port

s base d o n limited cas e studies

. Th e tota l benefit s throug h207 5 wer e estimate dt o b e betwee n $2 9 billio n an d $34 0 trillio n (benefi t

estimate s wer e discounte dove r

arang e o f

1 percen t

t o 6 percen t annually)

. Th e majorit y o f thes e benefit s resulte dfro mdecrease s i n th e numbe r o f death s fro mski n cance r whic hi s a n are awher e effect s researc h ha s progresse dth e furthest

. Th e ski n cance r benefi t estimates , however , assum e n o improvemen t i n ou r abilit y t o trea t ski n cancer
. If

acur e fo r

cance r wer e discovered , thes e benefit s woul d decreas e enormously

. Becaus e mor e limite dresearc hha s bee n undertake n i n th e are ao f

potentia l damag e t o crop s an daquati c organisms , th e estimate s o f potentia l benefit s fo r thes e area s ar e als o uncertain

. I n it s repor t t o EPA , th e Scienc e Advisor y Boar dstate dtha t i t believe dtha t

damag e relate dt o thes e area s coul dprov e t o b e o f greate r globa l magnitud e tha n har mfro mski n cancers
. 3

. Compariso n o f

Cost s an dBenefit s Base do n th e analysi s presente d abov e an ddetaile di n th e RIA , th e estimate dbenefit s fro mth e propose d regulatio n woul dfa r

excee dth e estimate dcosts

. Tabl e 8 summarize s thes e benefit s an dcosts

. I t show s tha t fo r thos e area s wher e quantificatio n wa s possible , benefit s woul dtota l fro m $2 9 billio n t o $34 0 trillio n fo r th e perio d 1989-2075

. I n comparison , cost s o f reducin g CFC s an dhalon s calle dfo r b y th e propose dregulatio n fo r th e sam e perio dwoul dtota l approximatel y $2 7 billion

. Tabl e 9 illustrate s th e extrem e sensitivit y o f

thi s analysi s t o specifi c individua l assumption s abou t discoun t rate s an dth e valuatio n o f life

. Additiona l sensitivitie s ar e include di n th e RIA

. TABL E 8.—COMPARISO N O F COST S AN D BENEFIT S THROUG H 

### 2075 b y Scenari o f Billion s o f 198 5 dollars ]

N o Controls : CF C Freez e

... . (low ) (high ) CF C 20 % (low ) (high ) CF C 50 % (low ) (high ) CF C 80 % (low ) (high ) CF C 50% / Halo n freez e

.. . (low ) (high ) CF C 50% / Halo n freeze/U.S

. 80 % (low ) (high ) U.S

. onl yCF C 50 % (low ) (high ) Healt h

an d environ

menta l benefit s

5.99 5 1 6 324,00 0 6,13 2 1 7 330,00 0 6,29 9 1 8 339,00 0 6,40 0 1 9 341,00 0 6,46 3 1 9 345,00 0

6,50 6 1 9 346,00 0 2,85 2 8 135,00 0 Cost s

7 0. 7 1 2 1 2 2 2 1 2 4 5 4 1 3 1 7 5 1 2 7 5 4 6

3 4 7 5 6 2 7 5 4 6 Ne t benefit s

5.98 8 1 5 323,98 8 6,12 0 1 5 229,97 9 6,27 5 1 3 338,95 9 6.36 9 1 2 340,94 9 6,43 6 1 4 344,95 4

6,47 2 1 2 345,94 4 2,82 5 3 134,95 4

Al l dolla r

value s reflec t

th e differenc e betwee n th e N o Control s Scenari o an dP.3 1

4751 4 Federa l Registe r /Vol

. 52 , No

. 23 9 / Monday , Decembe r 14 , 198 7 /

Propose dRule s
th e specifie dalternativ e scenario

. Valuatio n o f

th e healt han d environmenta l benefit s applie s onl y t o peopl e bor n befor e 2075 ; cost s ar e estimate dthroug h2075

. Range s fo r

damag e valuatio n reflec t th e followin g scenarios : th e hig h scenari o assume s a1 percen t discoun t rat e an da$ 4 millio n valu e o f lif e whic h increase s b y 3. 4 percen t pe r year
. Th e lo w scenari o assume s a6 percen t discoun t rat e an da$ 2 millio n valu e o f lif e whic hincrease s b y 0.8 5 percea t pe r year
. Th e mediu mscenari o assume s a2 percen t discoun t

rat e an da$ 3 millio n valu e o f lif e whic hincrease s b y 1. 7 percen t pe r year
. Source : EP A Regulator y Impac t Analysis , 1987

.
TABL E 9.—SUMMAR Y O F RESULT S O F SENSI

TIVIT YANALYSE S FO R COST S AN D MAJO R HEALT H BENEFIT S FO R PEOPL E BOR N BE

FOR E 207 5

Sensitivit y

t. Base case (assume s a tw o percen t discount rate)

2. Discount

rates A

. 1 percen t

B

. 6 percen t Protoco l 3. Value ot life A

. $ 2 millio n

S

. $ 4 millio n Protoco l Ozon e

deple tio n b y 207 5 (percent)

39. 9 1.3 38. 6

39. 9 1.3 38. 6 39. 9 1.3 38. 6

39. 9 1.3 38. 6 39. 9 1.3 38. 6 Valu e o f live s los t <10" )

6,49 9 15 0 6,34 9

24.65 0 38 8 24.26 2
7 1 9 6 2
4,33 3 10 0 4,23 3 8,66 7 22 5 8,44 2 Con tro l cost s (10» )

2 7 2 7

4 6 4 6

5 5

2 7 2 7

2 7 2 7 Net presen t valu e o f bene fits cost s (10« >

6.32 2

24,21 6

5 7

4,20 6

8.41 5 Source : EP

A Regulator

y Impac t Analysis , 1987

. VIII

. Additiona l Informatio n A. Executive Order

12291 Executiv e Orde r

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

aregulator y 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 s o r

price s fo r consumers , individua l industries

. Federal , State , 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 , innovation , o r o n th e abilit y of Unite dStates-base d enterprise s t o compet e wit hforeign

base denterprise s i n domesti c o r expor t markets

. EP A ha s determine dtha t thi s propose dregulatio n meet s th e definitio n o f aijpajor rul e unde r

E.O

. 12291 , an d ha s prepare daregulator y impac t anabjfete (RIA)

. Th6 t

document , alon g wit hibi s notic e oflpropose drulemaking , ha s hge n submitte dt o th e Offic e o f Managemen t

wi dBudge t

(OMB ) fo r revie w unde r

Hkeeaitiv e Orde r

12291

. An y fjsmment s fro mOM B an dan y EP A response s t o sao hcomment s ar e availabl e fo r

publi c inspectio n a t

th e Centa l Docke t

Section , Sout h Confluenc e Room# , Docke t No

. A-87

- 20 , U1S

. Environmejita l Protectio n Agenfy , 401 M Strie t

SW. , Washington , D C 2#460

. A cop y of

th e RI A ha s als o bee n place di n th e rulemakin g docket

. B. Regulatory Flexibility Act Th e Regulator y flexibilit y Act , 5 U.S.C , 601-612 , require s tha t Federa l agenrje 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 requite 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 inlia l regulator ^ flexibilit y analysi s (RFA|

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

as i agenc y certifie s tha t a rul e vw M no t hav e asignifican t

economi c impatf t o n asubstantia l numbe r o f smal l entities , pursuan t

to 5 U.S.C

. 605(b)

. EP A ha s pfepare da n initia l regulator y flexibilit y analysis * fo r

th e regulation s propose di n thi s notice , an dthi s initia l RF A feas bee n place di n th e rulemakin g docket

. Th e initia l RF A conclude dtha t o f th e man y industrie s potentiall y affecte db y tiie psopose dregulation , th e foa m blowfr s wer e th e onl y grou p tha t coul d b e substantiall y aftecte dbase do n th e criteri acontaine dk i EP A guideline s o n preparatio n o f

a n I FA

. Fo r

thei r industries , becaus e CFC s ar e suc ha mino S portio n o f

tota l produc t

costs , pric e increase s o f

ifh e magnitud e anticipate db y this*regulatio n woul dno t resulti n significan t

economi c impacts

. Th e preliminar y RF A suggest s tha t differga t segment s of

th e foamblowin g industr y ar e lifeely t o b e affecte dt o differis t extent s dependin g o n th e availabilit y o f

chemica l substitute s versu s alternativ e products

. Fo r example , th e polystyren e foa mblower s ma y f e abl e t o shif

t fro mCFC-1 2 t o HCFGr-2 2 withou t

mcurrin g larg e capita l cost s an dtherefor e woul dremai n competitiv e wit hpape r an dothe r

form s o f packaging

. I n th e cas e o f rigi dfoam , pric e increase s ma y caus e som e los s o f marke t shar e t o non-CF C blow n foa mo r t o othe r materials

. Du e t o dat a limitation s an dth e inabilit y t o accuratel y mode l behaviora l changes , th e numbe r

o f firms tha t

migh t g o ou t of busines s versu s th e numbe r tha t woul d shif t t o providin g othe r

insulatin g materia l coul dno t

b e determined

. I n designin g an devaluatin g it s regulator y options , EP A sough t t o minimiz e th e burden s place do n smal l • firms

. I n addition , th e propose dhybri d approac h(allocate dquota s plu s targette dregulations ) woul dfurthe r reduc e potentia l increase s i n CF C price s an dthereb y reduc e th e impac t o n th e foamblowin g industry

. Becaus e foa m blowin g i s on e o f

th e majo r

use s o f CFCs , providin g foa mblower s wit hse t aside s an doutrigh t

exemption s woul d hav e substantia l impact s o n effort s t o protec t th e ozon e laye r

o r substantiall y increas e cost s t o othe r

industries

. C. Paperwork

Reduction Act Th e informatio n collectio n requirement s i n thi s propose drul e wil l b e submitte dfo r

approva l t o th e Offic e o f Managemen t

an dBudge t

(OMB ) unde r th e Paperwor k

Reductio n Ac t

o f 1980 , 4 4 U.S.C

. 350 1 et

seq. Comment s o n thes e requirement s shoul db e submitte d t o th e Offic e o f

Informatio n an d Regulator y Affairs , OMB , 72 6 Jackso n Place , Washington , D C 2053 0 marke d "Attention : Des k

Office r fo r EPA. " Th e fina l rul e wil l respon dt o an y OM B o r publi c comment s o n th e informatio n collectio n requirements

. IX

. Reference s Connell , P.S. , (1980) , " A parameterize d numerical fi

t to total colum

n ozon e change s calculate db y th e LLN

L1- D model o

f th e tropospher e an dstratosphere" , Lawrenc e Livermor e National Laboratory , Livermore , CA

. Farman , J.C , B.G

. Gardiner , an dJ.D

. Shanklin , (1985) , "Larg e losse s o f tota l ozon e in Antarctic arevea l seasona l ClOx/NO x interaction" , Nature. 315 , 207-210

. Kerr , R.A. , (1987) , "Ha s Stratospheri c Ozon e Starte dt o Disappear?" , Science, 237 , 131-132

. Khalil , M.A.K. , an dR.A

. Rasmussen , (1985) , "Trichlorofluoroethan e (F-113 ) trend s at Pt

. Barrow , Alaska" , in Geophysical Monitoring for Climate Change, No. 13. Summary Report 1984, U.S

. Department

o f Commerce , Boulder , CO

. Molina , M.J. , an dF.S

. Rowland

. (1974) , "Stratospheric sin

k fo r chlorofluoromethanes : chlorin e atom-catalyse ddestructio n o f ozone" , Nature, 249 , 810-812

. National Academy o

f Sciences , (NAS) , (1976) , Halocarbons: Effects on Stratospheric Ozone, Nationa l Academ

y Press , Washington , DC

. National Academy o

f Sciences , (NAS) , (1979a) , Protection Against Depletion of Stratospheric Ozone by Chlorofluorocarbons. National Academy Press , Washington , DC

. National Academy o

f Sciences

. (NAS) , (1979b) , Stratospheric Ozone Depletion byP.3 2

Federa l Registe r/

'Vol
. 52 , No . 23 9 /

Monday . Decembe r14 , 1987' / Propose d Rule s ; 4751 5

— * Halocarbons: Chemistry arid Transport,

.. National Academy Press, Washington , DC

. • Nationa l Academy o

f Sciences , (NAS) , (1983) , Changing Climate, Nationa l Academ y Press , Washington , DC
. , Nationa l Academy o

f Sciences' , (NAS) , (1984) , Causes and

Effects of

Changes in '

• ' Stratospheric Ozone: Update 1983, Nationa l Academy Press , Washington , DC ' Nationa l Aeronautics and Space - Administration , (NASA)
. (1986)
. Present State' of Knowledge of

the Upper

Atmosphere: Ah Assessment

Report,Processes that

Control

. Ozone arid

Other Climatically ImportantTrace Gases, NASA Referenc e Publication 1162 ; NASA , Washington , DC
. Prather ; M.J.

, M.B . McElroy, and S.C
. Wofsy , (1984) , "Reduction s i n ozon e a

thig h concentrations.of

stratospherichalogens" , .. . Nature, 312,227-231
. Pyle , J.A., and J.C

. Farman , (1987) , "Ozon

e Depletion : Antarcti cChemistr y to Blame" , Nature, 329,103-104
. Rasmussen , R.A. , an

d M.A.K
. Khalil , (1982) , "Atmosphericfluorocarbon s an d methy l chlorofor m a tthe Sout h Pole",Vl/itorc//

c Journal of the United

States: 1982 Review, 203-205
. United Nations Environmen tProgramme

, (1987) , "Ad

Hoc Scientifi cMeetin

g to Compar e Mode l Generate

d Assessments o

f Ozone Laye

rChang e fo rVarious Strategies fo rCF C Control" , Wurzburg

, Federa l Republico

f Germany , 9-1 0 Apri

l 1987, UNEP

/ WG.167/INF. 1 United State s Environmenta l Protection Agenc y (EPA) , (1987) , An Analysis of the Risks from Trace Gases That Can Modify the Stratosphere, U.S
. EPA

, Washington , DC
. Worl d Meteorologica

l Organization . (WMO) , (1986) , Atmospheric Ozone 1985. Assessment

of Our Understanding of

the Processes Controlling its Present Distribution and Change. WM

O Globa l Ozone Researc

h and Monitorin

g Project—Repor

tNo . 16 , WMO, Geneva , Switzerland
. Date : December1,1987
. ' Le e M . Thomas , Administrator. United Nations Environmen tProgramm

e

. MONTREA L PROTOCO L O N SUBSTANCE S THA T DEPLETE TH E OZON E LAYER. Fina l Act , 198 7 Montrea l Protoco l o n Substance s Tha t Deplet e th e Ozon e Laye r Th e Partie s t o thi s Protocol , Being Partie s t o th e Vienn a Convention , fo rth e Protectio n o f th e Ozon e Layer , Mindful o f thei robligatio n unde rtha t Conventio n t o tak e appropriat e measure s t o protec thuma n healt h an d th e environmen tagains tadvers e effect s resultin g o rlikel y t o resul tfro m huma n activitie s whic h modif

y o rar e likel y t o modif y th e ozon e 1 year , Recognizing tha tworld-wid e emission s o f

certai n substance s ca n significantl y deplet e an d otherwis e modif y th e ozon e laye ri n amanne rtha t i s likel y t

d resul ti n advers e effect s o n huma n healt h an d th e environment , Conscious o f

th e potentia l climati c effect s o f emission s o f

thes e substances , Aware tha tmeasure s take n t o protec t th e ozon e laye rfro m depletio n shoul d b e base d o n relevan tscientifi c knowledge , takin g int o accoun ttechnica l an d economi cconsiderations
. Determined

t o protec tth e ozon e laye r b y takin g precautionar y measure s t o contro l equitabl y tota l globa l emission s o f substance s tha tdeplet e i twit h th e ultimat e objectiv e o f

thei reliminatio n o n th e basi s o f

development s i n scientifi c knowledge , takin g int o accoun t technica l an d economi cconsiderations , Acknowledging tha tspecia l provisio n i s require d t o mee tth e need s o f developin g countrie s fo rthes e substances , Noting th e precautionar y measure s fo r controllin g emission s o f certai n chlorofluorocarbon s tha thav e alread y bee n take n a tnationa l an d regiona l levels , Considering th e importanc e o f promotin g internationa l co-operatio n i n th e researc h ari d developmen to f scienc e an d technolog y relatin g t o th e contro l an d reductio n o f

emission s o f substance s tha tdeplet e th e ozon e layer , bearin g i n min d i n particula rth e need s o f developin g countries , Hav e agree d a s follows : Artcle I: Definitions Fo rth e purpose s o f

thi s Protocol : 1
. "Conventio n mean s th e Vienn a Conventio n fo rth e Protectio n o f th e Ozon e Layer , adopte d o n 2 2 March'1985
. 2
. "Parties " means , unles s th e tex t otherwis e indicates , Partie s t o thi s Protocol . 3
. "Secretariat " mean s th e secretaria t o f th e Convention
. 4
. "Controlle d substance " mean s a substanc e liste d i n Anne x A t o thi s Protocol , whethe rexistin g alon e o ri n a mixture
. I

texcludes , however , an y suc h substanc e o rmixtur e whic h i s i n a manufacture d produc tothe rtha n a containe ruse d fo rth e transportatio n o r storag e o f

th e substanc e listed
. 5
. "Production " mean s tb e amoun to f controlle d substance s produce d minu s th e amoun tdestroye d b y technologie s t o b e approve d b y th e Parties
. 6
. "Consumption " mean s productio n plu s import s minu s export s o f controlle d substances . 7 . "Calculate d levels " o f production , imports , export s an d consumptio n mean s level s determine d i n accordanc e wit h Articl e 3
. 8
. "Industrial rationalization " mean s th e transfe ro f

al l o raportio n o f

th e calculate d leve l o f

productio n o f

on e Part y t o another , fo rth e purpos e o f

achievin g economi cefficiencie s or•>• j ' respondin g t o anticipate d shortfall s i n suppl y a s aresul to f

plan tclosures . Article 2: Control

Measures 1
. Eac h Party shal l ensur e tha tfo rth e twelve-mont h perio d commencin g o n th e firs tda y o f

th e sevent h mont h followin g . th e dat e o f

th e entr y int o forc e o f

thi s > Protocol , an d i n eac h twelve-mont h perio d thereafter , it s calculate d leve l o f consumptio n o f

th e controlle d . \ 7 " substance s i n Grou p I o f Anne x A doe s no texcee d it s calculate d leve l o f : consumptio n i n 1986
. B y th e en d o f th e . sam e period , eac h Party producing.on e • o rmor e o f

tiiese substance s shal l ensur e tha tit s calculate d leve l o f productio n o f th e substance s doe s no texcee d it s • calculate d leve l o f

productio n i n 1986 , . excep ttha tsuc h leve l ma y hav e increase d b y n o mor e tha n te n pe rcen t: base d o n th e 198 6 level . Suc h increas e shal l b e permitte d onl y s o a s t o satisf y th e basi cdomesti cheed s o f th e Partie s operatin g unde rArticl e 5 an d fo rth e purpose s o f

industria l rationalizatio n betwee n Parties
. 2
. Each , Party shal l ensur e tha tfo rth e twelve-mont h perio d commencin g o n th e firs tda y o f

th e thirty-sevent h mont h followin g th e dat e o f

th e entr y int o forc e o f thi s Protocol , an d i n eac h twelve
mont h perio d thereafter , it s calculate d leve l o f consumptio n o f

th e controlle d substance s liste d i n Grou p I I o f Anne x A doe s no texcee d it s calculate d leve l o f consumptio n i n 1986
. Eac h Party producin g on e o rmor e o f thes e substance s shal l ensur e tha tit s calculate d leve l o f

productio n o f

th e substance s doe s no texcee d it s calculate d leve l o f

productio n i n 1986 , excep ttha tsuc h leve l ma y hav e increase d b y n o mor e tha n te n pe rcen t base d o n th e 198 6 level . Suc h increas e shal l b e permitte d onl y s o a s t o satisf y th e basi cdomesti cneed s o f th e Partie s operatin g unde rArticl e 5 an d fo rth e purpose s o f

industria l rationalizatio n betwee n Parties
. Th e mechanism s fo r implementin g thes e measure s shal l b e decide d b y th e Partie s a tthei rfirs t meetin g followin g th e firstscientifi c review
. 3
. Eac h Party shal l ensur e tha tfo rth e perio d 1 Jul y 199 3 t o 3 0 June 199 4 an d i n eac h twelve-mont h perio d thereafter , it s calculate d leve l o f

consumptio n o f

th e controlle d substance s i n Grou p I o f Anne x A doe s no texceed , annually , eight y pe rcen to f

it s calculate d leve l of consumptio n i n 1986
. Eac h Party producin g on e o rmor e o f thes e substance s shall , fo rth e sam e periods , ensur e tha tit s calculate d leve l o f productio n o f

th e substance s doe s no tP.3 3

4751 6 Federa l Registe r / Vol

. 52 , No , 23 9 /

Monday , Decembe r 14 , 198 7 /

Propose dRule s
exceed , annually , eight y pe r cen t o f it s calculate dleve l o f

productio n i n 1986

. However , i n orde r

t o satisf y th e basi c domesti c need s o f

th e Partie s operatin g unde r Articl e 5 an dfo r

th e purpose s o f industria l rationalizatio n betwee n Parties , it s calculate dleve l o f productio n ma y excee dtha t

limi t b y u p t o te n pe r cen t o f it s calculate dleve l o f

productio n i n 1986

. 4

. Eac hPart y shal l ensur e tha t fo r th e perio d1 Jul y 199 8 t o 3 0 Jun e 1999 , an di n eac htwelve-mont hperio dthereafter , it s calculate dleve l o f

consumptio n o f

th e controlle dsubstance s i n Grou p I o f Anne x A doe s no t

exceed , annually , fift y pe r cen t o f it s calculate dleve l o f consumptio n j n 1986

. Eac hPart y producin g on e o r

mor e o f thes e substance s shall , fo r

th e sam e periods , ensur e tha t

it s calculate dleve l o f productio n o f

th e substance s doe s no t exceed , annually , fift

y pe r cen t o f it s calculate dleve l o f

productio n i n 1986

. However , i n orde r

t o satisf y th e basi c domesti c need s o f

th e Partie s operatin g unde r Articl e 5 an dfo r

th e purpose s o f industria l rationalizatio n betwee n Parties , it s calculate dleve l o f productio n ma y excee dtha t

limi t b y u p t o fiftee n pe r cen t o f it s calculate dleve l o f productio n i n 1986

. Thi s paragrap hwil l appl y unles s th e Partie s decid e otherwis e a t

ameetin g b y atwo-third s majorit y o f

Partie s presen t

an dvoting , representin g a t

leas t two-third s o f

th e tota l calculate dleve l of consumptio n o f thes e substance s o f

th e Parties

. Thi s decisio n shal l b e considere dan dmad e i n th e ligh t

o f th e assessment s referre d t o i n Articl e 6

. 5

. An y Part y whos e calculate dleve l o f productio n i n 198 6 o f

th e controlle d substance s i n Grou p I o f Anne x A wa s les s tha n twenty-fiv e kilotonne s may , fo r th e purpose s o f

industria l rationalization , transfe r t o o r receiv e fro man y othe r

Party , productio n i n exces s o f th e limit s se t

ou t i n paragraph s 1 , 3 an d4 provide dtha t th e tota l combine dcalculate dlevel s o f productio n o f

th e Partie s concerne d doe s no t excee dth e productio n limit s se t ou t i n thi s Article

. An y transfe r o f suc hproductio n shal l b e notifie dt o th e secretariat , n o late r

tha n th e tim e o f

th e transfer

. 6

. An y Part y no t

operatin g unde r Articl e 5 , tha t

ha s facilitie s fo r

th e productio n o f

controlle dsubstance s unde r construction , o r

contracte dfor , prio r t o 1 6 Septembe r

1987 , an d provide dfo r

i n nationa l legislatio n prio r t o 1 Januar y 1987 , ma y ad dth e productio n fro msuc hfacilitie s t o it s 198 6 productio n o f

suc hsubstance s fo r th e purpose s o f

determinin g it s calculate dleve l o f

productio n fo r

1986 , provide dtha t suc hfecilities ar e complete db y 3 1 Decembe r 199 0 an d tha t st^ hproductio n doe s no t rais e tha t Party' s annua l calculate dleve l o f consuntptio n o f

th e controlle d substance s abov e 0. 5 kilogram s pe r capita

. "" " 7

. Ass y transfe r

o f productio n pursuan t t o paragrap h5 o r

an y additio n o f productio n pursuan t

t o paragrap h8 shal l b e notice dt o th e secretariat , n o late r tha n th s tim e o f

th e transfe r

o r addition

. 8

. (a j An y Partie s whic har e Membe r State s e f aregiona l economi c integratio n organizatio n a s define din

Articl e 1(6 ) o f

th e Conventio n ma y agre e tha t thg y shal l j_Mirt| r

fulfil l thei r obligall&a s respectin g consumptio n unde r wts Articl e provide dtha t thei r tota l combine dcalculate dleve l o f consuntptio n doe s no t

excee dth e level s require db y thi s Article

. (b ) 1% e Partie s t o an y suc hagreemen t shal l infor mth e secsetaria t o f th e term s o f th e agreemen t

befor e th e dat e o f

th e reductio n i n consumptio n wit hwhic h th e agreemen t

i s concerned

. (c ) S»c hagreemen t

wil l becom e operativ e onl y i

f al l Membe r

State s o f th e regiona l economi c integratio n organisatio n an dth | organizatio n concerne dar e Partie s t o th e Protoco l an dha^ e notifie dth e secretaria t o f thei r manner : of

implementation

. 9

. (a ) Base do n th e assessment s mad e pursuan t t o Articl e 6 , th e Partie s ma y decid e whether : (i ) adjustment s t o th e ozon e depletin g potential s specifie di n Anne x A shoul d b e mad e and , i

f so , wha t th e adjustment s shoul dbe ; an d (ii ) furthe r

adjustment s an dreduction s o f productio n o r

consumptio n o f

th e controlle dsubstance s fro m198 6 level s shoul db e undertake n and , i f so , wha t th e scope , amoun t

an dtiming o f

an y suc hadjustment s an dreduction s shoul d be

. (b ) Proposal s fo r

suc hadjustment s shal l b e communicate dt o th e Partie s b y th e secretaria t

a t leas t si x month s befor e Hi e meetin g o f

th e Partie s a t whic hfeey ar e propose dfo r adoption

. (c ) I n takin g suc hdecisions , th e Partie s shal l mak e ever y effor t t o reac h agreemen t

b y consensus
. If

al l effort s a t consensu s hav e bee aexhausted , an dn o agreemen t

reached , suc hdecision s shall , a s alast resort , b e adopte db y atwo

third s aajorit y vot e of

th e Partie s presen t an dvotin g representin g a t leas t fift y pe r cen t o f th e total consumptio n o f th e controlle dsubstance s o f th e Parties

. (d ) Tb e decisions , whic hshal l b e bindin g o n al l Parties , shal l forthwit hb e communicate dt o th e Partie s b y th e Depositary

. Unles s otherwis e provide d i n th e decisions , the y shal l ente r int o forc e o n th e expir y o f si x month s fro m th e dat e o f

th e circulatio n o f

th e communicatio n b y th e Depositary

. 10

. (a ) Base do n th e assessment s mad e pursuan t

t o Articl e 6 o f

thi s Protoco l an di n accordanc e wit hth e procedur e se t

ou t i n Articl e 9 o f

th e Convention , th e Partie s ma y decide : (i ) Whethe r

an y substances , an di f s o which , shoul db e adde dt o o r remove d fro man y anne x t o thi s Protocol ; an d (ii ) Th e meehanism , scope , an dtiming of th e contro l measure s tha t shoul d appl y t o thos e substances ; (b ) An y suc hdecisio n shal l becom e effective , provide dtha t i t ha s bee n accepte db y atwo-third y majorit y vot e o f th e Partie s presen t

an dvoting

. 11

. Notwithstandin g th e provision s containe di n thi s Article , Partie s ma y tak e mor e stringen t

measure s tha n thos e require db y thi s Article

. Article 3: Calculation of Control Levels Fo r th e purpose s o f

Article s 2 an d5 , eac hPart y shall , fo r

eac hGrou p o f substance s i n Anne x A , determin e it s calculate dlevel s of

: (a ) Productio n by : (i ) Multiplyin g it s annua l productio n o f eac hcontrolle dsubstanc e b y th e ozon e depletin g potentia l specifie di n respec t o f i t i n Anne x A ; an d (ii ) Addin g together , fo r eac hsuc h Group , th e resultin g figures; (b ) Import s an dexports , respectively , b y following , mutatis mutandis, th e procedur e se t

ou t i n subparagrap h(a) ; an d (c ) Consumptio n b y addin g togethe r it s calculate dlevel s o f

productio n an d import s an dsubtractin g it s calculate d leve l o f export s a s determine di n accordanc e wit hsubparagraph s (a ) an d (b)

. However , beginnin g o n 1 Januar y 1993 , an y expor t

o f controlle d substance s t o non-Partie s shal l no t b e subtracte di n calculatin g th e consumptio n leve l o f

th e exportin g Party

. Article 4: Control

of Trade With NonParties 1

. Withi n on e yea r

o f th e entr y int o forc e of thi s Protocol , eac hPart y shal l ba n th e impor t

o f controlle dsubstance s fro man y Stat e no t

part y t o thi s Protocol

. 2

. Beginnin g o n 1 Januar y 1993 , n o Part y operatin g unde r

paragrap h1 o f Articl e 5 ma y expor t

an y controlle d substanc e t o an y Stat e no t part y t o thi s Protocol

. 3

. Withi n thre e year s o f th e dat e of

th e entr y int o forc e o f

thi s Protocol , th e Partie s shall , followin g th e procedure s i n Articl e 1 0 o f

th e Convention , elaborat e i n a n anne x alis t

o f product s containin g controlle dsubstances

. Partie s tha t hav eP.3 4

no t objecte dt o th e anne x i n accordanc e wit hthos e procedure s shal l ban , withi n on e yea r o f th e anne x havin g becom e - effective , th e impor t

.of thos e product s fro man y Stat e ho t

part y t o thi s Protocol

. 4

. Withi n five year s o f

th e entr y int o forc e o f thi s Protocol , th e Partie s shal l determin e th e feasibilit y o f bannin g o r restricting , fro mState s no t part y t o thi s
. Protocol , th e impor t

o f product s produce dwith , bu t

no t containing , controlle dsubstances

. If determine d feasible , th e Partie s shall , followin g th e procedure s i n Articl e 1 0 o f th e Convention , elaborat e i n a n anne x alis t o f suc hproducts

. Partie s tha t hav e no t objecte dt o i t

i n accordanc e wit hthos e procedure s shal l ba n o r restrict , withi n on e yea r o f th e anne x havin g becom e effective , th e impor t

o f thos e product s fro man y Stat e no t

part y t o thi s Protocol

. 5

. Eac hPart y shal l discourag e th e export , t o an y Stat e no t part y t o thi s Protocol , o f

technolog y fo r

producin g an dfo r utilizin g controlle dsubstances

. 6

. Eac hPart y shal l refrai n fro m providin g ne w subsidies , aid , credits , guarantee s o r

insuranc e programme s fo r th e expor t

t o State s no t

part y t o thi s Protoco l o f

products , equipment , plant s - o r technolog y tha t

woul dfacilitat e th e productio n o f

controlle dsubstances

. 7

. Paragraph s 5 an d6 shal l no t appl y t o products , equipment , plant s o r technolog y tha t

improv e th e containment , recovery , recyclin g o r destructio n o f

controlle dsubstances , promot e th e developmen t o f alternativ e substances , o r

otherwis e contribut e t o th e reductio n o f

emission s o f

controlle d substances

. 8

. Notwithstandin g th e provision s o f thi s Article , import s referre dt o i n paragraph s 1 , 3 an d4 ma y b e permitte d fro man y Stat e no t

part y t o thi s Protoco l if tha t Stat e i s determined , b y ameetin g o f th e Parties , t o b e i n ful l complianc e wit hArticl e 2 an dthi s Article , an dha s submitte ddat at o tha t

effec t a s specifie d i n Articl e 7 , Article 5: Special

Situation of Developing Countries 1

. An y Part y tha t

i s adevelopin g countr y an dwhos e annua l calculate d leve l o f consumptio n o f

th e controlle d substance s i s les s tha n 0. 3 kilogram s pe r capit ao n th e dat e o f

th e entr y int o forc e o f th e Protoco l fo r

it , o r an y tim e thereafte r

withi n te n year s o f

th e dat e o f entr y int o forc e o f

th e Protoco l shall , i n orde r t o mee t it s basi c domesti c needs , b e entitle dt o dela y it s complianc e wit h th e contro l measure s se t ou t i n paragraph s 1 t o 4 o f

Articl e 2 b y te n year s afte r

tha t specifie di n thos e paragraphs

. However , suc hPart y shal l no t excee da n annua l calculate dleve l o f consumptio n o f

0. 3 kilogram s pe r

capita

. An y suc hPart y shal l b e entitle dt o us e

eithe r th e averag e o f

it s annua l calculate dleve l o f

consumptio n fo r

th e perio d199 5 t o 199 7 inclusiv e o r a calculate dleve l o f

consumptio n o f

0. 3 kilogram s pe r

capita , whicheve r

i s th e lower , a s th e basi s fo r

its-complianc e wit hth e contro l measures , 2

. Th e Partie s undertak e t o facilitat e acces s t o environmentall y safe alternativ e substance s an dtechnolog y fo r Partie s tha t

ar e developin g countrie s an dassis t

the mt o mak e expeditiou s us e o f suc halternatives

. 3

. Th e Partie s undertak e t o facilitat e bilaterall y o r

multilaterall y th e provisio n o f subsidies , aid , credits , guarantee s o r insuranc e programme s t o Partie s tha t ar e developin g countrie s fo r th e us e o f alternativ e technolog y an dfo r substitut e products

. Article 6: Assessment

and Review of Control Measures Beginnin g i n 1990 , an da t leas t ever y fou r year s thereafter , th e Partie s shal l asses s th e contro l measure s provide d fo r i n Articl e 2 o n th e basi s o f availabl e scientific , environmental , technica l an d economi c information

. A t leas t on e yea r befor e eac hassessment , th e Partie s shal l conven e appropriat e panel s o f expert s qualifie di n th e field s mentione d an ddetermin e th e compositio n an d term s o f referenc e o f

an y suc hpanels

. Withi n on e yea r

o f bein g convened , th e panel s wil l repor t

thei r conclusions , throug hth e secretariat , t o th e Parties

. Article 7: Reporting of Data 1

. Eac hPart y shal l provid e t o th e secretariat , withi n thre e month s o f becomin g aParty , statistica l dat ao n it s production , import s an dexport s o f eac h o f th e controlle dsubstance s fo r th e yea r 1986 , o r th e bes t possibl e estimate s o f suc hdat awher e actua l dat aar e no t available

. 2

. Eac hPart y shal l provid e statistica l dat at o th e secretaria t

o n it s annua l productio n (wit hseparat e dat ao n amount s destroye db y technologie s t o b e approve db y th e Parties) , imports , an dexport s t o Partie s an dnon-Parties , respectively , o f

suc hsubstance s fo r

th e yea r durin g whic hi t

become s aPart y an dfo r eac hyea r

thereafter

. I t

shal l forwar dth e dat an o late r tha n nin e month s afte r

th e en do f

th e yea r t o whic hth e dat arelate

. Article 8: Non-Compliance Th e Parties , a t

thei r firs t meeting , shal l conside r

an dapprov e procedure s an dinstitutiona l mechanism s fo r determinin g non-complianc e wit hth e provision s o f

thi s Protoco l an dfo r treatmen t

of Partie s foun dt o b e i n non
compliance

. Article 9: Research, Development, Public Awareness and

Exchange of Information .v

M

.. . 1

. Th e Partie s shal l co-operate , consisten t

wit hthei r

nationa l laws , regulation s an dpractice s an dtakin g int o accoun t

i n particula r

th e need s o f developin g countries , i n promoting , directl y o r

throug hcompeten t internationa l bodies , research , developmen t

an dexchang e o f informatio n on

T (a ) Bes t technologie s fo r

improvin g th e containment , recovery , recyclin g o r

, destructio n o f

Controlle dsubstance s o r otherwis e reducin g thei r emissions ; (b ) Possible , alternative s t o controlle d substances , t o product s containing ' suc h substances , an dt o product s

~ manufacture dwit hthem ; an d (c ) Cost s an dbenefit s o f relevan t contro l strategies

. ' 2

. Th e Parties , individually , jointl y o r throug hcompeten t

internationa l bodies , shal l co-operat e i n promotin g publi c awarenes s o f

th e environmenta l effect s o f th e emission s o f

controlle d substance s an dothe r

substance s tha t deplet e th e ozon e layer

. 3

. Withi n tw o year s o f

th e entr y int o forc e o f thi s Protoco l an dever y tw o year s thereafter , eac hPart y shal l submi t t o th e secretaria t

asummar y d f

th e activitie s i t

ha s conducte dpursuan t t o thi s Article

. Article 10: Technical

Assistance 1

. Th e Partie s shall , i n th e contex t o f th e provision s o f

Articl e 4 o f

th e Convention , an dtakin g int o accoun t i n particula r

th e need s o f

developin g countries , co-operat e i n promotin g technica l assistanc e t o facilitat e participatio n i n an dimplementatio n of thi s Protocol

. 2

. An y Part y o r

Signator y t o thi s Protoco l ma y submi t

areques t

t o th e secretaria t

fo r technica l assistanc e fo r th e purpose s o f

implementin g o r participatin g i n th e Protocol

. 3

. Th e Parties , a t

thei r first meeting , shal l begi n deliberation s o n th e mean s o f fulfillin g th e obligation s se t ou t i n Articl e 9 , an dparagraph s 1 an d2 o f thi s Article , includin g th e preparatio n of workplans

. Suc hworkplan s shal l pa y specia l attentio n t o th e need s an d circumstance s o f

th e developin g countries

. State s an dregiona l economi c integratio n organization s no t part y t o th e Protoco l shoul db e encourage dt o participat e i n activitie s specifie di n suc h workplans

. Article 11: Meetings of the Parties 1

. Th e Partie s shal l hol dmeeting s a t regula r intervals

. Th e secretaria t shal l conven e th e firs t

meetin g o f

th e Partie sI I fil l T

4751 8 Federa l Registe r / Vo i 52 , No » 23 9 /

Moaday , Decembe r 14 , 198 7 /

Propose dRule s

no t late r tha n on e yea r

afte r th e dat e o f th e entr y int o forc e o f

thi s Protoco l an d i n conjunctio n wit hameetin g o f th e Conferenc e o f

th e Partie s t o tiae Convention , if

ameetin g o f

th e latte r

i s schedule dwithi n tha t

period

. 2

. Subsequen t

ordinar y meeting s o f th e Partie s shal l b e held , unles s th e Partie s otherwis e decide , i n conjunctio n wit hmeeting s o f

th e Conferenc e o f

th e Partie s t o th e Convention

. Extraordinar y meeting s o f

th e Partie s shal l b e hel da t suc hothe r

time s a s ma y b e deeme d necessar y b y ameetin g o f th e Parties , o r a t th e writte n reques t

o f an y Party , provide dthat , withi n si x month s o f suc hareques t

bein g communicate dt o the mb y th e secretariat , i t i s supporte d b y a t leas t on e thir dof

th e Parties

. 3

. Th e Parties , a t

thei r first meeting , shall : (a ) Adop t

b y consensu s rule s o f procedur e fo r

thei r meetings ; (b ) Adop t

b y consensu s th e financia l rule s referre dt o i n paragrap h2 o f Articl e 13 ; (c ) Establis hth e panel s an ddetermin e th e term s o f

referenc e referre dt o i n Articl e 6 ; (d ) Conside r

an dapprov e th e procedure s an dinstitutiona l mechanism s specifie di n Articl e 8 ; an d (e ) Begi n preparatio n o f workplan s pursuan t t o paragrap h3 o f

Articl e 10

. 4

. Th e function s o f

th e meeting s o f

th e Partie s shal l b e to : (a ) Revie w th e implementatio n o f thi s Protocol ; (b ) Decid e o n an y adjustment s o r reduction s referre dt o i n paragrap h9 o f Articl e 2 ; (c ) Decid e o n an y additio n to , insertio n i n o r

remova l fro man y anne x o f substance s an do n relate dcontro l measure s i n accordanc e wit hparagrap h 1 0 o f Articl e 2 ; (d ) Establish , wher e necessary , guideline s o r

procedure s fo r

reportin g o f informatio n a s provide dfo r i n Articl e 7 an dparagrap h3 o f

Articl e 9 ; (e ) Revie w request s fo r technica l assistanc e submitte dpursuan t t o paragrap h2 o f

Articl e 10 ; (f ) Revie w report s prepare db y th e secretaria t

pursuan t

t o subparagrap h(c ) o f Articl e 12 ; (g ) Assess , i n accordanc e wit hArticl e 6 , th e contro l measure s provide dfo r i n Articl e 2 ; (h ) Conside r

an dadopt , a s required , proposal s fo r

amendmen t

o f thi s Protoco l o r

an y anne x an dfo r

an y ne w annex ; (i ) Conside r

an dadop t

th e budge t

fo r implementin g thi s Protocol ; an d (j ) Conside r

an dundertak e an y additiona l actio n tha t

ma y b e require d fo r th e achievemen t

o f th e purpose s o f thi s Protocol

. 5

. Trf e Unite dNations , it s specialize d agencie s an dth e Internationa l Atomi c EnergjaAgency , a s wel l a s an y Stat e no t part y tf e thi s Protocol , ma y b e represente da t

meeting s o f

th e Partie s a s observfss

. An y 'tedf-o r agency , whethe r natioa.f l o r in'tei#ia*i|>nal , governmenta l o r nongovernmental , qualifie di n field s relatin g t o th e pfioteftio n o f th e ozon e layer-uihie hha s inf#me dth e secretaria t o f It s ¥#s_ ht o b e repjesente da t

a meetin g o f

tiie Partie s a s a n observe r ma y be!admitte dunles s a t leas t on e thir do f tiie Partie s gjpesent

object

. Th e admissio n an dparticipatio n o f observer s shal l fee sfbjec t t o th e rule s o f procedur e adopte d% th e Parties

. Article 12: Secretariat Fo r ti e purpose s of

f thi s Protocol , th e secretaria t

shall : (a ) Arrang e fo r

an dservic e meeting s o f th e Partie s a s provide dfo r i n Articl e 11 ; (b ) Receiv e an dmak e available , upo n requesfb y aParty , dfataprovide d pursuan t t o Articl e 7 ; (c ) P^par e an ddistribut e regularl y t o th e Partie s report s base do n informatio n receive! ! pursuan t

to Article s 7 an d9 ; (d ) Notif y tiie Partie s o f

an y reques t fo r tech_j»ica

l assistanc e received pursuan t t o Articl e M

s o a s t o facilitat e th e provisio n o f

suc hassistance ; (e ) Eacourag e aoa|Partie s t o atten d th e meeting s o f

th e Kartie s a s observer s an dt o se t

i n accordanc e wit hth e provision s o f

thi s Protocol ; (f ) Provide , a s appropriate , th e informatio n an drequest s referre dt o i n subparagraph s (e ) aif

d(d ) t o suc hnon
part y observers ; and ; (g ) Perfor msuc ho#ie r

function s fo r th e achievemen t

o f th e purpose s o f

thi s Protoco l a s ma y b e assigne dt o i t b y th e Parties

. Article 13: Financial

Provisions 1

. The/fund s require dfo r th e operatio n o f thi s protocol , mcludin g thos e fo r th e functionin g o f

th e secretaria t

relate dt o thi s Protocol , shaf

l b e charge d exclusivel y agains t

contribution s fro m th e Partes

. 2

. Th e Parties , a t

thei r firs t meeting , shal l adkp t

b y consensu s financia l rule s fo r th e operatio n o f

tins Protocol

. Article 14: Relationship of This Protocol to the Convention Excep t a s otherwis e provide di n thi s Protocol , th e provision s o f th e Conventio n relatin g t o it s protocol s shal l appl y t o thi s Protoco l Article 15: Signature Thi s Protoco l sfeal l b e ope n fo r signatur e b y State s an db y regiona l economi c integratio n organization s i n Montrea l o n 1 6 Septembe r 1987 , i n Ottaw afro m1 7 Septembe r 198 7 t o 1 6 Januar y 1988 , an da t

Unite dNation s Headquarter s i n Ne w Yor k fro m1 7 Januar y 198 8 t o 1 5 Septembe r 1988

. Article 16: Entry Into Force l.Thi s Protoco l shal l ente r int o forc e o h1 Januar y 1989 , provide dtha t a t leas t eleve n instrument s o f

ratification , acceptance , approva l o f th e Protoco l o r accessio n theret o hav e bee n deposite d b y State s o r

regiona l economi c integratio n organization s representin g a t leas t two-third s o f

198 6 estimate dgloba l consumptio n o f

th e controlle d substances , an dth e provision s o f paragrap h1 o f

Articl e 1 7 o f

th e Conventio n hav e bee n fulfilled

. I n th e even t tha t thes e condition s hav e no t bee n fulfille db y tha t

date , th e Protoco l shal l ente r

int o forc e o n th e ninetiet h da y followin g th e dat e o n whic hth e condition s hav e bee n fulfilled

. 2

. Fo r th e purpose s o f

paragrap h1 , an y suc hinstrumen t

deposite db y a regiona l economi c integratio n organizatio n shal l no t

b e counte da s additiona l t o thos e deposite db y membe r State s o f

suc horganization

. 3

. Afte r th e entr y int o forc e o f thi s Protocol , an y Stat e o r

regional economi c integratio n organizatio n shal l becom e a Part y t o i t

o n th e ninetiet hda y followin g th e dat e o f

deposi t o f it s instrumen t

o f ratification , acceptance , approva l o r accession

. Article 17: Parties Joining After Entry Into Force Subjec t t o Articl e 5 , an y Stat e o r regiona l economi c integratio n organizatio n whic hbecome s aPart y t o thi s Protoco l afte r

th e dat e o f

it s entr y int o force , shal l fulfi l forthwit hth e su m o f th e obligation s unde r

Articl e 2 , a s wel l a s unde r

Articl e 4 , tha t

appl y a t tha t dat e t o th e State s an dregiona l economi c integratio n organization s tha t becam e Partie s o n th e dat e th e Protoco l entere dint o force

. Article 18: Reservations N o reservations ma y b e mad e t o thi s Protocol

. Article 19: Withdrawal Fo r th e purpose s o f

thi s Protocol , th e provision s o f

Articl e 1 9 o f

th e Conventio n relating t o withdrawa l shal l apply , excep t

wit hrespect

t o Partie s referre dt o i n paragrap h1 o f Articl e 5

. An y suc hPart y ma y withdra w fro mthi s Protoco l b y givin g writte n notificatio n t o th e Depositar y a t

an y tim e afte r

fou r year s o f assumin g th e obligation s specifie di n paragraph s 1 t o 4 o f Articl e 2

. An y suc hwithdrawa l shal l tak e effec tP.3 6



### Federa l Register/

Vol

. 52 , No

. 23 9 /

Monday , Decembe r

14 , 1987 /

Propose dRule s 4751 9

upo n expir y o f

on e yea r

afte r th e dat e o f it s receip t

b y th e Depositary , o r

o n suc h late r dat e a s ma y b e specifie di n th e notificatio n o f

th e withdrawal

. Article 20: Authentic Texts Th e origina l o f

thi s Protocol , o f

whic h th e Arabi c Chinese , English , French , Russia n an dSpanis htext s ar e equall y authentic , shal l b e deposite dwit hth e Secretary-Genera l o f

th e Unite d Nations

. I n witnes s whereo f

th e undersigned , bein g dul y authorize dt o tha t effect , hav e signe dthi s protocol

. Don e a t Montrea l thi s sixteent hda y o f September , On e Thousan dNin e Hundre dan dEight y Seven

. ANNE X A.—CONTROLLE D SUBSTANCE S

Grou p

Grou p 1 :

Grou p II : Substanc e

CFCf e (CFC-11 ) „ . CF,Cl2 2 (CFC-12)...

. CjF 3 C b (CFC-113)..

. G.F«Cl2(CFC-114)..

. CjF s a (CFC-115)...

. CF 2 BrC I (halon

1211)

. CF 3F3r(halon-1301).

. C2F.Br.

. (halon

2402)

. Ozon e

depletin g potential '

1. 0 1. 0 0. 8 1. 0 0- 6 3. 0 10. 0 

### ( 2 

### )

1 Thes e ozon e depletin g potential s ar e esti

mate s base d o n existin g knowledg e an d wil l b e reviewe d an d revise d periodically

. 2 T o b e determined

. Fo r th e reasons se t

ou t i n th e preamble , Par t

8 2 o f Titl e 4 0 o f

th e Cod e o f Federa l Regulation s i s propose da 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 U.S.C

. 7457(b)

. 2

. Par t 8 2 i s amende db y addin g th e followin g § § 82. 1 throug h82.1 4 an d appendice s A throug hD t o rea da s follows : 

### PAR T 82—PROTECTIO

N O F 

### STRATOSPHERI C OZON E Sec

. 82. 1 Purpos e an dscope
. 82. 2 Effective date

. 82. 3 Definitions

. 82. 4 Prohibitions

. 82. 5 Apportionmen t

o f baselin e productio n rights

. 82. 6 Apportionmen t

o f baselin e consumptio n rights

. 82. 7 Gran t

an dphase dreductio n o

f baselin e productio n an dconsumptio n right s fo r grou p I controlle dsubstances

. Set
. 82. 8 Gran t

an dfreeze o

f baselin e productio n an dconsumptio n rights fo r group I I controlle dsubstances

. 82. 9

. Allowanc e fo

r productio n rights in additio n t o baselin e productio n rights. 82.1 0 Allowanc e fo

r consumptio n rights i n additio n t o baselin e consumptio n rights

. 82.1 1 Export s t o parties

. 82.1 2 Transfer s o

f productio n an d consumptio n rights

. 82.1 3 Recordkeepin g an dreportin g requirements

. 82.1 4 Payment

o f fees

. Appendi x A t o Part

82—Controlle d substance s an dozon e depletio n weights

. Appendi x B t o Part

82—Partie s t o th e Montrea l Protocol

. Appendi x C t o Part

82—Nation s complyin g with, , but no t party to , th e protocol

. Appendi x D t o Part

82—Twenty-five

kilotonn e parties

. . - ' Authority : 4

2 U.S.C

. 7457(b)

. §82. 1 Purpos e an d scope . (a ) Th e purpos e o f

thes e regulation s i s t o implemen t

th e Montreal

Protocol

on Substances that

Deplete the Ozone Layer unde r authorit y provide db y sectio n 15 7 o f

th e Clea n Ai r

Act

. Th e Montrea l Protoco l requires eac hnatio n tha t become s aPart y t o th e Protoco l t o limi t it s tota l productio n an dit s consumptio n (define da s productio n plu s import s minu s exports ) o f certai n ozone
depletin g substance s accordin g t o a specifie dschedule

. Th e Protoco l als o require s Partie s t o impos e certai n restriction s o n trad e i n ozone-depletin g substance s wit hnonparties

. (b ) Thi s rul e applie s t o an y individual , corporate , o r

governmenta l entit y tha t produces , imports , o r

export s controlle d substances

. §82. 2 Effectiv e date

. Th e regulation s unde r

thi s Par t wil l tak e effec t

whe n th e Montrea l Protoco l enter s int o force

. Th e Montrea l Protoco l wil l ente r

int o forc e o n Januar y 1,1989 , provide dtha t

a t leas t 1 1 instrument s o f ratification , acceptance , approva l o f th e Protoco l o r

accessio n theret o hav e bee n deposite db y State s o r

regiona l economi c integratio n organization s representin g a t

leas t two-third s o f

198 6 estimate dgloba l consumptio n o f th e controlle dsubstances , an dprovide dtha t th e Vienn aConventio n fo r th e Protectio n o f

th e Ozon e Laye r

ha s entere dint o force

. If

thes e condition s hav e no t bee n fulfille db y Januar y 1 , 1989 , th e Protoco l wil l ente r int o forc e o n th e ninetiet hda y followin g th e dat e o n whic hth e condition s hav e bee n fulfilled

. § 82. 3 Definitions

. A s use di n thi s Part , th e term : (a ) "Administrator " mean s th e Administrato r

o f th e Environmenta l Protectio n Agenc y o r hi s authorize d representative

. (b ) "Baselin e consumptio n rights " mean s th e consumptio n right s apportione dunde r

Sec ; 82.6

. (c ) "Baselin e productio n rights " mean s th e productio n right s apportione dunde r Sec

. 82.5

. (d ) "Calculate dlevel " mean s th e leve l o f production , export s o r import s o f controlle dsubstance s determine dfo r eac hGrou p o f

controlle dsubstance s by : (1 ) Multiplyin g th e amoun t (i n kilograms ) o f

production , export s o r import s o f

eac hcontrolle dsubstanc e b y tha t substance' s ozon e depletio n weigh t liste di n Appendi x A t o thi s Part ; an d (2 ) Addin g togethe r

th e resultin g product s fo r

th e controlle dsubstance s withi n eac hGroup

. (e ) "Consumptio n rights" mean s th e ; privilege s grante db y thi s Par t t o produc e an dimpor t

calculate dlevel s o f controlle dsubstances ; however , consumptio n right s ma y b e use dt o produc e controlle dsubstance s onl y i n conjunctio n wit hproductio n rights

. A person' s consumptio n rights ar e th e tota l o f th e right s h e obtain s unde r Sees

. 82. 7 (baselin e rights fo r

Grou p I controlle d substances) , 82. 8 (baselin e rights fo r Grou p I I controlle dsubstances) , an d 82.1 0 (additiona l consumptio n rights upo n proo f

o f export s o f

controlle d substances) , a s ma y b e modifie dunde r Sec

. 82.1 2 (transfe r

o f rights). (f ) "Contro l periods " mean s thos e period s durin g whic hth e prohibition s unde r Sec

. 82. 4 apply

. Thos e period s are : (1 ) Fo r Grou p I controlle dsubstances : [reserved ] (2 ) Fo r Grou p I I controlle dsubstances : [reserved ] (g ) "Controlle dsubstance " mean s an y substanc e liste di n Appendi x A t o thi s Part , whethe r

existin g alon e o r

i n a mixture , bu t

excludin g an y suc h substanc e o r

mixtur e tha t

i s i n a manufacture dproduc t

othe r tha n a containe r

use dfo r th e transportatio n o r storag e o f

th e substanc e listed

. (h ) "Export " mean s th e transpor t o f controlle dsubstance s fro mwithi n th e Unite dState s o r

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

. (i ) "Facility " mean s an y proces s equipmen t

(e.g. , reactor , distillatio n column ) t o conver t

ra w material s o r feedstoc k

chemical s int o controlle d substances

. (j ) "Import " mean s th e transpor t o f controlle dsubstance s fro moutsid e th e Unite dState s o r

it s territorie s t o person s withi n th e Unite dState s o r it s territories

. (k) "Montrea l Protocol " mean s th e Montreal Protocol

on Substances thatP.3 7



### 4752 0 Federa l Registe r / Vol

. 52 , No

. $3 9 /

Mondjay , Decembe r

14 , 198 7 /

Propose dRule s Deplete the Ozone Layer

whic hwa s adopte do n Septembe r

16,1987 , in Montreal , Canada

. (1) "Nation s complyin g with , bu t no t joining , th e Protocol " mean s an y natio n liste din Appendi x C to thi s Part

. (m ) "Party " means an y natio n tha t i s a part y t o th e Montrea l Protoco l an dliste d i n Appendi x B t o thi s Part

. (n) "Person " means an y individua l o r legal entity , includin g a n individual , corporation , partnership , association , state , municipality , politica l subdivisio n o f astate , Indian tribe , an dan y agency , department , or

instrumentality o

f th e Unite dState s an dan y officer , agent , o r employe e thereof

. (o ) "Plant " mean s on e o r

more facilitie s a t

th e sam e locatio n owne db y o r unde r commo n contro l o

f th e sam e person
. (p ) "Potentia l productio n rights" mean s th e productio n right s obtaine d unde r Sec

. 82. 9 (a) an d(b)

. (q) "Production " means th e manufacture o

f acontrolle dsubstanc e fro man y ra w materia l or

feedstoc k chemical ; however , productio n doe s no t includ e th e manufacture o f controlle d substance s tha t

ar e use dan dentirel y consume din th e productio n o f othe r chemicals

. (r ) "Productio n rights" means th e privilege s grante db y thi s Part t o produc e calculate dlevel s o f controlle d substances ; however , productio n rights may b e use dt o produc e controlle d substance s only in conjunctio n with consumptio n rights

. A person' s productio n right s ar e th e tota l o f th e rights h e obtain s unde r

Sees

. 82. 7 (baselin e rights fo

r Group I controlle d substances) , 82. 8 (baselin e right s fo r Group I I controlle dsubstances) , an d 82, 9 (c ) an d(d

) (additiona l productio n rights) , a s may b e modifie dunde r Sec

. 82.1 2 (transfer

o f rights)

. (s ) "Twenty-five-kilotonn e Party " means an y natio n liste din Appendi x D t o thi s Part

. (t ) "Unexpende dconsumptio n rights " mean s consumptio n rights tha t hav e no t bee n used

. At

an y time in an y contro l period , aperson' s unexpende d consumptio n rights ar e th e tota l o f th e calculate dleve l o

f consumptio n right s h e hold s at

tha t time fo r tha t contro l period , minu s th e calculate dleve l o f controlle dsubstance s tha t th e perso n ha s produce dan dimporte din tha t contro l perio dunti l tha t

time

. (u) "Unexpende dproductio n rights " mean s productio n right s tha t hav e no t bee n used

. At

an y time in an y contro l period , aperson' s unexpende d productio n right s ar e th e tota l o f th e calculate dleve l o

f productio n right s h e hold s at tha t time fo r that contro l period , minu s th e calculate dleve l o f controlle d substance s tha t th e perso n ha s produce d in tha t contro l perio dunti l tha t

time

. §82. 4 Prohibitions

. 

### (a) Nojteerson may produc e a t an y time in ap y contro l period , ajcalculate d leve l o f tsontrolle dsubstance s in exces s o f th e amoun t

o f unexpende dproductio n rights hel db y tha t

pefiso n a t tha t time fo r tha t eontro l perio dEver

y kilogra m o f s«c heSoces s constitute s aseparat e violatio n of

thi s regulation

. (b ) No perso n may {produc e o r impor t a t an y tiih e in an y coijtro l period , a calculate dleve l o

f controlle dsubstance s in exces s of

th e amoun t

o f unexpende d consumptio n right s hel db y tha t perso n a t tha t tifee fo r tha t contro l period

. Ever y kifegra mo f sucf e exces s constitute s aseparate-violatio n o f thi s regulation

. (c ) A perso n may ne t

us e hi s productio n right s t o pgoduc e aquantit y o f controlle dsubs*a*ie*e

s unles s h e own s a t th e sap e time consumptio n rights sufficient to cove r that quantit y o

f controlle dsubstances , no r may h e us e hi s consumptio n rights t o produc e a quantit y ®t

contro*ed|substance s unles s h e own s a t

th e same'tfme productio n rights suSficien

t t o cover tha t quantit y o

f controlle dsubstances

. However , consumptio n rights alfn e ar e require dt o impor t controlle dsubstances

. (d ) Beginning oa e yea r

after th e effectiveiferat

e o f thi s Part , n o perso n may impor

t an y qaanfity o

f controlle d substance s fro

mart y natio n no t

liste di n Append s B t o thi s P-asr

t (Partie s t o th e Montrea l Protocol) , unles s tha t natio n i s liste din Appendi x C to thi s Part (NationsComplyiB g wiith

. Bu t Not Party to , tiie Pibtocol)

. Ever

y kilogramo

f controlle dsubstance s importe din contraventio n o

f thi s regulatio n constitute s aseparat e violatio n o f thi s regulation

. § 82. 5 Apportionmen t o f baselin e productio n rights

. 

### Persofl B wh o produce don e or

more controlle dsubstancesii n 198 6 ar e apportione dcalculate s level s o f baselin e (productio n rights a s se t fort hi n paragraph s (a) an d|b | o

f thi s section

. Eac hpesson' s apportionmen t i s equivalen t

t o th e eaicalate dlevel s o f tha t person' s produotfb n o

f Group I an d Group Uncontrolledsubstance s in 1986

. (a ) Fo f Grou p I confrolle dsubstances : Perso n Calculate d leve l

§ 82. 6 Apportionmen t o f baselin e consumptio n rights

. . 

### Person s wh o produced , imported , o r produce dan dimporte don e o r more controlle dsubstance s in 198 6 ar e apportione dcalculate dlevel s o f baselin e consumptio n rights a s se t fort h in paragraph s (a) an d(b ) o f thi s section

. Th e apportionmen t

fo r eac hperso n wh o importe dcontrolle dsubstance s i s equivalen t

t o th e calculate dlevel s o f Group I an dGrou p I

I controlle d substance s tha t

th e perso n importe din 1986

. Th e apportionmen t

fo r eac hperso n wh o produce dcontrolle dsubstance s i s equivalen t

t o th e calculate dlevel s o f Group I an dGroup I

I controlle d substance s tha t

th e perso n produce din 1986 , multiplie db y acorrectio n factor

. Th e genera l equatio n fo

r thecorrectio n facto r i s (th e calculate dleve l o f 198 6 Unite dState s productio n minu s th e calculate dleve l o

f 198 6 Unite dState s exports ) divide db y (th e calculate dleve l o f 198 6 Unite dState s production);.

. correctio n factor s ar e separatel y calculate dfo

r Group I an dGroup I

I controlle dsubstances

. (a) For Group I controlle dsubstances :

Perso n Calculate d leve l



### (b ) For Grou p II controlle dsubstances :

Perso n Calculate d leve l '

Pi»rson Calculate d leve l



### (b) For Group I I controlle dsubstances : § 82. 7 Gran t an d phase d o f baselin e productio n an d consumptio n right s fo r grou p I controlle d substances

. 

### (a ) For eac ho f th e contro l period s tha t end s before July 1,1993 , every perso n i s grante d10

0 percen t o f th e baselin e productio n an dconsumptio n right s apportione dto himunde r Sees

. 82.5(a

) an d82.6(a)

. (b ) For eac ho f th e contro l period s that occur s betwee n Jul

y 1,1993 , an dJune 30 , 1998 , inclusive , every perso n i s grante d 8 0 percen t o f th e baselin e productio n an dconsumptio n right s apportione dto hi munde r

§ § 82.5(a ) an d82.6(a)

. (c ) For eac ho f th e contro l period s tha t begin s after

Jun e 30,1998 , every perso n i s grante d5 0 percen t

o f th e base-lin e productio n an dconsumptio n right s apportione dt o himunde r § § 82.5(a ) an d 82.6(a)

.P.3 8



### Federa l Registe r

/ Vol

. 52 , No

. 23 9 /

Monday , Decembe r

14 , 1987 /

Propose dRule s 4752 1 §82.8 ' .Grand an d (freeze o? baselin e • productio n an d consumptio n right s totgrou p I I controlle d substances

. 

### Fo r eac hof th e contro l period s specifie din § 82.3(f)(2) , ever y perso n i s grante d10

0 percen t o f th e baselin e productio n an dconsumptio n right s apportione dt o himunde r § 82.5(b ) an d 82.6(b)

. §82. 9 Allowanc e torproductio n rights i n additio n to baselin e productio n rights

. 

### (a) Ever y perso n apportione dbaselin e productio n rights fo

r Grou p I controlle d substance s unde r

§ 82.5(a ) i s als o grante dacalculate dleve l of potentia l productio n rights equivalen t to : (1 ) 1 0 percen t

o f hi s apportionmen t unde r § 82.5(a) , fo

r eac hcontro l perio d endin g befor e Jul y 1,1998 ; an d (2) 1 5 percen t

o f hi s apportionmen t unde r § 82.5(a) , fo

r eac hcontro l perio d beginnin g after

Jun e 30,1998

. (b ) Ever y perso n apportione dbaselin e productio n rights fo

r Grou p I I controlle d substance s unde r

§ 82.5(b ) i s als o grante dacalculate dleve l o f potentia l productio n right s equivalen t t o 1 0 percen t o f hi s apportionmen t

Unde r § 82.5(b) , fo

r eac hcontro l yea r

specifie d i n § 82.3(f)(2)

. (c ) A perso n ma

y convert potentia l productio n rights , eithe r

grante dt o him unde r paragraph s (a) an d(b ) o

f thi s sectio n or obtaine db y himunde r

§ 82.1 2 (transfe r o f rights), t o productio n right s onl y t o th e exten t

authorize db y th e Administrato r

unde r § 82.1 1 (Export s to Parties)

. A perso n may obtainauthorizatio n t o convert potentia l productio n right s t o productio n right s eithe r b y requestin g issuanc e o f anotic e unde r § 82.11o r b y completin g atransfe r o f authorizatio n unde r

§ 82.12

. (d) An y perso n ("th e recipient" ) may obtai n productionright s i n accordanc e withth e provision s o

f thi s paragraph

. (1 ) A natio n liste din Appendi x D t o thi s Part (Twenty-five-kilotonn e Parties ) mus t agre e t o transfe r

t o th e recipien t

a t aspecifie dtime some amoun t o f th e calculate dleve l o

f productio n tha t

th e natio n i s permitte dunde r th e Montrea l Protocol

. Th e recipien t

mus t obtai n fro

m th e principa l diplomati c representativ e in tha t nation' s embass y in th e Unite d State s adocumen t

clearl y statin g tha t tha t natio n agree s t o reduc e it s allowabl e calculate dleve l o f productio n b y th e amoun t

bein g transferre dto th e recipien t an dfo r th e contro l period(s ) t o whic hth e transfe r

applies

. (2 ) Th e recipien t

mus t submi t t o th e Administrato r

atransfe r

reques t tha t include s atru e cop y o

f th e documen t require db y paragrap h(d)(1 ) of thi s sectio n an dtha t

set s fort hth e following : (i) Th e identity an daddres s o f th e recipient ; (ii ) Th e identit y o f th e Twerity-five

kilotonn e Party ; (iii ) Th e name s an dtelephon e number s of

contac t person s fo

r th e recipien t an dfo r th e Twenty-five

kilotonn e Party ; f

'''•'•'•-' " (iv) Th e amoun t

o f allowabl e calculate dleve l o

f productio n bein g transferred ; an d (v) Th e contro l period(s ) t o whic hth e transfe r applies

. (3 ) After receivin g atransfe r

reques t tha t meet s th e requirement s o f paragrap h(d)(2) o

f thi s section , th e Administrato r

will : (i) Notif y th e Secretaria t

o f th e Montrea l Protoco l o

f th e transfer ; an d (ii ) Issu e th e recipien t

anotic e grantin g th e recipien t

productio n rights equivalen t

t o th e calculate dleve l o

f productio n transferred , an dspecifyin g th e contro l period s t o whic hth e gran t o f productio n right s applies

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

. § 82.1 0 Allowanc e torconsumptio n right s i n additio n t o baselin e consumptio n rights

. 

### (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 withth e provision s of thi s paragraph , consumptio n right s equivalen t

t o th e calculate dleve l of controlle dsubstance s tha t th e perso n ha s exporte dfro

mth e Unite dState s or it s territories

. Th e consumptio n right s grante dunde r

thi s sectio n wil l b e vali d only durin g th e contro l perio din whic h th e export s arrive di n th e country t o whic hthe y wer e transported

. (1 ) Th e perso n wh o exporte d(th e "exporter" ) th e controlle dsubstance s mus t submi t to th e Administrato r

a reques t fo r consumptio n right s settin g forth , withsupportin g documentation , th e following : (i) Th e identitie s an daddresse s o f th e exporte r an dth e recipien t

o f th e export s (th e "importer") ; (ii ) Th e exporter' s EI

N (Employer Identificatio n Number) ; (iii ) Th e name s an dtelephon e numbe r o f contac t person s fo

r th e exporte r

an d fo r th e importer ; (iv) Th e quantity an dtyp e o f controlle dsubstance s exported ; (v) Th e dat e o n whic han dth e port fro mwhich.th e controlle dsubstance s wer e exporte dfro

mth e Unite dState s or it s territories ; (vi ) Th e country to whic hth e controlle dsubstance s wer e exporte d an dth e dat e o n whic hthe y arrive di n tha t country ; (vii ) Th e sourc e fro

mwhic han dth e dat e o n whic hth e exporte r purchase d th e controlle dsubstances

. (2 ) Th e Administrato r

wil l revie w th e informatio n an ddocumentatio n submitte dunde r paragrap h(a)(1 ) o

f thi s section , ari dissu e th e exporte r anotic e • grantin g th e exporte r

consumptio n rights equivalen t

t o th e calculate dleve l o

f controlle dsubstance s tha t th e document ation , verifie s wer e exported. ' Th e gran t of th e consumptio n rights wil l b e effectiv e o n th e dat e th e notic e i s issued

. (b ) N o consumptio n right s wil l b e grante dafter

Januar j 1,1993 , fo

r export s o f controllecTsubstance s t o an y natio n no t liste di n Appendi x B t o thi s Par t (Partie s to th e Montrea l Protocol)

. §82.1 1 Export s to parties

. 

### I n accordanc e withth e provision s o f thi s section , an y perso n may obtai n authorizatio n t o convert

potentia l productio n right s t o productio n rights b y exportin g controlle dsubstance s t o nation s liste din Appendi x B t o thi s Part (Partie s t o th e Protocol)

. Authorizatio n obtaine dunde r

thi s sectio n wil l b e vali d onl y durin g th e contro l perio din whic h th e controlle dsubstance s arrive di n th e part y t o whic hthe y wer e exported

. A reques t fo r authorizatio n unde r

thi s sectio n wil l b e considere darequest for consumptio n rights unde r § 82.10 , a s well

. (a ) Th e exporte r

mus t submi t t o th e Administrato r

areques t fo r authority to convert potentia l productio n rights t o productio n rights. Tha t

reques t mus t se t forth , withsupportin g documentation , th e following : (1 ) Th e identitie s an daddresse s of th e exporte r an dth e importer ; (2 ) Th e exporter' s EI

N number ; (3 ) Th e name s an dtelephon e number s o f contac t person s fo

r th e exporte r

an d fo r th e importer ; (4) Th e quantit y an dtyp e o f controlle d substance s exported ; (5 ) Th e dat e o n whic han dth e por t fro mwhic hth e controlle dsubstance s wer e exporte dfro

mth e Unite dState s o r it s territories ; (6 ) Th e country t o whic hth e controlle dsubstance s wer e exporte d an dth e dat e o n whic hthe y arrive din tha t country ; an d (7 ) Th e sourc e fro

mwhic han dth e dat e o n whic hth e exporte r purchase d th e controlle dsubstance s exported

. (b ) Th e Administrato r

wil l revie w th e informatio n an ddocumentatio n submitte dunde r

paragrap h(a) o

f thi s section , an dasses s th e quantit y of controlle dsubstance s tha t th e documentatio n verifie s wer e exporte dt o aparty

. Base do n tha t

assessment , th e Administrato r

wil l issu e th e exporte r

a notic e authorizin g th e conversio n of a specifie dquantit y o

f potentia l productio n right s t o productio n right s in aspecifie dcontro l year , an dgrantin gP.3 9

4752 2 Federa l Registe r/ Vol

. 52 , No

. 23 9 /

Monday , Decembe r 14 , 198 7 /

Propose dRule s consumptio n rights i n th e sam e amoun t fo r the , sam e contro l year
. The

. authorizatio n ma y b e use dt o conver t potentia l productio n right s t o productio n right s a s soo n a s th e dat e o n whic hth e notic e i s issued

. §82.1 2 Transfer

s o f Productio n an d Consumptio n Rights

. An y perso n ("transferor" ) ma y transfe r t o an y othe r

perso n ("transferee" ) an y amoun t o f th e transferor' s consumptio n rights , productio n rights, potentia l productio n rights, o r authorizatio n to ' conver t potentia l productio n right s t o productio n rights , a s follows : (a ) Th e transfero r

mus t submi t t o th e Administrato r

atransfe r

reques t settin g fort hth e following : (1 ) Th e identitie s an daddresse s o f th e transfero r

an dth e transferee ; (2 ) Th e name s an dtelephon e number s o f contac t person s fo r

th e transfero r

an d fo r th e transferee ; (3 ) Th e typ e o f

right s (i.e. , consumptio n rights , productio n rights , o r potentia l productio n rights ) o r authorizatio n bein g transfered ; (4 ) Th e Grou p o f

controlle d substance s t o whic hth e right s o r authorizatio n bein g transferre dpertains ; (5 ) Th e amoun t

o f right s o r authorizatio n bein g transferred ; (6 ) Th e contro l period(s ) fo r whic hth e right s o r authorizatio n ar e bein g transferred ; an d (7 ) Th e amoun t

o f unexpende dright s o f th e typ e an dfo r

th e contro l perio d bein g transferre dtha t

th e transfero r hold s a s o f

th e dat e of

th e request

. (b ) I f th e record s maintaine db y th e Administrator , takin g int o accoun t an y previou s trade s an dan y productio n o r import s reporte db y th e transferor , indicat e tha t

th e transfero r

possessed , a s o f th e dat e th e transfe r

reques t wa s processed , unexpende dright s o r authorizatio n sufficien t

t o cove r th e transfe r request , th e Administrato r wil l issu e anotic e o f

transfe r t o th e transfere e an dth e transferor

. Th e notic e wil l specif

y th e transfero r

an d transferee , an dth e amount , typ e an d contro l yea r

o f th e right s o r authorizatio n transferred

. Th e transfe r wil l b e effectiv e o n th e dat e th e notic e of transfe r i s issued

. § 82.1 3 Recordkeepin g an d reportin g requirements

. (a ) Unles s otherwis e specified , th e recordkeepin g an dreportin g requirement s se t

fort hi n thi s sectio n tak e effec t

a s follows : (1 ) Fo r Grou p I controlle dsubstances , beginnin g wit hth e firs t da y o f th e firs t contro l perio dspecifie di n § 82.3(f)(1)

. (2 ) Fo r Grou p I I controlle dsubstances , beginning'wit hth e first da y o f th e first contro l perio dspecifie di n § 82.3(f)(2)

. (b ) Unles s otherwis e specified , reports require db y thi s sectio n must.b e maile d withi n 1 5 day s o f

th e en do f

th e •••- ' applicabl e reportin g perio dt o th e Administrator

. (c ) Record s an dcopie s o f report s require db y thi s sectio n mus t b e retaine dfo r

fou r years
. (d ) I n report s require db y thi s section , quantitie s o f

controlle dsubstance s mus t b e state di n term s o f

kilograms

. (e ) Ever y perso n ("producer" ) wh o wil l produc e controlle dsubstance s durin g acontro l perio dmus t compl y wit hth e followin g recordkeepin g an d reportin g requirements : (1 ) B y th e firs t

da y o f eac hcontro l period , ever y produce r

mus t submi t t o th e Administrato r

apla n estimatin g fo r eac ho f hi s facilitie s th e typ e an d amoun t o f controlle dsubstance s h e wil l produc e an dth e tim e period s durin g whic hth e controlle dsubstance s wil l b e produced

. Th e pla n mus t als o includ e estimate s o f

th e quantitie s o f chlorodifluoromethan e (HCFC-22 ) an d hexafluoroethan e (CFC-116 ) eac ho f thes e facilitie s wil l produc e i n tha t contro l period

. An y chang e i n th e pla n durin g th e contro l perio dmus t b e communicate dt o th e Administrato r n o late r tha n th e mont hfollowin g th e change , a s par t

o f th e monthl y repor t require dunde r

paragrap h(e)(3 ) of

thi s section

. (2 ) Ever y produce r

mus t maintai n th e following : (i ) Dail y record s o f

th e quantit y of eac hof th e controlle dsubstance s produce da t

eac hfacility , includin g controlle dsubstance s produce dfo r feedstoc k

purposes ; (ii ) Dail y record s of

th e quantit y o f HCFC-2 2 an dCFC-11 6 produce da t eac hfacilit y als o producin g controlle d substances ; (iii ) Continuou s record s of th e reactiv e temperatur e an doperatin g pressure s withi n th e primar y reacto r an dinitia l distillatio n colum n durin g th e productio n operation s a t eac hfacility ; an d (iv ) Dail y record s o f

th e quantit y o f th e followin g ra w material s an d feedstoc k

chemical s purchase dfo r an d use da t eac hplant : carbo n tetrachloride , perchloroethylene , chloroform , hydrofluori c acid , hydrochlori c acid , bromine , CFC-113 , HCFC-22 , an dCFC

23

. (v ) Dail y record s of

th e quantit y an d purchase r

of controlle dsubstance s produce da t

eac hplant

. (3 ) Fo r eac hmonth , ever y produce r mus t provid e th e Administrato r wit ha repor t

containin g th e followin g information : (i ) Th e productio n an dsale s i n tha t mont ho f eac hcontrolle dsubstance , specifyin g th e quantit y o f an y controlle d substanc e use dfo r

feedstoc k

purpose s fo r eac hplan t

an dtotale dfo r

al l plant s owne db y th e sam e person ; (ii ) th e quantitie s o f

HCFC-2 2 an d CFC-11 6 produce dtha t mont ha t

th e sam e facilitie s producin g an y o f th e controlle dsubstance s fo r eac hplant;

. (iii ) A descriptio n o f

an y shift s tha t

- . hav e occurre dtha t

mont hi n th e planne d utilizatio n o f

facilitie s a s describe di n th e pla n provide dt o th e Administrato r unde r paragrap h(e)(1 ) o f

thi s section ; (iv ) Th e tota l fo r

tha t mont han dfo r th e control-period-to-dat e o f calculate d level s o f productio n fo r

Grou p I an d Grou p II controlle dsubstance s fo r eac h plant ; (v ) Th e producer' s tota l consumptio n rights , potentia l productio n rights , productio n right s an dauthorizatio n t o conver t potentia l productio n right s t o productio n rights , a s o f th e en do f

tha t month ; an d (vi ) Th e quantit y an dname s an d addresse s o f

th e sourc e o f

recyclable o r recoverabl e material s containin g th e controlle dsubstanc e whic hi s recovere d a t eac hplant

. Fo r

an y perso n wh o fail s t o maintai n th e record s an dreport s require db y thi s paragraph , th e Administrato r

ma y assum e tha t

th e perso n ha s produce da t ful l capacit y durin g th e perio dfo r

whic hrecord s o r report s wer e no t

kept , fo r purpose s o f determinin g whethe r

th e perso n ha s violate dth e prohibition s a t Sec

. 82.4

. (f ) Fo r Grou p I controlle dsubstances , beginnin g wit hth e firs t contro l perio d specifie dunde r

Sec

. 82.3(f)(1) , an dfo r Grou p II controlle dsubstances , beginnin g on e yea r

afte r th e Montrea l Protoco l enter s int o force , an y perso n ("importer" ) wh o import s controlle d substance s durin g acontro l perio dmus t compl y wit hth e followin g recordkeepin g an dreportin g requirements : (1 ) An y importe r

mus t maintai n th e followin g dail y records : (i ) Th e quantit y o f

eac hcontrolle d substanc e imported , eithe r alon e o r i n mixtures ; (ii ) Th e dat e o n whic hth e controlle d substance s wer e imported ; (iii ) Th e por t

o f exi t an dpor t

o f entr y throug hwhic hth e controlle dsubstance s passed ; an d (iv ) Th e date s o n whic han dth e countr y i n whic hth e importe d controlle dsubstance s wer e produced

. (2 ) Fo r eac hmonth , ever y importe r mus t submi t t o th e Administrato r

aP.4 0 

### T

Federa l Registe r

/•Vol. : 52 , No

- 23 9 /Monday , Decembe r 14 , 198 7 /

Propose dRule s 4752 3

report containin g th e followin g information : j ' (i) Th e dail y record s require din paragrap h(g)(1 ) of

thi s sectio n fo

r th e previou s month ; (ii ) Th e tota l fo

r tha t mont han dfo r th e control-peripd-to-dateo f calculate d level s o f import s fo

r Group lan dGroup I I controlle dsubstances ; an d (iii ) Th e importer' s total ] consumptio n right s a t th e en do f tha t month

. (g) Fo r an y export s o

f controlle d substance s no t

reporte dunde r

Sees

. 82.1 0 (additiona l consumptio n rights) or 82.1 1 (Export s t o Parties) , th e perso n ("exporter" ) wh' o exporte dth e controlle dsubstance s mus t submi t t o th e Administrato r

th e followin g informatio n withi n on e mont hof th e otherwis e unreporte dexport s leavin g th e Unite dStates : (1 ) Th e name s an daddresse s o f th e exporte r an dth e recipien t

o f th e exports ; (2 ) Th e exporter' s EI

N number ; (3 } Th e typ e an dquantif

y of controlle d substance s exported ; (4) Th e dat e o n whic han dth e port fro mwhic hth e controlle dsubstance s wer e exporte dfro

mth e Unite dState s or
• it s territories ; (5 ) Th e country to.whic hth e controlle dsubstance s wer e exporte d an dth e dat e o n whic hthe y arrive din tha t country ; an d (6 ) Th e sourc e fro

mwhic han dtha t dat e o n whic hth e exporte r purchase d th e controlle dsubstance s exported

. §82.1 4 Paymen t o f fees

. 

### [Reserved ] Appendi x A t o Part

82—Controlle d Substance s an dOzon e Depletio n Weight s .. . Controlle d substances

Controlle d substances

A

. Grou p I : CFCI3—Trichlorofluormethan e (C f C-11 ) CCI2F2—Dichlorodifluoromethan e (CFC-12 ) CCI2F-CCIF2—Trichlorotrifluorethan e (CFC 113 ) .'

. CF2CI-CCIF2—Diehlorotetrafluoroeihan e (CFC-114 ) Ozon e depletio n weight s CCIF2-CF3—(Mono)chloropentafluoroethan e :

. (CFCr115)... , B

. Grou p II : CF2BrCI—Bromochlorodifiuoromethan e (Halo n 1211 ) '

. CF3Br—Bromotrifluoromethan e (Halo n 1301)...

. C2F4Br2—Oibromotetrafluoroethan e (Halo n 2402 ) , Ozon e dec-lotio n weights

0. 6

3. 0 10. 0 6. 0

1. 0 1. 0
0. 8
1. 0 

### Appendi x B t o "Par

t 82—Partie s t o th e Montrea l Protoco l [Reserved ] Appendi x C t o Part

82—Nation s Complyin g With , Bu t

No t Partie s to , th e Protoco l [Reserved ] Appendi x D t o Part

82—Twenty-Five

Kilotonn e Partie s [Reserved ] [F RDoc . 87-2821 5 File d 12-11-87 ; 8:45 am ]
BILLING COD E 6560-50- M