[Federal Register Volume 60, Number 90 (Wednesday, May 10, 1995)]
[Rules and Regulations]
[Pages 24970-25009]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-10616]



      

[[Page 24969]]

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Part II





Environmental Protection Agency





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40 CFR Part 82



Protection of Stratospheric Ozone: Administrative Changes and Amendment 
to Transhipment Provision in Final Rule to Phase Out Ozone-Depleting 
Chemicals; Final Rule and Proposed Rule

Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules 
and Regulations 
[[Page 24970]] 

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 82

[FRL-5199-1]
RIN 2060-AF80 and AE70


Protection of Stratospheric Ozone: Administrative Changes to 
Final Rule to Phase Out Ozone-Depleting Chemicals

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: With this action, EPA amends the current regulation to phase 
out the production and consumption of most ozone-depleting substances. 
This action clarifies aspects of the regulation as provided under 
section 604 and 606 of the Clean Air Act Amendments of 1990 (CAA). To 
ensure an orderly phaseout of the production and consumption of 
chlorofluorocarbons (CFCs), carbon tetrachloride, methyl chloroform and 
hydrobromofluorocarbons in 1996, and of halons after 1994, this action 
alters the administrative requirements of the regulations so companies 
may continue to produce for special exempted uses. Today's action also 
clarifies administrative procedures to improve the efficiency of 
current reporting requirements and to reduce the burden on the affected 
companies. These actions continue to ensure compliance with Title VI of 
the CAA in a manner consistent with the United States' obligations 
under the Montreal Protocol on Substances that Deplete the Ozone Layer, 
as amended.
    Specifically, EPA changes the requirements for the post-phaseout 
period for transformation and destruction of ozone-depleting 
substances; establishes the framework for the post-phaseout production 
of exempted essential uses; revises the controls for imports of 
controlled substances that are used or recycled; eases the requirements 
for exporting substances to Article 5 countries; changes the allowance 
requirements for exports of ozone-depleting substances; clarifies the 
requirements for heels remaining in containers that are returning to 
the U.S.; provides a period of reconciliation in which allowance 
balances may be adjusted; and simplifies the recordkeeping and 
reporting requirements.
    The changes made in this rule ease the burden on industry, and will 
therefore limit the negative economic impact associated with the 
regulations previously promulgated under Sections 604 and 606, while 
maintaining the environmental benefits of the accelerated phaseout.

DATES: This rule is effective on May 10, 1995. Amendments to the 
requirements specifically addressing 1995 apply to the entire 1995 
control period.

FOR FURTHER INFORMATION CONTACT: The Stratospheric Ozone Protection 
Hotline at 1-800-296-1996, or Tom Land, U.S. Environmental Protection 
Agency, Stratospheric Protection Division, Office of Atmospheric 
Programs, 6205J, 401 M Street, SW., Washington, DC 20460 (202) 233-
9185.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background
II. Administrative Changes in the Stratospheric Protection Program
    A. Program Requirements for Continued Post-Phaseout Production 
and Importation after January 1, 1996
    1. Post-Phaseout Requirements for Transformation and Destruction 
of Controlled Substances
    2. Post-Phaseout Requirements for Essential-Uses
    B. Imports of Used Controlled Substances
    C. Program Adjustments and Clarifications to Become Effective in 
the 1995 Control Period
    1. Changes in Requirements for Export to Article 5 Countries
    2. Administrative Changes to the Consumption Allowance 
Requirements for Exports
    3. Administrative Changes to Production Allowance Requirements 
for Exports that are Transformed or Destroyed
    4. Treatment of Controlled Substances Remaining in Emptied 
Containers, i.e. ``Heels''
    5. Clarification of the Definition of Transhipment
    6. Provision for Account Reconciliation Period through Inter-
Pollutant Transfers
    7. Additional Clarifications
    8. Clarification of Reporting and Recordkeeping Requirements
III. Summary of Supporting Analysis
    A. Executive Order 12866
    B. Regulatory Flexibility Act
    C. Paperwork Reduction Act
    D. Enhancing the Intergovernmental Partnership under Executive 
Order 12875

I. Background

    The current regulatory requirements of the Stratospheric Ozone 
Protection Program that limit production and consumption of ozone-
depleting substances were promulgated by the Environmental Protection 
Agency (EPA) in the Federal Register on December 10, 1993 (58 FR 
65018), and on December 30, 1993 (58 FR 69235). The requirements 
contained in these rules set out an Allowance Program (the Program) 
that was described in the notice of proposed rulemaking (NPRM) 
published in the Federal Register on November 10, 1994 (59 FR 56275). 
The preamble to the November 10, 1994 proposed rulemaking describes the 
history of the Program, the current requirements and the proposed 
amendments.
    The Allowance Program was designed to ensure that the U.S. meets 
its obligations under the Montreal Protocol on Substances that Deplete 
the Ozone Layer, as amended, (the Protocol) and to ensure compliance 
with Title VI of the Clean Air Act Amendments of 1990 (CAA). The 
Protocol and the CAA require the control and phaseout of production and 
consumption of ozone-depleting substances. In the Program, companies 
expend ``allowances'' when they produce or import ozone-depleting 
substances. With certain restrictions, the allowances can be traded 
among companies both domestically and internationally (between 
countries that are Parties to the Protocol). To control production, the 
Agency allocated baseline production allowances to producers of 
specific ozone-depleting chemicals. To control consumption, the Agency 
allocated baseline consumption allowances to producers and importers of 
specific ozone-depleting chemicals. Allowances for class I substances 
are currently provided to companies on an annual basis, except for 
halons whose production was phased out on January 1, 1994. The 
allowances are assigned to companies according to production and 
importation during base years.
    In the context of the Program, the use of the term consumption may 
be misleading. It is not the ``use'' of these substances that is 
controlled through regulation but rather the amount of the substance 
available for U.S. domestic consumption, defined as production plus 
imports minus exports of bulk virgin chemicals. Controlled substances 
produced or imported through the use of allowances prior to 1996 (1994 
for halons) can continue to be used by industry and the public after 
the phaseout.

II. Administrative Changes in the Stratospheric Protection Program

    The administrative changes in today's action modify the current 
regulation to ensure an orderly phaseout in 1996, so that companies may 
continue to produce for specified exempted uses permitted under the 
Protocol and the CAA. In addition, the Agency is seeking to improve the 
efficiency of the requirements and to reduce the burden on the affected 
companies while ensuring continued compliance with Title VI of the CAA 
and the Montreal [[Page 24971]] Protocol. In light of these objectives, 
the Agency is promulgating the following administrative changes to 
improve the Program.
    The NPRM published in the Federal Register on November 10, 1994, 
proposed changes to begin on January 1, 1996 for the post-phaseout 
period and also proposed changes for the 1995 control period.
    Under the current regulation, the phaseout of the production and 
consumption of the class I controlled substances (except Group VI, 
methyl bromide) will be complete by January 1, 1996. A list of the 
specific class I ozone-depleting chemicals in each Group can be found 
in appendices A and F to subpart A. The schedule for the phaseout of 
hydrochlorofluorocarbons was published in the Federal Register on 
December 10, 1993, and is unchanged in this final rule.
    Due to the phaseout, beginning January 1, 1996, production and 
consumption allowances for all class I controlled substances, except 
Group VI, methyl bromide, will no longer be used. Despite the 
discontinuation of such production and consumption allowances for class 
I controlled substances (except methyl bromide), the Agency envisions 
that the manufacture of class I controlled substances may continue 
after January 1, 1996, provided the substances are:
    <bullet> Either transformed or destroyed,
    <bullet> Produced for export to Article 5 countries,
    <bullet> Produced for essential uses as authorized by the Protocol 
and CAA and consistent with essential-use allowances, or
    <bullet> Produced with destruction and transformation credits.
    In addition, EPA envisions that the import of class I controlled 
substances (except methyl bromide) may continue after January 1, 1996, 
without the need for consumption allowances, if the substances are:
    <bullet> Either transformed or destroyed,
    <bullet> Previously used (including recycled or reclaimed),
    <bullet> Imported for essential uses as authorized by the Protocol 
and CAA and consistent with essential-use allowances,
    <bullet> Transhipped through the United States to another Party to 
the Protocol, or
    <bullet> Imported using destruction and transformation credits.
    Through today's final rule the Agency will:
    (1) Maintain a category of Article 5 allowances (previously called 
potential production allowances),
    (2) Create a new category of essential-use allowances, and
    (3) Create narrow procedures for granting destruction and 
transformation credits.
    EPA received twenty-two comments on the proposed rulemaking 
published in the Federal Register on November 10, 1994, as well as 
several additional submissions following the close of the comment 
period. All comments were reviewed and considered. Comments most 
relevant to today's action are responded to in the preamble and 
additional responses to comments are available in the Air Docket No. A-
92-13.

A. Program Requirements for Continued Post-Phaseout Production and 
Importation After January 1, 1996

1. Post-Phaseout Requirements for Transformation and Destruction of 
Controlled Substances
    The following paragraphs discuss requirements for the destruction 
and transformation of controlled substances after the January 1, 1996 
phaseout date. EPA would like to be informed of new technologies for 
destruction of controlled substances that have been developed or are 
being developed since the Parties to the Protocol first approved the 
current list of destruction technologies. EPA would like to anticipate 
the future review of new technologies for destruction by the Parties to 
the Protocol.
    Definition of Emissive Use. In the preamble of the proposal (59 FR 
56278), EPA discussed a definition of ``emissive use'' that the Agency 
decided was unnecessary for today's action and provided no additional 
clarity to the regulation.
    a. Production or Importation of Controlled Substances Explicitly 
for Uses that Result in Transformation or Destruction after January 1, 
1996. In today's action, EPA permits companies to produce or import 
controlled substances if explicitly produced or imported for uses that 
will result in transformation or destruction in the United States or in 
a Party, after January 1, 1996.
    In the 1995 control period, controlled substances may continue to 
be produced explicitly for uses that result in transformation or 
destruction in the U.S. without the expenditure of allowances, as under 
the current regulation. Section C.3., ``Administrative Changes to 
Production Allowance Requirements for Exports that are Transformed or 
Destroyed,'' of this preamble discusses controlled substances produced 
in 1995 explicitly for export that results in transformation or 
destruction.
    Response to Comments: EPA received one comment that did not 
entirely support EPA's proposal to permit a company to produce or 
import after January 1, 1996, if explicitly for transformation or 
destruction. The commenter objected to maintaining procedures, after 
January 1, 1996, for companies that produce or import controlled 
substances explicitly for destruction in the U.S. (59 FR 56278). The 
commenter questioned the need for production, and especially 
importation, of controlled substances for destruction in the United 
States after the 1996 phaseout. This same commenter, however, did 
support the proposal to permit production and importation, after 
January 1, 1996, for transformation in the U.S.
    EPA is permitting production and importation explicitly for 
destruction after January 1, 1996, because industry commonly uses 
carbon tetrachloride and other controlled substances in chemical 
reactions until they lose their effectiveness and must be destroyed. In 
many chemical reactions, carbon tetrachloride is used as a catalyst or 
stabilizer. Once the reaction is complete, the carbon tetrachloride is 
withdrawn from the chemical being produced and used in the reaction of 
the next batch. Through these reactions, carbon tetrachloride loses its 
effectiveness as a catalyst or stabilizer and must eventually be 
destroyed. Many manufacturing processes rely on the unique 
characteristics of carbon tetrachloride, and other controlled 
substances, as catalysts or stabilizers but these chemical eventually 
need to be destroyed. EPA wishes to allow these manufacturing uses of 
controlled substances to continue after January 1, 1996, because they 
are not emissive uses, pose no significant threat to the environment 
and are vital to the U.S. economy.
    EPA received three comments seeking clarification of the 
requirements for production for export resulting in transformation 
after January 1, 1996. The proposal included a discussion, in section 
C.3.d. ``Administrative Changes to Production Allowance Requirements 
for Exports that are Transformed or Destroyed,'' (59 FR 56289) of 
requirements for the 1995 control period. However, the proposal did not 
explicitly define export requirements for the post-phaseout period.
    With this action, EPA permits production of class I controlled 
substances (except methyl bromide) after January 1, 1996, if the 
substance is explicitly produced for export or domestic uses resulting 
in transformation or destruction. As a [[Page 24972]] result, EPA 
requires producers and importers to receive an IRS certification of 
intent to transform or a destruction verification from all second- or 
third-party transformers or destroyers, whether the transformer or 
destroyer is domestic or foreign. Several U.S. companies commented that 
they currently use the IRS certificate of intent to transform in 
transactions with foreign transformers. For the sake of simplicity, 
these commenters suggested that the IRS certificate be required for all 
production and importation explicitly for uses resulting in 
transformation, whether they be foreign or domestic.
    Today's rule maintains the current requirement that producers and 
importers submit to EPA the IRS certificates of intent to transform, or 
the destruction verifications, with the quarterly reports (see Section 
C.7., Recordkeeping and Reporting). In response to comments and to ease 
the reporting burden on industry, EPA permits producers and importers 
to submit a one-time-per-control period IRS certificate for each 
customer. Quarterly reports may reference the original IRS certificate 
submitted for each transformer and simply list the quantity of 
subsequent sales.
    With today's rule, EPA maintains the current requirement published 
in the Federal Register on December 10, 1993, that quantities of class 
II controlled substances transformed or destroyed must be reported on a 
quarterly basis. EPA maintains the requirement to meet U.S. obligations 
under the Protocol to accurately monitor production of class II 
controlled substances.
    b. Production or Importation of Controlled Substances for Emissive 
Uses that are Subsequently Transformed or Destroyed. With today's 
action, EPA eliminates the specific provisions that grant additional 
production and consumption allowances, beginning January 1, 1996, for 
all class I controlled substances, except methyl bromide, produced for 
emissive uses but later transformed or destroyed. After January 1, 
1996, there will no longer be production or consumption allowances for 
class I controlled substances, except methyl bromide. After January 1, 
1996, a producer or importer of methyl bromide who expends production 
or consumption allowances and subsequently transforms or destroys the 
methyl bromide will still be able to petition the Agency for additional 
production and consumption allowances until the phaseout on January 1, 
2001.
    EPA maintains, for the 1995 control period, the provisions allowing 
producers and importers to petition the Agency for production and 
consumption allowances if the controlled substance was produced or 
imported with expended allowances and subsequently transformed or 
destroyed.
    Response to Comments: EPA received no comments regarding the 
proposal to eliminate procedures after January 1, 1996, that grant 
additional production and consumption allowances for class I controlled 
substances that are transformed or destroyed (except methyl bromide) 
(59 FR 56278). After January 1, 1996, additional production and 
consumption allowances may be sought for methyl bromide that is 
transformed or destroyed if it was originally produced with expended 
allowances.
    c. The Post-Phaseout Procedures for Granting Destruction and 
Transformation Credits. In today's action, EPA creates limited 
destruction and transformation credits to be granted after January 1, 
1996, for the destruction or the transformation in the United States of 
class I controlled substances (except methyl bromide) taken from a use 
system in the United States under certain circumstances. Destruction 
and transformation credits can only be obtained by entities whose 
applications are nominated by the U.S. government to the Protocol 
Secretariat for essential-use exemptions. The transformation and 
destruction credits are granted for the calculated amount of controlled 
substance transformed or destroyed minus a 15 percent offset.
    With today's action, an eligible person granted destruction and 
transformation credits by EPA for the destruction or transformation of 
an amount of a controlled substance taken from a U.S. use system may 
use the credits to newly produce or import the class I controlled 
substance for which they were nominated for an essential-use exemption. 
Today's action requires reporting on the source of material imported 
with credits. The reporting requirement is designed to deter abuse of 
credits as a means of illegally importing material as discussed in 
section B., ``Imports of Used Controlled Substances.''
    Response to Comments: EPA received six adverse comments, and three 
supportive comments to the proposal. EPA proposed (59 FR 56279) to 
grant destruction and transformation credits after January 1, 1996 to 
anyone who documents destruction or transformation of class I 
controlled substances (except methyl bromide) taken from a use system 
in the U.S.
    The comments challenging EPA's proposal expressed concern that 
granting destruction and transformation credits which can be used to 
produce or import virgin class I controlled substances (except methyl 
bromide) contradicts EPA's message of phasing out ozone-depleting 
substances and making the transition to alternatives. Four of the 
comments not supporting credits were from industry and the other two 
were from environmental groups.
    The comments challenged the proposed credits as violating U.S. 
obligations under the Protocol because they encourage production and 
importation of class I substances beyond the phaseout dates agreed to 
by Protocol Parties. The commenters challenged EPA's claim that 
environmental benefits would result from a scheme allowing continued 
production and importation beyond the phaseout, even if more than an 
equivalent amount of controlled substance were destroyed or 
transformed. EPA believes the Protocol allows production beyond the 
phaseout if the amount produced is equivalent to the amount destroyed 
by technologies approved by the Parties, as explained in the proposal's 
discussion (59 FR 56280) of the Protocol's definition of production. 
The proposal also discusses the environmental benefits of preventing 
release to the atmosphere of material by encouraging destruction or 
transformation of unwanted material in exchange for the production of 
material that will be used (59 FR 56281).
    A commenter cited Congressional legislative history from the 
drafting of the CAA that was unfavorable regarding destruction. 
Congressional debate included a statement that ``the Protocol's 
exclusion for manufactured substances that are subsequently destroyed 
is too broad and does not include adequate safeguards to preclude 
abuse.'' EPA recognizes the concerns expressed in the legislative 
history for the CAA and intends to offer these credits to a very 
limited universe of people.
    A commenter also pointed out that substances produced or imported 
with credits would be subject to the excise tax, eliminating the 
incentive to destroy or transform a material. A person would be paying 
a double tax. The tax would be paid on the original material and there 
would be a tax on the new material produced or imported with the 
credits. A commenter suggested that a tax credit or tax deduction would 
provide a greater financial incentive than the proposed credits. EPA 
acknowledges concerns about taxes and will therefore only grant credits 
when they are absolutely necessary.
    In response to comments on destruction and transformation credits, 
EPA is significantly limiting the [[Page 24973]] circumstances under 
which a person can obtain credits. With today's action, only a person 
that has exhibited an essential need for controlled substances beyond 
the phaseout date will be able to obtain destruction and transformation 
credits. EPA believes that only a person who has an essential need for 
a controlled substance should be eligible for credits that allow an 
exchange of destroyed or transformed existing material for the 
production or importation of new material.
    EPA today defines a person who has demonstrated the essential need 
for controlled substances beyond the phaseout, and can, therefore, 
obtain credits, as a person whose application was nominated by the U.S. 
government to the Protocol for an essential-use exemption. The 
nomination by the U.S. government defines eligibility for the credits, 
not the acceptance of the nomination by the Parties to the Protocol. 
For example, the U.S. Air Force's Titan Rocket has been nominated by 
the U.S. government for an essential use exemption and is therefore 
eligible for credits. A person who has been nominated to the Protocol 
for an essential-use exemption is eligible to be granted destruction 
and transformation credits after January 1, 1996, upon the destruction 
or transformation of a controlled substance taken from a use system in 
the U.S. Only for the control period(s) for which the U.S. government 
made nominations to the Protocol is a person eligible for the credits. 
If for some reason the nomination is revoked, the person's eligibility 
for credits is also revoked.
    EPA received three comments that suggested a larger offset than the 
15 percent proposed for destruction and transformation credits. The 
commenters challenged the 15 percent as being too small to provide an 
environmental benefit in a system that permits production or 
importation of new controlled substances after the phaseout. All three 
commenters suggested a 50 percent offset to ensure environmental 
benefits from the use of credits in the production or importation of 
new ozone-depleting substances. EPA justified the use of a 15 percent 
offset in the proposal citing environmental benefits (59 FR 56280) and 
basing the offset on current destruction capacity in the U.S (59 FR 
56281). EPA believes that today's action significantly limits the 
universe of people who can obtain credits. The limitation of who can 
obtain credits to those with a critical need, as defined by their 
essential-use nomination to the Protocol, significantly reduces the 
amount of production or importation of new material that will occur 
after the phaseout. EPA anticipates credits will only be sought and 
used in situations when one of the small number of people with critical 
needs encounters unforeseen circumstances or a catastrophic loss of 
material produced with essential-use allowances. With today's action, 
EPA will allocate credits equal to the calculated level of controlled 
substance destroyed or transformed minus the 15 percent offset. The 
destruction must occur in an approved destruction technology. An 
eligible person may request credits equal to 85 percent of the 
calculated level of controlled substance destroyed or transformed.
    EPA believes a person with an essential need for a controlled 
substance, as defined by a U.S. nomination to the Protocol, will view 
today's system of credits as an opportunity to satisfy critical needs, 
especially if material produced with essential-use allowances is lost 
to a catastrophe. EPA views today's action as a method to encourage the 
destruction or transformation of unwanted controlled substances that 
were taken from a use system in the U.S. that might otherwise be 
released to the atmosphere.
    EPA received many comments, from both industry and Federal 
agencies, challenging the use of credits for importing controlled 
substances after the phaseout as yet another opportunity for illegal 
imports. As discussed in the proposal (59 FR 56285), and below in this 
rulemaking, EPA is working to confront the illegal import of controlled 
substances. In 1994, EPA formed an inter-government task force with the 
Internal Revenue Service and the Customs Service to investigate illegal 
imports. An industry coalition formed a special committee to assist 
Federal agencies in investigating illegal imports. The efforts of 
government and industry have focused on the mislabelling of controlled 
substances and the submission of fraudulent documents that allow the 
illegal entry of imported controlled substances into U.S. commerce. In 
commenting on the proposed rule, both government and industry expressed 
concern that the use of credits for imports would be another chance for 
the submission of fraudulent documents. In response to these comments, 
EPA is requiring documentation of the source of imported material as 
required in Sec. 82.13(g)(2), where applicable.
    Clean Air Act Restrictions on the Use of Credits: With today's 
action, EPA limits the total amount of transformation credits and 
destruction credits that can be used in a control period to the 
production caps in the phaseout schedule of section 604 of the CAA, 
outlined in Table I.

       Table I.--Title VI of the Clean Air Act Amendments of 1990       
  [Pre-Accelerated Phaseout Schedule for Production of Ozone-Depleting  
                               Substance]                               
------------------------------------------------------------------------
                                                                 Other  
                                       Carbon       Methyl      class I 
               Date                Tetrachloride  Chloroform  substances
                                     (percent)     (percent)   (percent)
------------------------------------------------------------------------
1996.............................          15            50          40 
1997.............................          15            50          15 
1998.............................          15            50          15 
1999.............................          15            50          15 
2000.............................  .............         20   ..........
2001.............................  .............         20   ..........
------------------------------------------------------------------------

    Response to Comments--Clean Air Act Restrictions on the Use of 
Credits to Produce or Import: EPA received no comments challenging the 
CAA limits on the use of destruction and transformation credits. EPA 
explained in the proposal (59 FR 56276) that the provisions of the CAA 
are more stringent than the Protocol in defining limits on production 
after January 1, 1996. The proposal also explained the interaction of 
authorities under the Protocol and the CAA that allow credits to be 
granted for transformation or destruction of controlled substances that 
could be used for subsequent production or importation, within the CAA 
phaseout caps. EPA believes that these limits represent legally binding 
ceilings, but that actual production or importation under the category 
of credits and allowances will be substantially below the limitations 
established by today's rule.
    Procedures for Requesting Credits: With today's action, EPA creates 
a system for granting destruction and transformation credits as an 
incentive to destroy and transform controlled substances recovered from 
U.S. use systems and to provide critical supplies to those who have 
been nominated for essential use exemptions. In today's rule, a person 
may submit a request to the Agency after January 1, 1996, for credits 
based on the destruction or transformation of a quantity of controlled 
substances taken from a use system in the United States. The 
destruction must have occurred in an approved destruction technology as 
under Sec. 82.3. The eligible person must present a sales receipt 
demonstrating the material was purchased from the owner of a use system 
in the U.S. or documenting that the material produced or imported with 
essential-use allowances became unusable due to an 
[[Page 24974]] unforeseen event. The person requesting the credits 
needs to identify the amount of controlled substance that was destroyed 
or transformed and the previous use of the controlled substance. In 
addition, the person needs to submit to EPA a copy of the destruction 
efficiency certification as under Sec. 82.13(k) or the IRS certificate 
of intent to transform. Upon approval, EPA would grant the person 
credits equal to the amount of the specific controlled substance they 
destroyed or transformed minus a 15 percent offset. Approval will be 
based upon a review of the completeness and accuracy of the 
documentation. The credits may be used for the production or 
importation of an equivalent calculated level of the controlled 
substance for which the eligible person was nominated to the Protocol. 
For example, the U.S. Air Force's Titan Rocket was nominated by the 
U.S. Government for an essential use exemption for methyl chloroform 
and could therefore use credits to produce or import methyl chloroform. 
Consistent with the Protocol limits on net production for control 
periods, EPA restricts the use of credits to the control period in 
which the transformation or destruction occurred. Credits can not be 
carried over from one control period to the next. The recordkeeping and 
reporting requirements associated with the credits described in these 
paragraphs are outlined below in section C.7., ``Reporting and 
Recordkeeping for Destruction and Transformation Credits.''
    The Agency will create a balance of credits for the person upon 
approval of a request for credits. The holder of the credits may write 
a letter to a producer or importer conferring the right to produce or 
import an amount of the class I controlled substance for which they 
were nominated to the Protocol for an essential-use exemption. 
Producers and importers will submit the letters from credit holders 
conferring rights to produce or import with their quarterly producer's 
report. Deductions will be made from the credit holder's balance, when 
the quarterly production and importation reports are submitted to EPA. 
Inter-pollutant transfers of credits, as currently defined in 
Sec. 82.12, will be permitted within the Groups of class I substances 
listed in appendices A and F to subpart A, subtracting the one percent 
offset. Inter-company transfers of credits will also be permitted, as 
currently defined in Sec. 82.12, subtracting the one percent offset. 
The preamble of the proposal misstated that inter-Party trades of 
credits would be permitted (this was not included in the proposed 
regulatory language). EPA is not permitting inter-Party trades of 
destruction and transformation credits under today's rule because the 
credits are designed to meet the essential needs of U.S. companies for 
controlled substances and these needs can be met through U.S. 
production or imports.
2. Post-Phaseout Requirements for Essential-Uses
    The Federal Register NPRM published on November 10, 1994, discussed 
Protocol decisions regarding essential uses and the U.S. process for 
accepting requests and making nominations to the Protocol Secretariat. 
The NPRM also proposed a U.S. program for implementing essential-use 
exemptions domestically after the phaseout on January 1, 1996 (59 FR 
56282).
    The November 10, 1994 proposal distinguished between essential-use 
nominations for specific entities for specific uses and the global 
essential-use exemption for laboratory and analytical applications. All 
the nominations and the quantities presented in the proposed rulemaking 
(59 FR 56284), both specific and global, were adopted at the Sixth 
Meeting of the Parties to the Protocol in October 1994.
    EPA would like to note that information required by today's action 
to monitor the production and consumption of essential-use controlled 
substances will be treated in accordance the provisions of 40 CFR Part 
2, Subpart B governing confidential business information if so claimed 
by the company in a letter or on the submitted documents.
    Creation of Essential Use Allowances: With today's action, EPA 
creates a new class of allowances called ``essential-use allowances,'' 
to be allocated for designated control periods beginning January 1, 
1996. EPA received no comments that challenged the proposed creation of 
essential-use allowances during the post-phaseout period. To 
effectively implement a program of essential-use allowances, EPA is 
including a definition of ``unexpended essential use allowances''.
    Allocation of Essential Use Allowances: EPA allocates essential-use 
allowances and exemptions based on the nominations agreed to by the 
Parties to the Protocol at the Sixth Meeting in October 1994. As 
indicated on the table below, EPA allocates essential use allowances 
for specified controlled substances for the years 1996 and 1997. 
Although the Technology and Economic Assessment Panel received 
nominations for essential-use exemptions beyond 1997, today's action 
only includes those exemptions for 1996 and 1997 agreed to by the 
Parties at the October 1994 meeting. A manufacturer of metered dose 
inhalers (MDIs) who was listed in the proposal (59 FR 56284), and whose 
nomination for an essential-use exemption was agreed to by the Parties, 
was sold to two other companies late in 1994. The essential-use 
allowances for this company are today allocated to the two purchasing 
companies according to the proportionate need for the controlled 
substances to manufacture specific products. EPA reserves the right to 
revise the allocation of essential-use allowances and other essential-
use exemptions based on future decisions of the Parties to the 
Protocol.

                              Essential Uses Agreed to by the Parties to the Protocol at the Sixth Meeting in October 1994                              
--------------------------------------------------------------------------------------------------------------------------------------------------------
                          Company                                Year                       Chemical                         Quantity (metric tons)     
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           (i) Metered Dose Inhalers--Aerosols                                                          
                                                                                                                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
Members of the International Pharmaceutical & Aerosol               1996  CFC-11 ....................................  749.8.                           
 Consortium (IPAC)*.                                                                                                                                    
    Abbot Laboratories.....................................  ...........  CFC-12 ....................................  2353.2.                          
    Armstrong 1997.........................................  ...........  CFC-114....................................  314.1.                           
    Boehringer Ingelheim...................................         1997  CFC-11 ....................................  658.3.                           
    Glaxo..................................................  ...........  CFC-12 ....................................  2166.5.                          
    3M.....................................................  ...........  CFC-114....................................  311.4.                           
    Rhone Poulenc Rorer                                                                                                                                 
    Schering Corporation                                                                                                                                
Miles Inc..................................................         1996  CFC-12 ....................................  5.1.                             
                                                             ...........  CFC-114....................................  10.2.                            
[[Page 24975]]
                                                                                                                                                        
                                                                    1997  CFC-12  ...................................  5.2.                             
                                                                          CFC-114....................................  10.5.                            
Sankofi Winthrop, Inc......................................         1996  CFC-12  ...................................  5.0.                             
                                                                          CFC-114....................................  19.4.                            
                                                                    1997  CFC-12 ....................................  5.3.                             
                                                                          CFC-114....................................  21.2.                            
                                                                                                                                                        
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                                                               (ii) Space Shuttle--Solvent                                                              
                                                                                                                                                        
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NASA/Thiokol...............................................         1996  Methyl Chloroform..........................  56.8.                            
                                                                    1997  Methyl Chloroform..........................  56.8.                            
                                                                                                                                                        
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                                                      (iii) Laboratory and Analytical Applications                                                      
                                                                                                                                                        
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Global Exemption...........................................         1996  Class I (except Group IV)..................  No quantity specified.           
                                                                    1997  ......do...................................      Do.                          
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*IPAC consolidated requests for an essential use exemption to be nominated to the Protocol as an agent of its member companies for administrative       
  convenience. By means of a confidential letter to each of the companies listed above, EPA will allocate essential-use allowances separately to each   
  company in the amount requested by it for the nomination.                                                                                             

  Response to Comments--Allocation of Essential Use Allowances: EPA 
received one comment from a manufacturer of generic MDIs that 
challenged the specific allocation of essential-use allowances for 
MDIs. The commenter claimed that EPA is unwittingly excluding companies 
that produce generic-brand MDIs from competing in the market because 
they are not included in today's allocation. EPA did not exclude 
companies that produce MDIs but only included those companies/entities 
that did apply for essential-use exemptions. EPA did not receive an 
application for essential-use exemptions for class I controlled 
substances from the commenter or any other manufacturer of generic MDIs 
in response to the initial call for applications, published in the 
Federal Register on May 20, 1993. The commenter did apply for an 
essential-use exemption in response to EPA's notice in the Federal 
Register on October 18, 1994. EPA believes the procedures followed in 
publishing Federal Register notices for essential-use exemptions 
provides an open forum for the participation of any interested person. 
Therefore, the fact that the commenter did not submit an application 
for an essential-use exemption in response to the May 20, 1993 request 
is not a deficiency on the part of the Agency. Fortunately, in 
accordance with the provisions of the Protocol, EPA may adjust the U.S. 
allocation of essential-use exemptions and essential-use allowances in 
the future based on future actions by the Parties to the Protocol. In 
reviewing the responses to the October 18, 1994 Federal Register 
notice, the U.S. government nominated the commenter's application for 
an MDI essential-use exemption to the Montreal Protocol Secretariat. As 
stated above, EPA reserves the right to adjust the allocation of 
essential-use allowances and exemptions based on future decisions of 
the Parties.
    A consortium of MDI manufacturers that received essential-use 
allowances requested that EPA give the consortium discretion to 
allocate essential-use allowances among the member companies of the 
consortium based on their confidential estimates of market need. EPA 
requires the consortium to submit a listing of the percentage 
allocation of essential-use allowances to each member company so the 
Agency can monitor compliance with today's requirements. EPA 
understands the consortium will take responsibility for coordinating 
recordkeeping and reporting on behalf of its members. EPA retains the 
right to review and alter the consortium's discretion to allocate 
essential-use allowances among its members through a formal notice.
    A commenter suggested EPA create a system for supplemental 
allowances in cases when a quantity of material, produced or imported 
with essential-use allowances, becomes unusable due to unforeseen 
events. Citing the potential risks of fire, earthquake and flood, the 
commenter suggested that a recipient of essential-use allowances would 
document the event that made the controlled substance unusable in order 
to obtain the ``supplemental'' allowances. EPA believes that a 
provision for supplemental allowances is unnecessary given today's 
creation of transformation credits and destruction credits in A.1.c., 
``The Post-Phaseout Procedures for Granting Destruction and 
Transformation Credits.'' In the event of some unforeseen event that 
makes the substance produced or imported with essential-use allowances 
unusable for the essential application, the eligible company could 
obtain transformation credits or destruction credits in order to 
replace the lost material. The procedures for obtaining the credits are 
the same as those described above in A.1.c. The credits would be 
granted for the destruction (in an approved destruction technology) or 
the transformation of the specific controlled substance that became 
unusable due to the unforeseen event, or for the destruction or 
transformation of a quantity of recovered class I controlled substance 
that was purchased from the owner/operator of a U.S. use system. Only 
companies that the U.S. government nominated to the Protocol 
Secretariat for essential-use exemptions, will be able to obtain 
destruction and transformation credits after the January 1, 1996 
phaseout.
    EPA received no comments on the allocation of essential-use 
allowances to NASA/Thiokol. The comments on the global exemption for 
laboratory and analytical applications is discussed below.
    CAA Limits on Essential Use Allowances: In today's action, EPA 
authorizes continued production or importation after the phaseout for 
the essential uses and exemptions permitted under the Montreal Protocol 
and allocated in today's action, but not to exceed the maximum 
allowable limits set forth in section 604(a) of the CAA. A more 
detailed discussion of the [[Page 24976]] authorization for production 
and importation after the phaseout for essential uses under the 
Protocol and CAA, with limits set by section 604 of the CAA, is 
contained in the proposed rulemaking published November 10, 1994. 
Specific references to the authorization and limits are found in the 
sections on destruction and transformation credits (59 FR 56479) and 
essential-use allowances (59 FR 56283). The Section 604(a) phaseout 
schedule in the CAA that limits production and importation of class I 
controlled substances is shown in TABLE I of today's preamble.
    Response to Comments--CAA Limits on Essential Use Allowances: A 
commenter noted that the proposal's discussion of CAA essential-use 
exceptions failed to include the exemptions for production of halon-
1211, halon-1301 and halon-2404 for fire suppression or explosion 
prevention under section 604(g)(1) and for fire suppression or 
explosion prevention in association with domestic production of crude 
oil and natural gas energy on the North Slope of Alaska under section 
604(g)(3). EPA wishes to acknowledge all exceptions for essential uses 
that are cited in section 604 of the CAA, including uses for fire 
suppression or explosion prevention, and for fire suppression or 
explosion prevention in association with domestic production of crude 
oil and natural gas energy on the North Slope of Alaska. The exceptions 
for essential uses cited in the CAA can be authorized by EPA, after due 
consideration specified in the CAA, beyond the phaseout schedule 
originally set forth in section 604(a), which for class I substances 
(except methyl bromide) is 2000 (2002 for methyl chloroform) but can 
only be done consistent with actions permitted under the Montreal 
Protocol. With today's action, EPA is initiating the domestic 
essential-use program as authorized under the accelerated phaseout 
schedule of the Protocol, within the limits placed on total production 
and importation as under the phaseout schedule in section 604(a) of the 
CAA.
    A commenter stated their belief that EPA has discretion, under the 
CAA, to allow production and importation beyond the phaseout for 
essential uses without imposing the percentage limitations of the 
phaseout schedule in section 604. According to the commenter's 
interpretation, the CAA is ``ambiguous regarding whether the schedule 
in section 604 remains in force after the phaseout has been accelerated 
pursuant to section 606.'' Given the ambiguity, the commenter suggested 
that EPA's acceleration of the schedule under section 606 would 
supplant the 604 limitations and the 604 schedule would no longer have 
legal effect. EPA does not believe that the CAA is ambiguous. EPA 
believes that section 606 authorizes EPA to accelerate the phaseout 
schedule to be ``more stringent than set forth in section 604'' but 
that exercise of this authority does not diminish the legal relevance 
of section 604. In addition, EPA does not believe that section 604(d) 
is ambiguous about the granting of essential use exceptions. Section 
604(d) specifically refers to ``the termination of production required 
by subsection (b),'' which is the phaseout date of January 1, 2000, for 
class I controlled substances (2002 for methyl chloroform). EPA is 
legally compelled by the CAA to apply the percentage limitations in 604 
on production and importation for essential-uses.
    A commenter pointed out that the regulatory language in the 
proposal (59 FR 56297), under Sec. 82.4, did not reflect the preamble 
discussion of a national limit on production based on the phaseout 
schedule under section 604(a) of the CAA. Although Sec. 82.4 in the 
proposal refers to individual levels, when aggregated they would 
reflect a national production limit as set in the CAA. With today's 
action, EPA clarifies the regulatory language to reflect a national 
limit, not a limit for each producer, based on the percentage 
limitation as defined in section 604(a) of the CAA.
    A commenter pointed out that the regulatory language in the 
proposal (59 FR 56297) did not correspond with the preamble discussion 
of using essential-use allowances for the import of controlled 
substances. With today's action EPA corrects the inadvertent omission 
of regulatory text language permitting the use of essential-use 
allowances to import controlled substances.
    A commenter suggested that the proposal's (59 FR 56297) discussion 
of limits on total production and importation based on a combination of 
essential use allowances, transformation credits and destruction 
credits should give a priority to essential use allowances. As 
discussed above, EPA allocates transformation and destruction credits 
only to those entities that have been nominated by the U.S. to the 
Protocol. Therefore, EPA believes entities allocated essential-use 
allowances will have preference, by virtue of their demonstrated need 
for controlled substances beyond the phaseout as acknowledged in 
nominations to the Protocol. In today's action, only those essential 
uses nominated by the U.S. to the Protocol will be able to destroy or 
transform to obtain credits. Given the small size of these essential 
use nominations, EPA believes it is unnecessary to grant a priority to 
essential uses allowances within the limits established by the CAA in 
the section 604(a) phaseout schedule (see TABLE 1).
    Procedures for Specific Essential-Use Allowances: With today's 
action, EPA creates a system in which entities receiving essential-use 
allowances for specific essential uses, i.e., metered dose inhalers and 
NASA/Thiokol, confer to a producer or importer the right to produce or 
import a specific quantity of the specific controlled substance. The 
company conferring the essential-use allowances must certify to the 
producer or importer that the controlled substance will only be used 
for the specified essential use and not resold. The producer or 
importer will include with their quarterly report the quantity produced 
or imported for essential uses and submit the letters from recipients 
of essential-use allowances that confer the right to produce or import.
    With today's action, EPA limits the use of essential-use allowances 
to production and importation. EPA prohibits essential-use allowances 
from inter-pollutant and inter-company transfers and inter-Party 
trades. EPA received no unfavorable comments on these limitations 
during the comment period. However, EPA received one comment after the 
comment period requesting permission for inter-pollutant transfers of 
essential-use allowances. The commenter requested inter-pollutant 
transfers to meet shifts in market demand for MDIs that cannot be 
predicted. EPA believes that quantities requested for MDIs by the 
consortium are large enough to meet market demand and contingencies can 
be addressed through destruction and transformation credits.
    Global Essential Use Exemption for Laboratory Applications: With 
today's action, EPA creates a global exemption for laboratory and 
analytical essential uses of CFCs, methyl chloroform and carbon 
tetrachloride for the 1996 and 1997 control periods. The global 
exemption neither defines specific quantities, nor does it identify 
specific companies or entities. A list of possible analytical and 
laboratory procedures for which controlled substances might be used is 
found in appendix G to subpart A, but this list is neither exhaustive, 
nor restrictive. With today's action, EPA creates a system for 
implementing the global laboratory essential-use exemption agreed to by 
the Parties to the Protocol at the 1994 meeting. The 
[[Page 24977]] system is designed to ensure that the United States 
meets its obligations under the Montreal Protocol to monitor and report 
the quantities produced and imported for laboratories, as well as to 
collect information on the types of laboratory applications that use 
the specified class I controlled substances.
    Restrictions on the Global Essential Use Exemption for Laboratory 
Applications: With this action, EPA adopts the restrictions for the 
implementation of the global exemption for laboratory essential-uses 
agreed to by the Parties to the Protocol and described in appendix G to 
subpart A of 40 CFR part 82. Class I controlled substances can only be 
sold for laboratory or analytical applications under the global 
essential-use exemption for 1996 and 1997, at or above the specified 
purities and within the size restrictions listed in appendix G, (the 
size restriction differs if for sale by a producer or importer to a 
distributor or packager of laboratory supplies).
    With today's action, EPA adopts the size and purity restrictions 
agreed to by the Parties for the global laboratory essential-use 
exemptions as defined in appendix G. Class I controlled substances 
(except methyl bromide) for ultimate sale for laboratory or analytical 
applications during 1996 and 1997 can only be supplied in reclosable 
containers or high pressure cylinders smaller than three litres, or in 
10 millilitre or smaller glass ampoules at the purity levels listed in 
appendix G.
    Response to Comments--Restrictions on the Global Essential Use 
Exemption for Laboratory Applications: EPA received one comment 
suggesting alternative size restrictions for the sale of controlled 
substances under the global laboratory essential-use exemption. With 
today's action, EPA adopts the size restrictions for ultimate sale, 
agreed to by the Parties to the Protocol at the Sixth Meeting in 
October 1994, as listed in appendix G.
    EPA received one comment that pointed out a common industry 
practice of re-distilling newly produced material to achieve higher 
purities. After January 1, 1996, a person re-distilling must purchase 
newly produced or imported material that meets the purity standards as 
outlined in appendix G, but may receive the substance in containers 
larger than the size restrictions in appendix G. Thus, a producer or 
importer can only sell newly produced controlled substances during 1996 
or 1997 that meet the purity standards. If sold to a re-distiller for 
laboratory applications, or to a distributor of laboratory supplies, 
the producer or importer may sell the controlled substance in 
containers larger than the appendix G size restrictions.
    Procedures for Monitoring the Global Essential Use Exemption for 
Laboratory Applications: With today's action, EPA authorizes producers 
and importers to sell controlled substances that meet the prescribed 
purity standards in appendix G to: (1) Laboratory customers that 
certify the controlled substance will only be used for laboratory 
applications and not resold or used in manufacturing; or (2) 
distributors that certify they will only sell the substance to 
customers who in turn certify it will only be used for laboratory 
applications and not resold or used in manufacturing. Producers and 
importers must sell the controlled substances under the global 
laboratory essential-use exemption for 1996 and 1997 to laboratory 
customers in the prescribed size containers at the prescribed purities, 
as defined in appendix G. However, producers and importers may sell the 
controlled substances under the global laboratory essential-use 
exemption for 1996 and 1997 in larger sized containers and at the 
prescribed purities in appendix G to distributors of laboratory 
supplies (or re-distillers of materials for laboratories). The producer 
and importer will report to EPA each quarter the quantity of each 
controlled substance sold under the global exemption, including the 
name of the laboratory customer or the distributor that purchased the 
material and the amount they purchased.
    Response to Comments--Procedures for Monitoring the Global 
Essential Use Exemption for Laboratory Applications: EPA received five 
comments on the proposed procedures for the global essential-use 
exemptions for laboratory and analytical applications. The commenters 
agreed with the procedures outlined in the proposed rulemaking (59 FR 
56284) for producers and importers. However, the commenters suggested 
that distributors and/or marketers of laboratory products be added to 
the list of entities from whom labs can purchase controlled substances 
during 1996 and 1997 under the global laboratory essential-use 
exemption. The commenters pointed out that laboratories generally 
purchase controlled substances from distributors, and not directly from 
the producers or importers. As a result of the comments, EPA is 
including distributors of laboratory supplies in the procedures for 
monitoring the sale of the controlled substances for the global 
laboratory essential-use exemption during 1996 and 1997.
    Distributors can repackage the substance in prescribed size 
containers to be sold to laboratory customers. Distributors must 
certify to producers or importers that they will only sell the 
substance to laboratory customers that certify that they will use the 
substance for laboratory and analytical uses and will not resell the 
substance nor will they use it for manufacturing.
    With the addition of distributors to the chain of entities under 
the global laboratory essential-use exemption, EPA revised the 
reporting requirements accordingly. In addition, EPA received comments 
suggesting improvements in the proposed reporting procedures to reduce 
the overall administrative burden and to clarify the reporting of 
information proposed in Sec. 82.13(u). To reduce reporting burden, a 
laboratory purchasing the same controlled substances routinely under 
the global laboratory essential-use exemption will certify once-per-
year to the producer or importer, or to the distributor, that the 
substance is being purchased for laboratory uses and will not be resold 
or used for manufacturing. The once-per-year reporting by laboratories 
will reduce the administrative burden for the labs and the supplier of 
the controlled substance. On the form certifying a purchase for 
laboratory use, the laboratory customer will estimate the percent of 
the amount purchased that will be used for each type of laboratory 
application on the form's printed list.
    Each quarter of 1996 and 1997, the distributor of laboratory 
supplies will submit to EPA a summary of the amounts of controlled 
substances purchased from producers or importers under the global 
laboratory essential-use exemption. In addition, distributors will 
submit each quarter a copy of the once-per-year certificate from each 
laboratory making its first purchase during that quarter. Distributors 
will also submit quarterly a summary of the quantities of each 
controlled substance purchased by each laboratory for whom certificate 
forms were already filed in previous quarters. EPA will use the 
quantity of material purchased by each laboratory and their estimate of 
the percent used for each type of laboratory application to generate 
the United States report for the Protocol Secretariat on the global 
laboratory essential-use exemption.

B. Imports of Used Controlled Substances

Proposal
    In the proposal (59 FR 56285), EPA described the provisions of the 
Montreal Protocol governing previously used and recycled materials. The 
proposal also described the requirements promulgated in the Federal 
Register on December 10, [[Page 24978]] 1993, that allowed the 
importation of used or recycled controlled substances without 
allowances (Sec. 82.4 (a) and (b)). As stated in the proposal (59 FR 
56285), EPA is investigating many cases of potential fraud and illegal 
importation of material claimed to be used or recycled. Today's action 
is designed to mitigate the illegal import of controlled substances by 
amending the regulatory Program.
    Definition of Used Controlled Substance: EPA changes the definition 
of used and recycled controlled substances to include only the term 
``used.'' A controlled substance is considered used if it was recovered 
from a use system, regardless of whether it was subsequently recycled 
or reclaimed. The change in the definition simplifies references to 
used substances without introducing confusion about their subsequent 
treatment. As stated in the proposal (59 FR 56285), EPA intends for 
recycled and reclaimed substances to be considered used controlled 
substances.
    Response to Comments--Definition of Used Controlled Substance: EPA 
received only supportive comments for the change in the definition of 
used controlled substances. However, two commenters suggested 
additional language to further specify the need for reclamation. They 
suggested that the definition of used controlled substances include a 
phrase such as, ``cannot be reused without reclamation.'' EPA believes 
the commenters assumed all controlled substances are used as 
refrigerants. The section 608 recycling regulation requires reclamation 
of refrigerants before they can be resold but there is no similar 
requirement for halons, foam blowing agents, solvents or other uses of 
controlled substances. EPA believes requiring reclamation of all used 
controlled substances is unnecessarily restrictive because not all 
controlled substances are used as refrigerants.
    Two commenters suggested that EPA treat reclaimed material as newly 
produced material and require that consumption allowances be expended 
for importation. The comments were made to further deter fraudulent 
imports. With today's action, EPA requires importers of reclaimed 
material to document the foreign site of reclamation. EPA knows which 
Parties have reclamation facilities and can verify reclamation of a 
controlled substance. In addition, there will be no consumption 
allowances available to import controlled substances after January 1, 
1996, and EPA believes only a small quantity of reclaimed material is 
entering the U.S. Therefore, EPA is maintaining the exemption from the 
allowance requirements for imported reclaimed materials.
    Information Requirements: With today's action, EPA requires the 
following additional information from persons importing used controlled 
substances:
    <bullet> The name and quantity of the used controlled substance to 
be imported (including material that has been recycled or reclaimed),
    <bullet> The name and address of the importer, the importer I.D. 
number, the contact person, and the phone and fax numbers,
    <bullet> Name and address of the source facility (facilities) of 
the used controlled substance, including a description of the previous 
use(s), when possible;
    <bullet> Name and address of the exporter and/or foreign owner of 
the material,
    <bullet> The U.S. port of entry for the import, the expected date 
of shipment and the vessel transporting the chemical,
    <bullet> The intended future use of the used controlled substance,
    <bullet> The name, address and contact person of the U.S. 
reclamation facility, where applicable,
    <bullet> A certification that the purchaser of the used controlled 
substance being imported is liable for payment of the tax.
    EPA requires that the information listed above be submitted as part 
of a petition to import used controlled substances as described below. 
The petition with the information listed above must be submitted to EPA 
15 working days before leaving the country of export and must accompany 
the used controlled substance. If EPA does not respond to the petition 
within 15 working days, the import is automatically allowed as 
described below. The petition must also accompany the import through 
U.S. Customs. EPA determined that requiring the petition 15 days before 
the shipment is exported, rather than 15 days before it is imported, as 
proposed, will prevent the material from being stranded if the petition 
to import is denied.
    If the imported controlled substance was reclaimed in a Party 
country, the importer must provide the name and address of the foreign 
reclamation facility, as well as the contact person at the facility and 
their phone and fax number. The name of the foreign reclamation 
facility should be included with the information listed above, 
accompanying the import through U.S. Customs, and with a petition to 
import as described below.
    If the imported used controlled substance is intended to be sold as 
a refrigerant, and has not been reclaimed upon entry into the U.S., EPA 
also requires that the importer identify the name and address of the 
U.S. reclaimer to whom the refrigerant will be sent to comply with the 
standard specified in Sec. 82.152(g). An EPA regulation published in 
the Federal Register on Friday August 19, 1994, (59 FR 42949) states 
that, ``no person may sell or offer for sale for use as a refrigerant 
any class I or class II controlled substance consisting wholly or in 
part of used refrigerant unless * * * it has been reclaimed as defined 
in Sec. 82.152(g).''
    Response to Comments--Information Requirements: EPA received many 
comments supporting new information requirements as the means of 
discouraging fraudulent activities and actively monitoring imports of 
used controlled substances. EPA received comments that some of the 
information requirements listed in the proposed rulemaking (59 FR 
56285) would be difficult to obtain and/or provide to EPA. In some 
cases, the commenters claimed an inability to obtain the information 
from foreign sources. In other cases, the commenters indicated 
difficulty in obtaining the information because the company from whom 
the information should be received would claim it as confidential 
business information. In today's action, EPA chose the particular 
information requirements listed above because commenters who suggested 
them said they would be fairly easy to obtain. Many commenters stated a 
willingness to provide the information listed above in order to deter 
illegal imports, although they would be subject to the requirements 
themselves.
    EPA believes the information noted above will provide an 
opportunity for independent verification of substances being imported. 
Since the goal is to accurately determine whether the imported 
substance is in fact ``used,'' EPA considered the practicality of 
obtaining the information required and the usefulness of this 
information in verifying the nature of the imported material.
    EPA received comments from the halon sector requesting an exemption 
from the information requirements for imports. These commenters 
suggested the halon sector should be exempted because: (1) There are so 
few countries still producing halons, (2) the halon sector in the U.S. 
is so well organized, and (3) the requirements would be a burden. EPA 
believes the information requirements will not pose a great burden for 
the halon sector because the information is commonly known by importers 
and often incorporated in sales transactions. In addition, U.S. 
[[Page 24979]] Customs needs to have import documents that will make a 
clear distinction between used halons (including recycled and 
reclaimed), and newly produced halons because of the prohibition on 
importing newly produced halons. In 1994, halon importers had 
difficulty providing documents when EPA requested verification that 
shipments were reclaimed material. EPA is also receiving information 
that Article 5 producers of halons are exporting newly produced halons 
to developed countries, and some of this may be entering U.S. commerce. 
EPA hopes that a shipment-by-shipment information requirement will 
improve the ability of halon importers to supply documents so that EPA 
can monitor and ensure the legitimacy of all imports.
    Creation of a Petition Program for Imports of Used Controlled 
Substances: With today's action, EPA establishes a process for 
petitioning the Agency to import a shipment of used controlled 
substance into the United States. A person must submit a petition to 
EPA to import each shipment of used controlled substance (recovered, 
recycled or reclaimed material) at least 15 working days prior to the 
date the ship is to leave the foreign country. The petition submitted 
to EPA must include the information listed above in Section B, 
``Imports of Used Controlled Substances.'' EPA will review each 
petition on a shipment-by-shipment basis and determine whether or not 
to object before the date the ship is to leave the foreign country, 
within the 15 working days from the time of submission. If EPA objects 
to a petition, the person submitting the information will be notified 
prior to the time the shipment is to leave the country of export. If 
EPA needs additional information, an objection notice will be sent and 
the importer may re-submit the petition with the requested information. 
The person may proceed with the import if EPA does not object to the 
particular import of used controlled substance within the 15 working 
days. EPA will send the person a non-objection notice, and notify U.S. 
Customs Service and the IRS of the shipment.
    With this rule, EPA also creates a petition process for a person 
who imports the same used controlled substances from one source many 
times during a year. EPA will accept an annual petition, at least 15 
working days before the first day of the year, that includes all the 
applicable information required in petitions for individual shipments. 
In place of exact quantities and particular use systems from which the 
material is taken, the annual petition must include an estimate of the 
number of shipments and quantity of specific used controlled substances 
that will be imported during the year and the likely sources (previous 
uses) of the used material. Following the importation of each shipment 
during the quarter, the importer must submit to EPA, referencing the 
annual petition, the invoice, the bill of lading, and a detailed 
description of the use system(s) from which the material(s) was taken. 
The annual petition procedure is designed for a company that frequently 
imports the same used controlled substances from the same source 
(foreign supplier).
    Response to Comments--Creation of a Petition Program for the 
Importation of Used Controlled Substances: EPA received seven comments 
supporting the creation of a permit/petition system for the import of 
used controlled substances as proposed (59 FR 56285). Two of the 
comments supported an annual permitting system. Four comments supported 
some sort of shipment-by-shipment permitting system. Two commenters 
suggested an alternative system in which importers petition EPA on a 
shipment-by-shipment basis. All the companies supporting a permit or a 
petition process agree that it will involve additional paperwork on 
their part but they would rather have the process in place to ensure 
all imports are legitimate. A petition process was recommended because 
it would be less onerous than a permit but accomplish the same goal of 
maintaining the integrity of the market-based program that encourages 
the transition from class I controlled substances. To reduce the 
administrative burden of petitioning for the import of very small 
amounts, EPA received comments that suggested adoption of a de minimus 
amount for which companies would not need to petition. The commenters 
pointed out that laboratories and reclaimers in the U.S. often receive 
small samples of used controlled substances for analysis. Due to these 
suggestions and common industry practices, EPA exempts imports of 150 
pounds or less from the petition requirements. However, all importers, 
regardless of quantity, are still required to report quarterly. The 
exemption from the petition requirement for 150 pounds or less applies 
to individual shipments which cannot be aggregated. EPA believes this 
de minimus amount reduces burdens on industry while still deterring the 
illegal entry of controlled substances.
    EPA believes a process of requiring petitions for imports will 
deter the fraudulent importation of mislabeled controlled substances, 
and will provide greater control over the entry of used substances into 
the United States. The European Union (EU) currently requires permits 
of all importers. The EU uses the permits to monitor shipments and 
investigate suspected mislabeled ozone-depleting substances. EPA 
believes that adoption of a similar system will increase the 
effectiveness of enforcement actions against illegal imports. With 
today's action, a person can import used controlled substances unless 
EPA issues an objection notice to a petition.
    EPA will forward the non-objection notices to U.S. Customs and the 
IRS to alert them of expected shipments of used class I controlled 
substances at U.S. ports. Because EPA will receive the petitions prior 
to the date the material is shipped from a foreign port, U.S. Federal 
Agencies will have time to investigate the veracity of the claimed 
origin of the material, and anticipate its arrival.
    Currently, EPA receives a monthly list of importers of controlled 
substances from U.S. Customs. A petition system will allow EPA to match 
the information from importers' petitions for used class I controlled 
substances with the monthly imports on the U.S. Customs list. A person 
appearing on the U.S. Customs list of imports, who never submitted a 
petition, or who obtained an objection notice in response to a 
petition, would be in potential violation of the regulation for that 
shipment.
    EPA would like to clarify that for ships that are on- or off-
loading controlled substances for on-board use or that was used on-
board, ship owners/operators are exempted from requirements for imports 
and exports as in the current regulation. Since these controlled 
substances are not being sold, but only used on-board or recovered from 
on-board use and sold only for reclamation, these substances cannot be 
considered exports or imports. EPA will rely on the records kept by 
shipping companies and vessels to verify on-board use of controlled 
substances.
    Certification by the Country of Export: Many commenters supported 
the proposed requirement (59 FR 56285) that all imports of used 
substances be accompanied by a certification from the country of 
export. EPA proposed this particular requirement in anticipation of a 
discussion of illegal trade in controlled substances during the 1995 
meeting of the Parties to the Protocol. EPA anticipates that 
certification by the country of export will be one of the options 
considered by the Parties to confront illegal trade of controlled 
substances. At this time, however, EPA [[Page 24980]] cannot 
incorporate this procedure into the regulation until the Parties make a 
decision to adopt it. Without an international agreement, EPA cannot 
compel government agencies of another Party to provide the information.
    If the Parties agree to adopt the certification of exports of used 
controlled substances during the 1995 Meeting, EPA would be required to 
establish a program to certify U.S. exports of used controlled 
substances. EPA already has a limited certification program for certain 
reclamation facilities. Under this program, reclamation facilities must 
be able to ensure that previously used refrigerant will be reclaimed to 
a level of purity specified in Sec. 82.152(g). With regard to exports 
of used substances, if the Parties adopt a certification procedure, 
U.S. exporters would be required to certify that the ``used'' substance 
was taken from a use system. The exporter might also be required to 
keep records on selected items from the list of information 
requirements above, to facilitate future verification.

C. Program Adjustments and Clarifications to Become Effective in the 
1995 Control Period

1. Changes in Requirements for Exports to Article 5 Countries
    Beginning with the 1995 control period, EPA changes the name of 
potential production allowances to Article 5 allowances. In today's 
rule, EPA also eliminates the process of converting potential 
production allowances to production allowances for all control periods, 
beginning with the 1995 control period. EPA assigns Article 5 
allowances for the 1995 control period, and subsequent control periods, 
to companies that have allocated baseline production allowances for 
class I controlled substances, including methyl bromide. A description 
of provisions in Article 2 of the Montreal Protocol permitting 
additional production for Article 5 countries was included in the 
proposed rulemaking published on November 10, 1994 (59 FR 56286).
    With this rule, EPA creates a system in which a company notifies 
the Agency at the end of each quarter of their exports to Article 5 
countries. EPA will deduct Article 5 allowances equal to the amount of 
controlled substance exported to Article 5 countries from the company's 
balance of Article 5 allowances. With today's action, EPA permits 
inter-pollutant and inter-company transfers of Article 5 allowances as 
proposed but is not permitting inter-Party trades. The Agency 
determined that inter-Party trades of Article 5 allowances would 
violate the provision of the Protocol that specifically allows 
additional production by each Party for export to Article 5 countries.
    Response to Comments: EPA received five comments supporting the up-
front allocation of Article 5 allowances and the change in the system 
for deducting Article 5 allowances from a company's balance on a 
quarterly basis. EPA received two comments that did not support the 
allocation of Article 5 allowances.
    A commenter suggested that allocating Article 5 allowances after 
January 1, 1996, would be unnecessary because Article 5 countries have 
sufficient production capacity to supply their own needs. EPA received 
letters from four producers of controlled substances in Article 5 
countries (two are subsidiaries of the commenter) asking that EPA not 
authorize additional production for export to Article 5 countries. 
These Article 5 producers claimed that they could provide material for 
all the Article 5 countries in their region, i.e., South America, 
Southeast Asia.
    The Parties included provisions in the Protocol to assure a 
continued supply of controlled substances for Article 5 countries 
beyond the phaseout in Article 2 (developed) countries. EPA recognizes 
that certain facilities in Article 5 countries have the production 
capacity for production of specific, but not all, ozone-depleting 
substances. However, the Montreal Protocol limits any increases in 
production of controlled substances in Article 5 countries to that 
needed to meet their own basic domestic needs.
    A commenter did not support the proposed allocation of Article 5 
allowances because they believe Article 5 allowances would create 
opportunities for controlled substances to be produced for export to 
Article 5 countries and illegally be imported back into the U.S. or be 
diverted to U.S. commerce and never actually be exported. The current 
regulation, in accordance with the Protocol, requires exporters to 
obtain a signed certification from an Article 5 importer that the 
controlled substances cannot be re-exported, and if re-exported the 
importer is in violation and subject to a financial penalty. In 
addition, with today's action, EPA prohibits the sale of material in 
the U.S. that was produced with Article 5 allowances. This does not 
change any legal requirements for Parties under Article 5. EPA believes 
that today's requirement addresses the concern about Article 5 
allowances and illegal imports.
    The Parties to the Protocol adopted provisions allowing additional 
production for export to Article 5 countries for sound environmental 
reasons as explained in the proposal (59 FR 56287). In today's action, 
EPA implements the provisions of the Protocol in accordance with desire 
of the Parties to deter the construction of new, or expansion of 
existing, manufacturing facilities in Article 5 countries.
    CAA Limits on U.S. Post-Phaseout Production: With today's action, 
the Agency corrects the date from which, and until which, companies may 
produce 15 percent of baseline allowances for export to Article 5 
countries. CAA section 604(e)(2)(C) permits production for developing 
countries to exceed baseline allowances by up to 15 percent beginning 
January 1, 2000, and to continue until January 1, 2010 (2012 in the 
case of methyl chloroform). However, the Protocol permits production 
for export to Article 5 countries at 15 percent of baseline allowances 
beginning with the phaseout date (January 1, 1994, for halons, and 
January 1, 1996, for CFCs, methyl chloroform and carbon tetrachloride) 
and continuing for ten years after the Protocol phaseout.
    With today's action, and subsequent to the U.S. accelerating its 
phaseout dates, EPA permits each producer 15 percent of their baseline 
production allowances for export to Article 5 countries as under the 
Protocol, but in accordance with the restrictions on the U.S.'s overall 
production as imposed by the CAA. EPA believes the overall limit the 
CAA imposes on U.S. production will never be reached but must 
acknowledge this legal upper limit.
    Because the CAA only allows 10 percent additional production for 
Article 5 countries up until 2000, EPA will count 5 percent of United 
States' total production for Article 5 countries against the annual 
percent limitations in the phaseout schedule of section 604 of the CAA 
as shown in TABLE I, (i.e., 40 percent for CFCs in 1996). The remaining 
10 percent of production for Article 5 countries will be added to the 
annual percent limitation in the CAA phaseout schedule (i.e., 10 
percent + 40 percent = 50 percent for CFCs in 1996). As an example, EPA 
will allocate producers 15 percent of their baseline production 
allowances in 1996 which is expended when producing for Article 5 
countries. Continuing with the example, in EPA's tracking system, EPA 
will subtract 5 percent of the 15 percent allocated for export to 
Article 5 [[Page 24981]] countries from the CAA annual percentage 
limitation of 40 percent for CFCs in 1996, yielding a national 
production limit of 35 percent for all other post-phaseout production 
exemptions: Essential-uses, transformation credits and destruction 
credits. EPA believes it is highly unlikely that U.S. production will 
ever approach the pre-accelerated phaseout cap set forth in section 
604(a) of the CAA through the combination of the exceptions allowed in 
today's rule; however, it is important that EPA explicitly outline how 
it intends to ensure that the caps of the CAA are met.
    Response to Comments--CAA Limits on U.S. Post-Phaseout Production: 
EPA received no comments on the proposed (59 FR 56287) limits on 
production imposed by the CAA for the use of Article 5 allowances in 
combination with essential use allowances, destruction credits and 
transformation credits after January 1, 1996. Therefore, with today's 
action, EPA permits production based on limits imposed under section 
604(e)(2) and 604(a) of the CAA plus ten percent of the baseline for 
export to Article 5 countries. EPA believes this overall limit imposed 
by the CAA will never be reached.
2. Administrative Changes to the Consumption Allowance Requirements for 
Exports
    In the proposal (59 FR 56288), EPA considered various methods of 
streamlining the administrative procedures for refunding consumption 
allowances when controlled substances are exported to a Party. Based on 
comments and further consideration, EPA is maintaining the system in 
which producers expend both production and consumption allowances to 
produce class I controlled substances for the 1995 control period (and 
for methyl bromide until 2001). EPA also maintains the procedure in 
which companies request a ``refund'' from EPA of consumption allowances 
expended to produce controlled substances exported to a Party during 
the 1995 control period.
    Response to Comments: EPA received two comments that supported the 
proposed system (59 FR 56288) for expediting the refund of consumption 
allowances when controlled substances are exported to a Party to the 
Protocol. Four comments were received that preferred the proposed 
option to eliminate the requirement that producers expend consumption 
allowances when producing for export. EPA also received two comments 
challenging the proposed system to expedite the refund of consumption 
allowances, stating that the double submission of documents would be 
unnecessarily burdensome.
    With today's action, EPA chooses to maintain the current procedure 
for refunding consumption allowances once a company exports a 
controlled substance to a Party. EPA maintains the procedure in order 
to closely monitor exports in the final year before the phaseout. EPA 
wishes to continue receiving documentation of exports as part of the 
campaign against illegal imports. Since the proposal was written (59 FR 
56275), EPA has become increasingly concerned about illegal imports 
entering the U.S. as a result of fraudulent claims that they are 
subsequently exported. Many deceptive activities are being taken to 
avoid the IRS tax on ozone-depleting substances. The IRS tax code 
exempts a percentage of exported controlled substances from the tax. 
EPA believes that people are importing controlled substances and 
fraudulently claiming their subsequent export to avoid the tax. EPA is 
concerned that people are submitting fraudulent documents about either 
non-existent exports or about exported shipping containers filled with 
some material other than the controlled substances claimed in the 
export documents. The receipt of documents is a component of EPA's 
compliance and enforcement program against illegal imports. EPA wishes 
to maintain the current refund procedure for consumption allowances in 
1995 to monitor exports and deter illegal activities.
    With today's action, EPA chooses not to expedite the process of 
refunding consumption allowances in response to industry comments. EPA 
initially proposed the expedited refund of consumption allowances 
believing it would assist industry in the final year before the 
phaseout. However, industry comments expressed legitimate concern that 
the proposed procedure, with the double reporting to expedite the 
refund, would actually be an increased burden. Many industry comments 
pointed out the complexity of the proposed procedures and the undesired 
potential for miscalculations and double-counting. In addition, a 
commenter noted the difficulty EPA would face in designing a new 
tracking system for only one year to accommodate the double reporting 
of contingent consumption allowances followed by a confirmation of the 
consumption allowances. EPA now recognizes that the proposed procedures 
for expediting refunded allowances would create a significant reporting 
and administrative burden for both industry and the Agency. Therefore, 
EPA will maintain the existing procedure in which companies submit 
documents only once to obtain the refund of consumption allowances.
    EPA received a comment challenging the proposed elimination of 
consumption allowances from inter-Party trades (59 FR 56288). The 
comment points out that eliminating the consumption allowances from an 
inter-Party trade would not be a problem, if, as under the December 10, 
1993 final rule, Sec. 82.9(b)(1)(vi), the controlled substance produced 
in the U.S. were exported to the Party from whom the allowances were 
received. If EPA were to eliminate the need for consumption allowances 
in inter-Party trades, and the controlled substance returned to the 
Party from whom the allowances were received, the global limit on 
production of controlled substances would be maintained. The 
requirement that material be exported to the country from whom 
allowances were traded is a vestige of the original Montreal Protocol 
and was eliminated by the London Amendments.
    During the 1994 control period, several U.S. companies asked to 
rationalize global production through inter-Party trades with a waiver 
that material not be required to return to the country from whom the 
allowances were received. The U.S. companies wanted to receive trades 
from foreign companies and produce the controlled substances for U.S. 
customers of those foreign firms. The benefit of these less restricted 
inter-Party trades would be more geographically rational production of 
controlled substances on a global basis with lower transport costs and 
energy use. Unfortunately, the requirement in Sec. 82.9(b)(1)(vi), that 
material must be exported to the country from whom the allowances were 
received blocked these inter-Party trades in 1994. EPA proposed 
eliminating this requirement in the November 10, 1994, notice of 
proposed rulemaking (59 FR 56290).
    With today's action, EPA creates a dual system for inter-Party 
trades in order to allow U.S. companies greater flexibility in meeting 
market demand in the U.S. and other countries while maintaining the 
global limit on production and consumption of controlled substances. 
The dual system for inter-Party trades allows industrial 
rationalization, and maintains U.S. obligations under the Protocol. The 
two-tier system for inter-Party trades distinguishes between: U.S. 
companies wishing to receive production allowances in order to produce 
and subsequently export to the country from [[Page 24982]] whom the 
allowances were received, and U.S. companies wishing to receive 
production allowances and produce for the U.S. domestic market or for 
sale to another Party to the Protocol. In order to maintain United 
States obligations under the Protocol, EPA would require companies to 
expend their consumption allowances as allocated under Sec. 82.6 and 
Sec. 82.7 if receiving production allowances from an inter-Party trade 
for production of controlled substances to be sold in the U.S., or to 
be sold to a third country (Party to the Protocol). To produce for sale 
in the U.S. or to another Party, the company would expend production 
allowances from the inter-Party trade and expend consumption allowances 
that were allocated as part of the Allowance Program in section 
Sec. 82.6 and Sec. 82.7. Although counterintuitive, the expenditure of 
production allowances received from a Party and the expenditure of 
consumption allowances allocated under the Allowance Program would 
maintain the global balance of production and consumption of ozone-
depleting substances as restricted by the Montreal Protocol. The 
regulatory language under Sec. 82.10(c) that states, ``a request for 
production allowances shall also be considered a request for 
consumption allowances,'' will not apply to inter-Party trades of 
production allowances for the production of controlled substances to be 
sold in the U.S. or to be sold to another Party to the Protocol.
    The dual-tier system for inter-Party trades of production 
allowances applies to methyl bromide beginning in the 1995 control 
period and extends until January 1, 2001.
    Under the current regulation, a person in the United States may 
receive production allowances from a Party to the Protocol in an inter-
Party trade (under the Protocol this is called industrial 
rationalization). The request for an increase in production allowances 
through an inter-Party trade is considered, under the current 
regulation, a request for consumption allowances. The U.S. company that 
receives the allowances from the other Party expends the production and 
consumption allowances to produce a controlled substance. The 
controlled substances produced with the traded allowances are exported 
to the Party from whom the allowances were traded. The U.S. company 
expends consumption allowances in the production of the controlled 
substance for an inter-Party trade and then asks EPA for a ``refund'' 
of these consumption allowances because the controlled substance was 
exported.
3. Administrative Changes to Production Allowance Requirements for 
Exports That Are Transformed or Destroyed
    With today's action, EPA is creating procedures for the refund of 
production allowances when a person expends production allowances in 
the manufacture of a controlled substance for export to a Party for 
uses that result in transformation or destruction. EPA proposed (59 FR 
56289) expediting the ``refund'' of production allowances, but is not 
adopting this proposal, because it is too great a reporting and 
administrative burden as discussed above for the refund of consumption 
allowances.
    The refund procedure pertains to the production of class I 
controlled substances for only the 1995 control period, except for 
methyl bromide. For methyl bromide, the refund of expended production 
allowances for quantities exported to Parties that are certified to be 
transformed or destroyed would also begin January 1, 1995, but extend 
until January 1, 2001. As with the procedures for refunding consumption 
allowances, a person in the U.S. producing or purchasing a class I 
controlled substance may, upon export to a Party for certified 
subsequent transformation or destruction, request from EPA a ``refund'' 
of production allowances with a certification that the production 
allowances were expended in the production of the substance. To ensure 
that the controlled substance is in fact transformed or destroyed by 
the recipient in a Party country, the Agency requires the U.S. exporter 
to obtain a signed IRS certificate of intent to transform or a 
destruction verification (as under Sec. 82.13(k)) from the foreign 
transformer or destroyer.
    Response to Comments: EPA received five comments supporting the 
elimination of requirements to expend allowances if the controlled 
substance is explicitly produced for export to be transformed or 
destroyed. The commenters suggested that all controlled substances that 
are transformed, both domestically and overseas, be treated similarly. 
A commenter stated that the Protocol does not make a distinction 
between transformation (or destruction), whether it occurs domestically 
or overseas.
    The prior regulation, published in the Federal Register on December 
10, 1993, required that allowances be expended for the production of 
controlled substances that are exported and transformed or destroyed. 
Under this prior regulation, production allowances were expended and 
not refunded. With today's action, EPA is refunding the expended 
production and consumption allowances if the substance is explicitly 
exported for transformation or destruction. EPA considers the refund of 
production allowances to be a significant benefit for producers of 
class I controlled substances during the final control period before 
the phaseout.
    EPA received two comments that requested an explicit waiver of 
liability for a producer or importer who sells a controlled substance 
for transformation or destruction in the event the controlled substance 
is not transformed or destroyed. Given EPA's requirements for 
transformers or destroyers of controlled substances, the producer or 
importer who sells the substance is not liable as long as they receive 
an IRS certificate of intent to transform or a destruction 
verification.
    Additional Actions: With today's action, EPA is standardizing the 
reporting requirements for controlled substances that are transformed 
or destroyed both domestically and overseas. Each quarterly producer's 
or importer's report must be accompanied by the IRS certificates of 
intent to transform or destruction verifications (as under 
Sec. 82.13(k)) from the transformers or destroyers to whom controlled 
substances were sold. EPA is unwilling to further relax requirements 
for production during the last control period (1995 calendar year), in 
part due to difficulties companies had during 1994 in complying with 
the reporting requirements for transformation. The regulation requires 
that companies submit IRS certificates of intent to transform with 
quarterly production reports. In 1994, few companies submitted the IRS 
certification of intent to transform or the destruction verification 
with their quarterly reports. By standardizing the reporting 
requirement for controlled substances transformed or destroyed both 
domestically and overseas, EPA hopes to improve compliance by companies 
during the 1995 control period. The procedures for submitting the IRS 
certification and the destruction verification change slightly with 
today's rule and are described in H., ``Clarification of Reporting and 
Recordkeeping Requirements.''
    After the January 1, 1996 phaseout, production and consumption 
allowances will not be required to produce class I controlled 
substances for domestic or foreign transformation or destruction. After 
January 1, 1996, EPA will permit production for transformation or 
destruction domestically or overseas as long as companies comply with 
strict reporting [[Page 24983]] requirements, including the submission 
of IRS certificates of intent to transform and destruction 
verifications (see H., ``Clarification of Reporting and Recordkeeping 
Requirements'').
4. Treatment of Controlled Substances Remaining in Emptied Containers, 
i.e.''Heels''
    With today's action, EPA exempts heels from the consumption 
allowance requirements for imports beginning in the 1995 control period 
if certain conditions are met. Heels were described in detail in the 
proposed rulemaking and are now defined in the regulation (59 FR 
56289). Heels are exempted from the consumption allowance requirements 
for imports if the company bringing the heel into the United States 
certifies that the residual amount is less than 10 percent of the 
volume of the container and will remain in the container and be 
included in a future shipment, or recovered for transformation, 
destruction or a non-emissive use.
    The industry rule-of-thumb is that a heel is up to ten percent of 
the volume of the container. Therefore, EPA is requiring that 
containers returning to the United States with more than ten percent of 
their volume in controlled substance, even if labelled as a heel, be 
required to expend consumption allowances to import the substance until 
January 1, 1996.
    With today's action, EPA requires a person who brings heels back to 
the United States to report quarterly the quantity of their returned 
heels. In addition, the person must report at the end of the control 
period on the final disposition of each shipment of heels. The Agency 
will review this information to determine if returned heels are cause 
for concern due to the volume and frequency of occurrence.
    Response to Comments: Most comments EPA received supported the 
proposed requirements for heels (59 FR 56289) as long as the reporting 
requirements were stringent enough to prevent illegal import abuses. 
Only one company objected to the proposed exemption for heels from the 
import requirements, suggesting that it would provide another 
opportunity for illegal imports. The commenter claimed that under the 
proposal, heels would be under-reported and people would fraudulently 
label their imports as heels to avoid the tax.
    EPA believes the stringent reporting requirements for heels, the de 
minimis provision (no greater than 10 percent of the volume of a 
container is considered a heel), and the requirement for non-emissive 
disposition of heels eliminates the incentives to fraudulently import 
controlled substances as heels.
5. Clarification of the Definition of Transhipment
    EPA received comments on the proposed clarification of transhipment 
(59 FR 56289) that strongly recommended action to deter the abuse of 
transhipment in illegally importing controlled substances. The proposal 
only clarified the definition of transhipment and did not address the 
abuse of the transhipment provision for illegal imports. In response to 
the comments, EPA is issuing a separate, parallel notice of proposed 
rulemaking to address the abuse of the current transhipment provision 
to illegally divert transhipped material into U.S. commerce.
    EPA received a comment suggesting the use of the phrase, U.S. 
interstate commerce, in place of the phrase, U.S. jurisdiction. With 
today's action, EPA maintains the word jurisdiction in accordance with 
the definition of import in the CAA. EPA received no other adverse 
comment on the clarification of transhipment.
6. Provision for an Account Reconciliation Period Through Inter-
Pollutant Transfers
    With today's action, EPA is creating a 45-day period for 
reconciliation of allowances after the last day of the 1995 control 
period. During the 45-day reconciliation period, a person may make 
inter-pollutant transfers of allowances from the previous control 
period for class I controlled substances as defined in Sec. 82.12 of 
the current regulation. Inter-pollutant transfers of controlled 
substances can only be made between controlled substances in the same 
Group as listed in appendices A and F of subpart A. In addition, the 
inter-pollutant transfer must be authorized by EPA and will include a 
one percent offset.
    Response to Comments: EPA received many comments supporting the 
creation of a period for reconciliation of allowances after the last 
day of a control period. In addition to their support for the proposed 
45-day period for inter-pollutant transfers, EPA received five comments 
suggesting inter-company transfers be permitted. Two additional 
comments suggested inter-Party trades be allowed during the 
reconciliation period.
    EPA believes that changes in today's action to permit either inter-
company transfers or inter-Party trades in the reconciliation period 
would undermine the integrity of the prohibitions in Sec. 82.4 that 
require a person to have, at any time, the allowances to produce or 
import controlled substances. Allowing inter-company transfers or 
inter-Party trades during the reconciliation period would effectively 
eliminate the requirement that a company have allowances to produce or 
import, thereby eliminating the basis for EPA enforcement of the 
regulation. Today's action permits inter-pollutant transfers at the end 
of the control period, which are intra-company adjustments to the 
balance of allowances for that control period, through paper accounting 
rather than an extension of the control period for trades, exports or 
transfers between companies.
7. Additional Clarifications
    a. Unintended By-Products of Research and Development. EPA adds to 
the list of inadvertent or coincidental creations of insignificant 
quantities of the listed substances, in the definition of controlled 
substance, the production of unintended by-products of research and 
development applications.
    Response to Comments: EPA received only supportive comments on the 
proposal to add the unintended by-products of research and development 
applications to the list of inadvertent or coincidental creations of 
insignificant quantities so that these unintended by-products be 
exempted from the definition of controlled substances. The Agency 
continues to reserve the right to require a person to destroy the 
unintended by-products of research and development applications if they 
are determined to be greater than insignificant quantities.
    b. Carbon Tetrachloride Baseline Consumption Allowances. With 
today's action, EPA corrects a typographical error made in the proposal 
(59 FR 56300). In Sec. 82.6, the apportionment of baseline consumption 
allowances shifted the order of consumption allowances allocated to the 
various companies. Today's action maintains the baseline consumption 
allowances apportioned under the current regulation published on 
December 10, 1993 in the Federal Register.
8. Clarification of Reporting and Recordkeeping Requirements
    a. Reporting and Recordkeeping for Destruction and Transformation 
Credits. With today's action, an eligible person, if they wish to 
obtain destruction and transformation credits as defined above in A.1., 
``Post-Phaseout Requirements for Transformation and Destruction of 
Controlled Substances,'' must submit to EPA a request for credits when 
they have had a quantity of controlled substance taken from a U.S. use 
system [[Page 24984]] destroyed or transformed. The request for credits 
should include:
    <bullet> The identity and address of the person;
    <bullet> The name, quantity and volume of controlled substance 
destroyed or transformed;
    <bullet> A copy of the invoice or receipt documenting the sale or 
transfer of the controlled substance to the person;
    <bullet> A certification of the previous use of the controlled 
substance;
    <bullet> For destruction credits, a certification that the 
controlled substance was destroyed and a certification of the 
efficiency of the destruction process; and
    <bullet> For transformation credits, an IRS certificate of 
feedstock use or transformation of the controlled substance.
    EPA will review the information submitted in a request for 
destruction and transformation credits and determine whether or not to 
issue credits equal to the calculated level of material destroyed or 
transformed minus the 15 percent offset. EPA received no comments on 
the reporting requirements for granting destruction and transformation 
credits.
    b. Reporting and Recordkeeping for Importers. With today's action, 
EPA requires that importers of used, recycled or reclaimed controlled 
substances maintain records on the items included in Section B, 
``Imports of Used Controlled Substances,'' of this preamble. In 
addition, EPA continues to require that all importers submit quarterly 
reports. EPA requires that all importers differentiate, in their 
quarterly reports, between quantities of imported controlled substances 
that are newly produced, and quantities of imported controlled 
substances that are used, recycled or reclaimed in accordance with the 
reporting requirements of the prior regulation published in the Federal 
Register on December 10, 1993.
    Under the current rule, EPA requires that importers be prepared to 
verify that the company has consumption allowances when entering a 
newly produced class I controlled substance into the United States. EPA 
also requires importers be prepared to provide the documentation as 
listed in Section B of this preamble, to verify the previous owner and 
the previous use when entering a controlled substance claimed to be 
used, recycled or reclaimed into the United States. After January 1, 
1995, an importer must provide to EPA, as part of the petition to 
import used, recycled or reclaimed controlled substances, the following 
information as listed in section B., ``Imports of Used Controlled 
Substances:
    <bullet> The name and quantity of the used controlled substance to 
be imported (including material that has been recycled or reclaimed),
    <bullet> The name and address of the importer, the importer I.D. 
number, the contact person, and the phone and fax numbers,
    <bullet> Name and address of the source(s) of the used controlled 
substance, including a description of the previous use(s), when 
possible;
    <bullet> Name and address of the exporter and/or foreign owner of 
the material,
    <bullet> The U.S. port of entry for the import, the expected date 
of shipment and the vessel transporting the chemical, where available,
    <bullet> The intended future use of the used controlled substance,
    <bullet> The name, address and contact person of the U.S. 
reclamation facility, where applicable,
    <bullet> A certification that the purchaser of the used controlled 
substance being imported is liable for payment of the tax.
    A petition to import a class I controlled substance that was 
reclaimed overseas must also include the name and address of the 
foreign reclamation facility, as well as the contact person at the 
facility and their phone and fax number. The name of the foreign 
reclamation facility should be included with the information listed 
above accompanying the import through U.S. Customs.
    If the imported used controlled substance is intended to be sold as 
a refrigerant, EPA also requires that the importer identify the name 
and address of the reclaimer to whom the refrigerant will be sent to 
comply with the standard required in Sec. 82.152(g). EPA regulation 
published in the Federal Register on Friday August 19, 1994, (59 FR 
42949) states that, ``no person may sell or offer for sale for use as a 
refrigerant any class I or class II controlled substance consisting 
wholly or in part of used refrigerant unless * * * it has been 
reclaimed as defined in Sec. 82.152(g).''
    Response to Comments: EPA received many comments on the proposed 
actions to address illegal imports of controlled substances. The 
commenters stated a willingness to accept new reporting requirements in 
order to stem the flow of illegally imported controlled substances.
    One commenter stated that chemical testing of imported materials 
would not provide EPA with reliable evidence that the controlled 
substance had been taken from a use system. A lab test would not be 
able to distinguish between a contaminated newly produced controlled 
substance, a contaminated ``off-spec'' newly produced substance, or a 
substance taken from a use system. Therefore, the commenters stated 
that this reporting requirement would be an unnecessary expense and 
burden. EPA agrees with these arguments and has not included lab 
testing of imported used controlled substance in today's action.
    Another commenter claimed it would be difficult to obtain the 
proposed information requirement on the type of machine utilized to 
recover the controlled substance. EPA recognizes the difficulty in 
identifying and describing recovery machinery and has not included it 
in the reporting requirement for used imported controlled substances.
    c. Reporting and Recordkeeping for Article 5 Exports. Today's 
Action: EPA requires companies to submit with their producer's 
quarterly report the amount of controlled substance produced with 
expended Article 5 allowances and exported to Article 5 countries 
during the quarter. Today's change of name from potential production 
allowances to Article 5 allowances does not change the quarterly 
reporting requirements. However, today's action does eliminate the need 
to convert allowances.
    Today's amendment to the recordkeeping and reporting requirement 
anticipates the phaseout of class I controlled substances (except 
methyl bromide) in January 1, 1996. In 1995, all class I controlled 
substances produced for export to Article 5 countries will be reported 
in the producer's quarterly report. Beginning January 1, 1996, EPA will 
simplify the quarterly reporting, so that producers indicate which of 
the production exceptions apply (i.e., essential-use allowances, 
Article 5 allowances, destruction and transformation credits, 
transformation or destruction) for a given quantity of controlled 
substance, with relevant information to explain the justification for 
the exception.
    Response to Comments: EPA received five comments supporting the 
changes in the reporting requirements for Article 5 allowances that 
eliminate the need to convert potential production allowances to 
production allowances. The commenters also indicated a need to clarify 
in the regulatory language how Article 5 allowances will be used in the 
production of controlled substances. The commenters pointed out that 
the regulatory language should be consistent with the preamble. With 
today's action EPA makes the changes to the regulatory language to 
ensure correspondence with today's preamble. [[Page 24985]] 
    d. Reporting and Recordkeeping for the Production Allowance 
Requirements for Exports that are Transformed or Destroyed. Today's 
Action: EPA requires the submission of an IRS certificate of intent to 
transform or a destruction verification (as outlined in Sec. 82.13(k)), 
during the 1995 control period, if a person is requesting the refund of 
production allowances for material exported to be transformed or 
destroyed. If requesting a refund of production allowances, the 
producer must submit the IRS certificate or destruction verification 
for each shipment.
    Starting in the 1995 control period, EPA requires all producers and 
importers to submit with quarterly reports an IRS certificate of intent 
to transform or a destruction verification (as in Sec. 82.13(k)) from 
transformers or destroyers, both domestic and of a foreign Party, who 
purchase controlled substances.
    Response to Comments: EPA received comments that claimed the 
reporting requirements for submission of IRS certificates to transform 
and destruction verifications were burdensome. In response to the 
comments, EPA is permitting a one-time-per-year submission of an IRS 
certificate of intent to transform or a one-time-per-year submission of 
a destruction verification from each individual transformer or 
destroyer that purchases the same controlled substances throughout the 
year that will be transformed or destroyed during that year. After the 
first submission of an IRS certificate for a particular transformer, or 
the first submission of a destruction verification for a particular 
destroyer, whether the transformer or destroyer is domestic or foreign, 
the U.S. producer or importer may list the quantities of subsequent 
shipments sold to the transformer or destroyer, referencing the 
original certificate or verification.
    e. Reporting and Recordkeeping for Heels. Today's Action: With 
today's action, EPA requires a person who brings heels back to the 
United States to report quarterly a list of the quantity of their 
returned heels, shipment-by-shipment. The quarterly submission must 
list the quantity of the heel in each shipment and the volume of the 
container in which the heel returned to the United States. The 
submission of the list of heels must also include a certificate that 
the residual amount will remain in the container and be included in a 
future shipment, or be recovered for transformation, destruction or a 
non-emissive use. Due to concerns about illegal imports of controlled 
substances, the Agency determined that quarterly reporting on heels is 
necessary to closely monitor for possible abuses of today's provision.
    EPA requires all companies that brought heels into the United 
States to report, at the end of the control period, on the final 
disposition of each shipment of heels. The Agency will review this 
information to determine if returned heels are cause for concern due to 
the volume and frequency of occurrence and potential abuse.
    f. Reporting Requirements for Class II Controlled Substances 
(HCFCs). With today's action, EPA includes class II controlled 
substances that are transformed or destroyed in the reporting 
requirement of Sec. 82.13(n). In the proposal, EPA inadvertently 
excluded class II material that is transformed or destroyed from the 
reporting requirement.

III. Summary of Supporting Analysis

A. Executive Order 12866

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), the 
Agency must determine whether this regulatory action is ``significant'' 
and therefore subject to OMB review and the requirements of the 
Executive Order. The Order defines ``significant'' regulatory action as 
one that is likely to lead to a rule that may:
    (1) Have an annual effect on the economy of $100 million or more, 
or adversely and materially affect a sector of the economy, 
productivity, competition, jobs, the environment, public health or 
safety, or State, local, or tribal governments or communities;
    (2) Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impact of entitlement, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    It has been determined by OMB and EPA that this amendment to the 
final rule is not a ``significant regulatory action'' under the terms 
of Executive Order 12866 and is therefore not subject to OMB review 
under the Executive Order.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 601-602, requires that 
Federal agencies examine the impacts of their regulations on small 
entities. Under 5 U.S.C. 604(a), whenever an agency is required to 
publish a general notice of proposed rulemaking, it must prepare and 
make available for public comment an initial regulatory flexibility 
analysis (RFA). Such an analysis is not required if the head of an 
agency certifies that a rule will not have a significant economic 
impact on a substantial number of small entities, pursuant to 5 U.S.C. 
605(b).
    The Agency originally published an RFA to accompany the August 12, 
1998 final rule (53 FR 30566) that placed the initial limits on the 
production and consumption of CFCs and halons. That RFA was also 
updated as appendix G of the Regulatory Impact Analysis for the 
regulations implementing the phaseout schedule of section 604 of the 
Clean Air Act Amendments of 1990. The Addendum to the Regulatory Impact 
Analysis was further updated in 1993 to examine the impact of the 
acceleration of the phaseout and the phaseout of HCFCs on small 
businesses. The analysis in the Addendum indicated that the actions 
were not expected to have a substantial impact on small entities.
    EPA believes that any impact that today's amendment will have on 
the regulated community will serve only to provide relief from 
otherwise applicable regulations, and will therefore limit the negative 
economic impact associated with the regulations previously promulgated 
under Sections 604 and 606. Although almost all business participants 
in the phaseout program for ozone-depleting substances are large 
businesses, today's amendment reduces reporting or recordkeeping 
burdens that might possibly impact small businesses. Therefore, the 
amendment is expected to have minimal if any impact on small entities.
    Under section 605 of the Regulatory Flexibility Act, 5 U.S.C. 605, 
I certify that the regulation promulgated in this notice will not have 
any additional negative economic impacts on any small entities.

C. Paperwork Reduction Act

    The information collection requirements in this final rule were 
approved by the Office of Management and Budget (OMB) under the 
Paperwork Reduction Act, 44 U.S.C. 3501 et. seq. and assigned control 
number, OMB No. 2060-0170. An Information Collection Request document 
has been prepared by EPA (ICR No. 1432.15) and a copy may be obtained 
from Sandy Farmer, Information Policy Branch, U.S. EPA, 401 M St., SW., 
(2136), Washington, DC 20460 or by calling (202) 260-2740.
    The information collection requirements for this final rule has an 
estimated reporting burden averaging 23.3 hours per response. This 
estimate includes time for reviewing [[Page 24986]] instructions, 
searching existing data sources, gathering and maintaining the data 
needed and completing the collection of information.
    Send comments regarding the burden estimate of any other aspect of 
this collection of information, including suggestions for reducing this 
burden to Chief, Information Policy Branch, U.S. EPA, 401 M St., SW., 
(2136), Washington, DC 20460; and to the Office of Information and 
Regulatory Affairs, Office of Management and Budget, Washington, DC 
20503, marked ``Attention: Desk Officer for EPA.'' The final rule will 
respond to any OMB or public comments on the information collection 
requirements contained in this proposal.

D. Enhancing the Intergovernmental Partnership Under Executive Order 
12875

    In compliance with Executive Order 12875 we have involved state, 
local, and tribal governments in the development of this rule to the 
extent they are affected by these requirements. EPA is conducting an 
outreach program to facilitate the transition for state, local and 
tribal governments to ozone-friendly alternatives.

E. Unfunded Mandate Act

    Section 202 of the Unfunded Mandates Reform Act of 1995 requires 
EPA to prepare a budgetary impact statement before promulgating a rule 
that includes a Federal mandate that may result in expenditure by 
state, local and tribal governments, in aggregate, or by the private 
sector, of $100 million or more in any one year. Section 203 requires 
the Agency to establish a plan for obtaining input from and informing 
any small governments that may be significantly or uniquely affected by 
the rule. Section 205 requires that regulatory alternatives be 
considered before promulgating a rule for which a budgetary impact 
statement is prepared. The Agency must select the least costly, most 
cost-effective, or least burdensome alternative that achieves the 
rule's objectives, unless there is an explanation why this alternative 
is not selected or this alternative is inconsistent with law.
    This rule amends the accelerated phaseout rule with the net effect 
of reducing the regulatory burden for regulated entities. Because this 
amendment to the rule is estimated to result in the expenditure of less 
than $100 million in any one year by state, local, and tribal 
governments, or the private sector, the Agency has neither prepared a 
budgetary impact statement nor addressed the selection of the least 
costly, most cost-effective, or least burdensome alternative. Because 
small governments will not be significantly or uniquely affected by 
this rule, the Agency is not required to develop a plan with regard to 
small governments.

List of Subjects in 40 CFR Part 82

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Chemicals, Chlorofluorocarbons, Exports, 
Hydrochlorofluorocarbons, Imports, Ozone layer, Reporting and 
recordkeeping requirements, Stratospheric ozone layer.

    Dated: April 19, 1995.
Carol Browner,
Administrator.

    40 CFR part 82 is amended as follows:

PART 82--PROTECTION OF STRATOSPHERIC OZONE

    1. The authority citation for part 82 continues to read as follows:

    Authority: 42 U.S.C. 7414, 7671-7671q.
    2. Subpart A is revised to read as follows:

Subpart A--Production and Consumption Controls

Sec.
82.1  Purpose and scope.
82.2  Effective date.
82.3  Definitions.
82.4  Prohibitions.
82.5  Apportionment of baseline production allowances.
82.6  Apportionment of baseline consumption allowances.
82.7  Grant and phased reduction of baseline production and 
consumption allowances for class I controlled substances.
82.8  Grant and phased reduction of baseline production and 
consumption allowances for class II controlled substances. 
[Reserved]
82.9  Availability of production allowances in addition to baseline 
production allowances.
82.10  Availability of consumption allowances in addition to 
baseline consumption allowances.
82.11  Exports to Article 5 Parties.
82.12  Transfers.
82.13  Recordkeeping and reporting requirements.

Appendix A to Subpart A--Class I Controlled Substances

Appendix B to Subpart A--Class II Controlled Substances

Appendix C to Subpart A--Parties to the Montreal Protocol

Appendix D to Subpart A--Harmonized Tariff Schedule

    Description of Products That May Contain Controlled Substances 
in Appendix A, Class I, Groups I and II.

Appendix E to Subpart A--Article 5 Parties

Appendix F to Subpart A--Listing of Ozone-Depleting Chemicals

Appendix G to Subpart A--UNEP Recommendations for Conditions

    Applied to Exemption for Laboratory and Analytical Uses.

Appendix H to Subpart A--Clean Air Act Amendments of 1990

    Phaseout Schedule for Production of Ozone-Depleting Substances.

Subpart A--Production and Consumption Controls


Sec. 82.1  Purpose and scope.

    (a) The purpose of the regulations in this subpart is to implement 
the Montreal Protocol on Substances that Deplete the Ozone Layer and 
sections 603, 604, 605, 606, 607 and 616 of the Clean Air Act 
Amendments of 1990, Public Law 101-549. The Protocol and section 604 
impose limits on the production and consumption (defined as production 
plus imports minus exports, excluding transhipments and used controlled 
substances) of certain ozone-depleting substances, according to 
specified schedules. The Protocol also requires each nation that 
becomes a Party to the agreement to impose certain restrictions on 
trade in ozone-depleting substances with non-Parties.
    (b) This subpart applies to any person that produces, transforms, 
destroys, imports or exports a controlled substance or imports a 
controlled product.


Sec. 82.2  Effective date.

    (a) The regulations under this subpart take effect May 10, 1995. 
Amendments to the requirements specifically addressing 1995 apply to 
the entire control period.
    (b) The regulations under this subpart that were effective prior to 
May 10, 1995, continue to apply for purposes of enforcing the 
provisions that were applicable prior to January 1, 1995.


Sec. 82.3  Definitions.

    As used in this subpart, the term:
    Administrator means the Administrator of the Environmental 
Protection Agency or his authorized representative.
    Article 5 allowances means the allowances apportioned under 
Sec. 82.9(a).
    Baseline consumption allowances means the consumption allowances 
apportioned under Sec. 82.6.
    Baseline production allowances means the production allowances 
apportioned under Sec. 82.5.
    Calculated level means the weighted amount of a controlled 
substance [[Page 24987]] determined by multiplying the amount (in 
kilograms) of the controlled substance by that substance's ozone 
depletion potential (ODP) weight listed in appendix A or appendix B to 
this subpart.
    Class I refers to the controlled substances listed in appendix A to 
this subpart.
    Class II refers to the controlled substances listed in appendix B 
to this subpart.
    Completely destroy means to cause the expiration of a controlled 
substance at a destruction efficiency of 98 percent or greater, using 
one of the destruction technologies approved by the Parties.
    Complying with the Protocol, when referring to a foreign state not 
Party to the 1987 Montreal Protocol, the London Amendments, or the 
Copenhagen Amendments, means that the non-Party has been determined as 
complying with the Protocol, as indicated in appendix C to this 
subpart, by a meeting of the Parties as noted in the records of the 
directorate of the United Nations Secretariat.
    Consumption means the production plus imports minus exports of a 
controlled substance (other than transhipments, or used controlled 
substances).
    Consumption allowances means the privileges granted by this subpart 
to produce and import class I controlled substances; however, 
consumption allowances may be used to produce class I controlled 
substances only in conjunction with production allowances. A person's 
consumption allowances are the total of the allowances obtained under 
Secs. 82.6 and Sec. 82.7 and 82.10, as may be modified under Sec. 82.12 
(transfer of allowances).
    Control period means the period from January 1, 1992 through 
December 31, 1992, and each twelve-month period from January 1 through 
December 31, thereafter.
    Controlled product means a product that contains a controlled 
substance listed as a Class I, Group I or II substance in appendix A to 
this subpart. Controlled products include, but are not limited to, 
those products listed in appendix D to this subpart.
    Controlled products belong to one or more of the following six 
categories of products:
    (1) Automobile and truck air conditioning units (whether 
incorporated in vehicles or not);
    (2) Domestic and commercial refrigeration and air-conditioning/heat 
pump equipment (whether containing controlled substances as a 
refrigerant and/or in insulating material of the product), e.g. 
Refrigerators, Freezers, Dehumidifiers, Water coolers, Ice machines, 
Air-conditioning and heat pump units;
    (3) Aerosol products, except medical aerosols;
    (4) Portable fire extinguishers;
    (5) Insulation boards, panels and pipe covers;
    (6) Pre-polymers.
    Controlled substance means any substance listed in appendix A or 
appendix B to this subpart, whether existing alone or in a mixture, but 
excluding any such substance or mixture that is in a manufactured 
product other than a container used for the transportation or storage 
of the substance or mixture. Thus, any amount of a listed substance in 
appendix A or appendix B to this subpart that is not part of a use 
system containing the substance is a controlled substance. If a listed 
substance or mixture must first be transferred from a bulk container to 
another container, vessel, or piece of equipment in order to realize 
its intended use, the listed substance or mixture is a ``controlled 
substance.'' The inadvertent or coincidental creation of insignificant 
quantities of a listed substance in appendix A or appendix B to this 
subpart; during a chemical manufacturing process, resulting from 
unreacted feedstock, from the listed substance's use as a process agent 
present as a trace quantity in the chemical substance being 
manufactured, or as an unintended byproduct of research and development 
applications, is not deemed a controlled substance. Controlled 
substances are divided into two classes, Class I in appendix A to this 
subpart, and Class II listed in appendix B to this subpart. Class I 
substances are further divided into seven groups, Group I, Group II, 
Group III, Group IV, Group V, Group VI, and Group VII, as set forth in 
appendix A to this subpart.
    Copenhagen Amendments means the Montreal Protocol on Substances 
That Deplete the Ozone Layer, as amended at the Fourth Meeting of the 
Parties to the Montreal Protocol in Copenhagen in 1992.
    Destruction means the expiration of a controlled substance to the 
destruction efficiency actually achieved, unless considered completely 
destroyed as defined in this section. Such destruction does not result 
in a commercially useful end product and uses one of the following 
controlled processes approved by the Parties to the Protocol:
    (1) Liquid injection incineration;
    (2) Reactor cracking;
    (3) Gaseous/fume oxidation;
    (4) Rotary kiln incineration; or
    (5) Cement kiln.
    Destruction Credits means those privileges that may be obtained 
under Sec. 82.9 to produce controlled substances.
    Essential-Uses means those uses of controlled substances designated 
by the Parties to the Protocol to be necessary for the health and 
safety of, or critical for the functioning of, society; and for which 
there are no available technically and economically feasible 
alternatives or substitutes that are acceptable from the standpoint of 
environment and health. Beginning January 1, 2000 (January 1, 2002 for 
methyl chloroform) the essential use designations for class I 
substances must be made in accordance with the provisions of the Clean 
Air Act Amendments of 1990.
    Essential-Use Allowances means the privileges granted by 
Sec. 82.4(r) to produce class I substances, effective January 1, 1996 
until January 1, 2000, as determined by allocation decisions made by 
the Parties to the Montreal Protocol and in accordance with the 
restrictions delineated in the Clean Air Act Amendments of 1990.
    Export means the transport of virgin or used controlled substances 
from inside the United States or its territories to persons outside the 
United States or its territories, excluding United States military 
bases and ships for on-board use.
    Exporter means the person who contracts to sell controlled 
substances for export or transfers controlled substances to his 
affiliate in another country.
    Facility means any process equipment (e.g., reactor, distillation 
column) used to convert raw materials or feedstock chemicals into 
controlled substances or consume controlled substances in the 
production of other chemicals.
    Foreign state means an entity which is recognized as a sovereign 
nation or country other than the United States of America.\1\

    \1\Taiwan is not considered a foreign state.
---------------------------------------------------------------------------

    Foreign state not Party to or Non-Party means a foreign state that 
has not deposited instruments of ratification, acceptance, or other 
form of approval with the Directorate of the United Nations 
Secretariat, evidencing the foreign state's ratification of the 
provisions of the 1987 Montreal Protocol, the London Amendments, or of 
the Copenhagen Amendments, as specified.
    Heel means the amount of a controlled substance that remains in a 
container after it is discharged or off-loaded (that is no more than 
ten percent of the volume of the container) and that the person owning 
or operating the container certifies the residual amount 
[[Page 24988]] will remain in the container and be included in a future 
shipment, or be recovered for transformation, destruction or a non-
emissive purpose.
    Import means to land on, bring into, or introduce into, or attempt 
to land on, bring into, or introduce into any place subject to the 
jurisdiction of the United States whether or not such landing, 
bringing, or introduction constitutes an importation within the meaning 
of the customs laws of the United States, with the following 
exemptions:
    (1) Off-loading used or excess controlled substances or controlled 
products from a ship during servicing,
    (2) Bringing controlled substances into the U.S. from Mexico where 
the controlled substance had been admitted into Mexico in bond and was 
of U.S. origin, and
    (3) Bringing a controlled product into the U.S. when transported in 
a consignment of personal or household effects or in a similar non-
commercial situation normally exempted from U.S. Customs attention.
    Importer means any person who imports a controlled substance or a 
controlled product into the United States. ``Importer'' includes the 
person primarily liable for the payment of any duties on the 
merchandise or an authorized agent acting on his or her behalf. The 
term also includes, as appropriate:
    (1) The consignee;
    (2) The importer of record;
    (3) The actual owner; or
    (4) The transferee, if the right to draw merchandise in a bonded 
warehouse has been transferred.
    London Amendments means the Montreal Protocol, as amended at the 
Second Meeting of the Parties to the Montreal Protocol in London in 
1990.
    Montreal Protocol means the Montreal Protocol on Substances that 
Deplete the Ozone Layer, a protocol to the Vienna Convention for the 
Protection of the Ozone Layer, including adjustments adopted by the 
Parties thereto and amendments that have entered into force.
    1987 Montreal Protocol means the Montreal Protocol, as originally 
adopted by the Parties in 1987.
    Nations complying with, but not joining, the Protocol means any 
nation listed in appendix C, annex 2, to this subpart.
    Party means any foreign state that is listed in appendix C to this 
subpart (pursuant to instruments of ratification, acceptance, or 
approval deposited with the Depositary of the United Nations 
Secretariat), as having ratified the specified control measure in 
effect under the Montreal Protocol. Thus, for purposes of the trade 
bans specified in Sec. 82.4(k)(2) pursuant to the London Amendments, 
only those foreign states that are listed in appendix C to this subpart 
as having ratified both the 1987 Montreal Protocol and the London 
Amendments shall be deemed to be Parties.
    Person means any individual or legal entity, including an 
individual, corporation, partnership, association, state, municipality, 
political subdivision of a state, Indian tribe; any agency, department, 
or instrumentality of the United States; and any officer, agent, or 
employee thereof.
    Plant means one or more facilities at the same location owned by or 
under common control of the same person.
    Production means the manufacture of a controlled substance from any 
raw material or feedstock chemical, but does not include:
    (1) The manufacture of a controlled substance that is subsequently 
transformed;
    (2) The reuse or recycling of a controlled substance;
    (3) Amounts that are destroyed by the approved technologies; or
    (4) Amounts that are spilled or vented unintentionally.
    Production allowances means the privileges granted by this subpart 
to produce controlled substances; however, production allowances may be 
used to produce controlled substances only in conjunction with 
consumption allowances. A person's production allowances are the total 
of the allowances obtained under Secs. 82.7, 82.5 and 82.9, and as may 
be modified under Sec. 82.12 (transfer of allowances).
    Transform means to use and entirely consume (except for trace 
quantities) a controlled substance in the manufacture of other 
chemicals for commercial purposes.
    Transformation Credits means those privileges that may be obtained 
under Sec. 82.9 to produce controlled substances.
    Transhipment means the continuous shipment of a controlled 
substance from a foreign state of origin through the United States, its 
territories, to a second foreign state of final destination, as long as 
the shipment does not enter into United States jurisdiction.
    Unexpended Article 5 allowances means Article 5 allowances that 
have not been used. At any time in any control period a person's 
unexpended Article 5 allowances are the total of the level of Article 5 
allowances the person has authorization under this subpart to hold at 
that time for that control period, minus the level of controlled 
substances that the person has produced in that control period until 
that time.
    Unexpended consumption allowances means consumption allowances that 
have not been used. At any time in any control period a person's 
unexpended consumption allowances are the total of the level of 
consumption allowances the person has authorization under this subpart 
to hold at that time for that control period, minus the level of 
controlled substances that the person has produced or imported (not 
including transhipments and used controlled substances) in that control 
period until that time.
    Unexpended destruction and transformation credits means destruction 
and transformation credits that have not been used. At any time in any 
control period a person's unexpended destruction and transformation 
credits are the total of the level of destruction and transformation 
credits the person has authorization under this subpart to hold at that 
time for that control period, minus the level of controlled substances 
that the person has produced or imported (not including transhipments 
and used controlled substances) in that control period until that time.
    Unexpended essential-use allowances means essential-use allowances 
that have not been used. At any time in any control period a person's 
unexpended essential-use allowances are the total of the level of 
essential-use allowances the person has authorization under this 
subpart to hold at that time for that control period, minus the level 
of controlled substances that the person has produced or imported (not 
including transhipments and used controlled substances) in that control 
period until that time.
    Unexpended production allowances means production allowances that 
have not been used. At any time in any control period a person's 
unexpended production allowances are the total of the level of 
production allowances he has authorization under this subpart to hold 
at that time for that control period, minus the level of controlled 
substances that the person has produced in that control period until 
that time.
    Used controlled substances means controlled substances that have 
been recovered from their intended use systems (may include controlled 
substances that have been, or may be subsequently, recycled or 
reclaimed).


Sec. 82.4  Prohibitions.

    (a) Prior to January 1, 1996, for all Groups of class I controlled 
substances, and prior to January 1, 2001, for class I, Group VI 
controlled substances, no person may produce, at any time in any 
control period, (except that are [[Page 24989]] transformed or 
destroyed domestically or by a person of another Party) in excess of 
the amount of unexpended production allowances or unexpended Article 5 
allowances for that substance held by that person under the authority 
of this subpart at that time for that control period. Every kilogram of 
excess production constitutes a separate violation of this subpart.
    (b) Effective January 1, 1996, for any class I, Group I, Group II, 
Group III, Group IV, Group V, or Group VII controlled substances, no 
person may produce, at any time in any control period, (except that are 
transformed or destroyed domestically or by a person of another Party) 
in excess of the amount of conferred unexpended essential-use 
allowances or exemptions under this section, the amount of unexpended 
Article 5 allowances as allocated under Sec. 82.9, or the amount of 
conferred unexpended destruction and transformation credits as obtained 
under Sec. 82.9 for that substance held by that person under the 
authority of this subpart at that time for that control period. Every 
kilogram of excess production constitutes a separate violation of this 
subpart.
    (c) Prior to January 1, 1996, for all Groups of class I controlled 
substances, and prior to January 1, 2001, for class I, Group VI 
controlled substances, no person may produce or (except for 
transhipments, heels, or used controlled substances) import, at any 
time in any control period, (except for controlled substances that are 
transformed or destroyed) in excess of the amount of unexpended 
consumption allowances held by that person under the authority of this 
subpart at that time for that control period. Every kilogram of excess 
production or importation (other than transhipments, heels or used 
controlled substances) constitutes a separate violation of this 
subpart.
    (d) Effective January 1, 1996, for any class I, Group I, Group II, 
Group III, Group IV, Group V, or Group VII controlled substances, no 
person may import (except for transhipments, heels, or used controlled 
substances), at any time in any control period, (except for controlled 
substances that are transformed or destroyed) in excess of the amount 
of unexpended essential-use allowances or exemption as allocated under 
this section held by that person under the authority of this subpart at 
that time for that control period. Every kilogram of excess importation 
(other than transhipments, heels or used controlled substances) 
constitutes a separate violation of this subpart.
    (e) Effective January 1, 1996, no person may place an order for the 
production or importation of the class I controlled substance, at any 
time in any control period, in excess of the amount of unexpended 
essential-use allowances, or unexpended destruction and transformation 
credits, held by that person under the authority of this subpart at 
that time for that control period. No person may place an order for the 
production or importation of a class I controlled substance with 
essential-use allowances or destruction and transformation credits, at 
any time in any control period, other than for the class I controlled 
substance(s) for which they received essential-use allowances as under 
paragraph (r) of this section, or for which they were nominated for 
that control period by the U.S. Government to the Protocol for an 
essential-use exemption. Every kilogram of excess production or 
importation ordered constitutes a separate violation of this subpart.
    (f) Effective January 1, 1996, the U.S. total production and 
importation of a class I controlled substance (except Group VI) as 
allocated under this section for essential-use allowances and 
exemptions, and as obtained under Sec. 82.9 for destruction and 
transformation credits, may not, at any time, in any control period 
until January 1, 2000, exceed the percent limitation of baseline 
production in Appendix H of this subpart, as set forth in the Clean Air 
Act Amendments of 1990. No person shall cause or contribute to the U.S. 
exceedance of the national limit for that control period.
    (g) In addition to total production permitted under paragraph (f) 
of this section, effective January 1, 1996, for class I, Group I, Group 
III, Group IV and Group V controlled substances, and effective January 
1, 1995, for class I, Group II, a person may, at any time, in any 
control period until January 1, 2000, produce 10 percent of baseline 
production as apportioned under Sec. 82.5 for export to Article 5 
countries. No person may, at any time, in any control period until 
January 1, 2000, produce class I, Group I, Group II, Group III, Group 
IV, and Group V controlled substances for export to Article 5 countries 
in excess of the Article 5 allowances allocated under Sec. 82.9(a). No 
person may sell in the U.S. any class I controlled substance produced 
explicitly for export to an Article 5 country.
    (h) Effective January 1, 1995, no person may import, at any time in 
any control period, a heel of any class I controlled substance that is 
greater than 10 percent of the volume of the container in excess of the 
amount of unexpended consumption allowances, or unexpended destruction 
and transformation credits held by that person under the authority of 
this subpart at that time for that control period. Every kilogram of 
excess importation constitutes a separate violation of this subpart.
    (i) Effective January 1, 1995, no person may import, at any time in 
any control period, a used class I controlled substance, without 
complying with the petition procedures as under Sec. 82.13(g) (2) and 
(3).
    (j) Prior to January 1, 1996, for all Groups of class I controlled 
substances, and prior to January 1, 2001, for class I, Group VI 
controlled substances, a person may not use production allowances to 
produce a quantity of a class I controlled substance unless that person 
holds under the authority of this subpart at the same time consumption 
allowances sufficient to cover that quantity of class I controlled 
substances nor may a person use consumption allowances to produce a 
quantity of class I controlled substances unless the person holds under 
authority of this subpart at the same time production allowances 
sufficient to cover that quantity of class I controlled substances. 
However, prior to January 1, 1996, for all class I controlled 
substances, and prior to January 1, 2001, for class I, Group VI 
controlled substances, only consumption allowances are required to 
import, with the exception of transhipments, heels and used controlled 
substances. Effective January 1, 1996, for all Groups of class I 
controlled substances, except Group VI, only essential-use allowances 
or exemptions are required to import class I controlled substances, 
with the exception of transhipments, heels and used controlled 
substances.
    (k) Every kilogram of a controlled substance, and every controlled 
product, imported or exported in contravention of this subpart 
constitutes a separate violation of this subpart, thus no person may:
    (l) Import or export any quantity of a controlled substance listed 
in Class I, Group I or Group II, in Appendix A to this subpart from or 
to any foreign state not listed as a Party to the 1987 Montreal 
Protocol unless that foreign state is complying with the 1987 Montreal 
Protocol (See Appendix C, Annex 2 of this subpart);
    (2) Import or export any quantity of a controlled substance listed 
in Class I, Group III, Group IV or Group V, in Appendix A to this 
subpart, from or to any foreign state not Party to the London 
Amendments (as noted in appendix C, Annex l, to this subpart), unless 
that foreign state is complying [[Page 24990]] with the London 
Amendments (as noted in appendix C, Annex 2, to this subpart); or
    (3) Import a controlled product, as noted in appendix D, Annex 1 to 
this subpart, from any foreign state not Party to the 1987 Montreal 
Protocol (as noted in appendix C, Annex 1, to this subpart), unless 
that foreign state is complying with the Protocol (as noted in appendix 
C, Annex 2, to this subpart).
    (l) Effective January 1, 2003, no person may produce HCFC-141b 
except in a process resulting in its transformation, use in a process 
resulting in destruction, or for exceptions stated in paragraph (s) of 
this section.
    (m) Effective January 1, 2003, no person may import HCFC-141b 
except for use in a process resulting in its transformation, use in a 
process resulting in destruction, or for exceptions stated in paragraph 
(s) of this section.
    (n) Effective January 1, 2010, no person may produce or consume (as 
defined under Sec. 82.3 HCFC-22 or HCFC-142b for any purpose other than 
for use in a process resulting in their transformation, use in a 
process resulting in their destruction, for use in equipment 
manufactured prior to January 1, 2010, or for exceptions stated in 
paragraph (s) of this section in excess of baseline allowances 
allocated in Sec. 82.5(h) and Sec. 82.6(h).
    (o) Effective January 1, 2020, no person may produce or consume (as 
defined under Sec. 82.3 of this subpart) HCFC-22 or HCFC-142b for any 
purpose other than for use in a process resulting in their 
transformation, use in a process resulting in their destruction or for 
exceptions stated in paragraph (s) of this section.
    (p) Effective January 1, 2015, no person may produce or consume (as 
under defined under Sec. 82.3) class II substances not previously 
controlled, for any purpose other than for use in a process resulting 
in its transformation, use in a process resulting in their destruction, 
as a refrigerant in equipment manufactured before January 1, 2020, or 
for exceptions stated in paragraph (s) of this section, in excess of 
baseline production and consumption levels defined in Secs. 82.5(h) and 
82.6(h).
    (q) Effective January 1, 2030, no person may produce or consume 
class II substances, for any purpose other than for use in a process 
resulting in their transformation, use in a process resulting in their 
destruction, or for exceptions stated in paragraph (s) of this section.
    (r) Effective January 1, 1996, essential-use allowances are 
apportioned to a person for the exempted production or importation of 
specified class I (except class I, Group VI) controlled substances.
    (1) Essential-uses for the production or importation of controlled 
substances as agreed to by the Parties to the Protocol and subject to 
the periodic revision of the Parties are:
    (i) Metered Dose Inhalers--aerosols.
    (ii) Space Shuttle--solvents.
    (iii) Laboratory and Analytical Applications (see Appendix G of 
this subpart).
    (2) Persons in the following list are allocated essential-use 
allowances or exemptions for quantities of a specific class I 
controlled substance for a specific essential-use (the Administrator 
reserves the right to revise the allocations based on future decisions 
of the Parties).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                          Company                                Year                       Chemical                         Quantity (metric tons)     
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           (i) Metered Dose Inhalers--Aerosols                                                          
                                                                                                                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
Members of the International Pharmaceutical & Aerosol               1996  CFC-11.....................................  749.8.                           
 Consortium (IPAC)<SUP>1.                                                                                                                                    
    Abbot Laboratories.....................................  ...........  CFC-12 ....................................  2353.2.                          
    Armstrong..............................................  ...........  CFC-114....................................  314.1.                           
    Boehringer Ingelheim...................................         1997  CFC-11 ....................................  658.3.                           
    Glaxo..................................................  ...........  CFC-12 ....................................  2166.5.                          
    3M.....................................................  ...........  CFC-114....................................  311.4.                           
    Rhone Poulenc Rorer                                                                                                                                 
    Schering Corporation                                                                                                                                
Miles Inc..................................................         1996  CFC-12 ....................................  5.1.                             
                                                                          CFC-114....................................  10.2.                            
                                                                    1997  CFC-12.....................................  5.2.                             
                                                                          CFC-114....................................  10.5.                            
Sankofi Winthrop, Inc......................................         1996  CFC-12.....................................  5.0.                             
                                                                          CFC-114....................................  19.4.                            
                                                                    1997  CFC-12.....................................  5.3.                             
                                                                          CFC-114....................................  21.2.                            
                                                                                                                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              (ii) Space Shuttle--Solvent                                                               
                                                                                                                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
NASA/Thiokol...............................................         1996  Methyl Chloroform..........................  56.8.                            
                                                                    1997  Methyl Chloroform..........................  56.8.                            
                                                                                                                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      (iii) Laboratory and Analytical Applications                                                      
                                                                                                                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
Global Exemption...........................................         1996  Class I (except Group IV)..................  No quantity specified.           
                                                                    1997  ......do...................................        Do.                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\IPAC consolidated requests for an essential use exemption to be nominated to the Protocol as an agent of its member companies for administrative     
  convenience. By means of a confidential letter to each of the companies listed above, EPA will allocate essential-use allowances separately to each   
  company in the amount requested by it for the nomination.                                                                                             

    (s) The following exemptions apply to the production and 
consumption restrictions under paragraphs (l), (m), (n), (o), (p) and 
(q) of this section:
    (1) Medical Devices [Reserved]
    (2) Exports to developing countries [Reserved] [[Page 24991]] 


Sec. 82.5  Apportionment of baseline production allowances.

    Persons who produced controlled substances in Group I or Group II 
in 1986 are apportioned baseline production allowances as set forth in 
paragraphs (a) and (b) of this section. Persons who produced controlled 
substances in Group III, IV, or V in 1989 are apportioned baseline 
production allowances as set forth in paragraphs (c), (d), and (e) of 
this section. Persons who produced controlled substances in Group VI 
and VII in 1991 are apportioned baseline allowances as set forth in 
paragraphs (f) and (g) of this section.

                                                                        
                                                            Allowances  
   Controlled substance                Person                  (kg)     
                                                                        
  (a) For Group I controlled substances:                                
                                                                        
CFC-11...................  Allied-Signal, Inc...........      23,082,358
                           E.I. DuPont de Nemours & Co..      33,830,000
                           Elf Atochem, N.A.............      21,821,500
CFC-12...................  Laroche Chemicals............      12,856,364
                           Allied-Signal, Inc...........      35,699,776
                           E.I. DuPont de Nemours & Co..      64,849,000
                           Elf Atochem, N.A.............      31,089,807
CFC-113..................  Laroche Chemicals............      15,330,909
                           Allied-Signal, Inc...........      21,788,896
CFC-114..................  E.I. DuPont de Nemours & Co..      58,553,000
                           Allied-Signal, Inc...........       1,488,569
CFC-115..................  E.I. DuPont de Nemours & Co..       4,194,000
                           E.I. DuPont de Nemours & Co..       4,176,000
                                                                        
  (b) For Group II controlled substances:                               
                                                                        
Halon-1211...............  Great Lakes Chemical Corp....         826,487
                           ICI Americas, Inc............       2,135,484
Halon-1301...............  E.I. DuPont de Nemours & Co..       3,220,000
                           Great Lakes Chemical Corp....       1,766,850
Halon-2402                                                              
                                                                        
 (c) For Group III controlled substances:                               
                                                                        
CFC-13...................  Allied-Signal, Inc...........         127,125
                           E.I. DuPont de Nemours & Co..         187,831
                           Elf Atochem, N.A.............           3,992
                           Great Lakes Chemical Corp....          56,381
                           Laroche Chemicals............          29,025
CFC-111                                                                 
CFC-112                                                                 
CFC-211                    E.I. DuPont de Nemours & Co..              11
CFC-212..................  E.I. DuPont de Nemours & Co..              11
CFC-213..................  E.I. DuPont de Nemours & Co..              11
CFC-214..................  E.I. DuPont de Nemours & Co..              11
CFC-215..................  E.I. DuPont de Nemours & Co..             511
                           Halocarbon Products Corp.....           1,270
CFC-216..................  E.I. DuPont de Nemours & Co..         170,574
CFC-217..................  E.I. DuPont de Nemours & Co..             511
                                                                        
   (d) For Group IV controlled substances:                              
                                                                        
CCl<INF>4.....................  Akzo Chemicals, Inc..........       7,873,615
                           Degussa Corporation..........          26,546
                           Dow Chemical Company, USA....      18,987,747
                           E.I. DuPont de Nemours & Co..           9,099
                           Hanlin Chemicals-WV, Inc.....         219,616
                           ICI Americas, Inc............         853,714
                           Occidental Chemical Corp.....       1,059,358
                           Vulcan Chemicals.............      21,931,987
                                                                        
  (e) For Group V controlled substances:                                
                                                                        
Methyl Chloroform........  Dow Chemical Company, USA....     168,030,117
                           E.I. DuPont de Nemours & Co..               2
                           PPG Industries, Inc..........      57,450,719
                           Vulcan Chemicals.............      89,689,064
                                                                        
  (f) For Group VI controlled substances:                               
                                                                        
Methyl Bromide...........  Great Lakes Chemical               19,945,788
                            Corporation.                                
                           Ethyl Corporation............       8,233,894
                                                                        
   (g) For Group VII controlled substances:                             
                                                                        
HBFC 22B1-1..............  Great Lakes Chemical                  46,211 
                            Corporation.                                
  (h) For class II controlled substances: [Reserved]                    
                                                                        


[[Page 24992]]

Sec. 82.6  Apportionment of baseline consumption allowances.

    Persons who produced, imported, or produced and imported controlled 
substances in Group I or Group II in 1986 are apportioned chemical-
specific baseline consumption allowances as set forth in paragraphs (a) 
and (b) of this section. Persons who produced, imported, or produced 
and imported controlled substances in Group III, Group IV, or Group V 
in 1989 are apportioned chemical-specific baseline consumption 
allowances as set forth in paragraphs (c), (d) and (e) of this section. 
Persons who produced, imported, or produced and imported controlled 
substances in Group VI or VII in 1991 are apportioned chemical specific 
baseline consumption allowances as set forth in paragraphs (f) and (g) 
of this section.

                                                                        
   Controlled substance                Person             Allowances(kg)
                                                                        
  (a) For Group I controlled substances:                                
                                                                        
CFC-11...................  Allied-Signal, Inc...........      22,683,833
                           E.I. DuPont de Nemours & Co..      32,054,283
                           Elf Atochem, N.A.............      21,740,194
                           Hoechst Celanese Corporation.         185,396
                           ICI Americas, Inc............       1,673,436
                           Kali-Chemie Corporation......          82,500
                           Laroche Chemicals............      12,695,726
                           National Refrigerants, Inc...         693,707
                           Refricentro, Inc.............         160,697
                           Sumitomo Corporation of                 5,800
                            America.                                    
CFC-12...................  Allied-Signal, Inc...........      35,236,397
                           E.I. DuPont de Nemours & Co..      61,098,726
                           Elf Atochem, N.A.............      32,403,869
                           Hoechst Celanese Corporation.         138,865
                           ICI Americas, Inc............       1,264,980
                           Kali-Chemie Corporation......         355,440
                           Laroche Chemicals............      15,281,553
                           National Refrigerants, Inc...       2,375,384
                           Refricentro, Inc.............         242,526
CFC-113..................  Allied-Signal, Inc...........      18,241,928
                           E.I. DuPont de Nemours & Co..      49,602,858
                           Elf Atochem, N.A.............         244,908
                           Holchem......................         265,199
                           ICI Americas, Inc............       2,399,700
                           Refricentro, Inc.............          37,385
                           Sumitomo Corp. of America....         280,163
CFC-114..................  Allied-Signal, Inc...........       1,429,582
                           E.I. DuPont de Nemours & Co..       3,686,103
                           Elf Atochem, N.A.............          22,880
                           ICI Americas, Inc............          32,930
CFC-115..................  E.I. DuPont de Nemours & Co..       2,764,109
                           Elf Atochem, N.A.............         633,007
                           Hoechst Celanese Corporation.           8,893
                           ICI Americas, Inc............       2,366,351
                           Laroche Chemicals............         135,520
                           Refricentro, Inc.............          27,337
                                                                        
  (b) For Group II controlled substances:                               
                                                                        
Halon-1211...............  Elf Atochem, N.A.............         411,292
                           Great Lakes Chemical Corp....         772,775
                           ICI Americas, Inc............       2,116,641
                           Kali-Chemie Corporation......         330,000
Halon-1301...............  E.I. DuPont de Nemours & Co..       2,772,917
                           Elf Atochem, N.A.............          89,255
                           Great Lakes Chemical Corp....       1,744,132
                           Kali-Chemie Corporation......          54,380
Halon-2402...............  Ausimont.....................          34,400
                           Great Lakes Chemical Corp....          15,900
                                                                        
  (c) For Group III controlled substances:                              
                                                                        
CFC-13...................  Allied-Signal, Inc...........         127,124
                           E.I. DuPont de Nemours & Co..         158,508
                           Elf Atochem, N.A.............           3,992
                           Great Lakes Chemical Corp....          56,239
                           ICI Americas, Inc............           5,855
                           Laroche Chemicals............          29,025
[[Page 24993]]
                                                                        
                           National Refrigerants, Inc...          16,665
CFC-111                                                                 
CFC-112..................  Sumitomo Corp of America.....           5,912
                           TG (USA) Corporation.........           9,253
CFC-211..................  E.I. DuPont de Nemours & Co..              11
CFC-212..................  E.I. DuPont de Nemours & Co..              11
CFC-213..................  E.I. DuPont de Nemours & Co..              11
CFC-214..................  E.I. DuPont de Nemours & Co..              11
CFC-215..................  E.I. DuPont de Nemours & Co..             511
                           Halocarbon Products Corp.....           1,270
CFC-216..................  E.I. DuPont de Nemours & Co..         170,574
CFC-217..................  E.I. DuPont de Nemours & Co..             511
                                                                        
  (d) For Group IV controlled substances:                               
                                                                        
CCl<INF>4.....................  Crescent Chemical Co.........              56
                           Degussa Corporation..........          12,466
                           Dow Chemical Company, USA....       8,170,561
                           E.I. DuPont de Nemours & Co..          26,537
                           Elf Atochem, N.A.............              41
                           Hanlin Chemicals-WV, Inc.....         103,133
                           Hoechst Celanese Corporation.               3
                           ICC Chemical Corp............       1,173,723
                           ICI Americas, Inc............         855,466
                           Occidental Chemical Corp.....         497,478
                           Sumitomo Corporation of                     9
                            America.                                    
                                                                        
  (e) For Group V controlled substances:                                
                                                                        
Methyl Chloroform........  3V Chemical Corp.............           3,528
                           Actex, Inc...................          50,171
                           Atochem North America........          74,355
                           Dow Chemical Company, USA....     125,200,200
                           E.I. DuPont de Nemours & Co..               2
                           IBM..........................           2,026
                           ICI Americas, Inc............      14,179,850
                           Laidlaw......................         420,207
                           PPG Industries...............      45,254,115
                           Sumitomo.....................           1,954
                           TG (USA) Corporation.........           7,073
                           Unitor Ships Service, Inc....          14,746
                           Vulcan Chemicals.............      70,765,072
                                                                        
  (f) For Group VI controlled substances:                               
                                                                        
Methyl Bromide...........  Great Lakes Chemical               15,514,746
                            Corporation.                                
                           Ethyl Corporation............       6,379,906
                           AmeriBrom, Inc...............       3,524,393
                           TriCal, Inc..................         109,225
                                                                        
  (g) For Group VII controlled substances:                              
                                                                        
HBFC 22B1-1..............  Great Lakes Chemical                   40,110
                            Corporation.                                
                                                                        
  (h) For class II controlled substances: [Reserved]                    
                                                                        

Sec. 82.7  Grant and phased reduction of baseline production and 
consumption allowances for class I controlled substances.

    For each control period specified in the following table, each 
person is granted the specified percentage of the baseline production 
and consumption allowances apportioned to him under Secs. 82.5 and 
82.6.

                                                  [In percent]                                                  
----------------------------------------------------------------------------------------------------------------
                      Class I                                                                                   
                   substances in      Class I         Class I         Class I         Class I         Class I   
 Control period    groups I and    substances in   substances in   substances in   substances in   substances in
                        III          group II        group IV         group V        group VI        group VII  
----------------------------------------------------------------------------------------------------------------
1994............              25               0              50              50             100             100
1995............              25               0              15              30             100             100
1996............               0               0               0               0             100               0
1997............               0               0               0               0             100               0
1998............               0               0               0               0             100               0
1999............               0               0               0               0             100               0
[[Page 24994]]
                                                                                                                
2000............               0               0               0               0             100               0
2001............               0               0               0               0               0               0
----------------------------------------------------------------------------------------------------------------

Sec. 82.8  Grant and phased reduction of baseline production and 
consumption allowances for class II controlled substances. [Reserved]


Sec. 82.9  Availability of production allowances in addition to 
baseline production allowances.

    (a) Every person apportioned baseline production allowances for 
class I controlled substances under Sec. 82.5 (a) through (f) is also 
granted Article 5 allowances equal to:
    (1) 15 percent of their baseline production allowances for class I, 
Group II controlled substances listed under Sec. 82.5 for each control 
period beginning January 1, 1994 until January 1, 2003;
    (2) 10 percent of their baseline production allowance listed for 
class I, Group I, Group III, Group IV, and Group V controlled 
substances listed under Sec. 82.5 for each control period ending before 
January 1, 1996;
    (3) 15 percent of their baseline production allowances for class I, 
Group I, Group III, Group IV, and Group V controlled substances listed 
under Sec. 82.5 for each control period beginning January 1, 1996 until 
January 1, 2006.
    (b) Effective January 1, 1995, a person allocated Article 5 
allowances may produce class I controlled substances for export to 
Article 5 countries as under Sec. 82.11 and transfer Article 5 
allowances as under Sec. 82.12.
    (c) Until January 1, 1996, a company may also increase or decrease 
its production allowances by trading with another Party to the Protocol 
according to the provision under this paragraph (c) of this section. A 
nation listed in appendix C to this subpart (Parties to the Montreal 
Protocol) must agree either to transfer to the person for the current 
control period some amount of production that the nation is permitted 
under the Montreal Protocol or to receive from the person for the 
current control period some amount of production that the person is 
permitted under this subpart. If the controlled substance is to be 
returned to the Party from whom allowances are received, the request 
for production allowances shall also be considered a request for 
consumption allowances under Sec. 82.10(c). If the controlled substance 
is to be sold in the United States or to another Party (not the Party 
from whom the allowances are received), the U.S. company must expend 
its consumption allowances allocated under Secs. 82.6 and 82.7 in order 
to produce with the additional production allowances.
    (1) For trades from a Party, the person must obtain from the 
principal diplomatic representative in that nation's embassy in the 
United States a signed document stating that the appropriate authority 
within that nation has established or revised production limits for the 
nation to equal the lesser of the maximum production that the nation is 
allowed under the Protocol minus the amount transferred, the maximum 
production that is allowed under the nation's applicable domestic law 
minus the amount transferred, or the average of the nation's actual 
national production level for the three years prior to the transfer 
minus the production allowances transferred. The person must submit to 
the Administrator a transfer request that includes a true copy of this 
document and that sets forth the following:
    (i) The identity and address of the person;
    (ii) The identity of the Party;
    (iii) The names and telephone numbers of contact persons for the 
person and for the Party;
    (iv) The chemical type and level of production being transferred;
    (v) The control period(s) to which the transfer applies; and
    (vi) For increased production intended for export to the Party from 
whom the allowances would be received, a signed statement of intent to 
export to the Party.
    (2) For trades to a Party, a person must submit a transfer request 
that sets forth the following:
    (i) The identity and address of the person;
    (ii) The identity of the Party;
    (iii) The names and telephone numbers of contact persons for the 
person and for the Party;
    (iv) The chemical type and level of allowable production to be 
transferred; and
    (v) The control period(s) to which the transfer applies.
    (3) After receiving a transfer request that meets the requirements 
of paragraph (c)(2) of this section, the Administrator may, at his 
discretion, consider the following factors in deciding whether to 
approve such a transfer:
    (i) Possible creation of economic hardship;
    (ii) Possible effects on trade;
    (iii) Potential environmental implications; and
    (iv) The total amount of unexpended production allowances held by 
United States entities.
    (4) The Administrator will issue the person a notice either 
granting or deducting production allowances and specifying the control 
period to which the transfer applies, provided that the request meets 
the requirement of paragraph (c)(1) of this section for trades from 
Parties and paragraphs (c)(2) of this section for trades to Parties, 
unless the Administrator has decided to disapprove the trade under 
paragraph (c)(3) of this section for trades to Parties. For a trade 
from a Party, the Administrator will issue a notice that revises the 
allowances held by the person to equal the unexpended production 
allowances held by the person under this subpart plus the level of 
allowable production transferred from the Party. For a trade to a 
Party, the Administrator will issue a notice that revises the 
production limit for the person to equal the lesser of:
    (i) The unexpended production allowances held by the person under 
this subpart minus the amount transferred; or
    (ii) The unexpended production allowances held by the person under 
this subpart minus the amount by which the United States average annual 
production of the controlled substance being traded for the three years 
prior to the transfer is less than the total allowable production 
allowable for that substance under this subpart minus the amount 
transferred. The change in allowances will be effective on the date 
that the notice is issued.
    (5) If after one person obtains approval for a trade of allowable 
production of a controlled substance to a Party, one or more other 
persons obtain approval for trades involving the same controlled 
substance and the same control period, the Administrator will 
[[Page 24995]] issue notices revising the production limits for each of 
the other persons trading that controlled substance in that control 
period to equal the lesser of:
    (i) The unexpended production allowances held by the person under 
this subpart minus the amount transferred; or
    (ii) The unexpended production allowances held by the person under 
this subpart minus the amount by which the United States average annual 
production of the controlled substance being traded for the three years 
prior to the transfer is less than the total allowable production for 
that substance under this subpart multiplied by the amount transferred 
divided by the total amount transferred by all the other persons 
trading the same controlled substance in the same control period minus 
the amount transferred by that person.
    (iii) The Administrator will also issue a notice revising the 
production limit for each person who previously obtained approval of a 
trade of that substance in that control period to equal the unexpended 
production allowances held by the person under this subpart plus the 
amount by which the United States average annual production of the 
controlled substance being traded for the three years prior to the 
transfer is less than the total allowable production under this subpart 
multiplied by the amount transferred by that person divided by the 
amount transferred by all of the persons who have traded that 
controlled substance in that control period. The change in production 
allowances will be effective on the date that the notice is issued.
    (d) Effective January 1, 1996, there will be no trade in production 
or consumption allowances with other Parties to the Protocol for class 
I controlled substances, except for class I, Group VI, methyl bromide.
    (e) Until January 1, 1996, for all class I controlled substances, 
except Group VI, and until January 1, 2001, for class I, Group VI, a 
person may obtain production allowances for that controlled substance 
equal to the amount of that controlled substance produced in the United 
States that was transformed or destroyed within the United States, or 
transformed or destroyed by a person of another Party, in the cases 
where production allowances were expended to produce such substance in 
the U.S. in accordance with the provisions of this paragraph. A request 
for production allowances under this section will be considered a 
request for consumption allowances under Sec. 82.10(b).
    (1) Until January 1, 1996, for all class I controlled substances, 
except Group VI, and until January 1, 2001, for class I, Group VI, a 
person must submit a request for production allowances that includes 
the following:
    (i) The name, address, and telephone number of the person 
requesting the allowances, and the Employer Identification Number if 
the controlled substance is being exported;
    (ii) The name, quantity, and level of controlled substance 
transformed or the name, quantity and volume destroyed, and the 
commodity code if the substance was exported;
    (iii) A copy of the invoice or receipt documenting the sale of the 
controlled substance, including the name, address, contact person and 
telephone number of the transformer or destroyer;
    (iv) A certification that production allowances were expended for 
the production of the controlled substance, and the date of purchase, 
if applicable;
    (v) If the controlled substance is transformed, the name, quantity, 
and verification of the commercial use of the resulting chemical and a 
copy of the IRS certificate of intent to use the controlled substance 
as a feedstock; and,
    (vi) If the controlled substance is destroyed, the verification of 
the destruction efficiency.
    (2) Until January 1, 1996, for all class I controlled substances, 
except Group VI, and until January 1, 2001, for class I, Group VI, the 
Administrator will review the information and documentation submitted 
under paragraph (e)(1) of this section and will assess the quantity of 
class I controlled substance that the documentation and information 
verifies was transformed or destroyed. The Administrator will issue the 
person production allowances equivalent to the controlled substances 
that the Administrator determines were transformed or destroyed. For 
controlled substances completely destroyed under this rule, the Agency 
will grant allowances equal to 100 percent of volume intended for 
destruction. For those controlled substances destroyed at less than a 
98 percent destruction efficiency, the Agency will grant allowances 
commensurate with that percentage of destruction efficiency that is 
actually achieved. The grant of allowances will be effective on the 
date that the notice is issued.
    (3) Until January 1, 1996, for all class I controlled substances, 
except Group VI, and until January 1, 2001, for class I, Group VI, if 
the Administrator determines that the request for production allowances 
does not satisfactorily substantiate that the person transformed or 
destroyed controlled substances as claimed, or that modified allowances 
were not expended, the Administrator will issue a notice disallowing 
the request for additional production allowances. Within ten working 
days after receipt of notification, the person may file a notice of 
appeal, with supporting reasons, with the Administrator. The 
Administrator may affirm the disallowance or grant an allowance, as 
she/he finds appropriate in light of the available evidence. If no 
appeal is taken by the tenth day after notification, the disallowance 
will be final on that day.
    (f) Effective January 1, 1996, and until January 1, 2000, a person 
who was nominated by the United States to the Secretariat of the 
Montreal Protocol for an essential use exemption may obtain destruction 
and transformation credits for a class I controlled substance (except 
class I, Group VI) equal to the amount of that controlled substance 
produced in the United States that was destroyed or transformed within 
the United States in cases where the controlled substance was produced 
for other than destruction or transformation in accordance with the 
provisions of this subpart, subtracting an offset of 15 percent.
    (1) Effective January 1, 1996, and until January 1, 2000, a person 
must submit a request for destruction and transformation credits that 
includes the following:
    (i) The identity and address of the person and the essential-use 
exemption and years for which the person was nominated to the 
Secretariat of the Montreal Protocol;
    (ii) The name, quantity and volume of controlled substance 
destroyed or transformed;
    (iii) A copy of the invoice or receipt documenting the sale or 
transfer of the controlled substance to the person;
    (iv) A certification of the previous use of the controlled 
substance;
    (v) For destruction credits, a certification that the controlled 
substance was destroyed and a certification of the efficiency of the 
destruction process; and
    (vi) For transformation credits, an IRS certificate of feedstock 
use or transformation of the controlled substance.
    (2) Effective January 1, 1996, and until January 1, 2000, the 
Administrator will issue the person destruction and transformation 
credits equivalent to the class I controlled substance (except class I, 
Group VI) recovered from a use system in the United States, that the 
Administrator determines were destroyed or transformed, subtracting the 
offset of 15 percent. For controlled substances completely destroyed 
under [[Page 24996]] this rule, the Agency will grant destruction 
credits equal to 100 percent of volume destroyed minus the offset. For 
those controlled substances destroyed at less than a 98 percent 
destruction efficiency, the Agency will grant destruction credits 
commensurate with that percentage of destruction efficiency that is 
actually achieved minus the offset. The grant of credits will be 
effective on the date that the notice is issued.
    (3) Effective January 1, 1996, and until January 1, 2000, if the 
Administrator determines that the request for destruction and 
transformation credits does not satisfactorily substantiate that the 
person was nominated for an essential-use exemption by the United 
States to the Secretariat for the Montreal Protocol for the control 
period, or that the person destroyed or transformed a class I 
controlled substance as claimed, or that the controlled substance was 
not recovered from a U.S. use system the Administrator will issue a 
notice disallowing the request for additional destruction and 
transformation credits. Within ten working days after receipt of 
notification, the person may file a notice of appeal, with supporting 
reasons, with the Administrator. The Administrator may affirm the 
disallowance or grant an allowance, as she/he finds appropriate in 
light of the available evidence. If no appeal is taken by the tenth day 
after notification, the disallowance will be final on that day.


Sec. 82.10  Availability of consumption allowances in addition to 
baseline consumption allowances.

    (a) Until January 1, 1996, for all class I controlled substances, 
except Group VI, and until January 1, 2001 for class I, Group VI, any 
person may obtain, in accordance with the provisions of this 
subsection, consumption allowances equivalent to the level of class I 
controlled substances (other than used controlled substances or 
transhipments) that the person has exported from the United States and 
its territories to a Party (as listed in appendix C to this subpart).
    (1) Until January 1, 1996, for all class I controlled substances, 
except Group VI, and until January 1, 2001 for class I, Group VI, to 
receive consumption allowances in addition to baseline consumption 
allowances, the exporter of the class I controlled substances must 
submit to the Administrator a request for consumption allowances 
setting forth the following:
    (i) The identities and addresses of the exporter and the recipient 
of the exports;
    (ii) The exporter's Employer Identification Number;
    (iii) The names and telephone numbers of contact persons for the 
exporter and the recipient;
    (iv) The quantity and type of controlled substances exported;
    (v) The source of the controlled substance and the date purchased;
    (vi) The date on which, and the port from which, the controlled 
substances were exported from the United States or its territories;
    (vii) The country to which the controlled substances were exported;
    (viii) A copy of the bill of lading and the invoice indicating the 
net quantity of controlled substances shipped and documenting the sale 
of the controlled substances to the purchaser.
    (ix) The commodity code of the controlled substance exported; and
    (x) Written statement from the producer that the controlled 
substance was produced with expended allowances.
    (2) The Administrator will review the information and documentation 
submitted under paragraph (a)(1) of this section and will assess the 
quantity of controlled substances that the documentation verifies was 
exported. The Administrator will issue the exporter consumption 
allowances equivalent to the level of controlled substances that the 
Administrator determined were exported. The grant of the consumption 
allowances will be effective on the date the notice is issued. If the 
Administrator determines that the information and documentation does 
not satisfactorily substantiate that the person exported controlled 
substances as claimed the Administrator will issue a notice that the 
consumption allowances are not granted.
    (b) Until January 1, 1996, a person may obtain consumption 
allowances for a class I controlled substance (and until January 1, 
2001 for class I, Group VI) equal to the amount of a controlled 
substance either produced in, or imported into, the United States that 
was transformed or destroyed in the case where consumption allowances 
were expended to produce or import such substance in accordance with 
the provisions of this paragraph. However, a person producing or 
importing a controlled substance (except class I, Group VI) that was 
transformed or destroyed must submit to the Administrator the 
information described under Sec. 82.13 (f)(3)(i) and (ii).
    (c) A company may also increase its consumption allowances by 
receiving production from another Party to the Protocol for class I, 
Group I through Group V and Group VII controlled substances until 
January 1, 1996, and for class I, Group VI controlled substances until 
January 1, 2001. A nation listed in appendix C to this subpart (Parties 
to the Montreal Protocol) must agree to transfer to the person for the 
current control period some amount of production that the nation is 
permitted under the Montreal Protocol. If the controlled substance is 
to be returned to the Party from whom allowances are received, the 
request for consumption allowances shall also be considered a request 
for production allowances under Sec. 82.9(c). For trades from a Party, 
the person must obtain from the principal diplomatic representative in 
that nation's embassy in the United States a signed document stating 
that the appropriate authority within that nation has established or 
revised production limits for the nation to equal the lesser of the 
maximum production that the nation is allowed under the Protocol minus 
the amount transferred, the maximum production that is allowed under 
the nation's applicable domestic law minus the amount transferred, or 
the average of the nation's actual national production level for the 
three years prior to the transfer minus the production allowances 
transferred. The person must submit to the Administrator a transfer 
request that includes a true copy of this document and that sets forth 
the following:
    (1) The identity and address of the person;
    (2) The identity of the Party;
    (3) The names and telephone numbers of contact persons for the 
person and for the Party;
    (4) The chemical type and level of production being transferred;
    (5) The control period(s) to which the transfer applies; and
    (6) For increased production intended for export to the Party from 
whom allowances would be received, a signed statement of intent to 
export to this Party.
    (d) On the first day of each control period, until January 1, 1996, 
the Agency will grant consumption allowances to any person that 
produced and exported a Group IV controlled substance in the baseline 
year and that was not granted baseline consumption allowances under 
Sec. 82.5.
    (1) The number of consumption allowances any such person will be 
granted for each control period will be equal to the number of 
production allowances granted to that person under Sec. 82.7 for that 
control period.
    (2) Any person granted allowances under this paragraph must hold 
the same number of unexpended consumption allowances for the control 
[[Page 24997]] period for which the allowances were granted by February 
15 of the following control period. Every kilogram by which the 
person's unexpended consumption allowances fall short of the amount the 
person was granted under this paragraph constitutes a separate 
violation.


Sec. 82.11  Exports to Article 5 Parties.

    (a) If apportioned Article 5 allowances under Sec. 82.9(a), a 
person may produce class I controlled substances, in accordance with 
the prohibitions in Sec. 82.4, to be exported (not including exports 
resulting in transformation or destruction, or used controlled 
substances) to foreign states listed in appendix E to this subpart 
(Article 5 countries).
    (1) A person must submit a notice to the Administrator of exports 
to Article 5 countries (except exports resulting in transformation or 
destruction, or used controlled substances) at the end of the quarter 
that includes the following:
    (i) The identities and addresses of the exporter and the Article 5 
country recipient of the exports;
    (ii) The exporter's Employee Identification Number;
    (iii) The names and telephone numbers of contact persons for the 
exporter and for the recipient;
    (iv) The quantity and the type of controlled substances exported, 
its source and date purchased;
    (v) The date on which, and the port from which, the controlled 
substances were exported from the United States or its territories;
    (vi) The Article 5 country to which the controlled substances were 
exported;
    (vii) A copy of the bill of lading and invoice indicating the net 
quantity shipped and documenting the sale of the controlled substances 
to the Article 5 purchaser;
    (viii) The commodity code of the controlled substance exported; and
    (ix) A copy of the invoice or sales agreement covering the sale of 
the controlled substances to the recipient Article 5 country that 
contains provisions forbidding the reexport of the controlled substance 
in bulk form and subjecting the recipient or any transferee of the 
recipient to liquidated damages equal to the resale price of the 
controlled substances if they are reexported in bulk form.
    (2) [Reserved]
    (b) [Reserved]


Sec. 82.12   Transfers.

    (a) Inter-company transfers.
    (1) Until January 1, 1996, for all class I controlled substances, 
except for Group VI, and until January 1, 2001, for Group VI, any 
person (``transferor'') may transfer to any other person 
(``transferee'') any amount of the transferor's consumption allowances 
or production allowances, and effective January 1, 1995, for all class 
I controlled substances any person (``transferor'') may transfer to any 
other person (``transferee'') any amount of the transferor's Article 5 
allowances, as follows:
    (i) The transferor must submit to the Administrator a transfer 
claim setting forth the following:
    (A) The identities and addresses of the transferor and the 
transferee;
    (B) The name and telephone numbers of contact persons for the 
transferor and the transferee;
    (C) The type of allowances being transferred, including the names 
of the controlled substances for which allowances are to be 
transferred;
    (D) The group of controlled substances to which the allowances 
being transferred pertains;
    (E) The amount of allowances being transferred;
    (F) The control period(s) for which the allowances are being 
transferred;
    (G) The amount of unexpended allowances of the type and for the 
control period being transferred that the transferor holds under 
authority of this subpart as of the date the claim is submitted to EPA; 
and
    (H) The amount of the one percent offset applied to the unweighted 
amount traded that will be deducted from the transferor's allowance 
balance (except for trades from transformers and destroyers to 
producers or importers for the purpose of allowance reimbursement).
    (ii) The Administrator will determine whether the records 
maintained by EPA, taking into account any previous transfers and any 
production, allowable imports and exports of controlled substances 
reported by the transferor, indicate that the transferor possesses, as 
of the date the transfer claim is processed, unexpended allowances 
sufficient to cover the transfer claim (i.e., the amount to be 
transferred plus, in the case of transferors of production or 
consumption allowances, one percent of that amount). Within three 
working days of receiving a complete transfer claim, the Administrator 
will take action to notify the transferor and transferee as follows:
    (A) If EPA's records show that the transferor has sufficient 
unexpended allowances to cover the transfer claim, the Administrator 
will issue a notice indicating that EPA does not object to the transfer 
and will reduce the transferor's balance of unexpended allowances by 
the amount to be transferred plus, in the case of transfers of 
production or consumption allowances, one percent of that amount. When 
EPA issues a no objection notice, the transferor and the transferee may 
proceed with the transfer. However, if EPA ultimately finds that the 
transferor did not have sufficient unexpended allowances to cover the 
claim, the transferor and transferee will be held liable for any 
violations of the regulations of this subpart that occur as a result 
of, or in conjunction with, the improper transfer.
    (B) If EPA's records show that the transferor has insufficient 
unexpended allowances to cover the transfer claim, or that the 
transferor has failed to respond to one or more Agency requests to 
supply information needed to make a determination, the Administrator 
will issue a notice disallowing the transfer. Within 10 working days 
after receipt of notification, either party may file a notice of 
appeal, with supporting reasons, with the Administrator. The 
Administrator may affirm or vacate the disallowance. If no appeal is 
taken by the tenth working day after notification, the disallowance 
shall be final on that day.
    (iii) In the event that the Administrator does not respond to a 
transfer claim within the three working days specified in paragraph 
(a)(1)(ii) of this section, the transferor and transferee may proceed 
with the transfer. EPA will reduce the transferor's balance of 
unexpended allowances by the amount to be transferred plus, in the case 
of transfers of production or consumption allowances, one percent of 
that amount. However, if EPA ultimately finds that the transferor did 
not have sufficient unexpended allowances to cover the claim, the 
transferor and transferee will be held liable for any violations of the 
regulations of this subpart that occur as a result of, or in 
conjunction with, the improper transfer.
    (2) Effective January 1, 1996, any person (``transferor'') may 
transfer to an eligible person (``transferee'') as defined in Sec. 82.9 
any amount of the transferor's destruction and transformation credits. 
The transfer proceeds as follows:
    (i) The transferor must submit to the Administrator a transfer 
claim setting forth the following:
    (A) The identities and addresses of the transferor and the 
transferee;
    (B) The name and telephone numbers of contact persons for the 
transferor and the transferee;
    (C) The type of credits being transferred, including the names of 
the [[Page 24998]] controlled substances for which credits are to be 
transferred;
    (D) The group of controlled substances to which the credits being 
transferred pertains;
    (E) The amount of destruction and transformation credits being 
transferred;
    (F) The control period(s) for which the destruction and 
transformation credits are being transferred;
    (G) The amount of unexpended destruction and transformation credits 
for the control period being transferred that the transferor holds 
under authority of this subpart as of the date the claim is submitted 
to EPA; and
    (H) The amount of the one-percent offset applied to the unweighted 
amount traded that will be deducted from the transferor's balance.
    (ii) The Administrator will determine whether the records 
maintained by EPA, taking into account any previous transfers and any 
production of controlled substances reported by the transferor, 
indicate that the transferor possesses, as of the date the transfer 
claim is processed, unexpended destruction and transformation credits 
sufficient to cover the transfer claim (i.e., the amount to be 
transferred plus one percent of that amount). Within three working days 
of receiving a complete transfer claim, the Administrator will take 
action to notify the transferor and transferee as follows:
    (A) If EPA's records show that the transferor has sufficient 
unexpended destruction and transformation credits to cover the transfer 
claim, the Administrator will issue a notice indicating that EPA does 
not object to the transfer and will reduce the transferor's balance of 
unexpended or credits by the amount to be transferred plus one percent 
of that amount. When EPA issues a no objection notice, the transferor 
and the transferee may proceed with the transfer. However, if EPA 
ultimately finds that the transferor did not have sufficient unexpended 
credits to cover the claim, the transferor and transferee will be held 
liable for any violations of the regulations of this subpart that occur 
as a result of, or in conjunction with, the improper transfer.
    (B) If EPA's records show that the transferor has insufficient 
unexpended destruction and transformation credits to cover the transfer 
claim, or that the transferor has failed to respond to one or more 
Agency requests to supply information needed to make a determination, 
the Administrator will issue a notice disallowing the transfer. Within 
10 working days after receipt of notification, either party may file a 
notice of appeal, with supporting reasons, with the Administrator. The 
Administrator may affirm or vacate the disallowance. If no appeal is 
taken by the tenth working day after notification, the disallowance 
shall be final on that day.
    (iii) In the event that the Administrator does not respond to a 
transfer claim within the three working days specified in paragraph 
(a)(2)(ii) of this section, the transferor and transferee may proceed 
with the transfer. EPA will reduce the transferor's balance of 
unexpended destruction and transformation credits by the amount to be 
transferred plus one percent of that amount. However, if EPA ultimately 
finds that the transferor did not have sufficient unexpended credits to 
cover the claim, the transferor and transferee will be held liable for 
any violations of the regulations of this subpart that occur as a 
result of, or in conjunction with, the improper transfer.
    (b) Inter-pollutant conversions.
    (1) Until January 1, 1996, for all class I controlled substances, 
except Group VI, and until January 1, 2001 for Group VI, any person 
(``convertor'') may convert consumption allowances or production 
allowances for one class I controlled substance to the same type of 
allowance for another class I controlled substance within the same 
Group as the first as listed in appendix A of this subpart, following 
the procedures described in paragraph (b)(4) of this section.
    (2) Effective January 1, 1995, any person (``convertor'') may 
convert Article 5 allowances for one class I controlled substance to 
the same type of allowance for another class I controlled substance 
within the same Group of controlled substances as the first as listed 
in appendix A of this subpart, following the procedures described in 
paragraph (b)(4) of this section.
    (3) Effective January 1, 1996, any person (``convertor'') may 
convert destruction and/or transformation credits for one class I 
controlled substance to the same type of credits for another class I 
controlled substance within the same Group of controlled substances as 
the first as listed in appendix A of this subpart, following the 
procedures in paragraph (b)(4) of this section.
    (4) The convertor must submit to the Administrator a conversion 
claim.
    (i) The conversion claim would include the following:
    (A) The identity and address of the convertor;
    (B) The name and telephone number of a contact person for the 
convertor;
    (C) The type of allowances or credits being converted, including 
the names of the controlled substances for which allowances or credits 
are to be converted;
    (D) The group of controlled substances to which the allowances or 
credits being converted pertains;
    (E) The amount and type of allowances or credits to be converted;
    (F) The amount of allowances or credits to be subtracted from the 
convertor's unexpended allowances or credits for the first controlled 
substance, to be equal to 101 percent of the amount of allowances or 
credits converted;
    (G) The amount of allowances or credits to be added to the 
convertor's unexpended allowances or credits for the second controlled 
substance, to be equal to the amount of allowances or credits for the 
first controlled substance being converted multiplied by the quotient 
of the ozone depletion factor of the first controlled substance divided 
by the ozone depletion factor of the second controlled substance, as 
listed in Appendix A to this subpart;
    (H) The control period(s) for which the allowances or credits are 
being converted; and
    (I) The amount of unexpended allowances or credits of the type and 
for the control period being converted that the convertor holds under 
authority of this subpart as of the date the claim is submitted to EPA.
    (ii) The Administrator will determine whether the records 
maintained by EPA, taking into account any previous conversions, any 
transfers, any credits, and any production, imports (not including 
transhipments or used controlled substances), or exports (not including 
transhipments or used controlled substances) of controlled substances 
reported by the convertor, indicate that the convertor possesses, as of 
the date the conversion claim is processed, unexpended allowances or 
credits sufficient to cover the conversion claim (i.e., the amount to 
be converted plus one percent of that amount). Within three working 
days of receiving a complete conversion claim, the Administrator will 
take action to notify the convertor as follows:
    (A) If EPA's records show that the convertor has sufficient 
unexpended allowances or credits to cover the conversion claim, the 
Administrator will issue a notice indicating that EPA does not object 
to the conversion and will reduce the convertor's balance of unexpended 
allowances or credits by the amount to be converted plus one percent of 
that amount. When EPA issues a no objection notice, the convertor may 
proceed with the conversion. However, if EPA ultimately finds that the 
convertor did not have sufficient unexpended allowances or 
[[Page 24999]] credits to cover the claim, the convertor will be held 
liable for any violations of the regulations of this subpart that occur 
as a result of, or in conjunction with, the improper conversion.
    (B) If EPA's records show that the convertor has insufficient 
unexpended allowances or credits to cover the conversion claim, or that 
the convertor has failed to respond to one or more Agency requests to 
supply information needed to make a determination, the Administrator 
will issue a notice disallowing the conversion. Within 10 working days 
after receipt of notification, the convertor may file a notice of 
appeal, with supporting reasons, with the Administrator. The 
Administrator may affirm or vacate the disallowance. If no appeal is 
taken by the tenth working day after notification, the disallowance 
shall be final on that day.
    (iii) In the event that the Administrator does not respond to a 
conversion claim within the three working days specified in paragraph 
(b)(4)(ii) of this section, the convertor may proceed with the 
conversion. EPA will reduce the convertor's balance of unexpended 
allowances or credits by the amount to be converted plus one percent of 
that amount. However, if EPA ultimately finds that the convertor did 
not have sufficient unexpended allowances or credits to cover the 
claims, the convertor will be held liable for any violations of the 
regulations of this subpart that occur as a result of, or in 
conjunction with, the improper conversion.
    (5) Effective January 1, 1995, and for every control period 
thereafter, inter-pollutant trades will be permitted during the 45 days 
after the end of a control period.
    (c) Inter-company transfers and Inter-pollutant conversions.
    (1) Until January 1, 1996, for production and consumption 
allowances; effective January 1, 1995, for Article 5 allowances; and 
effective January 1, 1996, for destruction and/or transformation 
credits; if a person requests an inter-company transfer and an inter-
pollutant conversion simultaneously, the amount subtracted from the 
convertor-transferor's unexpended allowances or unexpended credits for 
the first controlled substance will be equal to 101 percent of the 
amount of allowances or credits that are being converted and 
transferred.
    (2) [Reserved]


Sec. 82.13   Recordkeeping and reporting requirements.

    (a) Unless otherwise specified, the recordkeeping and reporting 
requirements set forth in this section take effect on January 1, 1995.
    (b) Reports and records required by this section may be used for 
purposes of compliance determinations. These requirements are not 
intended as a limitation on the use of other evidence admissible under 
the Federal Rules of Evidence. Failure to provide the reports and 
records required by this section, and to certify the accuracy of the 
information in the reports and records required by this section, will 
be considered a violation of this subpart.
    (c) Unless otherwise specified, reports required by this section 
must be mailed to the Administrator within 45 days of the end of the 
applicable reporting period.
    (d) Records and copies of reports required by this section must be 
retained for three years.
    (e) In reports required by this section, quantities of controlled 
substances must be stated in terms of kilograms.
    (f) Every person (``producer'') who produces class I controlled 
substances during a control period must comply with the following 
recordkeeping and reporting requirements:
    (1) Within 120 days of May 10, 1995, or within 120 days of the date 
that a producer first produces a class I controlled substance, 
whichever is later, every producer who has not already done so must 
submit to the Administrator a report describing:
    (i) The method by which the producer in practice measures daily 
quantities of controlled substances produced;
    (ii) Conversion factors by which the daily records as currently 
maintained can be converted into kilograms of controlled substances 
produced, including any constants or assumptions used in making those 
calculations (e.g., tank specifications, ambient temperature or 
pressure, density of the controlled substance);
    (iii) Internal accounting procedures for determining plant-wide 
production;
    (iv) The quantity of any fugitive losses accounted for accounted 
for in the production figures; and
    (v) The estimated percent efficiency of the production process for 
the controlled substance. Within 60 days of any change in the 
measurement procedures or the information specified in the above 
report, the producer must submit a report specifying the revised data 
or procedures to the Administrator.
    (2) Every producer of a class I controlled substance during a 
control period must maintain the following records:
    (i) Dated records of the quantity of each controlled substance 
produced at each facility;
    (ii) Dated records of the quantity of controlled substances 
produced for use in processes that result in their transformation or 
for use in processes that result in their destruction and quantity sold 
for use in processes that result in their transformation or for use in 
processes that result in their destruction;
    (iii) Dated records of the quantity of controlled substances 
produced for an essential-use and quantity sold for use in an 
essential-use process;
    (iv) Dated records of the quantity of controlled substances 
produced with expended destruction and/or transformation credits;
    (v) Dated records of the quantity of controlled substances produced 
with Article 5 allowances;
    (vi) Copies of invoices or receipts documenting sale of controlled 
substance for use in processes resulting in their transformation or for 
use in processes resulting in destruction;
    (vii) Dated records of the quantity of each controlled substance 
used at each facility as feedstocks or destroyed in the manufacture of 
a controlled substance or in the manufacture of any other substance, 
and any controlled substance introduced into the production process of 
the same controlled substance at each facility;
    (viii) Dated records identifying the quantity of each chemical not 
a controlled substance produced within each facility also producing one 
or more controlled substances;
    (ix) Dated records of the quantity of raw materials and feedstock 
chemicals used at each facility for the production of controlled 
substances;
    (x) Dated records of the shipments of each controlled substance 
produced at each plant;
    (xi) The quantity of controlled substances, the date received, and 
names and addresses of the source of used materials containing 
controlled substances which are recycled or reclaimed at each plant;
    (xii) Records of the date, the controlled substance, and the 
estimated quantity of any spill or release of a controlled substance 
that equals or exceeds 100 pounds;
    (xiii) Internal Revenue Service Certificates in the case of 
transformation, or the destruction verification in the case of 
destruction (as in Sec. 82.13(k)), showing that the purchaser or 
recipient of a controlled substance, in the United States or in another 
country that is a Party, certifies the intent to either transform or 
destroy the controlled substance, or sell the controlled substance for 
transformation or destruction in cases when production 
[[Page 25000]] and consumption allowances were not expended;
    (xiv) Written verifications that essential-use allowances were 
conveyed to the producer for the production of specified quantities of 
a specific controlled substance that will only be used for the named 
essential-use;
    (xv) Written certifications that quantities of controlled 
substances, meeting the purity criteria in Appendix G of this subpart, 
were purchased by distributors of laboratory supplies or by laboratory 
customers to be used only for an essential-use laboratory application, 
and not to be resold or used in manufacturing.
    (xvi) Written verifications from a U.S. purchaser that the 
controlled substance was exported to an Article 5 country in cases when 
Article 5 allowances were expended during production.
    (3) For each quarter, each producer of a class I controlled 
substance must provide the Administrator with a report containing the 
following information:
    (i) The production by company in that quarter of each controlled 
substance, specifying the quantity of any controlled substance used in 
processing, resulting in its transformation by the producer;
    (ii) The amount of production for use in processes resulting in 
destruction of controlled substances by the producer;
    (iii) The levels of production (expended allowances and credits) 
for each controlled substance;
    (iv) The producer's total of expended and unexpended production 
allowances, consumption allowances, Article 5 allowances, and amount of 
essential-use allowances and destruction and transformation credits 
conferred at the end of that quarter;
    (v) The quantity of used material received containing controlled 
substances that are recycled or reclaimed;
    (vi) The amount of controlled substance sold or transferred during 
the quarter to a person other than the producer for use in processes 
resulting in its transformation or eventual destruction;
    (vii) A list of the quantities and names of controlled substances 
exported, by the producer and or by other U.S. companies, to a Party to 
the Protocol that will be transformed or destroyed and therefore were 
not produced expending production or consumption allowances;
    (viii) For transformation in the United States or by a person of 
another Party, one copy of an IRS certification of intent to transform 
the same controlled substance for a particular transformer and a list 
of additional quantities shipped to that same transformer for the 
quarter;
    (ix) For destruction in the United States or by a person of another 
Party, one copy of a destruction verification (as under Sec. 82.13(k)) 
for a particular destroyer, destroying the same controlled substance, 
and a list of additional quantities shipped to that same destroyer for 
the quarter;
    (x) A list of U.S. purchasers of controlled substances that 
exported to an Article 5 country in cases when Article 5 allowances 
were expended during production;
    (xi) A list of the essential-use allowance holders, distributors of 
laboratory supplies and laboratory customers from whom orders were 
placed and the quantity of specific essential-use controlled substances 
requested and produced;
    (xii) The certifications from essential-use allowance holders and 
laboratory customers stating that the controlled substances were 
purchased solely for specified essential uses and will not be resold or 
used in manufacturing; and
    (xiii) In the case of laboratory essential uses, a certification 
from distributors of laboratory supplies that controlled substances 
were purchased for sale to laboratory customers who certify that the 
substances will only be used for laboratory applications and will not 
be resold or used in manufacturing.
    (4) For any person who fails to maintain the records required by 
this paragraph, or to submit the report required by this paragraph, the 
Administrator may assume that the person has produced at full capacity 
during the period for which records were not kept, for purposes of 
determining whether the person has violated the prohibitions at 
Sec. 82.4.
    (g) Importers of class I controlled substances during a control 
period must comply with record-keeping and reporting requirements 
specified in this paragraph (g).
    (1) Recordkeeping--Importers. Any importer of a class I controlled 
substance (including used, recycled and reclaimed controlled 
substances) must maintain the following records:
    (i) The quantity of each controlled substance imported, either 
alone or in mixtures, including the percentage of each mixture which 
consists of a controlled substance;
    (ii) The quantity of those controlled substances imported that are 
used (including recycled or reclaimed) and the information provided 
with the petition as under Sec. 82.13(g)(2);
    (iii) The quantity of controlled substances other than 
transhipments or used, recycled or reclaimed substances imported for 
use in processes resulting in their transformation or destruction and 
quantity sold for use in processes that result in their destruction or 
transformation;
    (iv) The date on which the controlled substances were imported;
    (v) The port of entry through which the controlled substances 
passed;
    (vi) The country from which the imported controlled substances were 
imported;
    (vii) The commodity code for the controlled substances shipped;
    (viii) The importer number for the shipment;
    (ix) A copy of the bill of lading for the import;
    (x) The invoice for the import;
    (xi) The quantity of imports of used, recycled or reclaimed class I 
controlled substances and class II controlled substances;
    (xii) The U.S. Customs entry form;
    (xiii) Dated records documenting the sale or transfer of controlled 
substances for use in processes resulting in transformation or 
destruction;
    (xiv) Copies of IRS certifications that the controlled substance 
will be transformed or destruction verifications that it will be 
destroyed (as in Sec. 82.13(k));
    (xv) Dated records of the quantity of controlled substances 
imported for an essential-use or imported with destruction and 
transformation credits; and
    (xvi) Copies of documents conveying the right to import controlled 
substances for specific essential uses, or certifications that imported 
controlled substances are being purchased for essential laboratory and 
analytical applications or being purchased for eventual sale to 
laboratories that certify the controlled substances are for essential 
laboratory applications.
    (2) Petitioning--Importers of Used, Recycled or Reclaimed 
Controlled Substances and Transhipments.
    For each individual shipment (not to be aggregated) over 150 pounds 
of a used, recycled or reclaimed controlled substance as defined in 
Sec. 82.3, an importer must submit to the Administrator, at least 15 
working days before the shipment is to leave the foreign port of 
export, the following information in a petition:
    (i) The name and quantity of the used, recycled or reclaimed 
controlled substance to be imported (including material that has been 
recycled or reclaimed);
    (ii) The name and address of the importer, the importer ID number, 
the contact person, and the phone and fax numbers; [[Page 25001]] 
    (iii) Name and address of the source(s) of the used, recycled or 
reclaimed controlled substance, including a description of the previous 
use(s), when possible;
    (iv) Name and address of the exporter and/or foreign owner of the 
material,
    (v) The U.S. port of entry for the import, the expected date of 
shipment and the vessel transporting the chemical;
    (vi) The intended use of the used, recycled or reclaimed controlled 
substance;
    (vii) The name, address and contact person of the U.S. reclamation 
facility, where applicable;
    (viii) A certification that the purchaser of the used, recycled or 
reclaimed controlled substance being imported is liable for payment of 
the tax;
    (ix) If the imported controlled substance was reclaimed in a 
foreign Party, the name and address of the foreign reclamation 
facility, the contact person at the facility, and the phone and fax 
number;
    (x) If the imported used controlled substance is intended to be 
sold as a refrigerant in the U.S., the name and address of the U.S. 
reclaimer who will bring the material to the standard required under 
section 608 (Sec. 82.152(g)) of the CAA, if not already reclaimed to 
those specifications.
    (3) The Administrator will review the information submitted under 
paragraph (g)(2) of this section and assess the completeness and 
accuracy of the petition for the import of the used, recycled or 
reclaimed controlled substance. If the Administrator determines that 
the information is insufficient, or there is reason to disallow the 
import, the Administrator will issue an objection notice before the 
shipment is to leave the foreign port of export (the end of the 15 
working days). In the event that the Administrator does not respond to 
the petition within the 15 working days, the importer may proceed with 
the import. The importer may re-petition the Agency, if the 
Administrator indicated insufficient information to make a 
determination.
    (3) Reporting Requirements--Importers. For each quarter, every 
importer of a class I controlled substance (including importers of 
used, recycled or reclaimed controlled substances) must submit to the 
Administrator a report containing the following information:
    (i) Summaries of the records required in paragraphs (g)(1) (i) 
through (xvi) of this section for the previous quarter;
    (ii) The total quantity imported in kilograms of each controlled 
substance for that quarter;
    (iii) The quantity of those controlled substances imported that are 
used, recycled or reclaimed;
    (iv) The levels of import (expended consumption allowances before 
January 1, 1996) of controlled substances for that quarter and totaled 
by chemical for the control-period-to-date;
    (vii) The importer's total sum of expended and unexpended 
consumption allowances by chemical as of the end of that quarter;
    (viii) The amount of controlled substances imported for use in 
processes resulting in their transformation or destruction;
    (ix) The amount of controlled substances sold or transferred during 
the quarter to each person for use in processes resulting in their 
transformation or eventual destruction;
    (x) The amount of controlled substances sold or transferred during 
the quarter to each person for an essential use;
    (xi) The amount of controlled substances imported with destruction 
and transformation credits;
    (xii) Internal Revenue Service Certificates showing that the 
purchaser or recipient of imported controlled substances intends to 
transform those substances or destruction verifications (as in 
Sec. 82.13(k)) showing that purchaser or recipient intends to destroy 
the controlled substances; and
    (xiii) A list of the essential-use allowance holder and/or 
laboratory from whom orders were placed and the quantity of specific 
essential-use controlled substances requested and imported.
    (h) Reporting Requirements--Exporters. For any exports of class I 
controlled substances not reported under Sec. 82.10 (additional 
consumption allowances), or under Sec. 82.13(f)(3) (reporting for 
producers of controlled substances), the exporter who exported a class 
I controlled substances must submit to the Administrator the following 
information within 45 days after the end of the control period in which 
the unreported exports left the United States:
    (1) The names and addresses of the exporter and the recipient of 
the exports;
    (2) The exporter's Employee Identification Number;
    (3) The type and quantity of each controlled substance exported and 
what percentage, if any, of the controlled substance is used, recycled 
or reclaimed;
    (4) The date on which, and the port from which, the controlled 
substances were exported from the United States or its territories;
    (5) The country to which the controlled substances were exported;
    (6) The amount exported to each Article 5 country;
    (7) The commodity code of the controlled substance shipped; and
    (8) The sales contract certifying that the controlled substance 
that was exported to a Party to the Protocol will be transformed or 
destroyed.
    (i) Every person who has requested additional production allowances 
under Sec. 82.9(e) or destruction and transformation credits under 
Sec. 82.9(f) or consumption allowances under Sec. 82.10(b) or who 
transforms or destroys class I controlled substances not produced by 
that person must maintain the following:
    (1) Dated records of the quantity and level of each controlled 
substance transformed or destroyed;
    (2) Copies of the invoices or receipts documenting the sale or 
transfer of the controlled substance to the person;
    (3) In the case where those controlled substances are transformed, 
dated records of the names, commercial use, and quantities of the 
resulting chemical(s);
    (4) In the case where those controlled substances are transformed, 
dated records of shipments to purchasers of the resulting chemical(s);
    (5) Dated records of all shipments of controlled substances 
received by the person, and the identity of the producer or importer of 
the controlled substances;
    (6) Dated records of inventories of controlled substances at each 
plant on the first day of each quarter; and
    (7) A copy of the person's IRS certification of intent to transform 
or the purchaser's or recipient's destruction verification of intent to 
destroy (as under Sec. 82.13(k)), in the case where substances were 
purchased or transferred for transformation or destruction purposes.
    (j) Persons who destroy class I controlled substances shall, 
following promulgation of this rule, provide EPA with a one-time report 
stating the destruction unit's destruction efficiency and the methods 
used to record the volume destroyed and those used to determine 
destruction efficiency and the name of other relevant federal or state 
regulations that may apply to the destruction process. Any changes to 
the unit's destruction efficiency or methods used to record volume 
destroyed and to determine destruction efficiency must be reflected in 
a revision to this report [[Page 25002]] to be submitted to EPA within 
60 days of the change.
    (k) Persons who purchase or receive and subsequently destroy 
controlled class I substances that were originally produced without 
expending allowances shall provide the producer or importer from whom 
they purchased or received the controlled substances with a 
verification that controlled substances will be used in processes that 
result in their destruction.
    (1) The destruction verification shall include the following:
    (i) Identity and address of the person intending to destroy 
controlled substances;
    (ii) Indication of whether those controlled substances will be 
completely destroyed, as defined in Sec. 82.3 of this rule, or less 
than completely destroyed, in which case the destruction efficiency at 
which such substances will be destroyed must be included;
    (iii) Period of time over which the person intends to destroy 
controlled substances; and
    (iv) Signature of the verifying person.
    (2) If, at any time, any aspects of this verification change, the 
person must submit a revised verification reflecting such changes to 
the producer from whom that person purchases controlled substances 
intended for destruction.
    (l) Persons who purchase class I controlled substances and who 
subsequently transform such controlled substances shall provide the 
producer or importer with the IRS certification that the controlled 
substances are to be used in processes resulting in their 
transformation.
    (m) Any person who transforms or destroys class I controlled 
substances who has submitted an IRS certificate of intent to transform 
or a destruction verification (as under Sec. 82.13(k)) to the producer 
of the controlled substance, must report the names and quantities of 
class I controlled substances transformed and destroyed for each 
control period within 45 days of the end of such control period.
    (n) Every person who produces, imports, or exports class II 
chemicals must report its quarterly level of production, imports, and 
exports of these chemicals within 45 days of the end of each quarter 
(including those substances transformed or destroyed).
    (o) Every person who imports or exports used class II controlled 
substances must report its annual level within 45 days of the end of 
the control period.
    (p) Persons who import or export used controlled substances 
(including recycled or reclaimed) must label their bill of lading or 
invoice indicating that the controlled substance is used, recycled or 
reclaimed.
    (q) Persons who import heels of controlled substances must label 
their bill of lading or invoice indicating that the controlled 
substance in the container is a heel.
    (r) Every person who brings back a container with a heel to the 
United States, as defined in Sec. 82.3, must report quarterly the 
amount brought into the United States certifying that the residual 
amount in each shipment is less than 10 percent of the volume of the 
container and will either:
    (1) Remain in the container and be included in a future shipment;
    (2) Be recovered and transformed;
    (3) Be recovered and destroyed; or
    (4) Be recovered for a non-emissive use.
    (s) Every person who brings a container with a heel into the United 
States must report on the final disposition of each shipment within 45 
days of the end of the control period.
    (t) Every person who transships a controlled substance must 
maintain records that indicate that the controlled substance shipment 
originated in a foreign country destined for another foreign country, 
and does not enter interstate commerce with the United States.
    (u) Any person allocated essential-use allowances who submits an 
order to a producer or importer for a controlled substance must report 
the quarterly quantity received from each producer or importer. Any 
distributor of laboratory supplies receiving controlled substances 
under the global laboratory essential-use exemption for sale to 
laboratory customers must report quarterly the quantity received of 
each controlled substance from each producer or importer.
    (v) Any distributor of laboratory supplies who purchased controlled 
substances under the global laboratory essential-use exemption must 
submit quarterly copies of certifications received in that quarter from 
laboratory customers, as under Sec. 82.13(w), and the quantity of each 
controlled substance purchased by each laboratory customer whose 
certification was previously filed.
    (w) A laboratory customer purchasing a controlled substance under 
the global laboratory essential-use exemption must provide the 
producer, importer or distributor with a one-time-per-year 
certification for each controlled substance that the substance will 
only be used for laboratory applications and not be resold or used in 
manufacturing. The certification must also include:
    (1) The identity and address of the laboratory customer;
    (2) The name and phone number of a contact person for the 
laboratory customer;
    (3) The name and quantity of each controlled substance purchased, 
and the estimated percent of the controlled substance that will be used 
for each listed type of laboratory application.

Appendix A to Subpart A--Class I Controlled Substances

------------------------------------------------------------------------
                Class 1 controlled substances                     ODP   
------------------------------------------------------------------------
A. Group I:                                                             
  CFCl<INF>3-Trichlorofluoromethane (CFC-ll)......................        1.0
  CF<INF>2Cl<INF>2-Dichlorofifluoromethane (CFC-12)....................        1.0
  C<INF>2F<INF>3Cl<INF>3-Trichlorotrifluoroethane (CFC-113).................        0.8
  C<INF>2F<INF>4Cl<INF>2-Dichlorotetrafluoroethane (CFC-114)................        1.0
  C<INF>2F<INF>5Cl-Monochloropentafluoroethane (CFC-115)...............        0.6
  All isomers of the above chemicals                                    
B. Group II:                                                            
  CF<INF>2ClBr-Bromochlorodifluoromethane (Halon-1211)............        3.0
  CF<INF>3Br-Bromotrifluoromethane (Halon-1301)...................       10.0
  C<INF>2F<INF>4Br<INF>2-Dibromotetrafluoroethane (Halon-2402)..............        6.0
  All isomers of the above chemicals                                    
C. Group III:                                                           
  CF<INF>3Cl-Chlorotrifluoromethane (CFC-13)......................        1.0
  C<INF>2FCl<INF>5-(CFC-111)...........................................        1.0
  C<INF>2F<INF>2Cl<INF>4-(CFC-112)..........................................        1.0
  C<INF>3FCl<INF>7-(CFC-211)...........................................        1.0
  C<INF>3F<INF>2Cl<INF>6-(CFC-212)..........................................        1.0
  C<INF>3F<INF>3Cl<INF>5-(CFC-213)..........................................        1.0
  C<INF>3F<INF>4Cl<INF>4-(CFC-214)..........................................        1.0
  C<INF>3F<INF>5Cl<INF>3-(CFC-215)..........................................        1.0
  C<INF>3F<INF>6Cl<INF>2-(CFC-216)..........................................        1.0
  C<INF>3F<INF>7Cl-(CFC-217)...........................................        1.0
  All isomers of the above chemicals                                    
D. Group IV: CCl<INF>4-Carbon Tetrachloride.......................        1.1
E. Group V:                                                             
  C<INF>2H<INF>3Cl<INF>3-1,1,1 Trichloroethane (Methyl chloroform)..........        0.1
  All isomers of the above chemical except 1,1,2-                       
   trichloroethane                                                      
F. Group VI: CH<INF>3Br--Bromomethane (Methyl Bromide)............        0.7
G. Group VII:                                                           
  CHFBR<INF>2.....................................................       1.00
  CHF<INF>2Br (HBFC-2201).........................................       0.74
  CH<INF>2FBr.....................................................       0.73
  C<INF>2HFBr<INF>4....................................................    0.3-0.8
  C<INF>2HF<INF>2Br<INF>3...................................................    0.5-1.8
  C<INF>2HF<INF>3Br<INF>2...................................................    0.4-1.6
  C<INF>2HF<INF>4Br....................................................   0.7-1.2 
[[Page 25003]]
                                                                        
  C<INF>2H<INF>2FBr<INF>3...................................................    0.1-1.1
  C<INF>2H<INF>2F<INF>2Br<INF>2..................................................    0.2-1.5
  C<INF>2H<INF>2F<INF>3Br...................................................    0.7-1.6
  C<INF>2H<INF>2FBr<INF>2...................................................    0.1-1.7
  C<INF>2H<INF>3F<INF>2Br...................................................    0.2-1.1
  C<INF>2H<INF>4FBr....................................................   0.07-0.1
  C<INF>3HFBr<INF>6....................................................    0.3-1.5
  C<INF>3HF<INF>2Br<INF>5...................................................    0.2-1.9
  C<INF>3HF<INF>3Br<INF>4...................................................    0.3-1.8
  C<INF>3HF<INF>4Br<INF>3...................................................    0.5-2.2
  C<INF>3HF<INF>5Br<INF>2...................................................    0.9-2.0
  C<INF>3HF<INF>6Br....................................................    0.7-3.3
  C<INF>3H<INF>2FBR<INF>5...................................................    0.1-1.9
  C<INF>3H<INF>2F<INF>2BR<INF>4..................................................    0.2-2.1
  C<INF>3H<INF>2F<INF>3Br<INF>3..................................................    0.2-5.6
  C<INF>3H<INF>2F<INF>4Br<INF>2..................................................    0.3-7.5
  C<INF>3H<INF>2F<INF>5BR...................................................     0.9-14
  C<INF>3H<INF>3FBR<INF>4...................................................   0.08-1.9
  C<INF>3H<INF>3F<INF>2Br<INF>3..................................................    0.1-3.1
  C<INF>3H<INF>3F<INF>3Br<INF>2..................................................    0.1-2.5
  C<INF>3H<INF>3F<INF>4Br...................................................    0.3-4.4
  C<INF>3H<INF>4FBr<INF>3...................................................   0.03-0.3
  C<INF>3H<INF>4F<INF>2Br<INF>2..................................................    0.1-1.0
  C<INF>3H<INF>4F<INF>3Br...................................................   0.07-0.8
  C<INF>3H<INF>5FBr<INF>2...................................................   0.04-0.4
  C<INF>3H<INF>5F<INF>2Br...................................................   0.07-0.8
  C<INF>3H<INF>6FB.....................................................   0.02-0.7
------------------------------------------------------------------------

Appendix B to Subpart A--Class II Controlled Substances

------------------------------------------------------------------------
                   Controlled substance                         ODP     
------------------------------------------------------------------------
CHFCl<INF>2-Dichlorofluoromethane (HCFC-21)...................  [Reserved].  
CHF<INF>2Cl-Chlorodifluoromethane (HCFC-22)...................  0.05         
CH<INF>2FCl-Chlorofluoromethane (HCFC-31).....................  [Reserved].  
C<INF>2HFCl<INF>4-(HCFC-121).......................................  [Reserved].  
C<INF>2HF<INF>2Cl<INF>3-(HCFC-122)......................................  [Reserved].  
C<INF>2HF<INF>3Cl<INF>2-(HCFC-123)......................................  0.02         
C<INF>2HF<INF>4Cl-(HCFC-124).......................................  0.02         
C<INF>2H<INF>2FCl<INF>3-(HCFC-131)......................................  [Reserved].  
C<INF>2H<INF>2F<INF>2Cl<INF>2-(HCFC-132b)....................................  [Reserved].  
C<INF>2H<INF>2F<INF>3Cl-(HCFC-133a).....................................  [Reserved].  
C<INF>2H<INF>3FCl<INF>2-(HCFC-141b).....................................  0.12         
C<INF>2H<INF>3F<INF>2Cl-(HCFC-142b).....................................  0.06         
C<INF>3HCFCl<INF>6-(HCFC-221)......................................  [Reserved].  
C<INF>3HF2Cl<INF>5-(HCFC-222)......................................  [Reserved].  
C<INF>3HF<INF>3Cl<INF>4-(HCFC-223)......................................  [Reserved].  
C<INF>3HF<INF>4Cl<INF>3-(HCFC-224)......................................  [Reserved].  
C<INF>3HF<INF>5Cl<INF>2-(HCFC-225ca)....................................  [Reserved].  
C<INF>3HF<INF>5Cl-(HCFC-225cb).....................................  [Reserved].  
C<INF>3HF<INF>6Cl-(HCFC-226).......................................  [Reserved].  
C<INF>3H<INF>2FCl<INF>5-(HCFC-231)......................................  [Reserved].  
C<INF>3H<INF>2F<INF>2Cl<INF>4-(HCFC-232).....................................  [Reserved].  
C<INF>3H<INF>2F<INF>3Cl<INF>3-(HCFC-233).....................................  [Reserved].  
C<INF>3H<INF>2F<INF>4Cl<INF>2-(HCFC-234).....................................  [Reserved].  
C<INF>3H<INF>2F<INF>5Cl-(HCFC-235)......................................  [Reserved].  
C<INF>3H<INF>3FCl<INF>4-(HCFC-241)......................................  [Reserved].  
C<INF>3H<INF>3F<INF>2Cl<INF>3-(HCFC-242).....................................  [Reserved].  
C<INF>3H<INF>3F<INF>3Cl<INF>2-(HCFC-243).....................................  [Reserved].  
C<INF>3H<INF>3F<INF>4Cl-(HCFC-244)......................................  [Reserved].  
C<INF>3H<INF>4FCl<INF>3-(HCFC-251)......................................  [Reserved].  
C<INF>3H<INF>4F<INF>2Cl<INF>2-(HCFC-252).....................................  [Reserved].  
C<INF>3H<INF>4F<INF>3Cl-(HCFC-253)......................................  [Reserved].  
C<INF>3H<INF>5FCl<INF>2-(HCFC-261)......................................  [Reserved].  
C<INF>3H<INF>5F<INF>2Cl-(HCFC-262)......................................  [Reserved].  
C<INF>3H<INF>6FCl-(HCFC-271).......................................  [Reserved].  
All isomers of the above chemicals                                      
------------------------------------------------------------------------


 Appendix C to Subpart A--Parties to the Montreal Protocol: Annex 1--All
                                 Parties                                
------------------------------------------------------------------------
                                        Montreal    London    Copenhagen
             Foreign state              protocol  amendments  amendments
------------------------------------------------------------------------
Algeria...............................  <radical                        
                                              >   <radical>   ..........
Antigua and Barbuda...................  <radical                        
                                              >   <radical>   <radical> 
Argentina.............................  <radical                        
                                              >   <radical>   ..........
Australia.............................  <radical                        
                                              >   <radical>   <radical> 
Austria...............................  <radical                        
                                              >   <radical>             
Bahamas...............................  <radical                        
                                              >   <radical>   <radical> 
Bahrain...............................  <radical                        
                                              >   <radical>   ..........
Bangladesh............................  <radical                        
                                              >   <radical>   ..........
Barbados..............................  <radical                        
                                              >   <radical>   <radical> 
Belarus...............................  <radical                        
                                              >   ..........  ..........
Belgium...............................  <radical                        
                                              >   <radical>   ..........
Benin.................................  <radical                        
                                              >   ..........  ..........
Bolivia...............................  <radical                        
                                              >   <radical>   <radical> 
Bosnia and Hertsegovina...............  <radical                        
                                              >   ..........  ..........
Botswana..............................  <radical                        
                                              >   ..........  ..........
Brazil................................  <radical                        
                                              >   <radical>   ..........
Brunei Darussalam.....................  <radical                        
                                              >   ..........  ..........
Bulgaria..............................  <radical                        
                                              >   ..........  ..........
Burkina Faso..........................  <radical                        
                                              >   <radical>   ..........
Cameroon..............................  <radical                        
                                              >   <radical>   ..........
Canada................................  <radical                        
                                              >   <radical>   <radical> 
Central African Republic..............  <radical                        
                                              >   ..........  ..........
Chad..................................  <radical                        
                                              >   ..........  <radical> 
Chile.................................  <radical                        
                                              >   <radical>   <radical> 
China.................................  <radical                        
                                              >   <radical>   ..........
Colombia..............................  <radical                        
                                              >   <radical>   ..........
Comoros...............................  <radical                        
                                              >   <radical>   ..........
Congo.................................  <radical                        
                                              >   <radical>   ..........
Costa Rica............................  <radical                        
                                              >   ..........  ..........
Cote Ivoire...........................  <radical                        
                                              >   <radical>   ..........
Croatia...............................  <radical                        
                                              >   <radical>   ..........
Cuba..................................  <radical                        
                                              >   ..........  <radical> 
Cyprus................................  <radical                        
                                              >   <radical>   ..........
Czech Republic........................  <radical                        
                                              >   ..........  ..........
Denmark...............................  <radical                        
                                              >   <radical>   <radical> 
Dominica..............................  <radical                        
                                              >   <radical>   ..........
Dominican Republic....................  <radical                        
                                              >   ..........  ..........
Ecuador...............................  <radical                        
                                              >   <radical>   <radical> 
Egypt.................................  <radical                        
                                              >   <radical>   <radical> 
El Salvador...........................  <radical                        
                                              >   ..........  ..........
Ethiopia..............................  <radical                        
                                              >   ..........  ..........
European Community....................  <radical                        
                                              >   <radical>   ..........
Fiji..................................  <radical                        
                                              >   <radical>   ..........
Finland...............................  <radical                        
                                              >   <radical>   <radical> 
France................................  <radical                        
                                              >   <radical>   ..........
Gabon.................................  <radical                        
                                              >   ..........  ..........
Gambia................................  <radical                        
                                              >   ..........  ..........
Germany...............................  <radical                        
                                              >   <radical>   <radical> 
Ghana.................................  <radical                        
                                              >   <radical>   ..........
Greece................................  <radical                        
                                              >   <radical>   <radical> 
Grenada...............................  <radical                        
                                              >   <radical>   ..........
Guatemala.............................  <radical                        
                                              >   ..........  ..........
Guinea................................  <radical                        
                                              >   <radical>   ..........
Guyana................................  <radical                        
                                              >   <radical>   ..........
Honduras..............................  <radical                        
                                              >   ..........  ..........
Hungary...............................  <radical                        
                                              >   <radical>   <radical> 
Iceland...............................  <radical                        
                                              >   <radical>   <radical> 
India.................................  <radical                        
                                              >   <radical>   ..........
Indonesia.............................  <radical                        
                                              >   <radical>   ..........
Iran..................................  <radical                        
                                              >   ..........  ..........
Ireland...............................  <radical                        
                                              >   <radical>   ..........
Israel................................  <radical                        
                                              >   <radical>   ..........
Italy.................................  <radical                        
                                              >   <radical>   <radical> 
Jamaica...............................  <radical                        
                                              >   <radical>   ..........
Japan.................................  <radical                        
                                              >   <radical>   <radical> 
Jordan................................  <radical                        
                                              >   <radical>             
Kenya.................................  <radical                        
                                              >   <radical>   <radical> 
Kiribati..............................  <radical                        
                                              >   ..........  ..........
Korea, Democratic People's Republic of  <radical                        
                                              >                         
Korea, Republic of....................  <radical                        
                                              >   <radical>   <radical> 
Kuwait................................  <radical                        
                                              >   <radical>   <radical> 
Lebanon...............................  <radical                        
                                              >   <radical>   ..........
Lesotho...............................  <radical                        
                                              >   ..........  ..........
Libya.................................  <radical                        
                                              >   ..........  ..........
Liechtenstein.........................  <radical                        
                                              >   <radical>   ..........
Lithuania.............................  <radical                        
                                              >   ..........  ..........
Luxembourg............................  <radical                        
                                              >   <radical>   <radical> 
Macedonia.............................  <radical                        
                                              >   ..........  ..........
Malawi................................  <radical                        
                                              >   <radical>   <radical> 
Malaysia..............................  <radical                        
                                              >   <radical>   <radical> 
Maldives..............................  <radical                        
                                              >   <radical>   ..........
Mali..................................  <radical                        
                                              >   <radical>   ..........
Malta.................................  <radical                        
                                              >   <radical>   ..........
Marshall Islands......................  <radical                        
                                              >   <radical>   <radical> 
Mauritania............................  <radical                        
                                              >   ..........  ..........
Mauritius.............................  <radical                        
                                              >   <radical>   <radical> 
Mexico................................  <radical                        
                                              >   <radical>   <radical> 
Monaco................................  <radical                        
                                              >   <radical>   ..........
Morocco...............................  <radical                        
                                              >   ..........  ..........
Mozambique............................  <radical                        
                                              >   <radical>   <radical> 
Myranmar..............................  <radical                        
                                              >   <radical>   ..........
Namibia...............................  <radical                        
                                              >   ..........  ..........
Nepal.................................  <radical                        
                                              >   <radical>   ..........
Netherlands...........................  <radical                        
                                              >   <radical>   <radical> 
New Zealand...........................  <radical                        
                                              >   <radical>   <radical> 
Nicaragua.............................  <radical                        
                                              >   ..........  ..........
Niger.................................  <radical                        
                                              >   ..........  ..........
Nigeria...............................  <radical                        
                                              >   ..........  ..........
Norway................................  <radical                        
                                              >   <radical>   <radical> 
Pakistan..............................  <radical                        
                                              >   <radical>   <radical> 
Panama................................  <radical                        
                                              >   <radical>   ..........
Papua New Guinea......................  <radical                        
                                              >   <radical>   ..........
Paraguay..............................  <radical                        
                                              >   <radical>   ..........
Peru..................................  <radical                        
                                              >   <radical>   ..........
Philippines...........................  <radical                        
                                              >   <radical>   ..........
Poland................................  <radical                        
                                              >   ..........  ..........
Portugal..............................  <radical                        
                                              >   <radical>   ..........
Romania...............................  <radical                        
                                              >   <radical>   ..........
Russian Federation....................  <radical                        
                                              >   <radical>   ..........
Saint Kitts and Nevis.................  <radical                        
                                              >   ..........  <radical> 
Saint Lucia...........................  <radical                        
                                              >   ..........  ..........
Samoa.................................  <radical                        
                                              >   ..........  ..........
Saudi Arabia..........................  <radical                        
                                              >   <radical>   <radical> 
Senegal...............................  <radical                        
                                              >   <radical>   ..........
Seychelles............................  <radical                        
                                              >   <radical>   <radical> 
Singapore.............................  <radical                        
                                              >   <radical>   ..........
Slovakia..............................  <radical                        
                                              >   <radical>   ..........
Slovenia..............................  <radical                        
                                              >   <radical>   ..........
Solomon Islands.......................  <radical                        
                                              >   <radical>   ..........
South Africa..........................  <radical                        
                                              >   <radical>   ..........
Spain.................................  <radical                        
                                              >   <radical>   ..........
Sri Lanka.............................  <radical                        
                                              >   <radical>   ..........
Sudan.................................  <radical                        
                                              >   ..........  ..........
Swaziland.............................  <radical                        
                                              >   ..........  ..........
Sweden................................  <radical                        
                                              >   <radical>   <radical> 
Switzerland...........................  <radical                        
                                              >   <radical>   ..........
Syrian Arab Republic..................  <radical                        
                                              >   ..........  ..........
Tanzania, United Republic of..........  <radical                        
                                              >   <radical>   ..........
Thailand..............................  <radical                        
                                              >   <radical>   ..........
Togo..................................  <radical                        
                                              >   ..........  ..........
Trinidad and Tobago...................  <radical                        
                                              >   ..........  ..........
Tunisia...............................  <radical                        
                                              >   <radical>   <radical> 
Turkey................................  <radical                        
                                              >   ..........  ..........
Turkministan..........................  <radical                        
                                              >   <radical>   ..........
Tuvalu................................  <radical                        
                                              >   ..........  ..........
Uganda................................  <radical                        
                                              >   <radical>   ..........
Ukranian SSR..........................  <radical                        
                                              >   ..........  ..........
United Arab Emirates..................  <radical                        
                                              >   ..........  ..........
United Kingdom........................  <radical                        
                                              >   <radical>   <radical> 
Uruguay...............................  <radical                        
                                              >   <radical>   ..........
United States.........................  <radical                        
                                              >   <radical>   <radical> 
Uruguay...............................  <radical                        
                                              >   <radical>   ..........
Uzbekistan............................  <radical                        
                                              >   ..........  ..........
Vanuatu...............................  <radical                        
                                              >   <radical>   <radical> 
Venezuela.............................  <radical                        
                                              >   <radical>   ..........
Viet Nam..............................  <radical                        
                                              >   <radical>   <radical> 
Yugoslavia............................  <radical                        
                                              >   ..........  ..........
Zaire.................................  <radical                        
                                              >   <radical>   <radical> 
Zambia................................  <radical                        
                                              >   <radical>   ..........
Zimbabwe..............................  <radical                        
                                              >   <radical>   <radical> 
------------------------------------------------------------------------

Annex 2--Nations Complying With, But Not Parties to, the Protocol--
[Reserved]

Appendix D to Subpart A--Harmonized Tariff Schedule Description of 
Products That May Contain Controlled Substances in Appendix A, 
Class I, Groups I and II

    This Appendix is based on information provided by the Ozone 
Secretariat of the United Nations Ozone Environment 
Programme.<SUP>** The Appendix lists available U.S. harmonized 
tariff schedule codes identifying headings and subheadings for Annex 
D products that may contain controlled substances. [[Page 25004]] 

    \**\``A Note Regarding the Harmonized System Code Numbers for 
the Products Listed in Annex D.'' Adopted by Decision IV/15 
paragraph 3, of the Fourth Meeting of the Parties in Copenhagen, 23-
25 November, 1992.
---------------------------------------------------------------------------

    The Harmonized Tariff Schedule of the United States uses a 
enumeration system to identify products imported and exported to and 
from the U.S. This system relies on a four digit heading, a four 
digit subheading and additional two digit statistical suffix to 
characterize products. The United States uses the suffix for its own 
statistical records and analyses. This Appendix lists only headings 
and subheadings.
    While some can be readily associated with harmonized system 
codes, many products cannot be tied to HS classifications unless 
their exact composition and the presentation are known. It should be 
noted that the specified HS classifications represent the most 
likely headings and subheadings which may contain substances 
controlled by the Montreal Protocol. The codes given should only be 
used as a starting point; further verfication is needed to ascertain 
whether or not the products actually contain controlled substances.

Category 1. Automobile and Truck Air Conditioning Units (whether 
incorporated in vehicles or not)

    There are no separate code numbers for air conditioning units 
specially used in automobiles and trucks. Although a code has been 
proposed for car air conditioners, it is not yet officially listed 
in the Harmonized Tariff Schedule (see category 2). The following 
codes apply to the vehicles potentially containing air conditioning 
units.

                                                                                                                
           Heading/Subheading                                       Article Description                         
                                                                                                                
8701.(10, 20, 30, 90)***................  Tractors.                                                             
8702....................................  Public-transport type passenger motor vehicles.                       
8702.10.................................  With compression-ignition internal-combustion piston engine (diesel or
                                           semi-diesel).                                                        
8702.90.................................  Other.                                                                
8703....................................  Motor cars and other motor vehicles principally designed for the      
                                           transport of persons (other than those of heading 8702), including   
                                           station wagons and racing cars.                                      
8703.10.................................  Vehicles specially designed for traveling on snow; golf carts and     
                                           similar vehicles; includes subheading 10.10 and 10.50.               
8703.(21, 22, 23, 24)...................  Other vehicles, with spark-ignition internal combustion reciprocating 
                                           engines.                                                             
8703.(31, 32, 33, 90)...................  Other vehicles, with compression-ignition internal combustion piston  
                                           engine (diesel or semi-diesel).                                      
8704....................................  Motor vehicles for the transport of goods.                            
8704.10.(10, 50)........................  Dumpers designed for off-highway use.                                 
8704.(21, 22, 23).......................  Other, with compression-ignition internal combustion piston engine    
                                           (diesel or semi-diesel).                                             
8704.(31, 32, 90).......................  Other, with compression-ignition internal combustion piston engine.   
8705....................................  Special purpose motor vehicles, other than those principally designed 
                                           for the transport of persons or goods (for example, wreckers, mobile 
                                           cranes, fire fighting vehicles, concrete mixers, road sweepers,      
                                           spraying vehicles, mobile workshops, mobile radiological units).     
8705.10.................................  Crane lorries.                                                        
8705.20.................................  Mobile drilling derricks.                                             
8705.30.................................  Fire fighting vehicles.                                               
8705.90.................................  Other.                                                                
                                                                                                                
***At this time vehicle air conditioning units are considered components of vehicles or are classified under the
  general category for air conditioning and refrigeration equipment. Vehicles containing air conditioners are   
  therefore considered products containing controlled substances.                                               

Category 2. Domestic and Commercial Refrigeration and Air Conditioning/
Heat Pump Equipment

    Domestic and commercial air conditioning and refrigeration 
equipment fall primarily under headings 8415 and 8418.

                                                                                                                
           Heading/Subheading                                       Article Description                         
                                                                                                                
8415....................................  Air conditioning machines, comprising a motor-driven fan and elements 
                                           for changing the temperature and humidity, including those machines  
                                           in which the humidity cannot be separately regulated.                
8415.20.................................  Proposed code for air conditioning of a kind used for persons, in     
                                           motor vehicles.                                                      
8415.10.00..............................  A/C window or wall types, self-contained.                             
8415.81.00..............................  Other, except parts, incorporating a refrigerating unit and a valve   
                                           for reversal of the cooling/heat cycle.                              
8415.82.00..............................  Other, incorporating a refrigerating unit--                           
                                             Self-contained machines and remote condenser type air conditioners 
                                              (not for year-round use).                                         
                                             Year-round units (for heating and cooling).                        
                                             Air Conditioning evaporator coils.                                 
                                             Dehumidifiers.                                                     
                                             Other air conditioning machines incorporating a refrigerating unit.
8415.83.................................  Automotive air conditioners.                                          
8418....................................  Refrigerators, freezers and other refrigerating or freezing equipment,
                                           electric or other; heat pumps, other than air conditioning machines  
                                           of heading 8415; parts thereof.                                      
8418.10.00..............................  Combined refrigerator-freezers, fitted with separate external doors.  
8418.21.00..............................  Refrigerators, household type, Compression type.                      
8418.22.00..............................  Absorption type, electrical.                                          
8418.29.00..............................  Other.                                                                
8418.30.00..............................  Freezers of the chest type.                                           
8418.40.................................  Freezers of the upright type.                                         
8418.50.0040............................  Other refrigerating or freezing chests, cabinets, display counters,   
                                           showcases and similar refrigerating or freezing furniture.           
8418.61.00..............................  Other refrigerating or freezing equipment; heat pumps.                
8418.69.................................  Other--                                                               
                                             Icemaking machines.                                                
                                             Drinking water coolers, self-contained.                            
                                             Soda fountain and beer dispensing equipment.                       
                                             Centrifugal liquid chilling refrigerating units.                   
                                             Absorption liquid chilling units.                                  
                                             Reciprocating liquid chilling units.                               
                                             Other refrigerating or freezing equipment (household or other).    
8479.89.10..............................  Dehumidifiers (other than those under 8415 or 8424 classified as      
                                           ``machines and mechanical appliances having individual functions, not
                                           specified or included elsewhere'').                                  
                                                                                                                

Category 3. Aerosol Products

    An array of different products use controlled substances as 
aerosols and in aerosol applications. Not all aerosol applications 
use controlled substances, however. The codes given below represent 
the most likely classifications for products containing controlled 
substances. The product codes listed include<SUP>****:

    [[Page 25005]] \****\Other categories of products that may 
contain controlled substances are listed below. EPA is currently 
working to match them with appropriate codes. They include: coatings 
and electronic equipment (e.g., electrical motors), coatings or 
cleaning fluids for aircraft maintenance, mold release agents (e.g. 
for production of plastic or elastomeric materials), water and oil 
repellant (potentially under HS 3402), spray undercoats (potentially 
under ``paints and varnishes''), spot removers, brake cleaners, 
safety sprays (e.g., mace cans), animal repellant, noise horns 
(e.g., for use on boats), weld inspection developers, freezants, gum 
removers, intruder alarms, tire inflators, dusters (for electronic 
and non-electronic applications), spray shoe polish, and suede 
protectors.
---------------------------------------------------------------------------

<bullet> varnishes
<bullet> perfumes
<bullet> preparations for use on hair
<bullet> preparations for oral and dental hygiene
<bullet> shaving preparations
<bullet> personal deodorants, bath preparations
<bullet> prepared room deodorizers
<bullet> soaps
<bullet> lubricants
<bullet> polishes and creams
<bullet> explosives
<bullet> insecticides, fungicides, herbicides, disinfectants
<bullet> arms and ammunition
<bullet> household products such as footwear or leather polishes
<bullet> other miscellaneous products

                                                                                                                
           Heading/Subheading                                       Article Description                         
                                                                                                                
3208....................................  Paints and varnishes***** (including enamels and lacquers) based on   
                                           synthetic polymers of chemically modified natural polymers, dispersed
                                           or dissolved in a non-aqueous medium.                                
3208.10.................................  Based on polyesters.                                                  
3208.20.................................  Based on acrylic or vinyl polymers.                                   
3208.90.................................  Other.                                                                
3209....................................  Paints and varnishes (including enamels and lacquers) based on        
                                           synthetic polymers or chemically modified natural polymers, dispersed
                                           or dissolved in an aqueous medium.                                   
3209.10.................................  Based on acrylic or vinyl polymers.                                   
3209.90.................................  Other.                                                                
3210.00.................................  Other paints and varnishes (including enamels, lacquers and           
                                           distempers) and prepared water pigments of a kind used for finishing 
                                           leather.                                                             
3212.90.................................  Dyes and other coloring matter put up in forms or packings for retail 
                                           sale.                                                                
3303.00.................................  Perfumes and toilet waters.                                           
3304.30.................................  Manicure or pedicure preparations.                                    
3305.10.................................  Shampoos.                                                             
3305.20.................................  Preparations for permanent waving or straightening.                   
3305.30.................................  Hair lacquers.                                                        
3305.90.................................  Other hair preparations.                                              
3306.10.................................  Dentrifices.                                                          
3306.90.................................  Other dental (this may include breath sprays).                        
3307.10.................................  Pre-shave, shaving or after-shave preparations.                       
3307.20.................................  Personal deodorants and antiperspirants.                              
3307.30.................................  Perfumed bath salts and other bath preparations.                      
3307.49.................................  Other (this may include preparations for perfuming or deodorizing     
                                           rooms, including odoriferous preparations used during religious      
                                           rites, whether or not perfumed or having disinfectant properties).   
3307.90.................................  Other (this may include depilatory products and other perfumery,      
                                           cosmetic or toilet preparations, not elsewhere specified or included)
3403....................................  Lubricating preparations (including cutting-oil preparations, bolt or 
                                           nut release preparations, anti-rust or anti-corrosion preparations   
                                           and mould release preparations, based on lubricants), and            
                                           preparations of a kind used for the oil or grease treatment of       
                                           textile materials, leather, fur skins or other materials, but        
                                           excluding preparations containing, as basic constituents, 70 percent 
                                           or more by weight of petroleum oils or of oils obtained from         
                                           bituminous minerals.                                                 
3402....................................  Organic surface-active agents (other than soap); surface-active       
                                           preparations, washing preparations and cleaning operations, whether  
                                           or not containing soap, other than those of 3401.                    
3402.20.................................  Preparations put up for retail sale.                                  
3402.19.................................  Other preparations containing petroleum oils or oils obtained from    
                                           bituminous minerals.                                                 
3403....................................  Lubricating preparations consisting of mixtures containing silicone   
                                           greases or oils, as the case may be.                                 
2710.00.................................  Preparations not elsewhere specified or included, containing by weight
                                           70 percent or more of petroleum oils or of oils obtained from        
                                           bituminous minerals, these oils being the basic constituents of the  
                                           preparations.                                                        
3403.11.................................  Lubricants containing petroleum oils or oils obtained from bituminous 
                                           minerals used for preparations from the treatment of textile         
                                           materials, leather, fur skins or other materials.                    
3403.19.................................  Other preparations containing petroleum oils or oils obtained from    
                                           bituminous minerals.                                                 
3405....................................  Polishes and creams, for footwear, furniture, floors, coachwork, glass
                                           or metal, scouring pastes and powders and similar preparations       
                                           excluding waxes of heading 3404.                                     
3405.10.................................  Polishes and creams for footwear or leather.                          
3405.20.................................  Polishes for wooden furniture, floors or other woodwork.              
36......................................  Explosives.                                                           
3808....................................  Insecticides, rodenticides, fungicides, herbicides, anti-sprouting    
                                           products and plant-growth regulators, disinfectants and similar      
                                           products, put up in forms or packings for retail sale or as          
                                           preparations or articles (for example, sulphur-treated bands, wicks  
                                           and candles, and fly papers).                                        
3808.10.................................  Insecticides.                                                         
3808.20.................................  Fungicides.                                                           
3808.30.................................  Herbicides, anti-sprouting products and plant growth regulators.      
3808.40.................................  Disinfectants.                                                        
3808.90.................................  Other insecticides, fungicides.                                       
3809.10.................................  Finishing agents, dye carriers to accelerate the dyeing or fixing of  
                                           dye-stuffs and other products and preparations (for example,         
                                           dressings and mordants) of a kind used in the textile, paper, leather
                                           or like industries, not elsewhere specified or included, with a basis
                                           of amylaceous substances.                                            
3814....................................  Organic composite solvents and thinners (not elsewhere specified or   
                                           included) and the prepared paint or varnish removers.                
3910....................................  Silicones in primary forms.                                           
9304....................................  Other arms (for example, spring, air or gas guns and pistols,         
                                           truncheons), excluding those of heading No. 93.07. Thus, aerosol     
                                           spray cans containing tear gas may be classified under this          
                                           subheading.                                                          
0404.90.................................  Products consisting of natural milk constituents, whether or not      
                                           containing added sugar or other sweetening matter, not elsewhere     
                                           specified or included.                                               
1517.90.................................  Edible mixtures or preparations of animal or vegetable fats or oils or
                                           of fractions of different fats or oils of this chapter, other than   
                                           edible fats or oils or their fractions of heading No. 15.16.         
2106.90.................................  Food preparations not elsewhere specified or included.                
                                                                                                                
*****Although paints do not generally use contain controlled substances, some varnishes use CFC 113 and         
  1,1,1,trichlorethane as solvents.                                                                             

Category 4. Portable Fire Extinguishers

                                                                                                                
           Heading/Subheading                                       Article Description                         
                                                                                                                
8424....................................  Mechanical appliances (whether or not hand operated) for projecting,  
                                           dispersing, or spraying liquids or powders; fire extinguishers       
                                           whether or not charged, spray guns and similar appliances; steam or  
                                           sand blasting machines and similar jet projecting machines.          
8424.10.................................  Fire extinguishers, whether or not charged.                           
                                                                                                                

Category 5. Insulation Boards, Panels and Pipe Covers

    These goods have to be classified according to their composition 
and presentation. For example, if the insulation materials are made 
of polyurethane, polystyrene, polyolefin and phenolic plastics, then 
they may be classified Chapter 39, for ``Plastics and articles 
thereof''. The exact description of the products at issue is 
necessary before a classification can be given.<SUP>****** 
[[Page 25006]] 

    ******This category may include insulating board for building 
panels and windows and doors. It also includes rigid appliance 
insulation for pipes, tanks, trucks, trailers, containers, train 
cars & ships, refrigerators, freezers, beverage vending machines, 
bulk beverage dispensers, water coolers and heaters and ice 
machines.

                                                                                                                
           Heading/Subheading                                       Article Description                         
                                                                                                                
3917.21 to 3917.39......................  Tubes, pipes and hoses of plastics.                                   
3920.10 to 3920.99......................  Plates, sheets, film, foil and strip made of plastics, non-cellular   
                                           and not reinforced, laminated, supported or similarly combined with  
                                           other materials.                                                     
3921.11 to 3921.90......................  Other plates, sheets, film, foil and strip, made of plastics.         
3925.90.................................  Builders' ware made of plastics, not elsewhere specified or included. 
3926.90.................................  Articles made of plastics, not elsewhere specified or included.       
                                                                                                                


[[Page 25007]]

Category 6. Pre-Polymers

    According to the Explanatory Notes to the Harmonized Commodity 
Description and Coding System, ``prepolymers are products which are 
characterized by some repetition of monomer units although they may 
contain unreacted monomers. Prepolymers are not normally used as 
such but are intended to be transformed into higher molecular weight 
polymers by further polymerization. Therefore the term does not 
cover finished products, such as di-isobutylenes or mixed 
polyethylene glycols with very low molecular weight. Examples are 
epoxides based with epichlorohydrin, and polymeric isocyanates.''

                                                                                                                
           Heading/Subheading                                       Article Description                         
                                                                                                                
3901....................................  Pre-polymers based on ethylene (in primary forms).                    
3902....................................  Pre-polymers based on propylene or other olefins (in primary forms).  
3903, 3907, 3909........................  Pre-polymers based on styrene (in primary forms), epoxide and phenols.
                                                                                                                

Appendix E to Subpart A-Article 5 Parties

    Algeria, Antigua and Barbuda, Argentina, Bahamas, Bahrain, 
Bangladesh, Barbados, Benin, Bolivia, Bosnia and Hersegovina, 
Botswana, Brazil, Brunei Darussalam, Burkina Faso, Cameroon, Central 
African Republic, Chad, Chile, China, Colombia, Comoros, Congo, 
Costa Rica, Cote d'Ivoire, Croatia, Cuba, Dominica, Dominican 
Republic, Ecuador, Egypt, El Salvador, Ethiopia, Fiji, Gabon, 
Gambia, Ghana, Grenada, Guatemala, Guinea, Guyana, Honduras, India, 
Indonesia, Iran, Jamaica, Jordan, Kenya, Kiribati, Lebanon, Lesotho, 
Libyan Arab Jamahiriya, Macadonia, Malawi, Malaysia, Maldives, Mali, 
Malta, Mauritania, Mauritius, Mexico, Mozambique, Myranmar, Namibia, 
Nepal, Nicaragua, Niger, Nigeria, Pakistan, Panama, Papua New 
Guinea, Paraguay, Peru, Philippines, Republic of Korea, Romania, 
Saint Kitts and Nevis, Saint Lucia, Saudi Arabia, Senegal, 
Seychelles, Singapore, Solomon Islands, Somoa, Sri Lanka, Sudan, 
Swaziland, Syrian Arab Republic, Tanzania, Thailand, Togo, Trinidad 
and Tobago, Tunisia, Turkey, Uganda, Uruguay, Vanuatu, Venezuela, 
Viet Nam, Yugoslavia, Zaire, Zambia, Zimbabwe.

Appendix F to Subpart A--Listing of Ozone-Depleting Chemicals

----------------------------------------------------------------------------------------------------------------
              Controlled substance                      ODP            AT L             CLP             BLP     
----------------------------------------------------------------------------------------------------------------
A. Class I:                                                                                                     
1. Group I:                                                                                                     
    CFCl<INF>3-Trichlorofluoromethane (CFC-11).......             1.0           60.0            1.0              0.00
    CF<INF>2Cl<INF>2-Dichlorodifluoromethane (CFC-12).....             1.0          120.0            1.5              0.00
    C<INF>2F<INF>3Cl<INF>3-Trichlorotrifluoroethane (CFC-113)..             0.8           90.0            1.11             0.00
    C<INF>2F<INF>4Cl<INF>2-Dichlorotetrafluoroethane (CFC-114).             1.0          200.00           1.8              0.00
    C<INF>2F<INF>5Cl-Monochloropentafluoroethane (CFC-115)             0.6          400.0            2.0              0.00
    All isomers of the above chemicals..........                                                                
(3) [Reserved]                                                                                                  
2. Group II:                                                                                                    
    CF<INF>2ClBr-Bromochlorodifluoromethane (Halon-                                                                  
     1211)......................................             3.0           12              0.06             0.13
                                                  ..............          -18              -.08             -.03
    CF<INF>3Br-Bromotrifluoromethane (Halon-1301)....            10.0           72              0.00             1.00
                                                  ..............         -107     ..............  ..............
    C<INF>2F<INF>4Br<INF>2-Dibromotetrafluoroethane (Halon-                                                                    
     2402)......................................             6.0           23              0.00             0.30
                                                  ..............          -28     ..............            -.37
    All isomers of the above chemicals..........                                                                
(3) [Reserved]                                                                                                  
3. Group III:                                                                                                   
    CF<INF>3Cl-Chlorotrifluoromethane (CFC-13).......             1.0          120              0.88             0.00
                                                            -250           -1.83                                
    C<INF>2FCl<INF>5- (CFC-111)...........................             1.0           60              1.04             0.00
                                                             -90           -1.56                                
    C<INF>2F<INF>2Cl<INF>4- (CFC-112)..........................             1.0           60              0.90             0.00
                                                             -90           -1.35                                
    C<INF>3FCl<INF>7- (CFC-211)...........................             1.0          100              1.76             0.00
                                                            -500           -8.81                                
    C<INF>3F<INF>2Cl<INF>6- (CFC-212)..........................             1.0          100              1.60             0.00
                                                            -500           -7.98                                
    C<INF>3F<INF>3Cl<INF>5- (CFC-213)..........................             1.0          100              1.41             0.00
                                                            -500           -7.06                                
    C<INF>3F<INF>4Cl<INF>4- (CFC-214)..........................             1.0          100              1.20             0.00
                                                            -500           -6.01                                
    C<INF>3F<INF>5Cl<INF>3 -(CFC-215)..........................             1.0          100              0.96             0.00
                                                            -500           -4.82                                
    C<INF>3F<INF>6Cl<INF>2- (CFC-216)..........................             1.0          100              0.69             0.00
                                                            -500           -3.45                                
    C<INF>3F<INF>7Cl- (CFC-217)...........................             1.0          100              0.37             0.00
                                                            -500           -1.87                                
    All isomers of the above chemicals..........                                                                
(3) [Reserved]                                                                                                  
4. Group IV:                                                                                                    
    CCl<INF>4 -Carbon Tetrachloride..................             1.1           50.0            1.0              0.00
5. Group V:                                                                                                     
    C<INF>2H<INF>3Cl<INF>3-1,1,1 Trichloroethane (Methyl                                                                       
     chloroform)................................             0.1            6.3            0.11             0.00
    All isomers of the above chemical except                                                                    
     1,1,2-trichloroethane......................                                                                
(3) [Reserved]                                                                                                  
F. Group VI:                                                                                                    
    CH3Br-Bromomethane (Methyl Bromide).........             0.7  ..............  [Reserved]      ..............
G. Group VII:                                                                                                   
    CHFBR<INF>2-.....................................            1.00  .....<INF>.........  [Reserved]                    
[[Page 25008]]
                                                                                                                
    CHF<INF>2Br- (HBFC-22B1).........................            0.74  ..............  [Reserved]      ..............
    CH<INF>2FBr......................................            0.73  ..............  [Reserved]                    
    C<INF>2HFBr<INF>4.....................................        0.3--0.8  ..............  [Reserved]                    
    C<INF>2HF<INF>2Br<INF>3....................................        0.5--1.8  ..............  [Reserved]                    
    C<INF>2HF<INF>3Br<INF>2....................................        0.4--1.6  ..............  [Reserved]                    
    C<INF>2HF<INF>4Br.....................................        0.7--1.2  ..............  [Reserved]                    
    C<INF>2H<INF>2FBr<INF>3....................................        0.1--1.1  ..............  [Reserved]                    
    C<INF>2H<INF>2F<INF>2Br<INF>2...................................        0.2--1.5  ........<INF>......  [Reserved]                    
    C<INF>2H<INF>2F<INF>3Br....................................        0.7--1.6  ..............  [Reserved]                    
    C<INF>2H<INF>3FBr<INF>2....................................        0.1--1.7  ..............  [Reserved]                    
    C<INF>2H<INF>3F<INF>2Br....................................        0.2--1.1  ..............  [Reserved]                    
    C<INF>2H<INF>4FBr.....................................       0.07--0.1  ..............  [Reserved]                    
    C<INF>3HFBr<INF>6.....................................        0.3--1.5  ..............  [Reserved]                    
    C<INF>3HF<INF>2Br<INF>5....................................        0.2--1.9  ..............  [Reserved]                    
    C<INF>3HF<INF>3BR<INF>4....................................        0.3--1.8  ..............  [Reserved]                    
    C<INF>3HF<INF>4Br<INF>3....................................        0.5--2.2  ..............  [Reserved]                    
    C<INF>3HF<INF>5Br<INF>2....................................        0.9--2.0  ..............  [Reserved]                    
    C<INF>3HF<INF>6Br.....................................        0.7--3.3  ..............  [Reserved]                    
    C<INF>3H<INF>2FBR<INF>5....................................        0.1--1.9  ..............  [Reserved]                    
    C<INF>3H<INF>2F<INF>2BR<INF>4...................................        0.2--2.1  ........<INF>......  [Reserved]                    
    C<INF>3H<INF>2F<INF>3Br<INF>3...................................        0.2--5.6  ........<INF>......  [Reserved]                    
    C<INF>3H<INF>2F<INF>4Br<INF>2...................................        0.3--7.5  ........<INF>......  [Reserved]                    
    C<INF>3H<INF>2F<INF>5BR....................................        0.9--1.4  ..............  [Reserved]                    
    C<INF>3H<INF>3FBR<INF>4....................................       0.08--1.9  ..............  [Reserved]                    
    C<INF>3H<INF>3F<INF>2Br<INF>3...................................        0.1--3.1  ........<INF>......  [Reserved]                    
    C<INF>3H<INF>3F<INF>3Br<INF>2...................................        0.1--2.5  ........<INF>......  [Reserved]                    
    C<INF>3H<INF>3F<INF>4Br....................................        0.3--4.4  ..............  [Reserved]                    
    C<INF>3H<INF>4FBr<INF>3....................................       0.03--0.3  ..............  [Reserved]                    
    C<INF>3H<INF>4F<INF>2Br<INF>2...................................        0.1--1.0  ........<INF>......  [Reserved]                    
    C<INF>3H<INF>4F<INF>3Br....................................       0.07--0.8  ..............  [Reserved]                    
    C<INF>3H<INF>5FBr<INF>2....................................       0.04--0.4  ..............  [Reserved]                    
    C<INF>3H<INF>5F<INF>2Br....................................       0.07--0.8  ..............  [Reserved]                    
    C<INF>3H<INF>6FB......................................       0.02--0.7  ..............  [Reserved]                    
B. Class II:                                                                                                    
    CHFCl<INF>2-Dichlorofluoromethane (HCFC-21)......      [Reserved]            2.1            0.03             0.00
    CHF<INF>2Cl-Chlorodifluoromethane (HCFC-22)......            0.05           15.3            0.14             0.00
    CH<INF>2FCl-Chlorofluoromethane (HCFC-31)........      [Reserved]            1.44           0.02             0.00
    C<INF>2HFCl<INF>4- (HCFC-121).........................      [Reserved]            0.6            0.01             0.00
    C<INF>2HF<INF>2Cl<INF>3- (HCFC-122)........................      [Reserved]            1.4            0.02             0.00
    C<INF>2HF<INF>3Cl<INF>2- (HCFC-123)........................            0.02            1.6            0.016            0.00
    C<INF>2HF<INF>4Cl- (HCFC-124).........................            0.02            6.6            0.04             0.00
    C<INF>2H<INF>2FCl<INF>3- (HCFC-131)........................      [Reserved]            4.0            0.06             0.00
    C<INF>2H<INF>2F<INF>2Cl<INF>2- (HCFC-132b)......................      [Reserved]            4.2            0.05             0.00
    C<INF>2H<INF>2F<INF>3Cl- (HCFC-133a).......................      [Reserved]            4.8            0.03             0.00
    C<INF>2H<INF>3FCl<INF>2- (HCFC-141b).......................            0.12            7.8            0.10             0.00
    C<INF>2H<INF>3F<INF>2Cl- (HCFC-142b).......................            0.06           19.1            0.14             0.00
    C<INF>3HFCl<INF>6- (HCFC-221).........................      [Reserved]  ..............  ..............            0.00
    C<INF>3HF<INF>2Cl<INF>5- (HCFC-222)........................      [Reserved]  ..............  ..............            0.00
    C<INF>3HF<INF>3Cl<INF>4- (HCFC-223)........................      [Reserved]  ..............  ..............            0.00
    C<INF>3HF<INF>4Cl<INF>3- (HCFC-224)........................      [Reserved]  ..............  ..............            0.00
    C<INF>3HF<INF>5Cl<INF>2- (HCFC-225ca)......................      [Reserved]            1.5            0.01             0.00
                                                  ..............           -1.7                                 
        (HCFC-225cb)............................      [Reserved]            5.1            0.04             0.00
    C<INF>3HF<INF>6Cl- (HCFC-226).........................      [Reserved]  ..............  ..............            0.00
    C<INF>3H<INF>2FCl<INF>5- (HCFC-231)........................      [Reserved]  ..............  ..............            0.00
    C<INF>3H<INF>2F<INF>24- (HCFC-232).........................      [Reserved]  ..............  ..............            0.00
    C<INF>3H<INF>2F<INF>3Cl<INF>3- (HCFC-233).......................      [Reserved]  ..............  ..............            0.00
    C<INF>3H<INF>2F<INF>4Cl<INF>2- (HCFC-234).......................      [Reserved]  ..............  ..............            0.00
    C<INF>3H<INF>2F<INF>5Cl- (HCFC-235)........................      [Reserved]  ..............  ..............            0.00
    C<INF>3H<INF>3FCl<INF>4- (HCFC-241)........................      [Reserved]  ..............  ..............            0.00
    C<INF>3H<INF>3F<INF>2Cl<INF>3- (HCFC-242).......................      [Reserved]  ..............  ..............            0.00
    C<INF>3H<INF>3F<INF>3Cl<INF>2- (HCFC-243).......................      [Reserved]  ..............  ..............            0.00
    C<INF>3H<INF>3F<INF>4Cl- (HCFC-244)........................      [Reserved]  ..............  ..............            0.00
    C<INF>3H<INF>4FCl<INF>3- (HCFC-251)........................      [Reserved]  ..............  ..............            0.00
    C<INF>3H<INF>4F<INF>2Cl<INF>2- (HCFC-252).......................      [Reserved]  ..............  ..............            0.00
    C<INF>3H<INF>4F<INF>3Cl- (HCFC-253)........................      [Reserved]  ..............  ..............            0.00
    C<INF>3H<INF>5FCl<INF>2- (HCFC-261)........................      [Reserved]  ..............  ..............            0.00
    C<INF>2H<INF>5F<INF>2Cl- (HCFC-262)........................      [Reserved]  ..............  ..............            0.00
    C<INF>3H<INF>6FCl- (HCFC-271).........................      [Reserved]  ..............  ..............            0.00
    All isomers of the above chemicals..........                                                                
(3) [Reserved]                                                                                                  
----------------------------------------------------------------------------------------------------------------


[[Page 25009]]

Appendix G to Subpart A--UNEP Recommendations for Conditions 
Applied to Exemption for Laboratory and Analytical Uses

    1. Laboratory purposes are identified at this time to include 
equipment calibration; use as extraction solvents, diluents, or 
carriers for chemical analysis; biochemical research; inert solvents 
for chemical reactions, as a carrier or laboratory chemical and 
other critical analytical and laboratory purposes. Production for 
laboratory and analytical purposes is authorized provided that these 
laboratory and analytical chemicals shall contain only controlled 
substances manufactured to the following purities:

  CTC (reagent grade)....................................    99.5       
  1,1,1- trichloroethane.................................    99.0       
  CFC-11.................................................  ......   99.5
  CFC-13.................................................  ......   99.5
  CFC-12.................................................  ......   99.5
  CFC-113................................................  ......   99.5
  CFC-114................................................  ......   99.5
  Other w/ Boiling P>20 deg..............................   C99.5       
  Other w/ Boiling P<20 deg..............................   C99.0       
                                                                        

    2. These pure, controlled substances can be subsequently mixed 
by manufacturers, agents or distributors with other chemicals 
controlled or not controlled by the Montreal Protocol as is 
customary for laboratory and analytical uses.
    3. These high purity substances and mixtures containing 
controlled substances shall be supplied only in re-closable 
containers or high pressure cylinders smaller than three litres or 
in 10 millilitre or smaller glass ampoules, marked clearly as 
substances that deplete the ozone layer, restricted to laboratory 
use and analytical purposes and specifying that used or surplus 
substances should be collected and recycled, if practical. The 
material should be destroyed if recycling is not practical.
    4. Parties shall annually report for each controlled substance 
produced: the purity; the quantity; the application, specific test 
standard, or procedure requiring its uses; and the status of efforts 
to eliminate its use in each application. Parties shall also submit 
copies of published instructions, standards, specifications, and 
regulations requiring the use of the controlled substance.

Appendix H to Subpart A--Clean Air Act Amendments of 1990 Phaseout 
Schedule for Production of Ozone-Depleting Substances

------------------------------------------------------------------------
                                                                 Other  
                                       Carbon       Methyl       class  
               Date                tetrachloride  chloroform  substances
                                     (percent)     (percent)   (percent)
------------------------------------------------------------------------
1994.............................           70            85          65
1995.............................           15            70          50
1996.............................           15            50          40
1997.............................           15            50          15
1998.............................           15            50          15
1999.............................           15            50          15
2000.............................  .............          20            
2001.............................  .............          20            
------------------------------------------------------------------------

[FR Doc. 95-10616 Filed 5-9-95; 8:45 am]
BILLING CODE 6560-50-P