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

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 ozonedepleting 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
Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations 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 ozonedepleting 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:

• Either transformed or destroyed,

• Produced for export to Article 5

countries,

• Produced for essential uses as

authorized by the Protocol and CAA and

consistent with essential-use

allowances, or

• 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:

• Either transformed or destroyed,

• Previously used (including recycled

or reclaimed),

• Imported for essential uses as

authorized by the Protocol and CAA and

consistent with essential-use

allowances,

• Transhipped through the United

States to another Party to the Protocol,

or

• 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 essentialuse 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
24972 Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations

result, EPA requires producers and

importers to receive an IRS certification

of intent to transform or a destruction

verification from all second- or thirdparty 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 essentialuse 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
Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations 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

§ 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]

Date

Carbon

Tetrachloride

(percent)

Methyl

Chloroform

(percent)

Other

class I

substances

(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 § 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
24974 Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations

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 § 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 § 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 § 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 essentialuse 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 Consortium (IPAC)*.1996 CFC–11 .......................................... 749.8.

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.
Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations 24975

ESSENTIAL USES AGREED TO BY THE PARTIES TO THE PROTOCOL AT THE SIXTH MEETING IN OCTOBER 1994—Continued

Company Year Chemical Quantity (metric tons)

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.

*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 essentialuse 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 essentialuse 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
24976 Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations

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 halon1211, 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 § 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 § 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 essentialuse 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 interpollutant 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
Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations 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 § 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-peryear 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 onceper-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,
24978 Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations

1993, that allowed the importation of

used or recycled controlled substances

without allowances (§ 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:

• The name and quantity of the used

controlled substance to be imported

(including material that has been

recycled or reclaimed),

• The name and address of the

importer, the importer I.D. number, the

contact person, and the phone and fax

numbers,

• Name and address of the source

facility (facilities) of the used controlled

substance, including a description of the

previous use(s), when possible;

• Name and address of the exporter

and/or foreign owner of the material,

• The U.S. port of entry for the

import, the expected date of shipment

and the vessel transporting the

chemical,

• The intended future use of the used

controlled substance,

• The name, address and contact

person of the U.S. reclamation facility,

where applicable,

• 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

§ 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 § 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.
Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations 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 nonobjection 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-byshipment 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 ozonedepleting 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 onboard 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
24980 Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations

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 § 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 intercompany 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 reexported 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
Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations 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 nonexistent 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 doublecounting. 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 interParty trades (59 FR 56288). The

comment points out that eliminating the

consumption allowances from an interParty trade would not be a problem, if,

as under the December 10, 1993 final

rule, § 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 § 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 twotier 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
24982 Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations

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 § 82.6

and § 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 § 82.6 and § 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 ozonedepleting substances as restricted by the

Montreal Protocol. The regulatory

language under § 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 § 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 § 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
Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations 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 nonemissive 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 nonemissive 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 InterPollutant 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 § 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 interpollutant 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 § 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 byproducts of research and development

applications to the list of inadvertent or

coincidental creations of insignificant

quantities so that these unintended byproducts 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 § 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
24984 Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations

destroyed or transformed. The request

for credits should include:

• The identity and address of the

person;

• The name, quantity and volume of

controlled substance destroyed or

transformed;

• A copy of the invoice or receipt

documenting the sale or transfer of the

controlled substance to the person;

• A certification of the previous use

of the controlled substance;

• For destruction credits, a

certification that the controlled

substance was destroyed and a

certification of the efficiency of the

destruction process; and

• 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:

• The name and quantity of the used

controlled substance to be imported

(including material that has been

recycled or reclaimed),

• The name and address of the

importer, the importer I.D. number, the

contact person, and the phone and fax

numbers,

• Name and address of the source(s)

of the used controlled substance,

including a description of the previous

use(s), when possible;

• Name and address of the exporter

and/or foreign owner of the material,

• The U.S. port of entry for the

import, the expected date of shipment

and the vessel transporting the

chemical, where available,

• The intended future use of the used

controlled substance,

• The name, address and contact

person of the U.S. reclamation facility,

where applicable,

• 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 § 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 § 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.
Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations 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 § 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 § 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-byshipment. 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 nonemissive 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 § 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
24986 Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations

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 ozonefriendly 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 OzoneDepleting 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

§ 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 ozonedepleting 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.

§ 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.

§ 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 § 82.9(a).

Baseline consumption allowances

means the consumption allowances

apportioned under § 82.6.

Baseline production allowances

means the production allowances

apportioned under § 82.5.

Calculated level means the weighted

amount of a controlled substance
Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations 24987

1Taiwan is not considered a foreign state.

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 §§ 82.6 and

§ 82.7 and 82.10, as may be modified

under § 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

§ 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 § 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

Foreign state not Party to or NonParty 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 offloaded (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
24988 Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations

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

§ 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 §§ 82.7, 82.5

and 82.9, and as may be modified under

§ 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

§ 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).

§ 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
Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations 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

§ 82.9, or the amount of conferred

unexpended destruction and

transformation credits as obtained under

§ 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

§ 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 § 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 § 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 § 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
24990 Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations

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 § 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

§ 82.5(h) and § 82.6(h).

(o) Effective January 1, 2020, no

person may produce or consume (as

defined under § 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 § 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 §§ 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, essentialuse 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 Consortium (IPAC) 1.1996 CFC–11 ............................................ 749.8.

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]
Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations 24991

§ 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.

Controlled substance Person Allowances

(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:

CCl4 .................................................. 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 Corporation ........................................................... 19,945,788

Ethyl Corporation ...................................................................................... 8,233,894

(g) For Group VII controlled substances:

HBFC 22B1–1 .................................. Great Lakes Chemical Corporation ........................................................... 46,211

(h) For class II controlled substances: [Reserved]
24992 Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations

§ 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 America .......................................................... 5,800

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
Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations 24993

Controlled substance Person Allowances

(kg)

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:

CCl4 .................................................. 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 America .......................................................... 9

(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 Corporation ........................................................... 15,514,746

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 Corporation ........................................................... 40,110

(h) For class II controlled substances: [Reserved]

§ 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 §§ 82.5 and 82.6.

[In percent]

Control period

Class I substances in

groups I and

III

Class I substances in

group II

Class I substances in

group IV

Class I substances in

group V

Class I substances in

group VI

Class I substances in

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
24994 Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations

[In percent]—Continued

Control period

Class I substances in

groups I and

III

Class I substances in

group II

Class I substances in

group IV

Class I substances in

group V

Class I substances in

group VI

Class I substances in

group VII

2000 .......................................................... 0 0 0 0 100 0

2001 .......................................................... 0 0 0 0 0 0

§ 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.

(a) Every person apportioned baseline

production allowances for class I

controlled substances under § 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

§ 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

§ 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

§ 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

§ 82.11 and transfer Article 5 allowances

as under § 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

§ 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 §§ 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
Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations 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 § 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
24996 Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations

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.

§ 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 § 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

§ 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 § 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

§ 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
Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations 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.

§ 82.11 Exports to Article 5 Parties.

(a) If apportioned Article 5 allowances

under § 82.9(a), a person may produce

class I controlled substances, in

accordance with the prohibitions in

§ 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]

§ 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 § 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
24998 Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations

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
Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations 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, interpollutant trades will be permitted

during the 45 days after the end of a

control period.

(c) Inter-company transfers and Interpollutant 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]

§ 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 § 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
25000 Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations

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 § 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 essentialuse 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 § 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 § 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

§ 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 § 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;
Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations 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 (§ 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 § 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 § 82.10 (additional consumption

allowances), or under § 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

§ 82.9(e) or destruction and

transformation credits under § 82.9(f) or

consumption allowances under

§ 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 § 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
25002 Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations

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

§ 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 § 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 § 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 § 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:

CFCl3-Trichlorofluoromethane

(CFC–ll) ................................. 1.0

CF2Cl2-Dichlorofifluoromethane

(CFC–12) ............................... 1.0

C2F3Cl3-Trichlorotrifluoroethane

(CFC–113) ............................. 0.8

C2F4Cl2-

Dichlorotetrafluoroethane

(CFC–114) ............................. 1.0

C2F5ClMonochloropentafluoroethane

(CFC–115) ............................. 0.6

All isomers of the above chemicals

B. Group II:

CF2ClBrBromochlorodifluoromethane

(Halon-1211) .......................... 3.0

CF3Br-Bromotrifluoromethane

(Halon-1301) .......................... 10.0

C2F4Br2-

Dibromotetrafluoroethane

(Halon-2402) .......................... 6.0

All isomers of the above chemicals

C. Group III:

CF3Cl-Chlorotrifluoromethane

(CFC–13) ............................... 1.0

C2FCl5-(CFC–111) .................... 1.0

C2F2Cl4-(CFC–112) ................... 1.0

C3FCl7-(CFC–211) .................... 1.0

C3F2Cl6-(CFC–212) ................... 1.0

C3F3Cl5-(CFC–213) ................... 1.0

C3F4Cl4-(CFC–214) ................... 1.0

C3F5Cl3-(CFC–215) ................... 1.0

C3F6Cl2-(CFC–216) ................... 1.0

C3F7Cl-(CFC–217) .................... 1.0

All isomers of the above chemicals

D. Group IV: CCl4-Carbon Tetrachloride ...................................... 1.1

E. Group V:

C2H3Cl3-1,1,1 Trichloroethane

(Methyl chloroform) ............... 0.1

All isomers of the above chemical except 1,1,2-

trichloroethane

F. Group VI: CH3Br—

Bromomethane (Methyl Bromide) ......................................... 0.7

G. Group VII:

CHFBR2 .................................... 1.00

CHF2Br (HBFC–2201) .............. 0.74

CH2FBr ...................................... 0.73

C2HFBr4 .................................... 0.3–0.8

C2HF2Br3 ................................... 0.5–1.8

C2HF3Br2 ................................... 0.4–1.6

C2HF4Br .................................... 0.7–1.2
Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations 25003

Class 1 controlled substances ODP

C2H2FBr3 ................................... 0.1–1.1

C2H2F2Br2 .................................. 0.2–1.5

C2H2F3Br ................................... 0.7–1.6

C2H2FBr2 ................................... 0.1–1.7

C2H3F2Br ................................... 0.2–1.1

C2H4FBr .................................... 0.07–0.1

C3HFBr6 .................................... 0.3–1.5

C3HF2Br5 ................................... 0.2–1.9

C3HF3Br4 ................................... 0.3–1.8

C3HF4Br3 ................................... 0.5–2.2

C3HF5Br2 ................................... 0.9–2.0

C3HF6Br .................................... 0.7–3.3

C3H2FBR5 .................................. 0.1–1.9

C3H2F2BR4 ................................ 0.2–2.1

C3H2F3Br3 .................................. 0.2–5.6

C3H2F4Br2 .................................. 0.3–7.5

C3H2F5BR .................................. 0.9–14

C3H3FBR4 .................................. 0.08–1.9

C3H3F2Br3 .................................. 0.1–3.1

C3H3F3Br2 .................................. 0.1–2.5

C3H3F4Br ................................... 0.3–4.4

C3H4FBr3 ................................... 0.03–0.3

C3H4F2Br2 .................................. 0.1–1.0

C3H4F3Br ................................... 0.07–0.8

C3H5FBr2 ................................... 0.04–0.4

C3H5F2Br ................................... 0.07–0.8

C3H6FB ...................................... 0.02–0.7

Appendix B to Subpart A—Class II

Controlled Substances

Controlled substance ODP

CHFCl2-Dichlorofluoromethane

(HCFC–21).

[Reserved].

CHF2Cl-Chlorodifluoromethane

(HCFC–22).

0.05

CH2FCl-Chlorofluoromethane

(HCFC–31).

[Reserved].

C2HFCl4-(HCFC–121) ................ [Reserved].

C2HF2Cl3-(HCFC–122) ............... [Reserved].

C2HF3Cl2-(HCFC–123) ............... 0.02

C2HF4Cl-(HCFC–124) ................ 0.02

C2H2FCl3-(HCFC–131) ............... [Reserved].

C2H2F2Cl2-(HCFC–132b) ........... [Reserved].

C2H2F3Cl-(HCFC–133a) ............. [Reserved].

C2H3FCl2-(HCFC–141b) ............. 0.12

C2H3F2Cl-(HCFC–142b) ............. 0.06

C3HCFCl6-(HCFC–221) .............. [Reserved].

C3HF2Cl5-(HCFC–222) .............. [Reserved].

C3HF3Cl4-(HCFC–223) ............... [Reserved].

C3HF4Cl3-(HCFC–224) ............... [Reserved].

C3HF5Cl2-(HCFC–225ca) ........... [Reserved].

C3HF5Cl-(HCFC–225cb) ............ [Reserved].

C3HF6Cl-(HCFC–226) ................ [Reserved].

C3H2FCl5-(HCFC–231) ............... [Reserved].

C3H2F2Cl4-(HCFC–232) ............. [Reserved].

C3H2F3Cl3-(HCFC–233) ............. [Reserved].

C3H2F4Cl2-(HCFC–234) ............. [Reserved].

C3H2F5Cl-(HCFC–235) ............... [Reserved].

C3H3FCl4-(HCFC–241) ............... [Reserved].

C3H3F2Cl3-(HCFC–242) ............. [Reserved].

C3H3F3Cl2-(HCFC–243) ............. [Reserved].

C3H3F4Cl-(HCFC–244) ............... [Reserved].

C3H4FCl3-(HCFC–251) ............... [Reserved].

C3H4F2Cl2-(HCFC–252) ............. [Reserved].

C3H4F3Cl-(HCFC–253) ............... [Reserved].

C3H5FCl2-(HCFC–261) ............... [Reserved].

C3H5F2Cl-(HCFC–262) ............... [Reserved].

C3H6FCl-(HCFC–271) ................ [Reserved].

All isomers of the above chemicals

APPENDIX C TO SUBPART A—PARTIES

TO THE MONTREAL PROTOCOL:

ANNEX 1—ALL PARTIES

Foreign state

Montreal

protocol

London

amendments

Copenhagen

amendments

Algeria ................... √ √ ............

Antigua and Barbuda ................... √ √ √

Argentina ............... √ √ ............

Australia ................ √ √ √

Austria ................... √ √

Bahamas ............... √ √ √

Bahrain .................. √ √ ............

Bangladesh ........... √ √ ............

Barbados ............... √ √ √

Belarus .................. √ ............ ............

Belgium ................. √ √ ............

Benin ..................... √ ............ ............

Bolivia .................... √ √ √

Bosnia and

Hertsegovina ..... √ ............ ............

Botswana .............. √ ............ ............

Brazil ..................... √ √ ............

Brunei Darussalam √ ............ ............

Bulgaria ................. √ ............ ............

Burkina Faso ......... √ √ ............

Cameroon ............. √ √ ............

Canada .................. √ √ √

Central African Republic ................. √ ............ ............

Chad ...................... √ ............ √

Chile ...................... √ √ √

China ..................... √ √ ............

Colombia ............... √ √ ............

Comoros ................ √ √ ............

Congo .................... √ √ ............

Costa Rica ............ √ ............ ............

Cote Ivoire ............. √ √ ............

Croatia ................... √ √ ............

Cuba ...................... √ ............ √

Cyprus ................... √ √ ............

Czech Republic ..... √ ............ ............

Denmark ................ √ √ √

Dominica ............... √ √ ............

Dominican Republic ....................... √ ............ ............

Ecuador ................. √ √ √

Egypt ..................... √ √ √

El Salvador ............ √ ............ ............

Ethiopia ................. √ ............ ............

European Community ..................... √ √ ............

Fiji .......................... √ √ ............

Finland .................. √ √ √

France ................... √ √ ............

Gabon ................... √ ............ ............

Gambia .................. √ ............ ............

Germany ............... √ √ √

Ghana ................... √ √ ............

Greece .................. √ √ √

Grenada ................ √ √ ............

Guatemala ............. √ ............ ............

Guinea ................... √ √ ............

Guyana .................. √ √ ............

Honduras ............... √ ............ ............

Hungary ................. √ √ √

Iceland ................... √ √ √

India ...................... √ √ ............

Indonesia ............... √ √ ............

Iran ........................ √ ............ ............

Ireland ................... √ √ ............

Israel ..................... √ √ ............

APPENDIX C TO SUBPART A—PARTIES

TO THE MONTREAL PROTOCOL:

ANNEX 1—ALL PARTIES—Continued

Foreign state

Montreal

protocol

London

amendments

Copenhagen

amendments

Italy ........................ √ √ √

Jamaica ................. √ √ ............

Japan .................... √ √ √

Jordan ................... √ √

Kenya .................... √ √ √

Kiribati ................... √ ............ ............

Korea, Democratic

People’s Republic of ................... √

Korea, Republic of √ √ √

Kuwait ................... √ √ √

Lebanon ................ √ √ ............

Lesotho ................. √ ............ ............

Libya ...................... √ ............ ............

Liechtenstein ......... √ √ ............

Lithuania ................ √ ............ ............

Luxembourg .......... √ √ √

Macedonia ............. √ ............ ............

Malawi ................... √ √ √

Malaysia ................ √ √ √

Maldives ................ √ √ ............

Mali ........................ √ √ ............

Malta ..................... √ √ ............

Marshall Islands .... √ √ √

Mauritania ............. √ ............ ............

Mauritius ................ √ √ √

Mexico ................... √ √ √

Monaco ................. √ √ ............

Morocco ................ √ ............ ............

Mozambique .......... √ √ √

Myranmar .............. √ √ ............

Namibia ................. √ ............ ............

Nepal ..................... √ √ ............

Netherlands ........... √ √ √

New Zealand ......... √ √ √

Nicaragua .............. √ ............ ............

Niger ...................... √ ............ ............

Nigeria ................... √ ............ ............

Norway .................. √ √ √

Pakistan ................ √ √ √

Panama ................. √ √ ............

Papua New Guinea √ √ ............

Paraguay ............... √ √ ............

Peru ....................... √ √ ............

Philippines ............. √ √ ............

Poland ................... √ ............ ............

Portugal ................. √ √ ............

Romania ................ √ √ ............

Russian Federation √ √ ............

Saint Kitts and

Nevis .................. √ ............ √

Saint Lucia ............ √ ............ ............

Samoa ................... √ ............ ............

Saudi Arabia ......... √ √ √

Senegal ................. √ √ ............

Seychelles ............. √ √ √

Singapore .............. √ √ ............

Slovakia ................. √ √ ............

Slovenia ................ √ √ ............

Solomon Islands ... √ √ ............

South Africa .......... √ √ ............

Spain ..................... √ √ ............

Sri Lanka ............... √ √ ............

Sudan .................... √ ............ ............

Swaziland .............. √ ............ ............

Sweden ................. √ √ √

Switzerland ............ √ √ ............
25004 Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations

** ‘‘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.

APPENDIX C TO SUBPART A—PARTIES

TO THE MONTREAL PROTOCOL:

ANNEX 1—ALL PARTIES—Continued

Foreign state

Montreal

protocol

London

amendments

Copenhagen

amendments

Syrian Arab Republic ....................... √ ............ ............

Tanzania, United

Republic of ........ √ √ ............

Thailand ................ √ √ ............

Togo ...................... √ ............ ............

Trinidad and Tobago ................... √ ............ ............

Tunisia ................... √ √ √

Turkey ................... √ ............ ............

Turkministan .......... √ √ ............

Tuvalu ................... √ ............ ............

Uganda .................. √ √ ............

Ukranian SSR ....... √ ............ ............

United Arab Emirates .................... √ ............ ............

United Kingdom .... √ √ √

Uruguay ................. √ √ ............

United States ........ √ √ √

Uruguay ................. √ √ ............

Uzbekistan ............ √ ............ ............

Vanuatu ................. √ √ √

Venezuela ............. √ √ ............

Viet Nam ............... √ √ √

APPENDIX C TO SUBPART A—PARTIES

TO THE MONTREAL PROTOCOL:

ANNEX 1—ALL PARTIES—Continued

Foreign state

Montreal

protocol

London

amendments

Copenhagen

amendments

Yugoslavia ............. √ ............ ............

Zaire ...................... √ √ √

Zambia .................. √ √ ............

Zimbabwe .............. √ √ √

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.** The Appendix lists available

U.S. harmonized tariff schedule codes

identifying headings and subheadings for

Annex D products that may contain

controlled substances.

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—
Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations 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.

Heading/Subheading Article Description

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 ** **:

• varnishes

• perfumes

• preparations for use on hair

• preparations for oral and dental hygiene

• shaving preparations

• personal deodorants, bath preparations

• prepared room deodorizers

• soaps

• lubricants

• polishes and creams

• explosives

• insecticides, fungicides, herbicides,

disinfectants

• arms and ammunition

• household products such as footwear or

leather polishes

• 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).
25006 Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations

******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

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.******

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.
Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations 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:

CFCl3-Trichlorofluoromethane (CFC–11) ............................................ 1.0 60.0 1.0 0.00

CF2Cl2-Dichlorodifluoromethane (CFC–12) ........................................ 1.0 120.0 1.5 0.00

C2F3Cl3-Trichlorotrifluoroethane (CFC–113) ....................................... 0.8 90.0 1.11 0.00

C2F4Cl2-Dichlorotetrafluoroethane (CFC–114) ................................... 1.0 200.00 1.8 0.00

C2F5Cl-Monochloropentafluoroethane (CFC–115) ............................. 0.6 400.0 2.0 0.00

All isomers of the above chemicals .................................................... [Reserved]

2. Group II:

CF2ClBr-Bromochlorodifluoromethane (Halon-1211) .......................... 3.0 12 0.06 0.13

....................... ¥18 ¥.08 ¥.03

CF3Br-Bromotrifluoromethane (Halon-1301) ....................................... 10.0 72 0.00 1.00

....................... ¥107 ......................... .........................

C2F4Br2-Dibromotetrafluoroethane (Halon-2402) ................................ 6.0 23 0.00 0.30

....................... ¥28 ......................... ¥.37

All isomers of the above chemicals .................................................... [Reserved]

3. Group III:

CF3Cl-Chlorotrifluoromethane (CFC–13) ............................................ 1.0 120 0.88 0.00

¥250 ¥1.83

C2FCl5- (CFC–111) ............................................................................. 1.0 60 1.04 0.00

¥90 ¥1.56

C2F2Cl4- (CFC–112) ............................................................................ 1.0 60 0.90 0.00

¥90 ¥1.35

C3FCl7- (CFC–211) ............................................................................. 1.0 100 1.76 0.00

¥500 ¥8.81

C3F2Cl6- (CFC–212) ............................................................................ 1.0 100 1.60 0.00

¥500 ¥7.98

C3F3Cl5- (CFC–213) ............................................................................ 1.0 100 1.41 0.00

¥500 ¥7.06

C3F4Cl4- (CFC–214) ............................................................................ 1.0 100 1.20 0.00

¥500 ¥6.01

C3F5Cl3 -(CFC–215) ............................................................................ 1.0 100 0.96 0.00

¥500 ¥4.82

C3F6Cl2- (CFC–216) ............................................................................ 1.0 100 0.69 0.00

¥500 ¥3.45

C3F7Cl- (CFC–217) ............................................................................. 1.0 100 0.37 0.00

¥500 ¥1.87

All isomers of the above chemicals .................................................... [Reserved]

4. Group IV:

CCl4 -Carbon Tetrachloride ................................................................. 1.1 50.0 1.0 0.00

5. Group V:

C2H3Cl3-1,1,1 Trichloroethane (Methyl chloroform) ............................ 0.1 6.3 0.11 0.00

All isomers of the above chemical except 1,1,2-trichloroethane ........ [Reserved]

F. Group VI:

CH3Br-Bromomethane (Methyl Bromide) ........................................... 0.7 ......................... [Reserved] .........................

G. Group VII:

CHFBR2- ............................................................................................. 1.00 ......................... [Reserved]
25008 Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations

Controlled substance ODP AT L CLP BLP

CHF2Br- (HBFC–22B1) ....................................................................... 0.74 ......................... [Reserved] .........................

CH2FBr ................................................................................................ 0.73 ......................... [Reserved]

C2HFBr4 ............................................................................................... 0.3—0.8 ......................... [Reserved]

C2HF2Br3 ............................................................................................. 0.5—1.8 ......................... [Reserved]

C2HF3Br2 ............................................................................................. 0.4—1.6 ......................... [Reserved]

C2HF4Br ............................................................................................... 0.7—1.2 ......................... [Reserved]

C2H2FBr3 ............................................................................................. 0.1—1.1 ......................... [Reserved]

C2H2F2Br2 ............................................................................................ 0.2—1.5 ......................... [Reserved]

C2H2F3Br ............................................................................................. 0.7—1.6 ......................... [Reserved]

C2H3FBr2 ............................................................................................. 0.1—1.7 ......................... [Reserved]

C2H3F2Br ............................................................................................. 0.2—1.1 ......................... [Reserved]

C2H4FBr ............................................................................................... 0.07—0.1 ......................... [Reserved]

C3HFBr6 ............................................................................................... 0.3—1.5 ......................... [Reserved]

C3HF2Br5 ............................................................................................. 0.2—1.9 ......................... [Reserved]

C3HF3BR4 ............................................................................................ 0.3—1.8 ......................... [Reserved]

C3HF4Br3 ............................................................................................. 0.5—2.2 ......................... [Reserved]

C3HF5Br2 ............................................................................................. 0.9—2.0 ......................... [Reserved]

C3HF6Br ............................................................................................... 0.7—3.3 ......................... [Reserved]

C3H2FBR5 ............................................................................................ 0.1—1.9 ......................... [Reserved]

C3H2F2BR4 .......................................................................................... 0.2—2.1 ......................... [Reserved]

C3H2F3Br3 ............................................................................................ 0.2—5.6 ......................... [Reserved]

C3H2F4Br2 ............................................................................................ 0.3—7.5 ......................... [Reserved]

C3H2F5BR ............................................................................................ 0.9—1.4 ......................... [Reserved]

C3H3FBR4 ............................................................................................ 0.08—1.9 ......................... [Reserved]

C3H3F2Br3 ............................................................................................ 0.1—3.1 ......................... [Reserved]

C3H3F3Br2 ............................................................................................ 0.1—2.5 ......................... [Reserved]

C3H3F4Br ............................................................................................. 0.3—4.4 ......................... [Reserved]

C3H4FBr3 ............................................................................................. 0.03—0.3 ......................... [Reserved]

C3H4F2Br2 ............................................................................................ 0.1—1.0 ......................... [Reserved]

C3H4F3Br ............................................................................................. 0.07—0.8 ......................... [Reserved]

C3H5FBr2 ............................................................................................. 0.04—0.4 ......................... [Reserved]

C3H5F2Br ............................................................................................. 0.07—0.8 ......................... [Reserved]

C3H6FB ................................................................................................ 0.02—0.7 ......................... [Reserved]

B. Class II:

CHFCl2-Dichlorofluoromethane (HCFC–21) ....................................... [Reserved] 2.1 0.03 0.00

CHF2Cl-Chlorodifluoromethane (HCFC–22) ....................................... 0.05 15.3 0.14 0.00

CH2FCl-Chlorofluoromethane (HCFC–31) .......................................... [Reserved] 1.44 0.02 0.00

C2HFCl4- (HCFC–121) ........................................................................ [Reserved] 0.6 0.01 0.00

C2HF2Cl3- (HCFC–122) ....................................................................... [Reserved] 1.4 0.02 0.00

C2HF3Cl2- (HCFC–123) ....................................................................... 0.02 1.6 0.016 0.00

C2HF4Cl- (HCFC–124) ........................................................................ 0.02 6.6 0.04 0.00

C2H2FCl3- (HCFC–131) ....................................................................... [Reserved] 4.0 0.06 0.00

C2H2F2Cl2- (HCFC–132b) ................................................................... [Reserved] 4.2 0.05 0.00

C2H2F3Cl- (HCFC–133a) ..................................................................... [Reserved] 4.8 0.03 0.00

C2H3FCl2- (HCFC–141b) ..................................................................... 0.12 7.8 0.10 0.00

C2H3F2Cl- (HCFC–142b) ..................................................................... 0.06 19.1 0.14 0.00

C3HFCl6- (HCFC–221) ........................................................................ [Reserved] ......................... ......................... 0.00

C3HF2Cl5- (HCFC–222) ....................................................................... [Reserved] ......................... ......................... 0.00

C3HF3Cl4- (HCFC–223) ....................................................................... [Reserved] ......................... ......................... 0.00

C3HF4Cl3- (HCFC–224) ....................................................................... [Reserved] ......................... ......................... 0.00

C3HF5Cl2- (HCFC–225ca) ................................................................... [Reserved] 1.5 0.01 0.00

....................... ¥1.7

(HCFC–225cb) ............................................................................. [Reserved] 5.1 0.04 0.00

C3HF6Cl- (HCFC–226) ........................................................................ [Reserved] ......................... ......................... 0.00

C3H2FCl5- (HCFC–231) ....................................................................... [Reserved] ......................... ......................... 0.00

C3H2F24- (HCFC–232) ......................................................................... [Reserved] ......................... ......................... 0.00

C3H2F3Cl3- (HCFC–233) ..................................................................... [Reserved] ......................... ......................... 0.00

C3H2F4Cl2- (HCFC–234) ..................................................................... [Reserved] ......................... ......................... 0.00

C3H2F5Cl- (HCFC–235) ....................................................................... [Reserved] ......................... ......................... 0.00

C3H3FCl4- (HCFC–241) ....................................................................... [Reserved] ......................... ......................... 0.00

C3H3F2Cl3- (HCFC–242) ..................................................................... [Reserved] ......................... ......................... 0.00

C3H3F3Cl2- (HCFC–243) ..................................................................... [Reserved] ......................... ......................... 0.00

C3H3F4Cl- (HCFC–244) ....................................................................... [Reserved] ......................... ......................... 0.00

C3H4FCl3- (HCFC–251) ....................................................................... [Reserved] ......................... ......................... 0.00

C3H4F2Cl2- (HCFC–252) ..................................................................... [Reserved] ......................... ......................... 0.00

C3H4F3Cl- (HCFC–253) ....................................................................... [Reserved] ......................... ......................... 0.00

C3H5FCl2- (HCFC–261) ....................................................................... [Reserved] ......................... ......................... 0.00

C2H5F2Cl- (HCFC–262) ....................................................................... [Reserved] ......................... ......................... 0.00

C3H6FCl- (HCFC–271) ........................................................................ [Reserved] ......................... ......................... 0.00

All isomers of the above chemicals .................................................... [Reserved]
Federal Register / Vol. 60, No. 90 / Wednesday, May 10, 1995 / Rules and Regulations 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° ...... C99.5

Other w/ Boiling P<20° ...... 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 OzoneDepleting Substances

Date

Carbon

tetrachloride

(percent)

Methyl

chloroform (percent)

Other

class

substances

(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