14608 Federal Register / Vol. 60, No. 52 / Friday, March 17, 1995 / Rules and Regulations

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 82

[FRL–5174–5]

Protection of Stratospheric Ozone;

Refrigerant Recycling

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Direct final rule.

SUMMARY: Through this action EPA is

amending the Clean Air Act section 608

refrigerant recycling regulations to

extend the effectiveness of the

refrigerant purity requirements at

§ 82.154(g) and (h), which are currently

scheduled to expire on May 15, 1995,

only until March 18, 1996 or until EPA

can complete rulemaking to adopt new

refrigerant purity requirements based on

industry guidelines, whichever comes

first. EPA is extending the requirements

in response to requests from the airconditioning and refrigeration industry

in order to avoid widespread

contamination of the stock of

chlorofluorocarbon (CFC) and

hydrochlorofluorocarbon (HCFC)

refrigerants, which could result from the

lapse of the purity standard. Such

contamination would cause extensive

damage to air-conditioning and

refrigeration equipment, release of

refrigerants, and refrigerant shortages

with consequent price increases.

In the proposed rules section of

today’s Federal Register, EPA is

proposing to extend the effectiveness of

the refrigerant purity requirements at

§ 82.154(g) and (h) and soliciting public

comment on this extension. If adverse

comments are received on this direct

final rule, EPA will withdraw the direct

final rule and address the comments

received in a subsequent final rule on

the related proposed rule. No additional

opportunity for public comment on the

extension will be provided.

DATES: This final action will become

effective on May 16, 1995 unless EPA is

notified by April 17, 1995 that any

person wishes to submit adverse

comment. If such notification is

received and EPA withdraws this direct

final rule, then timely notice will be

published in the Federal Register.

ADDRESSES: Comments and materials

supporting this rulemaking are

contained in Public Docket No. A–92–

01, Waterside Mall (Ground Floor)

Environmental Protection Agency, 401

M Street SW., Washington, DC 20460 in

room M–1500. Dockets may be

inspected from 8:00 a.m. until 5:30 p.m.,

Monday through Friday. A reasonable

fee may be charged for copying docket

materials. Those wishing to notify EPA

of their intent to submit adverse

comments on this action should contact

Deborah Ottinger, Program

Implementation Branch, Stratospheric

Protection Division, Office of

Atmospheric Programs, Office of Air

and Radiation (6205–J), 401 M Street,

SW., Washington, DC 20460, (Docket #

A–92–01 VIII.F.) (202) 233–9149.

FOR FURTHER INFORMATION CONTACT:

Section 608 Recycling Program

Manager, Program Implementation

Branch, Stratospheric Protection

Division, Office of Atmospheric

Programs, Office of Air and Radiation

(6205–J), 401 M Street SW., Washington,

DC 20460. The Stratospheric Ozone

Information Hotline at 1–800–296–1996

can also be contacted for further

information.

SUPPLEMENTARY INFORMATION: The

contents of this preamble are listed in

the following outline:

I. Overview

II. Background

III. Today’s Action

IV. Effective Date

V. Summary of Supporting Analysis

VI. Judicial Review

I. Overview

Paragraphs 82.154 (g) and (h) of 40

CFR Part 82, subpart F set requirements

for sale of used refrigerant, mandating

that it meet certain purity standards.

These requirements will expire on May

15, 1995. EPA is currently in the process

of adopting new, less restrictive,

refrigerant purity requirements based on

industry guidelines, but will be unable

to complete the rulemaking prior to the

expiration of the existing standards. A

lapse in the standards could result in

widespread contamination of the stock

of CFC and HCFC refrigerants. Such

contamination would cause extensive

damage to air-conditioning and

refrigeration equipment, release of

refrigerants, and refrigerant shortages

with consequent price increases.

Release of CFC and HCFC refrigerants

has been found to deplete stratospheric

ozone, resulting in increased human

and environmental exposure to

ultraviolet radiation. Increased exposure

to ultraviolet radiation in turn causes

increased incidence of certain skin

cancers and cataracts, suppression of

the immune system, damage to plants

(including crops and aquatic

organisms), and increased formation of

ground-level ozone. To avoid these

results, EPA is acting on requests from

the air-conditioning and refrigeration

industry to extend the effectiveness of

the current refrigerant purity

requirements, only until EPA can

complete rulemaking to adopt the new

requirements.

II. Background

On May 14, 1993, EPA published final

regulations establishing a recycling

program for ozone-depleting refrigerants

recovered during the servicing and

disposal of air-conditioning and

refrigeration equipment (58 FR 28660).

These regulations include evacuation

requirements for appliances being

serviced or disposed of, standards and

testing requirements for used refrigerant

sold to a new owner, certification

requirements for refrigerant reclaimers,

and standards and testing requirements

for refrigerant recycling and recovery

equipment.

When EPA promulgated the final rule,

the Agency noted that further

rulemaking would probably be required

to address some issues that had been

raised during the comment period on

the proposed rule (57 FR 58644). One of

these issues was whether a standard for

used refrigerant could be developed that

would protect air-conditioning and

refrigeration equipment, but would

allow technicians to clean refrigerant

themselves, rather than sending the

refrigerant to an off-site reclaimer.

The final rule published on May 14,

1993, requires that refrigerant sold to a

new owner be reclaimed to the ARI 700

Standard of purity by a certified

reclaimer (§ 82.154 (g) and (h)

referencing standard in §§ 82.152(r) and

82.164). As discussed in the final rule,

this requirement was intended to

protect the purity of used refrigerant in

order to prevent damage to airconditioning and refrigeration

equipment from use of contaminated

refrigerant. Equipment damage from

contaminated refrigerant would result in

costs to equipment owners, in releases

of refrigerant from damaged equipment

through increased leakage, servicing and

replacement, and in reduction in

consumer confidence in the quality of

used refrigerant. This reduction in

consumer confidence could in turn lead

to release of refrigerant that was

presumed to be contaminated (and

therefore harmful to equipment),

depleting stratospheric ozone,

decreasing the limited supply of

refrigerants, and forcing the premature

retirement or retrofit of CFC or HCFC

equipment (58 FR 28678).

Although the reclamation

requirements at § 82.154 (g) and (h)

would clearly protect equipment, EPA

believed that a less stringent but still

effective requirement could be

developed, particularly for refrigerant

transferred between owners whose

equipment was similar and was serviced
Federal Register / Vol. 60, No. 52 / Friday, March 17, 1995 / Rules and Regulations 14609

by the same contractor. However, the

only existing refrigerant purity standard

at the time EPA promulgated the rule

was ARI 700, and the only agreed upon

means of enforcing it was by limiting

sale of used refrigerant to only certified

reclaimers.

In order to encourage industry to

explore the possibility of developing

less stringent but still effective

standards and technologies for purifying

refrigerant, EPA adopted a commenter’s

suggestion that the Agency establish an

expiration date, or ‘‘sunset,’’ for the

reclamation requirement. EPA

accordingly made the reclamation

requirements at § 82.154 (g) and (h)

effective until May 15, 1995, two years

after publication of the final rule. EPA

believed that this two-year period

would be sufficient for industry to

develop new guidelines for reuse of

refrigerant and for EPA to complete a

rulemaking to adopt them (58 FR

28679).

In December, 1994, a committee

representing a wide range of interests

within the air-conditioning and

refrigeration industry published

Industry Recycling Guide (IRG–2):

Handling and Reuse of Refrigerants in

the United States. This document

establishes requirements and

recommendations for the reuse of

refrigerant in a number of different

situations, including refrigerant

transfers on the open market and

between equipment owned by different

people but serviced by the same

contractor. EPA believes that these

requirements would protect airconditioning and refrigeration

equipment while permitting

technicians, contractors, and equipment

owners more flexibility than the current

requirements, and EPA is pursuing

rulemaking to adopt the IRG–2

requirements as soon as possible.

However, EPA does not believe that it

will have an opportunity to develop and

publish a proposed rule, take public

comment, and develop and publish a

final rule between now and May 15,

1995, when the current reclamation

requirements will expire.

Representatives of the airconditioning and refrigeration industry

have expressed concern that such a

lapse in refrigerant purity requirements

would result in a number of problems,

including sloppy handling of refrigerant

and dumping of contaminated

refrigerant on the market. These

problems would in turn result in

significant damage to equipment,

release of refrigerant, and aggravated

refrigerant shortages.

Currently, the reclamation

requirement encourages careful

handling of refrigerant, because

refrigerant that is irretrievably

contaminated (for instance through

mixture with other refrigerants) will not

be accepted by any reclaimer, rendering

it worthless. However, if this check is

removed, sloppy handling may become

widespread. This would not only lead to

damage to equipment, but to the

permanent loss of part of the stock of

pure refrigerant through refrigerant

mixture. Even in the best case in which

the mixed refrigerant was properly

disposed of, the limited supply of

refrigerant would thereby be further

reduced, necessitating more retrofit or

replacement of existing equipment.

Unfortunately, it is likely that the mixed

refrigerant would often be used in airconditioning and refrigeration

equipment or vented rather than

properly disposed of.

The possibility of widespread

dumping of refrigerant on the market

has been raised by reports that

contractors and ‘‘recyclers’’ are

stockpiling used refrigerant. In some

cases, dumping dirty refrigerant on the

market might be attractive simply

because it enables the seller of

refrigerant to avoid the costs of

reclamation; in others, it might be

attractive because the refrigerant is

unreclaimable and therefore worthless if

analyzed or sent to a reclaimer. (In fact,

in the latter situation the refrigerant is

worse than worthless, because the

owner of the refrigerant must actually

pay to have the refrigerant properly

disposed of.) In either situation, such

dumping would lead to widespread

equipment damage. This concern is

exacerbated by the date on which the

current reclamation requirements are

scheduled to expire: May 15 falls at the

beginning of the summer, when there is

heavy demand for refrigerant.

III. Today’s Action

In response to these concerns, EPA is

extending the effectiveness of the

current reclamation requirements until

the Agency can adopt replacement

requirements. It was never EPA’s intent

to leave air-conditioning and

refrigeration equipment and refrigerant

supplies unprotected by a purity

standard, but only to replace the

existing standard with a more flexible

standard when that was developed. As

discussed above, EPA is currently

undertaking rulemaking to adopt a more

flexible standard and anticipates

publishing a proposal by mid to late

summer of this year.

IV. Effective Date

This final action will become effective

on May 16, 1995 unless EPA is notified

by April 17, 1995 that any person

wishes to submit adverse comment. If

such notification is received and EPA

withdraws this direct final rule, then

timely notice will be published in the

Federal Register.

V. 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).

EPA believes that this amendment

will have negligible impact on the

regulated community because it simply

extends an existing requirement. This

requirement itself is expected to result

in significant private savings due to

avoided damage to air-conditioning and

refrigeration equipment and
14610 Federal Register / Vol. 60, No. 52 / Friday, March 17, 1995 / Rules and Regulations

preservation of a stock of pure

refrigerant to continue servicing

equipment. An examination of the

impacts of the section 608 rule as a

whole on small entities was discussed

in the final rule (58 FR 28660). That

final rule assessed the impact the rule

may have on small entities. A separate

regulatory impact analysis accompanied

the final rule and is contained in Docket

A–92–01. I certify that this amendment

to the refrigerant recycling rule will not

have any additional negative economic

impacts on any small entities.

C. Paperwork Reduction Act

Any information collection

requirements in a rule must be

submitted for approval to the Office of

Management and Budget (OMB) under

the Paperwork Reduction Act, 44 U.S.C.

3501 et seq. Because no additional

informational collection requirements

are required by this amendment, EPA

has determined that the Paperwork

Reduction Act does not apply to this

rulemaking and no new Information

Collection Request document has been

prepared.

VI. Judicial Review

Because these regulations are

nationally applicable under section

307(b)(1) of the Act, judicial review of

this action is available only by the filing

of a petition for review in the United

States Court of Appeals for the District

of Columbia Circuit within sixty days of

publication of this action in the Federal

Register.

List of Subjects in 40 CFR Part 82

Environmental protection,

Administrative practice and procedure,

Air pollution control, Chemicals,

Chlorofluorocarbons,

Hydrochlorofluorocarbons, Interstate

commerce, Reporting and recordkeeping

requirements, Stratospheric ozone layer.

Dated: March 14, 1995.

Carol M. Browner,

Administrator.

Part 82, chapter I, title 40, of the code

of Federal Regulations, is amended to

read 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, 7601, 7671–

7671q.

2. Section 82.154 is amended by

revising paragraphs (g) and (h) to read

as follows:

§ 82.154 Prohibitions.

* * * * *

(g) Effective May 16, 1995 until March

18, 1996, no person may sell or offer for

sale for use as a refrigerant any class I

or class II substance consisting wholly

or in part of used refrigerant unless:

(1) The class I or class II substance has

been reclaimed as defined at § 82.152(r);

(2) The class I or class II substance

was used only in an MVAC or MVAClike appliance and is to be used only in

an MVAC or MVAC-like appliance; or

(3) The class I or class II substance is

contained in an appliance that is sold or

offered for sale together with the class

I or class II substance.

(h) Effective May 16, 1995 until

March 18, 1996, no person may sell or

offer for sale for use as a refrigerant any

class I or class II substance consisting

wholly or in part of used refrigerant

unless:

(1) The class I or class II substance has

been reclaimed by a person who has

been certified as a reclaimer pursuant to

§ 82.164;

(2) The class I or class II substance

was used only in an MVAC or MVAClike appliance and is to be used only in

an MVAC or MVAC-like appliance; or

(3) The class I or class II substance is

contained in an appliance that is sold or

offered for sale together with the class

I or class II substance.

* * * * *

[FR Doc. 95–6750 Filed 3–16–95; 8:45 am]

BILLING CODE 6560–50–P