Source: https://www.federalregister.gov/documents/2014/03/07/2014-04882/protection-of-stratospheric-ozone-the-2014-and-2015-critical-use-exemption-from-the-phaseout-of
Timestamp: 2016-09-27 02:02:56
Document Index: 393071749

Matched Legal Cases: ['art 82', '§\u200982', 'art 82', 'art 82', '§\u200982', '§\u200982', '§\u200982', '§\u200982', 'art 82', 'art 9', '§\u200982', 'art2', '§\u200982', 'art3', '§\u200982', '§\u200982', 'art4', '§\u200982', '§\u200982', 'art5', '§\u200982', '§\u200982', 'art6']

:: Protection of Stratospheric Ozone: The 2014 and 2015 Critical Use Exemption from the Phaseout of Methyl Bromide
A Proposed Rule by the Environmental Protection Agency on 03/07/2014
Comments must be submitted by April 21, 2014. Any party requesting a public hearing must notify the contact person listed below by 5 p.m. Eastern Standard Time on March 12, 2014. If a hearing is requested it will be held on March 24, 2014. EPA will post information regarding a hearing, if one is requested, on the Ozone Protection Web site www.epa.gov/​ozone/​strathome.html. Persons interested in attending a public hearing should consult with the contact person below regarding the location and time of the hearing.
13006-13017
2014-04882
https://www.federalregister.gov/d/2014-04882
The Environmental Protection Agency (EPA) is proposing uses that Start Printed Page 13007qualify for the critical use exemption (CUE) and the amount of methyl bromide that may be produced or imported for those uses for both the 2014 and 2015 control periods. EPA is proposing this action under the authority of the Clean Air Act to reflect consensus decisions taken by the Parties to the Montreal Protocol on Substances that Deplete the Ozone Layer at the Twenty-Fourth and Twenty-Fifth Meetings of the Parties. EPA is also proposing to amend the regulatory framework to remove provisions related to sale of pre-phaseout inventory for critical uses. EPA is seeking comment on the list of critical uses, on EPA's determination of the specific amounts of methyl bromide that may be produced and imported for those uses, and on the amendments to the regulatory framework.
Instructions: Direct your comments to Docket ID No. EPA-HQ-OAR-2014-0065. EPA's policy is that all comments received will be included in the public docket without change and may be made available online at www.regulations.gov, including any personal information provided, unless the comment includes information claimed to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Do not submit information that you consider to be CBI or otherwise protected through www.regulations.gov or email. The www.regulations.gov Web site is an “anonymous access” system, which means EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send an email comment directly to EPA without going through www.regulations.gov your email address will be automatically captured and included as part of the comment that is placed in the public docket and made available on the Internet. If you submit an electronic comment, EPA recommends that you include your name and other contact information in the body of your comment and with any disk or CD-ROM you submit. If EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, EPA may not be able to consider your comment. Electronic files should avoid the use of special characters, any form of encryption, and be free of any defects or viruses. For additional information about EPA's public docket visit the EPA Docket Center homepage at http://www.epa.gov/​epahome/​dockets.htm.
For further information about this proposed rule, contact Jeremy Arling by telephone at (202) 343-9055, or by email at arling.jeremy@epa.gov or by mail at U.S. Environmental Protection Agency, Stratospheric Protection Division, Stratospheric Program Implementation Branch (6205J), 1200 Pennsylvania Avenue NW., Washington, DC 20460. You may also visit the methyl bromide section of the Ozone Depletion Web site of EPA's Stratospheric Protection Division at www.epa.gov/​ozone/​mbr for further information about the methyl bromide critical use exemption, other Stratospheric Ozone Protection regulations, the science of ozone layer depletion, and related topics.
A. Executive Order 12866: Regulatory Planning and Review and Executive Order 13563: Improving Regulation and Regulatory ReviewStart Printed Page 13008
Methyl bromide was added to the Protocol as an ozone-depleting substance in 1992 through the Copenhagen Amendment to the Protocol. The Parties to the Montreal Protocol (Parties) agreed that each developed country's level of methyl bromide production and consumption in 1991 should be the baseline for establishing a freeze on the level of methyl bromide production and consumption for developed countries. EPA published a final rule in the Federal Register on December 10, 1993 (58 FR 65018), listing methyl bromide as a Class I, Group VI controlled substance. This rule froze U.S. production and consumption at the 1991 baseline level of 25,528,270 kilograms, and set forth the percentage of baseline allowances for methyl bromide granted to companies in each control period (each calendar year) until 2001, when the complete phaseout would occur. This Start Printed Page 13009phaseout date was established in response to a petition filed in 1991 under sections 602(c)(3) and 606(b) of the CAAA of 1990, requesting that EPA list methyl bromide as a Class I substance and phase out its production and consumption. This date was consistent with section 602(d) of the CAAA of 1990, which, for newly listed Class I ozone-depleting substances provides that “no extension [of the phaseout schedule in section 604] under this subsection may extend the date for termination of production of any class I substance to a date more than 7 years after January 1 of the year after the year in which the substance is added to the list of class I substances.”
EPA reviews the data submitted by applicants, as well as data from governmental and academic sources, to establish whether there are technically and economically feasible alternatives available for a particular use of methyl bromide, and whether there would be a significant market disruption if no exemption were available. In addition, an interagency workgroup reviews other parameters of the exemption applications such as dosage and emissions minimization techniques and applicants' research or transition plans. As required in section 604(d)(6) of the CAA, for each exemption period, EPA consults with the United States Department of Agriculture (USDA) and other departments and institutions of the Federal government that have regulatory authority related to methyl bromide. This assessment process culminates in the development of the U.S. critical use nomination (CUN). Annually since 2003, the U.S. Start Printed Page 13010Department of State has submitted a CUN to the United Nations Environment Programme (UNEP) Ozone Secretariat. The Methyl Bromide Technical Options Committee (MBTOC) and the Technology and Economic Assessment Panel (TEAP), which are advisory bodies to Parties to the Montreal Protocol, review each Party's CUN and make recommendations to the Parties on the nominations. The Parties then make Decisions on the authorization of critical use exemptions for particular Parties, including how much methyl bromide may be supplied for the exempted critical uses. EPA then provides an opportunity for public comment on the amounts and specific uses of methyl bromide that the agency is proposing to exempt.
EPA is proposing to modify the table in 40 CFR part 82, subpart A, appendix L to reflect the agreed critical use categories identified in Decision XXIV/5 and Decision XXV/4. EPA is proposing to amend the table of critical uses and critical users based on the authorizations in Decision XXIV/5 and Decision XXV/4 and the technical analyses contained in the 2014 and 2015 U.S. nominations that assess data Start Printed Page 13011submitted by applicants to the CUE program.
For 2014 and 2015, EPA is proposing to determine the level of new production and import according to the framework and as modified by the 2013 Rule. Under this approach, the amount of new production for each control period would equal the total amount authorized by the Parties to the Montreal Protocol in their Decisions minus any reductions for available stocks, carryover, and the uptake of alternatives. These terms (available stocks, carryover, and the uptake of alternatives) are discussed in detail below. As established in the 2013 Rule, EPA would not allocate critical stock allowances. EPA would still determine whether there are any “available stocks” and reduce the new production allocation by that amount. Applying this approach, EPA is proposing to allocate allowances to exempt 442,337 kg of new production and import of methyl bromide for critical uses in 2014 and Start Printed Page 13012376,900 kg of new production and import for 2015.
Production, import, and sales data for 2013 will be reported to EPA in February 2014. Without these data, the agency is unable to calculate how, or whether, a reduction for carryover would affect the 2015 allocation amount. However, EPA anticipates that the carryover will remain 0 kg, as it has been at that level since 2009. Based on information available, EPA believes that the demand for critical use methyl bromide continues to be high and all material produced or imported for a particular control period is sold in that control period. Therefore, while the proposed allocation amount for 2015 assumes 0 kg of carryover in 2013, EPA proposes to use the reported data to calculate the actual carryover amount Start Printed Page 13013for 2013, and subtract that amount (if any) from the authorization for new production and import in the final rule.
The 2013 Rule removed the provisions at § 82.4(p)(ii) and (iii) requiring the use of critical stock allowances for sales of inventory to critical users. In addition, EPA made some necessary conforming changes to 40 CFR Part 82, which follow from removing those restrictions including removing the reference to the restriction on selling inventory pursuant to a CSA from the definition of “critical use methyl bromide.”
The 2013 Rule also stated that EPA believed additional conforming changes may be appropriate but that it would address those changes in a future rulemaking. Today EPA is proposing and taking comment on removing the remaining references to critical stock allowances in 40 CFR Part 82. EPA believes these provisions are no longer necessary if the agency is not allocating separate critical stock allowances. Specifically, EPA is proposing to remove the definitions of “critical stock allowance,” “critical stock allowance holder,” and “unexpended critical stock allowance” from § 82.3. EPA is proposing to no longer allow for the intercompany transfer of critical stock allowances at § 82.12(a) [1] or the exchange of critical use allowances for critical stock allowances at § 82.12(e). EPA is also proposing to remove the reporting and recordkeeping requirements related to critical stock allowances in § 82.13(3) and (4). EPA invites comment on the necessity of these provisions, the appropriateness of removing them from the Code of Federal Regulations, and whether there are other provisions that should be amended in light of the removal of the requirement to use critical stock allowances for sales of inventory to critical users.
In 2013 EPA held discussions with USDA and the Department of State on tools that could potentially address immediate and unforeseen needs for methyl bromide including whether emergency situations may arise that warrant the use of methyl bromide consistent with the treaty, recognizing that emergency uses are not intended as a replacement for CUE uses. In August, EPA held a stakeholder meeting to present, among other things, the findings of those discussions and noted that the three agencies had not yet identified any specific situations that could not be addressed by current mechanisms. The U.S. government is committed to using flexibility in the Protocol's existing mechanisms as an avenue to address changes in national circumstance that affect the transition to alternatives. EPA welcomes comments on specific emergency situations that may necessitate the use of methyl bromide, consistent with the Start Printed Page 13014requirements of the Montreal Protocol, and which could be difficult to address using current tools and authorities.
This action does not impose any new information collection burden. The application, recordkeeping, and reporting requirements have already been established under previous critical use exemption rulemakings. This rule Start Printed Page 13015does propose to remove requirements related to the recordkeeping and reporting of critical stock allowances which would decrease the information collection burden. The Office of Management and Budget (OMB) has previously approved the information collection requirements contained in the existing regulations at 40 CFR part 82 under the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. and has assigned OMB control number 2060-0482. The OMB control numbers for EPA's regulations in 40 CFR are listed in 40 CFR part 9.
CategoryNAICS codeNAICS small business size standard (in number of employees or millions of dollars)Agricultural production1112—Vegetable and Melon farming$0.75 million. 1113—Fruit and Nut Tree Farming 1114—Greenhouse, Nursery, and Floriculture ProductionStorage Uses115114—Postharvest Crop activities (except Cotton Ginning)$7 million. 311211—Flour Milling500 employees. 311212—Rice Milling500 employees. 493110—General Warehousing and Storage$25.5 million. 493130—Farm Product Warehousing and Storage$25.5 million.Distributors and Applicators115112—Soil Preparation, Planting and Cultivating$7 million.Producers and Importers325320—Pesticide and Other Agricultural Chemical Manufacturing500 employees.
This action does not have federalism implications. It will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government, as specified in Start Printed Page 13016Executive Order 13132. This proposed rule is expected to affect producers, suppliers, importers, and exporters and users of methyl bromide. Thus, Executive Order 13132 does not apply to this proposed rule. In the spirit of Executive Order 13132, and consistent with EPA policy to promote communications between EPA and State and local governments, EPA specifically solicits comment on this proposed action from State and local officials.
§ 82.3 [Amended]
Start Amendment Part2. Amend § 82.3 by removing the definitions for “Critical stock allowance (CSA)”, “Critical stock allowance (CSA) holder” and “Unexpended critical stock allowance (CSA)”.End Amendment Part
Start Amendment Part3. Amend § 82.8 by revising the table in paragraph (c)(1) to read as follows:End Amendment Part
§ 82.8 Grant of essential use allowances and critical use allowances.
Company2014 Critical use allowances for pre-plant uses * (kilograms)2014 Critical use allowances for post-harvest uses * (kilograms)2015 Critical use allowances for pre-plant uses * (kilograms)2015 Critical use allowances for post-harvest uses * (kilograms)Great Lakes Chemical Corp. A Chemtura Company252,23616,572227,0731,969Albemarle Corp103,7256,81593,378810ICL-IP America57,3213,76651,602447TriCal, Inc1,7851171,60714Total415,06727,270373,6603,240* For production or import of Class I, Group VI controlled substance exclusively for the Pre-Plant or Post-Harvest uses specified in appendix L to this subpart for the appropriate control period.
Start Printed Page 13017
Start Amendment Part4. Amend § 82.12 by revising paragraph (a) and removing paragraph (e) to read as follows:End Amendment Part
§ 82.12 Transfers of allowances for class I controlled substances.
Start Amendment Part5. Amend § 82.13 by:End Amendment Part
Start Amendment Parta. Revising paragraphs (f)(3)(iv) and (g)(4)(vii); andEnd Amendment Part
Start Amendment Partb. Removing and reserving paragraphs (bb)(2)(iv) and (cc)(2)(iv)End Amendment Part
§ 82.13 Recordkeeping and reporting requirements for class I controlled substances.
Start Amendment Part6. Amend Subpart A by revising Appendix L to read as follows:End Amendment Part
Column AColumn BColumn CApproved critical usesApproved critical user, location of use, and control periodLimiting critical conditions that exist, or that the approved critical user reasonably expects could arise without methyl bromide fumigation:PRE-PLANT USESStrawberry FruitCalifornia growers. Control periods 2014 and 2015Moderate to severe black root rot or crown rot. Moderate to severe yellow or purple nutsedge infestation. Moderate to severe nematode infestation. Local township limits prohibiting 1,3-dichloropropene.POST-HARVEST USESFood Processing(a) Rice millers in the U.S. who are members of the USA Rice Millers Association. Control period 2014Moderate to severe beetle, weevil, or moth infestation. Presence of sensitive electronic equipment subject to corrosion. (b) Pet food manufacturing facilities in the U.S. who are members of the Pet Food Institute. Control period 2014Moderate to severe beetle, moth, or cockroach infestation. Presence of sensitive electronic equipment subject to corrosion. (c) Members of the North American Millers' Association in the U.S. Control period 2014Moderate to severe beetle infestation. Presence of sensitive electronic equipment subject to corrosion.CommoditiesCalifornia entities storing walnuts, dried plums, figs, raisins, and dates (in Riverside county only) in California. Control period 2014Rapid fumigation required to meet a critical market window, such as during the holiday season.Dry Cured Pork ProductsMembers of the National Country Ham Association and the Association of Meat Processors, Nahunta Pork Center (North Carolina), and Gwaltney and Smithfield Inc. Control periods 2014 and 2015Red legged ham beetle infestation. Cheese/ham skipper infestation. Dermested beetle infestation. Ham mite infestation.
This provision allows any critical stock allowance holder (“transferror”) to transfer critical stock allowances to any critical stock allowance holder or any methyl bromide producer, importer, distributor, or third party applicator (“transferee”).