Source: https://www.federalregister.gov/documents/2004/06/17/04-13680/protection-of-stratospheric-ozone-allowance-system-for-controlling-hcfc-production-import-and-export
Timestamp: 2018-07-18 11:22:21
Document Index: 469862379

Matched Legal Cases: ['§\u200982', '§\u200982', 'art 82', '§\u200982', 'art 82', '§\u200982', '§\u200982', '§\u200982', 'art 82', 'art 9', '§\u200982', 'art.\n3']

This direct rule is effective on August 16, 2004 without further notice, unless EPA receives adverse comment by July 19, 2004. If we receive adverse comment, we will publish a timely withdrawal in the Federal Register informing the public that this rule will not take effect.
34023-34033 (11 pages)
Annex 4 to Appendix C of Subpart A: Nations That Are Parties to the Montreal Protocol and Are Operating Under Article 5(1)
List of Article 5 Parties
List of Parties Classified as Operating Under Article 5 of the Montreal Protocol
List of Parties Temporarily Classified as Operating Under Article 5 of the Montreal Protocol
https://www.federalregister.gov/d/04-13680 https://www.federalregister.gov/d/04-13680
EPA is taking direct final action to conform its regulations governing the trade of certain ozone depleting substances with the Montreal Protocol and to correct a drafting error. We are approving these minor adjustments to domestic regulations to ensure that those complying with the U.S. regulations are also complying with the terms of the Montreal Protocol.
Instructions: Direct your comments to EDocket ID No. OAR-2003-0130. The historical docket for this rulemaking is A-98-33. EPA's policy is that all comments received will be included in the public docket without change and may be made available online at http://www.epa.gov/​edocket, 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 EDOCKET, regulations.gov, or e-mail. The EPA EDOCKET and the Federal regulations.gov Web sites are “anonymous access” systems, which means EPA will not know your identity or contact information unless you provide it in the body of your comment.
EPA is publishing this amendment without prior proposal because we view this as a noncontroversial action and anticipates no adverse comment. However, in the “Proposed Rules” section of today's Federal Register, we are publishing a separate document that will serve as the proposal to revise the trade restrictions provisions if adverse comments are filed. This direct final rule will be effective on August 16, 2004 without further notice unless we receive adverse comment by July 19, 2004. If EPA receives adverse comment, we will publish a timely withdrawal in the Federal Register informing the public that the rule will not take effect. We would consider and address all public comments in any subsequent final rule based on the proposed rule. We will not institute a second comment period on this action. Any parties interested in commenting must do so at this time.
FR—Federal Register Start Printed Page 34025
In the Copenhagen Amendments, the Parties created a schedule with graduated reductions and the eventual phaseout of the consumption of HCFCs. The schedule calls for a 35 percent reduction of the cap in 2004, followed by a 65 percent reduction in 2010, a 90 percent reduction in 2015, a 99.5 percent reduction in 2020, and a total phaseout in 2030. As a Party to the Copenhagen Amendment (the U.S. deposited its instrument of ratification Start Printed Page 34026on March 2, 1994), the U.S. must comply with this phaseout schedule under the Protocol.
In 1999, the Parties negotiated another amendment to the Protocol (the “Beijing Amendment”), where they agreed to a cap on HCFC production for industrialized countries, effective January 1, 2004. This cap was derived from the average of the Party's consumption cap (2.8 percent of the Party's CFC consumption in 1989, plus the Party's HCFC consumption 1989) and the result of the same formula for production (2.8 percent of the Party's CFC production in 1989, plus the Party's HCFC production in 1989). This formula results in a U.S. production cap of 15,537 ODP-weighted metric tonnes. Since the U.S. subsequently joined the Beijing Amendment (the U.S. deposited its instrument of ratification on October 1, 2003) EPA promulgated regulations that are consistent with that production cap as authorized by section 606 of the CAA.
In addition, Parties to the Beijing Amendment agree that under the Beijing amendment, beginning in January 1, 2004, they will ban HCFC imports from and exports to “any State not party to this Protocol.” These amendments are reflected in Article 4 of the Protocol in paragraphs 1 quin. and 2 quin. As a Party to the Beijing Amendment, the U.S. therefore, has an obligation from January 1, 2004, to ban trade in HCFCs with respect to “any State not party to this Protocol.” The Protocol defines this phrase (Article 4(9)) to include any state or regional economic integration organization (of which the European Community is the only present example) that has not agreed to be bound by the control measures in effect for HCFCs.
To implement the Protocol, as amended by the Copenhagen and Beijing Amendments, EPA established an allowance system to control the U.S. consumption of HCFCs and published the implementing regulations in the Federal Register on January 21, 2003 (68 FR 2820). The HCFC allowance system is part of EPA's program to reduce the emissions of ODSs to protect the stratospheric ozone layer. These regulations also included a provision, § 82.15(e), to implement the ban on trade with states not a Party to the Protocol. EPA interpreted Article 4 of the Protocol to ban imports from and exports to countries that had not ratified the amendments to the Protocol containing control measure for HCFCs relevant to that country (e.g. for countries that produce HCFCs they needed to be a Party to Beijing, but for countries that only consume, but do not produce HCFCs, they needed to be a Party to Copenhagen).
The Parties to the Montreal Protocol met November 10-14, 2003 in Nairobi, Kenya where they discussed and agreed to Decision XV/3. The Decision was necessary because different Parties to the Beijing Amendment, including the U.S., were adopting differing and conflicting interpretations of the term “State not a party to the Protocol” domestically in ways that would have created great uncertainty and confusion within the regulated community with respect to which States trade was allowed under Article 4. As a Party to the Protocol, including both the Copenhagen and Beijing amendments, the United States was represented at that meeting, participated in the discussions, and agreed with the resulting Decision XV/3. Upon review of the current domestic regulations in relation to Decision XV/3, EPA identified discrepancies between the Decision and EPA's regulations. Therefore, Decision XV/3 led to this action aimed at promulgating minor adjustments to the regulations issued January 21, 2003 (68 FR 2820) to ensure that those complying with the U.S. regulations are also complying with the terms of the Montreal Protocol. What follows is a review of Decision XV/3 and a discussion of what changes are being made to the current regulations through this action.
(a) The term “State not party to this Protocol” in Article 4, paragraph 9 does Start Printed Page 34027not apply to those States operating under Article 5, paragraph 1, of the Protocol until January 1, 2016 when, in accordance with the Copenhagen and Beijing Amendments, hydrochlorofluorocarbon production and consumption control measures will be in effect for States that operate under Article 5, paragraph 1, of the Protocol;
This action today modifies the current regulations to eliminate the inconsistencies with Decision XV/3. In addition, as set forth below, this action corrects drafting errors discovered after the Final Rule was published in the Federal Register in January 21, 2003. As a result, the revised regulations will permit trades consistent with the requirements decided by the Parties and in accordance with the terms of Decision XV/3.
Section 82.15(e)(2) permits trade with non-producing countries that have ratified the Copenhagen Amendments. However, Decision XV/3 is more restrictive than the current EPA promulgated regulations. According to Decision XV/3 starting on January 1, 2004, notwithstanding the ability to trade with States operating under Article 5(1) of the Protocol, U.S. companies cannot trade HCFCs with any State not operating under Article 5(1) of the Protocol that has not agreed to be bound by (ratified) the Copenhagen and Beijing Amendments, unless that State has fulfilled the requirements under paragraphs 1(c)(i) through (iii) of Decision XV/3 and submitted the information to the Ozone Secretariat by March 31, 2004. In accordance with this Decision, it would be a violation of the Protocol to trade HCFCs with a non-Article 5(1) Party that has not ratified both the Copenhagen and Beijing Amendments, unless the State has provided the relevant information listed in paragraphs (c)(i) through (iii) of Decision XV/3 to the Start Printed Page 34028Ozone Secretariat by March 31, 2004. Therefore, as a Party to the Protocol and a participant in the discussions that resulted in Decision XV/3, EPA believes it is necessary to amend the regulations to be consistent with the Decision.
EPA recognizes that the process to ratify amendments to the Protocol can be lengthy and cumbersome. Further, often countries make their intention to ratify amendments and begin to comply with the terms of the amendments in advance of actual ratification. The criteria established by Decision XV/3 (c)(i) through (iii) provide an appropriate mechanism for the Ozone Secretariat and EPA to ensure compliance with the terms of the amendments in advance of ratification of the amendments by those States.
Through this action, EPA is amending § 82.15(e) to permit trade with non-Article 5(1) Parties that have not ratified both the Copenhagen and Beijing Amendments, if the States have provided the relevant information listed in paragraphs (c)(i) through (iii) of Decision XV/3 to the Ozone Secretariat by March 31, 2004.
As a result of these changes to subpart A to incorporate Decision XV/3, EPA is also eliminating Appendix L to Subpart A. The Ozone Secretariat's list and Annex 3 to Appendix C of this subpart provides the reader with sufficient guidance to ensure that Parties have submitted data in accordance with Decision XV/3(c); therefore, Appendix L to Part 82, Subpart A—Parties to the Montreal Protocol that Have Reported Production of HCFCs Since 1996 in Accordance With Article 7, paragraph 3 of the Montreal Protocol is no longer needed. Eliminating Appendix L will limit the potential for misinterpretation. Thus, through today's action, EPA is removing Appendix L from subpart A.
Parties to the Montreal Protocol that are operating under Article 5(1) have been given a different schedule for phasing out their production and consumption of ozone-depleting substances, than those that are not listed under Article 5(1). EPA would like to clarify that in accordance with the Protocol, Parties to the Protocol that operate under Article 5(1) may continue to trade in HCFCs with other Parties as long as they continue to meet the appropriate obligations under the Protocol and its amendments, until the date for phasing out HCFC consumption and production by Article 5(1) countries has been reached. Under Article 5(1) of the Protocol no control measures for the consumption or production of HCFCs will be in effect under either the Copenhagen or Beijing Amendments until 2016. Therefore, through this action, EPA is amending § 82.15(e) appropriately.
EPA is also adding to Appendix C of this subpart Annex 4: Nations that are Parties to the Montreal Protocol and are operating under Article 5(1) as of June 17, 2004. Annex 4 is a list of nations that are operating under Article 5(1) of the Montreal Protocol. Including this annex in the subpart will assist regulated entities complying with the regulations by providing a list of nations operating under Article 5(1) in the regulatory text. While this information will be valuable, the Agency notes that the list is dated June 17, 2004. Additional nations may agree to the terms of the Montreal Protocol, become a Party to the treaty, and qualify to operate under these provisions after this list appears in the Federal Register, and thus will not be included in Annex 4. Therefore, while including Annex 4 in this subpart is useful and will benefit the regulated entities, Annex 4 to Appendix C of subpart A is not intended to be the sole and complete catalogue of Article (5)(1) nations.
Through this action, EPA is adding Annex 4: Nations that are Parties to the Montreal Protocol and are operating under Article 5(1) as of June 17, 2004 to Appendix C of subpart A.
Appendix C of 40 CFR part 82, subpart A provides information on ratification, accession, acceptance, and approval of the Montreal Protocol, London amendment, Copenhagen Amendment, Montreal Amendment and the Beijing Amendment. Section 82.15(e) was intended to cite this Appendix. However, the language at § 82.15(e) contains drafting errors and refers instead to Appendix C of the Montreal Protocol. There is no Appendix C to the Montreal Protocol. In the absence of an Appendix C to the Protocol, EPA interprets § 82.15(e) to refer to Appendix C of subpart A. While the Agency has made this interpretation known through letters to regulated entities, a change to the regulations is necessary to ensure that all interested parties are able to correctly interpret the regulations. Therefore, through today's action, EPA will amend § 82.15(e) to Start Printed Page 34029ensure that all references are to Appendix C of subpart A of 40 CFR part 82.
With the promulgation of this action, Appendix C of subpart A will have four separate sections (annexes). Currently, the CFR includes the 2 sections: Appendix C to Subpart A:—Parties to the Montreal Protocol (As of June 14, 2002) and Annex 2: Annex 2 to Subpart A—Nations Complying with, But Not Parties to, the Protocol. This action is adding the following sections: Annex 3: Nations that are Parties to the Montreal Protocol that have not yet ratified all applicable Amendments to the Protocol but have Notified the Ozone Secretariat and Properly Submitted Supporting Documentation in Accordance with the Requirements of Decision XV/3 and Annex 4: Nations that are Parties to the Montreal Protocol and are operating under Article 5(1) as of June 17, 2004. To further clarify that Appendix C has four distinct sections, through this action, EPA is amending the titles of each section to include “Appendix C” in each and to label the sections as “Annex 1,” “Annex 2,” and “Annex 3” respectively. Thus the revised titles will be:
—Appendix C to Subpart A, Annex 4—Nations that are Parties to the Montreal Protocol and are operating under Article 5(1) as of June 17, 2004.
It has been determined that this rule is not a “significant regulatory action” within the meaning of the Executive Order.
The Office of Management and Budget (OMB) previously approved the information collection requirements that can be used to implement today's direct final rule. The previously approved ICR is assigned OMB control number 2060-0170 (EPA ICR No. 1432.21). A copy of the OMB approved Information Collection Request (ICR) may be obtained from The Collection Strategies Division; U.S. Environmental Protection Agency (2822T); 1200 Pennsylvania Ave., NW., Washington, DC 20460 or by calling (202) 566-1672.
Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, or disclose or provide information to or for a Federal agency. This includes the time needed to review instructions; develop, acquire, install, and utilize technology and systems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with any previously applicable instructions and requirements; train personnel to be able to respond to a collection of information; search data sources; complete and review the collection of information; and transmit or otherwise disclose the information. An agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a currently valid OMB control number. The OMBcontrol numbers for EPA's regulations in 40 CFR are listed in 40 CFR part 9.
EPA has determined that it is not necessary to prepare a regulatory flexibility analysis in connection with this direct final rule. EPA has also determined that this rule will not have a significant economic impact on a substantial number of small entities. For purposes of assessing the impact of today's rule on small entities, small entities are defined as: (1) A small business that is identified by the North American Industry Classification System (NAICS) Code in the Table below; (2) a small governmental jurisdiction that is a government of a city, county, town, school district or special district with a population of less than 50,000; and (3) a small organization that is any not-for-profit enterprise which is independently owned and operated and is not dominant in its field.
EPA has determined that this rule does not contain a Federal mandate that may result in expenditures of $100 million or more by State, local and tribal governments, in the aggregate, or by the private sector, in any one year. The provisions in today's rule fulfill the obligations of the United States under the international treaty, The Montreal Protocol on Substances that Deplete the Ozone Layer, as well as those requirements set forth by Congress in the Clean Air Act. Viewed as a whole, all of today's amendments do not create a Federal mandate resulting in costs of $100 million or more in any one year for State, local and tribal governments, in the aggregate, or for the private sector. Thus, today's rule is not subject to the requirements of sections 202 and 205 of the UMRA. EPA has also determined that this rule contains no regulatory requirements that might significantly or uniquely affect small governments; therefore, EPA is not required to develop a plan with regard to small governments under section 203. Finally, because this rule does not contain a significant intergovernmental mandate, the Agency is not required to develop a process to obtain input from elected State, local, and tribal officials under section 204.
This rule 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 Executive Order 13132. Today's rule is expected to primarily affect importers and exporters of HCFCs. Thus, the requirements of section 6 of the Executive Order do not apply to this rule.
EPA interprets Executive Order 13045 as applying only to those regulatory actions that are based on health or safety risks, such that the analysis required under section 5-501 of the Order has the potential to influence the regulation. This is not such a rule, and therefore Executive Order 13045 does not apply. This rule is not subject to Executive Order 13045 because it implements specific trade measures adopted under the Montreal Protocol and required by section 614 of the CAA.
This rule is not a “significant energy action” as defined in Executive Order 13211, “Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use” (66 FR 28355 (May 22, 2001)) because it is not a significant regulatory action under Executive Order 12866. Start Printed Page 34031
The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the Small Business Regulatory Enforcement Fairness Act of 1996, generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. EPA will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to publication of the rule in the Federal Register. A major rule cannot take effect until 60 days after it is published in the Federal Register. This action is not a “major rule” as defined by 5 U.S.C. 804(2). This rule will be effective August 16, 2004.
2. Revise § 82.15 (e) to read as follows:
(e) Trade with Parties. No person may import or export any quantity of a class II controlled substance listed in Appendix A to this subpart, from or to any foreign state that is not either:
(1) A Party to the Montreal Protocol that has ratified the Beijing Amendments. Parties that have ratified the Beijing Amendments as of June 17, 2004 are listed in Annex 1 to Appendix C of this subpart. Or,
(2) A Party to the Montreal Protocol that has provided notice, certification, and data in accordance with Decision XV/3(c)(i), (ii), and (iii) respectively, to the Ozone Secretariat. A list of Parties that have provided notice, certification and data in accordance with Decision XV/3(c)(i), (ii), and (iii) respectively, by June 17, 2004 can be found in Annex 3 to Appendix C of this subpart and on a list maintained by the Ozone Secretariat. Or,
(3) A Party to the Montreal Protocol operating under Article 5(1) to the Montreal Protocol. A list of Parties operating under Article 5(1) to the Montreal Protocol as of June 17, 2004 can be found in Annex 4 to Appendix C of this subpart.
3. Appendix C to subpart A is amended by adding Annexes 3 and 4 as follows:
Annex 3 to Appendix C of Subpart A: Nations that are Parties to the Montreal Protocol that have not yet Ratified all applicable Amendments to the Protocol but have Notified the Ozone Secretariat and Properly Submitted Supporting Documentation in Accordance with the Requirements of Decision XV/3.
Party to the Copenhagen amendment
Party to the Beijing Amendment
Parties that have submitted data in accordance with Dec. XV/3, para 1 (c)(iii)
1(c)(ii), Article 2, 2A-2G
1(c)(ii), Article 4
Australia Yes No Yes Yes Yes
European Community Yes Yes
Greece Yes No Yes Yes Yes
Italy Yes No Yes Yes Yes
Kazakhstan No No Yes Yes Yes
Start Printed Page 34032
Poland Yes No Yes Yes Yes
Russian Federation No No
29. Congo, Democratic Republic of
42. Federated States of Micronesia
56. Iran, Islamic Republic of
61. Korea, Democratic People's Republic of
65. Lao People's Democratic Republic
69. Libyan Arab Jamahiriya
102. Saint Kitts and Nevis
103. Saint Lucia
104. Saint Vincent and the Grenadines
108. Serbia and Montenegro
117. SurinameStart Printed Page 34033
120. Tanzania, United Republic of
122. The Former Yugoslav Republic of Macedonia
128. Tuvalu
134. Viet Nam
4. Appendix L to Subpart A is removed.
[FR Doc. 04-13680 Filed 6-16-04; 8:45 am]