allowances over the five year period. As under the five year linear
drawdown (Option 1), EPA is proposing to use the lowest proposed
allocation in 2014 as a starting point. The 2015 allocation would
therefore be approximately 12,400 MT, with an annual decrease of about
4,100 MT such that 2017 would be the final year of HCFC-22 consumption
allowances (Option 2 in Table 1). In total, Option 2 would result in
approximately 24,800 MT of allowances, which is 16,200 MT fewer than
under EPA's preferred five year linear drawdown approach. EPA is also
proposing a variant to this three year linear drawdown under which the
agency would start from the pre-recoupment 2014 allocation of 20,100
MT. EPA seeks comment on its alternative proposal to base the
allocation on a three year linear drawdown instead of five years, and
on whether, in this case, the 2015 allocation should be determined from
the lowest proposed amount in 2014 or the actual 2014 allocation prior
to the addition of recoupment allowances. Regardless of which variant
of the three year linear drawdown is chosen, it would provide the
largest environmental benefit of the options presented in this rule,
since it results in the fewest allowances overall.
    In summary, EPA believes a linear drawdown helps ensure a smooth,
simpler transition out of HCFC-22. This method of decreasing allowances
does not rely directly on EPA's estimate of HCFC-22 servicing needs or
changes in demand for refrigerant, though the 2013 Servicing Tail
Report does confirm that a linear drawdown of allowances would still
enable projected servicing need to be met under plausible recovery and
reuse scenarios and changes in servicing practices. As a result, the
agency believes making simple and consistent reductions in allowances
each year could provide the certainty the market needs to transition
smoothly from HCFC-22 to non-ODS alternatives.
    The agency welcomes comment on the benefits or drawbacks to a
linear allocation schedule, as well as comments on both linear drawdown
options (Options 1 and 2 in Table 1) and the proposed variants of
Option 1 and Option 2, which are discussed in this section but not
shown in Table 1.
2. Determining the Allocation by Estimating Servicing Need and Then
Accounting for Need That Can Be Met by Sources Other Than New
Production
    While not its preferred approach, EPA is also proposing to take the
modeled servicing need for 2015-2019 as estimated in the 2013 Servicing
Tail Report, subtract the amount of expected recovery and reuse, and
then issue consumption allowances to account for the remaining HCFC-22
need. This is the estimation approach, shown as Option 3 in Table 1. In
the 2009 Final Rule covering 2010-2014, comments on the 2009 Servicing
Tail Report prompted EPA to account for 12,500 MT of recovery and reuse
in each year. That is, the allowances issued each year were 12,500 MT
lower than the modeled servicing need for HCFC-22. This same
methodology was used in the 2013 Final Rule covering 2012-2014, except
the 2013 Final Rule also accounted for existing inventory, which could
be used to meet servicing need as well. When EPA addressed existing
inventory in the 2013 Final Rule, it did not necessarily intend to
address inventory in subsequent rules or make it part of the ongoing
allocation methodology. However, recent data received by EPA indicates
there still is a significant inventory of HCFC-22. The proposal to
account for existing inventory when setting the final HCFC-22
allocation under this option is discussed in section V.A.3.
    In 2015, the amount of projected servicing need, minus the amount
of expected recovery \18\ and reuse, is actually higher than the 2014
allocation of 23,100 MT. The agency does not see any reason to increase
the allocation from 2014 to 2015 because allowing the allocation to
increase from 2014 to 2015 could reduce incentives for recovery and
transition. In addition, EPA has received feedback from stakeholders
that the final allocations for 2013 and 2014 were higher than the
market was expecting. Thus, under this approach, the agency is
proposing to issue the same amount of allowances in 2015 as in 2014,
instead of allowing the allocation to increase in 2015. EPA would then
apply the methodology presented earlier in this section to years 2016
through 2019. EPA is proposing to use the currently modeled average
recovery and reuse rate of approximately 50 percent. The resulting
allocation schedule would start at 23,100 MT in 2015 and end at 6,200
MT in 2019 before going to zero in 2020, shown as Option 3 in Table 1
of this section. EPA welcomes comment on using the estimation approach
to allocate allowances, in addition to comments on model parameters,
such as the recovery rates used in the model for each end use and the
installed equipment base (see 2013 Servicing Tail Report and
appendices). The agency is especially interested in comment on modeled
equipment characteristics, like

expected lifetime, charge size and leak rate, since assumptions about
equipment characteristics affect the projected servicing needs for each
end use.
---------------------------------------------------------------------------

    \18\ The expected recovery rate is approximately 50 percent
industry-wide and is listed as the baseline recovery rate in the
2013 Servicing Tail Report available in the docket.

                                        Table 1--Proposed Options for HCFC-22 Consumption Allocation in 2015-2019
                                                                      [Metric tons]
--------------------------------------------------------------------------------------------------------------------------------------------------------
    HCFC-22 Proposed consumption  allocation options           2015            2016            2017            2018            2019            2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
Option 1: Linear drawdown over 5 years..................          13,700          10,900           8,200           5,500           2,700               0
Option 2: Linear drawdown over 3 years..................          12,400           8,300           4,100               0               0               0
Option 3: Estimation Approach...........................          23,100          20,900          15,100          11,500           6,200               0
--------------------------------------------------------------------------------------------------------------------------------------------------------

3. Accounting for Existing HCFC-22 Inventory
    As stated earlier in this section, EPA did not commit itself to
account for existing HCFC-22 inventory when setting the allocations for
2015-2019; however, EPA is proposing to account for existing inventory
for two primary reasons. The first is that EPA has heard from
stakeholders that industry-wide inventory is still very large. In
addition, many feel that the final 2013 and 2014 allocations were
higher than the market needs, and will therefore lead to a buildup of
additional HCFC-22 stocks going in to 2015. The second reason EPA is
proposing to account for existing inventory is based on the agency's
fall 2011 market analysis supporting its proposal to reduce allowances,
as compared to the 2009 Final Rule (see Adjustment Memo, included in
the docket to this rulemaking). That analysis assumed there was a
surplus inventory between 22,700 and 45,400 MT at the beginning of
2012. Given expectations about the transition away from HCFCs, as well
as the 2015 and 2020 HCFC phaseout milestones, EPA estimated that the
complete drawdown could take somewhere between four to eight years.
Based on its estimates of existing inventory, EPA proposed and
finalized a 6,000 MT reduction in allowances for 2012-2014. Given that
a 6,000 MT reduction over 2012-2014 is only 18,000 MT total, the agency
believes there still is ample existing supply of HCFC-22. Recent data
from stakeholders confirms that the inventory level is above the high
end or above EPA's previous estimate. As such, EPA is proposing to
account for up to 10,000 MT of inventory each year in 2015-2019 under
the estimation approach. EPA is also proposing to make larger annual
reductions in the earlier years and smaller annual reductions in the
later years under this approach. Such a tapered approach to accounting
for existing inventory would be consistent with the recent feedback and
comments that EPA has received. Many stakeholders have noted that
sending strong market signals early in the control period is
fundamental to preparing the market for the complete phaseout of virgin
HCFC-22 production and import by 2020.
    For this modified estimation approach, as well as the linear
drawdown approaches, the agency will consider inventory data in
choosing its final allocation methodology and welcomes comment on its
approach.

B. How will EPA determine the HCFC-22 production allocation?

    Since the start of the HCFC phaseout program in 2003, the agency
has determined the HCFC-22 production allocation in one of two ways.
Under either method, EPA first determines the aggregate consumption
allocation needed and assigns the consumption baseline percentage
accordingly. The process for assigning consumption baseline percentages
works as follows: First, all the company-specific baselines listed in
the tables at 40 CFR 82.19 are added to determine the aggregate
consumption baseline. Second, EPA determines how many consumption
allowances to allocate for a given year and divides that amount by the
aggregate baseline. The resulting percentage listed in the table at
section 82.16 becomes what each company is allowed to consume in a
given control period. For example, a company with 100,000 kg of HCFC-22
consumption baseline allowances would multiply that number by the
percentage allowed in a given year (for example, 25 percent) to
determine its calendar-year consumption allowance is 25,000 kg.
    In the 2003 Final Rule covering 2003-2009, and again in the 2009
Final Rule covering 2010-2014, EPA allocated the same percentage of
baseline allowances for production as it did for consumption. A company
with a production baseline at 40 CFR 82.17 would simply multiply its
baseline by the percentage listed at 82.16 to determine its calendar-
year production allocation. However, in the 2013 Final Rule covering
2012-2014, EPA provided a larger percentage of baseline and more HCFC-
22 production allowances than it did for consumption. That is, section
82.16 was amended to include two tables, one listing the baseline
percentage for consumption and the other listing the percentage for
production. As discussed in the 2013 Final Rule, the reason for this
change was to allow United States manufacturers to produce at the same
level as under the 2009 Final Rule and continue to compete globally,
and to potentially reduce the need for less efficient production abroad
(see 78 FR 20020).
    For the 2015-2019 regulatory period, EPA is considering two options
for the HCFC-22 production allocation: (1) Issue production allowances
at the highest allowable level under the Montreal Protocol to continue
to allow United States producers to compete globally much like it did
in the 2013 Final Rule covering 2012-2014, which is the agency's
preferred approach or (2) provide approximately the same number of
production allowances as consumption allowances.
1. Allocate the Maximum Production Allocation Allowed Under the Cap
    In the 2013 Final Rule, EPA determined that it has the authority to
issue calendar-year consumption and production allowances using
different percentages of baseline, as long as the agency complies with
the overall schedule set by the Montreal Protocol and Congress, as
accelerated under section 606. Therefore, the agency has the ability to
set baseline percentages such that the aggregate production allocation
is larger than the consumption allocation. See the 2013 Final Rule (78
FR 20018) for a discussion of EPA's ability to decouple production and
consumption baselines.
    As stated in the 2013 Final Rule, EPA believes that allocating more
production allowances than consumption allowances cannot lead to an
increase in United States consumption, would not

result in a global increase in production or consumption of HCFC-22,
but could result in more United States production for export relative
to the scenario in which production allowances are at approximately the
same level as consumption allowances. This may have economic benefits
for the United States and potentially environmental benefits to the
extent that production might otherwise occur in plants that lack HFC-23
byproduct destruction technologies. EPA's preferred approach is to
allocate more production allowances than consumption allowances, up to
the maximum allowed under the Montreal Protocol cap.
    Allocating more production allowances than consumption allowances
would not provide United States producers the opportunity to produce
more HCFCs for domestic consumption than the amount allowed by the
consumption allocation. Production of one kilogram of an HCFC still
requires both a production allowance and a consumption allowance
(82.15(a)(1), (2)). Allocating more production than consumption would
provide United States producers the opportunity to continue production
for export subject to existing regulatory constraints. A company must
submit documentation to verify the export of an HCFC for which
consumption allowances were expended in order to request a
reimbursement of spent consumption allowances. The agency reviews the
documentation and issues a notice to either deny or grant the request.
Therefore, a company would not be able to produce more HCFC-22 unless
it had exported an equal amount of material and been granted a refund
of spent consumption allowances.
    As mentioned previously, EPA also believes that allocating more
production allowances than consumption allowances could have
environmental benefits if United States production displaces production
at facilities that do not control byproduct emissions of
hydrofluorocarbon (HFC)-23, which has a global warming potential of
14,800.\19\ In the 2013 Final Rule, EPA responded to comments that
cited the growth of HFC-23 emissions globally and indicated that
facilities in Article 5 countries do not control HFC-23 emissions to
the same degree as companies operating in the United States. EPA has
worked with industry through its HFC-23 Emission Reduction Partnership
to encourage companies to reduce HFC-23 byproduct emissions from the
manufacture of HCFC-22. Production of HCFC-22 in the United States may
provide environmental benefits in reduced HFC-23 emissions to the
extent United States production supplants the Article 5 production in
those specific plants that do not have HFC-23 byproduct destruction
technologies installed. For further discussion of HFC-23 byproduct
emissions in Article 5 countries, see the 2013 Final Rule at 78 FR
20021.
---------------------------------------------------------------------------

    \19\ GWP of HFC-23 presented in the Intergovernmental Panel on
Climate Change (IPCC) Fourth Assessment Report: Climate Change 2007
(AR4).
---------------------------------------------------------------------------

    EPA also determined in the 2013 Final Rule that allowing United
States production to remain at the levels finalized in the 2009 Final
Rule would not result in increased global consumption. Providing more
production than consumption allowances could allow companies to
continue exporting to non-Article 5 countries, which have the same
overall Montreal Protocol phaseout schedule as the United States but
may not use the United States' chemical-by-chemical approach to phasing
out HCFCs. Also, consumption of HCFCs in Article 5 countries was capped
starting in 2013, which further limits global HCFC-22 demand (see
Montreal Protocol Art. 5, para. 8 ter.). And finally, at least one
company holding production allowances does not produce HCFC-22 in the
United States, so it is unlikely that every production allowance issued
will be used. EPA is concerned that the alternative approach--issuing
production allowances at the same level as consumption, instead of at
the maximum level allowed under the cap--could deprive United States
manufacturers of existing global business.
    Therefore, EPA is proposing to issue the maximum number of HCFC-22
production allowances allowed under the Montreal Protocol cap, after
accounting for production allocations of any other HCFCs. Starting in
2015, the United States production cap under the Montreal Protocol is
1,553.7 ODP-weighted MT; when converted entirely to HCFC-22, the
production cap is 28,249 MT of HCFC-22. To put the 2015 cap in
perspective, EPA issued 41,200 MT of HCFC-22 production allowances in
2013 and 36,000 MT in 2014. Allocating the maximum allowed under the
cap would still be a significant decrease from 2013 and 2014 production
allocations. EPA is proposing to take the cap of 1,553.7 ODP-weighted
MT, subtract the final production allocation for any other HCFCs, and
then issue the remaining amount for HCFC-22 production. Under the
agency's preferred options for all other production allocations, the
resulting HCFC-22 allocation in 2015-2019 would be approximately 28,000
MT, or 21.7% percent of baseline. EPA welcomes comment on this
approach.
2. Allocate Approximately the Same Number of Production Allowances as
Consumption Allowances
    A second option for determining the HCFC-22 production allocation
is to issue approximately the same number of production allowances as
consumption allowances. Under this approach, the production allocation
would be significantly lower than in 2013 and 2014. The highest
proposed consumption allocation in this rulemaking is 23,100 MT in
2015, which is close to half as much as the 2013 production allocation
and about two-thirds as much as the 2014 production allocation. This
approach could result in less United States production for export, with
economic disadvantages for the United States and potentially
environmental disbenefits to the extent that more production might
occur in plants that lack HFC-23 byproduct destruction technologies.
    Under this approach, EPA would determine the desired aggregate
consumption allocation in each year and set the percentage of
consumption baseline accordingly. The percentage of production baseline
issued would be whatever percentage results in an aggregate production
allocation that is approximately equal to the aggregate consumption
allocation. EPA welcomes comment on the merits of this option.

C. How will EPA determine the HCFC-142b allocation?

    In the 2009 Final Rule for 2010-2014, EPA allocated 100 MT of HCFC-
142b consumption allowances for each of those years (74 FR 66412). When
EPA re-established HCFC-22 and HCFC-142b baselines in the 2011 Interim
Final Rule and 2013 Final Rule, the HCFC-142b consumption allocation
remained at 100 MT. However, since the HCFC-142b production baseline
was significantly higher than the consumption baseline, and the same
percentage of baseline was used for both consumption and production,
the production allocation became 463 MT (not including recoupment) in
2011-2014.
    As discussed briefly in the 2013 Servicing Tail Report, the
Vintaging Model does not model demand for HCFC-142b uses after 2014.
However, several HCFC manufacturers anticipate continued, albeit
decreasing, sales of refrigerant blends containing HCFC-142b in 2015
and later. HCFC-142b is predominantly used in refrigerant

blends that have historically served as replacements for CFC-12 and R-
500 in medium- and large-sized refrigeration equipment. It is important
to note that some of these blends containing HCFC-142b, namely R-409A,
are in use today but are not modeled in the Vintaging Model; thus, the
model is not an accurate reflection of the niche refrigeration needs
for HCFC-142b. Given that the agency knows there is some R-409A
equipment in use based on refrigerant sales data collected by the
California Air Resources Board (see Preliminary 2011 and 2012 Sales and
Distribution Data from the California Air Resources Board's Refrigerant
Management Program in the docket) and industry feedback, the agency is
proposing to allocate 35 MT in 2015 with a decrease of 5 MT each year.
EPA believes an allocation of 35 MT in 2015 is an appropriate balance
between the 2010-2014 allocation of 100 MT, the actual consumption of
HCFC-142b in recent years, and the fact that while R-409A is still
needed, it is used mainly in CFC retrofitted equipment (i.e., equipment
that is at or is nearing its expected retirement). With an annual
decrease of 5 MT, the HCFC-142b allocation would be 15 MT in 2019. The
agency thinks that a decreasing allocation sends a stronger market
signal that production and import of HCFC-142b are ending, as compared
to a constant allocation in all five years. Such a signal should help
encourage equipment owners to transition to more energy efficient
equipment that uses non-ODS refrigerants. EPA will consider issuing up
to 100 MT of HCFC-142b consumption allowances, but would need
substantial data supporting such an allocation. Specifically, EPA would
need to know for which blends, in what quantity and for what end use(s)
the HCFC-142b is needed.
    EPA is proposing to issue HCFC-142b production allowances at the
same level as consumption, not the same percentage of baseline. Given
historic exports of HCFC-142b, EPA does not believe the same rationale
for allowing production to be higher than consumption applies to HCFC-
142b as it applies to HCFC-22. In the 2013 Final Rule, HCFC-142b
production was higher than consumption due to the different changes in
production and consumption baselines, not due to any concerns about
HCFC-142b export (as was the case for HCFC-22 production). The agency
would consider issuing up to 100 MT of production, even if the final
consumption allocation is lower, if there is documented need for United
States-produced HCFC-142b in other non-Article 5 countries. The agency
is not proposing to issue any more than 100 MT of HCFC-142b production
allowances. EPA requests comments on its proposal, as well as data on
current and future needs of HCFC-142b.

D. How will EPA determine the HCFC-123 allocation?

    HCFC-123 is currently used as a refrigerant and as a fire
suppression agent, which are the two consumptive uses of virgin HCFCs
permitted by section 605(a) of the CAA as of January 1, 2015. The
agency is proposing to issue consumption allowances to allow import for
these two uses. For the 2010-2014 regulatory period, EPA issued
approximately 2,500 MT of HCFC-123 consumption allowances each year,
which is 125% of the HCFC-123 consumption baseline. EPA has never
established a production baseline for HCFC-123, and the agency has no
record of domestic production of HCFC-123 for consumptive uses during
the baseline years (2005-2007). Section 605(b) of the Clean Air Act
restricts production of any class II substance to 100% of baseline
levels or less beginning on January 1, 2015. Section 605(c) requires
that consumption of class II substances be phased out on the same
schedule as production. The agency's reading of 605(b) and 605(c)
together is that as of January 1, 2015, EPA may allocate no more than
100 percent of baseline for production or consumption of each class II
substance. This milestone is part of the phaseout schedule contained in
the CAA. EPA has accelerated the section 605 phaseout schedule under
the authority of section 606. Nevertheless, the 2015 milestone in
section 605(b) is still relevant because it applies to each class II
substance individually. This is in contrast to the basket approach
contained in the Montreal Protocol. Under section 614(b), where there
is a conflict between Title VI of the CAA and the Montreal Protocol,
``the more stringent provision shall govern.'' With respect to
individual substances, section 605 is more stringent. Thus, for the
2015 control period and beyond, EPA may not allocate more than 100
percent of baseline for any class II substance. EPA did determine in
the 2013 Final Rule that the percent of production and consumption
baseline allocated as calendar-year allowances may be different, but
only so long as the phaseout of a substance continues on the same
overall schedule presented in the CAA and the Protocol (78 FR 20004).
See the 2013 Final Rule and the accompanying Response to Comments for a
complete discussion of the agency's authority to decouple production
and consumption percentages.
    In considering allocation options, EPA has looked at the projected
need for virgin HCFC-123 for refrigeration and nonresidential fire
suppression uses. EPA's modeled need for each of these uses is
presented in the 2013 Servicing Tail Report, included in the docket to
this rulemaking. EPA is taking comment on the remaining refrigerant and
fire suppression uses of HCFC-123, how much is needed, and why non-ODS
alternatives could not meet this need. Commenters should clarify the
quantity of their specific needs, in addition to any broader comments
on industry demand for HCFC-123.
    Under the current phaseout regulations, beginning in 2015,
production and import of HCFC-123 is limited to servicing of existing
refrigeration and air conditioning equipment only. EPA is proposing to
revise section 82.16(d) to allow production and import of HCFC-123 for
fire suppression purposes to complement section 605(a)(4) of the CAA.
This exemption would sunset on December 31, 2019 because, as discussed
in more detail in Section II.A. of this preamble, beginning in 2020,
Article 2F of the Montreal Protocol restricts production and import of
HCFCs to servicing of existing refrigeration and air conditioning
equipment.\20\ Under section 614 of the CAA, where either the Montreal
Protocol or the CAA is more stringent, the more stringent provision
governs. While virgin HCFCs could continue to be used in fire
suppression applications, EPA does not intend to issue consumption
allowances for fire suppression after 2019. In addition, beginning in
2020, section 605(a) of the CAA prohibits the use of virgin class II
substances in the installation and/or manufacture of new AC and
refrigeration systems. Any HCFC-123 consumption allowances issued after
2019 would only allow HCFC-123 import for use as a refrigerant for
servicing existing HCFC-123 systems.
---------------------------------------------------------------------------

    \20\ Use of HCFC-123 that was imported prior to 2020, or that is
used, recovered and recycled, is still allowed beyond January 1,
2020.
---------------------------------------------------------------------------

    EPA's understanding is that much of the HCFC-123 refrigerant in use
today is to service and manufacture low pressure chillers, which have
relatively long expected lifetimes; the Vintaging Model assumes a 27-
year average lifetime, and the United States tax code uses a 39-year
depreciation schedule for a category of equipment that includes HCFC-
123 chillers (26 U.S.C. 168).

Given the expectation that these chillers will last for well over 20
years, EPA seeks comment on whether it should provide a static amount
of HCFC-123 allowances through 2019, or whether it should begin to
gradually reduce HCFC-123 allowances now to foster transition. The two
proposed options for issuing HCFC-123 consumption allowances are
outlined below, though EPA's preferred option is to issue 100 percent
of the HCFC-123 baseline. Commenters should explain why they prefer
either option in as much detail, and with as much quantitative
reasoning, as possible.
1. Allocate 100 Percent of HCFC-123 Consumption Baseline Through 2019
    EPA is proposing to issue approximately 2,000 MT of HCFC-123
consumption allowances for each year from 2015-2019, which is the
maximum allocation allowed under the CAA because it is equal to 100
percent of the consumption baseline. The agency believes this amount
would be sufficient to meet the refrigeration and nonresidential fire
suppression needs, even though projected need is 2,200 MT in 2015-2018
and 2,300 MT in 2019. EPA expects 2,000 MT of HCFC-123 allowances will
be sufficient to meet modeled need because the Vintaging Model projects
that at least 330 MT of HCFC-123 will be available for recovery and
reuse in 2015, and even more should be available in later years, mainly
because HCFC-123 chillers have high (90 percent) expected recovery
rates due to their large charge size. So while this proposed option
does not incorporate specific reductions for recovery and reuse, it
does assume that some demand for HCFC-123 can be met with recovered
material. EPA prefers this approach because (1) the allocation is still
below modeled need; (2) HCFC-123 may be produced and imported for use
as a refrigerant until 2030; and (3) there are no commercially
available alternatives to HCFC-123 in low-pressure chillers as of mid-
2013. EPA welcomes comment on its preferred proposal to issue 2,000 MT
in each year, and again notes that it cannot issue more than 100
percent of the HCFC-123 baseline.
2. Allocate Less Than 100 Percent of HCFC-123 Consumption Baseline
    EPA is proposing in the alternative to issue only enough HCFC-123
allowances to meet anticipated need, after specifically accounting for
recovery and reuse. Under this option, EPA would allocate 1,900 MT of
consumption allowances in 2015-2017, and 1,400 MT of allowances in 2018
and 2019. The objective of this approach is to foster recovery and
reuse, and to recognize that while virgin production of HCFC-123 could
occur through 2029, HCFC-123 equipment can only be manufactured through
2019. As shown in Table 4-12 of the 2013 Servicing Tail Report, the
total servicing demand plus the demand for charging new refrigeration
and fire suppression equipment is 2,200 MT in 2015-2018 and 2,300 MT in
2019. After subtracting the amount of that total demand that EPA
estimates can be met by recovered and reused material, the remaining
need that would be met by virgin production is equal to the proposed
allocation in each year. For 2015-2017 the proposed allocation is 1,900
MT, dropping to 1,400 MT in 2018 and 2019, as discussed in the 2013
Servicing Tail Report. The agency is seeking comment on this approach,
especially the HCFC-123 need estimates presented in the 2013 Servicing
Tail Report, to what extent need could reasonably be met with recovered
material and to what extent commenters believe the HCFC-123 allocation
will affect transition to alternatives.

E. How will EPA determine the HCFC-124 allocation?

    Though HCFC-124 has both refrigeration and fire suppression
applications that are listed as acceptable under the Significant New
Alternatives Policy (SNAP) program, its primary use today is in
sterilant blends. Beginning January 1, 2015, CAA section 605(a)
prohibits the use of virgin HCFCs as sterilants, since sterilant use is
not one of the four statutory exceptions. As discussed earlier in
section III.B. of this preamble, 605(a) restricts the use of bulk class
II substances, not products containing class II substances. However,
manufacture of a product is considered ``use'' of a bulk substance and
therefore is prohibited beginning January 1, 2015, unless the
manufacturer is using recovered and recycled HCFC-124. EPA's
understanding is that most of the sterilant industry is on target to
transition to non-ODS alternatives prior to January 1, 2015, but
welcomes comment on the transition out of HCFC-124 sterilants,
particularly the status of sterilant users' transition to alternatives.
    While most HCFC-124 use is as a sterilant, there are, in fact,
several refrigerant blends with HCFC-124 that are listed as acceptable
by the SNAP program. These blends include: R-401A, R-401B, R-409A, R-
414A, R-414B and R-416A. Similarly, EPA has also listed as acceptable
certain fire suppression alternatives that contain HCFC-124. For total
flooding applications, EPA has listed neat HCFC-124 and HCFC Blend A
(NAFS-III) as acceptable alternatives to Halon 1301. For streaming
applications, the agency has listed neat HCFC-124 and HCFC Blend C (NAF
P-III) as acceptable alternatives to Halon 1211. However, the agency is
not aware of any HCFC-124 fire suppression uses in the United States.
    Given the small projected need for HCFC-124 beyond 2014 and the
continued use of certain refrigerant blends containing HCFC-124, the
agency is proposing to issue some HCFC-124 allowances in 2015-2019,
consistent with the most recent Vintaging Model projections of HCFC-124
servicing need and recent feedback from industry stakeholders. Due to
the very small projected need, HCFC-124 is only discussed briefly in
the 2013 Servicing Tail Report; the remainder of the HCFC-124
discussion is included here. The estimated need in the Vintaging Model
decreases from 4.5 MT in 2015 to 3.1 MT in 2019, with just over half of
the need modeled for use in Industrial Process Refrigeration and the
other half for Medium Retail Food. EPA could propose to allocate just 4
MT in each year, but the agency recognizes that the Vintaging Model may
not capture all current uses of HCFC-124 refrigeration equipment, as is
the case with HCFC-142b equipment. Based on Vintaging Model estimates,
along with industry feedback on the needs and uses of HCFC-124, and the
use of HCFC-124 allowances in recent years, EPA is proposing to
allocate 200 MT of HCFC-124. For reference, the 2010-2014 consumption
and production allocations are roughly 3,000 MT and 5,000 MT,
respectively, though reported consumption and production has been
substantially less in recent years. EPA's goal is to ensure that
servicing needs can be met, while also encouraging recovery and reuse
or transition to non-ODS refrigerant blends. An allocation of 200 MT
supports this goal because it accounts for allowed end uses of HCFC-124
that may not be captured by the Vintaging Model (e.g. use of niche
refrigerant blends containing HCFC-124), but also recognizes that the
primary use of HCFC-124 will no longer be allowed as of January 1,
2015.
    Unlike HCFC-123, companies do have HCFC-124 production baselines
and so EPA is proposing to allocate consumption and production at the
same level. EPA's preferred approach is to allocate 200 MT of
production and consumption allowances to allow for limited manufacture
of niche refrigerant blends; however, the agency is proposing in the
alternative to issue as

few as 4 MT of HCFC-124 consumption and/or production allowances,
consistent with the Vintaging Model projections. This is not EPA's
preferred allocation, but the agency is open to comments in support of
this lower proposed option if commenters can provide evidence
suggesting that the allocation should be as low as 4 MT. Similarly, EPA
is also requesting data from commenters in support of allocating up to
400 MT of HCFC-124 allowances and is proposing to issue up to 400 MT if
comments and data warrant an increase. The agency seeks comment on the
transition or retrofit plans of equipment owners, and for how long they
expect to need virgin HCFC-124.

F. How will EPA determine the HCFC-225ca/cb allocation?

    According to the 2009 Servicing Tail Report, more recent updates to
EPA's Vintaging Model and conversations with stakeholders, HCFC-225ca
and HCFC-225cb are used only as solvents, usually in precision cleaning
of electronics, optical equipment or liquid oxygen systems. In the 2009
Final Rule, the agency used HCFC-225ca/cb as an example of the future
effects of the section 605(a) use restriction, stating that ``HCFC-
225ca and HCFC-225cb are generally used as solvents, but as of January
1, 2015, under section 605(a), HCFCs may not be used as solvents'' (74
FR 66433). This restriction is reflected in the regulations at section
82.15(g). However, as discussed in section III.B, EPA is proposing a
limited exemption to allow entities that have HCFC-225ca/cb in their
inventory prior to January 1, 2015 to continue to use their HCFC-225ca/
cb as a solvent beyond that date.
    The proposed exemption would apply only to use of HCFC-225ca/cb as
a solvent by persons who hold that HCFC-225ca/cb in their inventory as
of January 1, 2015; EPA is not proposing an exemption from the
restriction on introduction into interstate commerce of HCFCs for
solvent purposes. Accordingly, the agency is not proposing to issue any
allowances for the production or consumption of HCFC-225ca/cb. Combined
with the continued use of products containing HCFC-225ca/cb, EPA's
understanding from stakeholders is that an exemption to the use
prohibition to allow for continued use of virgin HCFC-225ca/cb as a
solvent by persons with HCFC-225ca/cb in their inventory would be
sufficient to meet the anticipated solvent needs for specialized, niche
applications that are not able to transition to alternatives prior to
2015. EPA is proposing such an exemption in section III.B.1. of this
preamble.

G. What is EPA proposing to do with the HCFC-141b exemption program?

    The HCFC-141b exemption program has been in place since the start
of the HCFC allowance program in 2003. In the preamble to the 2009
Final Rule, EPA stated that the petition process for HCFC-141b
exemption allowances at section 82.16(h) would end in 2015, since HCFC-
141b is not used as a refrigerant and thus does not meet the criteria
established by section 605(a) for continued use. HCFC-141b similarly is
not used as a fire suppression agent. EPA is proposing to revise 40 CFR
82.16, which is the section of subpart A that addresses the phaseout
schedule of class II controlled substances. The date limitation on the
HCFC-141b petition process can already be seen by comparing section
82.16(b), which lists ``HCFC-141b exemption needs'' as one of the
exceptions to the HCFC-141b phaseout, with section 82.16(d), which does
not include HCFC-141b exemption needs in the list of exceptions that
continue beyond January 1, 2015. However, the HCFC-141b petition
process in 82.16(h) does not specify an end date. EPA is proposing to
remove the HCFC-141b petition process from the regulations effective
January 1, 2015. Removing the text will clarify that EPA will not grant
petitions, whether new or existing, for HCFC-141b exemption allowances
in 2015 or beyond.
    In recent years the amount of HCFC-141b imported or produced has
been decreasing significantly. The agency does not anticipate there
will be any remaining need for HCFC-141b import or production starting
in 2015. Excluding transhipments, heels or used material, the
regulations at 40 CFR 82.15(g)(3) limit the use or introduction into
interstate commerce of HCFC-141b to export to Article 5 countries and
use in transformation or destruction processes, beginning January 1,
2015. Despite the strict limits on HCFC-141b use in 82.15(g)(3), EPA
appreciates that some current users of HCFC-141b may face a similar
situation as users of HCFC-225ca/cb. That is, there may be users with
HCFC-141b inventory that will not be allowed to use any remaining HCFC-
141b after 2014. The agency has not heard from any HCFC-141b users, and
thus does not anticipate the need for any exemption to the use
restrictions for HCFC-141b; however, EPA welcomes comment on whether
there are remaining niche uses of HCFC-141b. Commenters should explain
the use and the quantity of HCFC-141b needed, why alternatives or used
HCFC-141b cannot meet this need and the plan for transitioning to
alternatives.

H. Other HCFCs That Are Class II Controlled Substances

    To date, EPA has not established baselines or issued allowances for
the production or import of HCFCs that are not included in the tables
at 40 CFR 82.16(a). The prohibitions in 40 CFR 82.15(a) and (b) on
production and import without allowances do not apply to such HCFCs.
However, the phaseout schedule in 40 CFR 82.16 applies to all class II
substances, whether or not they are governed by the allowance system.
Similarly, all class II substances are subject to the restrictions on
introduction into interstate commerce and use contained in 40 CFR
82.15(g). HCFCs that EPA has listed as class II controlled substances
are identified in appendix B to subpart A.
    Beginning January 1, 2015, the use of all class II substances is
banned, unless specifically exempted (see section III.B. of this
preamble for more details). EPA is seeking comment on whether any of
the HCFCs not governed by the allowance system qualify for the
nonresidential fire suppression and/or refrigeration servicing
exemptions and what quantity the market will need going forward for
these purposes. Should the need for any of these chemicals grow or
potentially put the United States in danger of not meeting its
commitments under the Montreal Protocol, EPA would consider
establishing baselines and allocating calendar-year allowances via a
separate rulemaking.
    As mentioned earlier in section III.B. of this preamble, EPA is
proposing to amend the list of class II controlled substances in
appendix B of subpart A to better match the Clean Air Act section 602
and the Montreal Protocol HCFC lists (found in Group I to Annex C of
the Protocol). Currently, both the Protocol and CAA section 602 include
all isomers of listed substances, but 40 CFR part 82 subpart A,
appendix B does not include all isomers, only those that are
specifically named (e.g., HCFC-141b is listed as such, but there are
other isomers of HCFC-141 that are not included in appendix B). CAA
section 602 states that EPA ``shall publish'' a list of class II
substances that shall include the specified HCFCs and ``shall also
include the isomers'' of those substances. EPA's intent was to list all
isomers in appendix B, as indicated by the footnote explaining that
when a range of ODPs is listed for a chemical, the range applies to an
isomeric group. The proposed change would correct this

omission. Specifically, EPA is proposing to reconcile the statutory and
Montreal Protocol lists with the list in the regulations, and to add a
statement that appendix B of the regulations includes all isomers of a
listed chemical, even if the isomer itself is not listed on its own.

VI. What other adjustments to the HCFC allocation system is EPA
considering?

A. Will EPA consider banning dry-shipped HCFC-22 condensing units?

    Condensing units are a type of component in split system air
conditioners. Under current regulations, the sale or distribution of a
condensing unit pre-charged with HCFC-22 is prohibited (40 CFR 82
subpart I); however, a dry-shipped unit may be sold and used to repair
an existing system that uses HCFC-22 as the refrigerant. In February
2011, the Carrier Corporation sent a letter to EPA, asking the agency
to ban this particular type of repair. In the proposed rule providing
2012-2014 HCFC-22 allocations (77 FR 237), EPA took comment on whether
repairs using dry-shipped condensing units affect the phaseout of HCFC-
22. The agency received numerous comments, and responded to them in the
2013 Final Rule (78 FR 20004). While many comments discussed dry-
shipped condensing units, very few provided EPA any additional data or
information to indicate that repairs using condensing units affect the
HCFC phaseout. The agency is again seeking quantifiable information on
the number of dry-shipped condensing units being shipped, whether they
are being used as a repair in lieu of a compressor or motor
replacement, and whether and to what extent condensing unit
replacements extend the life of an existing system. The agency
continues to assess whether or not dry-shipped units jeopardize the
agency's ability to phase out and ensure a smooth transition from HCFC-
22. If the agency believes its ability to phase out HCFC-22 smoothly is
jeopardized, EPA would consider proposing a ban via a separate
rulemaking process.

B. How will EPA respond to requests for additional consumption
allowances in 2020 and beyond?

    Currently, the regulations at 82.20(a) allow a person to obtain
consumption allowances equivalent to the quantity of class II
controlled substances that the person exported during the control
period, provided that the substances were originally produced or
imported with consumption allowances. The exporter must submit certain
information to EPA which the agency reviews before issuing a notice
either denying the request, or granting the additional consumption
allowances. A person may submit this request (known as a Request for
Additional Consumption Allowances, or RACA) upon export of any HCFC for
which consumption allowances were originally expended, regardless of
what control period the production or import took place. As the
phaseout deadline approaches for certain HCFCs, the agency believes it
makes sense to restrict RACAs accordingly. For example, 1,000 kg of
HCFC-22 could be produced in 2019 using consumption and production
allowances. In 2020, or some later year, that material could be
exported--and under the current regulations the exporter would be
eligible to request 1,000 additional HCFC-22 consumption allowances;
however, there will not be any consumption allowances for HCFC-22 in
2020 or subsequent years.
    The agency believes that issuing additional consumption allowances
past the phaseout date for an HCFC--thereby allowing for continued
import--would be contrary to the goals of a program that has
purposefully set phaseout dates based on a worst-first approach.
Continuing to issue RACAs beyond the phaseout date for a substance
would also be contrary to past EPA actions for class I substances. For
class I substances, the option to obtain consumption allowances
equivalent to the level of class I controlled substances that the
person exported was available for most class I substances only until
January 1, 1996, which was the phaseout date for CFCs and most other
class I substances, and until January 1, 2005 for class I group VI
substances (i.e. methyl bromide), which was the phaseout date for that
substance. Therefore, EPA is proposing to add the following sentence to
paragraph 82.20(a): ``Both the export of the class II controlled
substance and the request for additional consumption allowances must
occur during a calendar year in which consumption allowances were
issued for that class II controlled substance.'' EPA welcomes comment
on its proposed addition to 82.20, and on its proposal to treat class
II RACAs the same as it treated the request for additional consumption
allowances for class I substances.

C. How might EPA maximize compliance with HCFC regulations?

    EPA is interested in comments and suggestions for ensuring
compliance with HCFC regulations. EPA recognizes that the 2015 stepdown
and the approaching complete phaseout of HCFC-22 may affect prices,
which could have the effect of increasing the incentives for illegal
activity, particularly illegal imports of HCFCs or HCFC blends. On the
other hand, the agency believes that reduced allocations and market
changes increasing the value of the material will encourage proper
recovery and decrease motivation to vent HCFCs, especially HCFC-22. EPA
seeks comment on how it could alter existing regulations to encourage
compliance with the HCFC phaseout requirements and section 608
refrigerant regulations. In addition, the agency is interested in ways
it could increase awareness and ensure compliance with the section
605(a) use restrictions and the section 611 labeling requirements that
will begin in 2015.

VII. What modifications to Section 608 regulations is EPA proposing?

    The portion of the stratospheric ozone regulations titled Recycling
and Emissions Reduction (40 CFR 82 subpart F) contains requirements
promulgated under CAA section 608. The section 608 requirements are
intended to: ``Reduce emissions of class I and class II refrigerants
and their substitutes to the lowest achievable level,'' by designing
standards for the use of ``refrigerants during the service,
maintenance, repair, and disposal of appliances'' (40 CFR 82.150). To
support this goal, EPA is proposing to update its reclamation
standards.

A. Overview of Current Reclamation Standards

    Recovered refrigerant often contains contaminants, including air,
water, particulates, acids, chlorides, high boiling residues, and other
impurities. Reclamation is the re-processing and upgrading of a
recovered controlled substance through such mechanisms as filtering,
drying, distillation, and chemical treatment in order to restore the
substance to a specified standard of performance. EPA regulations at 40
CFR 82.152 define reclaim as ``. . . to reprocess refrigerant to all of
the specifications in appendix A to 40 CFR part 82, subpart F (based on
ARI Standard 700-1995, Specification for Fluorocarbons and Other
Refrigerants) that are applicable to that refrigerant and to verify
that the refrigerant meets these specifications using the analytical
methodology prescribed in Section 5 of appendix A of 40 CFR part 82,
subpart F.'' Before a used refrigerant may re-enter the market place,
it must be reclaimed to the purity level specified by the regulations,
and its purity must be verified (40 CFR 82.154(g)).

B. Benefits of Reclamation

    EPA believes that proper recovery, recycling or reclamation, and
reuse of HCFC-22 and other ODS refrigerants is an essential component
of stratospheric protection. Refrigerant reuse is preferable to venting
or destruction. Recovery and reuse reduces emissions of HCFCs to the
atmosphere. Reuse also reduces the amount of virgin material that needs
to be produced. Section 608 of the CAA prohibits knowingly venting
HCFCs due to the adverse effects on stratospheric ozone, and EPA
regulations require that HCFCs be recovered during service or disposal
of appliances and then be either recycled, reclaimed, or destroyed.
    Recovery and reuse is becoming increasingly important as the United
States continues its progress in the phaseout of ODS. As discussed
earlier in this preamble, in 2015 the United States consumption cap for
HCFCs will decrease from 3,810 ODP-weighted metric tons to 1,524 ODP-
weighted metric tons (i.e. 10 percent of baseline).

C. Regulatory Changes That EPA Is Proposing Under Section 608 Authority

 1. Adoption of AHRI 700-2012 Standards
    On July 24, 2003 (68 FR 43786), EPA adopted the requirements of ARI
Standard 700-1995 into its regulation as appendix A of 40 CFR part 82
subpart F. EPA has not updated its use of this standard since then. The
current version of the ARI (now AHRI) Standard 700 is 700-2012,
including addenda added in August 2008 and August 2012 (AHRI 700C-2008:
Appendix C to AHRI Standard 700-Analytical Procedures for AHRI Standard
700-06 and AHRI 700D-2012: Appendix D Gas Chromatograms for AHRI
Standard 700-2012-Informative, all three of which are included in the
docket). Appendix A to subpart F has not kept pace with these
revisions. It lacks the most up-to-date listing of refrigerants, purity
requirements and changes to analytical methodologies. EPA's intent is
for reclaimers to use the most recent AHRI standards as reclamation
technology changes, and the agency would like its regulations to
reflect the best technical information and industry practices. For that
reason EPA is proposing to revise appendix A to reflect the most recent
set of AHRI standards, thereby keeping abreast of advances in the
reclamation industry. Under this option, EPA would replace Appendix A's
current text with the text in AHRI 700-2012 and its appendices. EPA
also intends to revise the definition of ``reclaim'' to reflect this
update to appendix A.
    Alternatively, rather than continue its practice of modifying the
language of appendix A to accommodate revisions to AHRI Standard 700
(in this case, to AHRI Standard 700-2012), EPA is proposing to cross-
reference AHRI Standard 700-2012 directly, eliminating the need for
reproducing the entire standard in appendix A. Such an approach, known
as incorporation by reference, allows a Federal agency to comply with
the requirement to publish rules in the Federal Register by referring
to materials already published elsewhere. The legal effect of
incorporation by reference is that the material is treated as if it
were published in the Federal Register. When EPA incorporates material
by reference, it references a specific version of the material instead
of providing a ``generic'' reference. Here, EPA is proposing to refer
specifically to AHRI Standard 700-2012 Specification for Fluorocarbon
Refrigerants and not to ``AHRI Standard 700'' or ``the most recent
version of AHRI Standard 700.'' The proposed regulatory text
incorporates by reference AHRI Standard 700-2012 at appendix A to
subpart F, and changes the definition of reclaim to the updated
standard incorporated by reference at appendix A.
    EPA believes incorporating AHRI Standard 700-2012 by reference, and
deleting the text in appendix A, has several advantages. AHRI standards
are published standards, they are widely known to and used by the
persons affected by this regulation, and they are available free of
charge at www.ahrinet.org/standards.aspx. Referencing the AHRI
standard, in lieu of duplicating it in appendix A, would reduce any
potential confusion about the relationship between the two sets of
requirements. It would also substantially reduce the amount of material
published in the Federal Register and Code of Federal Regulations. On
the other hand, EPA recognizes that there is an advantage to including
the requirements of the standard in an appendix to its own regulation,
avoiding the need to search for the 2012 version of the technical
standard and providing certainty that compliance with appendix A
(although possibly outdated) constitutes compliance with EPA
regulations. EPA seeks comment on incorporation by reference of a
specific version of the AHRI 700 standard, as compared to revising
appendix A to reflect a specific version. EPA also seeks comment on
whether the definition of ``reclaim'' should contain other aspects that
are not reflected in the AHRI standard, or conversely, whether there
are aspects of the AHRI standard that are not appropriate to include in
the regulatory definition.
2. Notification to EPA if Change in Business, Management, Location or
Contact Information
    Reclaimer certification does not transfer when there is a change in
ownership. Section 40 CFR 82.164(f) requires the new owner of the
reclamation company to certify with EPA within thirty days of the
change of ownership; however, there are no provisions that a
reclamation company must notify EPA of changes in business management,
location or contact information. EPA believes that notification of
changes in business information would improve accountability and
benefit reclaimers in the long run. Without accurate information, EPA
may not be able to communicate with a reclaimer in a timely manner,
potentially causing unnecessary burden to the reclaimer. For example,
if EPA does not receive an annual report from a reclaimer, the agency
wants to be able to contact the reclaimer by phone or mail to follow
up. If there is no response from the company, EPA sends a certification
revocation letter. Prior to revoking a reclaimer certification, EPA
would prefer to contact the company to find out what happened to their
annual reclaim report. Additionally, as a benefit to the public, the
agency wants to ensure that the Web site listing certified reclaimers
and their contact information is up-to-date. EPA is seeking comment on
its proposal to require notification from the reclaimer when there is a
change in business management, location or contact information (i.e.,
for the refrigerant manager who communicates with EPA).
3. Reporting and Recordkeeping Requirements
    EPA's ability to verify whether reclaimers are complying with
section 608 regulations is limited. Currently, 40 CFR 82.166(h)
requires that reclaimers, on an annual basis, report how much material
was received, how much they reclaimed, and the amount of waste product
generated as a result of reclamation activities. Under paragraph
82.166(g) refrigerant reclaimers must also maintain records of the
names and addresses of persons sending them material for reclamation
and the quantity of material (combined mass of refrigerant and
contaminant) sent to them for reclamation on a transactional basis.
However, the regulations do not

clearly state that information must be broken down by refrigerant type.
Some reclaimers do submit information broken down by refrigerant, and
EPA typically asks for refrigerant-specific information when it is not
provided. This information is used as part of an overall review of
refrigerant supply to help ensure the continued smooth transition out
of ODS refrigerants. The agency believes it is essential for EPA and
the public to have accurate information concerning the amounts of
specific types of refrigerants that are available from reclaimers for
reuse, and is therefore proposing to clarify the regulations to require
disaggregated information for all reclaimed refrigerants as part of the
annual reporting. The agency is proposing to revise paragraph 82.166(h)
to read: ``Reclaimers must maintain records of the quantity of material
(the combined mass of refrigerant and contaminants) sent to them for
reclamation, the mass of each refrigerant reclaimed, and the mass of
waste products. Reclaimers must report this information to the
Administrator annually within 30 days of the end of the calendar
year.'' This information is typically maintained by reclaimers and in
current practice is either included in the initial report to EPA or
transmitted in response to a specific request; therefore the agency
does not believe this proposed option increases reporting burden. The
agency hopes that this proposed change will clarify what information it
needs from reclaimers up front, and will alleviate the need for
additional back-and-forth between EPA and reclamation companies that in
the past were not submitting refrigerant-specific data, thereby
potentially reducing reporting burden.
    EPA also believes that in the future it may be beneficial to have
an accountability system that tracks refrigerant material at reclaimer
facilities on a longer time scale. 40 CFR 82.164(c) mandates that no
more than 1.5 percent of total refrigerant reclaimed shall be released
during the reclamation process. However, emissions can occur from leaks
in tubing, valves and other loss pathways and may not be recorded or
tracked. To increase accountability and awareness of any leaks or
losses, in the future EPA could require reclaimers to regularly report,
by refrigerant type, how much is in inventory, including storage,
regardless of when material was received. Based on information
available to the agency (Stratus, 2010), EPA believes that reclaimers
generally could support these modest changes. EPA believes that
inventory information is routinely maintained by reclaimers in the
course of normal business activity, and that the burden of reporting it
to EPA would be minimal.
    EPA is seeking input on future possible reporting and recordkeeping
changes that would help minimize emissions and facilitate a smooth
transition away from ODS. Commenters should consider what evidence, if
any, reclaimers should submit to verify their product is meeting AHRI-
700 standards, what format results should be reported in, and whether
summary results would be acceptable. EPA is taking comment on the
benefits of requiring reporting of testing sample results, and the
mechanisms that exist for EPA to validate that samples are
representative samples of reclaimer product. Additionally, the agency
is seeking information on the various mechanisms for material loss
during the reclamation process, and whether the losses can be
quantified.
4. Technical and Process Information Required in Reclaimer
Certification Application
    The reclamation regulations at 40 CFR 82.164(e)(2) include a
general requirement to submit ``a list of equipment used to reprocess
and analyze the refrigerant.'' This requirement, dating to the May 14,
1993 final rule, titled ``Protection of Stratospheric Ozone;
Refrigerant Recyling,'' (58 FR 28660), was included to help EPA ensure
that an applicant would own and use equipment that achieves AHRI 700
standards. Given the general language of this requirement, submissions
are often incomplete or vague, forcing EPA to request additional
information from the applicant. As the reclamation industry has
matured, EPA has developed a more precise understanding of technical
information, which, if submitted with a certification, would enable the
agency to more reliably assess a reclaimer's ability to achieve AHRI
standards and minimize emissions.
    While EPA is not proposing changes to this requirement in this
rulemaking, EPA seeks comment on whether developing a more robust
reclaimer certification process that requires more specific information
would clarify EPA's expectations for submitted certification
information and minimize refrigerant leaks. The agency believes that
reclaimers maintain this information as part of good business practice,
and that the burden of providing it to EPA as part of a certification
application would be small. Specifically, the agency is seeking comment
on the importance for EPA to collect the following information and the
burden that would be imposed by requiring it to be submitted: (1)
Detailed description of technology applied to achieve the applicable
AHRI Standard 700 requirements. If home-engineered, the certification
would include a schematic. If off-the-shelf, the applicant would
provide (1) the make, manufacturer, and serial number; (2) Batch
capacity; (3) Types of refrigerant to be reclaimed by reclaimer and
standard operating procedures for reclaiming those refrigerants; (4)
Information on the instrumentation and methodology that meets AHRI 700
requirements for determination of acidity, determination of moisture,
determination of chloride, determination of non-condensable,
determination of impurities, including other refrigerants, or, for
reclaimers that send refrigerant to an outside lab for analysis, a
certified letter from the outside lab identifying the methodology that
meets the AHRI 700 standards. In addition, the agency is considering
adding a provision to the regulations that clarifies what information
is necessary in order for EPA to approve certification. The agency is
also considering a new requirement that reclaimers submit a partial
recertification if they plan to accept refrigerants that are not
addressed in its current certification or if the reclaimer decides to
use a different type of reclamation equipment, thereby ensuring the
agency can assess whether they have the capability to properly process
all refrigerants they receive. EPA welcomes comment on other triggers
for requiring recertification, for example, a significant change in the
type of reclamation equipment.
5. Expanded End Product Testing Requirements
    EPA is interested in potentially expanding the requirements for
sampling and testing of reclaimed refrigerant in a future agency
rulemaking. Currently, the definition of ``reclaim'' says that
reclaimers are required to verify that reclaimed refrigerant meets the
AHRI Standard specifications using the analytical methodology in
Section 5 of appendix A of subpart F. Section 5 contains requirements
for sampling, test methods, and maximum permissible contaminant levels
of reclaimed refrigerant. However, the regulations do not specify how
often, or on what basis, reclaimers must use the Section 5 methodology.
EPA's concern is that it does not have current knowledge on the quality
of reclaimer product, and the agency is therefore interested in ways to

verify that reclaimed refrigerant is of acceptable quality. It is
possible that some reclaimed refrigerant entering the market does not
meet the AHRI standard and is being illegally vented due to the high
cost associated with disposition or destruction of the material.
    Section 5 of appendix A, as well as AHRI 700-2012, contains test
methods but does not specify testing frequency or requirements for
reporting test results. EPA is seeking information on what specific
criteria end product testing and reporting could be based on in order
to help validate that reclaimed product is meeting AHRI 700 standards.
Specifically, the agency is interested in: Sampling procedures and
specific testing protocols beyond what is currently in section 5; how
frequently testing should be required; how a batch of refrigerant would
be defined and whether testing should be on a per batch basis, or if
multiple tests should be required and on what time frame. Additionally,
EPA is interested in how it could ensure product quality, for example,
by requiring third party certification for all reclaimers, and the
advantages and disadvantages to such an approach. The agency notes that
technicians must be certified by a third party in order to service
equipment containing ODS, and is interested in how a third party
certification for reclaimers could be similar or different.

VIII. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review and Executive
Order 13563: Improving Regulation and Regulatory Review

    Under Executive Order (EO) 12866 (58 FR 51735, October 4, 1993),
this action is a ``significant regulatory action'' since it raises
``novel legal or policy issues.'' Accordingly, EPA submitted this
action to the Office of Management and Budget (OMB) for review under
Executive Orders 12866 and 13563 (76 FR 3821, January 21, 2011) and any
changes made in response to OMB recommendations have been documented in
the docket for this action.
    EPA did not conduct a specific analysis of the benefits and costs
associated with this action. Many previous analyses provide a wealth of
information on the costs and benefits of the United States HCFC
phaseout including:
     The 1993 Addendum to the 1992 Phaseout Regulatory Impact
Analysis: Accelerating the Phaseout of CFCs, Halons, Methyl Chloroform,
Carbon Tetrachloride, and HCFCs.
     The 1999 Report Costs and Benefits of the HCFC Allowance
Allocation System.
     The 2000 Memorandum Cost/Benefit Comparison of the HCFC
Allowance Allocation System.
     The 2005 Memorandum Recommended Scenarios for HCFC
Phaseout Costs Estimation.
     The 2006 ICR Reporting and Recordkeeping Requirements of
the HCFC Allowance System.
     The 2007 Memorandum Preliminary Estimates of the
Incremental Cost of the HCFC Phaseout in Article 5 Countries.
     The 2007 Memorandum Revised Ozone and Climate Benefits
Associated with the 2010 HCFC Production and Consumption Stepwise
Reductions and a Ban on HCFC Pre-charged Imports.
    A memorandum summarizing these analyses is available in the docket.

B. Paperwork Reduction Act

    The Office of Management and Budget (OMB) has previously approved
the information collection requirements contained in the existing
regulations at 40 CFR part 82, subpart A under the provisions of the
Paperwork Reduction Act, 44 U.S.C. 3501 et seq. and has assigned OMB
control number 2060-0498. The OMB control numbers for EPA's regulations
in 40 CFR are listed in 40 CFR part 9.
    However, EPA is proposing modifying the regulations covering
recordkeeping and reporting contained in the existing regulations at 40
CFR part 82, subpart F, which were approved by OMB under the provisions
of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. under OMB
control number 2060-0256. The two modifications, (1) requiring
reclaimers to provide updated contact information and (2) requiring
reclaimers to provide the amount of each refrigerant reclaimed in their
annual reporting, are already customary business practices and
therefore do not affect information collection burden. In both of these
cases, EPA is modifying the regulations so they align with current
practices.

C. Regulatory Flexibility Act (RFA)

    The Regulatory Flexibility Act (RFA) generally requires an agency
to prepare a regulatory flexibility analysis of any rule subject to
notice and comment rulemaking requirements under the Administrative
Procedure Act or any other statute, unless the agency certifies that
the rule will not have a significant economic impact on a substantial
number of small entities. Small entities include small businesses,
small organizations, and small governmental jurisdictions. For purposes
of assessing the impacts of this rulemaking on small entities, a small
entity is defined as: (1) A small business as defined by the Small
Business Administration's (SBA) regulations at 13 CFR 121.201; (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.
    This action will affect the following categories:

--Industrial Gas Manufacturing entities (NAICS code 325120), including
fluorinated hydrocarbon gas manufacturers and reclaimers;
--Other Chemical and Allied Products Merchant Wholesalers (NAICS code
424690), including chemical gases and compressed gases merchant
wholesalers;
--Air-Conditioning and Warm Air Heating Equipment and Commercial and
Industrial Refrigeration Equipment Manufacturing entities (NAICS code
333415), including air-conditioning equipment and commercial and
industrial refrigeration equipment manufacturers;
--Air-Conditioning Equipment and Supplies Merchant Wholesalers (NAICS
code 423730), including air-conditioning (condensing unit, compressors)
merchant wholesalers;
--Electrical and Electronic Appliance, Television, and Radio Set
Merchant Wholesalers (NAICS code 423620), including air-conditioning
(room units) merchant wholesalers;
--Plumbing, Heating, and Air-Conditioning Contractors (NAICS code
238220), including Central air-conditioning system and commercial
refrigeration installation, HVACR contractors; and
--Refrigerant reclaimers, manufacturers of recovery/recycling
equipment, and refrigerant recovery/recycling equipment testing
organizations.

    After considering the economic impacts of this proposed rule on
small entities, I certify that this action will not have a significant
economic impact on a substantial number of small entities. In
determining whether a rule has a significant economic impact on a
substantial number of small entities, the impact of concern is any
significant adverse economic impact on small entities, since the
primary purpose of the regulatory flexibility analyses is to identify
and address regulatory alternatives ``which minimize any

significant economic impact of the rule on small entities.'' 5 U.S.C.
603 and 604. Thus, an agency may certify that a rule will not have a
significant economic impact on a substantial number of small entities
if the rule relieves regulatory burden, or otherwise has a positive
economic effect on all of the small entities subject to the rule.
    Without allowances for the 2015-2019 regulatory period, existing
regulations would prohibit production and import of HCFCs, thus the
proposal to issue allowances is not a potential burden to small
business. EPA's HCFC Phaseout Benefits and Costs Memo, included in the
docket for this rulemaking, provides a summary of previous small
business analyses. Also, under section 608 of the CAA and 40 CFR
subpart F, EPA is proposing some minor modifications to recordkeeping
and reporting provisions; however, these proposed changes are to lessen
burden on small reclamation businesses by ensuring that businesses that
have already reported do not have to spend additional time responding
to follow-up requests from EPA, and so that EPA can reach businesses in
a timely manner with any necessary information. We have therefore
concluded that this proposed rule will relieve regulatory burden for
all affected small entities. We continue to be interested in the
potential impacts of the proposed rule on small entities and welcome
comments on issues related to such impacts.

D. Unfunded Mandates Reform Act

    This action contains no Federal mandates under the provisions of
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2 U.S.C.
1531-1538 for State, local, or tribal governments or the private
sector. UMRA does not apply to rules that are necessary for the
national security or the ratification or implementation of
international treaty obligations. This proposed rule would implement
the 2015 milestone for the phase-out of HCFCs under the Montreal
Protocol. Therefore, this action is not subject to the requirements of
sections 202 or 205 of the UMRA.
    This action is also not subject to the requirements of section 203
of UMRA because it contains no regulatory requirements that might
significantly or uniquely affect small governments. This action
apportions production and consumption allowances and establishes
baselines for private entities, not small governments.

E. Executive Order 13132: Federalism

    This action does not have federalism implications. It does 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. This action is expected to
primarily affect producers, importers, and exporters of HCFCs. Thus,
Executive Order 13132 does not apply to this action.
    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.

F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments

    This action does not have tribal implications, as specified in
Executive Order 13175 (65 FR 67249, November 9, 2000). This action does
not significantly or uniquely affect the communities of Indian tribal
governments. It does not impose any enforceable duties on communities
of Indian tribal governments. Thus, Executive Order 13175 does not
apply to this action. EPA specifically solicits additional comment on
this proposed action from tribal officials.

G. Executive Order 13045: Protection of Children From Environmental
Health and Safety Risks

    This action is not subject to EO 13045 (62 FR 19885, April 23,
1997) because it is not economically significant as defined in EO
12866. The Agency nonetheless has reason to believe that the
environmental health or safety risk addressed by this action may have a
disproportionate effect on children. Depletion of stratospheric ozone
results in greater transmission of the sun's ultraviolet (UV) radiation
to the earth's surface. The following studies describe the effects of
excessive exposure to UV radiation on children: (1) Westerdahl J,
Olsson H, Ingvar C. ``At what age do sunburn episodes play a crucial
role for the development of malignant melanoma,'' Eur J Cancer 1994:
30A: 1647-54; (2) Elwood JM Japson J. ``Melanoma and sun exposure: an
overview of published studies,'' Int J Cancer 1997; 73:198-203; (3)
Armstrong BK, ``Melanoma: childhood or lifelong sun exposure,'' In:
Grobb JJ, Stern RS Mackie RM, Weinstock WA, eds. ``Epidemiology, causes
and prevention of skin diseases,'' 1st ed. London, England: Blackwell
Science, 1997: 63-6; (4) Whiteman D., Green A. ``Melanoma and
Sunburn,'' Cancer Causes Control, 1994: 5:564-72; (5) Heenan, PJ.
``Does intermittent sun exposure cause basal cell carcinoma? A case
control study in Western Australia,'' Int J Cancer 1995; 60: 489-94;
(6) Gallagher, RP, Hill, GB, Bajdik, CD, et. al. ``Sunlight exposure,
pigmentary factors, and risk of nonmelanocytic skin cancer I, Basal
cell carcinoma,'' Arch Dermatol 1995; 131: 157-63; (7) Armstrong, DK.
``How sun exposure causes skin cancer: an epidemiological
perspective,'' Prevention of Skin Cancer. 2004. 89-116.
    This action implements the United States' commitment to reduce the
total basket of HCFCs produced and imported to a level that is 90
percent below the respective baselines. While on an ODP-weighted basis,
this is not as large a step as previous actions, such as the 1996 class
I phaseout, it is one of the most significant remaining actions the
United States can take to complete the overall phaseout of ODS and
further decrease impacts on children's health from stratospheric ozone
depletion.

H. Executive Order 13211: Actions that Significantly Affect Energy
Supply, Distribution, or Use

    This action is not a ``significant energy action'' as defined in
Executive Order 13211 (66 FR 28355, May 22, 2001), because it is not
likely to have a significant adverse effect on the supply,
distribution, or use of energy. This proposed rule would issue
allowances for the production and consumption of HCFCs.

I. National Technology Transfer and Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (``NTTAA''), Public Law 104-113, 12(d) (15 U.S.C. 272 note)
directs EPA to use voluntary consensus standards in its regulatory
activities unless to do so would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., materials specifications, test methods, sampling
procedures, and business practices) that are developed or adopted by
voluntary consensus standards bodies. The NTTAA directs EPA to provide
Congress, through OMB, explanations when the Agency decides not to use
available and applicable voluntary consensus standards. This proposed
rule involves technical standards. Through this action, EPA is
proposing to incorporate by reference

AHRI Standard 700-2012 Specification for Fluorocarbons and Other
Refrigerants and its appendices, which is available in the docket for
this rulemaking and online at http://www.ahrinet.org/search+standards.aspx. This industry standard for refrigerant
reclamation is an updated version of the standard contained in the
current regulations.
    EPA welcomes comments on this aspect of the proposed rulemaking
and, specifically, invites the public to identify potentially-
applicable voluntary consensus standards and to explain why such
standards should be used in this regulation.

J. Executive Order 12898: Federal Actions to Address Environmental
Justice in Minority Populations and Low-Income Populations

    Executive Order (EO) 12898 (59 FR 7629, Feb. 16, 1994) establishes
federal executive policy on environmental justice. Its main provision
directs federal agencies, to the greatest extent practicable and
permitted by law, to make environmental justice part of their mission
by identifying and addressing, as appropriate, disproportionately high
and adverse human health or environmental effects of their programs,
policies, and activities on minority populations and low-income
populations in the United States.
    EPA has determined that this action will not have
disproportionately high and adverse human health or environmental
effects on minority or low-income populations because the 2015 phaseout
step increases the level of environmental protection for all affected
populations without having any disproportionately high and adverse
human health or environmental effects on any population, including any
minority or low-income population. This action continues the
implementation of the United States commitment to reduce the total
basket of HCFCs produced and imported to a level that is 90 percent
below the respective baselines. While on an ODP-weighted basis, this is
not as large a step as previous actions, such as the 1996 class I
phaseout, it is one of the most significant remaining actions the
United States can take to complete the overall phaseout of ODS and
further lessen the adverse human health effects for the entire
population.

List of Subjects in 40 CFR Part 82

    Environmental protection, Administrative practice and procedure,
Air pollution control, Chemicals, Exports, Hydrochlorofluorocarbons,
Imports, Incorporation by reference.

    Dated: December 5, 2013.
Gina McCarthy,
Administrator.
    40 CFR part 82 is proposed to be amended to read as follows:

PART 82--PROTECTION OF STRATOSPHERIC OZONE

0
1. The authority citation for part 82 continues to read as follows:

    Authority:  42 U.S.C. 7414, 7601, 7671-7671q.

Subpart A--Production and Consumption Controls

0
2. Amend Sec.  82.3 by adding the definition of ``Use of a class II
controlled substance'' to read as follows:

Sec.  82.3  Definitions for class I and class II controlled substances.

* * * * *
    Use of a class II controlled substance, for the purposes of 82.15
of this subpart, includes but is not limited to use in a manufacturing
process, use in manufacturing a product, intermediate uses such as
formulation or packaging for other subsequent uses, and use in
maintaining, servicing, or repairing an appliance or other piece of
equipment. Use of a class II controlled substance also includes use of
that controlled substance when it is removed from a container used for
the transportation or storage of the substance but does not include use
of a manufactured product containing a controlled substance.
* * * * *
0
3. Amend Sec.  82.15 by revising paragraph (g)(4) to read as follows:

Sec.  82.15  Prohibitions for class II controlled substances.

* * * * *
    (g) * * *
    (4)(i) Effective January 1, 2015, no person may introduce into
interstate commerce or use any class II controlled substance not
governed by paragraphs (g)(1) through (3) of this section (unless used,
recovered and recycled) for any purpose other than for use in a process
resulting in its transformation or its destruction; for use as a
refrigerant in equipment manufactured before January 1, 2020; for use
as a fire suppression streaming agent listed as acceptable for use or
acceptable subject to narrowed use limits for nonresidential
applications in accordance with the regulations at subpart G of this
part; for export to Article 5 Parties under Sec.  82.18(a); as a
transshipment or heel; for exemptions permitted under paragraph (f) of
this section; or for exemptions permitted under paragraph (g)(4)(ii) of
this section.
    (ii) Effective January 1, 2015, use of HCFC-225ca or HCFC-225cb as
a solvent (excluding use in manufacturing a product containing HCFC-
225ca or HCFC-225cb) is not subject to the use prohibition in paragraph
(g)(4)(i) of this section if the person using the HCFC-225ca or HCFC-
225cb placed the controlled substance into inventory before January 1,
2015. This paragraph does not create an exemption to the prohibition on
introduction into interstate commerce in paragraph (g)(4)(i) of this
section.
* * * * *
0
4. Amend Sec.  82.16 by revising paragraphs (a), (d) and (e) and
removing and reserving paragraph (h) to read as follows:

Sec.  82.16  Phaseout schedule of class II controlled substances.

    (a) Calendar-year Allowances. (1) In each control period as
indicated in the following tables, each person is granted the specified
percentage of baseline production allowances and baseline consumption
allowances for the specified class II controlled substances apportioned
under Sec. Sec.  82.17 and 82.19:

                                                        Calendar-Year HCFC Production Allowances
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                          Percent of    Percent of HCFC-   Percent of      Percent of    Percent of HCFC-   Percent of      Percent of
            Control period                 HCFC-141b           22           HCFC-142b       HCFC-123           124          HCFC-225ca      HCFC-225cb
--------------------------------------------------------------------------------------------------------------------------------------------------------
2003..................................               0            100            100     ..............  ...............  ..............  ..............
2004..................................               0            100            100     ..............  ...............  ..............  ..............
2005..................................               0            100            100     ..............  ...............  ..............  ..............
2006..................................               0            100            100     ..............  ...............  ..............  ..............
2007..................................               0            100            100     ..............  ...............  ..............  ..............
2008..................................               0            100            100     ..............  ...............  ..............  ..............
2009..................................               0            100            100     ..............  ...............  ..............  ..............

2010..................................               0             41.9            0.47               0            125               125             125
2011..................................               0             32.0            4.9                0            125               125             125
2012..................................               0             17.7            4.9                0            125               125             125
2013..................................               0             30.1            4.9                0            125               125             125
2014..................................               0             26.1            4.9                0            125               125             125
2015..................................               0             21.7            0.37               0              5.0               0               0
2016..................................               0             21.7            0.32               0              5.0               0               0
2017..................................               0             21.7            0.26               0              5.0               0               0
2018..................................               0             21.7            0.21               0              5.0               0               0
2019..................................               0             21.7            0.16               0              5.0               0               0
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                        Calendar-Year HCFC Consumption Allowances
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                          Percent of    Percent of HCFC-   Percent of      Percent of    Percent of HCFC-   Percent of      Percent of
            Control period                 HCFC-141b           22           HCFC-142b       HCFC-123           124          HCFC-225ca      HCFC-225cb
--------------------------------------------------------------------------------------------------------------------------------------------------------
2003..................................               0            100            100     ..............  ...............  ..............  ..............
2004..................................               0            100            100     ..............  ...............  ..............  ..............
2005..................................               0            100            100     ..............  ...............  ..............  ..............
2006..................................               0            100            100     ..............  ...............  ..............  ..............
2007..................................               0            100            100     ..............  ...............  ..............  ..............
2008..................................               0            100            100     ..............  ...............  ..............  ..............
2009..................................               0            100            100     ..............  ...............  ..............  ..............
2010..................................               0             41.9            0.47             125            125               125             125
2011..................................               0             32.0            4.9              125            125               125             125
2012..................................               0             17.7            4.9              125            125               125             125
2013..................................               0             18.0            4.9              125            125               125             125
2014..................................               0             14.2            4.9              125            125               125             125
2015..................................               0              9.6            1.7              100              8.3               0               0
2016..................................               0              7.7            1.5              100              8.3               0               0
2017..................................               0              5.8            1.2              100              8.3               0               0
2018..................................               0              3.9            1.0              100              8.3               0               0
2019..................................               0              1.9            0.7              100              8.3               0               0
--------------------------------------------------------------------------------------------------------------------------------------------------------

* * * * *
    (d) Effective January 1, 2015, no person may produce class II
controlled substances not previously controlled for any purpose other
than for use in a process resulting in their transformation or their
destruction, for use as a refrigerant in equipment manufactured before
January 1, 2020, for use as a fire suppression streaming agent listed
as acceptable for use or acceptable subject to narrowed use limits for
nonresidential applications in accordance with the regulations at
subpart G of this part;, for export under Sec.  82.18(b) using
unexpended Article 5 allowances, or for export under Sec.  82.18(a)
using unexpended export production allowances, or for exemption
permitted in Sec.  82.15(f). Effective January 1, 2015, no person may
import class II controlled substances not subject to the requirements
of paragraph (b) or (c) of this section (other than transhipments,
heels or used class II controlled substances) for any purpose other
than for use in a process resulting in their transformation or their
destruction, for exemption permitted in Sec.  82.15(f), for use as a
refrigerant in equipment manufactured prior to January 1, 2020, or for
use as a fire suppression streaming agent for nonresidential
applications in accordance with the regulations at subpart G of this
part.
* * * * *
    (e)(1) Effective January 1, 2020, no person may produce HCFC-22 or
HCFC-142b for any purpose other than for use in a process resulting in
their transformation or their destruction, for export under Sec.
82.18(a) using unexpended Article 5 allowances, or for export under
Sec.  82.18(b) using unexpended export production allowances, or for
exemptions permitted in Sec.  82.15(f). Effective January 1, 2020, no
person may import HCFC-22 or HCFC-142b for any purpose other than for
use in a process resulting in their transformation or their
destruction, or for exemptions permitted in Sec.  82.15(f).
    (2) Effective January 1, 2020, no person may produce HCFC-123 for
any purpose other than for use in a process resulting in its
transformation or its destruction, for use as a refrigerant in
equipment manufactured before January 1, 2020, for export under Sec.
82.18(a) using unexpended Article 5 allowances, or for export under
Sec.  82.18(b) using unexpended export production allowances, or for
exemptions permitted in Sec.  82.15(f). Effective January 1, 2020, no
person may import HCFC-123 for any purpose other than for use in a
process resulting in its transformation or its destruction, for use as
a refrigerant in equipment manufactured before January 1, 2020 or for
exemptions permitted in Sec.  82.15(f).
* * * * *
    (h) [Reserved].
0
5. Amend Sec.  82.17 by revising the table to read as follows:

Sec.  82.17  Apportionment of baseline production allowances for class
II controlled substances.

    The following persons are apportioned baseline production
allowances for HCFC-22, HCFC-141b, HCFC-142b, HCFC-123, HCFC-124, HCFC-
225ca and HCFC-225cb, as set forth in the following table:

----------------------------------------------------------------------------------------------------------------
                     Person                                  Controlled substance               Allowances  (kg)
----------------------------------------------------------------------------------------------------------------
AGC Chemicals Americas.........................  HCFC-225ca..................................            266,608
                                                 HCFC-225cb..................................            373,952
Arkema.........................................  HCFC-22.....................................         46,692,336
                                                 HCFC-141b...................................         24,647,925
                                                 HCFC-142b...................................            484,369
DuPont.........................................  HCFC-22.....................................         42,638,049
                                                 HCFC-124....................................          2,269,210
Honeywell......................................  HCFC-22.....................................         37,378,252
                                                 HCFC-141b...................................         28,705,200
                                                 HCFC-142b...................................          2,417,534
                                                 HCFC-124....................................          1,759,681
MDA Manufacturing..............................  HCFC-22.....................................          2,383,835
Solvay Specialty Polymers USA, LLC.............  HCFC-142b...................................          6,541,764
----------------------------------------------------------------------------------------------------------------

0
6. Amend Sec.  82.19 by revising the table to read as follows:

Sec.  82.19  Apportionment of baseline consumption allowances for class
II controlled substances.

    The following persons are apportioned baseline consumption
allowances for HCFC-22, HCFC-142b, HCFC-123, HCFC-124, HCFC-225ca and
HCFC-225cb, as set forth in the following table:

----------------------------------------------------------------------------------------------------------------
                     Person                                  Controlled substance               Allowances  (kg)
----------------------------------------------------------------------------------------------------------------
ABCO Refrigeration Supply......................  HCFC-22.....................................            279,366
AGC Chemicals Americas.........................  HCFC-225ca..................................            285,328
                                                 HCFC-225cb..................................            286,832
Altair Partners................................  HCFC-22.....................................            302,011
Arkema.........................................  HCFC-22.....................................         48,637,642
                                                 HCFC-141b...................................         25,405,570
                                                 HCFC-142b...................................            483,827
                                                 HCFC-124....................................              3,719
Carrier........................................  HCFC-22.....................................             54,088
Continental Industrial Group...................  HCFC-141b...................................             20,315
Coolgas, Inc...................................  HCFC-141b...................................         16,097,869
Combes Investment Property.....................  HCFC-22.....................................          1,040,458
                                                 HCFC-123....................................             19,980
                                                 HCFC-124....................................              3,742
Discount Refrigerants..........................  HCFC-141b...................................                994
DuPont.........................................  HCFC-22.....................................         38,814,862
                                                 HCFC-141b...................................              9,049
                                                 HCFC-142b...................................             52,797
                                                 HCFC-123....................................          1,877,042
                                                 HCFC-124....................................            743,312
H.G. Refrigeration Supply......................  HCFC-22.....................................             40,068
Honeywell......................................  HCFC-22.....................................         35,392,492
                                                 HCFC-141b...................................         20,749,489
                                                 HCFC-142b...................................          1,315,819
                                                 HCFC-124....................................          1,284,265
ICC Chemical Corp..............................  HCFC-141b...................................             81,225
ICOR...........................................  HCFC-124....................................             81,220
Mexichem Fluor Inc.............................  HCFC-22.....................................          2,546,305
Kivlan & Company...............................  HCFC-22.....................................          2,081,018
MDA Manufacturing..............................  HCFC-22.....................................          2,541,545
Mondy Global...................................  HCFC-22.....................................            281,824
National Refrigerants..........................  HCFC-22.....................................          5,528,316
                                                 HCFC-123....................................             72,600
                                                 HCFC-124....................................             50,380
Perfect Technology Center, LP..................  HCFC-123....................................              9,100
Refricenter of Miami...........................  HCFC-22.....................................            381,293
Refricentro....................................  HCFC-22.....................................             45,979
R-Lines........................................  HCFC-22.....................................             63,172
Saez Distributors..............................  HCFC-22.....................................             37,936
Solvay Fluorides, LLC..........................  HCFC-22.....................................          3,781,691
                                                 HCFC-141b...................................          3,940,115
Solvay Specialty Polymers USA, LLC.............  HCFC-142b...................................            194,536
Tulstar Products...............................  HCFC-141b...................................             89,913
                                                 HCFC-123....................................             34,800
                                                 HCFC-124....................................            229,582
USA Refrigerants...............................  HCFC-22.....................................             14,865
----------------------------------------------------------------------------------------------------------------

0
7. Amend Sec.  82.20 by revising paragraph (a) introductory text to
read as follows:

Sec.  82.20  Availability of consumption allowances in addition to
baseline consumption allowances for class II controlled substances.

    (a) A person may obtain at any time during the control period, in
accordance with the provisions of this section, consumption allowances
equivalent to the quantity of class II controlled substances that the
person exported from the United States and its territories to a foreign
state in accordance with this section, when that quantity of class II
controlled substance was produced in the U.S. or imported into the
United States with expended consumption allowances. Both the export of
the class II controlled substance and the request for additional
consumption allowances must occur during a calendar year in which
consumption allowances were issued for that class II controlled
substance.
* * * * *
0
8. Amend appendix B to subpart A by inserting footnote B following
footnote A, to read as follows:

 Appendix B to Subpart A of Part 82--Class II Controlled Substances A B
------------------------------------------------------------------------
                 Controlled Substance                          ODP
------------------------------------------------------------------------
1. HCFC-21 (CHFCl2) Dichlorofluoromethane.............              0.04
2. HCFC-22 (CHF2Cl) Monochlorodifluoromethane.........             0.055
3. HCFC-31 (CH2FCl) Monochlorofluoromethane...........              0.02
4. HCFC-121 (C2HFCl4) Tetrachlorofluoroethane.........         0.01-0.04
5. HCFC-122 (C2HF2Cl3) Trichlorodifluoroethane........         0.02-0.08
6. HCFC-123 (C2HF3Cl2) Dichlorotrifluoroethane........              0.02
7. HCFC-124 (C2HF4Cl) Monochlorotetrafluoroethane.....             0.022
8. HCFC-131 (C2H2FCl3) Trichlorofluoroethane..........        0.007-0.05
9. HCFC-132 (C2H2F2Cl2) Dichlorodifluoroethane........        0.008-0.05
10. HCFC-133 (C2H2F3Cl) Monochlorotrifluoroethane.....         0.02-0.06
11. HCFC-141 (C2H3FCl2) Dichlorofluoroethane..........        0.005-0.07
12. HCFC-141b (CH3CFCl2) Dichlorofluoroethane.........              0.11
13. HCFC-142 (C2H3F2Cl) chlorodifluoroethane..........        0.008-0.07
14. HCFC-142b (CH3CF2Cl) Monochlorodifluoroethane.....             0.065
15. HCFC-151 (C2H4FCl) Chlorofluoroethane.............       0.003-0.005
16. HCFC-221 (C3HFCl6) Hexachlorofluoropropane........        0.015-0.07
17. HCFC-222 (C3HF2Cl5) Pentachlorodifluoropropane....         0.01-0.09
18. HCFC-223 (C3HF3Cl4) Tetrachlorotrifluoropropane...         0.01-0.08
19. HCFC-224 (C3HF4Cl3) Trichlorotetrafluoropropane...         0.01-0.09
20. HCFC-225 (C3HF5Cl2) Dichloropentafluoropropane....         0.02-0.07
21. HCFC-225ca (CF3CF2CHCl2)                                       0.025
 Dichloropentafluoropropane...........................
22. HCFC-225cb (CF2ClCF2CHClF)                                     0.033
 Dichloropentafluoropropane...........................
23. HCFC-226 (C3HF6Cl) Monochlorohexafluoropropane....          0.02-0.1
24. HCFC-231 (C3H2FCl5) Pentachlorofluoropropane......         0.05-0.09
25. HCFC-232 (C3H2F2Cl4) Tetrachlorodifluoropropane...         0.008-0.1
26. HCFC-233 (C3H2F3Cl3) Trichlorotrifluoropropane....        0.007-0.23
27. HCFC-234 (C3H2F4Cl2) Dichlorotetrafluoropropane...         0.01-0.28
28. HCFC-235 (C3H2F5Cl) Monochloropentafluoropropane..         0.03-0.52
29. HCFC-241 (C3H3FCl4) Tetrachlorofluoropropane......        0.004-0.09
30. HCFC-242 (C3H3F2Cl3) Trichlorodifluoropropane.....        0.005-0.13
31. HCFC-243 (C3H3F3Cl2) Dichlorotrifluoropropane.....        0.007-0.12
31. HCFC-244 (C3H3F4Cl) Monochlorotetrafluoropropane..        0.009-0.14
33. HCFC-251 (C3H4FCl3) Monochlorotetrafluoropropane..        0.001-0.01
34. HCFC-252 (C3H4F2Cl2) Dichlorodifluoropropane......        0.005-0.04
35. HCFC-253 (C3H4F3Cl) Monochlorotrifluoropropane....        0.003-0.03
36. HCFC-261 (C3H5FCl2) Dichlorofluoropropane.........        0.002-0.02
37. HCFC-262 (C3H5F2Cl) Monochlorodifluoropropane.....        0.002-0.02
38. HCFC-271 (C3H6FCl) Monochlorofluoropropane........        0.001-0.03
------------------------------------------------------------------------
\a\ * * *
\b\ This table includes all isomers of the substances above, regardless
  of whether the isomer is explicitly listed on its own.

Subpart E--The Labeling of Products Using Ozone-Depleting
Substances

0
9. Amend Sec.  82.110 by revising paragraph (c) title to read as
follows:

Sec.  82.110  Form of label bearing warning statement.

* * * * *
    (c) Combined statement for multiple controlled substances * * *
* * * * *
0
10. Amend Sec.  82.112 by revising paragraph (d) to read as follows:

Sec.  82.112  Removal of label bearing warning statement.

* * * * *
    (d) Manufacturers, distributors, wholesalers, retailers that sell
spare parts manufactured with controlled substances solely for repair
Manufacturers, distributors, wholesalers, and retailers that purchase
spare parts manufactured with a class I or class II substance from
another manufacturer or supplier, and sell such spare parts for the
sole purpose of repair, are not required to pass through an applicable
warning label if such products are removed from the original packaging
provided by the manufacturer from whom the products are purchased. * *
*
* * * * *
0
11. Amend Sec.  82.122 by revising paragraph (a)(1) to read as follows:

Sec.  82.122  Certification, recordkeeping, and notice requirements.

    (a) * * * (1) Persons claiming the exemption provided in Sec.
82.106(b)(4) must submit a written certification to the following
address: Labeling Program Manager, Stratospheric Protection

Division, Office of Atmospheric Programs, 6205-J, 1200 Pennsylvania
Ave. NW., Washington, DC 20460.
* * * * *

Subpart F--Recycling and Emissions Reductions

0
12. Amend Sec.  82.152 by revising the definition ``Reclaim'' to read
as follows:

Sec.  82.152  Definitions.

* * * * *
    Reclaim refrigerant means to reprocess refrigerant to all of the
specifications in AHRI Standard 700-2012 Specification for Fluorocarbon
Refrigerants (incorporated by reference at appendix A to 40 CFR part 82
subpart F) that are applicable to that refrigerant and to verify that
the refrigerant meet these specifications using the analytical
methodology prescribed therein.
* * * * *
0
13. Amend Sec.  82.164 by revising paragraph (f) to read as follows:

Sec.  82.164  Reclaimer certification.

* * * * *
    (f) Certificates are not transferrable. In the event of a change in
ownership of an entity which reclaims refrigerant, the new owner of the
entity shall certify within 30 days of the change of ownership pursuant
to this section. In the event of a change in business management,
location or contact information, the owner of an entity shall notify
EPA within 30 days of the change.
* * * * *
0
14. Amend Sec.  82.166 by revising paragraph (h) to read as follows:

Sec.  82.166  Reporting and recordkeeping requirements.

* * * * *
    (h) Reclaimers must maintain records of the quantity of material
(the combined mass of refrigerant and contaminants) sent to them for
reclamation, the mass of each refrigerant reclaimed, and the mass of
waste products. Reclaimers must report this information to the
Administrator annually within 30 days of the end of the calendar year.
* * * * *
0
15. Revise all text in appendix A to subpart F of Part 82-
Specifications for Fluorocarbon and Other Refrigerants to read as
follows:

Appendix A to Subpart F of Part 82--Specifications for Fluorocarbon and
Other Refrigerants

    AHRI Standard 700-2012: Specifications for Fluorocarbon
Refrigerants specifies acceptable levels of contaminants (purity
requirements) for fluorocarbon refrigerants and lists acceptable
test methods. This appendix incorporates by reference AHRI Standard
700-2012: Specifications for Fluorocarbon Refrigerants (2012
edition, Air-Conditioning, Heating, and Refrigeration Institute).
The entire standard, including Appendices A and B, are made part of
the regulations in part 82 subpart F. Accordance with the
specifications in AHRI Standard 700-2012 is required by the relevant
regulations of this subpart.
    The Director of the Federal Register approves this incorporation
by reference in accordance with 5 U.S.C. 552(a) and 1 CFR part 51.
You may obtain a copy from AHRI online at: http://www.ahrinet.org or
by contacting AHRI by phone: (+1)<PHONE_NUMBER> or by fax: (+1) 703-
562-1942. You may also obtain a copy in person or by mail at Air-
Conditioning, Heating, and Refrigeration Institute (AHRI) 2111
Wilson Blvd., Suite 500 Arlington, VA 22201, USA.
    AHRI Standard 700-2012 is also available online at http://www.regulations.gov/ by searching for docket number: EPA-HQ-OAR-
2013-0263. You may also inspect a copy at the United States EPA's
Air Docket; EPA West Building, Room 3334; 1301 Constitution Ave.
NW., Washington, DC or at the National Archives and Records
Administration (NARA). For questions regarding access to these
standards, the telephone number of EPA's Air Docket is<PHONE_NUMBER>.
For information on the availability of this material at NARA, call
202-741-6030, or go to: http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html.
* * * * *
[FR Doc. 2013-29817 Filed 12-23-13; 8:45 am]
BILLING CODE 6560-50-P