actively following and that could provide guidance on, or methodologies
for, addressing some of the limitations with the interim SC-GHG
estimates, which also apply to the SC-HFC.

XII. Statutory and Executive Order Review

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

    This action is an economically significant regulatory action that
was submitted to the Office of Management and Budget (OMB) for review.
Any changes made in response to OMB recommendations have been
documented in the docket. A summary of the potential costs and benefits
associated with this action is included in Table 1 in Section I.C and
additional details are provided in Section XI of this

final rulemaking. EPA has prepared an analysis of the potential costs
and benefits associated with this action, which is available in Docket
Number EPA-HQ-OAR-2021-0044.

B. Paperwork Reduction Act (PRA)

    The information collection activities in this rule will be
submitted for approval to OMB under the PRA. The Information Collection
Request (ICR) document that EPA prepared at proposal was assigned EPA
ICR number 2685.01, and the updated ICR for the final rulemaking has
been assigned EPA ICR number 2685.02. You can find copies of these ICRs
in the docket for this rule (Docket Number EPA-HQ-OAR-2021-0044), and
EPA ICR 2685.02 is briefly summarized here. The information collection
requirements are not enforceable until OMB approves them.
    Subsection (d)(1)(A) of the AIM Act specifies that on a periodic
basis, but not less than annually, each company that, within the
applicable reporting period, produces, imports, exports, destroys,
transforms, uses as a process agent, or reclaims a regulated substance
shall submit to EPA a report that describes, as applicable, the
quantity of the regulated substance that the company: Produced,
imported, and exported; reclaimed; destroyed by a technology approved
by the Administrator; used and entirely consumed (except for trace
quantities) in the manufacture of another chemical; or, used as a
process agent. EPA is collecting such data regularly to support
implementation of the AIM Act's HFC phasedown provisions. EPA is
requiring quarterly reporting to ensure that annual production and
consumption limits are not exceeded. It is also needed for EPA to be
able to review allowance transfer requests, of which remaining
allowances is a major component of EPA's review. In addition, EPA is
collecting information in order to calculate allowances, to track the
movement of HFCs through commerce, and to require auditing. Collecting
these data elements allow for EPA to ensure that the annual quantity of
regulated substances produced or consumed in the United States does not
exceed the cap established by the AIM Act, consistent with subsection
(e)(2)(B) of the Act.
    All information sent by the submitter electronically is transmitted
securely to protect information submitters customarily keep private or
closely held. The reporting tool guides the user through the process of
submitting CBI. Documents containing information claimed as CBI must be
submitted in an electronic format, in accordance with the recordkeeping
requirements. EPA also allows respondents to report CBI by fax and
through courier.
    Respondents/affected entities: Respondents and affected entities
are individuals or companies that produce, import, export, transform,
distribute, destroy, reclaim, fill, or package certain HFCs that are
defined as a regulated substance under the AIM Act. Respondents and
affected entities are also individuals and companies that produce,
import, or export products in six statutorily specified applications: A
propellant in MDIs; defense sprays; structural composite preformed
polyurethane foam for marine and trailer use; the etching of
semiconductor material or wafers and the cleaning of chemical vapor
deposition chambers within the semiconductor manufacturing sector;
mission-critical military end uses; and, onboard aerospace fire
suppression.
    Respondent's obligation to respond: Mandatory (AIM Act).
    Estimated number of respondents: 10,654.
    Frequency of response: Quarterly, biannual, annual, and as needed
depending on the nature of the report.
    Total estimated burden: 83,598 hours (per year). Burden is defined
at 5 CFR 1320.3(b).
    Total estimated cost: $12,102,515 per year, includes $2,737,392
annualized capital or operation & maintenance costs.
    An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a
currently valid OMB control number. The OMB control numbers for EPA's
regulations in 40 CFR are listed in 40 CFR part 9.
    EPA used data collected under the ICR for the Greenhouse Gas
Reporting Program (OMB Control No. 2060-0629), as well as the
associated reporting tool, the electronic Greenhouse Gas Reporting Tool
(e-GGRT), in developing this rulemaking. EPA also requested an
emergency ICR for a one-time collection request pertaining to data
necessary to establish the United States consumption and production
baselines, as well as to determine potential producers, importers, and
application-specific end users who were not subject to the GHGRP (OMB
Control No. 2060-0732, EPA ICR No. 2684.01). The emergency ICR for the
one-time collection request was approved on April 22, 2021, and more
information can be found here: https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202103-2060-005.

C. Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic
impact on a substantial number of small entities under the RFA. The
small entities subject to the requirements of this action are suppliers
of HFCs including producers, importers, exporters, reclaimers,
companies that destroy HFCs, and companies that sell and distribute
HFCs.
    To determine whether this final rule would likely have a SISNOSE,
EPA identified producers, importers, exporters, and reclaimers of HFCs
from 2017 through 2019 that reported to EPA's Greenhouse Gas Reporting
Program and CBP's ACE. Available economic data about each identified
entity (i.e., number of employees, annual sales) were obtained from the
Dun and Bradstreet databases, and the sizes compared with the U.S.
Small Business Administration's (SBA's) table of small business size
standards matched to NAICS codes. The small business threshold is
defined by SBA as the number of employees in the company and varied
between 100 and 1,500 employees. There were identified HFC importers
and reclaimers that met the definition of small businesses, but no HFC
producers were identified as small businesses. To determine the likely
economic impact on these small businesses, it was assumed that a
percentage of the HFCs they imported would be replaced by an
alternative, and the difference in the price between the HFCs and their
alternatives was applied to determine any change in sales revenue. The
methods used and assumptions made to perform this analysis are
described in detail in the technical support document, Economic Impact
Screening Analysis for the Allowance System for an HFC Production and
Consumption Phasedown, found in the docket of this rule (Docket Number
EPA-HQ-OAR-2021-0044).
    EPA estimates that approximately 19 of the 8,738 potentially
affected small businesses could incur costs in excess of one percent of
annual sales and that approximately 15 small businesses could incur
costs in excess of three percent of annual sales. Because there is not
a significant number of small businesses that may experience a
significant impact, it can be presumed that this action will have no
SISNOSE.

D. Unfunded Mandates Reform Act (UMRA)

    This action does not contain any unfunded mandate as described in
UMRA, 2 U.S.C. 1531-1538 and does

not significantly or uniquely affect small governments. The action
imposes no enforceable duty on any state, local, or tribal governments.

E. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have
substantial direct effects on the states, on the relationship between
the national government and the states, or on the distribution of power
and responsibilities among the various levels of government.

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

    This action does not have tribal implications as specified in
Executive Order 13175. It does not have substantial direct effects on
tribes on the relationship between the federal government and Indian
tribes, or on the distribution of power and responsibilities between
the federal government and Indian tribes, as specified in Executive
Order 13175. Thus, Executive Order 13175 does not apply to this action.
EPA periodically updates tribal officials on air regulations through
the monthly meetings of the National Tribal Air Association. EPA shared
information on this rulemaking through that meeting and other fora.

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

    This action is subject to Executive Order 13045 (62 FR 19885, April
23, 1997) because it is an economically significant regulatory action
as defined by Executive Order 12866, and EPA believes that the
environmental health or safety risk addressed by this action has a
disproportionate effect on children. Accordingly, EPA has evaluated the
environmental health and welfare effects of climate change on children.
    GHGs, including HFCs, contribute to climate change. The GHG
emissions reductions resulting from the implementation of this rule
will further improve children's health. The assessment literature cited
in EPA's 2009 and 2016 Endangerment Findings concluded that certain
populations and people at vulnerable stages of life, including
children, the elderly, and people with low incomes, are most vulnerable
to climate-related health effects. The assessment literature since 2016
strengthens these conclusions by providing more detailed findings
regarding these groups' vulnerabilities and the projected impacts they
may experience.
    These assessments describe how children's unique physiological and
developmental factors contribute to making them particularly vulnerable
to climate change. Impacts to children are expected from heat waves,
air pollution, infectious and waterborne illnesses, and mental health
effects resulting from extreme weather events. In addition, children
are among those especially susceptible to most allergic diseases, as
well as health effects associated with heat waves, storms, and floods.
Additional health concerns may arise in low-income households,
especially those with children, if climate change reduces food
availability and increases prices, leading to food insecurity within
households. More detailed information on the impacts of climate change
to human health and welfare is provided in Section III.B of this
preamble.

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

    This action is not a ``significant energy action'' because it is
not likely to have a significant adverse effect on the supply,
distribution, or use of energy. This action applies to certain
regulated substances and certain applications containing regulated
substances, none of which are used to supply or distribute energy.

I. National Technology Transfer and Advancement Act (NTTAA)

    This rulemaking does not involve technical standards.

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

    A summary of the Agency's approach for considering potential
environmental justice concerns as a result of this rulemaking can be
found in section IV of the preamble, and our environmental justice
analysis can be found in the RIA, available in the docket for this
rulemaking. As described in that analysis, this rule will reduce
emissions of potent GHGs, which will reduce the effects of climate
change, including the public health and welfare effects that
disproportionately harm minority populations, low-income populations,
and/or indigenous peoples.
    At the same time, the Agency recognizes that phasing down the
production of HFCs may cause significant changes in the location and
quantity of production of both HFCs and their substitutes, and that
these changes may in turn affect emissions of hazardous air pollutants
at chemical production facilities. At proposal and in this final rule,
EPA carefully evaluated available information on HFC production
facilities and the characteristics of nearby communities to evaluate
these impacts. EPA also solicited comment on whether these changes pose
risks to communities with environmental justice concerns and what
steps, if any, should be taken either under the AIM Act or under EPA's
other statutory authorities to address any concerns that might exist.
Based on this analysis and information gathered during the comment
period, EPA finds evidence of environmental justice concerns near HFC
production facilities from cumulative exposure to existing
environmental hazards in these communities. However, given
uncertainties about where and in what quantities HFC substitutes will
be produced, EPA cannot determine the extent to which this rule will
exacerbate or reduce existing disproportionate adverse effects on
communities of color and low-income people as specified in Executive
Order 12898 (59 FR 7629, February 16, 1994). However, as noted in
section IV, the Agency will continue to evaluate the impacts of this
program on communities with environmental justice concerns and consider
further action, as appropriate, to protect health in communities
affected by HFC production.

K. Congressional Review Act (CRA)

    This action is subject to the CRA, and EPA will submit a rule
report to each House of the Congress and to the Comptroller General of
the United States. This action is a ``major rule'' as defined by 5
U.S.C. 804(2).

List of Subjects

40 CFR Part 9

    Environmental protection, Reporting and recordkeeping requirements.

40 CFR Part 84

    Environmental protection, Administrative practice and procedure,
Air pollution control, Chemicals, Climate change, Emissions, Imports,
Reporting and recordkeeping requirements.

Michael S. Regan,
Administrator.

    For the reasons set forth in the preamble, EPA amends 40 CFR
chapter I as follows:

PART 9--OMB APPROVALS UNDER THE PAPERWORK REDUCTION ACT

0
1. The authority citation for part 9 continues to read as follows:

    Authority: 7 U.S.C. 135 et seq., 136-136y; 15 U.S.C. 2001, 2003,
2005, 2006, 2601-2671; 21 U.S.C. 331j, 346a, 31 U.S.C. 9701; 33
U.S.C. 1251 et seq., 1311, 1313d, 1314, 1318, 1321, 1326, 1330,
1342, 1344, 1345 (d) and (e), 1361; E.O. 11735, 38 FR 21243, 3 CFR,
1971-1975 Comp. p. 973; 42 U.S.C. 241, 242b, 243, 246, 300f, 300g,
300g-1, 300g-2, 300g-3, 300g-4, 300g-5, 300g-6, 300j-1, 300j-2,
300j-3, 300j-4, 300j-9, 1857 et seq., 6901-6992k, 7401-7671q, 7542,
9601-9657, 11023, 11048.

0
2. In Sec.  9.1 amend the table by:
0
a. Adding an undesignated center heading for ``Phasedown of
Hydrofluorocarbons'' after the entry for ``82.184(e)''; and
0
b. Adding an entry for ``84.29'' in numerical order.
    The additions read as follows:

Sec.  9.1  OMB approvals under the Paperwork Reduction Act.

* * * * *

------------------------------------------------------------------------
                                                            OMB control
                     40 CFR citation                            No.
------------------------------------------------------------------------

                                * * * * *
------------------------------------------------------------------------
                     Phasedown of Hydrofluorocarbons
------------------------------------------------------------------------
84.29...................................................       2060-AV17

                                * * * * *
------------------------------------------------------------------------

0
3. Effective October 5, 2021, add part 84 to read as follows:

PART 84--PHASEDOWN OF HYDROFLUOROCARBONS

Subpart A--Production and Consumption Controls
Sec.
84.1 [Reserved]
84.3 Definitions.
84.5 [Reserved]
84.7 Phasedown schedule.
84.9 Allocation of calendar-year production allowances.
84.11 Allocation of calendar-year consumption allowances.
84.13 Allocation of application-specific allowances.
84.15 Set-aside of application-specific allowances, production
allowances, and consumption allowances.
84.17-84.29 [Reserved]
84.31 Recordkeeping and reporting.
84.33-84.35 [Reserved]
Subpart B--[Reserved]
Appendix A to Part 84--[Reserved]

    Authority:  Pub. L. 116-260, Division S, Sec. 103.

Subpart A--Production and Consumption Controls

Sec.  84.1  [Reserved]

Sec.  84.3   Definitions.

    As used in this subpart, the term:
    Administrator means the Administrator of the United States
Environmental Protection Agency or his or her authorized
representative.
    Allowance means a limited authorization for the production or
consumption of a regulated substance established under subsection (e)
of section 103 in Division S, Innovation for the Environment, of the
Consolidated Appropriations Act, 2021 (Pub. L. 116-260) (the AIM Act).
An allowance allocated under subsection (e) of section 103 in Division
S of the AIM Act does not constitute a property right.
    Application-specific allowance means a limited authorization
granted in accordance with subsection (e)(4)(B)(iv) of the AIM Act for
the production or import of a regulated substance for use in the
specifically identified applications that are listed in that subsection
and in accordance with the restrictions to be determined. An
application-specific allowance does not constitute a property right.
    Bulk means a regulated substance of any amount that is in a
container for the transportation or storage of that substance such as
cylinders, drums, ISO tanks, and small cans. A regulated substance that
must first be transferred from a container to another container,
vessel, or piece of equipment in order to realize its intended use is a
bulk substance. A regulated substance contained in a manufactured
product such as an appliance, an aerosol can, or a foam is not a bulk
substance.
    Chemical vapor deposition chamber cleaning means, in the context of
semiconductor manufacturing, a process type in which chambers used for
depositing thin films are cleaned periodically using plasma-generated
fluorine atoms and other reactive fluorine-containing fragments.
    Confer means to shift unexpended application-specific allowances
obtained in accordance with subsection (e)(4)(B)(iv) of the AIM Act
from the end user allocated such allowances to one or more entities in
the supply chain for the production or import of a regulated substance
for use by the end user.
    Consumption, with respect to a regulated substance, means
production plus imports minus exports.
    Consumption allowances means a limited authorization to produce and
import regulated substances; however, consumption allowances may be
used to produce regulated substances only in conjunction with
production allowances. A person's consumption allowances are the total
of the allowances obtained under Sec.  84.11 or Sec.  84.15 (with
permitted modification to be determined).
    Defense spray means an aerosol-based spray used for self-defense,
including pepper spray and animal sprays, and containing the irritant
capsaicin and related capsaicinoids (derived from oleoresin capsicum),
an emulsifier, and an aerosol propellant.
    Destruction means the expiration of a regulated substance to the
destruction and removal efficiency actually achieved. Such destruction
might result in a commercially useful end product, but such usefulness
would be secondary to the act of destruction.
    Etching means, in the context of semiconductor manufacturing, a
process type that uses plasma-generated fluorine atoms and other
reactive fluorine-containing fragments that chemically react with
exposed thin films (e.g., dielectric, metals) or substrate (e.g.,
silicon) to selectively remove portions of material. This includes
semiconductor production processes using fluorinated GHG reagents to
clean wafers.
    Exchange value means the value assigned to a regulated substance in
accordance with AIM Act subsections (c) and (e), as applicable.
    Exchange value equivalent (EVe) means the exchange value-weighted
amount of a regulated substance obtained by multiplying the mass of a
regulated substance by the exchange value of that substance.
    Export means the transport from inside the United States or its
territories to persons outside the United States or its territories,
excluding United States military bases and ships for onboard use.
    Exporter means the person who contracts to sell regulated
substances for export or transfers regulated substances to his
affiliate in another country.
    Facility means one or more production lines at the same location
owned by or under common control of the same person.
    Final customer means the last person to purchase a bulk regulated
substance before its intended use. Final customer includes, but is not
limited to, air conditioning contractors in the residential air
conditioning market, foam systems houses, aerosol fillers,
semiconductor manufacturers, air conditioning and refrigeration
equipment manufacturers that ship equipment pre-charged, and fire
extinguisher manufacturers.
    Foreign country means an entity that is recognized as a sovereign
nation or country other than the United States of America.
    Heel means the amount of a regulated substance that remains in a
container after the container is discharged or

offloaded (that is no more than 10 percent of the volume of the
container).
    Import means to land on, bring into, or introduce into, or attempt
to land on, bring into, or introduce into, any place subject to the
jurisdiction of the United States, regardless of whether that landing,
bringing, or introduction constitutes an importation within the meaning
of the customs laws of the United States. Offloading used regulated
substances recovered from equipment aboard a marine vessel, aircraft,
or other aerospace vehicle during servicing is not considered an
import.
    Importer means any person who imports a regulated substance into
the United States. ``Importer'' includes the person primarily liable
for the payment of any duties on the merchandise or an authorized agent
acting on his or her behalf. The term also includes:
    (1) The consignee;
    (2) The importer of record;
    (3) The actual owner; or
    (4) The transferee, if the right to draw merchandise in a bonded
warehouse has been transferred.
    Individual shipment means the kilograms of a regulated substance
for which a person may make one (1) U.S. Customs entry, as identified
in the non-objection notice obtained from the relevant Agency official.
    Metered dose inhaler (MDI) means a handheld pressurized inhalation
system that delivers small, precisely measured therapeutic doses of
medication directly to the airways of a patient. MDIs treat health
conditions such as asthma and chronic obstructive pulmonary disease and
are approved for such use by the U.S. Food and Drug Administration
(FDA).
    Mission-critical military end uses means those uses of regulated
substances by an agency of the Federal Government responsible for
national defense that have a direct impact on mission capability, as
determined by the U.S. Department of Defense, including, but not
limited to uses necessary for development, testing, production,
training, operation, and maintenance of Armed Forces vessels, aircraft,
space systems, ground vehicles, amphibious vehicles, deployable/
expeditionary support equipment, munitions, and command and control
systems.
    Non-objection notice means the limited authorization granted by the
relevant Agency official to import a specific individual shipment of a
regulated substance.
    On board aerospace fire suppression means use of a regulated
substance in fire suppression equipment used on board commercial and
general aviation aircraft, including commercial-derivative aircraft for
military use; rotorcraft; and space vehicles. On board commercial
aviation fire suppression systems are installed throughout mainline and
regional passenger and freighter aircraft, including engine nacelles,
auxiliary power units (APUs), lavatory trash receptacles, baggage/crew
compartments, and handheld extinguishers.
    Person means any individual or legal entity, including an
individual, corporation, partnership, association, state, municipality,
political subdivision of a state, Indian tribe; any agency, department,
or instrumentality of the United States; and any officer, agent, or
employee thereof.
    Process agent means the use of a regulated substance to form the
environment for a chemical reaction or inhibiting an unintended
chemical reaction (e.g., use as a solvent, catalyst, or stabilizer)
where the regulated substance is not consumed in the reaction, but is
removed or recycled back into the process and where no more than trace
quantities remain in the final product. A feedstock, in contrast, is
consumed during the reaction.
    Production/Produce means the manufacture of a regulated substance
from a raw material or feedstock chemical (but not including the
destruction of a regulated substance by a technology approved by the
Administrator). The term production does not include:
    (1) The manufacture of a regulated substance that is used and
entirely consumed (except for trace quantities) in the manufacture of
another chemical;
    (2) The reclamation, reuse, or recycling of a regulated substance;
or
    (3) Insignificant quantities of a regulated substance inadvertently
or coincidentally generated from any of the following, independent
circumstances: during a chemical manufacturing process, resulting from
unreacted feedstock, from the listed substance's use as a process agent
present as a trace quantity in the chemical substance being
manufactured, as an unintended byproduct of research and development
applications, or during semiconductor manufacturing processes.
    Production allowances means the limited authorization to produce
regulated substances; however, production allowances may be used to
produce regulated substances only in conjunction with consumption
allowances. A person's production allowances are the total of the
allowances obtained under Sec.  84.9 or Sec.  84.15 (with permitted
modifications to be determined).
    Production line means any process equipment (e.g., reactor,
distillation column) used to convert raw materials or feedstock
chemicals into regulated substances or consume regulated substances in
the production of other chemicals.
    Reclaim means the reprocessing of regulated substances to all of
the specifications in appendix A to 40 CFR part 82, subpart F (based on
AHRI Standard 700-2016) that are applicable to that regulated substance
and to verify that the regulated substance meets these specifications
using the analytical methodology prescribed in section 5 of appendix A
to 40 CFR part 82, subpart F.
    Regulated substance means a hydrofluorocarbon listed in the table
contained in subsection (c)(1) of the AIM Act and a substance included
as a regulated substance by the Administrator under the authority
granted in subsection (c)(3).
    Space vehicle means a man-made device, either manned or unmanned,
designed for operation beyond Earth's atmosphere. This definition
includes integral equipment such as models, mock-ups, prototypes,
molds, jigs, tooling, hardware jackets, and test coupons. Also included
is auxiliary equipment associated with tests, transport, and storage,
which through contamination can compromise the space vehicle
performance.
    Structural composite preformed polyurethane foam means a foam blown
from polyurethane that is reinforced with fibers and with polymer resin
during the blowing process, and is preformed into the required shape
(e.g., specific boat or trailer design) to increase structural strength
while reducing the weight of such structures.
    Transform means to use and entirely consume (except for trace
quantities) a controlled substance in the manufacture of other
chemicals. A regulated substance that is used and entirely consumed
(except for trace quantities) in the manufacture of another chemical is
called a feedstock.
    Transhipment means the continuous shipment of a regulated
substance, from a foreign country of origin through the United States
or its territories, to a second foreign country of final destination,
as long as the shipment does not enter U.S. commerce. A transhipment,
as it moves through the United States or its territories, cannot be
repackaged, sorted, or otherwise changed in condition.
    Used regulated substances means regulated substances that have been
recovered from their intended use systems (including regulated
substances

that have been, or may be subsequently, recycled or reclaimed).

Sec.  84.5  [Reserved]

Sec.  84.7  Phasedown schedule.

    (a) Phasedown from baseline. Total production and consumption of
regulated substances in the United States in each year cannot exceed
the amounts (shown as a percentage of baseline) in the following table:

------------------------------------------------------------------------
                                        Percentage of     Percentage of
                                         production        consumption
                Date                      baseline          baseline
                                          (percent)         (percent)
------------------------------------------------------------------------
(1) 2022-2023.......................                90                90
(2) 2024-2028.......................                60                60
(3) 2029-2033.......................                30                30
(4) 2034-2035.......................                20                20
(5) 2036 and thereafter.............                15                15
------------------------------------------------------------------------

    (b) Annual production and consumption limits. (1) The production
baseline for regulated substances is 382,554,619 metric tons of
exchange value equivalent.
    (2) The consumption baseline for regulated substances is
303,887,017 metric tons of exchange value equivalent.
    (3) Total production and consumption in metric tons of exchange
value equivalent for regulated substances in the United States in each
year is derived by multiplying the production baseline or consumption
baseline by the percentage in paragraph (a) of this section. Total
production and consumption allowances issued under this subpart may not
exceed the quantities shown in the following table:

------------------------------------------------------------------------
                                            Total             Total
                Year                     production        consumption
                                           (MTEVe)           (MTEVe)
------------------------------------------------------------------------
(i) 2022-2023.......................       344,299,157       273,498,315
(ii) 2024-2028......................       229,532,771       182,332,210
(iii) 2029-2033.....................       114,766,386        91,166,105
(iv) 2034-2035......................        76,510,924        60,777,403
(v) 2036 and thereafter.............        57,383,193        45,583,053
------------------------------------------------------------------------

Sec.  84.9   Allocation of calendar-year production allowances.

    (a) The relevant agency official will issue, through a separate
notification, calendar year production allowances to entities that
produced a regulated substance in 2020. The number of production
allowances allocated to each eligible entity for 2022-2023 is
calculated as follows:
    (1) Take the average of the three highest annual exchange value-
weighted production amounts that each eligible entity reported to the
agency for calendar years 2011 through 2019;
    (2) Sum the ``average high year'' values determined in step 1 of
all eligible entities and determine each entity's percentage of that
total;
    (3) Determine the amount of general pool production allowances by
subtracting the quantity of application-specific allowances for that
year as determined in accordance with Sec.  84.13 and the set-aside in
Sec.  84.15 from the production cap in Sec.  84.7(b)(3);
    (4) Determine individual entities' production allowance quantities
by multiplying each entity's percentage determined in step 2 by the
amount of general pool allowances determined in step 3.
    (b)(1) EPA will allocate calendar year production allowances to
individual entities by October 1 of the calendar year prior to the year
in which the allowances may be used based on the exchange value-
weighted quantities calculated in paragraph (a)(4) of this section.
    (2) EPA will provide public notice of the list of companies
receiving production allowances as well as the quantities they will be
allocated by that date.
    (3) In addition to the procedure in paragraph (a) of this section,
the relevant agency official will allocate calendar year production
allowances to entities that qualified for allowances under Sec.  84.15.
    (4) If there are remaining production allowances after distribution
from the set-aside under Sec.  84.15, the relevant agency official will
distribute such allowances on a pro rata basis to the entities in
paragraph (a) of this section by March 31 of the calendar year in which
the allowances may be used.

Sec.  84.11   Allocation of calendar-year consumption allowances.

    (a) The relevant agency official will issue, through a separate
notification, calendar year consumption allowances to entities that
imported or produced a bulk regulated substance in 2020, unless an
individual accommodation is permitted by a relevant Agency official. If
multiple importers are related through shared corporate or common
ownership or control, the relevant agency official will calculate and
issue allowances to a single corporate or common owner. The number of
consumption allowances allocated to each eligible entity for 2022-2023
is calculated as follows:
    (1) Take the average of the three highest annual exchange value-
weighted consumption amounts chosen at the corporate or common
ownership level for eligible entities reporting to the agency for each
calendar year 2011 through 2019;
    (2) Sum the ``average high year'' values determined in step 1 of
all eligible entities and determine each entity's percentage of that
total;
    (3) Determine the amount of general pool consumption allowances by
subtracting the quantity of application-specific allowances for that
year as determined in accordance with Sec.  84.13 and the set-aside in
Sec.  84.15 from the consumption cap Sec.  84.7(b)(3);
    (4) Determine individual entity consumption allowance quantities by
multiplying each entity's percentage determined in step 2 by the amount
of general pool allowances determined in step 3.

    (b)(1) EPA will allocate calendar year consumption allowances to
individual entities by October 1 of the calendar year prior to the year
in which the allowances may be used based on the exchange value-
weighted quantities calculated in paragraph (a)(4) of this section.
    (2) EPA will provide public notice of the list of companies
receiving consumption allowances as well as how they will be allocated
by that date.
    (c)(1) In addition to the procedure in paragraph (a) of this
section, the relevant agency official will allocate calendar year
consumption allowances to entities that qualified for allowances under
Sec.  84.15.
    (2) If there are remaining consumption allowances after
distribution from the set-aside under Sec.  84.15, the relevant agency
official will distribute such allowances on a pro rata basis to the
entities in paragraph (a) of this section by March 31 of the calendar
year.

Sec.  84.13  Allocation of application-specific allowances.

    (a) Application-specific allowances are available to entities for
calendar years 2022, 2023, 2024, and 2025 that use a regulated
substance in the following applications:
    (1) As a propellant in metered dose inhalers;
    (2) In the manufacture of defense sprays;
    (3) In the manufacture of structural composite preformed
polyurethane foam for marine use and trailer use;
    (4) In the etching of semiconductor material or wafers and the
cleaning of chemical vapor deposition chambers within the semiconductor
manufacturing sector;
    (5) For mission-critical military end uses; and
    (6) For on board aerospace fire suppression.
    (b) Entities identified in paragraph (a) of this section must
request application-specific allowances by July 31 of the calendar year
prior to the year in which the allowances may be used starting with the
calendar year 2023 allocation. The application must include the
information required in Sec.  84.31(h)(2) except for applications for
mission-critical military end uses, which must include the information
required in Sec.  84.31(h)(3).
    (1) Entities must provide additional information if requesting that
EPA consider unique circumstances that are not reflected by the rates
of growth calculated in paragraph (c)(1) of this section. The relevant
agency official will consider the following situations as unique
circumstances:
    (i) Demonstrated manufacturing capacity coming on line;
    (ii) The acquisition of another domestic manufacturer or its
manufacturing facility or facilities; or
    (iii) A global pandemic or other public health emergency that
increases patients diagnosed with medical conditions treated by metered
dose inhalers.
    (2) [Reserved]
    (c) The relevant agency official will determine the quantity of
application-specific allowances to issue to each company by:
    (1) Taking the higher of the use of regulated substances by the
company in the specific application in the prior year multiplied by:
    (i) The average growth rate of use for the company over the past
three years; or
    (ii) The average growth rate of use by all companies requesting
allowances for that specific application over the past three years; and
    (2) Accounting for any additional information provided regarding
unique circumstances described in paragraph (b)(1) of this section; and
    (3) Subtracting out any general pool allowances allocated to the
company for that calendar year.
    (d)(1) EPA will allocate application-specific allowances by October
1 of the calendar year prior to the year in which the allowances may be
used. The relevant agency official will issue, through a separate
notification, application-specific allowances to eligible entities
consistent with paragraphs (a) through (c) of this section.
    (2) EPA will provide public notice by that date of the list of
entities receiving application-specific allowances, the quantity of
allowances for each entity, and the specific application(s) for which
the allowances may be used.
    (e) Entities that use regulated substances in one of the six
applications listed in paragraph (a) of this section and were not
issued allowances as of October 1, 2021, may request allowances under
the procedure in Sec.  84.15. Such entities must meet the criteria for
eligibility in this section and are subject to the requirements of this
section and Sec.  84.31(h).
    (f) EPA will publish a list of entities allocated application-
specific allowances, the application for which they may use regulated
substances, and the quantity of allowances allocated.
    (g) Application-specific allowances may be expended for either the
import or production of a regulated substance.
    (h) Entities allocated application-specific allowances may confer
application-specific allowances to a producer, importer, or other
supplier without being subject to the offset required of transfers of
allowances to be determined. The recipient of a conferred application-
specific allowance may continue to confer the allowance until it is
expended for production or import. When conferring application-specific
allowances, the conferring party must provide a statement certifying
that the regulated substances produced or imported with the conferred
allowances will only be used for the application-specific use
associated with the allowance(s). The producer(s), importer(s), and/or
supplier(s) receiving application-specific allowances must certify to
the conferring party that they will not sell regulated substances
produced or imported with application-specific allowances for any
application or use other than the application-specific use associated
with the allowance(s).

Sec.  84.15  Set-aside of application-specific allowances, production
allowances, and consumption allowances.

    (a) Total allowances available under this section to be allocated
for calendar years 2022 and 2023 are:
    (1) Up to 7.5 million metric tons of exchange value equivalent
consumption allowances annually for calendar years 2022 and 2023.
    (2) Up to 2.5 million metric tons of exchange value equivalent
production allowances for calendar years 2022 and 2023.
    (b)(1) Consumption and production allowances in paragraph (a) of
this section are available in the form of application-specific
allowances to entities that qualify for application-specific allowances
under Sec.  84.13 that were not issued allowances as of October 1,
2021.
    (2) Entities must provide the relevant Agency official with the
information contained in Sec.  84.13 by November 30, 2021 to be
eligible for consideration.
    (c) Consumption allowances in paragraph (a) of this section are
available to either:
    (1) Persons who imported regulated substances in 2020 that were not
required to report under 40 CFR part 98 and were not issued allowances
as of October 1, 2021; or
    (2) Persons who are newly importing regulated substances, do not
share corporate or common ownership, corporate affiliation in the past
five years, or familial relations with entities receiving allowances
through this rule.
    (d)(1) Persons who meet the criteria listed in paragraph (c)(1) of
this section must provide the relevant Agency

official with the following information by November 30, 2021, to be
eligible for consideration:
    (i) Name and address of the company, the complete ownership of the
company (with percentages of ownership), and contact information for a
designated representative at the company;
    (ii) The following information on an annual basis for all years
between 2011 and 2020 where the person imported regulated substances:
    (A) The total quantity (in kilograms) imported of each regulated
substance each year, including each shipment, dates of and port of
entry for each import, and country from which the imported regulated
substances were imported;
    (B) The Harmonized Tariff Schedule codes and CAS numbers for the
regulated substances or blends imported;
    (C) The quantity (in kilograms) of regulated substances imported
for use in processes resulting in their transformation or destruction;
and
    (D) The quantity (in kilograms) of regulated substances sold or
transferred during that year to each person for use in processes
resulting in their transformation or destruction.
    (iii) The following information on an annual basis for all years
between 2011 and 2020 where the person exported regulated substances:
    (A) The names and addresses of the exporter and the recipient of
the exports;
    (B) The exporter's Employer Identification Number;
    (C) The quantity of each specific regulated substance exported,
including the quantity of regulated substance that is used, reclaimed,
or recycled;
    (D) The date on which, and the port from which, the regulated
substances were exported from the United States or its territories;
    (E) The country to which the regulated substances were exported;
and
    (F) The Harmonized Tariff Schedule codes and CAS numbers for the
regulated substances shipped.
    (2) Persons who meet the criteria listed in paragraph (c)(2) of
this section must provide the relevant Agency official with the
following information by November 30, 2021, to be eligible for
consideration:
    (i) Name and address of the company, the complete ownership of the
company (with percentages of ownership), and contact information for a
designated representative at the company;
    (ii) Whether the company is a woman- or minority-owned business;
    (iii) Contact information for the owner of the company;
    (iv) The date of incorporation and State in which the company is
incorporated;
    (v) State license identifier;
    (vi) A plan for importing regulated substances;
    (vii) A prospective foreign exporter that the applicant anticipates
working with;
    (viii) A certification that the business owner understands the
regulatory requirements of this part and will make best efforts to
comply with the regulatory requirements; and
    (ix) A certification that the information submitted is complete,
accurate, and truthful.
    (e) The relevant Agency official will allocate calendar-year 2022
and 2023 allowances in paragraph (a) of this section no later than
March 31, 2022, in the following manner:
    (1) First, persons who meet the criteria listed in paragraph (b) of
this section are allocated application-specific allowances (subtracted
from both the production and consumption portions of the set-aside
pool) for 2022 equal to the estimated need, based on projected,
current, and historical trends, and subject to the same conditions for
such allowances in Sec.  84.13;
    (2) Second, persons who meet the criteria listed in paragraph
(c)(1) of this section are allocated allowances for 2022 by calculating
their ``average high year'' based on the formula in Sec.  84.11(a)(1)
and then applying the same reduction percentage between the values
calculated in Sec.  84.11(a)(1) and (4) for all general pool allowance
holders.
    (3) Third, persons who meet the criteria listed in paragraph (c)(2)
of this section are allocated up to 0.2 million metric tons exchange
value equivalent in allowances for 2022 and 2023.
    (4) If the eligible requests received total an amount of allowances
that exceeds the remaining quantity of allowances in the set-aside
pool, after subtracting allowances issued under paragraphs (b)(1) and
(c)(1) of this section, the amount provided to each person who meets
the criteria listed in paragraph (c)(2) of this section that has
applied to the set-aside pool will be allocated an amount of allowances
that is reduced on a pro rata basis. If any allowances remain after the
steps outlined in paragraphs (b)(1) and (c)(1) and (2) of this section,
those allowances will be distributed to the persons who meet the
criteria listed in Sec. Sec.  84.9 and 84.11 on a pro rata basis.
    (f) EPA is placing restrictions on allowances allocated under this
section.
    (1) Allowances allocated to persons under paragraph (e)(3) of this
section, due to their eligibility of meeting the criteria in paragraph
(c)(2) of this section, may not be transferred to another entity.
    (2) Allowances issued under this section are not available to
companies that are a subsidiary of, have any common ownership stake
with, had corporate affiliation in the past five years with, or have a
familial relationship with another allowance holder.
    (g) EPA will provide public notice by March 31, 2022, of the list
of entities receiving allowances under this paragraph, the quantity of
allowances for each entity, and the specific application(s) for which
the allowances may be used, where applicable.

Sec. Sec.  84.17-84.29   [Reserved]

Sec.  84.31  Recordkeeping and reporting.

    (a) through (g) [Reserved]
    (h) Holders of application-specific allowances. (1) [Reserved]
    (2) New Requests. Persons requesting application-specific
allowances for the first time must submit to EPA the following
information:
    (i) A description of the use of regulated substances and a detailed
explanation of how the use is an application-specific use listed in
Sec.  84.13(a);
    (ii) Total quantity (in kilograms) of all regulated substances
acquired for application-specific use in the previous three years,
including a copy of the sales records, invoices, or other records
documenting that quantity;
    (iii) The name of the entity or entities supplying regulated
substances for application-specific use and contact information for
those suppliers;
    (iv) The quantities (in kilograms) of regulated substances held in
inventory for application-specific use as of June 30 of the prior year
and June 30 in the current year;
    (v) A description of plans to transition to regulated substances
with a lower exchange value or alternatives to regulated substances;
    (vi) If a company is requesting additional allowances due to one or
more of the circumstances listed in Sec.  84.13(b)(1), the report must
include a projection of the monthly quantity of additional regulated
substances needed by month in the next calendar year and a detailed
explanation, including relevant supporting documentation to justify the
additional need; and
    (vii) If a company is contracting out the manufacturing of defense
sprays or metered dose inhalers, or contracting out the servicing of
onboard aerospace fire suppression, the name, address, and email
address for a representative of the

person doing the manufacturing or servicing, and clarification on
whether the responses in paragraph (h)(2) of this section apply to the
company that is requesting application-specific allowances or the
company receiving the contract for manufacturing and/or servicing using
application-specific allowances.
    (3) Report for Application-specific Allowances for Mission-critical
Military End Use. The Department of Defense must provide a report to
EPA biannually by July 31 (covering prior activity from January 1
through June 30) and January 31 (covering prior activity from July 1
through December 31) of each year contains the following information:
    (i) The quantity (in kilograms) of each regulated substance
acquired for application-specific use by conferring application-
specific allowances;
    (ii) The quantity of inventory on June 30 of each regulated
substance for application-specific use held by the Department of
Defense or held under contract by another company for use by the
Department of Defense;
    (iii) The quantity of each regulated substance requested for
mission-critical military end uses in the next calendar year;
    (iv) The broad sectors of use covered by current mission-critical
military end uses in the next calendar year; and
    (v) A description of plans to transition application-specific
use(s) to regulated substances with a lower exchange value or
alternatives to regulated substances, including not-in-kind
substitutes.

Sec. Sec.  84.33-84.35   [Reserved]

Subpart B--[Reserved]

Appendix A to Part 84--[Reserved]

0
4. Add Sec.  84.1 to read as follows:

Sec.  84.1   Purpose and scope.

    (a) The purpose of the regulations in this subpart is to implement
certain provisions of the American Innovation and Manufacturing Act of
2020 (AIM Act), enacted as part of Public Law 116-260. In particular,
the AIM Act imposes limits on the production and consumption of certain
regulated substances, according to a specified schedule, which are
addressed by this subpart. (b) This subpart applies to any person that
produces, transforms, destroys, imports, exports, sells or distributes,
offers for sale or distribution, recycles for fire suppression, or
reclaims a regulated substance and to end users in the six applications
listed in subsection (e)(4)(B)(iv) of the AIM Act.

0
5. Amend Sec.  84.3 by:
0
a. Revising and republishing the definitions of ``Application-specific
allowance'', ``Consumption allowances'', ``Exchange value'',
``Individual shipment'', and ``Non-objection notice'';
0
b. Revising the first sentence of the introductory text to the
definition of ``Production/Produce''; and
0
c. Revising and republishing the definitions of ``Production
allowances'' and ``Regulated substance''.
    The revisions and republications read as follows:

Sec.  84.3  Definitions.

* * * * *
    Application-specific allowance means a limited authorization
granted in accordance with subsection (e)(4)(B)(iv) of the AIM Act for
the production or import of a regulated substance for use in the
specifically identified applications that are listed in that subsection
and in accordance with the restrictions contained at Sec.  84.5(c). An
application-specific allowance does not constitute a property right.
* * * * *
    Consumption allowances means a limited authorization to produce and
import regulated substances; however, consumption allowances may be
used to produce regulated substances only in conjunction with
production allowances. A person's consumption allowances are the total
of the allowances obtained under Sec.  84.11 or Sec.  84.15 as may be
modified under Sec. Sec.  84.17 (availability of additional consumption
allowances), 84.19 (transfer of allowances), and 84.35 (administrative
consequences).
* * * * *
    Exchange value means the value assigned to a regulated substance in
accordance with AIM Act subsections (c) and (e), as applicable, and as
provided in appendix A to this part.
* * * * *
    Individual shipment means the kilograms of a regulated substance
for which a person may make one (1) U.S. Customs entry, as identified
in the non-objection notice obtained from the relevant Agency official
in accordance with Sec.  84.25.
* * * * *
    Non-objection notice means the limited authorization granted by the
relevant Agency official to import a specific individual shipment of a
regulated substance in accordance with Sec.  84.25.
* * * * *
    Production/Produce means the manufacture of a regulated substance
from a raw material or feedstock chemical (but not including the
destruction of a regulated substance by a technology approved by the
Administrator as provided in Sec.  84.29). * * *
* * * * *
    Production allowances means the limited authorization to produce
regulated substances; however, production allowances may be used to
produce regulated substances only in conjunction with consumption
allowances. A person's production allowances are the total of the
allowances obtained under Sec.  84.9 or Sec.  84.15 as may be modified
under Sec. Sec.  84.19 (transfer of allowances) and 84.35
(administrative consequences).
* * * * *
    Regulated substance means a hydrofluorocarbon listed in the table
contained in subsection (c)(1) of the AIM Act and a substance included
as a regulated substance by the Administrator under the authority
granted in subsection (c)(3). A current list of regulated substances
can be found in appendix A to this part.
* * * * *

0
6. Add Sec.  84.5 to read as follows:

Sec.  84.5  Prohibitions relating to regulated substances.

    (a) Production. (1) As of January 1, 2022, no person may produce
regulated substances, intentionally or unintentionally, in excess of
the quantity of unexpended production allowances and consumption
allowances or unexpended application-specific allowances held by that
person under the authority of this subpart at that time in that control
period. Every kilogram of production in excess of allowances expended
constitutes a separate violation of this subpart. The required amount
of allowances that must be expended will be calculated to the tenth
with a minimum expenditure of 0.1 allowances for any production of
regulated substances.
    (2) As of January 1, 2022, no person may expend production
allowances to produce a quantity of regulated substances unless that
person expends an equal quantity of consumption allowances at the same
time.
    (3) A person is not required to expend production, consumption, or
application-specific allowances to produce regulated substances if the
regulated substances are destroyed using a technology approved by the
Administrator for destruction under Sec.  84.29 within 30 days of
generating the regulated substance if the destruction technology is
located at the facility where production occurred or 120 days

of generating the regulated substance if the destruction technology is
not located at the facility where production occurred.
    (4) No person may expend production or consumption allowances for
generation of HFC-23 that is emitted at the same facility as where it
is produced. Consistent with this prohibition, prior to the emissions
standard compliance date established in Sec.  84.27, neither production
nor consumption allowances are required for HFC-23 emitted at the same
facility as where it is produced.
    (b) Import. This paragraph applies starting January 1, 2022.
    (1) No person may import bulk regulated substances, except:
    (i) By expending, at the time of the import, consumption or
application-specific allowances in a quantity equal to the exchange-
value weighted equivalent of the regulated substances imported, with
the required amount of allowances calculated to the tenth, but a
minimum expenditure of 0.1 allowances is required for any import of
regulated substances;
    (ii) After receipt of a non-objection notice for substances for use
in a process resulting in their transformation or their destruction in
accordance with Sec.  84.25(a);
    (iii) After receipt of a non-objection notice for used regulated
substances imported for destruction in accordance with Sec.  84.25(b);
or
    (iv) As a transhipment in accordance with Sec.  84.31(c)(3) if all
transhipped regulated substance is exported from the United States
within six months of its import.
    (2) Each person meeting the definition of importer for a particular
regulated substance import transaction is jointly and severally liable
for a violation of paragraph (b)(1) of this section, unless they can
demonstrate that another party who meets the definition of an importer
met one of the exceptions set forth in paragraph (b)(1).
    (3) Imports authorized under paragraph (b)(1)(ii) of this section
may not be in containers designed to hold 100 pounds or less of a
regulated substance.
    (4) A person issued a non-objection notice for the import of an
individual shipment of regulated substances under paragraph (b)(1)(ii)
or (iii) of this section may not transfer or confer the right to
import.
    (5) No person may introduce into U.S. commerce any regulated
substance claimed as a transhipment.
    (6) Every kilogram of bulk regulated substances imported contrary
to this paragraph (b) constitutes a separate violation of this subpart.
Import of less than one kilogram of bulk regulated substance contrary
to this paragraph (b) constitutes a separate violation of this subpart.
    (c) Application-specific uses. (1) As of January 1, 2022, no person
may confer application-specific allowances for the production or import
of a regulated substance in excess of the amount of unexpended
application-specific allowances held by that person under the authority
of this subpart at that time in that control period. No person may
expend an application-specific allowance for regulated substances to be
used in any application other than the one identified by the
application-specific allowance expended. Every kilogram of production
or import in excess of the application-specific allowances expended by
the producer or importer constitutes a separate violation of this
subpart. Production or import of less than one kilogram of regulated
substance in excess of the application-specific allowances expended by
the producer or importer constitutes a separate violation of this
subpart.
    (2) No person may use a regulated substance produced or imported by
expending application-specific allowances for any purpose other than
those for which the application-specific allowance was allocated, and
as set forth in this paragraph (c). Application-specific allowances are
apportioned to a person under Sec. Sec.  84.13 and 84.15 for the
production or import of regulated substances solely for the individual
application listed on the allowance, which may include:
    (i) A propellant in metered dose inhalers;
    (ii) Defense sprays;
    (iii) Structural composite preformed polyurethane foam for marine
use and trailer use;
    (iv) The etching of semiconductor material or wafers and the
cleaning of chemical vapor deposition chambers within the semiconductor
manufacturing sector;
    (v) Mission-critical military end uses, such as armored vehicle
engine and shipboard fire suppression systems and systems used in
deployable and expeditionary applications; and
    (vi) On board aerospace fire suppression.
    (3) This provision applies starting January 1, 2022.
    (i) No person may acquire application-specific allowances unless
for use in the same application as associated with the application-
specific allowance. No person may transfer or confer application-
specific allowances unless for use in the same application as
associated with the application-specific allowance.
    (ii) No person may acquire or sell regulated substances produced or
imported using application-specific allowances for use in anything
other than the application for which it was originally allocated. Every
kilogram of a regulated substance imported or exported in contravention
of this paragraph constitutes a separate violation of this subpart.
Import or export of less than one kilogram of regulated substance in
contravention of this paragraph constitutes a separate violation of
this subpart.
    (d) Calendar-year allowances. All production, consumption, and
application-specific allowances are valid only for the calendar year
for which they are allocated (i.e., January 1 through December 31). No
person may expend, transfer, or confer a production, consumption, or
application-specific allowance after December 31 of the year for which
it was issued.
    (e) International transfers. This paragraph applies starting
January 1, 2022. (1) No person subject to the requirements of this
subpart may transfer a production allowance to a person in a foreign
country unless that country has established the same or similar
requirements or otherwise undertaken commitments regarding the
production and consumption of regulated substances as are contained in
the AIM Act, as determined by the relevant agency official.
    (2) No person may transfer production allowances to or from a
person in a foreign country without satisfying the requirements in
Sec.  84.19. Every production allowance transferred in contravention of
this paragraph constitutes a separate violation of this subpart.
    (f) Sale and distribution. No person may sell or distribute, or
offer for sale or distribution, any regulated substance that was
produced or imported in violation of paragraphs (a) through (d) of this
section, except for such actions needed to re-export the regulated
substance. Every kilogram of a regulated substance sold or distributed,
or offered for sale or distribution, in contravention of this paragraph
constitutes a separate violation of this subpart. Sale or distribution,
or offer for sale or distribution, of less than one kilogram of
regulated substance in contravention of this paragraph constitutes a
separate violation of this subpart.
    (g) False information. No person may provide false, inaccurate, or
misleading information to the EPA when petitioning, reporting, or for
any

communication required under this subpart.
    (h) Disposable cylinders. (1) As of July 1, 2025, no person may
import or domestically fill a regulated substance in a non-refillable
cylinder.
    (2) As of January 1, 2027, no person may sell or distribute, or
offer for sale or distribution regulated substances contained in a non-
refillable cylinder.
    (3) Small cans containing less than two pounds of regulated
substances that have a self-sealing valve that meets the requirements
in 40 CFR 82.154(c)(2) are not subject to this restriction.
    (i) Labeling. (1) As of January 1, 2022, no person may sell or
distribute, offer for sale or distribution, or import containers
containing a regulated substance that lacks a label or other permanent
markings stating the common name(s), chemical name(s), or ASHRAE
designation of the regulated substance(s) or blend contained within,
and the percentages of the regulated substances if a blend.
    (2) No person other than the importer may repackage regulated
substances that were initially unlabeled or mislabeled. In order to
repackage the regulated substances, the importer must either:
    (i) Expend consumption allowances equal to the amount of allowances
that would be required if each cylinder were full of HFC-23; or
    (ii) Verify the contents with independent laboratory testing
results and affix a correct label on the container that matches the
lab-verified test results before the date of importation (consistent
with the definition at 19 CFR 101.1) of the container.
    (3)(i) No person producing, importing, reclaiming, recycling for
fire suppression, or repackaging regulated substances may sell or
distribute, or offer for sale or distribution, regulated substances
without first testing a representative sample of the regulated
substances that they are producing, importing, reclaiming, recycling
for fire suppression, or repackaging to verify that the composition of
the regulated substance(s) matches the container labeling. For
regulated substances sold or distributed or offered for sale and
distribution as refrigerants, sampling must be done consistent with
appendix A to 40 CFR part 82, subpart F--Specifications for
Refrigerants.
    (ii) No person may sell or distribute, or offer for sale or
distribution, regulated substances as a refrigerant that do not meet
the specifications in appendix A to 40 CFR part 82, subpart F--
Specifications for Refrigerants.
    (j) Relationship to other laws. Section (k) of the AIM Act states
that sections 113, 114, 304, and 307 of the Clean Air Act (42 U.S.C.
7413, 7414, 7604, 7607) shall apply to this section and any rule,
rulemaking, or regulation promulgated by the Administrator pursuant to
this section as though this section were expressly included in title VI
of that Act (42 U.S.C. 7671 et seq.). Violation of this part is subject
to Federal enforcement and the penalties laid out in section 113 of the
Clean Air Act.

Sec.  84.13   [Amended]

0
7. In Sec.  84.13, in the first sentence in paragraph (h), remove the
text ``to be determined'' and add in its place the text ``in Sec.
84.19''.

0
8. Add Sec. Sec.  84.17, 84.19, 84.21, 84.23, 84.25, 84.27, and 84.29
to read as follows:
* * * * *
Sec.
84.17 Availability of additional consumption allowances.
84.19 Transfers of allowances.
84.21 Sale or conveyance of regulated substances produced or
imported with application-specific allowances.
84.23 Certification identification generation and tracking.
84.25 Required processes to import regulated substances as
feedstocks or for destruction.
84.27 Controlling emissions of HFC-23.
84.29 Destruction of regulated substances.
* * * * *

Sec.  84.17   Availability of additional consumption allowances.

    A person may obtain at any time during the year, in accordance with
the provisions of this section, consumption allowances equivalent to
the quantity of regulated substances that the person exported from the
United States and its territories to a foreign country in accordance
with this section.
    (a) The exporter must submit to the relevant Agency official a
request for consumption allowances setting forth the following:
    (1) The identities and addresses of the exporter and the recipient
of the exports;
    (2) The exporter's Employer Identification Number;
    (3) The names, telephone numbers, and email addresses of contact
persons for the exporter and the recipient;
    (4) The quantity (in kilograms) and name of the regulated
substances exported;
    (5) The source of the regulated substances and the date purchased;
    (6) The date on which, and the port from which, the regulated
substances were exported from the United States or its territories;
    (7) The country to which the regulated substances were exported;
    (8) A copy of the bill of lading and the invoice indicating the net
quantity (in kilograms) of regulated substances shipped and documenting
the sale of the regulated substances to the purchaser; and
    (9) The Harmonized Tariff Schedule codes of the regulated
substances exported.
    (b) The relevant Agency official will review the information and
documentation submitted under paragraph (a) of this section and will
issue a notice to the requestor within 15 working days.
    (1) The relevant Agency official will determine the quantity of
regulated substances that the documentation verifies was exported and
issue consumption allowances equivalent to the quantity of regulated
substances that were exported.
    (i) The grant of the consumption allowances will be effective on
the date the notice is issued.
    (ii) The consumption allowances will be granted to the person the
exporter indicates, whether it is the producer, the importer, or the
exporter.
    (iii) The consumption allowances will be valid until December 31 of
the same calendar year in which the regulated substances were exported.
    (2) The relevant Agency official will issue a notice that the
consumption allowances are not granted if the official determines that
the information and documentation do not satisfactorily substantiate
the exporter's claims.

 Sec.  84.19  Transfers of allowances.

    (a) Inter-company transfers. As of January 1, 2022, a person
(``transferor'') may transfer to any other person (``transferee'') any
quantity of the transferor's production allowances, consumption
allowances, or application-specific allowances for use by the same type
of application, as long as the following conditions are met:
    (1) An offset equal to five percent of the amount of allowances
transferred will be deducted from the transferor's production allowance
balance if a transfer is made of production allowances, or deducted
from the transferor's consumption allowance balance if a transfer is
made of consumption allowances. In the case of transferring
application-specific allowances, one percent of the amount of
allowances transferred will be deducted from the transferor's
application-specific allowance balance.
    (2) The transferor must submit to the relevant Agency official a
transfer claim setting forth the following:
    (i) The identities and addresses of the transferor and the
transferee;

    (ii) The names, telephone numbers, and email addresses of contact
persons for the transferor and the transferee;
    (iii) The type of allowances being transferred, including the
specific application (if applicable), for which allowances are to be
transferred;
    (iv) The quantity (in MTEVe) of allowances being transferred;
    (v) The total cost of the allowances transferred;
    (vi) The amount of unexpended allowances of the type and for the
year being transferred that the transferor holds under authority of
this subpart as of the date the claim is submitted to EPA;
    (vii) The quantity of the offset to be deducted from the
transferor's allowance balance; and
    (viii) For transfers of application-specific allowances, a signed
document from the transferee certifying that the transferee will use
the application-specific allowances only for the same application for
which the application-specific allowance was allocated.
    (3) The relevant Agency official will determine whether the records
maintained by EPA indicate that the transferor possesses unexpended
allowances sufficient to cover the transfer claim as of the date the
transfer claim is processed. The transfer claim is the quantity in EVe
to be transferred plus the quantity of the offset. The relevant Agency
official will take into account any previous transfers, any production,
and allowable imports and exports of regulated substances reported by
the transferor. Within three working days of receiving a complete
transfer claim, the relevant Agency official will take action to notify
the transferor and transferee as follows:
    (i) The relevant Agency official will issue a non-objection notice
to both the transferor and transferee indicating if EPA's records show
that the transferor has sufficient unexpended allowances to cover the
transfer claim. In the case of transfers of production allowances or
consumption allowances, the relevant agency official will reduce the
transferor's balance of unexpended allowances by the quantity to be
transferred plus five percent of that quantity. In the case of
transfers of application-specific allowances the relevant agency
official will reduce the transferor's balance of unexpended allowances
by the quantity to be transferred plus one percent of that quantity.
The transferor and the transferee may proceed with the transfer when
the relevant agency official issues a non-objection notice. However, if
EPA ultimately finds that the transferor did not have sufficient
unexpended allowances to cover the claim, the transferor and transferee
will be liable for any violations of the regulations of this subpart
that occur as a result of, or in conjunction with, the improper
transfer.
    (ii) The relevant Agency official will issue an objection notice
disallowing the transfer if EPA's records show that the transferor has
insufficient unexpended allowances to cover the transfer claim, that
the transferor has failed to respond to one or more Agency requests to
supply information needed to make a determination, or that the
transferor or transferee has been notified of an impending
administrative consequence and therefore is disallowed from
transferring allowances in accordance with Sec.  84.35. Either
transferor or transferee may file a notice of appeal, with supporting
reasons, with the relevant Agency official within 10 working days after
receipt of the objection notice. The official may affirm or vacate the
disallowance. If no appeal is filed electronically by the tenth working
day after notification, the disallowance shall be final on that day.
    (4) The transferer and transferee must maintain a copy of the
transfer claim and a copy of EPA's non-objection or objection notice
for five years.
    (b) International transfers of production allowances--(1) Requests.
A person may request to increase or decrease their production
allowances for a specified control period through transfers of such
allowances with a person in a foreign country if the applicable
conditions in this paragraph are met. Once transferred, all allowances
transferred consistent with this paragraph will function as a
production allowance, as defined in Sec.  84.3.
    (i) Timing of requests. Any request for an increase or decrease in
production allowances based on an international transfer under this
paragraph must be submitted by October 1 of the year prior to the
calendar year in which the transferred allowances would be usable.
    (ii) Timing of the transfer. International transfers under this
paragraph will be deemed to occur, and the transferred allowances will
be usable, as of January 1 of the calendar year to which the transfer
applies.
    (2) Transfer from a person in a foreign country--information
requirements. (i) A person requesting to change their production
allowances based on a transfer from a person in a foreign country must
submit to the relevant Agency official at the time the international
transfer is requested a signed document from an official representative
in that country's embassy in the United States stating that the
appropriate authority within that country has revised the domestic
production limits for that country equal to the lowest of the following
three production quantities and identifying which of the following
three production quantities was lowest:
    (A) The maximum production level permitted in Sec.  84.7(b) in the
year of the international transfer minus the quantity of production
allowances (in exchange value-weighted kilograms) to be transferred;
    (B) The maximum production level for the applicable regulated
substances that are allowed under applicable law (including the foreign
country's applicable domestic law) minus the quantity of production
allowances (in exchange value-weighted kilograms) to be transferred; or
    (C) The average of the foreign country's actual national production
level of the applicable regulated substances for the three calendar
years prior to the year of the transfer minus the quantity of
production allowances (in exchange value-weighted kilograms) to be
transferred.
    (ii) A person requesting a revision based on a transfer from a
foreign country (``transferee'') must also submit to the relevant
Agency official a true copy of the document that sets forth the
following:
    (A) The identity and address of the transferee;
    (B) The foreign country authorizing the transfer;
    (C) The names, telephone numbers, and email addresses of contact
persons for the transferee and for the person in the foreign country;
    (D) The name of the chemical and quantity (in kilograms) of
production being transferred;
    (E) Documentation that the foreign country possesses the necessary
quantity of unexpended production rights;
    (F) The calendar year to which the transfer applies; and
    (G) A signed statement from a responsible official describing
whether the increased production is intended for export or the market
in the United States.
    (3) Transfer to a person in a foreign country--Information
requirements. A person requesting a transfer to a person in a foreign
country must submit a request to the relevant Agency official that sets
forth the following information:
    (i) The identity and address of the person seeking to transfer the
allowances (``transferor'');
    (ii) The foreign country authorizing the transfer;

    (iii) The names, telephone numbers, and email addresses of contact
persons for the transferor and for the person in the foreign country;
    (iv) The name of the chemical and quantity (in kilograms) of
allowable production being transferred; and
    (v) The calendar year to which the transfer applies;
    (vi) A signed statement from a responsible official requesting that
the relevant Agency official revise the number of production allowances
the transferor holds such that the aggregate national production in the
United States is equal to the lowest of the following three production
quantities and identifying which of the following three production
quantities was lowest:
    (A) The maximum production level permitted in Sec.  84.7(b) in the
year of the international transfer minus the quantity of production
allowances (in exchange value-weighted kilograms) to be transferred;
    (B) The maximum production for the applicable regulated substances
that are allowed under applicable law minus the quantity of production
allowances (in exchange value-weighted kilograms) to be transferred; or
    (C) The average of the United States' actual national production
level of the applicable regulated substances for the three calendar
years prior to the year of the transfer minus the quantity of
production allowances (in exchange value-weighted kilograms) to be
transferred.
    (4) Review of international transfer request to a foreign country.
After receiving a transfer request that meets the requirements of
paragraph (b)(3) of this section, the relevant Agency official may, at
his/her discretion, consider the following factors in deciding whether
to approve such a transfer:
    (i) Possible economic hardships created by a transfer;
    (ii) Potential effects on trade;
    (iii) Potential environmental implications; and
    (iv) The total quantity of unexpended production allowances held by
entities in the United States.
    (5) Notice of transfer. The relevant Agency official will review
the submitted requests to determine whether the foreign country in
which the person is located has enacted or otherwise established the
same or similar requirements or otherwise undertaken commitments
regarding the production and consumption of regulated substances as are
contained in the AIM Act, within a reasonable time frame of the date of
its enactment. If it is determined that these conditions are not met,
the relevant Agency official will notify the requestor in writing that
no transfers to or from the country can occur. If these conditions are
satisfied such that transfers to or from the country can occur, the
relevant Agency official will consider if the request meets the
applicable requirements of paragraph (b) of this section. If the
request meets the requirements of paragraph (b)(2) of this section for
transfers from foreign countries and paragraph (b)(3) of this section
for transfers to foreign countries, and if the relevant Agency official
has not decided to disapprove the request based on consideration of
factors listed in paragraph (b)(4) of this section if applicable, the
relevant Agency official will notify the person in writing that the
appropriate production allowances were either granted or deducted and
specify the control period to which the transfer applies. Notifications
of production allowances granted or deducted will be provided before
January 1 of the calendar year to which the transfer applies.
    (i) For transfers from a foreign country, such notification will
reflect a revision of the balance of allowances held by the recipient
of the transfer to equal the unexpended production allowances held by
the recipient of the transfer plus the quantity of allowable production
transferred from the foreign country minus an offset of five percent of
the quantity transferred. The relevant Agency official will not adjust
available allowances until the foreign country's representative has
confirmed the appropriate number of allowances were deducted in the
foreign country.
    (ii) For transfers to a foreign country, such notification will
reflect a revision of the balance of production allowances for the
transferor such that the aggregate national production of the regulated
substance to be transferred is equal to the value the relevant Agency
official determines to be the lowest of:
    (A) The maximum production level permitted in Sec.  84.7(b) in the
year of the international transfer minus the quantity of production
allowances transferred and minus an offset of five percent of the
quantity transferred; or
    (B) The maximum production level for the applicable regulated
substances that is allowed under applicable law (in exchange-value
weighted kilograms) minus the quantity of production allowances
transferred and minus an offset of five percent of the quantity
transferred; or
    (C) The average of the actual annual U.S. production of the
applicable regulated substances for the three years prior to the date
of the transfer (in exchange-value weighted kilograms minus the
quantity of production allowances transferred and minus an offset of
five percent of the quantity transferred).
    (6) Revised production limit for previous transferors. If the
average actual U.S. production during the three most recent calendar
years before the date of the transfer is less than the total allowable
U.S. production for the applicable regulated substances permitted in
Sec.  84.7(b) for a calendar year for which international transfers are
approved to occur, the aggregate allowed national U.S. production of
those substances will be reduced by an additional amount beyond a
simple deduction of the number of allowances reflected in the
notifications under paragraph (b)(5)(ii)(B) of this section. In these
circumstances, the relevant Agency official will revise the production
limit for each transferor who obtained approval of a transfer of the
applicable regulated substances to a foreign country in the same
calendar year and notify each transferor of the revision in writing.
The amount of the revision will equal the result of the following set
of calculations:
    (i) The total U.S. allowable production of the applicable regulated
substances minus the average of the actual annual U.S. production of
those substances during the three most recent calendar years prior to
the calendar year of the transfer.
    (ii) The quantity of production allowances for the applicable
regulated substances transferred by the transferor in that calendar
year divided by the total quantity of production allowances for those
substances approved for transfer to a person in a foreign country by
all the persons approved to make such transfers in that calendar year.
    (iii) The result of paragraph (b)(6)(i) of this section multiplied
by the result of paragraph (b)(6)(ii) of this section.
    (iv) The unexpended production allowances held by the person minus
the result of paragraph (b)(6)(iii) of this section.
    (7) Effective date of revised production limits. If a revision is
issued under paragraph (b)(6) of this section, the change in production
allowances will be effective on the date that the notification is
issued.

Sec.  84.21  Sale or conveyance of regulated substances produced or
imported with application-specific allowances.

    (a) Sale or conveyance of regulated substances produced or imported
using application-specific allowances. (1) As of January 1, 2022, any
person receiving an application-specific allowance (application-
specific seller) may sell or

convey regulated substances produced or imported by expending that
allowance to another person within the same application (application-
specific purchaser) provided that the relevant Agency official approves
the sale or conveyance.
    (2) The application-specific seller must submit a claim to the
relevant Agency official for approval before the sale or conveyance can
take place. The claim must set forth the following:
    (i) The identities and addresses of the application-specific seller
and the application-specific purchaser;
    (ii) The name, telephone numbers, and email addresses of contact
persons for the application-specific seller and the application-
specific purchaser;
    (iii) The amount of each regulated substance being sold or
conveyed;
    (iv) The cost of the regulated substance being sold or conveyed;
    (v) The application for which allowances were allocated and the
specific products that the application-specific purchaser plans to
produce with the regulated substances; and
    (vi) Certification that the regulated substances will be used only
for the same application for which the application-specific allowance
under which the substances were produced or imported was allocated.
    (3) The application-specific purchaser must submit a letter to the
relevant Agency official stating that it concurs with the terms of the
sale or conveyance as requested by the application-specific seller.
    (4) Once the claim is complete, and if EPA does not object to the
sale or conveyance, the relevant agency official will issue letters to
the application-specific seller and the application-specific purchaser
within 10 business days indicating that the transaction may proceed.
EPA reserves the right to disallow a transaction if the claim is
incomplete, or if it has reason to believe that the application-
specific purchaser plans use the regulated substance in anything other
than the stated application. If EPA objects to the transaction, the
relevant agency official will issue letters to the application-specific
seller and the application-specific purchaser stating the basis for
disallowing the transaction.
    (5) The burden of proof is placed on the application-specific
purchaser to retain sufficient records to prove that the sold or
conveyed regulated substances are used only for the stated application.
    (b) [Reserved].

Sec.  84.23  Certification identification generation and tracking.

    (a) Scope and applicability. Certification identifications may only
be generated by a person that produces, imports, reclaims, recycles for
fire suppression use, repackages, or blends regulated substance for
distribution or sale in bulk and reports to EPA consistent with
paragraph (d) of this section. All containers of bulk regulated
substance, with the limited exceptions described in paragraph (b)(4) of
this section, must be associated with certification identifications on
the following schedule:
    (1) As of January 1, 2025, all containers of bulk regulated
substances imported and all containers sold or distributed by producers
and importers must have a QR code.
    (2) As of January 1, 2026, all containers of bulk regulated
substances filled and all containers sold or distributed by all other
repackagers and cylinder fillers in the United States not included in
paragraph (a)(1) of this section, including reclaimers and fire
suppressant recyclers must have a QR code.
    (3) As of January 1, 2027, every container of bulk regulated
substances sold or distributed, offered for sale or distribution,
purchased or received, or attempted to be purchased or received must
have a QR code.
    (b) Prohibitions. Every kilogram of bulk regulated substances
imported, sold or distributed, offered for sale or distribution,
purchased or received, or attempted to be purchased or received in
violation of this section is a separate violation of this subpart.
Import, sale or distribution, offer for sale or distribution, purchase
or receipt, or attempt to purchase or receive less than one kilogram of
regulated substances in violation of this section is a separate
violation of this subpart.
    (1) No person may import, sell or distribute, or offer for sale or
distribution, and no person may purchase or receive, or attempt to
purchase or receive, a bulk regulated substance unless the container
has a valid certification identification.
    (2) No person may import, sell or distribute, or offer for sale or
distribution, bulk regulated substances unless that person is
registered with EPA consistent with paragraph (d) of this section.
    (3) No person may purchase or receive, or attempt to purchase or
receive, bulk regulated substances from a person that is not registered
with EPA consistent with paragraph (d) of this section;
    (4) The following situations are exempt from the prohibitions in
paragraphs (b)(1) through (3) of this section:
    (i) The regulated substances are part of a transhipment and the
person transhipping the regulated substance has reported to EPA
consistent with Sec.  84.31(c)(3);
    (ii) The regulated substances were previously used, have been
recovered from a piece of equipment, and are intended for reclamation
or fire suppressant recycling and:
    (A) The person selling or distributing the regulated substances
certifies in writing to the person purchasing or receiving the
regulated substances that they were recovered from a piece of equipment
and provides the date of recovery; and
    (B) The person purchasing or receiving the regulated substances is
an EPA-certified reclaimer, a registered fire suppressant recycler
consistent with paragraph (d) of this section, or a registered supplier
of regulated substances consistent with paragraph (d).
    (iii) The regulated substances were imported consistent with the
petition process described in Sec.  84.25;
    (iv) The regulated substances were collected for destruction and
sent to a destruction facility directly or through an aggregator that
is reporting to EPA consistent with Sec.  84.31(c)(5); or
    (v) The regulated substances were recovered from a motor vehicle
air conditioner (MVAC) or MVAC-like appliance in accordance with 40 CFR
part 82, subpart B and are sold or distributed or offered for sale or
distribution by the same person who recovered the regulated substances
for use only in MVAC equipment or MVAC-like appliances.
    (5) No producer or importer may request certification
identifications that would exceed their currently available allowances.
    (6) A person who reclaims regulated substances or recycles
regulated substances for fire suppression uses may request
certification identifications at a level equal to their reported
reclamation or recycling for the prior year plus an amount based on the
average annual growth in total U.S. reclamation of regulated substances
in the prior three years or 10 percent, whichever is higher. If further
certification identifications are needed, the reclaimer or recycler
must notify EPA 45 days in advance of exceeding their allowed level and
request approval to generate additional certification identifications.
The request must estimate the additional certification identifications
needed for

the next six months and provide an explanation for the increased level
of reclamation or recycling. The relevant agency official will review
the request and adjust the amount of certification identifications for
the person as appropriate within 21 days. Additional requests can be
submitted throughout the year as needed.
    (7) No regulated substance repackager or blender may request
certificate identifications unless they have allowances. They may
generate QR codes based on the certification identifications associated
with the containers they acquire.
    (c) Required Practices. The following practices are required,
unless the person purchasing or receiving the bulk regulated substance
is listed in paragraph (b)(4) of this section:
    (1) Any person producing, importing, reclaiming, recycling for fire
suppression uses, repackaging, selling or distributing, or offering to
sell or distribute bulk regulated substances must register with EPA
consistent with paragraph (d) of this section.
    (2) Any person who imports, sells or distributes, or offers for
sale or distribution a container of regulated substance, reclaimed
regulated substance, or recycled regulated substances for fire
suppression uses must permanently affix a QR code to the container that
documents a valid certification identification using the standards
defined by EPA prior to the import, sale or distribution, or offer for
sale or distribution of the container. For the purposes of this
subpart, examples of when a container of regulated substance or
reclaimed regulated substance is imported, sold or distributed, or
offered for sale or distribution include the date of importation
(consistent with 19 CFR 101.1) and departure from a production,
reclamation, fire suppressant recycling, repackaging or filling
facility.
    (3) At the time of sale or distribution or offer for sale or
distribution, a person selling or distributing or offering for sale or
distribution a container of regulated substance must ensure there is a
valid and legible certification identification on each container of
regulated substance, scan the certification identification system to
identify a transaction, identify the person receiving the regulated
substance, and indicate whether the person receiving the regulated
substance is a supplier or final customer.
    (4) At the time of sale or distribution, a person taking ownership
of a container of regulated substance that is a registered supplier
must ensure there is a valid and legible certification identification
on each container of regulated substance and scan the certification
identification in the certification identification system to identify a
transaction.
    (d) Recordkeeping and Reporting--(1) Importers. Any person
importing a container of bulk regulated substance must enter the
following information in the certification identification system to
generate a QR code and associated certification identification for each
container of regulated substance imported: the name or brand the
regulated substance is being sold and/or marketed under, the date it
was imported, the unique serial number associated with the container,
the amount and name of the regulated substance(s) in the container, the
name, address, contact person, email address, and phone number of the
responsible party at the facility where the container of regulated
substance(s) was filled, and certification that the contents of the
cylinder match the substance(s) identified on the label.
    (2) Reclaimers. Any person filling a container with a reclaimed
regulated substance must enter the following information in the
certification identification system to generate a QR code and
associated certification identification for each container of regulated
substance sold or distributed or offered for sale or distribution: the
name or brand the regulated substance is being sold and/or marketed
under, when the regulated substance was reclaimed and by whom, the date
the reclaimed regulated substance was put into a container, the unique
serial number associated with the container, the amount and name of the
regulated substance(s) in the container, and certification that the
purity of the batch was confirmed to meet the specifications in
appendix A to 40 CFR part 82, subpart F. If a container is filled with
reclaimed and virgin regulated substance(s), the reclaimer must provide
the amount of virgin regulated substance included in the container and
the certification identification(s) associated with that regulated
substance.
    (3) Fire suppressant recyclers. Any person filling a container with
a recycled regulated substance for fire suppression purposes must enter
the following information in the certification identification system to
generate a QR code and associated certification identification for each
container of regulated substance sold or distributed or offered for
sale or distribution: the name or brand the regulated substance is
being sold and/or marketed under, the date the container was filled and
by whom, the unique serial number associated with the container, and
the amount and name of the regulated substance(s) in the container. If
a container is filled with recycled and virgin regulated substance(s),
the recycler must provide the amount of virgin regulated substance
included in the container and the certification identification(s)
associated with that regulated substance.
    (4) Producers and repackagers. Anyone who is filling a container,
whether for the first time after production or when transferring
regulated substances from one container to one or more smaller or
larger containers, must enter information in the certification
identification system and generate a QR code for the container(s) of
packaged regulated substances sold or distributed or offered for sale
or distribution: the name or brand the regulated substance is being
sold and/or marketed under, the date the container was filled and by
whom, the certification identification(s) associated with the regulated
substance being packaged, the unique serial number associated with the
container, the amount and name of the regulated substance(s) in the
container, the quantity of containers it was packaged in, the size of
the containers, and the name, address, contact person, email address,
and phone number of the responsible party at the facility where the
container(s) were filled.
    (5) Receiving recovered regulated substances. Any person receiving
recovered regulated substances for purposes of reclamation or fire
suppressant recycling must keep a copy of the written certification
required under paragraph (b)(4)(ii) of this section for five years.
    (6) Certification identification generators registration. Any
person who produces, imports, reclaims, recycles for fire suppression
uses, repackages or fills a container of regulated substances,
reclaimed regulated substances, or recycled regulated substances for
fire suppression uses must register with EPA in the certification
identification system at least six months before the date they are
subject to the requirement in paragraph (a) of this section. The report
must contain the name and address of the company, contact information
for the owner of the company, the date(s) of and State(s) in which the
company is incorporated and State license identifier(s), the address of
each facility that sells or distributes or offers for sale or
distribution regulated substances, how the company introduces bulk
regulated substances

into U.S. commerce, and the categories of final customers the entity
sells or distributes regulated substances to. If any of the
registration information changes, these reports must be updated and
resubmitted within 60 days of the change.
    (7) Supplier registration. Any person who sells, distributes, or
offers for sale or distribution, bulk regulated substances must
register with EPA in the certification identification system at least
six months before the date they are subject to the requirement in
paragraph (a) of this section. The report must contain the name and
address of the company, contact information for the owner of the
company, the date(s) of and State(s) in which the company is
incorporated and State license identifier(s), the address of each
facility that sells or distributes regulated substances, and the
categories of final customers the supplier sells or distributes
regulated substances to. If any of the registration information
changes, these reports must be updated and resubmitted within 60 days
of the change.

Sec.  84.25  Required processes to import regulated substances as
feedstocks or for destruction.

    (a)(1) Petition to import regulated substances for use in a process
resulting in transformation or destruction. A person must petition the
relevant Agency official for the import of each individual shipment of
a regulated substance imported for use in a process resulting in
transformation or destruction in order to not expend allowances. A
petition is required at least 30 days before the shipment is to arrive
at a U.S. port, and must contain the following information:
    (i) Name, Harmonized Tariff Schedule code, and quantity in
kilograms of each regulated substance to be imported;
    (ii) Name and address of the importer, the importer ID number, and
the contact person's name, email address, and phone number;
    (iii) Name and address of the consignee and the contact person's
name, email address, and phone number;
    (iv) Source country;
    (v) The U.S. port of entry for the import, the expected date of
import, and the vessel transporting the material. If at the time of
submitting the petition the importer does not know this information,
and the importer receives a non-objection notice for the individual
shipment in the petition, the importer is required to notify the
relevant Agency official of this information prior to the date of
importation of the individual shipment into the United States;
    (vi) Name and address of any intermediary, including a contact
person's name, email address and phone number, who will hold the
material before the regulated substances are transformed or destroyed;
    (vii) Name, address, contact person, email address, and phone
number of the responsible party at the facility where the regulated
substance will be used in a process resulting in the substance's
transformation or destruction;
    (viii) An English translation, if needed, of the export license,
application for an export license, or official communication
acknowledging the export from the appropriate government agency in the
country of export;
    (ix) The capacity of the container; and
    (x) The unique identification number of the container used to
transport the regulated substances as part of the petition.
    (2) Review of petition to import for use in a process resulting in
transformation or destruction. (i) The relevant Agency official will
initiate a review of the information submitted under paragraph (a)(1)
of this section and take action within 21 days to issue either an
objection notice or a non-objection notice for the individual shipment
to the person who submitted the petition.
    (ii) The relevant Agency official may issue an objection notice to
a petition for the following reasons:
    (A) If the relevant Agency official determines that the information
is insufficient; that is, if the petition lacks or appears to lack any
of the information required under paragraph (a)(1) of this section or
other information that may be requested during the review of the
petition necessary to verify that the regulated substance is for use in
a process resulting in transformation or destruction;
    (B) If the relevant Agency official determines that any portion of
the petition contains false, inaccurate, or misleading information, or
the official has information from other U.S. or foreign government
agencies indicating that the petition contains false, inaccurate, or
misleading information.
    (iii) Within 10 working days after receipt of an objection notice
with the basis being ``insufficient information,'' the importer may re-
petition the relevant Agency official. If no re-petition is taken by
the tenth working day after the date on the objection notice, the
objection shall become final. Only one re-petition will be accepted for
any petition received by EPA.
    (iv) Any information contained in the re-petition which is
inconsistent with the original petition must be identified and a
description of the reason for the inconsistency must accompany the re-
petition.
    (v) In cases where the relevant Agency official does not object to
the petition, the official will issue a non-objection notice.
    (vi) If, following EPA's issuance of a non-objection notice, new
information is brought to EPA's attention which shows that the non-
objection notice was issued based on false, inaccurate, or misleading
information, then EPA has the right to:
    (A) Revoke and void the non-objection notice from the approval
date;
    (B) Pursue all means to ensure that the regulated substance is not
imported into the United States; and
    (C) Take appropriate enforcement and apply administrative
consequences.
    (3) Timing. (i) An individual shipment authorized through a non-
objection notice must be used in the process resulting in its
transformation within one year of import.
    (ii) An individual shipment authorized through a non-objection
notice must be used in the process resulting in its destruction within
120 days of import.
    (4)  Quantity. An individual shipment authorized through a non-
objection notice may not exceed the quantity (in MTEVe) of the
regulated substance stated in the non-objection notice.
    (b)(1) Petition to import used regulated substances for disposal by
destruction. A person must petition the relevant Agency official for
the import of each individual shipment of a used regulated substance
imported for purposes of destruction in order to not expend allowances.
A petition is required at least 30 working days before the shipment is
to leave the foreign port of export, and contain the following
information:
    (i) Name, Harmonized Tariff Schedule code, and quantity in
kilograms of each regulated substance to be imported;
    (ii) Name and address of the importer, the importer ID number, and
the contact person's name, email address, and phone number;
    (iii) Name and address of the consignee and the contact person's
name, email address, and phone number;
    (iv) Name and address of any intermediary who will hold regulated
substances imported for destruction, and the contact person's name,
email address, and phone number;
    (v) Source country;

    (vi) An English translation, if needed, of the export license (or
application for an export license) from the appropriate government
agency in the country of export;
    (vii) The U.S. port of entry for the import, the expected date of
import, and the vessel transporting the material. If at the time of
submitting the petition the importer does not know this information,
and the importer receives a non-objection notice for the individual
shipment in the petition, the importer is required to notify the
relevant Agency official of this information prior to the entry of the
individual shipment into the United States; and
    (viii) Name, address, contact person, email address, and phone
number of the responsible party at the destruction facility.
    (2) Review of petition to import for destruction. (i) The relevant
Agency official will initiate a review of the information submitted
under paragraph (b)(1) of this section and take action within 30
working days to issue either an objection notice or a non-objection
notice for the individual shipment to the person who submitted the
petition.
    (ii) The relevant Agency official may issue an objection notice to
a petition for the following reasons:
    (A) If the relevant Agency official determines that the information
is insufficient; that is, if the petition lacks or appears to lack any
of the information required under paragraph (b)(1) of this section or
other information that may be requested during the review of the
petition necessary to verify that the regulated substance is used;
    (B) If the relevant Agency official determines that any portion of
the petition contains false, inaccurate, or misleading information, or
the relevant Agency official has information from other U.S. or foreign
government agencies indicating that the petition contains false,
inaccurate, or misleading information;
    (C) If allowing the import of the used regulated substance would
run counter to government restrictions from either the country of
recovery or export regarding regulated substances;
    (D) If destruction capacity is installed or is being installed for
that specific regulated substance in the country of recovery or country
of export and the capacity is funded in full or in part through the
Multilateral Fund to the Montreal Protocol.
    (iii) Within 10 working days after receipt of an objection notice
with the basis being ``insufficient information,'' the importer may re-
petition the relevant Agency official. If no re-petition is taken by
the tenth working day after the date on the objection notice, the
objection shall become final. Only one re-petition will be accepted for
any petition received by EPA.
    (iv) Any information contained in the re-petition that is
inconsistent with the original petition must be identified and a
description of the reason for the inconsistency must accompany the re-
petition.
    (v) In cases where the relevant Agency official does not object to
the petition, the official will issue a non-objection notice.
    (vi) If, following EPA's issuance of a non-objection notice, new
information is brought to EPA's attention which shows that the non-
objection notice was issued based on false, inaccurate, or misleading
information, then EPA and the relevant Agency official has the right
to:
    (A) Revoke and void the non-objection notice from the approval
date;
    (B) Pursue all means to ensure that the regulated substance is not
imported into the United States; and
    (C) Take appropriate enforcement and apply administrative
consequences.
    (3) Timing. An individual shipment authorized through a non-
objection notice must be destroyed within 120 days of import.
    (4)  Quantity. An individual shipment authorized through a non-
objection notice may not exceed the quantity (in MTEVe) of the
regulated substance stated in the non-objection notice.
    (5) Proof of destruction. For each individual shipment of a used
regulated substance imported with the intent to destroy that substance
for which EPA issues a non-objection notice, an importer must submit to
the Administrator records indicating that the substance has been
destroyed with their quarterly reports in Sec.  84.31(c)(1).
    (6) Recordkeeping. The person receiving the non-objection notice
from the relevant Agency official for a petition to import used
regulated substances must maintain the following records for five
years:
    (i) A copy of the petition;
    (ii) The EPA non-objection notice;
    (iii) The bill of lading for the import;
    (iv) The U.S. Customs entry number; and
    (v) Records demonstrating that the substance has been destroyed in
accordance with approved technologies in Sec.  84.29.

Sec.  84.27  Controlling emissions of HFC-23.

    (a) No later than October 1, 2022, as compared to the amount of
chemical intentionally produced on a facility line, no more than 0.1
percent of HFC-23 created on the line may be emitted.
    (1) Requests for extension. The producer may submit a request to
the relevant Agency official to request a six-month extension, with a
possibility of one additional six-month extension, to meet the 0.1
percent HCFC-23 limit. No entity may have a compliance date later than
October 1, 2023.
    (2) Timing of request. The extension request must be submitted to
EPA no later than August 1, 2022, for a first-time extension or
February 1, 2023, for a second extension.
    (3) Content of request. The extension request must contain the
following information:
    (i) Name of the facility submitting the request, contact
information for a person at the facility, and the address of the
facility.
    (ii) A description of the specific actions the facility has taken
to improve their HFC-23 control, capture, and destruction; the
facility's plans to meet the 0.1 percent HFC-23 limit including the
expected date by which the equipment will be installed and operating;
and verification that the facility has met all applicable reporting
requirements.
    (4) Review of request. Starting on the first working day following
receipt by the relevant Agency official of a complete request for
extension, the relevant Agency official will initiate review of the
information submitted under paragraph (a)(3) of this section and take
action within 30 working days. Any grant of a compliance deferral by
the relevant Agency official will be made public.
    (b) Captured HFC-23 is permitted to be destroyed at a different
facility than where it is produced. In such instances, HFC-23 emissions
during the transportation to and destruction at the different facility
will be incorporated into calculations of whether the producer meets
the 0.1 percent standard outlined in paragraph (a) of this section.

Sec.  84.29   Destruction of regulated substances.

    (a) The following technologies are approved by the Administrator
for destruction of all regulated substances except for HFC-23:
    (1) Cement kiln;
    (2) Gaseous/fume oxidation;
    (3) Liquid injection incineration;
    (4) Porous thermal reactor;
    (5) Reactor cracking;
    (6) Rotary kiln incineration;
    (7) Argon plasma arc;
    (8) Nitrogen plasma arc;
    (9) Portable plasma arc;
    (10) Chemical reaction with hydrogen and carbon dioxide;
    (11) Gas phase catalytic de-halogenation; and

    (12) Superheated steam reactor.
    (b) The following technologies are approved by the Administrator
for destruction of HFC-23:
    (1) Gaseous/fume oxidation;
    (2) Liquid injection incineration;
    (3) Reactor cracking;
    (4) Rotary kiln incineration;
    (5) Argon plasma arc;
    (6) Nitrogen plasma arc;
    (7) Chemical reaction with hydrogen and carbon dioxide; and
    (8) Superheated steam reactor.

0
9. Amend Sec.  84.31 by adding paragraphs (a) through (g), (h)(1) and
(4) through (7), and (i) through (k) to read as follows:

Sec.  84.31   Recordkeeping and reporting.

    (a) Recordkeeping and reporting. Any person who produces, imports,
exports, transforms, uses as a process agent, destroys, reclaims, or
repackages regulated substances or is receiving application-specific
allowances in the six applications listed in subsection (e)(4)(B)(iv)
of the AIM Act must comply with the following recordkeeping and
reporting requirements:
    (1) Reports required by this section must be submitted within 45
days of the end of the applicable reporting period, unless otherwise
specified.
    (2) Reports, petitions, and any related supporting documents must
be submitted electronically in a format specified by EPA.
    (3) Records and copies of reports required by this section must be
retained for five years.
    (4) Quantities of regulated substances must be stated in terms of
kilograms unless otherwise specified.
    (5) Reports are no longer required if an entity notifies the
Administrator that they have permanently ceased production, import,
export, destruction, transformation, use as a process agent,
reclamation, or packaging of regulated substances, but the entity must
continue to comply with all applicable recordkeeping requirements.
    (b) Producers. Persons (``producers'') who produce regulated
substances must comply with the following recordkeeping and reporting
requirements:
    (1) One-time report. Within 120 days of January 1, 2022, or within
120 days of the date that a producer first produces a regulated
substance, whichever is later, every producer must submit to the
Administrator a report describing:
    (i) The method by which the producer in practice measures daily
quantities of regulated substances produced;
    (ii) Conversion factors by which the daily records as currently
maintained can be converted into kilograms of regulated substances
produced, including any constants or assumptions used in making those
calculations (e.g., tank specifications, ambient temperature or
pressure, density of the regulated substance);
    (iii) Internal accounting procedures for determining plant-wide
production;
    (iv) The quantity of any fugitive losses accounted for in the
production figures;
    (v) A list of any coproducts, byproducts, or emissions from the
production line that are other regulated substances; ozone-depleting
substances listed in 40 CFR part 82, subpart A; or hazardous air
pollutants initially identified in section 112 of the Clean Air Act,
and as revised through rulemaking and codified in 40 CFR part 63;
    (vi) The estimated percent efficiency of the production process for
the regulated substance; and
    (vii) A description of any processes that use a regulated substance
as a process agent. Within 60 days of any change in the measurement
procedures or the information specified in the above report, the
producer must submit a report specifying the changes to the relevant
Agency official.
    (2) Reporting--producers. Within 45 days after the end of each
quarter, each producer of a regulated substance must provide to the
relevant Agency official a report containing the following information
for each facility:
    (i) The quantity (in kilograms) of production of each regulated
substance used in processes resulting in their transformation by the
producer and the quantity (in kilograms) intended for transformation by
a second party;
    (ii) The quantity (in kilograms) of production of each regulated
substance used in processes resulting in their destruction by the
producer and the quantity (in kilograms) intended for destruction by a
second party;
    (iii) The quantity (in kilograms) of production of each regulated
substance used as a process agent by the producer and the quantity (in
kilograms) intended for use as a process agent by a second party;
    (iv) The quantity (in exchange value equivalents) of allowances
expended for each regulated substance and the quantity (in kilograms)
of each regulated substance produced;
    (v) The quantity (in kilograms) of regulated substances sold or
transferred during the quarter to a person other than the producer for
use in processes resulting in their transformation, destruction, or use
as a process agent;
    (vi) The quantity (in kilograms) of regulated substances produced
by the producer that were exported by the producer or by other U.S.
companies to a foreign country that will be transformed or destroyed
and therefore were produced without expending production or consumption
allowances;
    (vii) For transformation in the United States or by a person in a
foreign country, one copy of a transformation verification from the
transformer for the specific regulated substance(s) and a list of
additional quantities shipped to that same transformer for the quarter;
    (viii) For destruction in the United States or by a person in a
foreign country of a regulated substance that was produced without
allowances, one copy of a destruction verification for each particular
destroyer confirming it destroyed the same regulated substance, and a
list of additional quantities shipped to that same destroyer for the
quarter;
    (ix) A list of the entities conferring application-specific
allowances from whom orders were placed, and the quantity (in
kilograms) of specific regulated substances produced for those listed
applications; and
    (x) For the fourth quarter report only, the quantity of each
regulated substance held in inventory on December 31.
    (3) Recordkeeping--producers. Every producer of a regulated
substance must maintain the following records:
    (i) Dated records of the quantity (in kilograms) of each regulated
substance produced at each facility;
    (ii) Dated records of the quantity (in kilograms) of regulated
substances produced for use in processes that result in their
transformation, destruction, or as a process agent;
    (iii) Dated records of the quantity (in kilograms) of regulated
substances sold for use in processes that result in their
transformation, destruction, or as a process agent;
    (iv) Dated records of the quantity (in kilograms) of regulated
substances produced by expending conferred application-specific
allowances and quantity sold for use in each listed application;
    (v) Copies of invoices or receipts documenting sale of regulated
substances for use in processes that result in their transformation,
destruction, or as a process agent;
    (vi) Dated records of the quantity (in kilograms) of each regulated
substance used at each facility as feedstocks or destroyed in the
manufacture of a regulated substance or in the manufacture of any other
substance, and any regulated substance introduced into the production
process of the same regulated substance at each facility;

    (vii) Dated records of the quantity (in kilograms) of each
regulated substance used at each facility as a process agent;
    (viii) Dated records identifying the quantity (in kilograms) of
each coproduct and byproduct chemical not a regulated substance
produced within each facility also producing one or more regulated
substances;
    (ix) Dated records of the quantity (in kilograms) of raw materials
and feedstock chemicals used at each facility for the production of
regulated substances;
    (x) Dated records of the shipments of each regulated substance
produced at each plant;
    (xi) Dated records of batch tests of regulated substances packaged
for sale or distribution;
    (xii) The quantity (in kilograms) of regulated substances, the date
received, and names and addresses of the source of used materials
containing regulated substances which are recycled or reclaimed at each
plant;
    (xiii) Records of the date, the regulated substance, and the
estimated quantity of any spill or release of a regulated substance
that equals or exceeds 100 pounds;
    (xiv) The transformation verification in the case of
transformation, or the destruction verification in the case of
destruction, showing that the purchaser or recipient of a regulated
substance, in the United States or in another foreign country,
certifies the intent to either transform or destroy the regulated
substance, or sell the regulated substance for transformation or
destruction in cases when allowances were not expended; and
    (xv) The certifications from application-specific allowance holders
stating that the regulated substances were purchased solely for an
application listed in Sec.  84.5(c)(2) and will not be resold for use
in a different application or used in any other manufacturing process.
    (4) Additional Requirements: producers of HFC-23. (i) Each producer
of HFC-23 must include the following additional information in their
one-time report in paragraph (b)(1) of this section:
    (A) Information on the capacity to produce the intended chemical on
the line on which HFC-23 is produced;
    (B) A description of actions taken at the facility to control the
generation of HFC-23 and its emissions;
    (C) Identification of approved destruction technology and its
location intended for use for HFC-23 destruction;
    (D) A copy of the destruction removal efficiency report associated
with the destruction technology; and
    (E) Within 60 days of any change in the information specified in
the above report, the producer must submit a report specifying the
changes to the relevant Agency official.
    (ii) Each producer of HFC-23 must include the following additional
information in their fourth quarter report:
    (A) Annual facility-level data on HFC-23 (in metric tons) on
amounts: Emitted; generated; generated and captured for any purpose;
generated and captured for consumptive use; generated and captured for
feedstock use in the United States; generated and captured for
destruction; used for feedstock without prior capture; and destroyed
without prior capture.
    (B) [Reserved]
    (iii) If captured HFC-23 is destroyed in a subsequent control
period, producers must submit records to EPA indicating the HFC-23 has
been destroyed in their next quarterly report.
    (iv) In developing any required report, each producer of HFC-23
must abide by the following monitoring and quality assurance and
control provisions:
    (A) To calculate the quantities of HFC-23 generated and captured
for any use, generated and captured for destruction, used for feedstock
without prior capture, and destroyed without prior capture, facilities
shall comply with the monitoring methods and quality assurance and
control requirements set forth at 40 CFR 98.414 and the calculation