[Federal Register Volume 63, Number 149 (Tuesday, August 4, 1998)]
[Proposed Rules]
[Pages 41652-41655]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-20151]
Federal Register / Vol. 63, No. 149 / Tuesday, August 4, 1998 /
Proposed Rules
[[Page 41652]]
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 82
[FRL-6129-3]
RIN 2060-AG48
Protection of Stratospheric Ozone: Reconsideration of Petition
Criteria and Incorporation of Montreal Protocol Decisions
AGENCY: Environmental Protection Agency (EPA).
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: With this action, EPA is proposing revisions to the
accelerated phaseout regulation that governs the production, import and
export of substances that deplete the ozone layer under the authority
of sections 602, 604, 605, 606, and 614 of the Clean Air Act Amendments
of 1990 (CAA). Today's proposed amendments are made to reflect changes
in U.S. obligations under the Montreal Protocol on Substances that
Deplete the Ozone Layer (Protocol) due to recent decisions by signatory
countries to this international agreement. Additionally, in response to
a petition submitted to EPA, the Agency is proposing to remove the
requirement in the petition process for imports of used class I
controlled substances that a person must certify knowledge of tax
liability. Other proposed amendments are made to ease the burden on
affected companies while continuing to ensure compliance with Title VI
of the CAA and meet U.S. obligations under the Protocol.
Elsewhere in this issue of the Federal Register, EPA is amending
the accelerated phaseout regulation as a direct final rule without
prior proposal because the Agency views many of these distinct
revisions as noncontroversial and anticipates no relevant adverse
comments. A detailed list of the many distinct revisions is set forth
in the direct final rule. If no relevant adverse comments are received
on the direct final rule, no further activity is contemplated in
relation to this proposed rule. The EPA believes that many of the
distinct revisions are noncontroversial because they address various
implementation issues without major changes in policy.
DATES: Written comments must be received by September 3, 1998, unless a
public hearing is requested. Comments must then be received on or
before 30 days following the public hearing. Any party requesting a
public hearing must notify the contact person listed below by 5 p.m.
Eastern Standard Time on August 14, 1998. If a hearing is requested it
will be held September 1, 1998, and EPA will publish a document in the
Federal Register announcing the hearing information and the extended
comment period.
ADDRESSES: Comments on the companion to the direct final rule should be
submitted in duplicate (two copies) to: Air Docket No. A-92-13, U.S.
Environmental Protection Agency, 401 M Street, SW, Room M-1500,
Washington, DC, 20460. Comments must be identified with Docket No. A-
92-13 . Inquiries regarding a public hearing should be directed to the
Stratospheric Ozone Protection Hotline at 1-800-269-1996.
Materials relevant to this proposed rulemaking are contained in
Docket No. A-92-13. The Docket is located in room M-1500, First Floor,
Waterside Mall at the address above. The materials may be inspected
from 8 a.m. until 4 p.m. Monday through Friday. A reasonable fee may be
charged by EPA for copying docket materials.
FOR FURTHER INFORMATION CONTACT: Tom Land, U.S. Environmental
Protection Agency, Stratospheric Protection Division, Office of
Atmospheric Programs, 6205J, 401 M Street, SW., Washington, DC, 20460,
(202) 564-9185.
SUPPLEMENTARY INFORMATION: The EPA believes that many of the distinct
revisions in the direct final rule published in today's Federal
Register are noncontroversial; however, should the Agency receive
relevant adverse comment on the companion direct final rule, it will
publish a timely withdrawal informing the public that the rule will not
take effect. All relevant adverse comments received will be addressed
in a subsequent final rule based on this proposed rule. The EPA will
not institute a second comment period on this document. For additional
information, see the direct final rule published in the Final Rules
section of this Federal Register.
For ease of reference to the distinct revisions, the table of
contents for the direct final rule published in the Final Rules section
of this Federal Register is as follows:
Table of Contents
I. Background
II. Revisions to the Stratospheric Ozone Protection Program
A. Amendments to Sec. 82.3--Definitions
1. Adding a Definition for the Term ``Confer'' that Pertains to
Essential-Use Allowances
2. Adding Destruction Technologies to the List of Those Approved
in the Definition of Destruction
3. Simplifying the Definition of ``Importer''
4. Adding a Definition for the Phrase ``Source Facility'' that
Pertains to the Petition Process for Imports of Used Controlled
Substances
5. Clarifying the Definition of Transhipment
B. Amendments to Sec. 82.4--Prohibitions
1. Licensing System for Imports and Exports of Listed Controlled
Substances--both Newly Manufactured and Previously Used
2. Control of Exported Products that Rely on Class I Controlled
Substances for their Continuing Functioning to Article 5 Parties
3. Prohibit Imports and Exports of HBFCs from or to Non-Parties
to the Protocol
4. Application Process for Exemptions to the HCFC Phaseout for
Specific National Security Uses.
5. Simplify Procedure for Apportioning Essential-Use Allowances
and Essential-Use Exemptions through a Notice
6. Prohibit Import of Class I Controlled Substances for
Essential-Uses Except by Companies Allocated Essential-Use
Allowances
C. Amendments to Sec. 82.9--Availability of Production
Allowances in Addition to Baseline Production Allowances
1. Clarification of Increases or Decreases of Article 5
Allowances due to International Transfers
D. Amendments to Sec. 82.12--Transfers
1. Increases or Decreases of Essential-Use Allowances due to
Emergency International Transfers
E. Amendments to Sec. 82.13--Recordkeeping and Reporting
Requirements
1. Removal of Producer Requirement to Report the Quantity of
Used Material Received that Contains Recycled or Reclaimed
Controlled Substances
2. Add to the Producer Recordkeeping and Reporting Requirements
the Need to Maintain and Submit a Certification that a Quantity of
Class I Controlled Substance will be used as a Process Agent.
3. Clarify the Need for Letters that Confer Essential-Use
Allowances and Destruction and Transformation Credits to Producers
and that these Letters be Submitted with Producer's Quarterly
Reports
4. Changes to the Petition Process for Importing Used Class I
Controlled Substances
a. Clarification that a Petition to Import Used Class I
Controlled Substances is Submitted for One Individual Shipment
b. Changing the de minimis Quantity for an Individual Shipment
for which a Person is Required to Submit a Petition to Import Used
Class I Controlled Substances
c. Revised and Expanded Information Requirements for a Petition
to Import Used Class I Controlled Substances
d. Removal of the Information Requirement regarding the Tax for
People Petitioning to Import Used Class I Controlled Substances
e. Clarification of the Timing for EPA Review of a Petition f.
Clarification of Reasons for Disallowing Petitions to
[[Page 41653]]
Import Used Class I Controlled Substances
g. Requirement that the Petition and the Non-Objection Letter
from EPA for the Import of Used Class I Controlled Substances
Accompany the Shipment through U.S. Customs Clearance
5. Requirement that Importers of Controlled Substances and Used
Controlled Substances use the Harmonized Commodity Codes in this
Regulation in completing Customs Entry Documents
6. Modify the Requirement for a Sales Contract that Certifies
Exported Controlled Substances will be Transformed or Destroyed
7. Applying the Recordkeeping and Reporting Requirements to
Material obtained from Importers as well as Producers for a Person
that Transforms or Destroys Class I Controlled Substances
8. Changes to the Recordkeeping and Reporting Requirements for
Entities Allocated Essential-Use Allowances
9. Changes to the Reporting Requirement for Distributors of
Laboratory Supplies under the Global Laboratory Essential Use
Exemption
III. Miscellaneous Additional Changes
Summary of Supporting Analysis
A. Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Pub.
L. 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local and tribal
governments and the private sector. Under section 202 of the UMRA, EPA
generally must prepare a written statement, including a cost-benefit
analysis, for proposed and final rules with ``Federal mandates'' that
may result in expenditures by State, local and tribal governments, in
the aggregate, or by the private sector, of $100 million or more in any
one year. If a written statement is required under section 202, section
205 of the UMRA generally requires EPA to identify and consider a
reasonable number of regulatory alternatives and adopt the least
costly, most cost-effective or least burdensome alternative that
achieves the objectives of the rule, unless the Agency explains why
this alternative is not selected or the selection of this alternative
is inconsistent with law.
Section 203 of the UMRA requires the Agency to establish a plan for
obtaining input from and informing, educating, and advising any small
governments that may be significantly or uniquely affected by the rule.
Section 204 of the UMRA requires the Agency to develop a process to
allow elected state, local, and tribal government officials to provide
input in the development of any proposal containing a significant
Federal intergovernmental mandate.
EPA has determined that this rule does not contain a Federal
mandate that may result in expenditures of $100 million or more by
State, local and tribal governments, in the aggregate, or by the
private sector, in any one year. Most of the provisions in today's rule
fulfill the obligations of the United States under the international
treaty, The Montreal Protocol on Substances that Deplete the Ozone
Layer, as well as those requirements specifically set forth by Congress
in sections 604, 606 and 614 of the Clean Air Act Amendments of 1990.
The remainder merely serve to clarify existing regulatory text and
therefore impose no new additional enforceable duties on governmental
entities or the private sector. The majority of the amendments do not
create significant additional costs for either the public or the
private sector because they address various implementation issues
without major changes in policy. Viewed as a whole, today's amendments
do not create a Federal mandate resulting in costs of $100 million or
more in any one year for State, local and tribal governments, in the
aggregate, or for the private sector. Thus, today's rule is not subject
to the requirements of sections 202 and 205 of the UMRA. EPA has also
determined that this rule contains no regulatory requirements that
might significantly or uniquely affect small governments; therefore,
EPA is not required to develop a plan with regard to small governments
under section 203. Finally, because this proposal does not contain a
significant intergovernmental mandate, the Agency is not required to
develop a process to obtain input from elected state, local, and tribal
officials under section 204.
B. Regulatory Flexibility
The Regulatory Flexibility Act (RFA) generally requires an agency
to conduct a regulatory flexibility analysis of any rule subject to
notice and comment rulemaking requirements unless the agency certifies
that the rule will not have a significant economic impact on a
substantial number of small entities. Small entities include small
businesses, small not-for-profit enterprises, and small governmental
jurisdictions.
The Agency performed an initial screening analysis and determined
that this regulation does not have a significant economic impact on a
substantial number of small entities. EPA characterized the regulated
community by identifying the SIC codes of the companies affected by
this rule. The Agency determined that the members of the regulated
community affected by today's rule are generally not small businesses.
Small governments and small not-for-profit organizations are not
subject to the provisions of today's rule. The provisions in the
accelerated phaseout rule and today's action regulate large,
multinational corporations that either produce, import, export,
transform or destroy ozone-depleting chemicals controlled by this rule.
To the extent that today's actions affect entities other than large,
multinational corporations, there are few that are small entities and
the economic impact is negligible. Thus, today's rule will not have a
significant economic impact on a substantial number of small entities.
The rule includes changes to recordkeeping or reporting requirements.
Those changes included in today's rule that increase reporting burden
only apply to large companies (pharmaceutical companies holding
essential-use allowances). In general, for small entities, the changes
in today's action reduce reporting and recordkeeping.
EPA concluded that this proposed rule would not have a significant
impact on a substantial number of small entities, therefore, I hereby
certify that this action will not have a significant economic impact on
a substantial number of small entities. This rule, therefore, does not
require a regulatory flexibility analysis.
C. Executive Order 12866
Under Executive Order 12866 (58 FR 51735, October 4, 1993), the
Agency must determine whether this regulatory action is ``significant''
and therefore subject to OMB review and the requirements of the
Executive Order. The Order defines a ``significant'' regulatory action
as one that is likely to result in a rule that may:
(1) Have an annual effect on the economy of $100 million or more,
or adversely affect in a material way the economy, a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local, or tribal governments or
communities;
(2) Create a serious inconsistency or otherwise interfere with an
action taken or planned by another agency;
(3) Materially alter the budgetary impact of entitlements, grants,
user fees, or loan programs or the rights and obligations of recipients
thereof; or
(4) Raise novel legal or policy issues arising out of legal
mandates, the President's priorities, or the principles set forth in
the Executive Order.
It has been determined by EPA and OMB that this rule is not a
``significant regulatory action'' within the meaning of the Executive
Order.
[[Page 41654]]
D. Applicability of E.O. 13045--Children's Health Protection
This proposed rule is not subject to E.O. 13045, entitled
``Protection of Children from Environmental Health Risks and Safety
Risks'' (62 FR 19885, April 23, 1997), because it does not involve
decisions on environmental health risks or safety risks that may
disproportionately affect children.
E. Paperwork Reduction Act
The revised information collection requirements in these amendments
have been submitted for approval to OMB under the Paperwork Reduction
Act, 44 U.S.C. 3501 et seq. An Information Collection Request (ICR)
document has been prepared by EPA (ICR No. 1432.17) and a copy may be
obtained from Sandy Farmer by mail at OPPE Regulatory Information
Division; U.S. Environmental Protection Agency (2137); 401 M St., SW;
Washington, DC 20460, by email at farmer.sandy@epamail.epa.gov, or by
calling (202) 260-2740. A copy may also be downloaded off the internet
at http://www.epa.gov/icr. The additional information requirements in
these amendments are not effective until OMB approves them.
The information collection under this rule is authorized under
sections 603(b) and 114 of the Clean Air Act Amendments of 1990 (CAA).
This information collection is conducted to meet U.S. obligations under
Article 7, Reporting Requirements, of the Montreal Protocol on
Substances that Deplete the Ozone Layer (Protocol); and to carry out
the requirements of Title VI of the CAA, including sections 603 and
614.
The reporting requirements included in the amendments to the
current rule are designed to:
(1) Ensure compliance with the restrictions on production, import
and export of controlled ozone-depleting substances after the phaseout
of class I substances (except methyl bromide) after January 1, 1996;
(2) Allow exempted production and import for certain essential uses
and the consequent tracking of that production and import;
(3) Address industry and Federal concerns regarding the illegal
import of mislabelled used controlled substances that are claimed to be
undercutting U.S. markets;
(4) Respond to industry comments on the functioning of the program
to streamline reporting and eliminate administrative inefficiencies;
(5) Satisfy U.S. obligations under the international treaty, the
Montreal Protocol on Substances that Deplete the Ozone Layer
(Protocol), to report data under Article 7;
(6) Fulfill statutory obligations under Section 603(b) of Title VI
of the Clean Air Act Amendments of 1990 (CAA) for reporting and
monitoring;
(7) Provide information to report to Congress on the production,
use and consumption of class I and class II controlled substances as
statutorily required in Section 603(d) of Title VI of the CAA.
EPA informs respondents that they may assert claims of business
confidentiality for any of the information they submit. Information
claimed confidential will be treated in accordance with the procedures
for handling information claimed as confidential under 40 CFR Part 2,
Subpart B, and will be disclosed only if EPA determines that the
information is not entitled to confidential treatment. If no claim of
confidentiality is asserted when the information is received by EPA, it
may be made available to the public without further notice to the
respondents (40 CFR 2.203).
The information collection requirements for this action have an
estimated reporting burden averaging 23.3 hours per response. This
estimate includes time for reviewing instructions, searching existing
data sources, gathering and maintaining the data needed and completing
the collection of information.
The estimate includes the time needed to comply with EPA's
reporting requirements, as well as that used for the completion of the
reports under the amended regulations.
----------------------------------------------------------------------------------------------------------------
Number of Responses/ Total Hours per
Collection activity respondents respondent responses response Total hours
----------------------------------------------------------------------------------------------------------------
Producer's Report.............................. 8 4 32 16 512
Importer's Report.............................. 12 4 48 16 768
Notification of Trade.......................... 2 1 2 2 4
Export Report.................................. 10 1 10 80 800
Lab Certification.............................. 1000 1 1000 1 1000
Class II Report................................ 14 4 56 16 896
Transformation & Destruction................... 15 1 15 80 1200
Essential Use Allowance Holders................ 12 4 48 32 1536
Lab Suppliers.................................. 4 4 16 24 384
Lab Suppliers--Reference Standards............. 10 1 10 16 160
----------------------------------------------------------------
Total burden hours....................... ........... ........... ........... ........... 7260
----------------------------------------------------------------------------------------------------------------
Burden means the total time, effort, or financial resources
expended by persons to generate, maintain, retain, or disclose or
provide information to or for a Federal agency. This includes the time
needed to review instructions; develop, acquire, install, and utilize
technology and systems for the purposes of collecting, validating, and
verifying information, processing and maintaining information, and
disclosing and providing information; adjust the existing ways to
comply with any previously applicable instructions and requirements;
train personnel to be able to respond to a collection of information;
search data sources; complete and review the collection of information;
and transmit or otherwise disclose the information.
An Agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a
currently valid OMB control number. The OMB control numbers for EPA's
regulations are listed in 40 CFR Part 9 and 48 CFR Chapter 15.
Send comments on the Agency's need for this information, the
accuracy of the provided burden estimates, and any suggested methods
for minimizing respondent burden, including through the use of
automated collection techniques to the Director, OPPE Regulatory
Information Division; U.S. Environmental Protection Agency (2137); 401
M St., SW; Washington, DC 20460; and to the Office of Information and
Regulatory Affairs, Office of Management and Budget, 725 17th St., NW,
Washington, DC 20503, marked
[[Page 41655]]
``Attention: Desk Officer for EPA.'' Include the ICR number in any
correspondence.
F. Executive Order 12875
Today's action does not impose any unfunded mandate upon any State,
local, or tribal government; therefore, Executive Order 12875 does not
apply to this rulemaking.
List of Subjects in 40 CFR Part 82
Environmental protection, Administrative practice and procedure,
Air pollution control, Chemicals, Chlorofluorocarbons, Exports,
Hydrochlorofluorocarbons, Imports, Ozone layer, Reporting and
recordkeeping requirements.
Dated: July 17, 1998.
Carol M. Browner,
Administrator.
[FR Doc. 98-20151 Filed 8-3-98; 8:45 am]
BILLING CODE 6560-50-P
