EPA: Phasedown of Hydrofluorocarbons: Allowance Allocation Methodology for 2024 and Later Years
July 20, 2023
SUMMARY: The U.S. Environmental Protection Agency (EPA) is amending existing regulations to implement certain provisions of the American Innovation and Manufacturing Act. This rule establishes the methodology for allocating hydrofluorocarbon production and consumption allowances for the calendar years of 2024 through 2028. EPA is also amending the consumption baseline to reflect updated data and to make other adjustments based on lessons learned from implementation of the hydrofluorocarbon phasedown program thus far, including to: codify the existing approach of how allowances must be expended for import of regulated substances, revise recordkeeping and reporting requirements, and implement other modifications to the existing regulations.
DATES: This final rule is effective on September 18, 2023, except for amendatory instructions 3 and 13, which are effective October 1, 2024, published in the Federal Register July 20, 2023, page 46836.
View final rule.
§84.3 Definitions. | ||
Definitions of “Batch”, “Berth”, “Certificate of analysis”, “Commonly owned”, “Expend”, “Fire suppressant recycler”, “laboratory testing”, “Majority owned”, “Repackagers”, and “Representative sample” | Added | View text |
§84.5 Prohibitions relating to regulated substances. | ||
(b) | Revised | View text |
(d) | Revised | View text |
(i) | Revised | View text |
§84.7 Phasedown schedule. | ||
(b)(2) | Revised | View text |
(b)(3) table | Revised | View text |
§84.9 Allocation of calendar-year production allowances. | ||
(a) | Revised | View text |
(b)-(c) | Redesignated | View text |
§84.11 Allocation of calendar-year consumption allowances. | ||
(a) introductory text | Revised | View text |
(b)-(c) | Redesignated | View text |
§84.17 Availability of additional consumption allowances. | ||
(a)(8)-(9) | Revised | View text |
(a)(10)-(11) | Added | View text |
§84.19 Transfers of allowances. | ||
(a)(5) | Added | View text |
§84.25 Required processes to import regulated substances as feedstocks or for destruction. | ||
(a)(1)(v) | Revised | View text |
§84.31 Recordkeeping and reporting. | ||
Entire section | Revised | View text |
§84.37 Incorporation by reference. | ||
Entire section | Added | View text |
New Text
§84.5 Prohibitions relating to regulated substances.
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(b) Import. This paragraph applies starting January 1, 2022.
(1) No person may import bulk regulated substances, either as a single component or a multicomponent substance, except:
(i) If the importer of record possesses at the time they are required to submit reports to EPA pursuant to §84.31(c)(7), and expends at the time of ship berthing for vessel arrivals, border crossing for land arrivals such as trucks, rails, and autos, and first point of terminus in U.S. jurisdiction for arrivals via air, consumption or application-specific allowances in a quantity equal to the exchange-value weighted equivalent of the regulated substances imported, whether present as a single component or a multicomponent blend. The required amount of allowances must be 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 §84.25(a);
(iii) After receipt of a non-objection notice for used regulated substances imported for destruction in accordance with §84.25(b);
(iv) As a transhipment in accordance with §84.31(c)(3) if all transhipped regulated substance is exported from the United States within six months of its import; or
(v) All imports pursuant to paragraph (b)(1)(i) or (ii) of this section must be physically accompanied by a certificate of analysis, if the certificate of analysis has not been electronically submitted pursuant to §84.31(c)(7)(xvi).
(2) No person may attempt to land bulk regulated substances on, bring regulated substances into, or introduce regulated substances into, any place subject to the jurisdiction of the United States without meeting one of the categories set forth in §84.5(b)(1).
(3) 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).
(4) 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.
(5) 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.
(6) No person may introduce into U.S. commerce any regulated substance claimed as a transhipment.
(7) 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.
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(d) Calendar-year allowances. All production, consumption, and application-specific allowances may only be expended for production or import occurring in the calendar year for which the allowances 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. Entities may transfer or confer their production, consumption, or application-specific allowances before January 1 of the calendar year for which the allowances were allocated.
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(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. The label or other permanent markings must be:
(i) Durable and printed or otherwise labeled on, or affixed to, the external surface of the bulk regulated substance container;
(ii) Readily visible and legible;
(iii) Able to withstand open weather exposure without a substantial reduction in visibility or legibility;
(iv) Displayed on a background of contrasting color; and
(v) If a container of a regulated substance is contained within a box or other overpack, the exterior packaging must contain legible and visible information of what regulated substance is contained within.
(2) No person other than the importer of record may repackage or relabel regulated substances that were initially unlabeled or mislabeled. In order to repackage the regulated substances, the importer of record 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, exporting, reclaiming, recycling for fire suppression, or repackaging regulated substances, whether as a single or multicomponent substance, may sell or distribute, or offer for sale or distribution, those regulated substances without first conducting laboratory testing of a representative sample of the regulated substances that they are producing, importing, exporting, reclaiming, recycling for fire suppression, or repackaging to verify that the composition of the regulated substance(s) matches the container labeling using the sampling and testing methodology prescribed in appendix A to 40 CFR part 82, subpart F for regulated substances offered for sale and distribution as refrigerants and using the following sampling and testing method for regulated substances offered for non-refrigerant uses:
Regulated substance | Sampling and testing method |
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1 Only applicable portions of section 8 as specified here are required. Canisters may be used in place of bags for the purposes of these requirements. A sampling and analysis procedure under section 8.2 which provides for a representative sample is required (while section 8.2.1.5 is likely most appropriate, other procedures may be acceptable). Sections 8.4.1, 8.4.2.1, and 8.4.2.2 are required. | |
2 “Dry basis” concentrations do not need to be recorded. | |
3 ASTM D6064–11 (reapproved 2022),Standard Specification for HFC–227ea, 1,1,1,2,3,3,3-Heptafluoropropane (CF3CHFCF3) (incorporated by reference in §84.37) may be used as an alternative for non-refrigerant regulated substances offered for fire suppression use. | |
4 ASTM D6231/D6231M–21,Standard Specification for HFC–125 (Pentafluoroethane, C2HF5) (incorporated by reference in §84.37) and ASTM D6541–21Standard Specification for HFC–236fa, 1,1,1,3,3,3-Hexafluoropropane, (CF3CH2CF3), (incorporated by reference in §84.37) reference ASTM D6806 and may be used as an alternative for non-refrigerant regulated substances offered for fire suppression use. | |
HFC–23, HFC–134, HFC–125, HFC–143a, HFC–41, HFC–152a | Appendix A to 40 CFR part 82, subpart F, Sections 1, 2, 3, 5.1, 5.2, 5.3, 7, 8;Part 7 of 2008 Appendix C for Analytical Procedures for AHRI Standard 700–2014—Normative, (incorporated by reference in §84.37).3 |
HFC–134a, HFC–143, HFC–245fa, HFC–32, HFC–152 | Appendix A to 40 CFR part 82, subpart F, Sections 1, 2, 3, 5.1, 5.2, 5.3, 7, 8;Part 9 of 2008 Appendix C for Analytical Procedures for AHRI Standard 700–2014—Normative, (incorporated by reference in §84.37).3 |
HFC–227ea, HFC–236cb, HFC–236ea, HFC–236fa, HFC–245ca, HFC–365mfc, HFC–43–10mee | Sections 8,1 9, 10, 11, 12,2 and 13 of EPA Method 18 as applicable—appendix A–6 to 40 CFR part 60—Test Methods 16 through 18. Or ASTM D6806–02 (2022),Standard Practice for Analysis of Halogenated Organic Solvents and Their Admixtures by Gas Chromatography (incorporated by reference in §84.37).4 |
(ii) No person may sell or distribute, or offer for sale or distribution, regulated substances, whether as a single or multicomponent substance, as a refrigerant (except if recovered from and recycled for use in motor vehicle air conditioning or motor vehicle air conditioning-like appliances in accordance with 40 CFR part 82, subpart B) that do not meet the specifications in appendix A to 40 CFR part 82, subpart F—Specifications for Refrigerants, or, if not listed therein, appendix A1 to 40 CFR part 82, subpart F. For persons who are producing, importing, reclaiming, recycling for fire suppression, or repackaging regulated substances, the applicable specifications must be verified using laboratory testing and the sampling and testing methodology prescribed in appendix A to 40 CFR part 82, subpart F.
§84.7 Phasedown schedule.
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(2) The consumption baseline for regulated substances is 303,887,017 metric tons of exchange value equivalent.
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Year | Total production (MTEVe) | Total consumption (MTEVe) |
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(i) 2022–2023 | 344,299,157 | 273,498,315 |
(ii) 2024–2028 | 229,521,263 | 181,522,990 |
(iii) 2029–2033 | 114,760,632 | 90,761,495 |
(iv) 2034–2035 | 76,507,088 | 60,507,663 |
(v) 2036 and thereafter | 57,380,316 | 45,380,747 |
§84.9 Allocation of calendar-year production allowances.
(a) The relevant agency official will issue, through a separate notification, calendar year 2022 and 2023 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:
§84.11 Allocation of calendar-year consumption allowances.
(a) The relevant agency official will issue, through a separate notification, calendar years 2022 and 2023 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 entities that imported 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:
§84.17 Availability of additional consumption allowances.
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(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;
(9) The Harmonized Tariff Schedule codes of the regulated substances exported;
§84.25 Required processes to import regulated substances as feedstocks or for destruction.
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(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 entity does not know this information, and the entity receives a non-objection notice for the individual shipment in the petition, the entity is required to notify the relevant Agency official of this information prior to the date of importation (consistent with the definition at 19 CFR 101.1) of the individual shipment into the United States;
§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; for any regulated substance that is used in processes resulting in their transformation at a facility that differs from the facility of production, but both facilities are owned by the producer, the name, quantity (in kilograms), and recipient facility of each regulated substance; 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; for any regulated substance that is used in processes resulting in their destruction at a facility that differs from the facility of production, but both facilities are owned by the producer, the name, quantity (in kilograms), and recipient facility of each regulated substance; 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; for any regulated substance that is used as a process agent at a facility that differs from the facility of production, but both facilities are owned by the producer, the name, quantity (in kilograms), and recipient facility of each regulated substance; 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 including instrument calibration, sample testing data files, audit trail files, and results summaries of both sample test results and quality control test results that are in a form suitable and readily available for review;
(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 §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 methods set forth at 40 CFR 98.413, except 40 CFR 98.414(p) shall not apply.
(B) To calculate the quantity of HFC-23 emitted, facilities shall comply with the monitoring methods and quality assurance and control requirements set forth at 40 CFR 98.124 and the calculation methods set forth at 40 CFR 98.123.
(5) Agency assumption —For any person who fails to maintain the records required by this paragraph, or to submit the reports required by this paragraph, EPA may assume that the person has produced at full capacity during the period for which records were not kept.
(c) Importers. Persons (“importers”) who import regulated substances must comply with the following recordkeeping and reporting requirements:
(1) Reporting—importers. Within 45 days after the end of each quarter, an importer of record of a regulated substance must submit to the relevant Agency official a report containing the following information:
(i) Summaries of the records required in paragraph (c)(2) of this section for the previous quarter;
(ii) The total quantity (in kilograms) imported of each regulated substance for that quarter;
(iii) The Harmonized Tariff Schedule codes for the regulated substances or blends imported;
(iv) A list of the application-specific allowance holders from whom orders were placed, number of application-specific allowances conferred, and the quantity (in kilograms) of specific regulated substances imported for those listed applications;
(v) The quantity (in kilograms) of regulated substances imported for use in processes resulting in their transformation or destruction;
(vi) The quantity (in kilograms) of regulated substances sold or transferred during that quarter to each person for use in processes resulting in their transformation or destruction;
(vii) The transformation verifications showing that the purchaser or recipient of imported regulated substances intends to transform those substances or destruction verifications showing that the purchaser or recipient intends to destroy the regulated substances;
(viii) Records required under §84.25(b)(5) documenting proof that material imported for destruction was destroyed; and
(ix) For the fourth quarter report only, the quantity of each regulated substance held in inventory on December 31.
(2) Recordkeeping—importers. An importer of a regulated substance must maintain the following records:
(i) The quantity (in kilograms) of each regulated substance imported, either alone or in mixtures, including the percentage of each mixture that consists of a regulated substance;
(ii) The quantity (in kilograms) of used regulated substances imported for destruction under the process described in §84.25(b);
(iii) The quantity (in kilograms) of regulated substances imported for use in processes resulting in their transformation or destruction;
(iv) The quantity (in kilograms) of regulated substances imported and sold for use in processes that result in their transformation or destruction;
(v) The date on which the regulated substances were imported;
(vi) The port of entry through which the regulated substances passed;
(vii) The country from which the imported regulated substances were imported;
(viii) The company that produced the imported regulated substances;
(ix) The Harmonized Tariff Schedule code for the regulated substances imported;
(x) The importer number for the shipment;
(xi) A copy of the bill of lading for the import;
(xii) The invoice for the import;
(xiii) The U.S. Customs entry number;
(xiv) Dated records documenting the sale or transfer of regulated substances for use in processes resulting in their transformation or destruction;
(xv) Copies of transformation verifications or destruction verifications indicating that the regulated substances will be transformed or destroyed;
(xvi) Dated records of the quantity of regulated substances imported for an application listed at §84.5(c)(2);
(xvii) The certifications from application-specific allowance holders stating that the regulated substances were purchased solely for an application listed in §84.5(c)(2) and will not be resold for use in a different application or used in any other manufacturing process;
(xviii) Dated records of batch tests of regulated substances packaged for sale or distribution, including instrument calibration, sample testing data files, audit trail files, and results summaries of both sample test results and quality control test results that are in a form suitable and readily available for review; and
(xix) For any entity subject to an order issued by the Department of Commerce that is receiving allowances for 2022 or 2023, documentation of cash deposit of and final payment of the antidumping and countervailing duty for regulated substances imported.
(3) Transhipments. (i) A person must notify the relevant Agency official of each shipment of a regulated substance that is to be transhipped through the United States. The notification is required at least 30 working days before the shipment is to leave the foreign port of export for importation into the United States as a transhipment, and must contain the following information:
(A) Name, Harmonized Tariff Schedule code, and quantity in kilograms of each regulated substance to be transhipped;
(B) Name and address of the importer, the importer ID number, and the contact person's name, email address, and phone number;
(C) Source country; and
(D) The U.S. port of entry, the expected date of importation, including instrument calibration, sample testing data files, audit trail files, and results summaries of both sample test results and quality control test results that are in a form suitable and readily available for review, and the vessel transporting the material. If at the time of submitting the petition the importer does not know this information, the importer is required to notify the relevant Agency official of this information prior to the entry of each shipment into the United States.
(ii) The person in paragraph (c)(3)(i) of this section must notify the relevant Agency official of each shipment of a regulated substance that has been transhipped when it is exported from the United States. The notification is required at least 10 working days after the shipment is exported from the United States, and must contain the following information:
(A) Name, Harmonized Tariff Schedule code, and quantity in kilograms of each regulated substance to be transhipped;
(B) Name and address of the importer, the importer ID number, and the contact person's name, email address, and phone number; and
(C) Date of departure and name of vessel.
(iii) Any person who tranships a regulated substance must maintain records that indicate:
(A) That the regulated substance shipment originated in a foreign country;
(B) That the regulated substance shipment is destined for another foreign country; and
(C) That the regulated substance shipment will not enter U.S. commerce within the United States.
(4) Additional recordkeeping requirements—importers of used regulated substances for destruction. A person receiving a non-objection notice from the relevant Agency official to import used regulated substances for destruction must maintain the following records:
(i) A copy of the petition to import for destruction;
(ii) The EPA non-objection notice;
(iii) A copy of the export license, export license application, or official communication from the appropriate government agency in the country of export;
(iv) An English translation of the document in paragraph (c)(4)(iii) of this section;
(v) U.S. Customs entry documents for the import that must include the Harmonized Tariff Schedule codes;
(vi) The date, amount, and name of the regulated substances sent for destruction, per shipment;
(vii) An invoice from the destruction facility verifying the shipment was received; and
(viii) Records from the destruction facility indicating that the substance has been destroyed.
(5) Recordkeeping requirements—aggregators. A person aggregating a regulated substance prior to destruction, regardless of whether the person is an importer, must:
(i) Maintain transactional records that include the name and address of the entity from whom they received the regulated substance imported for destruction;
(ii) Maintain transactional records that include the name and address of the entity to whom they sent the regulated substance imported for destruction;
(iii) Maintain records that include the date and quantity of the imported regulated substance received for destruction;
(iv) Maintain records that include the date and quantity of the imported regulated substance sent for destruction; and
(v) If the person is the final aggregator of such a regulated substance before the material is destroyed, maintain a copy of records indicating that the substance has been destroyed.
(6) Recordkeeping requirements—vessel owners/operators. A person offloading regulated substances recovered from equipment aboard a marine vessel, aircraft, or other aerospace vehicle while in a U.S. port must maintain records of the company name, vessel name or identifier, location of the appliance, date of recovery, person doing the recovery, the amount of regulated substances recovered and type of refrigerant recovered for each servicing event, and the amount of each regulated substance or blend of regulated substances offloaded and the date it was offloaded.
(7) Additional reporting for importers of record. The importer of record must include the following no later than 10 days if arriving by marine vessel or 5 days for non-marine vessel prior to the date of importation (consistent with the definition at 19 CFR 101.1), via a U.S. Customs and Border Protection-authorized electronic data interchange system, such as the Automated Broker Interface (authorized agents may permissibly file on behalf of an importer of record):
(i) Cargo Description;
(ii) Net weight;
(iii) Container number(s) associated with the shipment, as applicable;
(iv) Gross Weight;
(v) Weight Unit of Measure;
(vi) Port of Entry;
(vii) Scheduled Entry Date;
(viii) Harmonized Tariff Schedule (HTS) code;
(ix) Harmonized Tariff Schedule (HTS) Description;
(x) Origin Country;
(xi) Importer of Record Name and Associated Number;
(xii) Consignee Entity Name;
(xiii) CAS Number(s) of the regulated substance(s) imported and, for regulated substances that are in a mixture, either the ASHRAE numerical designation of the refrigerant or the percentage of the mixture containing each regulated substance;
(xiv) If importing regulated substances for transformation or destruction, a copy of the non-objection notice issued consistent with §84.25;
(xv) If importing regulated substances as a transhipment, a copy of the confirmation documenting the entity reported the transhipment consistent with paragraph (c)(3)(i) of this section; and
(xvi) A certificate of analysis, if the certificate of analysis is not physically accompanying the shipment pursuant to §84.5(b)(1)(v)).
(8) One-time report—payment of antidumping and countervailing duties. By November 30, 2021, any entity importing regulated substances subject to an antidumping and countervailing duty order issued by the Department of Commerce that is receiving allowances for 2022 or 2023 must provide documentation of cash deposit of and final payment of such duties for the regulated substances imported from January 1, 2017, through May 19, 2021, or provide evidence that those imports were not subject to such duties for those years.
(9) Importer of record information. (i) Any entity that falls under any of the following criteria must submit the information outlined in paragraph (c)(9)(ii) of this section:
(A) That is issued allowances by EPA and anticipates being the importer of record for a shipment of regulated substances; or
(B) That is not issued allowances by EPA, but receives transferred or conferred allowances.
(ii) The following information must be submitted to EPA by the date specified under paragraph (c)(9)(iii) of this section:
(A) Names of all subsidiaries;
(B) Entities commonly owned or majority owned by the same person or persons;
(C) Alternative names under which the entity does business;
(D) Importer of record numbers; and
(E) If providing information under paragraph (c)(9)(ii) (A), (B), or (C) of this section:
( 1 ) The relationship between the allowance holder and each subsidiary and each entity commonly owned or majority owned by the same person or persons, including alternative names under which each listed entity does business; and
( 2 ) If applicable, the identity of owners and their respective percentage of ownership.
(iii) The information outlined in paragraph (c)(9)(ii) of this section must be submitted each year by:
(A) November 15 after being issued allowances for an entity that falls under paragraph (c)(9)(i)(A) of this section; or
(B) within 15 calendar days of receiving a non-objection notice for conferral of application-specific allowances pursuant to §84.13(h) or for inter-company transfer of consumption allowances pursuant to §84.19(a) for an entity that falls under paragraph (c)(9)(i)(B) of this section.
(iv) If changes occur to the information previously provided to the Agency, such changes must be transmitted to the Agency at least 21 days prior to expenditure of allowances pursuant to §84.5(b)(1)(i).
(d) Exporters. Persons (“exporters”) who export regulated substances must comply with the following reporting requirements:
(1) Reporting requirements—exporters. Within 45 days after the end of each quarter, each exporter of a regulated substance must submit to the relevant Agency official a report containing the following information if such information was not already reported under paragraph (b)(2) of this section:
(i) The names and addresses of the exporter and the recipient of the exports;
(ii) The exporter's Employer Identification Number;
(iii) The quantity of each specific regulated substance exported, including the quantity of regulated substance that is used, reclaimed, or recycled;
(iv) The date on which, and the port from which, the regulated substances were exported from the United States or its territories;
(v) The country to which the regulated substances were exported;
(vi) The Harmonized Tariff Schedule codes for the regulated substances shipped;
(vii) For persons exporting for transformation or destruction of the regulated substance, the invoice or sales agreement containing language similar to the transformation verifications that importers use, or destruction verifications showing that the purchaser or recipient intends to destroy the regulated substances; and
(viii) For the fourth quarter report only, the quantity of each regulated substance held in inventory on December 31.
(2) Recordkeeping. (i) Exporters must maintain dated records of batch tests of regulated substances packaged for sale or distribution, including instrument calibration, sample testing data files, audit trail files, and results summaries of both sample test results and quality control test results that are in a form suitable and readily available for review.
(3) Used regulated substances. Any exporter of used regulated substances must indicate on the bill of lading or invoice that the regulated substance is used.
(e) Second-party transformation and destruction. Any person who transforms or destroys regulated substances produced or imported by another person must comply with the following recordkeeping and reporting requirements:
(1) Reporting—second-party transformation and destruction. Any person who transforms or destroys regulated substances produced or imported by another person must report the following for each facility:
(i) The names and quantities (in kilograms) of the regulated substances transformed for each calendar year within 45 days after the end of that year; and
(ii) The names and quantities (in kilograms) of the regulated substances destroyed for each calendar year within 45 days after the end of that year.
(2) Recordkeeping—second-party transformation and destruction. Any person who transforms or destroys regulated substances produced or imported by another person must maintain the following:
(i) Copies of the invoices or receipts documenting the sale or transfer of the regulated substances to the person;
(ii) Records identifying the producer or importer of the regulated substances received by the person;
(iii) Dated records of inventories of regulated substances at each plant on the first day of each quarter;
(iv) Dated records of the quantity (in kilograms) of each regulated substance transformed or destroyed;
(v) In the case where regulated substances were purchased or transferred for transformation purposes, a copy of the person's transformation verification;
(vi) Dated records of the names, commercial use, and quantities (in kilograms) of the resulting chemical(s) when the regulated substances are transformed;
(vii) Dated records of shipments to purchasers of the resulting chemical(s) when the regulated substances are transformed; and
(viii) In the case where regulated substances were purchased or transferred for destruction purposes, a copy of the person's destruction verification.
(3) Transformation verifications. Any person who purchases regulated substances for purposes of transformation must provide the producer or importer of the regulated substances with a transformation verification that the regulated substances are to be used in processes that result in their transformation. The verification can only be valid for one year. The transformation verification shall include the following:
(i) Identity and address of the person intending to transform the regulated substances;
(ii) The quantity (in kilograms) of regulated substances intended for transformation;
(iii) Identity of shipments by purchase order number(s), purchaser account number(s), location(s), or other means of identification;
(iv) Period of time over which the person intends to transform the regulated substances; and
(v) Signature and title of the verifying person.
(4) Destruction verifications. Any person who purchases or receives regulated substances in processes that result in their destruction shall provide the producer or importer of the regulated substances with a destruction verification that the regulated substances are to be used in processes that result in their destruction. The verification can only be valid for up to 120 days. The destruction verification shall include the following:
(i) Identity and address of the person intending to destroy regulated substances;
(ii) The quantity (in kilograms) of regulated substances intended for destruction;
(iii) Identity of shipments by purchase order number(s), purchaser account number(s), location(s), or other means of identification;
(iv) The destruction efficiency at which such substances will be destroyed;
(v) Period of time over which the person intends to destroy regulated substances; and
(vi) Signature and title of the verifying person.
(5) Transformation reporting—one-time report. Within 120 days of January 1, 2022, or within 120 days of the date that an entity first transforms a regulated substance, whichever is later, any person who transforms a regulated substance must provide EPA with a one-time report containing the following information:
(i) A description of the transformation use;
(ii) A description of all technologies and actions taken to minimize emissions of regulated substances;
(iii) The name of the product manufactured in the process;
(iv) A list of any coproducts, byproducts, or emissions from the line on which the regulated substance is to be transformed 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;
(v) The estimated annual fugitive emissions by chemical associated with the transformation process;
(vi) The anticipated ratio of regulated substance used for transformation to the amount of end product manufactured; and
(vii) A mass balance equation of the transformation reaction.
(f) All destruction facilities— (1) Destruction—one-time report. Within 120 days of January 1, 2022, or within 120 days of the date that an entity first destroys a regulated substance, whichever is later, every person who destroys regulated substances, whether in a process for destruction or for disposal of a used substance, shall provide EPA with a report containing the following information:
(i) The destruction unit's destruction efficiency;
(ii) The methods used to determine destruction efficiency;
(iii) The methods used to record the volume destroyed;
(iv) The name of other relevant federal or state regulations that may apply to the destruction process; and
(v) Any changes to the information in this paragraph must be reflected in a revision to be submitted to EPA within 60 days of the change(s).
(2) Proof of destruction. Any person who destroys used regulated substances for disposal of that substance, shall provide the importer or aggregator with a record indicating the substance was destroyed within 30 days of the date of destruction.
(g) Process agents— (1) Reporting—one-time report. Within 120 days of January 1, 2022, or within 120 days of the date that an entity first uses a regulated substance as a process agent, whichever is later, any person who uses a regulated substance as a process agent must provide EPA a one-time report containing the following information:
(i) A description of the process agent use that includes details of the percentages of process agent retained within the process, recovered after the process, and emitted or entrained in the final product;
(ii) A description of all technologies and actions taken to minimize emissions of regulated substances;
(iii) The name of the product and byproducts manufactured in the process; and
(iv) The anticipated ratio of process agent emissions to end product manufactured.
(2) Annual report. Any person who uses a regulated substance as a process agent must provide an annual report containing the following information:
(i) Contact information including email address and phone number for a primary and alternate contact person;
(ii) The amount of regulated substance used as a process agent;
(iii) The amount of product and the amount of byproducts manufactured (including amounts eventually destroyed or used as feedstock);
(iv) The stack point source emissions; and
(v) A description of any regulated substance emission reduction actions planned or currently under investigation.
(h) Holders of application-specific allowances.
(1) Reporting. Any person allocated application-specific allowances, except for persons receiving application-specific allowances for mission-critical military end uses, must submit to the relevant Agency official a report 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. The report shall contain the following information:
(i) The quantity (in kilograms) of regulated substances acquired through conferring allowances during the previous six months;
(ii) The quantity (in kilograms) of regulated substances acquired through expending allowances and directly imported during the previous six months;
(iii) The quantity (in kilograms) of regulated substances purchased for application-specific use without expending application-specific allowances during the previous six months (i.e., from the open market);
(iv) The quantity (in kilograms) of inventory on the last day of the previous six-month period of each regulated substance for application-specific use held by the reporting company or held under contract by another company for the reporting company's use;
(v) The quantity (in kilograms) of each regulated substance for application-specific use that was destroyed or recycled during the previous six months;
(vi) The names and contact information of each company to which application-specific allowances were conferred, and the quantity of allowances conferred from each company, and the quantity of regulated substances received from each company;
(vii) In the July 31 report only, a description of plans to transition application-specific use of regulated substances to regulated substances with a lower exchange value or alternatives to regulated substances;
(viii) In the July 31 report only, if a company is requesting additional allowances due to one or more of the circumstances listed in §84.13(b)(1), the report must include a projection of the monthly quantity of additional regulated substances needed for application-specific use(s) by month in the next calendar year and a detailed explanation, including relevant supporting documentation to justify the additional need; and
(ix) In the July 31 report only, if a company is contracting out the manufacturing of defense sprays or metered dose inhalers, or paying another person (whether it is in cash, credit, goods, or services) to perform 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)(1) of this section apply to the company that is allocated application-specific allowances or the company receiving the contract for manufacturing and/or servicing using application-specific allowances.
(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 §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 §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.
(4) Conferral of allowances. Entities who confer application-specific allowances, except for the conferral of allowances for mission-critical military end uses, must submit the following information about each conferral to the relevant Agency official prior to conferring allowances:
(i) The identities and addresses of the conferrer and the conferee;
(ii) The names, telephone numbers, and email addresses of contact persons for the conferrer and the conferee;
(iii) The specific application for which application-specific allowances are to be conferred;
(iv) The quantity (in MTEVe) of application-specific allowances being conferred;
(v) The amount of unexpended application-specific allowances of the type and for the year being conferred that the conferrer holds under authority of this subpart as of the date the claim is submitted to EPA; and
(vi) A certification from the conferrer and the conferee stating that the regulated substances being acquired, produced, or imported are solely for an application listed in §84.5(c)(2) and will not be resold for use in a different application or used in any other manufacturing process.
(5) Confirmation of conferral. If the conferrer has sufficient application-specific allowances for the conferral, the conferral will occur and the relevant Agency official will issue a confirmation notice to both the conferrer and conferee documenting the conferral occurred. The relevant agency official will reduce the conferrer's balance of unexpended allowances by the quantity conferred. However, if EPA ultimately finds that the conferrer did not have sufficient unexpended allowances to cover the conferral or that the regulated substances produced or imported with conferred allowances are used for anything other than the specific application identified in the conferee's submittal and for the application those allowances were allocated for, the conferrer and conferee will be liable for any violations of the regulations of this subpart that occur as a result of, or in conjunction with, the improper conferral.
(6) Recordkeeping. Entities who receive via allocation, transfer, or conferral of application-specific allowances, except for mission-critical military end uses, must maintain the following records for five years:
(i) Records necessary to develop the biannual reports;
(ii) A copy of certifications provided to entities when conferring and transferring allowances for application-specific use;
(iii) A copy of confirmation notices when conferring allowances for application-specific use;
(iv) A copy of the annual submission requesting application-specific allowances;
(v) Invoices and order records related to the purchase of regulated substances;
(vi) Records related to the transfer and conferral of application-specific allowances to other entities; and
(vii) Records documenting how regulated substances acquired with application-specific allowances were used.
(7) Recordkeeping—Mission-Critical Military End Uses. The Department of Defense must maintain the following records:
(i) Records necessary to develop the annual report;
(ii) A copy of certifications provided to entities when conferring allowances for application-specific use;
(iii) Invoices and order records related to the purchase of regulated substances;
(iv) Records documenting the conferral(s) of application-specific allowances to other entities up to and including the producer and or importer of the chemical;
(v) Records documenting the transfer of regulated substances to an agent or unit of the Department of Defense where the regulated substance will be used for mission-critical applications; and
(vi) Copies of current and historical plans prescribed by the Office of the Secretary of Defense documenting internal Department of Defense monitoring and review procedures for accuracy.
(i) Reclaimers. Persons (“reclaimers”) who reclaim regulated substances must comply with the following recordkeeping and reporting requirements:
(1) One-time report. By February 14, 2022, any person who reclaims a regulated substance must provide a one-time report containing the following information:
(i) The quantity of each regulated substance held in inventory as of December 31, 2021, broken out by whether the regulated substance is recovered, reclaimed, and virgin;
(ii) The name of the laboratory that conducts batch testing and a signed statement from that laboratory confirming there is an ongoing business relationship with the reclaimer;
(iii) The number of batches tested for each regulated substance or blend containing a regulated substance in the prior year; and
(iv) The number of batches that did not meet the specifications in appendix A to 40 CFR part 82, subpart F in the prior year.
(2) Quarterly Reporting. Within 45 days after the end of each quarter, each reclaimer of a regulated substance must submit to the relevant Agency official a report containing the quantity of material (the combined mass of regulated substance and contaminants) by regulated substance sent to them for reclamation, the total mass of each regulated substance, and the total mass of waste products.
(3) Annual Reporting. Within 45 days after the end of the fourth quarter, each reclaimer of a regulated substance must submit to the relevant Agency official a report containing the quantity of each regulated substance held in inventory onsite as of December 31 broken out by whether the regulated substance is recovered, reclaimed, and virgin.
(4) Recordkeeping. (i) Reclaimers must maintain records, by batch, of the results of the analysis conducted to verify that reclaimed regulated substance meets the necessary specifications in appendix A to 40 CFR part 82, subpart F (based on AHRI Standard 700–2016), including instrument calibration, sample testing data files, audit trail files, and results summaries of both sample test results and quality control test results that are in a form suitable and readily available for review. Such records must be maintained for five years.
(ii) Reclaimers must maintain records of the names and addresses of persons sending them material for reclamation and the quantity of the material (the combined mass of regulated substance and contaminants) by regulated substance sent to them for reclamation. Such records must be maintained on a transactional basis for five years.
(j) Fire suppressant recycling. Persons (“recycler”) who recycle regulated substances used as a fire suppressant must comply with the following recordkeeping and reporting requirements:
(1) Quarterly Reporting. Within 45 days after the end of each quarter, each recycler of a regulated substance used as a fire suppressant must submit to the relevant Agency official a report containing the quantity of material (the combined mass of regulated substance and contaminants) by regulated substance sent to them for recycling, the total mass of each regulated substance recycled, and the total mass of waste products.
(2) Annual Reporting. Within 45 days after the end of the fourth quarter, each recycler of a regulated substance used as a fire suppressant must submit to the relevant Agency official a report containing the quantity of each regulated substance held in inventory onsite broken out by recovered, recycled, and virgin.
(3) Recordkeeping. (i) Recyclers must maintain records of the names and addresses of persons sending them material for recycling and the quantity of the material (the combined mass of regulated substance and contaminants) by regulated substance sent to them for recycling. Such records must be maintained on a transactional basis for five years.
(ii) Recyclers must maintain dated records of batch tests of regulated substances packaged for sale or distribution, including instrument calibration, sample testing data files, audit trail files, and results summaries of both sample test results and quality control test results that are in a form suitable and readily available for review.
(k) Repackagers. Persons who transfer regulated substances, either alone or in a blend from one container to another container prior to sale or distribution or offer for sale or distribution must comply with the following recordkeeping requirements:
(1) Recordkeeping. Repackagers must maintain dated records of batch tests of regulated substances packaged for sale or distribution, including instrument calibration, sample testing data files, audit trail files, and results summaries of both sample test results and quality control test results that are in a form suitable and readily available for review.
(2) [Reserved]
(l) Treatment of Data submitted under 40 CFR part 84. (1) Except as otherwise provided in paragraph (i) of this section, 40 CFR 2.201 through 2.215 and 2.301 do not apply to data submitted under this part that EPA has determined through rulemaking to be either of the following:
(i) Emission data, as defined in 40 CFR 2.301(a)(2), determined in accordance with section 114(c) and 307(d) of the Clean Air Act; or
(ii) Data not otherwise entitled to confidential treatment.
(2) Except as otherwise provided in paragraph (k)(4) of this section, 40 CFR 2.201 through 2.208 and 2.301(c) and (d) do not apply to data submitted under this part that EPA has determined through rulemaking to be entitled to confidential treatment. EPA shall treat that information as confidential in accordance with the provisions of 40 CFR 2.211, subject to paragraph (h)(4) of this section and 40 CFR 2.209.
(3) Upon receiving a request under 5 U.S.C. 552 for data submitted under this part that EPA has determined through rulemaking to be entitled to confidential treatment, the relevant Agency official shall furnish the requestor a notice that the information has been determined to be entitled to confidential treatment and that the request is therefore denied. The notice shall include or cite to the appropriate EPA determination.
(4) A determination made through rulemaking that information submitted under this part is entitled to confidential treatment shall continue in effect unless, subsequent to the confidentiality determination through rulemaking, EPA takes one of the following actions:
(i) EPA determines through a subsequent rulemaking that the information is emission data or data not otherwise entitled to confidential treatment; or
(ii) The Office of General Counsel issues a final determination, based on the requirements of 5 U.S.C. 552(b)(4), stating that the information is no longer entitled to confidential treatment because of change in the applicable law or newly discovered or changed facts. Prior to making such final determination, EPA shall afford the business an opportunity to submit comments on pertinent issues in the manner described by 40 CFR 2.204(e) and 2.205(b). If, after consideration of any timely comments submitted by the business, the Office of General Counsel makes a revised final determination that the information is not entitled to confidential treatment, the relevant agency official will notify the business in accordance with the procedures described in 40 CFR 2.205(f)(2).
July 20, 2023
Author{not populated}
TypeChange Notice
Industries{not populated}
Related TopicsAir Programs
Governing Bodies{not populated}
Citationsr40CFR84SubpartA