2778fr01

72216

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Parts 84, 261, 262, 266, 270,
and 271
[EPA–HQ–OAR–2022–0606; FRL–10105–01–
OAR]

Phasedown of Hydrofluorocarbons:
Management of Certain
Hydrofluorocarbons and Substitutes
Under Subsection (h) of the American
Innovation and Manufacturing Act of
2020
Environmental Protection
Agency (EPA).
ACTION: Notice of proposed rulemaking
and advance notice of proposed
rulemaking.
AGENCY:

The U.S. Environmental
Protection Agency is proposing to issue
regulations to implement certain
provisions of the American Innovation
and Manufacturing Act of 2020. This
rulemaking proposes to establish a
program for the management of
hydrofluorocarbons that includes
requirements for leak repair and use of
automatic leak detection systems for
certain equipment using refrigerants
containing hydrofluorocarbons and
certain substitutes; requirements for the
use of reclaimed hydrofluorocarbons in
certain sectors or subsectors; the use of
recycled hydrofluorocarbons in fire
suppression equipment; recovery of
hydrofluorocarbons from cylinders;
container tracking; and certain
recordkeeping, reporting, and labeling
requirements. The Environmental
Protection Agency is also proposing
alternative Resource Conservation and
Recovery Act standards for spent
ignitable refrigerants being recycled for
reuse. Finally, EPA requests advance
comment on approaches for establishing
requirements for technician training
and/or certification.
DATES: Comments on this notice of
proposed rulemaking must be received
on or before December 18, 2023. Under
the Paperwork Reduction Act (PRA),
comments on the information collection
provisions are best ensured of
consideration if the Office of
Management and Budget (OMB)
receives a copy of your comments on or
before November 20, 2023. The
Environmental Protection Agency (EPA)
will hold a virtual public hearing on or
about November 3, 2023. The date, time,
and other relevant information for the
virtual public hearing will be available
at https://www.epa.gov/climate-hfcsreduction.
ADDRESSES: You may send comments,
identified by docket identification

lotter on DSK11XQN23PROD with PROPOSALS2

SUMMARY:

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

number EPA–HQ–OAR–2022–0606, by
any of the following methods:
• Federal eRulemaking Portal:
https://www.regulations.gov (our
preferred method). Follow the online
instructions for submitting comments.
• Mail: U.S. Environmental
Protection Agency, EPA Docket Center,
Air and Radiation Docket, Mail Code
28221T, 1200 Pennsylvania Avenue
NW, Washington, DC 20460.
• Hand Delivery or Courier (by
scheduled appointment only): EPA
Docket Center, WJC West Building,
Room 3334, 1301 Constitution Avenue
NW, Washington, DC 20004. The Docket
Center’s hours of operations are 8:30
a.m.–4:30 p.m., Monday–Friday (except
Federal Holidays).
Instructions: All submissions received
must include the Docket ID No. for this
rulemaking. Comments received may be
posted without change to https://
www.regulations.gov, including any
personal information provided. The
EPA Docket Center and Reading Room
are open to the public by appointment
only. Our Docket Center staff also
continue to provide remote customer
service via email, phone, and webform.
We encourage the public to submit
comments via https://
www.regulations.gov as there may be a
delay in processing mail. Hand
deliveries and couriers may be received
by scheduled appointment only. For
further information on EPA Docket
Center services and the current status,
please visit us online at https://
www.epa.gov/dockets.
You may find the following
suggestions helpful for preparing your
comments: Direct your comments to
specific sections of this proposed
rulemaking and note where your
comments may apply to future separate
actions where possible; explain your
views as clearly as possible; describe
any assumptions that you used; provide
any technical information or data you
used that support your views; provide
specific examples to illustrate your
concerns; offer alternatives; and, make
sure to submit your comments by the
comment period deadline. Please
provide any published studies or raw
data supporting your position.
Multimedia submissions (audio, video,
etc.) must be accompanied by a written
comment. The written comment is
considered the official comment and
should include discussion of all points
you wish to make. EPA will generally
not consider comments or comment
contents located outside of the primary
submission (e.g., on the web, cloud, or
other file sharing system).
Do not submit any information you
consider to be Confidential Business

PO 00000

Frm 00002

Fmt 4701

Sfmt 4702

Information (CBI) through https://
www.regulations.gov. For submission of
confidential comments, please work
with the person listed in the FOR
FURTHER INFORMATION CONTACT section.
For additional submission methods, the
full EPA public comment policy,
information about CBI or multimedia
submissions, and general guidance on
making effective comments, please visit
https://www.epa.gov/dockets/
commenting-epa-dockets.
FOR FURTHER INFORMATION CONTACT:
Christian Wisniewski, Stratospheric
Protection Division, Office of
Atmospheric Protection (Mail Code
6205A), Environmental Protection
Agency, 1200 Pennsylvania Ave. NW,
Washington, DC 20460; telephone
number: 202–564–0417; email address:
wisniewski.christian@epa.gov. You may
also visit EPA’s website at https://
www.epa.gov/climate-hfcs-reduction for
further information.
For information related to the
proposed alternative standards for
certain ignitable spent refrigerants
under the Resource Conservation and
Recovery Act (RCRA), please contact
Tracy Atagi, Materials Recovery and
Waste Management Division, Office of
Resource Conservation and Recovery
(5304T), Environmental Protection
Agency, 1200 Pennsylvania Ave. NW,
Washington, DC 20460; telephone
number: (202) 566–0511; email address:
atagi.tracy@epa.gov.
SUPPLEMENTARY INFORMATION:
Throughout this document whenever
‘‘we,’’ ‘‘us,’’ ‘‘the Agency,’’ or ‘‘our’’ is
used, we mean EPA. Acronyms that are
used in this rulemaking that may be
helpful include:
AC—Air Conditioning
AHRI—Air-Conditioning, Heating, and
Refrigeration Institute
ALD—Automatic Leak Detection
AIM Act—American Innovation and
Manufacturing Act of 2020
APF—Air Permitting Forum
ASHRAE—American Society of Heating,
Refrigerating and Air-Conditioning
Engineers
ASTM—American Society for Testing and
Materials
CAA—Clean Air Act
CARB—California Air Resources Board
CBI—Confidential Business Information
CBP—U.S. Customs and Border Protection
CFC—Chlorofluorocarbon
CFR—Code of Federal Regulations
CO2e—Carbon Dioxide Equivalent
DOT—Department of Transportation
ECHO—Enforcement and Compliance
History Online
e-GGRT—Electronic Greenhouse Gas
Reporting Tool
ENGO—Environmental Non-governmental
Organization
E.O.—Executive Order
EPA—Environmental Protection Agency

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
EVe—Exchange Value Equivalent
FEMA—Fire Equipment Manufacturers
Association
FOIA—Freedom of Information Act
FR—Federal Register
FSSA—Fire Suppression Systems
Association
FSTOC—Fire Suppression Technical Options
Committee
GHG—Greenhouse gas
GHGRP—Greenhouse Gas Reporting Program
GWP—Global Warming Potential
HAP—Hazardous Air Pollutant
HARC—Halon Alternatives Research
Corporation
HCFC—Hydrochlorofluorocarbon
HD—Heavy-duty
HEEP—HFC Emissions Estimating Program
HFC—Hydrofluorocarbon
HFO—Hydrofluoroolefin
HSWA—Hazardous and Solid Waste
Amendments of 1984
HTOC—Halons Technical Options
Committee
ICR—Information Collection Request
IPCC—Intergovernmental Panel on Climate
Change
IPR—Industrial Process Refrigeration
IWG—Interagency Working Group on the
Social Cost of Greenhouse Gases
ISO—International Organization for
Standardization
MACS—Mobile Air Climate Systems
Association
MMTCO2e—Million Metric Tons of Carbon
Dioxide Equivalent
MMTEVe—Million Metric Tons of Exchange
Value Equivalent
MTEVe—Metric Tons of Exchange Value
Equivalent
MVAC—Motor vehicle air conditioner
NAAQS—National Ambient Air Quality
Standards
NAICS—North American Industrial
Classification System
NAFED—National Association of Fire
Equipment Distributors
NATA—National Air Toxics Assessment
NEDA/CAP—National Environmental
Development Association’s Clean Air
Project
NEI—National Emissions Inventory
NFPA—National Fire Protection Association
NODA—Notice of Data Availability
NRDC—Natural Resources Defense Council
ODP—Ozone Depletion Potential
ODS—Ozone depleting substances
OEM—Original Equipment Manufacturer
OLEM—Office of Land and Emergency
Management
OMB—Office of Management and Budget
ppm—Parts Per Million
PRA—Paperwork Reduction Act
R4 Program—Refrigerant Recovery, Reclaim,
and Reuse Requirements (CARB Program)
RACHP—Refrigeration, Air Conditioning,
and Heat Pumps
RCOP—Recycling Code of Practice
RCRA—Resource Conservation and Recovery
Act
RFA—Regulatory Flexibility Act
RIA—Regulatory Impact Analysis
RRA—Refrigerant Reclaim Australia
SC–HFC—Social Cost of Hydrofluorocarbons
SISNOSE—Significant Economic Impact on a
Substantial Number of Small Entities

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

SNAP—Significant New Alternatives Policy
VCOP—Voluntary Code of Practice
TRI—Toxics Release Inventory
VRF—Variable Refrigerant Flow
VSQG—Very Small Quantity Generator

Table of Contents
I. Executive Summary
A. What is the purpose of this proposed
regulatory action?
B. What is the summary of this proposed
regulatory action?
C. What is the summary of the costs and
benefits?
II. General Information
A. Does this action apply to me?
B. What is EPA’s authority for taking this
action?
III. Background
A. What are HFCs?
B. How do HFCs affect public health and
welfare?
C. What refrigerant management programs
has EPA already established under the
Clean Air Act?
1. National Recycling and Emission
Reduction Program (CAA Section 608)
2. Motor Vehicle Air Conditioning
Servicing Program (CAA Section 609)
3. Significant New Alternatives Policy
Program (CAA Section 612)
IV. How is EPA proposing to regulate the
management of HFCs and their
substitutes?
A. What definitions is EPA proposing to
implement under subsection (h)?
1. Which definitions is EPA proposing to
adopt that parallel definitions in 40 CFR
82.152?
2. Which definitions is EPA proposing to
adopt that parallel definitions in 40 CFR
82.32?
3. What other definitions is EPA proposing
to adopt?
B. Which sectors and subsectors is EPA
considering addressing under subsection
(h)?
C. How is EPA proposing to address leak
repair?
1. Background
2. Scope of the Proposed Leak Repair
Requirements
a. Appliances containing which
refrigerants would be subject to the
proposed leak repair requirements?
b. Appliances with what charge size would
be subject to the proposed leak repair
requirements?
3. What leak repair provisions is EPA
proposing?
a. Leak Rate Calculations
b. Requirement To Repair Leaks, Timing
and Applicable Leak Rates
c. Verification Testing
d. Leak Inspections
e. Chronically Leaking Appliances
f. Retrofit and Retirement Plans
g. Recordkeeping and Reporting
4. Automatic Leak Detection Systems
a. Proposed Automatic Leak Detection
Requirements
b. Recordkeeping and Reporting
D. How is EPA proposing to establish
requirements for the use of recovered
and reclaimed HFCs?
1. Background

PO 00000

Frm 00003

Fmt 4701

Sfmt 4702

72217

2. Proposed Reclamation Standard
3. Proposed Requirements for Initial
Charge of Equipment for Subsectors in
the RACHP Sector Subsectors in the
RACHP Sector
4. Proposed Requirements for Servicing
and/or Repair of Existing Equipment in
the RACHP Sector Subsectors in the
RACHP Sector
E. How is EPA proposing to establish an
HFC emissions reduction program for the
fire suppression sector?
1. Background
2. Nomenclature Used in This Section
3. Fire Suppression Background
4. Minimizing Releases of HFCs
a. Proposed Uquirements for Initial Charge
of Equipment for Fire Suppression
b. Proposed Requirements for Servicing
and/or Repair of Existing Equipment for
Fire Suppression
c. Technician Training
d. Recycling of HFCs Prior to Disposal of
Fire Suppression Equipment Containing
HFCs
e. Recordkeeping and Reporting
F. What is EPA proposing for cylinder
requirements and for container tracking
requirements?
1. Background
2. Requirements for Disposable Cylinders
3. Container Tracking
a. Container Tracking of Regulated
Substances
b. Container Tracking of Used Cylinders
4. Small Cans of Refrigerant
G. How is EPA proposing to establish
RCRA refrigerant recycling alternative
standards?
1. Nomenclature Used in This Section
2. Background
3. Proposed Alternative RCRA Standards
for Spent Ignitable Refrigerants Being
Recycled for Reuse
a. Scope of the Proposed RCRA Alternative
Standards
b. Proposed Requirements for the RCRA
Alternative Standards
4. Very Small Quantity Generator Wastes
5. RCRA Regulation of Exports and Imports
of Ignitable Spent Refrigerants
6. Applicability of Proposed Alternative
Standard in RCRA-Authorized States
7. Effect on State Authorization
H. MVAC Servicing and Reprocessed
Material
V. How is EPA proposing to treat data
reported under this rule?
A. Background on Determinations of
Whether Information Is Entitled To
Treatment as Confidential Information
1. Confidential Treatment of Reported
Information
2. Emissions Data Under Section 114 of the
Clean Air Act
B. Data Elements Reported to EPA Under
the Leak Repair Provisions
C. Data Elements Related to the Generation
of Machine-Readable Tracking Identifiers
and the Tracking of HFCs
D. Data Elements Related to Fire
Suppression
VI. What are the costs and benefits of this
proposed action?
A. Background
B. Estimated Costs and Benefits of Leak
Repair and ALD Provisions

E:\FR\FM\19OCP2.SGM

19OCP2

72218

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

C. Summary of Estimated Costs and
Benefits of All Rule Provisions
VII. How is EPA considering environmental
justice?
VIII. Request for Advance Comment on
Approaches for Establishing
Requirements for Technician Training
IX. Statutory and Executive Order Review
A. Executive Order 12866: Regulatory
Planning and Review and Executive
Order 14094: Modernizing Regulatory
Review
B. Paperwork Reduction Act (PRA)
C. Regulatory Flexibility Act (RFA)
D. Unfunded Mandates Reform Act
(UMRA)
E. Executive Order 13132: Federalism
F. Executive Order 13175: Consultation
and Coordination With Indian Tribal
Governments
G. Executive Order 13045: Protection of
Children From Environmental Health
and Safety Risks
H. Executive Order 13211: Actions That
Significantly Affect Energy Supply,
Distribution, or Use
I. National Technology Transfer and
Advancement Act (NTTAA)
J. Executive Order 12898: Federal Actions
To Address Environmental Justice in
Minority Populations and Low-Income
Populations and Executive Order 14096:
Revitalizing our Nation’s Commitment to
Environmental Justice for All

lotter on DSK11XQN23PROD with PROPOSALS2

I. Executive Summary
A. What is the purpose of this proposed
regulatory action?
The Environmental Protection Agency
(EPA) is proposing regulations that
would implement certain provisions of
the American Innovation and
Manufacturing Act of 2020, codified at
42 U.S.C. 7675 (AIM Act or the Act).
The AIM Act authorizes EPA to address
hydrofluorocarbons (HFCs) in three
main ways: phasing down HFC
production and consumption through
an allowance allocation program;
facilitating the transition to nextgeneration technologies by restricting
use of these HFCs in the sector or
subsectors in which they are used; and
promulgating certain regulations for
purposes of maximizing reclaiming and
minimizing releases of HFCs from
equipment and ensuring the safety of
technicians and consumers. This
proposal focuses on the third area—
establishing certain regulations for HFCs
and their substitutes for the purposes of
maximizing reclaiming and minimizing
releases of HFCs from equipment and
ensuring the safety of technicians and
consumers.
More specifically, subsection (h) of
the AIM Act, entitled ‘‘Management of
regulated substances,’’ directs EPA to
promulgate regulations to control,
where appropriate, any practice,
process, or activity regarding the
servicing, repair, disposal, or

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

installation of equipment that involves:
a regulated substance (used
interchangeably with ‘‘HFCs’’ in this
proposed rulemaking), a substitute for a
regulated substance, the reclaiming of a
regulated substance used as a
refrigerant, or the reclaiming of a
substitute for a regulated substance used
as a refrigerant.
This proposed rulemaking addresses
how EPA intends to start implementing
the provisions of subsection (h),
including its authority to issue
regulations to control such practices,
processes, and activities, particularly as
related to the management, use, and
reuse of HFCs and substitutes in
equipment. Further, this action
proposes provisions to support
implementation of, compliance with,
and enforcement of requirements under
subsection (h) of the AIM Act.
Additionally, EPA is proposing
alternative Resource Conservation and
Recovery Act (RCRA) standards for
certain spent ignitable refrigerants being
recycled for reuse, as that term is
proposed to be used under RCRA.1
These proposed standards would
involve regulatory changes to 40 CFR
parts 261–271 and not be part of the
regulations under subsection (h)(1) of
the AIM Act.
B. What is the summary of this proposed
regulatory action?
This section of the preamble describes
a summary of the proposed provisions
of this rulemaking, which are described
in more detail in the relevant sections
of this proposal.
Management of regulated substances.
EPA is proposing to establish a program
for the management of HFCs that
includes requirements with compliance
dates ranging between 60 days after
publication of the final rule to January
1, 2028, for:
• Leak repair of appliances
containing HFCs and/or certain
substitutes for HFCs (whether the
appliance uses the HFC or substitute for
an HFC neat or in a blend with other
substances). The leak repair
requirements would apply to appliances
containing 15 pounds or more of a
refrigerant that contains an HFC or
contains a substitute for an HFC with a
1 The terms ‘‘reclaim’’ and ‘‘recycle’’ have
different regulatory purposes and definitions under
RCRA than under the CAA and the AIM Act. Under
RCRA, a material is ‘‘reclaimed’’ if it is processed
to recover a usable product, or if it is regenerated.
Examples are recovery of lead values from spent
batteries and regeneration of spent solvents (See 40
CFR 261.1(c)(4)). Reclamation is one of the four
types of ‘‘recycling’’ identified in 40 CFR 261.2(c)
that can involve management of a solid waste under
RCRA.

PO 00000

Frm 00004

Fmt 4701

Sfmt 4702

global warming potential (GWP) above
53 with specific exceptions;
• Use of automatic leak detection
(ALD) systems for certain new and
existing appliances containing 1,500
pounds or more of a refrigerant that
contains an HFC or a substitute for an
HFC with a GWP above 53;
• A proposed reclamation standard;
• The use of reclaimed HFCs in
certain refrigeration, air conditioning,
and heat pump (RACHP) sectors or
subsectors and applications for the
initial charge or installation of
equipment and servicing and/or repair
of existing equipment and the use of
recycled HFCs in the initial charge or
servicing and/or repair of fire
suppression equipment;
• The servicing, repair, disposal, or
installation of fire suppression
equipment that contains HFCs, with the
purpose of minimizing the release of
HFCs from that equipment, as well as
requirements related to technician
training in the fire suppression sector;
• Recovery of HFCs from disposable
cylinders prior to disposal;
• Container tracking for HFCs that
could be used in the servicing, repair,
and/or installation of refrigerantcontaining or fire suppression
equipment; and
• Recordkeeping, reporting, and
labeling.
Amendments to Resource
Conservation and Recovery Act (RCRA)
hazardous waste regulations. EPA is
proposing alternative standards for
spent ignitable refrigerants when
recycled for reuse, as that term is
proposed to be used under RCRA. EPA
is proposing that the 40 CFR part 266
Subpart Q RCRA alternative standards
would apply to HFCs and other
substitutes that do not belong to
flammability Class 3 as classified by the
American Society of Heating,
Refrigerating and Air-Conditioning
Engineers (ASHRAE) Standard 34–
2022.2 EPA is proposing to limit the
alternative standards to lower
flammability substitutes (Class 1, 2, and
2 ASHRAE Standard 34–2022 assigns a safety
group classification for each refrigerant which
consists of two alphanumeric characters (e.g., A2 or
B1). The capital letter indicates the toxicity class
(‘‘A’’ for lower toxicity) and the numeral denotes
the flammability. ASHRAE recognizes three
classifications and one subclass for refrigerant
flammability. The three main flammability
classifications are Class 1, for refrigerants that do
not propagate a flame when tested as per the
ASHRAE 34 standard, ‘‘Designation and Safety
Classification of Refrigerants;’’ Class 2, for
refrigerants of lower flammability; and Class 3, for
highly flammable refrigerants, such as the
hydrocarbon refrigerants. ASHRAE recently
updated the safety classification matrix to include
a new flammability subclass 2L, for flammability
Class 2 refrigerants that burn very slowly.

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
2L) because of the lower risk of fire from
the collection and recycling for reuse of
these refrigerants, and the greater
market value of these refrigerants,
which supports the conclusion that
these spent refrigerants will be recycled
for reuse and not stockpiled,
mismanaged, or abandoned.
Enforcement and compliance. To
support compliance with the proposed
requirements, EPA is proposing
labeling, reporting, and recordkeeping
requirements as described in this action.
EPA is also requiring reporting and
recordkeeping for the reduction of HFC
emissions for the fire suppression
sector. The Agency is proposing to use
the same reporting platform used in
prior AIM Act rules and the Greenhouse
Gas Reporting Program (GHGRP).3
Additionally, EPA requests advance
comment on approaches for establishing
requirements for RACHP technician
training and/or certification.
Specifically, EPA is seeking advance
comment on whether, through a
separate rulemaking, EPA should
propose to establish training and/or
service requirements for technicians
under subsection (h), in particular, for
flammable refrigerants. And, if so, how
such a training program might be
managed.
The Agency is not proposing any
regulatory requirements under
subsection (h) for HFCs and substitutes
for HFCs used in applications besides
RACHP and fire suppression sectors at
this time. However, the Agency will
continue to monitor the use and
emissions of HFCs more generally and
such information may inform future
rulemakings under subsection (h).

lotter on DSK11XQN23PROD with PROPOSALS2

C. What is the summary of the costs and
benefits?
EPA is providing information on the
costs and benefits for the provisions
related to managing regulated
substances and their substitutes in this
proposed rule. The analyses, presented
in the Analysis of the Economic Impact
and Benefits of the Proposed Rule
technical support document (TSD) and
in a regulatory impact analysis (RIA)
addendum to the Allocation Framework
Rule RIA, are contained in the docket to
this proposed rule and are intended to
provide the public with information on
the relevant costs and benefits of this
3 The GHGRP requires reporting of greenhouse
gas (GHG) data and other relevant information from
large GHG emission sources, fuel and industrial gas
suppliers, and carbon dioxide (CO2) injection sites
in the United States. The program generally
requires reporting when emissions from covered
sources are greater than 25,000 metric tons of CO2e
per year. Publicly available information includes
facility names, addresses, and latitude/longitude
information.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

action, if finalized as proposed, and to
comply with executive orders. EPA
notes that the costs and benefits
associated with the management of
regulated substances and their
substitutes under the AIM Act are
described and calculated separately
from those associated with the proposed
amendments to the RCRA hazardous
waste regulations. These analyses—as
summarized below—highlight economic
cost and benefits, including benefits
from leak repair and emissions
reductions.
Given that the provisions EPA is
proposing concern HFCs, which are
subject to the phasedown of production
and consumption under the AIM Act,
EPA relied on its previous estimates of
the impacts of already finalized AIM
Act rules as a starting point for the
assessment of costs and benefits of this
rule. Specifically, the Allocation
Framework Rule, ‘‘Phasedown of
Hydrofluorocarbons: Establishing the
Allowance Allocation and Trading
Program Under the American
Innovation and Manufacturing Act’’ (86
FR 55116, October 5, 2021) and the 2024
Allocation Rule, ‘‘Phasedown of
Hydrofluorocarbons: Allowance
Allocation Methodology for 2024 and
Later Years’’ (88 FR 46836, July 20,
2023) 4 are assumed as a baseline for
this proposed rule. In this way, EPA
analyzed the potential incremental
impacts of the proposed rule, attributing
benefits only insofar as they are
additional to those already assessed in
the Allocation Framework Rule RIA and
the 2024 Allocation Rule RIA
addendum (collectively referred to as
‘‘Allocation Rules’’ in this discussion).
For example, a mitigation option in the
marginal abatement cost (MAC) analysis
for the Allocation Rules assumed a
reduction in refrigerant leaks; all costs
and benefits calculated for this rule are
for leak reductions over and above those
assumed in the previous analysis.
As detailed in the RIA addendum, the
number, charge sizes, leak rates, and
other characteristics of potentially
affected RACHP equipment were
estimated using EPA’s Vintaging
4 EPA recently finalized two separate rulemakings
to update the regulations established in the HFC
Allocation Framework Rule. The first rule,
‘‘Phasedown of Hydrofluorocarbons: Allowance
Allocation Methodology for 2024 and Later Years,’’
established the methodology for allocating HFC
production and consumption allowances starting
with calendar year 2024 allowances and adjusted
the consumption baseline downward by less than
0.5% to reflect corrected data, among other changes
(88 FR 46836, July 20, 2023). The second,
‘‘Phasedown of Hydrofluorocarbons: Adjustment to
the Hydrofluorocarbon Baseline,’’ amended the
production baseline downward by 0.005% to reflect
corrected data (88 FR 44220, July 12, 2023).

PO 00000

Frm 00005

Fmt 4701

Sfmt 4702

72219

Model.5 The leak repair and ALD
system provisions proposed are
assumed to lead leaking systems to be
repaired earlier than they otherwise
would have, leading to reduced
emissions of HFCs. Provisions requiring
the use of reclaimed refrigerant,
requirements for the fire suppression
sector, and provisions related to the
handling of disposable cylinders are
further estimated to result in
incremental reductions in HFC
emissions. These reductions in HFC
emissions result in climate benefits due
to reduced climate forcing as calculated
by multiplying avoided emissions by
the social cost of each HFC (SC–HFCs).
In the years 2025–2050, the proposed
rule provisions would prevent an
estimated 142 million metric tons of
CO2 equivalent (MMTCO2e) in HFC
emissions, and the present value of
economic benefit of avoiding the
damages associated with those
emissions is estimated at $9.8 billion (in
2022 dollars, discounted to 2024 using
a three percent discount rate). The
annual benefits are estimated to
decrease over time due to the HFC
phasedown and the transition out of the
higher-GWP HFCs, lowering the average
GWP of later emissions. For example, it
is estimated that the leak repair and
ALD system provisions would prevent
3.8 MMTCO2e of HFC emissions in 2030
and 2.8 MMTCO2e in the year 2040.
Reducing HFC emissions due to fixing
leaks earlier would also be anticipated
to lead to savings for some system
owner/operators, as less new refrigerant
would need to be purchased to replace
leaked refrigerant. In 2025, it is
estimated that the proposed leak repair
and ALD provisions would lead to
savings of $13 million (2022$). EPA
acknowledges that these savings would
not completely offset leak repair
compliance costs and may not accrue
uniformly to all regulated entities, and
EPA requests comment on this estimate.
Further, while these provisions have
been estimated to result in savings, EPA
understands that entities that would be
affected by these proposed regulations
might not perform the practices,
processes, or activities that would result
in cost savings absent regulation. When
entities are reviewing their own
economic analyses, some factors may be
pertinent that make new technologies or
economically favorable best practices
less attractive than existing practices, or
some market failure may exist that acts
as a barrier to businesses’ adoption of
5 U.S. Environmental Protection Agency (EPA).
2023. EPA’s Vintaging Model representing the
Allocation Framework Rule as modified by the 2024
Allocation Rule RIA addendum. VM IO file_v4.4_
02.04.16_2024 Allocation Rule.

E:\FR\FM\19OCP2.SGM

19OCP2

72220

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

the most profitable course.6 For
example, market failures may exist
where there are imperfect information
or split incentives; such as decisionmakers not knowing the percentage of
energy use associated with refrigeration
or the costs of replacing refrigerant lost
from leaking appliances.
The compliance costs of the proposed
rule include recordkeeping and
reporting costs, the costs of purchasing
and operating ALD systems, costs of
required inspections, the cost of
repairing leaks earlier than would have
been necessary without the proposed
provisions, and the cost of proposed
disposable cylinder management
requirements. In the years 2025–2050,
these provisions would result in
compliance costs (inclusive of
refrigerant savings) with a present value
estimated at $3.7 billion in 2022 dollars
at a 3 percent discount rate or $2.4
billion at a 7 percent discount rate.
Taking into account both benefits and
compliance costs over the 2025–2050
time period, it is estimated that the
proposed rule would result in present
value net benefit (benefits minus
compliance costs), of $6.1 billion (with
compliance costs discounted at three

percent) to $7.4 billion (with
compliance costs discounted at seven
percent).
As detailed in the draft RIA
addendum, these values represent a
conservative estimate of potential
incremental benefits and assume
potential HFC consumption- and
emissions-reducing activities required
by some of the proposed rule’s
provisions could be offset to the extent
that available consumption and
production allowances are shifted to
meet demand in subsectors not covered
by the proposed rule. Given the inherent
uncertainty of future industry behavior,
in the draft RIA addendum EPA has also
provided estimates under an additional
scenario in which these offsetting effects
to not occur and additional incremental
benefits accrue.
Some of the information regarding
projected impacts of certain aspects of
the proposal was considered by EPA as
it developed this proposed rule. To the
extent that EPA has considered such
information it is compiled in the
Analysis of the Economic Impact and
Benefits of the Proposed Rule draft TSD,
which is in the docket for this
rulemaking.

Although EPA is using SC–HFCs for
purposes of some of the analysis in the
RIA addendum, this proposed action
does not rely on those estimates of these
costs as a record basis for the Agency
action, and EPA would reach the
proposed conclusions even in the
absence of the social costs of HFCs.
Additional information on these
analyses can be found in section VI. of
this document, as well as the RIA
addendum and the Analysis of the
Economic Impact and Benefits of the
Proposed Rule draft TSD, which is in
the docket for this rulemaking.
II. General Information
A. Does this action apply to me?
You may be potentially affected by
this rule if you own, operate, service,
repair, recycle, dispose, or install
equipment containing HFCs or their
substitutes, as well as if you recover,
recycle, or reclaim HFCs or their
substitutes. You may also be potentially
affected if you manufacture or sell
equipment containing HFCs or their
substitutes. Potentially affected
categories, by North American Industry
Classification System (NAICS) code, are
included in Table 1.

TABLE 1—NAICS CLASSIFICATION OF POTENTIALLY AFFECTED ENTITIES

lotter on DSK11XQN23PROD with PROPOSALS2

NAICS code

NAICS industry description

236118 ..............
236220 ..............
238220 ..............
238990 ..............
311812 ..............
321999 ..............
322299 ..............
324191 ..............
324199 ..............
325199 ..............
325211 ..............
325412 ..............
325414 ..............
325998 ..............
326299 ..............
327999 ..............
332812 ..............
332999 ..............
333415 ..............
333511 ..............
333912 ..............
333999 ..............
334413 ..............
334419 ..............
334516 ..............
335220 ..............
336120 ..............
336212 ..............
336214 ..............
3363 ..................
3364 ..................
336411 ..............
336611 ..............

Residential Remodelers.
Commercial and Institutional Building Construction.
Plumbing, Heating, and Air–Conditioning Contractors.
All Other Specialty Trade Contractors.
Commercial Bakeries.
All Other Miscellaneous Wood Product Manufacturing.
All Other Converted Paper Product Manufacturing.
Petroleum Lubricating Oil and Grease Manufacturing.
All Other Petroleum and Coal Products Manufacturing.
All Other Basic Organic Chemical Manufacturing.
Plastics Material and Resin Manufacturing.
Pharmaceutical Preparation Manufacturing.
Biological Product (except Diagnostic) Manufacturing.
All Other Miscellaneous Chemical Product and Preparation Manufacturing.
All Other Rubber Product Manufacturing.
All Other Miscellaneous Nonmetallic Mineral Product Manufacturing.
Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to Manufacturers.
All Other Miscellaneous Fabricated Metal Product Manufacturing.
Air–Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing.
Industrial Mold Manufacturing.
Air and Gas Compressor Manufacturing.
All Other Miscellaneous General Purpose Machinery Manufacturing.
Semiconductor and Related Device Manufacturing.
Other Electronic Component Manufacturing.
Analytical Laboratory Instrument Manufacturing.
Major Household Appliance Manufacturing.
Heavy Duty Truck Manufacturing.
Truck Trailer Manufacturing.
Travel Trailer and Camper Manufacturing.
Motor Vehicle Parts Manufacturing.
Aerospace Product and Parts Manufacturing.
Aircraft Manufacturing.
Ship Building and Repairing.

6 Klemick, Heather & Kopits, Elizabeth &
Wolverton, Ann. ‘‘Potential Barriers to Improving

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

Energy Efficiency in Commercial Buildings: The

PO 00000

Frm 00006

Fmt 4701

Sfmt 4702

Case of Supermarket Refrigeration.’’ Journal of
Benefit-Cost Analysis. 8, 2017, pp. 1–31.

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

72221

TABLE 1—NAICS CLASSIFICATION OF POTENTIALLY AFFECTED ENTITIES—Continued
NAICS code

NAICS industry description

lotter on DSK11XQN23PROD with PROPOSALS2

336612 ..............
339112 ..............
339113 ..............
339999 ..............
423120 ..............
423450 ..............
423610 ..............
423620 ..............
423690 ..............
423720 ..............
423730 ..............
423740 ..............
423830 ..............
423840 ..............
423850 ..............
423860 ..............
423990 ..............
424690 ..............
424820 ..............
441310 ..............
443141 ..............
444190 ..............
445110 ..............
445131 ..............
445298 ..............
446191 ..............
449210 ..............
452311 ..............
453998 ..............
45711 ................
481111 ..............
488510 ..............
493110 ..............
531120 ..............
541330 ..............
541380 ..............
541512 ..............
541519 ..............
541620 ..............
561210 ..............
561910 ..............
561990 ..............
562111 ..............
562211 ..............
562920 ..............
621498 ..............
621999 ..............
72111 ................
72112 ................
72241 ................
722511 ..............
722513 ..............
722514 ..............
722515 ..............
81119 ................
811219 ..............
811412 ..............
922160 ..............

Boat Building.
Surgical and Medical Instrument Manufacturing.
Surgical Appliance and Supplies Manufacturing.
All Other Miscellaneous Manufacturing.
Motor Vehicle Supplies and New Parts Merchant Wholesalers.
Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers.
Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers.
Household Appliances, Electric Housewares, and Consumer Electronics Merchant Wholesalers.
Other Electronic Parts and Equipment Merchant Wholesalers.
Plumbing and Heating Equipment and Supplies (Hydronics) Merchant Wholesalers.
Warm Air Heating and Air–Conditioning Equipment and Supplies Merchant Wholesalers.
Refrigeration Equipment and Supplies Merchant Wholesalers.
Industrial Machinery and Equipment Merchant Wholesalers.
Industrial Supplies Merchant Wholesalers.
Service Establishment Equipment and Supplies Merchant Wholesalers.
Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers.
Other Miscellaneous Durable Goods Merchant Wholesalers.
Other Chemical and Allied Products Merchant Wholesalers.
Wine and Distilled Alcoholic Beverage Merchant Wholesalers.
Automotive Parts and Accessories Stores.
Household Appliance Stores.
Other Building Material Dealers.
Supermarkets and Other Grocery (except Convenience) Stores.
Convenience Retailers.
All Other Specialty Food Retailers.
Food (Health) Supplement Stores.
Electronics and Appliance Retailers.
Warehouse Clubs and Supercenters.
All Other Miscellaneous Store Retailers (except Tobacco Stores).
Gasoline Stations With Convenience Stores.
Scheduled Passenger Air Transportation.
Freight Transportation Arrangement.
General Warehousing and Storage.
Lessors of Nonresidential Buildings (except Mini warehouses).
Engineering Services.
Testing Laboratories.
Computer Systems Design Services.
Other Computer Related Services.
Environmental Consulting Services.
Facilities Support Services.
Packaging and Labeling Services.
All Other Support Services.
Solid Waste Collection.
Hazardous Waste Treatment and Disposal.
Materials Recovery Facilities.
All Other Outpatient Care Centers.
All Other Miscellaneous Ambulatory Health Care Services.
Hotels (Except Casino Hotels) and Motels.
Casino Hotels.
Drinking Places (Alcoholic Beverages).
Full-service Restaurants.
Limited-Service Restaurants.
Cafeterias, Grill Buffets, and Buffets.
Snack and Nonalcoholic Beverage Bars.
Other Automotive Repair and Maintenance.
Other Electronic and Precision Equipment Repair and Maintenance.
Appliance Repair and Maintenance.
Fire Protection.

This table is not intended to be
exhaustive, but rather provides a guide
for readers regarding entities likely to be
regulated by this action. This table lists
the types of entities that EPA expects
could potentially be regulated by this
action. Other types of entities not listed
in the table could also be regulated. To
determine whether your entity may be

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

regulated by this action, you should
carefully examine the proposed
regulatory text at the end of this
document. If you have questions
regarding the applicability of this action
to a particular entity, consult the people
listed in the FOR FURTHER INFORMATION
CONTACT section.

PO 00000

Frm 00007

Fmt 4701

Sfmt 4702

B. What is EPA’s authority for taking
this action?
On December 27, 2020, the AIM Act
was enacted as section 103 in Division
S, Innovation for the Environment, of
the Consolidated Appropriations Act,
2021 (42 U.S.C. 7675). In subsection
(k)(1)(A), the AIM Act provides EPA
with the authority to promulgate

E:\FR\FM\19OCP2.SGM

19OCP2

72222

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

necessary regulations to carry out EPA’s
functions under the Act, including its
obligations to ensure that the Act’s
requirements are satisfied (42 U.S.C.
7675(k)(1)(A)). Subsection (k)(1)(C) of
the Act also provides that Clean Air Act
(CAA) sections 113, 114, 304, and 307
apply to the AIM Act and any
regulations EPA promulgates under the
AIM Act as though the AIM Act were
part of CAA Title VI (42 U.S.C.
7675(k)(1)(C)). Accordingly, this
rulemaking is subject to CAA section
307(d) (see 42 U.S.C. 7607(d)(1)(I))
(CAA section 307(d) applies to
‘‘promulgation or revision of regulations
under subchapter VI of this chapter
(relating to stratosphere and ozone
protection)’’).
The AIM Act authorizes EPA to
address hydrofluorocarbons (HFCs) in
three main ways: phasing down HFC
production and consumption through
an allowance allocation program;
facilitating the transition to nextgeneration technologies by restricting
use of these HFCs in the sector or
subsectors in which they are used; and
promulgating certain regulations for
purposes of maximizing reclaiming and
minimizing releases of HFCs from
equipment and ensuring the safety of
technicians and consumers. This
proposal focuses on the third area—
establishing certain regulations for HFCs
and their substitutes for the purposes of
maximizing reclaiming 7 and
minimizing releases of HFCs from
equipment and ensuring the safety of
technicians and consumers.
The identification of regulated
substances is addressed under
subsection (c) of the Act. The Act lists
18 saturated HFCs, and by reference any
of their isomers not so listed, that are
covered by the statute’s provisions,
referred to as ‘‘regulated substances’’ 8
under the Act (42 U.S.C. 7675(c)(1)).
Congress also assigned an ‘‘exchange
value’’ 9 10 to each regulated substance.
7 EPA views ‘‘reclaim,’’ ‘‘reclaiming,’’ and
‘‘reclamation’’ as interchangeable terms.
8 As noted previously in this action, ‘‘regulated
substance’’ and ‘‘HFC’’ are used interchangeably in
this action.
9 EPA has determined that the exchange values
included in subsection (c) of the AIM Act are
identical to the global warming potentials (GWPs)
included in the Intergovernmental Panel on Climate
Change (IPCC) (2007). EPA uses the terms ‘‘global
warming potential’’ and ‘‘exchange value’’
interchangeably in this proposal.
10 IPCC (2007): Solomon, S., D. Qin, M. Manning,
R.B. Alley, T. Berntsen, N.L. Bindoff, Z. Chen, A.
Chidthaisong, J.M. Gregory, G.C. Hegerl, M.
Heimann, B. Hewitson, B.J. Hoskins, F. Joos, J.
Jouzel, V. Kattsov, U. Lohmann, T. Matsuno, M.
Molina, N. Nicholls, J. Overpeck, G. Raga, V.
Ramaswamy, J. Ren, M. Rusticucci, R. Somerville,
T.F. Stocker, P. Whetton, R.A. Wood and D. Wratt,
2007: Technical Summary. In: Climate Change

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

EPA is also authorized to designate
additional substances that meet certain
criteria as regulated substances; for
example, to be listed, the substance
must be a saturated HFC that has an
exchange value greater than 53 (which
is also the lowest exchange value for a
regulated substance listed in subsection
(c)(1) of the Act) (42 U.S.C. 7675(c)(3)).
The regulated substances addressed in
this proposal may be used neat (i.e., as
a single component substance) or in a
blend with other substances, which may
include other regulated substances and/
or substitutes for regulated substances.
The requirements proposed in this
rulemaking for regulated substances
would apply regardless of whether the
regulated substance is used neat or in
blend. In taking this approach, EPA is
not proposing that a blend that uses one
or more regulated substances is itself a
regulated substance. Rather, the Agency
is proposing to regulate the regulated
substance(s) used within a ‘‘blend of
substances’’ (42 U.S.C. 7675(c)(3)(B)(ii)),
such that the proposed requirements
would also affect equipment that uses
regulated substances in blends. This is
consistent with approaches that the
Agency has taken under the Allocation
Framework Rule (86 FR 55133, 55142,
October 5, 2021) and proposed for the
Technology Transitions Rule (87 FR
76744, 76753, December 15, 2022).11
Furthermore, subsection (h)(1) requires
EPA to promulgate regulations
addressing certain practices, processes,
or activities involving, among other
things, a regulated substance or a
substitute for a regulated substance (see
42 U.S.C. 7675(h)(1)(A)–(B)). Consistent
with those provisions, regulatory
requirements under subsection (h) may
also apply with respect to substitutes for
regulated substances, regardless of
whether the substitute is used neat or in
a blend. In taking this approach for
substitutes for a regulated substance,
EPA is not proposing that a blend that
uses one or more such substitutes that
are so regulated would be designated a
regulated substance under subsection (c)
of the Act, nor that the substitute would
be so designated. Rather, such
2007: The Physical Science Basis. Contribution of
Working Group I to the Fourth Assessment Report
of the Intergovernmental Panel on Climate Change
[Solomon, S., D. Qin, M. Manning, Z. Chen, M.
Marquis, K.B. Averyt, M. Tignor and H.L. Miller
(eds.)]. Cambridge University Press, Cambridge,
United Kingdom and New York, NY, USA https://
www.ipcc.ch/report/ar4/wg1.
11 In affirming this aspect of the HFC Allocation
Framework Rule, the D.C. Circuit held that ‘‘EPA
has statutory authority to regulate HFCs within
blends . . . because an HFC within a blend remains
a regulated HFC under the Act.’’ Heating, Air
Conditioning & Refrigeration Distributors Int’l v.
EPA, 71 F.4th 59, 64 (D.C. Cir. 2023).

PO 00000

Frm 00008

Fmt 4701

Sfmt 4702

substitutes would simply be addressed,
as appropriate, under the regulations
implementing subsection (h).
Subsection (h) of the AIM Act is
entitled ‘‘Management of regulated
substances.’’ For purposes of
maximizing reclaiming and minimizing
releases of HFCs from equipment and
ensuring the safety of technicians and
consumers, subsection (h)(1) directs
EPA to promulgate regulations to
control, where appropriate, any
practice, process, or activity regarding
the servicing, repair, disposal, or
installation of equipment that involves:
a regulated substance, a substitute for a
regulated substance, the reclaiming of a
regulated substance used as a
refrigerant, or the reclaiming of a
substitute for a regulated substance used
as a refrigerant (42 U.S.C. 7675(h)(1)).
Subsection (h)(1) further provides that
this includes requiring, where
appropriate, that any such servicing,
repair, disposal, or installation be
performed by a trained technician
meeting minimum standards, as
determined by EPA.
Under subsection (h)(2)(A) of the AIM
Act, the Agency ‘‘shall consider the use
of authority available . . . under this
section to increase opportunities for the
reclaiming of regulated substances used
as refrigerants.’’ Subsection (h)(2)(B) of
the Act further provides that a
‘‘regulated substance used as a
refrigerant that is recovered shall be
reclaimed before the regulated
substance is sold or transferred to a new
owner, except where the recovered
regulated substance is sold or
transferred to a new owner solely for the
purposes of being reclaimed or
destroyed.’’
Further, subsection (h)(3) provides
that in promulgating regulations to carry
out subsection (h), EPA may coordinate
those regulations with ‘‘any other
regulations promulgated by the [EPA]
that involve—(A) the same or a similar
practice, process, or activity regarding
the servicing, repair, disposal, or
installation of equipment; or (B)
reclaiming.’’ EPA interprets this
provision of the AIM Act as leaving the
Agency discretion as to whether or not
to coordinate regulations under
subsection (h) with other EPA
regulations, as well as with discretion to
consider the particular circumstances in
which it is appropriate to undertake
such coordination. Congress did not
define the term ‘‘coordinate’’ in the AIM
Act. EPA interprets the term, as used in
this context, as encompassing a variety
of forms of coordination that could
potentially be used for the specified
types of regulatory provisions, and
interprets (h)(3) as conveying discretion

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
to EPA to select the form or forms of
coordination that are appropriate for the
particular circumstances and regulatory
provisions under consideration in a
given action.
In this proposal, EPA describes where
and whether we are coordinating with
regulations that involve the same or
similar practices, processes, or activities
regarding the servicing, repair, disposal,
or installation of equipment or
reclaiming, and our rationale on the
appropriateness of coordinating with
these regulations. For example,
coordination could include establishing
parallel requirements under subsection
(h) as in another regulatory regime so
that a similar practice, process, or
activity in similar equipment is held to
similar standards, where appropriate. It
could also include deciding not to
establish requirements under subsection
(h) in certain situations, such as when
an existing requirement already applies
to a similar practice, process, or activity
under another set of regulations that
EPA views as adequate to also address
the purposes of subsection (h).
Coordination could also mean
coordinating rulemaking schedules or
timing for certain requirements under
subsection (h) that cover a similar
practice, process, or activity as covered
in a previous regulation and would meet
the purposes of subsection (h). Finally,
coordination may also mean
coordinating the requirements under
subsection (h) with revisions to
regulations under other statutory
authorities that address related
practices, processes, or activities, with
the goal of developing independent
regulatory regimes that operate well
together to achieve their stated goals.
Subsection (h)(4) expressly states that
any rulemaking under subsection (h)
shall not apply to a regulated substance
or a substitute for a regulated substance
that is contained in a foam. Thus, the
requirements proposed in this
rulemaking would not apply to
regulated substances or substitutes for
regulated substances when those
substances are contained in foams.
Finally, subsection (h)(5) provides
that, subject to availability of
appropriations, EPA shall establish a
grant program to award small business
grants for the purchase of new
specialized equipment for the recycling,
recovery, or reclamation of a substitute
for a regulated substance, including the
purchase of approved refrigerant
recycling equipment for recycling,
recovery, or reclamation in the service
or repair of a motor vehicle air
conditioner (MVAC) systems. Funds
have not been appropriated for this
grant program. The establishment of this

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

program is outside the scope of this
rulemaking and EPA intends to address
it in a future action.
Through this rulemaking, EPA is
proposing to establish an HFC
management program that includes
requirements for:
• Leak repair for certain equipment
that contain HFC refrigerants or their
substitutes, as applicable,
• ALD systems,
• Use of reclaimed HFCs in certain
RACHP subsectors,
• The fire suppression sector,
• Recovery of HFCs from cylinders,
and
• Container tracking.
Under subsection (h)(1), EPA is
directed to promulgate certain
regulations for ‘‘purposes of maximizing
the reclaiming and minimizing the
release of a regulated substance from
equipment and ensuring the safety of
technicians and consumers.’’ Subsection
(h) further specifies that those
regulations are to control, where
appropriate, any practice, process, or
activity regarding the servicing, repair,
disposal, or installation of equipment
that involves: a regulated substance, a
substitute for a regulated substance, the
reclaiming of a regulated substance used
as a refrigerant, or the reclaiming of a
substitute for a regulated substance used
as a refrigerant. Together, the proposed
provisions as outlined above in this
section and explained in greater detail
in the relevant sections of this NPRM
are aimed at achieving those three
purposes described in subsection (h)(1)
(i.e., (1) maximizing the reclaiming, (2)
minimizing the release of a regulated
substance from equipment, and (3)
ensuring the safety of technicians and
consumers), while also being consistent
with the scope of regulatory authority
under that provision. As EPA interprets
the statutory text, the suite of
regulations established under
subsection (h)(1) of the Act, taken
together, would be focused on serving
these purposes, though the individual
regulatory provisions under subsection
(h)(1) need not each connect to all three
purposes. This interpretation is integral
to establishing an effective regulatory
program, as some regulatory provisions
that might be considered under (h)(1)
may be highly efficacious at addressing
one of the regulatory purposes but not
address the other two, or alternatively,
may be important to support the
functioning of the regulatory program as
a whole, but not be focused on any of
the specific purposes. Accordingly, this
understanding of the statutory text will
support EPA’s ability to develop
regulations that work together to help
achieve the statutory purposes.

PO 00000

Frm 00009

Fmt 4701

Sfmt 4702

72223

Together the provisions proposed in
this action would serve the purposes
described in (h)(1), with certain
provisions more geared towards one or
two of the purposes identified in
subsection (h)(1). For example, the
provisions related to leak repair as
proposed in this action are directed at
the purpose of minimizing the release of
a regulated substance, but also help
serve the purpose of maximizing the
reclaiming of a regulated substance.
Those proposed provisions would set
requirements for when and how
equipment must be serviced and leaks
in equipment must be repaired. Taking
these actions would minimize the
release of regulated substances through
such leaks, as the sooner a leak is found
and repaired, the less HFC will be
released from that leak. Further, by
limiting the amount of regulated
substances released from leaks in
equipment, the opportunity to recover
and subsequently reclaim these
regulated substances increases. Thus,
the proposed provisions related to leak
repair also help serve the purpose of
maximizing the reclaiming of regulated
substances.
Another example is the proposed
provisions for the use of ALD systems
which would help address the purposes
articulated in subsection (h)(1)
similarly. In general, ALD systems
would alert an owner or operator of
leaks in equipment sooner than
discovering a leak due to decreased
performance by the equipment.
Identifying and repairing leaks sooner as
a result of detecting the leak with an
ALD system would further limit the
amount of regulated substance released
from the leak and maintain more of the
regulated substance within the
equipment, where it would be available
for eventual recovery and reclamation.
In addition to proposing requirements
for the management of HFCs and
substitutes, this proposal includes
provisions designed to support
enforcement and compliance, including
recordkeeping and reporting. As noted
earlier in this section, subsection
(k)(1)(C) of the AIM Act states that CAA
section 114 applies to the AIM Act and
rules promulgated under it as if the AIM
Act were included in CAA Title VI.
Thus, CAA section 114, which provides
authority to the EPA Administrator to
require recordkeeping and reporting in
carrying out provisions of the CAA, also
applies to and supports this rulemaking.
These provisions may be examples of
provisions that are integral to
establishing an effective regulatory
program, and thus are important to the
overall efficacy of the HFC management
program at achieving the purposes

E:\FR\FM\19OCP2.SGM

19OCP2

72224

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

articulated in subsection (h)(1), even if
they may be less directly connected to
those purposes if viewed in isolation.
In this action, we are also proposing
alternative RCRA standards for spent
ignitable refrigerants being recycled for
reuse. These proposed standards would
not be part of the regulations under
subsection (h)(1) of the AIM Act. Rather,
this would involve regulatory changes
to 40 CFR parts 261–271, and those
changes are proposed under the
authority of sections 2002, 3001, 3002,
3003, 3004, 3006, and 3010 of the Solid
Waste Disposal Act of 1965, as amended
by the Resource Conservation and
Recovery Act of 1976 (RCRA), as
amended by the Hazardous and Solid
Waste Amendments of 1984 (HSWA).
This statute is commonly referred to as
‘‘RCRA.’’
III. Background
A. What are HFCs?

lotter on DSK11XQN23PROD with PROPOSALS2

HFCs are anthropogenic 12 fluorinated
chemicals that have no known natural
sources. HFCs are used in a variety of
applications such as refrigeration and
air conditioning, foam blowing agents,
solvents, aerosols, and fire suppression.
HFCs are potent greenhouse gases
(GHGs) with 100-year GWPs (a measure
of the relative climatic impact of a GHG)
that can be hundreds to thousands of
times more potent than CO2.
HFC use and emissions 13 have been
growing worldwide due to the global
phaseout of ozone-depleting substances
(ODS) under the Montreal Protocol on
Substances that Deplete the Ozone
Layer (Montreal Protocol) and the
increasing use of refrigeration and airconditioning equipment globally. HFC
emissions had previously been
projected to increase substantially over
the next several decades. In 2016, in
Kigali, Rwanda, countries agreed to
adopt an amendment to the Montreal
Protocol, known as the Kigali
Amendment, which provides for a
global phasedown of the production and
consumption of HFCs. The United
States ratified the Kigali Amendment on
October 31, 2022. Global adherence to
the Kigali Amendment would
substantially reduce future emissions,
12 While the overwhelming majority of HFC
production is intentional, EPA is aware that HFC–
23 can be a byproduct associated with the
production of other chemicals, including but not
limited to hydrochlorofluorocarbon (HCFC)-22.
13 World Meteorological Organization (WMO),
Scientific Assessment of Ozone Depletion: 2022,
GAW Report No. 278, 509 pp., WMO, Geneva,
Switzerland, 2022. Available at: https://
ozone.unep.org/system/files/documents/ScientificAssessment-of-Ozone-Depletion-2022.pdf.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

leading to a peaking of HFC emissions
before 2040.14 15
Atmospheric observations of most
currently measured HFCs confirm their
abundances are increasing at
accelerating rates. Total emissions of
HFCs increased by 19 percent from 2016
to 2020 and the four most abundant
HFCs in the atmosphere, in GWPweighted terms, are HFC–134a, HFC–
125, HFC–23, and HFC–143a.16
In 2020, HFCs excluding HFC–23
accounted for a radiative forcing 17 of
0.037 W/m2. This is an increase of
nearly a third in total HFC forcing
relative to 2016. This radiative forcing
was projected to increase by an order of
magnitude to 0.25 W/m2 by 2050.18 Full
implementation of the Kigali
Amendment is expected to reduce the
future radiative forcing due to HFCs
(excluding HFC–23) to 0.13 W/m2 in
2050, which is a reduction of about 50
percent compared with the radiative
forcing projected in the business-asusual scenario of uncontrolled HFCs.19
There are hundreds of possible HFC
compounds. The 18 HFCs listed as
regulated substances by the AIM Act are
some of the most commonly used HFCs
(neat and in blends) and have high
impacts as measured by the quantity of
each substance emitted multiplied by
their respective GWPs. These 18 HFCs
are all saturated, meaning they have
only single bonds between their atoms
and therefore have longer atmospheric
lifetimes.
In the United States, HFCs are used
primarily in refrigeration and air14 Ibid.
15 A recent study estimated that global
compliance with the Kigali Amendment is expected
to lower 2050 annual emissions by 3.0–4.4 Million
Metric Tons of Carbon Dioxide Equivalent
(MMTCO2e). Guus J.M. Velders et al. Projections of
hydrofluorocarbon (HFC) emissions and the
resulting global warming based on recent trends in
observed abundances and current policies. Atmos.
Chem. Phys., 22, 6087–6101, 2022. Available at:
https://doi.org/10.5194/acp-22-6087-2022.
16 WMO, 2022.
17 Radiative forcing is expressed in units of watts
per square meter (W/m2) and is defined by the IPCC
as ‘‘a measure of the influence a factor has in
altering the balance of incoming and outgoing
energy in the Earth-atmosphere system and is an
index of the importance of the factor as a potential
climate change mechanism.’’ IPCC, 2007: Climate
Change 2007: Synthesis Report. Contribution of
Working Groups I, II and III to the Fourth
Assessment Report of the Intergovernmental Panel
on Climate Change [Core Writing Team, Pachauri,
R.K and Reisinger, A. (eds.)]. IPCC, Geneva,
Switzerland, 104 pp. https://www.ipcc.ch/report/
ar4/syr/.
18 Guus J.M. Velders, David W. Fahey, John S.
Daniel, Stephen O. Andersen, Mack McFarland,
Future atmospheric abundances and climate
forcings from scenarios of global and regional
hydrofluorocarbon (HFCs) emissions, Atmospheric
Environment, doi:10.1016/j.atmosenv.2015.10.071,
2015.
19 Ibid.

PO 00000

Frm 00010

Fmt 4701

Sfmt 4702

conditioning equipment in homes,
commercial buildings, and industrial
operations (approximately 75 percent of
total HFC use in 2018) and in air
conditioning in vehicles and
refrigerated transport (approximately 8
percent). Smaller amounts are used in
foam products (approximately 11
percent), aerosols (approximately 4
percent), fire protection systems
(approximately 1 percent), and solvents
(approximately 1 percent).20
EPA estimated in its final rule,
Allocation Framework Rule (86 FR
55116, October 5, 2021) as updated
under the final rule, Allowance
Allocation Methodology for 2024 and
Later Years (‘‘2024 Allocation Rule’’) (88
FR 46836; July 20, 2023), that phasing
down HFC production and consumption
according to the schedule provided in
the AIM Act will avoid cumulative
consumption of 3,156 million metric
tons of exchange value equivalent
(MMTEVe) of HFCs in the United States
for the years 2022 through 2036. That
estimate included both consumption as
defined in 40 CFR 84.3—i.e., with
respect to a regulated substance, bulk
production plus bulk imports minus
bulk exports—and, although not
requiring AIM Act allowances, the
amount in imported products
containing a regulated substance, less
the amount in exported products
containing a regulated substance.
Annual avoided consumption was
estimated at 42 MMTCO2e in 2022 and
282 MMTCO2e in 2036. In order to
calculate the climate benefits associated
with consumption abatement, the
consumption changes were expressed in
terms of emissions reductions. EPA
estimated that for the years 2022–2050,
the HFC phasedown will avoid
emissions of 4,560 MMTCO2e of HFCs
in the United States. The annual
avoided emissions are estimated at 22
MMTCO2e in the year 2022 and 171
MMTCO2e in 2036. More information
20 Calculations based on EPA’s Vintaging Model,
which estimates the annual chemical emissions
from industry sectors that historically used ODS,
including refrigeration and air conditioning, foam
blowing agents, solvents, aerosols, and fire
suppression. The model uses information on the
market size and growth for each end use, as well
as a history and projections of the market transition
from ODS to substitutes. The model tracks
emissions of annual ‘‘vintages’’ of new equipment
that enter into operation by incorporating
information on estimates of the quantity of
equipment or products sold, serviced, and retired
or converted each year, and the quantity of the
compound required to manufacture, charge, and/or
maintain the equipment. Additional information on
these estimates is available in U.S. EPA, April 2016.
EPA Report EPA–430–R–16–002. Inventory of U.S.
Greenhouse Gas Emissions and Sinks: 1990–2014.
Available at: https://www.epa.gov/ghgemissions/
inventory-us-greenhouse-gas-emissions-and-sinks1990-2014.

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

regarding these estimates is provided in
the Allocation Framework Rule RIA and
the RIA addendum for the 2024
Allocation Rule, which can be found in
the docket for this proposal.
B. How do HFCs affect public health
and welfare?
Elevated concentrations of GHGs
including HFCs are and have been
warming the planet, leading to changes
in the Earth’s climate including changes
in the frequency and intensity of heat
waves, precipitation, and extreme
weather events; rising seas; and
retreating snow and ice. The changes
taking place in the atmosphere as a
result of the well-documented buildup
of GHGs due to human activities are
changing the climate at a pace and scale
that threatens human health, society,
and the natural environment. In this
section, EPA is providing some
scientific background on climate change
to offer additional context for this
rulemaking and to help the public
understand the environmental impacts
of GHGs such as HFCs.
Extensive additional information on
climate change is available in the
scientific assessments and the EPA
documents that are briefly described in
this section, as well as in the technical
and scientific information supporting
them.
One of those documents is EPA’s 2009
Endangerment and Cause or Contribute
Findings for Greenhouse Gases Under
section 202(a) of the CAA (74 FR 66496,
December 15, 2009).21 In the 2009
Endangerment Finding, the
Administrator found under CAA section
202(a) that elevated atmospheric
concentrations of six key well-mixed
GHGs—CO2, methane (CH4), nitrous
oxide (N2O), HFCs, perfluorocarbons
(PFCs), and sulfur hexafluoride (SF6)—
‘‘may reasonably be anticipated to
endanger the public health and welfare
of current and future generations’’ (74
FR 66523, December 15, 2009), and the
science and observed changes have
confirmed and strengthened the
understanding and concerns regarding
the climate risks considered in the
Finding. The 2009 Endangerment
Finding, together with the extensive
scientific and technical evidence in the
supporting record, documented that
climate change caused by human
emissions of GHGs (including HFCs)
threatens the public health of the
population of the United States. It
explained that by raising average
temperatures, climate change increases
21 In describing these 2009 Findings in this
proposal, EPA is neither reopening nor revisiting
them.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

the likelihood of heat waves, which are
associated with increased deaths and
illnesses (74 FR 66497, December 15,
2009). While climate change also likely
reduces cold-related mortality, evidence
indicates that the increases in heat
mortality will be larger than the
decreases in cold mortality in the
United States (74 FR 66525, December
15, 2009). The 2009 Endangerment
Finding further explained that,
compared with a future without climate
change, climate change is expected to
increase tropospheric ozone pollution
over broad areas of the United States,
including in the largest metropolitan
areas with the worst tropospheric ozone
problems, and thereby increase the risk
of adverse effects on public health (74
FR 66525, December 15, 2009). Climate
change is also expected to cause more
intense hurricanes and more frequent
and intense storms of other types and
heavy precipitation, with impacts on
other areas of public health, such as the
potential for increased deaths, injuries,
infectious and waterborne diseases, and
stress-related disorders (74 FR 66525,
December 15, 2009). Climate change is
also expected to cause more intense
hurricanes and more frequent and
intense storms of other types and heavy
precipitation, with impacts on other
areas of public health, such as the
potential for increased deaths, injuries,
infectious and waterborne diseases, and
stress-related disorders (74 FR 66525,
December 15, 2009). Children, the
elderly, and the poor are among the
most vulnerable to these climate-related
health effects (74 FR 66498, December
15, 2009).
The 2009 Endangerment Finding also
documented, together with the
extensive scientific and technical
evidence in the supporting record, that
climate change touches nearly every
aspect of public welfare 22 in the United
States, including: changes in water
supply and quality due to increased
frequency of drought and extreme
rainfall events; increased risk of storm
surge and flooding in coastal areas and
land loss due to inundation; increases in
peak electricity demand and risks to
electricity infrastructure; predominantly
negative consequences for biodiversity
and the provisioning of ecosystem goods
and services; and the potential for
22 The

CAA states in section 302(h) that ‘‘[a]ll
language referring to effects on welfare includes,
but is not limited to, effects on soils, water, crops,
vegetation, manmade materials, animals, wildlife,
weather, visibility, and climate, damage to and
deterioration of property, and hazards to
transportation, as well as effects on economic
values and on personal comfort and well-being,
whether caused by transformation, conversion, or
combination with other air pollutants.’’ 42 U.S.C.
7602(h).

PO 00000

Frm 00011

Fmt 4701

Sfmt 4702

72225

significant agricultural disruptions and
crop failures (though offset to some
extent by carbon fertilization). These
impacts are also global and may
exacerbate problems outside the United
States that raise humanitarian, trade,
and national security issues for the
United States (74 FR 66530, December
15, 2009).
In 2016, the Administrator similarly
issued Endangerment and Cause or
Contribute Findings for GHG emissions
from aircraft under CAA section
231(a)(2)(A)(81 FR 54422, August 15,
2016).23 In the 2016 Endangerment
Finding, the Administrator found that
the body of scientific evidence amassed
in the record for the 2009 Endangerment
Finding compellingly supported a
similar endangerment finding under
CAA section 231(a)(2)(A) and also found
that the science assessments released
between the 2009 and the 2016 Findings
‘‘strengthen and further support the
judgment that GHGs in the atmosphere
may reasonably be anticipated to
endanger the public health and welfare
of current and future generations’’ (81
FR 54424, August 15, 2016).
Since the 2016 Endangerment
Finding, the climate has continued to
change, with new records being set for
several climate indicators such as global
average surface temperatures, GHG
concentrations, and sea level rise.
Moreover, heavy precipitation events
have increased in the Eastern U.S. while
agricultural and ecological drought has
increased in the Western U.S. along
with more intense and larger
wildfires.24 These and other trends are
examples of the risks discussed in the
2009 and 2016 Endangerment Findings
that have already been experienced.
Additionally, major scientific
assessments continue to demonstrate
advances in our understanding of the
climate system and the impacts that
GHGs have on public health and welfare
both for current and future generations.
According to the Intergovernmental
Panel on Climate Change’s (IPCC) Sixth
Assessment Report, ‘‘it is unequivocal
that human influence has warmed the
atmosphere, ocean and land.
Widespread and rapid changes in the
atmosphere, ocean, cryosphere and
biosphere have occurred.’’ 25 These
23 In describing these 2016 Findings in this
proposal, EPA is neither reopening nor revisiting
them.
24 An additional resource for indicators can be
found at https://www.epa.gov/climate-indicators.
25 IPCC, 2021: Summary for Policymakers. In:
Climate Change 2021: The Physical Science Basis.
Contribution of Working Group I to the Sixth
Assessment Report of the Intergovernmental Panel
on Climate Change [Masson-Delmotte, V., P. Zhai,
A. Pirani, S.L. Connors, C. Pe´an, S. Berger, N.

E:\FR\FM\19OCP2.SGM

Continued

19OCP2

72226

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

updated observations and projections
document the rapid rate of current and
future climate change both globally and
in the United States.26 27 28 29.
C. What refrigerant management
programs has EPA already established
under the Clean Air Act?
EPA is developing regulations that are
designed to establish a comprehensive
HFC management program that
maximizes the reclaiming and
minimizes the release of HFCs while
coordinating these efforts with other
similar programs. EPA has an extensive
history under CAA Title VI regulating
the sectors in which HFCs and
substitutes are typically used, including
where they are used as refrigerants and
for other purposes. For example, EPA
has regulated stationary refrigeration
applications under CAA section 608,
MVACs under CAA section 609, and has
evaluated alternative substances for
refrigeration, air conditioning, and other
uses under the Significant New
Alternatives Policy (SNAP) program
under CAA section 612.
1. National Recycling and Emission
Reduction Program (CAA Section 608)

lotter on DSK11XQN23PROD with PROPOSALS2

CAA section 608, titled ‘‘National
Recycling and Emission Reduction
Program,’’ has three main components.
First, section 608(a) requires EPA to
establish standards and requirements
regarding the use and disposal of class
I and class II substances.30 The second
component, section 608(b), requires that
the regulations issued pursuant to
subsection (a) contain requirements for
the safe disposal of class I and class II
Caud, Y. Chen, L. Goldfarb, M.I. Gomis, M. Huang,
K. Leitzell, E. Lonnoy, J.B.R. Matthews, T.K.
Maycock, T. Waterfield, O. Yelekc¸i, R. Yu and B.
Zhou (eds.)]. Cambridge University Press. In Press:
4.
26 USGCRP, 2018: Impacts, Risks, and Adaptation
in the United States: Fourth National Climate
Assessment, Volume II [Reidmiller, D.R., C.W.
Avery, D.R. Easterling, K.E. Kunkel, K.L.M. Lewis,
T.K. Maycock, and B.C. Stewart (eds.)]. U.S. Global
Change Research Program, Washington, DC, USA,
1515 pp. doi: 10.7930/NCA4.2018. Available at:
https://nca2018.globalchange.gov.
27 IPCC, 2021.
28 National Academies of Sciences, Engineering,
and Medicine, 2019. Climate Change and
Ecosystems. Washington, DC: The National
Academies Press. Available at: https://doi.org/
10.17226/25504.
29 NOAA National Centers for Environmental
Information, Monthly Global Climate Report for
Annual 2022, published online January 2023,
retrieved on March 1, 2023 from https://
www.ncei.noaa.gov/access/monitoring/monthlyreport/global/202213.
30 A class I or class II substance is an ozonedepleting substance (ODS) listed at 40 CFR part 82,
subpart A, appendix A or appendix B, respectively.
This document refers to class I and class II
substances collectively as ozone-depleting
substances, or ODS.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

substances. The third component,
section 608(c), prohibits the knowing
venting, release, or disposal of ODS
refrigerants 31 and their substitutes 32 in
the course of maintaining, servicing,
repairing, or disposing of appliances or
industrial process refrigeration (IPR).
EPA refers to this third component as
the ‘‘venting prohibition.’’ Section
608(c)(1) establishes the venting
prohibition for ODS refrigerants
effective July 1, 1992, and it includes an
exemption from this prohibition for
‘‘[d]e minimis releases associated with
good faith attempts to recapture and
recycle or safely dispose’’ any such
substance. Section 608(c)(2) extends
608(c)(1) to substitute refrigerants,
effective November 15, 1995. Section
608(c)(2) also includes a provision that
allows the Administrator to exempt a
substitute refrigerant from the venting
prohibition if he or she determines that
such venting, release, or disposal of a
substitute refrigerant ‘‘does not pose a
threat to the environment.’’
EPA first issued regulations under
CAA section 608 on May 14, 1993 (58
FR 28660, ‘‘1993 Rule’’), to establish the
national refrigerant management
program for ODS refrigerants recovered
during the service, repair, or disposal of
air conditioning and refrigeration
appliances. Since then, EPA has revised
these regulations, which are found at 40
CFR part 82, subpart F (‘‘subpart F’’),
through subsequent rulemakings
published between 1994 and 2020.
Regulations issued under CAA section
608 include, among other things, the
venting prohibition and sales
restrictions for refrigerants (40 CFR
82.154); safe disposal of appliances (40
CFR 82.155); proper practices for the
evacuation of refrigerant from
appliances (40 CFR 82.156); required
practices for appliance maintenance and
leak repair (40 CFR 82.157); standards
for recovery and/or recycling equipment
(40 CFR 82.158); technician and
reclaimer certification requirements (40
CFR 82.161 and 82.164, respectively);
and reporting and recordkeeping
requirements (40 CFR 82.166).
Appendices A–E at 40 CFR part 82,
subpart F provide, among other things,
specifications for refrigerants,
performance standards for refrigerant
recovery, recycling, and/or reclaiming
equipment, and standards for becoming
a certifying program for technicians.
31 The term ‘‘ODS refrigerant’’ as used in this
document refers to any refrigerant or refrigerant
blend in which one or more of the components is
a class I or class II substance.
32 The term ‘‘substitute’’ for the purposes of the
regulations under section 608 of the CAA is defined
at 40 CFR 82.152.

PO 00000

Frm 00012

Fmt 4701

Sfmt 4702

As it pertains to regulations under
section 608 of the CAA, EPA is using
the term ‘‘non-exempt substitute’’ in
this document to refer to substitute
refrigerants that have not been
exempted from the venting prohibition
under CAA section 608(c)(2) and
§ 82.154(a) in the relevant end-use.
Similarly, the term ‘‘exempt substitute’’
refers to a substitute refrigerant that has
been exempted from the venting
prohibition under section 608(c)(2) and
§ 82.154(a) in the relevant end-use. A
few exempt substitutes have been
exempted from the venting prohibition
in all applications. Notably, in 2016,
EPA published a rule (81 FR 82272,
November 18, 2016) updating existing
refrigerant management requirements
and extending the full set of the subpart
F refrigerant management requirements,
which prior to that rule applied only to
ODS refrigerants,33 to non-exempt
substitute refrigerants, such as HFCs
and hydrofluoroolefins (HFOs). Among
the subpart F requirements extended to
non-exempt substitute refrigerants in
the 2016 CAA section 608 Rule were
provisions that restrict the servicing of
appliances and the sale of refrigerant to
certified technicians, specify the proper
evacuation levels before opening an
appliance, require the use of certified
refrigerant recovery and/or recycling
equipment, require that refrigerant be
recovered from appliances prior to
disposal, require that appliances have a
servicing aperture or process stub to
facilitate refrigerant recovery, require
that refrigerant reclaimers be certified to
reclaim and sell used refrigerant, and
establish standards for technician
certification programs, recovery
equipment, and established technical
standards for the purity of reclaimed
refrigerant. The 2016 CAA section 608
Rule also extended the appliance
maintenance and leak repair provisions,
currently codified at 40 CFR 82.157, to
appliances that contain 50 or more
pounds of non-exempt substitute
refrigerant. The 2016 CAA section 608
Rule additionally made numerous
revisions to improve the efficacy of the
refrigerant management program as a
whole, such as revisions of regulatory
provisions for increased clarity and
readability, and removal of provisions
that had become obsolete.
EPA reviewed the 2016 CAA section
608 Rule, focusing in particular on
whether the Agency had the statutory
authority to extend the full set of
33 The only 40 CFR part 82, subpart F
requirements that applied to substitute refrigerants
prior to the 2016 CAA section 608 Rule were the
venting prohibition and certain exemptions from
that prohibition, as set forth in § 82.154(a).

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

subpart F refrigerant management
regulations to non-exempt substitute
refrigerants, such as HFCs and HFOs. In
2018, EPA proposed to withdraw the
extension of the provisions of 40 CFR
82.157 to appliances using only nonexempt substitute refrigerants.34 (83 FR
49332, October 1, 2018). In 2020, EPA
published a final rule (85 FR 14150,
March 11, 2020) withdrawing only the
extension of the leak repair
requirements—including requirements
for repairing leaks, conducting leak
inspections, and keeping applicable
records—for appliances containing only
such substitute refrigerants. Other
subpart F provisions that were extended
to substitute refrigerants in the 2016
CAA section 608 Rule, as mentioned
above, were left in place for appliances
containing only ODS substitute
refrigerants. There were no changes to
any of the regulatory requirements for
ODS in the 2020 CAA section 608 Rule.
Petitions for judicial review were filed
on the 2016 CAA section 608 Rule and
separately on the 2020 CAA section 608
Rule. Two industry coalitions, National
Environmental Development
Association’s Clean Air Project (NEDA/
CAP) and the Air Permitting Forum
(APF), filed petitions for judicial review
of the 2016 CAA section 608 Rule in the
U.S. Court of Appeals for the District of
Columbia Circuit (D.C. Circuit) in 2017.
APF also filed an administrative
petition for reconsideration before EPA
regarding the 2016 CAA section 608
Rule.35 In 2020, the Natural Resources
Defense Council (NRDC) and a group of
state and municipal petitioners 36 filed
petitions for judicial review of the 2020
CAA section 608 Rule in the D.C.
Circuit. NEDA/CAP also filed an
administrative petition before EPA
regarding the 2020 CAA section 608
Rule, which is styled as a petition for
reconsideration or in the alternative a
petition for rulemaking.37 These four
petitions for review were all
consolidated under Case No. 20–1150
(D.C. Cir.) in July of 2020, and in August
of 2020 the court severed four issues
raised in NEDA/CAP and APF’s
34 Ozone-depleting refrigerants and appliances
that contain or use any amount of ODS continue to
be subject to all applicable subpart F requirements,
including those in 40 CFR 82.157.
35 APF Petition for Reconsideration, January
2017, available: https://www.regulations.gov/
document?D=EPA-HQ-OAR-2015-0453-0228.
36 The state and municipal petitioners are the
State of New York, State of Connecticut, State of
Illinois, State of Maine, State of Maryland, State of
Minnesota, State of New Jersey, State of Oregon,
Commonwealth of Virginia, State of Washington,
District of Columbia, and City of New York.
37 NEDA/CAP Petitions for Reconsideration/
Petition for Rulemaking, May 2020, available:
https://www.regulations.gov/document?D=EPA-HQOAR-2017-0629-0345.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

administrative petitions for
reconsideration and assigned them to a
different case (Case No. 20–1309, D.C.
Cir.). Both cases are now being held in
abeyance.
On January 20, 2021, President Biden
issued an ‘‘Executive Order on
Protecting Public Health and the
Environment and Restoring Science to
Tackle the Climate Crisis,’’ which
directed review of certain agency
actions taken between January 20, 2017,
and January 20, 2021. Exec. Order No.
13,990, 86 FR 7037 (Jan. 20, 2021). The
2020 CAA section 608 Rule was one of
the actions subject to review under this
Executive Order. In light of both EPA’s
review of the 2020 CAA section 608
Rule consistent with the Executive
Order and the Agency’s consideration of
subsection (h) of the AIM Act, EPA has
decided to initiate a rulemaking that,
among other things, would involve
evaluating the application of leak repair
requirements to appliances using HFCs
and substitute refrigerants under
subsection (h). Because this proposed
action is rooted in EPA’s authority
under the AIM Act, EPA is not
reopening or otherwise addressing the
question of its authority for such
requirements under the CAA in this
proposal.
2. Motor Vehicle Air Conditioning
Servicing Program (CAA Section 609)
CAA section 609 directs EPA to issue
regulations establishing standards and
requirements for the servicing of
MVACs. For purposes of the regulations
implementing CAA section 609, ‘‘motor
vehicle air conditioners’’ 38 is defined at
40 CFR 82.32(d) as mechanical vapor
compression refrigeration equipment
used to cool the driver’s or passenger’s
compartment of any motor vehicle. This
definition further states that it is not
intended to encompass certain
hermetically sealed refrigeration
systems used on motor vehicles for
refrigerated cargo and the air
conditioning systems on passenger
buses. For purposes of the section 609
regulations, motor vehicle is defined at
40 CFR 82.32(c) as any vehicle which is
self-propelled and designed for
transporting persons or property on a
street or highway, including but not
limited to passenger cars, light-duty
38 A related definition for ‘‘MVAC-like appliance’’
is found at 40 CFR 82.152: MVAC-like appliance
means a mechanical vapor compression, open-drive
compressor appliance with a full charge of 20
pounds or less of refrigerant used to cool the
driver’s or passenger’s compartment of off-road
vehicles or equipment. This includes, but is not
limited to, the air-conditioning equipment found on
agricultural or construction vehicles. This
definition is not intended to cover appliances using
R–22 refrigerant.

PO 00000

Frm 00013

Fmt 4701

Sfmt 4702

72227

vehicles, and heavy-duty (HD) vehicles.
This definition further provides that it
does not include a vehicle where final
assembly of the vehicle has not been
completed by the original equipment
manufacturer (OEM).
Under CAA section 609 and
regulations that implement it, no person
repairing or servicing motor vehicles for
consideration (e.g., payment or
bartering) may perform any service on
an MVAC that involves the refrigerant 39
without properly using approved
refrigerant recovery or recovery and
recycling equipment, and no such
person may perform such service for
consideration unless such person has
been properly trained and certified.
Section 609 also contains restrictions on
the sale or distribution, or offer for sale
or distribution, of class I and class II
substances suitable for use as a
refrigerant in MVACs in containers of
less than 20 pounds, except to a person
performing service for consideration on
MVAC systems.
Regulations issued under CAA section
609, codified at 40 CFR part 82, subpart
B, include, among other things,
prohibited and required practices for
persons repairing and servicing MVACs
for consideration (40 CFR 82.34);
requirements for refrigerant handling
equipment (40 CFR 82.36); approval
processes for independent standards
testing organizations (40 CFR 82.38);
requirements for certifications that any
person servicing or repairing MVACs for
consideration must submit to EPA, and
related recordkeeping requirements (40
CFR 82.42). Appendices A–F at 40 CFR
part 82, subpart B, provide minimum
operating requirements for equipment
used for the recovery, recycling and/or
recharging of refrigerant used in
MVACs.
In 1992, EPA published a rule (57 FR
31242, July 14, 1992) under CAA
section 609 establishing standards and
requirements for servicing of MVACs
and restricting the sale of small
containers of ODS. The regulations,
which appear in 40 CFR part 82, subpart
B, require persons who repair or service
MVACs for consideration to be certified
in refrigerant recovery and recycling
and to properly use approved
equipment when performing service
involving the refrigerant. Consistent
with the definition in CAA section
609(b)(1), ‘‘refrigerant’’ is defined in
39 Section 609(b)(1) defines the term
‘‘refrigerant,’’ ‘‘[a]s used in this section’’, to mean
‘‘any class I or class II substance used in a motor
vehicle air conditioner. Effective 5 years after
November 15, 1990, the term ‘refrigerant’ shall also
include any substitute substance.’’ EPA’s
implementing regulations include a parallel
definition of this term at 40 CFR 82.32(f).

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

72228

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

subpart B as any class I or class II
substance used in MVACs, and to
include any substitute substance
effective November 15, 1995. The 1992
CAA section 609 Rule also defined
approved refrigerant recycling
equipment as equipment certified by the
Administrator or an approved
organization as meeting either one of the
standards in 40 CFR 82.36. Such
equipment extracts and recycles
refrigerant or extracts but does not
recycle refrigerant, allowing that
refrigerant to be subsequently recycled
on-site or to be sent off-site for
reclamation.40 EPA based the regulatory
equipment standards in subpart B on
those developed by SAE. They cover
service procedures for
dichlorodifluoromethane (CFC–12 or R–
12) recover/recycle equipment (SAE
J1989, issued in October 1989), test
procedures to evaluate R–12 recover/
recycle equipment (SAE J1990, issued in
October 1989 and revised in 1991) and
a purity standard for recycled R–12
refrigerant (SAE J1991, issued in
October 1989). Only equipment certified
to meet the standards set forth in
appendix A at 40 CFR part 82, subpart
B, or that meet the criteria for
substantially identical equipment, was
approved under CAA section 609 for
use in the servicing of MVACs at that
time.
EPA issued another rule under CAA
section 609 in 1997 (62 FR 68026,
December 30, 1997) in response to the
increasing use of substitute refrigerants,
particularly 1,1,1,2-tetrafluoroethane
(HFC–134a or R–134a). The 1997 CAA
section 609 Rule established standards
and requirements for the servicing of
MVACs that use any refrigerant other
than R–12. The rule also stated that
refrigerant (whether R–12 or a
substitute) recovered from motor
vehicles at motor vehicle disposal
facilities may be re-used in the MVAC
service sector only if it has been
properly recovered and recycled by
persons who are either employees,
owners, or operators of the facilities, or
technicians certified under CAA section
609, using approved equipment. This
differs from the rules established under
CAA section 608, in which no person
may sell or distribute, or offer for sale
or distribution, used refrigerant
(including both ODS and non-exempt
substitutes such as HFCs) unless it has
first been reclaimed by a certified
reclaimer (40 CFR 82.154(d)). The 1997
40 Equipment that extracts and recycles refrigerant
is referred to as recover/recycle equipment.
Equipment that extracts but does not recycle
refrigerant is referred to as equipment that recovers
but does not recycle refrigerant, or as recover-only
equipment.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

CAA section 609 Rule also established
conditions under which owners and
operators of motor vehicle disposal
facilities may sell refrigerant recovered
from such vehicles to technicians
certified under CAA section 609.
3. Significant New Alternatives Policy
Program (CAA Section 612)
EPA identifies and evaluates
substitutes for ODS in certain industrial
sectors, including RACHP; aerosols; and
foams. To a very large extent, HFCs are
used in the same sectors and subsectors
as where ODS historically have been
used. Under SNAP, EPA evaluates
acceptability of substitutes for ODS
based primarily on the potential human
health and environmental risks, relative
to other substances used for the same
purpose. In so doing, EPA assesses
atmospheric effects such as ozone
depletion potential (ODP) and GWP,
exposure assessments, toxicity data,
flammability, and other environmental
impacts. This assessment could take a
wide range of forms, such as a
theoretical evaluation of the properties
of the substitute, a computer simulation
of the substitute’s performance in the
sector or subsector, lab-scale (table-top)
evaluations of the substitute, or
equipment tests under various
conditions.
IV. How is EPA proposing to regulate
the management of HFCs and their
substitutes?
As described in the following
sections, EPA is proposing to establish
a program for the management of HFCs
under subsection (h) of the AIM Act that
includes requirements regarding several
topics, including leak repair
requirements for certain refrigerantcontaining appliances and use of ALD
systems for certain equipment; use of
reclaimed HFCs in certain sectors or
subsectors for the initial charge or
installation of equipment and for
servicing and/or repair of existing
equipment; the servicing, repair,
disposal, or installation of fire
suppression equipment that contains
HFCs, as well as requirements related to
technician training in the fire
suppression sector; recovery of HFCs
from cylinders; and container tracking
for HFCs that could be used in the
servicing, repair, and/or installation of
equipment. EPA intends for the
proposed provisions for these topics to
be able to stand independently from one
another and has designed them
accordingly. For example, the proposed
leak repair requirements for refrigerantcontaining appliances are designed to
operate independently from the
proposed requirements for servicing,

PO 00000

Frm 00014

Fmt 4701

Sfmt 4702

repair, disposal, or installation of fire
suppression equipment.
A. What definitions is EPA proposing to
implement under subsection (h)?
The Allocation Framework Rule (86
FR 55116, October 5, 2021) established
regulatory definitions at 40 CFR part 84,
subpart A (‘‘subpart A’’) to implement
the framework for, and begin the
regulatory phasedown of, HFCs under
the AIM Act, and EPA has finalized
certain revisions to the definitions
section of subpart A at 40 CFR 84.3 (see
88 FR at 46836, July 20, 2023).41 The
proposed Technology Transitions Rule
(87 FR 76738, December 15, 2022)
would establish additional regulatory
definitions in 40 CFR part 84, subpart B
(‘‘subpart B’’) as part of its first
proposed rulemaking related to
implementing subsection (i) of the AIM
Act, entitled ‘‘Technology Transitions’’.
EPA anticipates that any final
Technology Transitions rule under
subsection (i) would be available in the
docket for that action. To maintain
consistency, except as otherwise
explained in this proposal, EPA
generally intends to use terms in this
proposal, and in the new subpart C
which is to be established by this rule,
as they are defined in subpart A. Thus,
for terms not defined in this subpart but
that are defined in subpart A (40 CFR
84.3), the definitions in 40 CFR 84.3
would apply. Although EPA has not yet
finalized the regulatory definitions that
would apply under the Technology
Transitions program, we also anticipate
considering any regulatory definitions
that may be finalized at subpart B as we
are developing this rulemaking under
subsection (h) of the AIM Act in an
effort to promote consistency where
appropriate. Accordingly, we anticipate
that for terms that are not defined in
subparts A or C, but that are defined in
subpart B, the subpart B definitions
would apply under the new subpart C.
EPA welcomes comment on all
definitions proposed in this action and
in particular, whether it should adopt
different definitions for any of the terms
defined in subpart A or proposed to be
defined in subpart B for purposes of this
rulemaking under subsection (h) of the
AIM Act. While EPA is seeking
41 The proposed revisions in 40 CFR 84.3 are
described in EPA’s proposed Allowance Allocation
Methodology for 2024 and Later Years rule, which
was published on October 21, 2022 (87 FR 66372).
This rulemaking focuses on the second phase of the
HFC phasedown and, among other things, proposes
to establish the allocation methodology for the
‘‘general pool’’ of HFC production and consumption
allowances for 2024 through 2028. Available at:
https://www.epa.gov/climate-hfcs-reduction/
proposed-rule-allowance-allocation-methodology2024-and-later-years.

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
commercial buildings. Comfort cooling
appliances include but are not limited
to chillers, commercial split systems,
and packaged roof-top units.
Commercial refrigeration means the
refrigerant-containing appliances used
in the retail food and cold storage
warehouse subsectors. Retail food
appliances include the refrigeration
equipment found in supermarkets,
convenience stores, restaurants and
other food service establishments. Cold
storage includes the refrigeration
equipment used to store meat, produce,
1. Which definitions is EPA proposing
dairy products, and other perishable
to adopt that parallel definitions in 40
goods.
CFR 82.152?
Component, as it relates to a
EPA is proposing to adopt definitions refrigerant-containing appliance, means
for the following terms that are similar
a part of the refrigerant circuit within an
to the definitions for the same terms
appliance including, but not limited to,
used in 40 CFR 82.152, which includes
compressors, condensers, evaporators,
definitions implementing section 608 of receivers, and all of its connections and
the CAA, with only limited changes as
subassemblies.
are needed to conform with the AIM Act
Custom-built means that the
or this proposed action. EPA is
industrial process refrigeration
proposing to use this approach for these equipment or any of its components
previously defined terms because they
cannot be purchased and/or installed
are used in the same or substantially
without being uniquely designed,
similar manner as in 40 CFR part 82,
fabricated and/or assembled to satisfy a
subpart F. Specifically, 40 CFR 82.152
specific set of industrial process
includes definitions implementing
conditions.
section 608 in CAA Title VI, which is
Disposal, as it relates to a refrigerantrelevant to HFC management. As noted
containing appliance, means the process
in section III.A. of this proposal, HFCs
leading to and including:
were intentionally developed to replace
(1) The discharge, deposit, dumping
class I and class II ODS and are used in
or placing of any discarded refrigerantthe same applications. The approach
containing appliance into or on any
EPA is proposing to implement
land or water;
subsection (h) of the AIM Act is
(2) The disassembly of any refrigerantinformed by the Agency’s experience
containing appliance for discharge,
with CAA Title VI. For example, EPA’s
deposit, dumping or placing of its
current regulations under section 608 of discarded component parts into or on
the CAA require certain refrigerant
any land or water;
management practices by reclaimers,
(3) The vandalism of any refrigerantthose who buy or sell refrigerant,
containing appliance such that the
technicians, owners and operators of
refrigerant is released into the
refrigerant-containing appliances, and
environment or would be released into
others. Because many in the regulated
the environment if it had not been
community are subject to both the AIM
recovered prior to the destructive
Act and CAA section 608, maintaining
activity;
the same or similar definitions, where
(4) The disassembly of any refrigerantconsistent with AIM Act requirements,
containing appliance for reuse of its
would provide consistency to those that component parts; or
have been using and are familiar with
(5) The recycling of any refrigerantthese terms from CAA section 608
containing appliance for scrap.
As with all the proposed definitions,
regulations. Because EPA’s authority
this proposed definition of ‘‘disposal,’’
under the AIM Act extends beyond the
as it relates to a refrigerant-containing
sectors covered by the regulations at 40
appliance, is limited to how the term is
CFR part 82, subpart F, where it is
would be used in 40 CFR part 84
necessary for clarity, EPA is specifying
subpart C.
where these definitions specifically
Follow-up verification test, as it
apply to the terms as they refer to
relates to a refrigerant-containing
refrigerant-containing appliances.
Comfort cooling means the refrigerant- appliance, means those tests that
involve checking the repairs to an
containing appliances used for air
conditioning to provide cooling in order appliance after a successful initial
verification test and after the appliance
to control heat and/or humidity in
has returned to normal operating
occupied facilities including but not
characteristics and conditions to verify
limited to residential, office, and

lotter on DSK11XQN23PROD with PROPOSALS2

comment on the definitions as proposed
for the new subpart C, in this
rulemaking, the Agency is not
reopening, taking comment, or
proposing to modify the definitions as
finalized in subpart A or those proposed
under subpart B. The Agency also
welcomes comment on the terms that
are newly defined for this proposed rule
under subsection (h) as well as if there
are any additional definitions that are
needed to ensure a common
understanding of terminology.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

PO 00000

Frm 00015

Fmt 4701

Sfmt 4702

72229

that the repairs were successful.
Potential methods for follow-up
verification tests include, but are not
limited to, the use of soap bubbles as
appropriate, electronic or ultrasonic
leak detectors, pressure or vacuum tests,
fluorescent dye and black light, infrared
or near infrared tests, and handheld gas
detection devices.
Full charge, as it relates to a
refrigerant-containing appliance, means
the amount of refrigerant required for
normal operating characteristics and
conditions of the appliance as
determined by using one or a
combination of the following four
methods:
(1) Use of the equipment
manufacturer’s determination of the full
charge;
(2) Use of appropriate calculations
based on component sizes, density of
refrigerant, volume of piping, and other
relevant considerations;
(3) Use of actual measurements of the
amount of refrigerant added to or
evacuated from the appliance, including
for seasonal variances; and/or
(4) Use of an established range based
on the best available data regarding the
normal operating characteristics and
conditions for the appliance, where the
midpoint of the range will serve as the
full charge.
Industrial process refrigeration means
complex customized refrigerantcontaining appliances that are directly
linked to the processes used in, for
example, the chemical, pharmaceutical,
petrochemical, and manufacturing
industries. This sector also includes
industrial ice machines, appliances
used directly in the generation of
electricity, and ice rinks. Where one
appliance is used for both industrial
process refrigeration and other
applications, it will be considered
industrial process refrigeration
equipment if 50 percent or more of its
operating capacity is used for industrial
process refrigeration.
Initial verification test, as it relates to
a refrigerant-containing appliance,
means those leak tests that are
conducted after the repair is finished to
verify that a leak or leaks have been
repaired before refrigerant is added back
to the appliance.
Leak rate, as it relates to a refrigerantcontaining appliance, means the rate at
which an appliance is losing refrigerant,
measured between refrigerant charges.
The leak rate is expressed in terms of
the percentage of the appliance’s full
charge that would be lost over a 12month period if the current rate of loss
were to continue over that period. The
rate must be calculated using one of the
following methods. The same method

E:\FR\FM\19OCP2.SGM

19OCP2

72230

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
number of pounds of refrigerant the
appliance normally contains at full
charge;
(ii) Step 2. Take the shorter of the
number of days that have passed since
the last day refrigerant was added or 365
days and divide that number by 365
days;

must be used for all appliances subject
to the leak repair requirements located
at an operating facility.
(1) Annualizing Method.
(i) Step 1. Take the number of pounds
of refrigerant added to the appliance to
return it to a full charge, whether in one
addition or if multiple additions related
to same leak, and divide it by the

Leak rate
pounds of refrigerant added
•---------(% per year)
pounds <£ refrigerant
in full charge
(2) Rolling Average Method.
(i) Step 1. Take the sum of the pounds
of refrigerant added to the appliance
over the previous 365-day period (or
over the period that has passed since the
last successful follow-up verification

X

(iii) Step 3. Take the number
calculated in Step 1 and divide it by the
number calculated in Step 2; and
(iv) Step 4. Multiply the number
calculated in Step 3 by 100 to calculate
a percentage. This method is
summarized in the following formula:

_ _ _36_5_daysl,
__y,e_a_r_ _ _ x lOOo/o
shorter of: # days since

refrigerant last added or 365 days

test showing all identified leaks in the
appliance were repaired, if that period
is less than one year);
(ii) Step 2. Divide the result of Step
1 by the pounds of refrigerant the

appliance normally contains at full
charge; and
(iii) Step 3. Multiply the result of Step
2 by 100 to obtain a percentage. This
method is summarized in the following
formula:

pounds of refrigerant added. over past 365 days

(or since the last succes.,ftd follow-up verification t~1 showing all identified
=

leaks in the appUan<..-e we.re repaired, if that period is les..i.; than one year)

lotter on DSK11XQN23PROD with PROPOSALS2

(% per year)

pom1ds of re&ige:rant in fuH charge

As discussed in section IV.C.4. of this
proposal, EPA is clarifying that owner/
operators that wish to preemptively
repair leaks and then run the leak rate
calculation once refrigerant has been
added to the repaired appliance for the
follow-up verification test may do so,
assuming all applicable time windows
are adhered to. Additionally, owner/
operators may use the amount of
refrigerant lost in lieu of the amount of
refrigerant added to run the leak rate
calculation prior to adding refrigerant if
they have a valid method of determining
the amount of refrigerant lost (e.g.,
evacuating the appliance and comparing
the amount of refrigerant evacuated to
the full charge).
Mothball, as it relates to a refrigerantcontaining appliance, means to evacuate
refrigerant from an appliance, or the
affected isolated section or component
of an appliance, to at least atmospheric
pressure, and to temporarily shut down
that appliance.
MVAC-like appliance means a
mechanical vapor compression, opendrive compressor refrigerant-containing
appliance with a full charge of 20
pounds or less of refrigerant used to
cool the driver’s or passenger’s
compartment of off-road vehicles or
equipment. This includes, but is not
limited to, the air-conditioning

VerDate Sep<11>2014

18:48 Oct 18, 2023

x.100%

Jkt 262001

equipment found on agricultural or
construction vehicles. This definition is
intended to have the same meaning as
defined in 40 CFR 82.152.
This proposed definition deviates
slightly from the definition of ‘‘MVAClike appliance’’ at 40 CFR 82.152 to
conform to the AIM Act grant of
authority. As noted, this definition is
intended to have the same meaning as
defined 40 CFR 82.152.
Normal operating characteristics and
conditions, as it relates to a refrigerantcontaining appliance, means appliance
operating temperatures, pressures, fluid
flows, speeds, and other characteristics,
including full charge of the appliance,
that would be expected for a given
process load and ambient condition
during normal operation. Normal
operating characteristics and conditions
are marked by the absence of atypical
conditions affecting the operation of the
appliance.
Refrigerant circuit, as it relates to a
refrigerant-containing appliance, means
the parts of an appliance that are
normally connected to each other (or are
separated only by internal valves) and
are designed to contain refrigerant.
Retire, as it relates to a refrigerantcontaining appliance, means the
removal of the refrigerant and the
disassembly or impairment of the
refrigerant circuit such that the

PO 00000

Frm 00016

Fmt 4701

Sfmt 4702

appliance as a whole is rendered
unusable by any person in the future.
Seasonal variance, as it relates to a
refrigerant-containing appliance, means
the removal of refrigerant from an
appliance due to a change in ambient
conditions caused by a change in
season, followed by the subsequent
addition of an amount that is less than
or equal to the amount of refrigerant
removed in the prior change in season,
where both the removal and addition of
refrigerant occurs within one
consecutive 12-month period.
Technician, as it relates to any person
who works with refrigerant-containing
appliances, means any person who in
the course of servicing, repair, or
installation of a refrigerant-containing
appliance (except MVACs) could be
reasonably expected to violate the
integrity of the refrigerant circuit and
therefore release refrigerants into the
environment. Technician also means
any person who, in the course of
disposal of a refrigerant-containing
appliance (except small appliances as
defined in 40 CFR 82.152, MVACs, and
MVAC-like appliances), could be
reasonably expected to violate the
integrity of the refrigerant circuit and
therefore release refrigerants from the
appliances into the environment.
Activities reasonably expected to violate

E:\FR\FM\19OCP2.SGM

19OCP2

EP19OC23.000 EP19OC23.001

Leakrate

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

the integrity of the refrigerant circuit
include but are not limited to: Attaching
or detaching hoses and gauges to and
from the appliance; adding or removing
refrigerant; adding or removing
components; and cutting the refrigerant
line. Activities such as painting the
appliance, rewiring an external
electrical circuit, replacing insulation
on a length of pipe, or tightening nuts
and bolts are not reasonably expected to
violate the integrity of the refrigerant
circuit. Activities conducted on
refrigerant-containing appliances that
have been properly evacuated pursuant
to § 82.156 are not reasonably expected
to release refrigerants unless the activity
includes adding refrigerant to the
appliance. Technicians could include
but are not limited to installers,
contractor employees, in-house service
personnel, and owners and/or operators
of refrigerant-containing appliances.
This proposed definition deviates
slightly from the definition of
‘‘technician’’ at 40 CFR 82.152 to
conform to the AIM Act grant of
authority. EPA is also proposing a
definition of ‘‘certified technician’’ to
make it clear that persons certified per
40 CFR 82.161 are considered ‘‘certified
technicians’’ for the purposes of these
regulations. In section VIII. of this
preamble, EPA is taking advanced
comment on considerations for a future
rulemaking on technician training.
2. Which definitions is EPA proposing
to adopt that parallel definitions in 40
CFR 82.32?
EPA is proposing to adopt definitions
for the following defined terms that are
similar to the definitions used in 40 CFR
82.32 with limited changes as are
needed to conform with the AIM Act or
this proposal. EPA is proposing this
approach for these defined terms
because they are used in the same or
substantially similar manner as in 40
CFR part 82, subpart B—Servicing of
Motor Vehicle Air Conditioners under
the CAA. Section 609 in Title VI of the
CAA is relevant to refrigerant
management, as it directs EPA to
establish standards and requirements
regarding the servicing of MVACs. For
example, under CAA section 609 and
regulations that implement it, no person
repairing or servicing motor vehicles for
consideration (e.g., payment or
bartering) may perform any service on
an MVAC that involves the refrigerant
without properly using approved
refrigerant recovery or recovery and
recycling equipment, and no such
person may perform such service for
consideration unless such person has
been properly trained and certified.
Because many within the regulated

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

community are subject to both the AIM
Act and CAA section 609, maintaining
the same definitions, where consistent
with AIM Act requirements, would
provide consistency to those that have
been using and are familiar with these
terms from section 609. EPA welcomes
comment on whether any of these terms
should be further updated or modified
for purposes of this rulemaking under
subsection (h) of the AIM Act.
Motor vehicle as used in this subpart
means any vehicle which is selfpropelled and designed for transporting
persons or property on a street or
highway, including but not limited to
passenger cars, light-duty vehicles, and
heavy-duty vehicles. This definition
does not include a vehicle where final
assembly of the vehicle has not been
completed by the original equipment
manufacturer.
Motor vehicle air conditioners
(MVAC) means mechanical vapor
compression refrigerant-containing
appliances used to cool the driver’s or
passenger’s compartment of any motor
vehicle. This definition is intended to
have the same meaning as defined in 40
CFR 82.32.
3. What other definitions is EPA
proposing to adopt?
EPA is also proposing to establish
definitions for new terms that are
applicable only under 40 CFR part 84,
subpart C, and do not have a
counterpart in the definitions under 40
CFR part 84, subpart A and that we do
not anticipate will have a counterpart in
any definitions that may be finalized in
subpart B. The definitions that EPA is
proposing to include in 40 CFR 84.102
for application to 40 CFR part 84,
subpart C are as follows:
Certified technician means a
technician that has been certified per
the provisions at 40 CFR 82.161.
Equipment means any device that
contains, uses, detects or is otherwise
connected or associated with a regulated
substance or substitute for a regulated
substance, including any refrigerantcontaining appliance, component, or
system.
Fire suppression equipment means
any device that is connected to or
associated with a regulated substance or
substitute for a regulated substance,
including blends and mixtures,
consisting in part or whole of a
regulated substance or a substitute for a
regulated substance, and that is used for
fire suppression purposes. This term
includes any such equipment,
component, or system. This term does
not include mission-critical military end
uses and systems used in deployable
and expeditionary situations. This term

PO 00000

Frm 00017

Fmt 4701

Sfmt 4702

72231

also does not include space vehicles as
defined in 40 CFR 84.3.
EPA is proposing to explicitly state
that the definition of ‘‘fire suppression
equipment’’ for purposes of subsection
(h) does not include mission-critical
military end uses and systems used in
deployable and expeditionary
applications, as well as space vehicles.
This proposed exclusion is based on
EPA’s understanding that there are
situations in which the unique design
and use of mission-critical military end
uses and systems used in deployable
and expeditionary situations and space
vehicles make it impossible to recover
fire suppression agent during the
service, repair, disposal, or installation
of the equipment.
Fire suppression technician means
any person who in the course of
servicing, repair, disposal, or
installation of fire suppression
equipment could be reasonably
expected to violate the integrity of the
fire suppression equipment and
therefore release fire suppressants into
the environment.
Installation means the process of
setting up equipment for use, which
may include steps such as completing
the refrigerant circuit, including
charging equipment with a regulated
substance or substitute for a regulated
substance, or connecting cylinders
containing a regulated substance or a
substitute for a regulated substance to a
total flooding fire suppression system,
such that the equipment can function
and is ready for use for its intended
purpose.
This definition of ‘‘installation’’ for
purposes of subsection (h) is different
from how the term is used in the
definitions in the proposed Technology
Transitions Rule (87 FR 76738,
December 15, 2022). Specifically, the
definition for ‘‘manufacture’’ in that
proposed rule covers the installation of
certain appliances in certain subsectors
(e.g., commercial refrigeration and IPR).
In discussing the definition for
‘‘manufacture’’ in that proposed rule,
EPA described that for these types of
appliances, complex installation
processes may be required, and the
appliance is typically manufactured and
field-charged with refrigerant on-site.
Further, appliances such as these that
are field charged or have the refrigerant
circuit completed on-site are considered
manufactured at the point when
installation of all the components and
other parts are completed, and the
appliance is fully charged with
refrigerant and able to operate. For
purposes of the proposed Technology
Transitions Rule (87 FR 76738,
December 15, 2022), the installation

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

72232

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

date of such equipment is relevant to
the proposed GWP limit-based
restriction and compliance date for the
applicable subsector(s).
The types of installations covered
under the proposed definition of
‘‘manufacture’’ in the proposed
Technology Transitions Rule (87 FR
76738, December 15, 2022) would be
included in the proposed definition of
‘‘installation’’ in this proposal under
subsection (h), and other types of
installation would also be included in
the definition included in this proposal.
EPA is proposing a broad definition of
‘‘installation’’ under subsection (h) in
order to ensure that the Agency’s
implementation of subsection (h)(1)
encompasses the practices, processes or
activities that are relevant to the
installation of equipment that would be
regulated under this proposal.
Leak inspection, as it relates to a
refrigerant-containing appliance, means
the examination of an appliance to
detect and determine the location of
refrigerant leaks. Potential methods
include, but are not limited to,
ultrasonic tests, gas-imaging cameras,
bubble tests as appropriate, or the use of
a leak detection device operated and
maintained according to manufacturer
guidelines. Methods that determine
whether the appliance is leaking
refrigerant but not the location of a leak,
such as standing pressure/vacuum
decay tests, sight glass checks, viewing
receiver levels, pressure checks, and
charging charts, must be used in
conjunction with methods that can
determine the location of a leak.
This definition generally aligns with
the corresponding definition at 40 CFR
82.152, except EPA is proposing to add
the ‘‘detect and’’ language. In EPA’s
view, including ‘‘detect and’’ clarifies
that a leak inspection is not just to
determine the precise location of a
known leak, but also to detect
additional leaks that may be
contributing to a leak rate exceedance.
Owner or operator means any person
who owns, leases, operates, or controls
any equipment, or who controls or
supervises any practice, process, or
activity that is subject to any
requirement pursuant to this subpart.
Recover means the process by which
a regulated substance, or where
applicable, a substitute for a regulated
substance, is removed, in any condition,
from equipment; and stored in an
external container, with or without
testing or processing the regulated
substance or substitute for a regulated
substance.
In the regulations implementing
under subsection (h), EPA is proposing
to define the term ‘‘recover’’ as it is

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

defined in subsection (b)(10) of the AIM
Act for HFCs and to extend the
regulatory definition to substitutes for
HFCs. The term ‘‘recover’’ is defined in
the AIM Act at subsection (b)(10) as
‘‘the process by which a regulated
substance’’ is ‘‘removed, in any
condition, from equipment’’ and ‘‘stored
in an external container, with or
without testing or processing the
regulated substance.’’ EPA is proposing
to include that the term recover also
apply to substitutes for regulated
substances in these regulations to
support implementation of subsection
(h)(1), which authorizes certain
regulations involving substitutes for
regulated substitutes. Substitutes for
regulated substances are used in the
same applications and often the same
equipment as the regulated substances
that they are being used in place of.
Thus, recovering the substitute for a
regulated substance would also occur,
as appropriate, during the servicing,
repair, or disposal of equipment and
could be addressed by regulations under
subsection (h)(1). Thus, including
substitutes for regulated substances in
the regulatory definition of ‘‘recover’’
provides clarity and supports
application of these regulations to both
regulated substances and their
substitutes.
Recycling, when referring to fire
suppression or fire suppressants, means
the testing and/or reprocessing of
regulated substances used in the fire
suppression sector to certain purity
standards.
Refrigerant, for purposes of this
subpart, means any substance, including
blends and mixtures, consisting in part
or whole of a regulated substance or a
substitute for a regulated substance that
is used for heat transfer purposes,
including those that provide a cooling
effect.
Refrigerant-containing appliance
means any device that contains and uses
a regulated substance or substitute for a
regulated substance as a refrigerant
including any air conditioner, motor
vehicle air conditioner, refrigerator,
chiller, or freezer. For a system with
multiple circuits, each independent
circuit is considered a separate
appliance.
As the terms ‘‘appliance’’ and
‘‘refrigerant-containing appliance’’ are
not defined terms under the AIM Act,
the regulatory definition will provide
clarity as to what types of equipment
would be subject to certain proposed
requirements. EPA intends this term to
be a subset of the broader category of
‘‘equipment’’ subject to subsection (h) of
the AIM Act. EPA notes that this
proposed definition differs from the

PO 00000

Frm 00018

Fmt 4701

Sfmt 4702

definition of ‘‘appliance’’ under section
608 of the CAA. Sections 601 and 608
of the CAA specified that an appliance
‘‘is used for household or commercial
purposes,’’ and that phrase also appears
in the definition of ‘‘appliance’’ in 40
CFR 82.152. The AIM Act has no
analogous provision. Accordingly, EPA
is not proposing to include that phrase
in defining ‘‘refrigerant-containing
appliance’’ for purposes of
implementing subsection (h). In keeping
with the application of Title VI of the
CAA (e.g., under sections 608 and 612),
EPA is defining a ‘‘refrigerantcontaining appliance’’ to consist of an
independent circuit. The independent
circuit provides the desired cooling or
heating effect, typically consisting of a
compressor, condenser, evaporator, and
metering device in an enclosed
refrigerant loop. EPA notes that a given
piece of equipment could contain
multiple independent circuits and thus
be considered as multiple, separate
‘‘refrigerant-containing appliances.’’ For
instance, some food retail cases have
been made with multiple independent
circuits, each one containing the
maximum 150-gram charge limit of
propane, thus allowing a single case to
address a higher refrigeration load. Also,
some household refrigerator-freezers
have been produced with two
independent circuits, one handling the
refrigerator and another the freezer.
Refrigerant-containing equipment
means equipment as defined in this
subpart that contains, uses, or is
otherwise connected or associated with
a regulated substance or substitute for a
regulated substance that is used as a
refrigerant. This definition includes
refrigerant-containing components,
refrigerant-containing appliances, and
MVAC-like appliances. This term does
not include mission-critical military end
uses and systems used in deployable
and expeditionary situations. This term
also does not include space vehicles as
defined in 40 CFR 84.3.
EPA is proposing to explicitly state
that the definition of ‘‘refrigerantcontaining equipment’’ under
subsection (h) does not include missioncritical military end uses and systems
used in deployable and expeditionary
applications, as well as space vehicles.
This proposed exclusion is based on
EPA’s understanding that there are
situations in which the unique design
and use of mission-critical military end
uses and systems used in deployable
and expeditionary situations and space
vehicles make it impossible to recover
refrigerant during the service, repair,
disposal, or installation of the
equipment. Likewise, requiring
adherence to the leak repair and other

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
proposed provisions for refrigerantcontaining equipment in this proposal
in an active military zone of
engagement, including systems used in
deployable and expeditionary
situations, could lessen the military
effectiveness of the equipment.
Likewise, requiring leak repair and
other provisions in this proposal for
such equipment in space vehicles could
lessen their effectiveness.
Repackager means an entity who
transfers 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. An entity that services
system cylinders for use in fire
suppression equipment and returns the
same regulated substances to the same
system cylinder it was recovered from
after the system cylinder is serviced is
not a repackager.
Repair, for purposes of this subpart
and as it relates to a particular leak in
a refrigerant-containing appliance,
means making adjustments or other
alterations to that refrigerant-containing
appliance that have the effect of
stopping leakage of refrigerant from that
particular leak.
Reprocess means using procedures,
such as filtering, drying, distillation and
other chemical procedures to remove
impurities from a regulated substance or
a substitute for a regulated substance.
Retrofit, as it relates to a refrigerantcontaining appliance, means to convert
an appliance from one refrigerant to
another refrigerant. Retrofitting includes
the conversion of the appliance to
achieve system compatibility with the
new refrigerant and may include, but is
not limited to, changes in lubricants,
gaskets, filters, driers, valves, o-rings or
appliance components. Retrofits
required under this subpart shall be
done to a refrigerant with a lower global
warming potential. EPA is proposing
this definition as similar to the parallel
definition in 40 CFR 82.152, with an
additional provision requiring that
retrofits performed for compliance with
this rulemaking must involve switching
to a lower GWP refrigerant. EPA is
proposing to include this provision as
part of this definition for the purposes
of this action so that if an owner or
operator chooses to retrofit a refrigerantcontaining appliance in lieu of repairing
a leak, the retrofit must use a refrigerant
that is a lower GWP in the original
equipment. One implication of
including this provision would be that
if there are cases in which switching to
a lower GWP refrigerant is not an option
(e.g., for reasons such as safety
considerations or a refrigerant with a
lower GWP is not suitable for use in a

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

particular refrigerant-containing
appliance), a retrofit would not be
available as a compliance option for the
particular refrigerant-containing
appliance. Additional detail on the
requirements of performing a retrofit
and developing a retrofit plan can be
found in section IV.C.3.f. of this
preamble.
Stationary refrigerant-containing
equipment means refrigerant-containing
equipment, as defined in this subpart,
that is not a motor vehicle air
conditioner or MVAC-like appliance, as
defined in this subpart.
Substitute for a regulated substance
means a substance that can be used in
equipment in the same or similar
applications as a regulated substance, to
serve the same or a similar purpose,
including but not limited to a substance
used as a refrigerant in a refrigerantcontaining appliance or as a fire
suppressant in fire suppression
equipment, provided that the substance
is not a regulated substance or an ozonedepleting substance.
EPA is proposing for the purposes of
this action to define a substitute for a
regulated substance to make clear that
substitutes in this rulemaking would not
include regulated substances or ozonedepleting substances. Examples of a
substitute for a regulated substance
include but are not limited to HFOs,
hydrocarbons (e.g., propane, isobutane),
ammonia (NH4), and CO2. A substitute
for a regulated substance may be used
neat or in a blend. Subsection (h)
includes authority for EPA to develop
regulations involving regulated
substances and substitutes for regulated
substances. Specifically, subsection
(h)(1) expressly provides that EPA is to
promulgate certain regulations
involving a regulated substance, a
substitute for a regulated substance, the
reclaiming of a regulated substance as a
refrigerant, or the reclaiming of a
substitute for a regulated substance as a
refrigerant. EPA acknowledges that this
definition of ‘‘substitute for a regulated
substance’’ differs from the definition of
the similar term, ‘‘substitute’’ 42 in the
proposed Technology Transitions Rule
(87 FR 76738, December 15, 2022). EPA
is proposing this definition for purposes
of implementing subsection (h), because
specifying that substitutes for a
42 The proposed definition for substitute in the
proposed Technology Transitions rule is: ‘‘any
substance, product, or alternative manufacturing
process, whether existing or new, that is used, or
intended for use, in a sector or subsector with a
lower global warming potential than the regulated
substance, whether neat or used in a blend, to
which a use restriction would apply.’’ (See 87 FR
76738, 76754, December 15, 2022). EPA further
notes that it has not made final decisions for the
Technology Transitions rule.

PO 00000

Frm 00019

Fmt 4701

Sfmt 4702

72233

regulated substance are only those
substances that do not contain HFCs
will draw a distinction that is helpful
for certain provisions in this proposal,
as EPA is proposing to control certain
practices, processes, or activities as they
relate to regulated substances differently
from compared to how they relate to
substitutes for regulated substances. As
EPA has noted in the Executive
Summary at section I.A., the terms
‘‘HFC’’ and ‘‘regulated substance’’ are
used interchangeably in this preamble.
Similarly, throughout this preamble,
EPA notes that the term ‘‘substitute for
an HFC’’ may be used interchangeably
with ‘‘substitute for a regulated
substance’’ in this preamble.
Virgin regulated substance means any
regulated substance that has not had any
bona fide use in equipment except for
those regulated substances contained in
the heel or the residue of a container
that has bona fide use in the servicing,
repair, or installation of equipment.
EPA is proposing to add this
definition of ‘‘virgin regulated
substance’’ to make it clear that
introduction of a regulated substance to
equipment, such as a refrigerantcontaining appliance or fire suppression
equipment, solely to convert the
regulated substance to ‘‘used’’ regulated
substance in order to circumvent the
intended requirements of this proposal
is not permissible. This scenario, where
regulated substance is charged to
equipment, such as a refrigerantcontaining appliance or fire suppression
equipment, and recovered without any
bona fide use, was brought to EPA’s
attention by stakeholders including
during public stakeholder meetings as
the agency developed this proposal.43 A
regulated substance that has had no
bona fide use in equipment would be
considered a virgin regulated substance
unless it was from the heel or residue
of a container that did have a bona fide
use in the servicing, repair, or
installation of equipment.
B. Which sectors and subsectors is EPA
considering addressing under
subsection (h)?
Subsection (h) of the AIM Act
provides EPA authority to promulgate
regulations to control, where
appropriate, any practice, process, or
activity related to the servicing, repair,
disposal, or installation of equipment
that involves HFCs or their substitutes,
or the reclaiming of HFCs or their
substitutes used as refrigerants. EPA
43 EPA held stakeholder meetings for public input
on November 9, 2022 and March 16, 2023 as well
as solicited feedback through a webinar for the EPA
GreenChill Partnership program on April 12, 2023.

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

72234

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

interprets this provision to include
authority to regulate, as appropriate,
practices, processes, or activities related
to any sector, subsector, or application
where a regulated substance or a
substitute for a regulated substance is
used in equipment. Regulated
substances and their substitutes are
typically used in the RACHP sector as
a refrigerant in a vapor compression
cycle to cool and/or dehumidify a
substance or space, like a refrigerator
cabinet, room, office building, or
warehouse. Regulated substances and/or
their substitutes may also be used in
other sectors, subsectors, or
applications, such as aerosols, fire
suppression, solvent cleaning, foam
blowing, and others. However, as noted
in section II.B. of this proposal,
subsection (h)(4) expressly provides that
any rulemaking under subsection (h)
shall not apply to a regulated substance
or a substitute for a regulated substance
that is contained in a foam. Thus, EPA
is not proposing any requirements for
regulated substances or their substitutes
when they are contained in foams in
this proposal. Accordingly, EPA
interprets its authority under subsection
(h) to include promulgating regulations
that control the types of practices,
processes, or activities identified in
subsection (h)(1) in any of those sectors,
subsectors, or applications, with the
limitation that we do not interpret our
regulatory authority under subsection
(h) to extend to HFCs or substitutes for
HFCs when they are contained in foams.
EPA is proposing requirements for
equipment in certain sectors or
subsectors as described in sections
IV.C.–F. of this preamble. While EPA
interprets subsection (h) to provide
authority that could be applied to
practices, processes, or activities related
to equipment across a broad range of
sectors, subsectors, or applications that
involve regulated substances and/or
their substitutes, at this time EPA is
focusing on certain sectors and
subsectors in the requirements proposed
in the rulemaking. In future
rulemakings, EPA may consider
establishing requirements for equipment
in other sectors, subsectors, or
applications that involve regulated
substances and/or their substitutes. The
relevant sections of this preamble
describe the requirements that EPA is
proposing for equipment in certain
sectors and subsectors and how EPA
understands these sectors and
subsectors as relevant for these
proposed requirements.
Where EPA is proposing requirements
for certain sectors or subsectors, we
intend to be consistent with how those
sectors or subsectors are understood

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

under other provisions of the AIM Act
and/or CAA Title VI that address the
same sector or subsector, such as
subsection (i) of the AIM Act, through
the Technology Transitions program.
EPA issued a proposed Technology
Transition rulemaking on December 15,
2022 (87 FR 76738) which provides
additional detail on many of the same
sectors and subsectors for which we are
proposing certain requirements under
subsection (h). Although EPA has not
yet made final decisions regarding those
sectors or subsectors under subsection
(i) of the AIM Act, we also anticipate
considering how those sectors or
subsectors are addressed in the final
Technology Transitions rulemaking in
developing this rulemaking under
subsection (h) of the AIM Act.
EPA is proposing certain provisions,
as described later in this preamble, for
certain equipment in applicable
subsectors within the RACHP sector in
this action. Such subsectors within the
RACHP sector include: residential and
light commercial air conditioning and
heat pumps; cold storage warehouses;
IPR; stand-alone retail food
refrigeration; supermarket systems;
refrigerated transport; and automatic
commercial ice makers. EPA is also
proposing certain provisions for
equipment in the fire suppression
sector, as described later in this
preamble. Not all provisions proposed
in this rulemaking would apply to each
of the sectors and subsectors identified
here. For example, EPA is proposing
certain requirements for the use of
reclaimed HFCs in residential and light
commercial AC and heat pumps.
However, EPA is proposing to exempt
residential and light commercial AC and
heat pump equipment in the universe of
refrigerant-containing appliances
subject to proposed leak repair
requirements. Additional detail can be
found in section IV.C.2. of this
preamble.
EPA is requesting comment on all
aspects of this proposed rule. Where
EPA is proposing requirements for
equipment in certain sectors and
subsectors, EPA is providing additional
detail noting specific areas for which we
are seeking comment.
C. How is EPA proposing to address leak
repair?
1. Background
As noted above, subsection (h) of the
AIM Act includes provisions focused on
the management of regulated
substances. Specifically, subsection
(h)(1) directs EPA, for ‘‘purposes of
maximizing reclaiming and minimizing
the release of a regulated substance from

PO 00000

Frm 00020

Fmt 4701

Sfmt 4702

equipment and ensuring the safety of
technicians and consumers,’’ to
‘‘promulgate regulations to control,
where appropriate, any practice,
process, or activity regarding the
servicing, repair, disposal, or
installation of equipment (including
requiring, where appropriate, that any
such servicing, repair, disposal, or
installation be performed by a trained
technician meeting minimum standards,
as determined by the Administrator)
that involves’’: ‘‘a regulated substance’’;
‘‘a substitute for a regulated substance’’;
‘‘the reclaiming of a regulated substance
used as a refrigerant’’; or ‘‘the
reclaiming of a substitute for a regulated
substance used as a refrigerant.’’
Among other things, EPA interprets
its regulatory authority under
subsection (h)(1) to include authority to
establish requirements related to the
detection, prevention, and repair of
leaks for equipment containing HFCs or
substitutes for HFCs (whether the
equipment uses the HFC or substitute
for an HFC neat or in a blend with other
substances). EPA understands the
statutory phrase ‘‘regulations to control
. . . any practice, process, or activity’’
as including authority for rules
governing both the manner in which a
practice, process, or activity occurs (e.g.,
standards that must be met, timing of
the process or activity, etc.), as well as
rules requiring that a practice, process,
or activity be undertaken. Regulations
establishing requirements for leak
prevention, detection, and repair would
control practices, processes, and
activities regarding the servicing, repair,
disposal, or installation of equipment.
For example, detecting and fixing leaks
in equipment would be considered an
activity regarding the servicing or repair
of equipment. Similarly, leak prevention
and/or inspection and repair practices,
processes, or activities would be
conducted regarding the servicing and/
or repair of equipment.
The requirements proposed in this
rulemaking also relate to the statutory
purposes identified in subsection (h)(1).
Requirements related to the detection,
inspection, repair, and prevention of
leaks for equipment containing HFCs
(whether used neat or in a blend) or
their substitutes would serve the
statutory purpose of minimizing the
release of regulated substances from
equipment. For example, leak detection,
inspection, and repair requirements
help minimize such releases because the
sooner a leak is found and repaired, the
less HFC will be released. Further, leak
prevention requirements would
minimize HFC releases by avoiding
potential leaks in the first place.
Additionally, regulations establishing

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
requirements for leak prevention,
detection, and repair would also further
the statutory purpose of maximizing the
reclamation of regulated substances by
reducing the amount of HFC released
from equipment and thus increasing the
amount of HFC that is available to be
recovered and reclaimed. Any regulated
substance used in equipment that is
released through leaks and escapes to
the atmosphere reduces the amount of
HFC remaining in the equipment that
could otherwise be recovered and
reclaimed for further use.
Further, as the phasedown of the
production and consumption of HFCs as
required by the AIM Act progresses,
reclaimed HFCs will play a key role in
the amount of available HFCs for
equipment that will continue to use
HFCs (e.g., for servicing). Reclaimed
HFCs will also be important in avoiding
potential economic disruption that
could be associated with the scarcity of
virgin HFCs as well as avoid stranding
existing equipment that will need to be
serviced using HFCs. Generally, overall
refrigerant management in appliances
helps to maintain the health of the
appliances. This can be crucial for
refrigerant-containing appliances in the
RACHP subsectors that are relevant to
handling food products, such as
supermarket systems, refrigerated
transport, and other food retail
subsectors where the intended function
is to ensure food products are
maintained at appropriate temperatures
to avoid spoilage and food waste. In
2021, 344,000 tons of food were lost in
the United States due to equipment
issues in the retail and food service
subsectors.44 Successful repair of leaks
and avoiding leaks are a few ways to
help ensure that these appliances are
operating efficiently and as intended
and can help to avoid unnecessary food
waste.
In considering requirements related to
leak prevention, detection, and repair
under subsection (h) of the AIM Act,
EPA further notes that subsection (h)(3)
expressly provides that EPA may
coordinate regulations promulgated to
carry out subsection (h) with any other
regulations promulgated by EPA that
involve the same or a similar practice,
process, or activity regarding the
servicing, repair, disposal, or
installation of equipment, or reclaiming.
Accordingly, the Agency considered
various potential approaches to
coordinating the proposed regulations
under subsection (h) related to leak
44 ReFED, Insights Engine Food Waste Monitor,
May 2023, available at: https://insightsengine.refed.org/food-wastemonitor?view=overview&year=2021.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

prevention, detection, and repair with
regulations previously promulgated
under CAA section 608, given they
relate to the same or similar practices,
processes, or activities for refrigerantcontaining appliances containing ODS.
In particular, during the development of
this NPRM, EPA considered the
requirements at 40 CFR 82.157.
As noted in the background section of
this preamble at section III.C.1., all
provisions in 40 CFR part 82, subpart F
except leak repair currently apply to
appliances containing ODS substitutes
including regulated HFCs used neatly or
in blends. EPA is not proposing any
requirements duplicative of those in this
action. However, EPA is proposing to
establish leak repair requirements for
refrigerant-containing appliances using
HFCs and/or substitutes for HFCs.
As described in the definitions
section of this proposal at section
IV.A.3., EPA is proposing to define
‘‘equipment’’ as including appliances.
In the context of subsection (h), EPA
considers that appliances would be a
subset within the broader category of
equipment. EPA has also proposed to
define ‘‘refrigerant-containing
appliance’’ in section IV.A.3. In this
action, the Agency generally refers to
the proposed leak repair requirements
as applying to refrigerant-containing
appliances. In the context of the
proposed leak repair requirements,
appliances are considered types of
equipment that are used in subsectors
within the RACHP sector. EPA is
proposing leak repair provisions for
certain refrigerant-containing appliances
with a refrigerant that contains HFCs or
certain substitutes for HFCs (whether
the equipment uses the HFC or certain
substitutes for an HFC neat or in a blend
with other substances) under subsection
(h) of the AIM Act. If finalized, these
regulations would be codified at 40 CFR
part 84.106.
2. Scope of the Proposed Leak Repair
Requirements
EPA is proposing leak repair
requirements for certain refrigerantcontaining appliances containing HFC
(whether used neat or in a blend) or
certain HFC substitute refrigerants
under subsection (h) of the AIM Act.
These requirements are being proposed
as part of implementing subsection
(h)(1) of the AIM Act, as these
provisions would control practices,
processes, or activities regarding
servicing or repair of appliances, which
are a type of equipment, and would
involve a regulated substance or a
substitute for a regulated substance. The
requirements proposed are similar to
leak repair provisions for appliances

PO 00000

Frm 00021

Fmt 4701

Sfmt 4702

72235

containing an ODS refrigerant found at
40 CFR 82.157,45 but are not identical.
In particular, EPA is proposing to apply
the leak repair requirements under
subsection (h) of the AIM Act to
appliances containing HFCs or certain
substitutes for HFCs with lower charge
sizes. Where EPA is proposing to
require the same or similar practice,
process or activity for applicable
appliances containing HFC or
substitutes for HFCs as is required
under 40 CFR 82.157 for appliances
containing an ODS refrigerant, EPA is
proposing to adopt regulatory text under
40 CFR part 84, where appropriate, that
is consistent with the parallel provision
in 40 CFR 82.157. Where the proposed
requirements are different, the
regulatory text will differ.
a. Appliances containing which
refrigerants would be subject to the
proposed leak repair requirements?
EPA is proposing to include HFCs
(including blends that contain HFCs)
and certain substitutes for HFCs under
the provisions related to leak repair
under subsection (h) of the AIM Act. As
noted previously, HFCs are potent GHGs
with GWPs that can be hundreds to
thousands of times more potent than
CO2. As noted in the background section
of this preamble (section III.A), global
HFC use and emissions have been
increasing since the ODS phaseout and
their increasing use in RACHP
equipment.46 Provisions related to leak
repair for equipment that use HFCs and
their substitutes are critical to mitigating
emissions of HFCs and meeting the
purpose stated in subsection (h)(1) of
the AIM Act to minimize releases of
regulated substances from equipment.
As mentioned, the AIM Act includes a
list of 18 HFCs as regulated substances
and provides authority for the
Administrator to add additional HFCs if
certain criteria are met, including that
the GWP of the substance is above 53.47
Certain substitutes for HFCs have GWPs
that are below that of the lowest GWP
of a substance that EPA could list as a
regulated substance under subsection
(c)(3)(A)(i)(II) of the AIM Act (i.e., a
GWP of greater than 53). EPA is
proposing to apply the leak repair
requirements to refrigerant-containing
appliances containing an HFC
45 In this proposed rulemaking, EPA is not
reopening the leak repair requirements at 40 CFR
82.157 or proposing any changes to them.
46 WMO, 2022.
47 Subsection (c)(3)(A) provides the criteria by
which the Administrator may designate a substance
not included in the list of regulated substances in
subsection (c)(1); these criteria include that the
substance must be a chemical substance that is a
saturated hydrofluorocarbon and have an exchange
value (i.e., GWP) greater than 53.

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

72236

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

refrigerant or a substitute for HFC
refrigerants that have a GWP above 53
(whether the HFC or substitute for an
HFC is used neat or in a blend). EPA is
proposing this cutoff for the leak repair
provisions; however, other provisions in
this proposal would apply to any
substitute for an HFC without any GWP
threshold, unless otherwise specified.
In subsection (h) of the AIM Act,
Congress directed EPA to control, where
appropriate, any practice, process, or
activity regarding the servicing, repair,
disposal, or installation of equipment
involving HFCs or their substitutes. EPA
is proposing that for the leak repair
provisions under subsection (h), it is
appropriate at this time to only address
substitutes for HFCs (whether used neat
or in a blend) with GWPs that are
greater than the cutoff Congress
provided for listing new regulated
substances (i.e., a GWP of 53). The
agency notes that currently the vast
majority of HFC refrigerants and
refrigerant blends containing HFCs in
equipment have much higher GWPs,
often 20 to 50, or even more than 75
times as high as this cutoff. EPA
acknowledges that over time the
refrigerant market is likely to shift, and
that this proposal is based on the
current and near-term anticipated
market for equipment that contains
HFCs and substitutes for HFCs. Thus,
we view it as appropriate to focus the
proposed leak repair requirements on
HFCs and substitutes for HFCs with
GWPs above 53 in this rulemaking,
whether the HFC or substitute is used
neat or in a refrigerant blend. We further
note that EPA may in a future
rulemaking consider establishing leak
repair requirements for substitutes for
HFCs and blends containing substitutes
for HFCs with a GWP at or below 53.
For example, if EPA becomes aware of
concerns related to this limitation as the
refrigerant market shifts to lower GWP
substitutes for HFCs, EPA could
consider revisiting this requirement.
To determine whether an appliance
containing a substitute for a regulated
substance is required to comply with
the proposed leak repair provisions,
EPA is proposing to adopt the similar
process for determining the GWP of
regulated substances and/or their
substitutes as described in the proposed
Technology Transitions Rule (87 FR
76738, 76750, December 15, 2022). The
GWP of a regulated substance would use
the GWP as related to the exchange
value listed in subsection (c) of the AIM
Act and codified as appendix A to 40
CFR part 84.48 For the GWP of
48 EPA noted in section III.A. of this preamble
that the exchange values for the regulated HFCs

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

substitutes for regulated substances,
EPA is proposing to use IPCC’s Fourth
Assessment Report (AR4) 100-year
GWPs wherever possible given they are
numerically the same as the exchange
values in the AIM Act and because EPA
considers such an approach to be less
complicated. For hydrocarbons listed in
Table 2–15 of AR4, EPA is proposing to
use the net GWP value. For substances
for which no GWP is provided in AR4,
EPA is proposing to use the 100-year
GWP listed in World Meteorological
Organization (WMO) 2022.49 For any
substance not listed in either of these
sources, EPA is proposing to use the
GWP of the substance in Table A–1 to
40 CFR part 98, as it exists on a
specified date, such as the date any final
rule based on this proposal is published
in the Federal Register, if such
substance is specifically listed in that
table. EPA is aware of two potential
substitutes for regulated substances that
might be addressed by the proposed
requirements that are not listed in these
three sources, trans-dichloroethylene
(HCO-1130(E)) and HCFO-1224yd(Z)
and is proposing to set these GWPs to
be five 50 and one,51 respectively, for the
purposes of this proposal. For any other
substance not listed in the above three
source documents, EPA is proposing
that the default GWPs as shown in Table
A–1 to 40 CFR part 98, as it exists on
a specified date, such as the date any
final rule based on this proposal is
published in the Federal Register, shall
be used. In the event that the hierarchy
outlined in this section does not provide
a GWP (i.e., the substance in question is
not listed in the three documents, is not
one of the two for which EPA is
proposing GWPs, is not listed in Table
A–1 to 40 CFR part 98 and does not fit
within any of the default GWPs
provided in Table A–1 to 40 CFR part
98), EPA is proposing to use a GWP of
zero. In any case where a GWP value is
preceded with a less than (<), very less
than (<<), greater than (>),
approximately (∼), or similar symbol in
the source document, which is used to
determine the GWP, EPA is proposing
that the value shown shall be used.
Applying the proposed provisions
related to leak repair under subsection
(h) to HFC substitutes with a GWP
greater than 53, but not those with a
listed in subsection (c) of the AIM Act are
numerically identical to the 100-year GWPs of each
substance, as given in the Errata to Table 2.14 of
the IPCC’s Fourth Assessment Report (AR4) and
Annexes A, C, and F of the Montreal Protocol.
Available at: https://www.ipcc.ch/site/assets/
uploads/2018/05/ar4-wg1-errata.pdf.
49 WMO, 2022.
50 81 FR 32244 (May 23, 2016).
51 84 FR 64766 (November 25, 2019).

PO 00000

Frm 00022

Fmt 4701

Sfmt 4702

GWP at or below 53, would result in
certain lower GWP refrigerants (e.g.,
single component HFO refrigerants) that
are covered by the venting prohibition
at 40 CFR 82.154(a)(1) to be excluded
from coverage under the proposed
subsection (h) leak repair provisions, as
they have a GWP lower than 53. The
proposed leak repair requirements
would still apply where any substitute
for an HFC is a component in a
refrigerant blend that contains an HFC
or another substitute for an HFC with a
GWP above 53. This would be true even
if one or more of the components of the
refrigerant blend is a substitute for an
HFC that is exempted from the venting
prohibition under 40 CFR 82.154(a)(1).
In describing the practical effects of our
proposed approach, we are not
reopening, taking comment on, or
proposing to modify any regulatory
provisions in 40 CFR part 82 in this
NPRM.
In the case that a refrigerantcontaining appliance uses a refrigerant
blend that contains an ODS and an HFC
or a substitute for an HFC with a GWP
above 53, EPA is proposing that the
owner or operator of such appliance be
required to simultaneously meet the
leak repair provisions promulgated
under CAA section 608 at 40 CFR
82.157 and the proposed provisions in
this action, to the extent that they are
applicable. EPA notes that many of the
provisions in this proposed action are
similar to those in 40 CFR 82.157,
which should help alleviate any
concerns about duplicative
requirements. However, the provisions
proposed in this NPRM (as described in
the following section) would apply to
refrigerant-containing appliances with a
charge size of 15 pounds or more of a
refrigerant that contains an HFC or a
substitute for an HFC with a GWP above
53. The requirements at 40 CFR 82.157
apply to appliances containing an ODS
with a charge size at or above 50
pounds. If such appliances use a
refrigerant that also contains an HFC or
an HFC substitute that has a GWP above
53, they would be required to meet the
leak repair requirements proposed in
this NPRM, to ensure that the
requirements applicable to the HFCs
and HFC substitutes are also met. An
appliance with a charge size of 15
pounds or greater containing a
refrigerant blend that was made up of
ODS and an HFC or a substitute for an
HFC with a GWP above 53 would also
be required to meet the proposed
provisions in this action, as a way of
ensuring that the requirements that
apply to the HFCs or certain substitutes
for HFCs contained in the equipment

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

are met. However, because these
appliances would not meet the charge
size threshold under 40 CFR 82.157,
those requirements would not apply
even though they contain ODS
refrigerants.
EPA intends for the leak repair
requirements in this proposal to be
sufficiently consistent with the
requirements at 40 CFR 82.157 such that
both sets of requirements could be met
for refrigerant-containing appliances
that use a refrigerant blend containing
an ODS and an HFC or a substitute for
an HFC with a GWP above 53 and that
have full charge of 50 or more pounds
of refrigerant. EPA requests comment on
whether there is an impediment to a
refrigerant containing-appliance
simultaneously complying with both
sets of requirements.
Leak repair provisions for appliances
containing HFCs and certain substitutes
for HFCs as refrigerants as proposed in
this document should minimize
emissions. EPA describes emission
reductions in the draft TSD titled
Analysis of the Economic Impact and
Benefits of the Proposed Rule and in in
section VI. of this proposal.
EPA is requesting comment on all
aspects of this proposal. In particular,
EPA is seeking comment on the use of
a GWP cutoff to apply the proposed leak
repair requirements to equipment
containing an HFC or a substitute for an
HFC as a refrigerant, used neat or in
blends. EPA also seeks comment on
using a GWP above 53 as the cutoff,
including, for example, comments on
whether EPA should consider a lower
GWP cutoff.
b. Appliances with what charge size
would be subject to the proposed leak
repair requirements?
EPA is proposing to apply the leak
repair requirements under subsection
(h) of the AIM Act to refrigerantcontaining appliances with a charge size
of 15 pounds or more of a refrigerant
that contains an HFC or a substitute for
an HFC with a GWP above 53, with
specific exemptions. This is a lower
threshold than the threshold for the leak
repair requirements established under
CAA section 608, as the leak repair
provisions at 40 CFR 82.157 apply to
appliances containing 50 or more
pounds of ODS refrigerant, a threshold
that was established in 1993. EPA is
aware of technological achievements
that, in many cases, have resulted in
smaller charge sizes for cooling loads.
For example, microchannel heat
exchangers are one such technology
used to reduce refrigerant charge size in
equipment. Equipment using different
refrigerants may also have a lower

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

charge size; for example, in air
conditioning equipment, the refrigerant
charge size for HFC–32 is approximately
10–20 percent less than that of R–
410A.52 As another example, EPA also
understands that in certain cases,
remodels or expansions of supermarket
systems can increase capacity while not
increasing the refrigerant charge size
(i.e., effectively using a lower refrigerant
charge for a greater cooling capacity).
Such a scenario could be achieved by
remodeling with display cases that
operate at a higher evaporator
temperature to maintain product
temperatures without changing the
intended purpose of the refrigeration
system.53
EPA is proposing a lower threshold
because applying the requirements to
more equipment is expected to reduce
HFC releases from equipment and
because avoided releases of HFCs from
leaks would increase the amount of
HFCs that would be available for
recovery and reclamation. The AIM Act
provides a schedule for a phasedown of
HFCs, as opposed to the phaseout
directed for ODS under the CAA.
Therefore, there may be the continued
introduction of HFC-containing
equipment indefinitely which is a
notable difference from the CAA. As
described more fully in section II.B. of
this proposal, subsection (h)(1) of the
AIM Act tasks the Agency with
promulgating certain regulations, where
appropriate, for certain purposes,
including minimizing the release of
regulated substances from equipment
and maximizing the reclamation of
regulated substances. EPA interprets the
phrase ‘‘where appropriate’’ in
subsection (h)(1) to provide it discretion
to reasonably determine how the
regulations under subsection (h)(1) will
apply, including by making
determinations about the charge size
threshold of equipment that would be
subject to the leak repair requirements.
Consistent with its statutory authority,
EPA is proposing to use a lower
threshold than the 50-pound threshold
for ODS-containing appliances under 40
CFR 82.157 for the leak repair
requirements to further serve these
purposes.
By proposing that the applicable
charge size for appliances with a
refrigerant that contains an HFC or a
substitute for an HFC with a GWP
greater than 53 to be 15 pounds or more
52 Refrigeration, Air Conditioning, and Heat
Pumps Technical Options Committee 2018
Assessment Report, Technical and Economic
Assessment Panel, UNEP, February 2019. Available
at: https://ozone.unep.org/sites/default/files/201904/RTOC-assessment-report-2018_0.pdf.
53 See 80 FR 42903, July 20, 2015.

PO 00000

Frm 00023

Fmt 4701

Sfmt 4702

72237

of refrigerant, with certain exemptions,
the universe of affected appliances
covered by the leak repair requirements
under subsection (h) would be
expanded as compared to the universe
of appliances containing ODS
refrigerants and subject to the leak
repair requirements provisions at 40
CFR 82.157. For example, an applicable
charge size of 15 pounds or more of a
refrigerant that contains an HFC or
substitute refrigerant with a GWP above
53 is expected to cover certain
appliances in the following subsectors
which are typically below the 50-pound
threshold under 40 CFR 82.157 and thus
not subject to those provisions:
• Train air conditioning;
• Passenger buses (e.g., school, coach,
transit, and trolley buses); 54
• Refrigerated transport—rail;
• Large retail food remote condensing
units (e.g., cold rooms in supermarkets);
and
• Large commercial unitary air
conditioning (e.g., a system for a midsized office building).
EPA is proposing a 15-pound or more
refrigerant charge size for appliances
subject to the subsection (h) leak repair
requirements based in part on
consideration of an analysis of
equipment in applications where HFCs
or their substitutes are currently being
used as a refrigerant and where they are
expected to be used in the coming years.
EPA conducted an analysis using the
Vintaging Model to estimate stocks of
refrigerants used in equipment of
varying charge sizes. The Vintaging
Model tracks the transition from ODS to
substitutes including HFCs by modeling
the total pieces of equipment and
average charge sizes—which could vary
over time based on vintage and the ODS
or substitute used—from five sectors to
over 60 subsectors. Doing so allows us
to bin the pieces of equipment and total
refrigerant in equipment by charge size.
A current snapshot of the model’s
estimates of the installed stock of
refrigerants that are HFCs and their
substitutes (excluding ODS refrigerants)
in 2025 shows that approximately 39
percent of refrigerants (on a weighted
CO2e basis) are used in appliances with
a charge size above 50 pounds. An
additional 22 percent of installed stock
are within appliances containing
between 15 and 50 pounds of
refrigerant. In evaluating potential
sources where leak repair could be
efficacious at reducing releases of
refrigerant from equipment and changes
54 ‘‘Bus’’ is defined at 40 CFR 1037.801 and
means ‘‘a heavy-duty vehicle designed to carry
more than 15 passengers. Buses may include coach
buses, school buses, and urban transit buses.’’

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

72238

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

in the RACHP market and aftermarket
over the past few decades, EPA finds it
appropriate to propose a threshold of 15
pounds as the applicable charge size of
appliances that would need to comply
with leak repair requirements. As a
general matter, EPA is proposing 15
pounds as the appropriate charge size
threshold because at less than 15
pounds these appliances are
significantly more likely to be
hermetically sealed and thus less prone
to leak, and because appliances with
less than 15 pounds are also more likely
to be replaced rather than repaired.
EPA assessed other refrigerant charge
sizes for appliances to cover in the
proposed leak provisions. EPA is
considering higher alternative
thresholds for charge sizes such as 30
pounds and 50 pounds, as well as lower
alternative thresholds, such as 5
pounds. For information on the
estimated costs and emissions
reductions of the various charge size
thresholds, please refer to Appendix F
of the draft TSD titled Analysis of the
Economic Impact and Benefits of the
Proposed Rule in the docket for this
action. As a general matter, EPA
considered the statutory purposes in
subsection (h)(1) to maximize the
reclaiming and minimize the releases of
regulated substances from equipment
when setting the threshold for
appliances covered for the leak repair
requirements. These purposes guided
EPA’s considerations in exploring
different charge sizes; however,
subsection (h)(1) states for EPA to
consider promulgating regulations ‘‘as
appropriate’’ to meet these purposes.
EPA notes that refrigerant-containing
appliances with small charge sizes
(below 15 pounds) may be hermetically
sealed and less prone to leaks. Further,
in many cases, these smaller appliances
(e.g., residential appliances like window
air conditioning units) are likely to be
disposed of and replaced rather than
repaired when they are found to be
malfunctioning. On the other hand, EPA
described earlier in this section the
rationale for proposing the lower charge
size threshold of 15 pounds as
compared to a higher charge size (e.g.,
30 or 50 pounds). For example, EPA
notes that with technological advances
in some refrigerant-containing
appliances, similar cooling capacity can
be achieved with smaller relative charge
sizes. We are proposing a charge size
threshold of 15 pounds of refrigerant for
covered appliances in this action.
EPA is proposing to exempt from the
leak repair requirements under
subsection (h) any refrigerant-containing
appliance, including those with a
charge-size at or above 15 pounds, used

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

for the residential and light commercial
air conditioning and heat pumps
subsector.55 The vast majority of
appliances in the residential and light
air conditioning subsector typically
have a charge size of less than 15
pounds; however, EPA is proposing
exemptions in the case that an
appliance is used within this subsector
with a charge size of 15 pounds or more.
These appliances are used in residences
(but this subsector does not include
larger centrally-cooled apartment/
condominium buildings—where a
chiller is likely used), and small retail
and office buildings. Since the majority
of appliances in this subsector have a
refrigerant charge below the proposed
15-pound cutoff for leak repair
requirements, enforcement of those that
are above a charge size of 15 pounds
may be challenging or burdensome. It
may not be immediately obvious if a
particular refrigerant-containing
appliance has a charge size of 15
pounds or greater without examining it
more closely. Further, the universe of
affected appliances could grow
unevenly if appliances in this subsector
were included, which could cause
compliance by owners and operators or
servicing technicians to become
cumbersome. EPA’s proposal to exempt
appliances in this subsector from the
leak repair requirements would be
administratively more efficient and less
burdensome for those that would be
required to comply.
The Agency is proposing to require
leak repair provisions for new and
existing passenger buses,56 including
school, coach, transit, and trolley buses
with charge-sizes at or above 15 pounds.
55 The residential and light commercial air
conditioning subsector includes equipment for
cooling air in individual rooms, single-family
homes, and small commercial buildings, including
both self-contained and split systems. Selfcontained systems include some rooftop AC units
(e.g., those ducted to supply conditioned air to
multiple spaces) and many types of room ACs,
including packaged terminal air conditioners
(PTACs), some rooftop AC units, window AC units,
portable room AC units, and wall-mounted selfcontained ACs, designed for use in a single room.
Split systems include ducted and non-ducted minisplits (which might also be designed for use in a
single room), multi-splits and variable refrigerant
flow (VRF) systems, and ducted unitary splits. For
additional information on the types of equipment,
see EPA’s website at https://www.epa.gov/snap/
substitutes-residential-and-light-commercial-airconditioning-and-heat-pumps. EPA is not
proposing to codify a regulatory definition for
residential and light commercial air conditioning
and heat pumps subsector consistent with the
foregoing description, but EPA requests comment
on whether such a regulatory definition would be
beneficial in resolving any perceived ambiguities.
56 ‘‘Bus’’ is defined at 40 CFR 1037.801 and
means ‘‘a heavy-duty vehicle designed to carry
more than 15 passengers. Buses may include coach
buses, school buses, and urban transit buses.’’

PO 00000

Frm 00024

Fmt 4701

Sfmt 4702

The HD category 57 incorporates all
motor vehicles with a gross vehicle
weight rating of 8,500 pounds or greater.
Air conditioning systems used to cool
passenger compartments in these buses
mainly use HFC–134a or R–407C,58 and
are typically manufactured as a separate
unit that is pre-charged with refrigerant
and installed onto the vehicle in a
separate enclosure (e.g., roof mounted).
The refrigerant charge for these systems
is also much larger than those for other
MVAC systems, typically ranging from
15 to 30 pounds. On the other hand,
MVAC systems used to cool passenger
compartments in light-duty, mediumduty, HD on-road and nonroad (off-road)
vehicles are typically charged during
vehicle manufacture and the main
components are connected by flexible
refrigerant lines. MVAC systems in
these vehicles typically have charge
sizes ranging from one to eight pounds
depending on the manufacturer and cab
size.59 60 EPA requests comments on the
proposed extension of the leak repair
provisions to passenger buses. The
Agency is particularly interested in
information, such as any technical
challenges, maintenance concerns, or
other issues EPA should consider
regarding the repair of buses.
EPA is proposing to stagger the
proposed compliance dates. Appliances
containing 50 pounds or more of a
refrigerant containing an HFC or a
substitute for an HFC with a GWP above
53 would be required to comply with
the provisions on the effective date for
the final rule. Because these proposed
requirements are similar to those that
have been in place for ODS-containing
appliances at or above a full charge size
of 50 pounds for some time, EPA is
proposing to conclude that this is
sufficient time for regulated entities to
come into compliance. Further, prior to
the rescission in 2020 (85 FR 14150,
March 11, 2020), the final rulemaking
under CAA section 608 in 2016 (81 FR
82272, November 18, 2016) applied leak
repair provisions for HFC-containing
appliances with a charge size of 50
pounds or greater. The 2016 CAA
57 Defined

at 40 CFR 86.1803–01.
Freon TM Refrigerant for Bus and
Rail Air Conditioning; available at: https://
www.freon.com/en/industries/stationary-ac-heatpumps/public-transport-ac.
59 ICF, 2016. Technical Support Document for
Acceptability Listing of HFO–1234yf for Motor
Vehicle Air Conditioning in Limited Heavy-Duty
Applications. Available at: https://
www.regulations.gov/document/EPA-HQ-OAR2015-0663-0007.
60 EPA, 2021. Basic Information about the
Emission Standards Reference Guide for On-road
and Nonroad Vehicles and Engines. Available at
https://www.epa.gov/emission-standards-referenceguide/basic-information-about-emission-standardsreference-guide-road.
58 Chemours,

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
section 608 Rule became effective on
January 1, 2017, and the relevant leak
repair requirements for HFCs and other
ODS substitutes (now rescinded)
applied as of January 1, 2019 (81 FR
82272, 82356, November 18, 2016). The
2020 CAA section 608 Rule took effect
on April 10, 2020 (85 FR 14150, March
11, 2020). Thus, for over three years
industry was aware of these
requirements and affected entities
should have been complying for more
than one year before the requirements in
the 2016 CAA section 608 Rule were
rescinded. While entities that were no
longer subject to the leak repair
requirements after rescission may have
chosen to no longer comply with those
requirements after the rescission took
effect, those entities that were subject to
the regulatory requirements per the
2016 CAA section 608 Rule prior to
rescission would, at a minimum, be
familiar with these requirements.
For appliances with a full charge that
is less than 50 pounds of refrigerant, the
Agency did not previously require leak
repair and thus we are proposing
additional time. EPA is proposing one
year after the publication date of the
final rule for appliances with a charge
size between 15 to 50 pounds of a
refrigerant containing an HFC or a
substitute for an HFC with a GWP above
53 to allow the affected regulated
community time to familiarize
themselves with the requirements and
make preparations to comply with them.
For example, it is expected that owners
and operators of affected appliances
with between 15 and 50 pounds of a
refrigerant containing an HFC or a
substitute for an HFC with a GWP above
53 may need time to learn about the
updated requirements; determine full
charges of their appliances; and update
systems, standard operating procedures,
and training materials to best implement
the requirements. Appliances with a full
charge of between 15 and 50 pounds of
a refrigerant containing an HFC or a
substitute for an HFC with a GWP above
53 that are not exempted would be
expected to comply as of one year after
the date of publication for the final rule
in the Federal Register. EPA
understands that some appliance
owners or operators with equipment
with a charge size between 15 and 50
pounds of a refrigerant containing an
HFC or a substitute for an HFC may
have already been repairing leaks.
Refrigerant-containing appliance owners
or operators may choose to repair leaks
when not required, for example as a way
to avoid costs associated with
continually adding refrigerant to
systems or to avoid any disruption in

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

normal operations. However, given
there was no leak repair requirement for
this equipment, EPA is unaware
whether this is true in all or even the
majority of cases. Further, where
unrequired leak repair may have been
occurring, it is not clear whether the
repairs were sufficient to ensure
equipment was leaking below the
applicable leak rates (as established
under 40 CFR 82.157) or whether the
repairs were verified and records of the
repair event were kept. Accordingly,
these owners and operators may also
need time to understand the proposed
requirements and develop practices and
processes for compliance.
EPA is seeking comment on all
aspects of this proposal. In particular,
the Agency is seeking comment on the
proposed charge size cutoff of 15
pounds of refrigerant for equipment that
contain HFCs or certain substitutes for
HFCs. As noted previously, EPA is also
considering using different charge sizes
as a threshold for the proposed leak
repair requirements for applicable
refrigerant-containing appliances,
including those that are lower (e.g., 5
pounds) or higher (e.g., 30 pounds).
While EPA is proposing 15 pounds as
the charge size cutoff for the leak repair
provisions, EPA continues to consider
the option of using a different charge
size cutoff, such as 5 pounds, 30
pounds, or 50 pounds, and seeks
comment on these considerations.
Further, EPA also seeks comment on its
proposal to exempt refrigerantcontaining appliances in the residential
and light commercial air conditioning
and heat pumps subsector from the leak
repair requirements. Specifically, EPA is
seeking whether the scope of this
exemption is appropriate and if EPA
should consider exempting refrigerantcontaining appliances in other
subsectors from the proposed leak repair
requirements. While EPA is proposing
that refrigerant-containing appliances
with a full charge between 15 and 50
pounds subject to the leak repair
requirements under 40 CFR part 84
would have a compliance date of one
year after the date of publication for the
final rule in the Federal Register, the
Agency is considering alternative
compliance dates including January 1,
2025, or 18 months from the date of
publication of the final rule. EPA is
seeking comment on the proposed
compliance dates for the proposed leak
repair requirements, and in particular,
allowing additional time for appliances
with a refrigerant charge size of between
15 and 50 pounds. In particular, EPA
seeks information about activities
(besides rule familiarization and

PO 00000

Frm 00025

Fmt 4701

Sfmt 4702

72239

applicability determinations) that
owners or operators of refrigerantcontaining appliances with a refrigerant
charge size of between 15 and 50
pounds perceive that they would need
to engage in prior to the effective date
of the rule, the length of time the
commenter estimates the activity would
take, and any available information that
would substantiate that estimate. For
example, EPA seeks comment on
whether they would need to modify or
initiate a contractual relationship with a
servicing technician firm, the length of
time that would take, and information to
substantiate that estimate if available.
3. What leak repair provisions is EPA
proposing?
EPA is proposing leak repair
requirements under subsection (h) to
achieve the purposes of minimizing
releases and maximizing the
reclamation of regulated substances by
controlling practices, processes, and
activities related to the servicing, repair,
or disposal of equipment that contains
regulated substances and/or their
substitutes (whether the regulated
substance or the substitute is used neat
or in blends). These requirements are
being proposed as part of implementing
subsection (h)(1) of the AIM Act, as
these provisions would control
practices, processes, or activities
regarding servicing or repair of
appliances, which are a type of
equipment, and would involve a
regulated substance or a substitute for a
regulated substance.
As described in section IV.C.2.a. and
b., these leak repair requirements would
apply to refrigerant-containing
appliances with a charge size of 15
pounds or more where the refrigerant
contains an HFC or a substitute for an
HFC with a GWP greater than 53. As
noted in section II.B., subsection (h)(3)
provides that EPA may coordinate
regulations under this authority with
other regulations promulgated by the
Agency that involve: ‘‘the same or a
similar practice, process, or activity
regarding the servicing, repair, disposal,
or installation of equipment; or . . .
reclaiming.’’
EPA reviewed the regulations
promulgated under CAA section 608
addressing the same or similar practice,
processes or activities as addressed in
this proposal to consider the extent
appropriate to coordinate requirements
in those regulations with those
proposed in this action. Specifically,
EPA reviewed the leak repair
requirements at 40 CFR 82.157, which
do not apply to appliances containing
HFCs or their substitutes. The leak
repair provisions under CAA section

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

72240

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

608 contain requirements for practices,
processes, and activities related to
identifying and repairing leaks in
appliances that contain ODS. These
practices, processes, and activities are
applicable to appliances containing
HFCs as, in many cases, the same types
of appliances (e.g., chillers, rooftop air
conditioning units, supermarket
systems, etc.) are used since HFCs are a
substitute for ODS. EPA is not
proposing new requirements in this
action where the provisions in 40 CFR
part 82, subpart F already apply to
appliances containing HFCs and certain
substitutes. EPA notes that there are
existing recordkeeping requirements 40
CFR 82.156(a)(3) for technicians
evacuating refrigerant from appliances
with a full charge of more than 5 and
less than 50 pounds of refrigerant for
purposes of disposal of that appliance.
EPA is not reopening any of the
provisions in 40 CFR part 82 in this
action, and thus, the Agency is not
proposing any changes to the referenced
recordkeeping requirements. Further,
the Agency does not view these
recordkeeping requirements as being in
conflict with the proposed leak repair
requirements nor does the Agency view
them as redundant. EPA notes that the
bulk of the appliances covered by the
recordkeeping requirements at 40 CFR
82.156(a)(3) are residential air
conditioning appliances, which would
be exempt from the proposed leak repair
provisions in this proposed action.
These records are used to assess
technicians’ compliance with the
disposal requirements for 5 to 50 pound
appliances under 40 CFR part 82
subpart F and are not related to the
owner/operator’s compliance with the
leak repair requirements.
As described in greater detail in the
following sections, the proposed leak
repair provisions would require action if
an appliance has been found to be
leaking above the applicable leak rate
threshold. The proposed leak repair
provisions would generally not
necessitate any specific action for
appliances that are not leaking above
the applicable leak-rate threshold,
although the leak rate calculations and
certain recordkeeping requirements
would apply to appliances that are not
leaking above the threshold. While EPA
is proposing to adopt the same
applicable leak rates for the leak repair
requirements under subsection (h) as
applies under 40 CFR 82.157, as
described in section IV.C.3.b. of this
preamble, EPA is proposing
requirements for identifying and
potentially repairing leaks sooner (see
section IV.C.4. of this preamble for

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

proposed requirements for ALD
systems).
a. Leak Rate Calculations
EPA is proposing to adopt
requirements for leak rate calculations
as part of the proposed leak repair
requirements under subsection (h).
Under these proposed requirements,
refrigerant-containing appliances with a
charge size of 15 pounds or more of a
refrigerant that contains an HFC or a
substitute for and HFC with a GWP
above 53 would require a leak rate
calculation, if the appliance is found to
be leaking. Accordingly, under
subsection (h), EPA is proposing to
require that the leak rate of covered
appliances be calculated every time
refrigerant is added to an appliance,
unless the addition is made
immediately following a retrofit,
installation of a new appliance, or
qualifies as a seasonal variance, as
described in this and subsequent
sections.
In this action, EPA is not proposing to
require the repair of all leaks, but rather
to require repair of leaks such that the
appliance is below the applicable leak
rate threshold. Thus, calculation of the
leak rate is necessary to determine
where further action (i.e., repair) is
required, since owners or operators may
not be able to determine compliance
without calculating the leak rate each
time refrigerant is added to the
appliance. For example, if an appliance
owner adds refrigerant to the appliance
but does not calculate the leak rate, the
owner would have no means of
determining if the appliance’s leak rate
was below the applicable leak rate
threshold. Hence, the owner would not
know if further action was warranted.
The leak rate calculation is an important
step for owners and operators to
determine if a leak must be repaired and
to the applicable leak rate threshold to
which it would need to be repaired (as
discussed in section IV.C.3.b). EPA
considers that the leak rate calculation
provisions under 40 CFR 82.157(b) are
appropriate for the refrigerantcontaining appliances proposed in this
action and is proposing to establish
analogous requirements for equipment
covered under the subsection (h) leak
repair provisions.
EPA is proposing two methods for
calculating the leak rate for an
applicable appliance under subsection
(h) in this action: the annualizing
method and the rolling average method.
These leak rate calculation methods are
described in section IV.A.1. This
approach of providing two different
methods for calculating the leak rate, as
well as the specific leak rate calculation

PO 00000

Frm 00026

Fmt 4701

Sfmt 4702

methods proposed, are the same as
those described and provided in 40 CFR
part 82, subpart F. EPA is proposing that
these two methods could be used
similarly to how they can be used under
subpart F. Based on EPA’s experience
under subpart F, there are advantages in
the flexibility provided by having two
different methods. The strength of the
annualizing method is that it is future
oriented and allows the owner or
operator to ‘‘close out’’ each leak event
so long as the requirements are followed
and does not lump past leak events with
the current leak event. It considers the
amount of time since the last refrigerant
addition and then scales that up to
provide a leak rate that projects the
amount of refrigerant lost over a whole
year if the leak is not fixed. As a result,
this formula will yield a higher leak rate
for smaller leaks if the amount of time
since the last repair was shorter. This
approach can contribute to minimizing
the releases of HFCs or their substitutes
by requiring more thorough leak
inspections and verified repairs sooner.
The rolling average method also has its
strengths. It accounts for all refrigerant
additions over the past 365 days or
since the last successful follow-up
verification test showing that all
identified leaks were successfully
repaired (if less than 365 days). If an
owner or operator verifies all identified
leaks are repaired, this method would
also allow an owner or operator to
‘‘close out’’ a leak event. If there is no
follow-up verification test showing that
all identified leaks were successfully
repaired within the last year, the leak
rate would be based completely on
actual leaks in the past year. This
retrospective approach measures actual
performance and if leaks are identified
and fixed quickly, an appliance may
never reach the applicable leak rate,
thus limiting and minimizing the
releases of HFCs or their substitutes
from leaks.
In the 2016 CAA section 608 Rule (81
FR 82272, November 18, 2016), EPA
finalized that the same leak rate
calculation must be used for all
appliances at the same facility for
appliances subject to the CAA leak
repair provisions. EPA is proposing to
similarly require that the same method
of leak rate calculation be used for all
refrigerant-containing appliances at the
same facility for appliances subject to
the proposed leak repair provisions in
this action. This aspect of the proposal
helps ensure that the requirements are
followed consistently at a facility. As
noted above, having the option to
choose between one of two
methodologies to calculate the leak rate

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

provides flexibility to the owners and
operators of affected refrigerantcontaining appliances. However, once a
method is chosen, it is necessary for the
owner or operator to continue using the
same methodologies so leak rates are
consistently calculated for the
appliances. The two methods use two
different paradigms to determine leak
rate—one is forward-looking/predictive,
while the other is looking back/
retrospective. If an owner or operator
were to switch between methods, they
would not get an accurate calculation
(because the time frame being evaluated
would be different in each method).
In either methodology of calculating
the leak rate, EPA is proposing that
when calculating the leak rate, any
purged refrigerant that is destroyed
would not be counted towards the leak
rate. To qualify for this exemption, the
purged refrigerant would be required to
be destroyed at a verifiable destruction
efficiency of 98 percent or greater.
EPA is seeking comment on all
aspects of its proposal related to leak
rate calculations under subsection (h).
EPA is particularly requesting comment
on if there are any alternative leak rate
calculations that could be conducted to
identify whether a system is leaking
above the applicable trigger leak rate.
EPA is also requesting comment on
calculating the amount of refrigerant
lost, without having to add refrigerant,
as a means of calculating the leak rate.
For example, an owner or operator
could evacuate all of the refrigerant
from an appliance, weigh it, and
compare it to the full charge of the
appliance. Alternatively, EPA is aware
that certain types of ALD systems can
infer the amount of refrigerant that has
leaked from an appliance based on
operating characteristics (more detail in
section IV.C.4. of this preamble) and
EPA is seeking comment on the
feasibility and technical accuracy of
using the amount of refrigerant that
such a system identifies as having been
lost from the appliance in the leak rate
calculation, as a means of identifying
the leak rate.
b. Requirement To Repair Leaks, Timing
and Applicable Leak Rates
EPA is proposing to establish a
number of requirements related to the
repair of leaks under subsection (h)
related to determining when a leak
needs to be repaired, the extent of the
repair required, and the timing of such
repairs. EPA is proposing to establish
timing requirements for the repair of
leaks in refrigerant-containing
appliances with a charge size of 15
pounds or more with a refrigerant that
contains an HFC or a substitute for an

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

HFC with a GWP above 53. Under this
proposal, owners or operators would be
required to identify and repair leaks
within 30 days (or 120 days if an
industrial process shutdown is required)
of when refrigerant is added to an
appliance that has exceeded the
applicable leak rate. These proposed
timing requirements are consistent with
those requirements found at 40 CFR
82.157(d) to repair leaks for ODScontaining equipment. Repairing leaks
in a timely manner helps serve the
purposes identified in subsection (h)(1).
For example, timely repair is critical to
reducing the emissions of refrigerants
from leaking appliances, and thus to
minimizing releases of HFCs from
equipment. In addition, by repairing
leaks in a timely manner, additional
HFC refrigerant will be subsequently
available for reclamation, which
supports maximizing reclaiming of
HFCs. Also, equipment that is in good
repair, is better able to operate in an
efficient manner.
In some unforeseen circumstances,
repair of leaks may require additional
time beyond that of the proposed
timeframe. EPA is proposing that
extensions may be available for owners
or operators to repair leaks if certain
conditions are met, which would further
serve the purposes identified in
subsection (h)(1) of ensuring the safety
of technicians and/or minimizing the
release of regulated substances. Among
these conditions, EPA is proposing that
one or more must be met to qualify for
additional time. Extensions for the leak
repair would be available if the
appliance is located in an area subject
to radiological contamination or
shutting down the appliance will
directly lead to radiological
contamination. EPA is proposing that in
this case, additional time would be
permitted to the extent necessary to
complete the repairs in a safe working
environment. An extension would also
be available to owners or operators if the
requirements of any other Federal, state,
local, or Tribal regulations would make
a repair within 30 days (or 120 days if
an industrial process shutdown is
required) impossible. Additional time
would be permitted to the extent needed
to comply with the applicable
regulations. EPA is also proposing there
would be extensions available if
components must be replaced as a part
of the repair and they are not available
within the leak repair timeframe of 30
days (or 120 days if an industrial
process shutdown is required). In this
case, additional time would be
permitted of up to 30 days after
receiving the needed component, and

PO 00000

Frm 00027

Fmt 4701

Sfmt 4702

72241

the total extension could not exceed 180
days (or 270 days if an industrial
process shutdown is required) from the
date of the appliance exceeded the
applicable leak rate. In all cases of
potential extensions to the leak repair
timeframe, an owner or operator would
still be required to repair leaks that the
technician has identified as significantly
contributing to the exceedance of the
applicable leak rate and that do not
require additional time and verify those
repairs within the initial 30 days (or 120
days if an industrial process shutdown
is required). Owners or operators would
also be required to document all repair
efforts and provide a reason for the
inability to repair the leak within the
initial 30-day (or 120-day if an
industrial process shutdown is required)
time period. All extension requests must
be submitted electronically in a format
specified by EPA and include pertinent
information as described in the
proposed regulatory text at § 84.106.
EPA is proposing that a leak is
presumed to be repaired if there is no
further addition of refrigerant to the
equipment for 12 months after the repair
or if there are no leaks identified by
either the required periodic leak
inspection(s) or an ALD system, where
applicable. Further information on the
proposed requirements for ALD systems
are described in section IV.C.4. While
EPA is proposing to require ALD
systems for certain equipment, there
may be some cases where an owner or
operator chooses to use ALD systems for
equipment where it is not required.
Whether use of the ALD system is due
to requirements as proposed in section
IV.C.4. or used as a compliance option
in lieu of leak inspections (see section
IV.C.3.d.) for a specific appliance, if the
ALD system detects a leak in the 12month period after a successful leak
repair, the leak repair would be
presumed to have subsequently failed
unless the owner or operator can
document that the ALD system leak
detection was due to a new leak
unrelated to the previously repaired
leak. Such documentation would
include but not be limited to the records
required to be kept under proposed 40
CFR 84.108(i). Additional information
on leak inspections is described in
section IV.C.3.d. If an appliance is
mothballed, EPA is proposing that the
timeframe for repair, inspections, and
verification tests would be temporarily
suspended and resume when additional
refrigerant is added to the appliance (or
component of an appliance is the
leaking component was isolated).
As noted earlier, under the CAA
section 608 implementing regulations at
40 CFR 82.157, specific leak rates are

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

72242

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

used to determine whether a repair is
needed for an appliance and also the
degree to which the leak must be
repaired, as leaks must be repaired if the
appliance exceeds the applicable leak
rate (which varies depending on the
type of appliance) and must be repaired
such that the leak rate is brought below
the applicable leak rate. See 40 CFR
82.157(c) and (d). For the leak repair
requirements under subsection (h), EPA
is proposing to use a similar approach
for determining when leaks must be
repaired and the degree to which they
must be repaired. EPA is also proposing
to apply the same applicable leak rates
for certain types of refrigerantcontaining appliances covered in this
proposal that contain HFCs or their
substitutes as would apply to the same
types of appliances under 40 CFR
82.157(c) if it contained an ODS
refrigerant. Thus, EPA is proposing that
the applicable leak rates for refrigerantcontaining appliances with a charge size
of 15 pounds or more with a refrigerant
that contains an HFC or a substitute for
an HFC with a GWP above 53 would be
as follows:
• 20 percent leak rate for commercial
refrigeration equipment;
• 30 percent leak rate for IPR
equipment; and
• 10 percent leak rate for comfort
cooling appliances or other refrigerantcontaining appliances not covered as
commercial or industrial refrigeration
equipment.
EPA is proposing that these
applicable leak rates per the type of
appliance are appropriate for the
proposed leak repair provisions in this
action under subsection (h) of the AIM
Act. The applicable leak rates were
established to limit and minimize the
releases of ODS refrigerant and were
updated to be more stringent in the 2016
CAA section 608 Rule (81 FR 82272,
November 18, 2016). EPA is proposing
to adopt applicable leak rates that
mirror those that are currently in effect
for ODS-containing appliances under
the 2016 CAA section 608 Rule. These
rates were in effect for appliances
containing 50 or more lbs of HFCs for
a period of time, and, after reviewing
the information and analysis that
supported application of these leak rates
to that HFC equipment, EPA has
determined it is appropriate to propose
them in this action. These applicable
leak rates are relevant for minimizing
releases of HFCs from refrigerantcontaining appliances that contain
HFCs. This proposal draws on EPA’s
experience implementing similar
requirements under section 608, where
these thresholds have provided a
practical and effective method for

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

determining when leaks must be
repaired. EPA notes in support of the
2016 CAA section 608 Rule, EPA
reviewed data from the lowest-emitting
equipment to gauge technological
feasibility and then reviewed other
datasets.61 The Agency considered
whether a lower percent leak rate for
some, or all of the categories of
appliances would be more appropriate
to propose in this rulemaking for those
that use refrigerants that contain HFCs
and/or substitutes for HFCs. EPA notes
that, as a general matter, equipment in
good repair is typically able to operate
more efficiently. EPA reviewed the
docket for the 2016 CAA section 608
Rule, which lowered the applicable leak
rates for each of the appliance
categories.62 63 In that action, EPA
evaluated leak rate data of appliances in
each of the applicable categories to
determine the appropriate applicable
leak rates. EPA also reviewed
information from stakeholders shared
during public meetings held in the
development of this proposal.64 EPA is
proposing to use the same applicable
leak rates for each category of
appliances as found under 40 CFR
82.157. While EPA is not proposing
changes to the applicable leak rates for
categories of refrigerant-containing
appliances as they involve HFCs and
covered substitutes for HFCs, the
Agency notes that we could revisit the
applicable leak rates as appropriate to
support the overall purposes of
subsection (h) of the AIM Act.
This proposal includes refrigerantcontaining appliances with charge sizes
that are below the 50-pound charge size
threshold for ODS-containing
appliances under 40 CFR 82.157. As
discussed in section IV.C.2., EPA is
proposing to apply leak repair
requirements to appliances using an
HFC and/or a substitute for HFCs as a
refrigerant (neat or in blends) based on
a charge size threshold of 15 pounds or
greater, with certain exceptions as
61 For more details on this analysis see 81 FR
82272, 82317; Technical Support Document:
Analysis of the Economic Impact and Benefits of
Final Revisions to the National Recycling and
Emission Reduction Program, September 2, 2016,
available at https://www.regulations.gov/document/
EPA-HQ-OAR-2015-0453-0225.
62 Docket No. EPA–HQ–OAR–2015–0453.
63 For further information, please see the
discussion in the 2016 CAA section 608 rule at 81
FR 82272, 82317 and the technical support
document, Analysis of the Economic Impact and
Benefits of Final Revisions to the National
Recycling and Emission Reduction Program,
available in the docket for the 2016 CAA section
608 rulemaking (EPA–HQ–OAR–2015–0453).
64 EPA held stakeholder meetings for public input
on November 9, 2022 and March 16, 2023 as well
as solicited feedback through a webinar for the EPA
GreenChill Partnership program on April 12, 2023.

PO 00000

Frm 00028

Fmt 4701

Sfmt 4702

discussed in section IV.C.2.a. above.
EPA is proposing to use the same leak
rate across categories of equipment for
all covered appliances. In other words,
a 20 percent leak trigger rate would
apply for commercial refrigeration
equipment with a full charge size of 15
pounds or more, and a 10 percent trigger
leak rate would apply for comfort
cooling appliances with a full charge
size of 15 pounds or more.
Refrigerant-containing appliances
with 15–50 pounds of refrigerant in the
applicable subsectors are proposed to be
covered by the appropriate listed
categories and with the applicable
trigger leak rates. For refrigerantcontaining appliances in certain
subsectors and applications that have
not been previously covered under 40
CFR 82.157, as noted in section
IV.C.2.b., EPA is proposing
determinations for the applicable leak
rates. For refrigerated transport—rail,
EPA is proposing that this application
would be considered under the comfort
cooling and other appliances category
and have an applicable leak rate of 10
percent.
EPA is seeking comment on all
aspects of this proposal and in
particular on the proposed applicable
leak rates for appliances in the
subsectors and applications noted in
section IV.C.2.b. of this proposal. EPA is
also seeking comment on its proposal to
include an explicit presumption that a
leak is presumed to be repaired if one
of the listed conditions is met, such as
there being no further addition of
refrigerant to the equipment for 12
months after the repair. While a similar,
though not identical, presumption is
included in similar regulations under
section 608 of the CAA, EPA is also
proposing to include a definition of
‘‘repair’’ to the regulatory provisions
under subsection (h), which is not a
defined term in the regulations under
CAA section 608. EPA is particularly
interested in comments on whether the
presumption is necessary or helpful, if
the proposed definition of ‘‘repair’’ is
finalized.
c. Verification Testing
EPA is proposing requirements for
initial and follow-up verification for
refrigerant-containing appliances with a
charge size of 15 pounds or more of a
refrigerant that contains an HFC or a
substitute for an HFC with a GWP above
53 as a part of the proposed leak repair
provisions under subsection (h).
Verification testing involves important
practices, processes, and activities
regarding the repair and servicing of
equipment. The tests are performed
shortly after an appliance has been

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
repaired to confirm that the leak has
been successfully repaired. Without the
verification tests, it may take additional
time for the owner or operator to realize
that the repair has been unsuccessful
and during that time refrigerant could
continue to leak from the appliance.
EPA is proposing that the verification
tests must be performed for all leak
repairs to ensure that the leak repair is
done correctly the first time, which
would help minimize any releases of
HFCs from the appliance, and also help
maximize HFCs available for eventual
reclamation by limiting such releases.
Thus, as part of the proposed
requirements for leak repair verification
tests under subsection (h), an owner or
operator would be required to conduct
initial and follow-up verification tests
within specified timeframes on each
leak that is repaired. The initial
verification test would be required to be
performed within 30 days (or 120 days
if an industrial process shutdown is
required) of an appliance exceeding the
applicable leak rate and must
demonstrate that leaks are repaired,
where a repair attempt was made. The
initial verification test is to verify that
the leak has been repaired prior to
adding refrigerant back into the
appliance and the follow-up verification
test confirms that the repair held after
refrigerant has been added and the
appliance has been brought back to
normal operating characteristics. The
follow-up verification test would be
required to be conducted within 10 days
of a successful initial verification test or
10 days after the appliance has returned
to normal operating conditions (if the
appliance or isolated component of the
appliance was evacuated to perform
repairs). EPA is proposing that the
follow-up verification test is necessary
to confirm that the leak repair has held
after the refrigerant-containing
appliance has been recharged,
pressurized, and returned to normal
operating conditions. Thus, these
provisions are proposed in this action to
ensure leaks are properly repaired and
to ensure emissions are minimized. EPA
also notes that this process of
performing an initial verification test
and a follow-up verification test has
been a part of the similar leak repair
provisions for affected ODS-containing
equipment under CAA section 608. For
additional discussion on the
terminology, timing, and purposes
associated with the verification tests in
detail in the context of the requirements
under CAA section 608, please refer to
the 2016 CAA section 608 Rule (81 FR
82272, 82324, November 18, 2016).
EPA is also considering that in some
cases, a follow-up verification test is

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

impossible; for example, when it would
be unsafe to be present when the system
is at normal operating characteristics
and conditions. Under subsection (h),
EPA is proposing language to address
such situations. This approach helps
serve the purpose identified in
subsection (h)(1) of ensuring technician
and consumer safety. EPA is proposing
that where it is unsafe to be present or
otherwise impossible to conduct a
follow-up verification test when it
would be unsafe to be present when the
system is at normal operating
characteristics and conditions the
follow-up verification test must, where
practicable, be conducted prior to the
system returning to normal operating
characteristics and conditions. In such
situations, the owner or operator has the
burden of showing that it was unsafe to
be present when the system is at normal
operating characteristics and conditions.
EPA requests comment on whether
there should be a recordkeeping
requirement associated with
establishing that it is unsafe to be
present or otherwise impossible to
conduct a follow-up verification test on
the system has been returned to normal
operating conditions.
EPA understands these initial and
follow-up verification tests after an
attempted repair of a leak as involving
important practices, processes, and
activities regarding the repair of
equipment within the proposed leak
repair provisions. These proposed
requirements are designed to help
ensure that leaks are repaired
successfully and that the repair holds,
so that repair has the intended effect of
limiting emissions of HFCs or
substitutes for HFCs from the appliance.
EPA is proposing that if the initial or
follow-up verification test indicates that
a leak repair had not been successful,
the owner or operator may conduct as
many additional repairs and initial or
follow-up verification tests as needed to
achieve a successful leak repair within
the applicable time period and to verify
the repairs.
EPA is requesting comment on all
aspects of this rulemaking. In particular,
EPA is requesting comment on the
applicable leak rates for each category
for refrigerant-containing appliances.
EPA is also requesting comment on the
timing by which the initial and followup verification tests must be performed
as a part of the proposed leak repair
provisions.
d. Leak Inspections
EPA is proposing requirements for
leak inspections as a part of the
proposed leak repair requirements
under subsection (h). These leak

PO 00000

Frm 00029

Fmt 4701

Sfmt 4702

72243

inspection requirements would apply to
refrigerant-containing appliances that
have been found to be leaking at a rate
that exceeds the applicable leak rate per
the appliance type. In particular, the
proposed leak inspection requirements
involve processes, practices, and
activities regarding the repair of
refrigerant-containing appliances that
are designed to ensure the long-term
effectiveness of a successful leak repair.
Thus, the proposed requirements would
help minimize any releases of HFCs
from equipment over time and also help
maximize HFCs available for eventual
reclamation by limiting such releases.
EPA is proposing that leak
inspections would be required for
refrigerant-containing appliances with a
charge size of 15 pounds or more of a
refrigerant that contains an HFC or a
substitute for an HFC with a GWP
greater than 53 that are found to be
leaking above the applicable leak rate
and have had one or more leaks
repaired. Leak inspection frequency
would be dependent on the type of
appliance and the size of the appliance
(by refrigerant charge size). As described
in greater detail later in this section, an
ALD system that is being used to
monitor an appliance or portions of an
appliance may be used as a compliance
option in lieu of quarterly or annual
leak inspections, whether the ALD
system is required to be used under
requirements in this proposal or the
ALD system is used voluntarily on an
appliance where it would not be
required under this proposal. Where an
ALD system is not being used on an
appliance or on portions of an
appliance, all leak inspection
requirements proposed would be
required for the appliance or the
portions of the appliance that are not
being monitored by an ALD system. If
an ALD system is being used to comply
with the leak inspection requirements
for an appliance or portions of an
appliance (per proposed regulatory
requirement or voluntarily), certain
regulatory requirements must be met as
proposed (see section IV.C.4.).
For commercial refrigeration and IPR
appliances that have a charge size of 500
pounds or more of a refrigerant that
contains an HFC or a substitute for an
HFC with a GWP greater than 53, EPA
is proposing that leak inspections be
performed every three months after the
equipment is found to be leaking above
the applicable leak rate until the owner
or operator can demonstrate that the
equipment has not exceeded the
applicable leak rate for four consecutive
quarters. For commercial refrigeration
and IPR appliances that have a charge
size between 15 and 500 pounds of a

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

72244

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

refrigerant that contains an HFC or a
substitute for an HFC with a GWP
greater than 53, EPA is proposing that
leak inspections be performed once per
calendar year after the equipment is
found to be leaking above the applicable
leak rate until the owner or operator can
demonstrate that the equipment has not
exceeded the applicable leak rate for
one year (i.e., 12 months). For comfort
cooling and other appliances that have
a charge size of 15 pounds or above of
a refrigerant that contains an HFC or a
substitute for an HFC with a GWP above
53, EPA is proposing that leak
inspections be performed once per
calendar year after the equipment is
found to be leaking above the applicable
leak rate until the owner or operator can
demonstrate that the equipment has not
exceeded the applicable leak rate for
one year (i.e., 12 months). In each case,
to demonstrate that the equipment has
not exceeded the applicable leak rate, a
leak rate calculation is done during a
leak inspection as described in section
IV.C.3.a. of this proposal. EPA is
proposing that it is appropriate to
require more frequent leak inspections
for larger commercial refrigeration and
IPR appliances (i.e., charge sizes at or
above 500 pounds), as the larger charge
size means that potential emissions
from the appliance are greater if a leak
is not properly repaired.
In this action, EPA is also separately
proposing requirements for the use of
ALD systems for commercial
refrigeration and IPR appliances that
have a charge size of 1,500 pounds or
more of refrigerant that contains an HFC
or a substitute for an HFC with a GWP
above 53 (see section IV.C.4. of this
proposal). Where ALD systems would
be required to monitor leaks in
appliances, EPA is proposing that leak
inspections for the appliances would be
required after exceeding the applicable
leak rate and undergoing a repair only
for the portions of the appliance that are
not being monitored by the ALD system
(e.g., if part of the appliance is not in an
enclosed space). This proposal is based
on an understanding that where the
ALD system is monitoring the
appliance, it serves the function of
monitoring for leaks. Thus, a
requirement for performing periodic
leak inspections on those portions of the
appliance would be unneeded. EPA
considers the leak inspections that are
proposed for codification at 40 CFR
84.106(g) and the requirements related
to ALD systems that are proposed for
codification at 40 CFR 84.108 to be
separate. That is to say, EPA would be
proposing these leak inspections
irrespective of any mandatory ALD

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

system requirement and vice versa.
However, recognizing that some
equipment could be subject to both
requirements, if both proposals are
finalized, to help coordinate the
requirements, EPA is proposing a
limited exception to the quarterly and
annual leak inspection requirements if
ALD systems are being used and meet
certain requirements. This proposed
limited exception is intended to allow
the use of the ALD system in those
circumstances to serve as a compliance
option for the leak inspection
requirement.
For further information and
requirements related to ALD systems
proposed in this action, refer to section
IV.C.4. Likewise, EPA is proposing that
if an owner or operator is voluntarily
using an ALD system to monitor leaks
in a refrigerant-containing appliance
that would not be subject to the
proposed requirement to use an ALD
system (e.g., the equipment has a charge
size below 1,500 pounds), any periodic
leak inspections would only need to be
performed after the applicable leak rate
is exceeded for the portions of the
appliance where the ALD system is not
monitoring for leaks. Again, where the
ALD system is monitoring the
appliance, it would serve the function of
monitoring for leaks in the equipment,
and periodic inspections on those
portions of the equipment would be
unneeded. EPA is also proposing that,
where an appliance exceeds the
applicable leak rate, an owner or
operator may choose to use an ALD
system, where not required under
proposed requirements in section
IV.C.4. (i.e., for certain appliances with
a charge size below 1,500 pounds), as a
compliance option in lieu of the
proposed requirements for periodic leak
inspections. However, leak inspections
would need to be performed for the
portions of the appliance where the
ALD system is not monitoring for leaks.
Where an owner/operator wishes to use
an ALD system in lieu of proposed
regulatorily required leak inspections,
the ALD system needs to meet the
requirements established elsewhere in
this proposal (including annual ALD
system audit and calibration
requirements). The owner or operator
would be required to follow certain
reporting and recordkeeping
requirements to show the ALD system is
meeting the intended functionality and
monitoring leaks effectively (as
described in section IV.C.4.b.).
EPA is requesting comment on all
aspects of this proposal. In particular,
EPA is seeking comment on the
proposed requirements for leak
inspection. EPA welcomes comment on

PO 00000

Frm 00030

Fmt 4701

Sfmt 4702

the frequency of leak inspections
required based on the charge size of the
equipment as well as the use of ALD
system (whether required as part of this
proposal or not) to satisfy the
requirements for leak inspections.
e. Chronically Leaking Appliances
As part of the proposed leak repair
provisions under subsection (h), EPA is
proposing to include specific
requirements for refrigerant-containing
appliances with a charge size of 15
pounds or more of a refrigerant that
contains an HFC or a substitute for an
HFC with a GWP above 53 that EPA
would consider as chronically leaking.
The proposed requirements are
designed to gather information and
support efforts to address such chronic
leaks, which would have the effect of
further minimizing emissions from
equipment.
As discussed in section IV.C.2. above,
under this proposal, covered appliances
include refrigerant-containing
appliances with charge sizes of 15
pounds or more of a refrigerant that
contains an HFC or a substitute for an
HFC with a GWP above 53. EPA is
proposing that an appliance would be
considered a chronically leaking
appliance if the appliance leaks 125
percent or more of its full charge within
a calendar year. The proposed
requirements for chronically leaking
appliances are similar, but not identical
to, analogous requirements under
82.157(j). For such chronically leaking
appliances, owners and operators are
required to submit reports describing
the efforts taken to identify leaks and
repair the appliance. Under subsection
(h), EPA is proposing to establish a
reporting requirement for covered
appliances that are considered
chronically leaking.
To better serve the purposes of
minimizing releases of regulated
substances and allow EPA to more
easily verify the information being
reported, EPA is proposing to
standardize the reporting format for
chronically leaking appliances. EPA is
proposing that the reports must be
submitted no later than March 1
following the calendar year of the ≥125
percent leak. EPA is proposing that
these reports cover basic identification
information (i.e., owner name, facility
name, facility address where appliance
is located, and appliance ID or
description), appliance type (comfort
cooling, IPR, or commercial
refrigeration), refrigerant type, full
charge of appliance (pounds), annual
percent refrigerant loss, dates of
refrigerant addition, amounts of
refrigerant added, date of last successful

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
follow-up verification test, explanation
of cause of refrigerant losses, repair
actions taken, and whether a retrofit or
retirement plan been developed for the
appliance, and, if so, the anticipated
date of retrofit or retirement. EPA
proposes that these reports be submitted
electronically in a format specified by
EPA. EPA anticipates that the
information in these reports would
either be contained in the records EPA
is proposing that owner or operators
would be required to maintain, or they
are the type of information that would
be on hand during the ordinary course
of business. Because of the amount of
refrigerant emitted, chronically leaking
appliances warrant special attention.
These reporting requirements for
chronically leaking equipment are
designed to help ensure that owner or
operators are complying with the leak
repair provisions and that they have
taken appropriate steps to identify the
leaks and correct the root cause of those
leaks. These reports would allow EPA to
evaluate compliance with the regulatory
requirements and to identify entities
that may benefit from compliance
assistance and other outreach efforts.
These reports would also allow EPA to
assess common root causes for
appliances that chronically leak, which
would facilitate consideration of
approaches to mitigate these leaks and
minimize the releases of HFCs from
such equipment. EPA discusses whether
this information is entitled to
confidential treatment in section V.A.1.
of this document.
EPA is proposing to set the reporting
threshold for appliances that leak 125
percent of the full charge within a
calendar year, as the Agency intends to
avoid capturing refrigerant-containing
appliances affected by unavoidable
losses of full charge. In order to be
subject to the requirement, appliances
would have to lose their full charge and
then a significant quantity more within
a single calendar year. EPA requests
comment on the 125 percent threshold
and whether, given the focus of
minimizing releases of regulated
substances, that threshold should be
lowered. For example, EPA is
considering lowering the threshold to
110 percent to avoid capturing
refrigerant-containing appliances
affected by unavoidable losses of full
charge, but a lower amount leaked
beyond a full charge would be required
to trigger the provisions for chronically
leaking appliances.
f. Retrofit and Retirement Plans
EPA is proposing to include
requirements for retrofit and retirement
plans in the proposed leak repair

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

provisions under subsection (h) for
applicable refrigerant-containing
appliances that contain HFCs or certain
substitutes for HFCs as a refrigerant.
These requirements reduce emissions by
capping the amount of time an
appliance can remain in operation when
it is known to be leaking above the leak
rate threshold. Owners or operators may
choose to retrofit or retire a leaking
appliance rather than repair a leak, or,
in some situations, may be required to
retrofit or retire the appliance if
successful leak repair cannot be
achieved and verified. The proposed
requirements would also further serve
the purposes of minimizing releases and
maximizing the reclaiming of HFCs, as
proper retrofit or retirement of a leaking
appliance would ensure that any further
HFC emissions from such equipment are
mitigated. Additionally, in the process
of retrofitting or retiring an appliance,
the refrigerant that was remaining in the
leaking appliance would typically be
recovered and could then subsequently
be reclaimed.
EPA is proposing requirements for
developing retrofit and retirement plans
for refrigerant-containing appliances
where leaks cannot be repaired, or an
owner or operator chooses to retrofit to
a lower GWP refrigerant (where
available) or retire an appliance rather
than repair a leak. The proposed
requirements would apply to
refrigerant-containing appliances with
15 pounds or more of a refrigerant that
contains an HFC or a substitute for an
HFC with a GWP above 53. The
provisions proposed in this action
would provide the details on the timing
for creating a retrofit or retirement plan
for covered refrigerant-containing
appliances, and what must be contained
in a retrofit or retirement plan. EPA is
proposing that a retrofit or retirement
plan be created within 30 days of
certain scenarios. The Agency
understands this timing is sufficient for
an owner or operator to either attempt
to repair the leak with all necessary
requirements as described in section
IV.C.3.b. or make a business decision to
directly begin the retrofit or retirement
process. It is necessary to cap this
timing requirement to minimize
emissions from leaks in the case where
an owner or operator fails to take any
action after finding that their applicable
refrigerant-containing appliance is
leaking above the applicable leak
threshold. After 30 days, the owner or
operator must begin developing a
retrofit or retirement plan. The
following scenarios describe when a
retrofit or retirement plan must be
developed:

PO 00000

Frm 00031

Fmt 4701

Sfmt 4702

72245

• An appliance is leaking above the
applicable leak rate and the owner or
operator intends to retrofit or retire the
appliance rather than repair the leak;
• An appliance is leaking above the
applicable leak rate and the owner or
operator fails to take action to identify
or repair the leak; or
• An appliance is continuing to leak
above the applicable leak rate after an
attempted leak repair and verification
testing.
Developing the retrofit or retirement
plan is a key process in ensuring that
each step of the plan is successfully
performed such that releases of HFCs
are minimized and the reclaiming of the
HFCs can be maximized. EPA is
proposing that the retrofit or retirement
plan include information regarding the
location of the appliance, characteristics
of the appliance, a procedure for how
the appliance will be converted to
accommodate a different refrigerant (if
the appliance is being retrofitted), plans
for the disposition of any recovered
refrigerant and the appliance (if the
appliance is being retired), and a
schedule for the completion of the
appliance retrofit or retirement.
Characteristics of the appliance that
would be retrofitted or retired include
the type and full charge of the
refrigerant used in the appliance, and
for retrofitted, the type and full charge
of the refrigerant to which the appliance
will be retrofitted. In describing how the
appliance would be retrofitted, the
owner or operator must include an
itemized procedure for converting the
appliance to a different refrigerant,
including changes required for
compatibility. This would also include
any changes for compatibility that relate
to safety considerations to ensure the
safety of technicians and consumers
when converting an appliance to a
different refrigerant, which would
further serve one of the purposes
identified in subsection (h)(1). EPA is
also proposing that the retrofit or
retirement plan must include
information on how any recovered
refrigerant is being dispositioned. In the
case of retiring an appliance, the
retirement plan would need to include
how the appliance is being
dispositioned. EPA is proposing that the
retrofit or retirement plan include a
schedule for completion of the retrofit
or retirement and, unless additional
time is granted, that the schedule would
not exceed one year of the plan’s date
(not to exceed 12 months from when the
plan was finalized).
EPA is proposing that an owner or
operator may request relief from the
provisions of a retrofit or retirement
plan if they are able to establish that an

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

72246

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

appliance is no longer leaking above the
applicable leak rate within 180 days of
creating the plan, and the owner or
operator agrees to repair all identified
leaks within one year of the plan’s date.
The owner or operator would be
required to submit specified information
to EPA, including information regarding
leaks in the appliance, descriptions of
the work completed/to be completed,
and more, as found in the proposed
regulatory text.
For IPR equipment, EPA is proposing
that extensions could be requested in
cases where requirements or other
applicable Federal, state, local, or Tribal
regulations would make it impossible to
complete the retrofit or retirement
within one year. In this case, owners or
operators could be permitted additional
time to the extent needed to comply
with the applicable regulations. EPA is
also proposing that extensions could be
requested for IPR equipment if the
equipment is custom-built and the
supplier of the appliance or one of its
components has quoted a delivery time
of more than 30 weeks. In such cases,
the appliance or component must be
installed within 120 days of receipt. If
additional time is needed, the owner or
operator would need to submit a request
for the additional time to EPA. Further,
EPA is proposing that extensions could
be requested to complete a retrofit or
retirement if the IPR equipment is
located in an area subject to radiological
contamination or shutting down the
appliance will directly lead to
radiological contamination. EPA is
proposing that in this case, additional
time would be permitted to the extent
necessary to complete the retrofit in a
safe working environment. EPA is not
proposing extensions specifically
applicable to Federally owned
equipment (see, e.g., the provisions at
40 CFR 82.157(i)(3)) because EPA
believes these circumstances can be
addressed under the other proposed
extension provisions, but EPA requests
comment on this.
EPA is requesting comment on all
aspects of this proposal, and, in
particular, the proposed provisions for
retrofit and retirement plans for
applicable refrigerant-containing
appliances. EPA is requesting comment
on the timing for developing retrofit or
retirement plans and the timing for
executing these plans. EPA is also
requesting comment on if the Agency
should require that refrigerant be
recovered as a part of the retrofit or
retirement plan, or if that is already
sufficiently covered by requirements
under 40 CFR part 82, subpart F.
Further, EPA is seeking comment on
requiring that if an owner or operator is

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

developing a retrofit plan, they must
include that a lower GWP refrigerant
will be used in the retrofitted appliance.
EPA notes that it is not assuming early
retirement of appliances as a result of
the proposed rule provisions. EPA is
seeking comment on any potential
impacts of the proposed leak repair
provisions on the retirement of affected
refrigerant-containing appliances.
g. Recordkeeping and Reporting
EPA is proposing to include
recordkeeping and reporting
requirements to support compliance
with the proposed leak repair provisions
under subsection (h) for applicable
refrigerant-containing appliances that
contain HFCs or certain substitutes for
HFCs as a refrigerant. For example, the
requirements would control
recordkeeping and reporting practices,
process, or activities for servicing and
repair that involves HFCs or a substitute
for an HFC. As noted in section II.B. of
this document, EPA’s authority to
require recordkeeping and reporting
under the AIM Act is also supported by
section 114 of the CAA, which applies
to the AIM Act and rules promulgated
under it as provided in subsection
(k)(1)(C) of the AIM Act.
As discussed in section IV.C.2. above,
this proposal covers refrigerantcontaining appliances with charge sizes
of 15 pounds or higher of a refrigerant
that contains an HFC or a substitute for
an HFC that has a GWP above 53. The
recordkeeping and requirements related
to the leak repair requirements under
subsection (h) would be applicable to
the full range of appliances that are
subject to the proposed leak repair
provisions, including those containing
at least 15 pounds of refrigerant with
limited exemptions, as described in
section IV.C.2.b. for certain appliances.
The proposed recordkeeping and
reporting requirements provide critical
information about whether required
actions were taken and are part of the
suite of compliance tools included in
this proposal. Compliance with the
overall leak repair requirements is
intended to minimize the release of HFC
and substitute refrigerants and the
Agency considers these recordkeeping
and reporting requirements necessary to
readily assess compliance. Records that
would demonstrate noncompliance or
are incomplete may be used for
enforcement purposes. The proposed
requirements are informed in part by
EPA’s consideration of its experience
implementing similar regulations under
CAA section 608 at 40 CFR 82.157 and
the recordkeeping and reporting
requirements that have been used to

PO 00000

Frm 00032

Fmt 4701

Sfmt 4702

assure compliance with those
provisions.
EPA is proposing recordkeeping
requirements for refrigerant-containing
appliances with a charge size of 15
pounds or more of a refrigerant
containing an HFC or a substitute for an
HFC with a GWP above 53 under
subsection (h) that are similar to those
at 40 CFR 82.157(l). Where EPA is
proposing requirements for
recordkeeping, we are proposing that
record be maintained for three years in
either paper or electronic format. An
owner or operator may contract out the
record generation responsibilities but
retains ultimate liability for compliance
and must be able to access these records
electronically or in hard copy from the
facility where the appliance is located.
All recordkeeping requirements can be
found in § 84.106(l) of the proposed
regulatory text. These records would be
the primary means for the facility to
demonstrate compliance with the leak
repair requirements, and EPA would
review them when evaluating
compliance. EPA could access these
records in various ways, including, but
not limited to, via on-site review of the
records or requesting them via an
information request. In general, EPA is
proposing the following recordkeeping
requirements for owners and operators
under subsection (h):
• Maintain records documenting the
full charge of appliances;
• Maintain records, such as invoices
or other documentation showing when
refrigerant is added or removed from an
appliance, when a leak inspection is
performed, when a verification test is
conducted, and when service or
maintenance is performed;
• Maintain retrofit and/or retirement
plans;
• Maintain retrofit and/or extension
requests submitted to EPA;
• If a system is mothballed to
suspend a deadline, maintain records
documenting when the system was
mothballed and when it was brought
back on-line (i.e., when refrigerant was
added back into the appliance or
isolated component of the appliance);
• Maintain records of purged and
destroyed refrigerant if excluding such
refrigerant from the leak rate;
• Maintain records to demonstrate a
seasonal variance; and
• Maintain copies of any reports
submitted to EPA under the proposed
reporting requirements in this action.
EPA is proposing reporting
requirements for refrigerant-containing
appliances that with a charge size of 15
pounds or more of a refrigerant
containing an HFC or a substitute for an
HFC with a GWP above 53 under

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

subsection (h) that are similar to those
at 40 CFR 82.157(m). The proposed
reporting requirements include
notifications to EPA that include
specified information when:
• The owner or operator is seeking an
extension to complete repairs;
• The owner or operator is seeking an
extension to complete a retrofit or
retirement plan;
• The owner or operator is seeking
relief from the obligation to retrofit or
retire an appliance;
• When an appliance leaks 125
percent or more of the full charge in a
calendar year;
• The owner or operator is excluding
purged refrigerants that are destroyed
from annual leak rate calculations for
the first time.
Additional detail on these proposed
recordkeeping and requirements is
available in the proposed regulatory
text. Proposed recordkeeping and
reporting requirements in this action for
ALD systems are described in section
IV.C.4.b.
EPA is requesting comment on all
aspects of this proposal, and, in
particular, the recordkeeping and
reporting requirements associated with
the leak repair provisions in this
proposal. EPA is requesting comment on
the information required in the
recordkeeping and reporting provisions
and if there is any additional
information that would be relevant for
the proposed leak repair requirements
in this action.
4. Automatic Leak Detection Systems
ALD systems on refrigerantcontaining appliances are refrigerant
leak detection technologies calibrated to
continuously monitor a refrigerantbased system(s) for evidence of leaks
and alert an operator upon detection of
a leak. Repairing leaks sooner further
minimizes emissions. Where ALD
systems are used, it can result in early
and effective detection of leaks, so that
the leaks can be repaired and emissions
of regulated substances or their
substitutes can quickly be mitigated. As
part of the proposed regulatory
requirements to implement subsection
(h)(1), EPA is proposing to require that
ALD systems be used for certain new
and existing refrigerant-containing
appliances to detect leaks, which would
trigger subsequent requirements. These
provisions would control practices,
processes, or activities regarding
servicing, repair or installation of such
appliances, which are a type of
equipment, and would involve a
regulated substance or a substitute for a
regulated substance. When an ALD
system detects a leak in a refrigerant-

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

containing appliance covered by this
proposal, an owner or operator of the
appliance would be required to either
perform practices, processes, and/or
activities to determine whether
servicing or repair of the appliance is
necessary (i.e., calculating a leak rate
and assessing it compared to the
applicable leak rate for the type of
appliance) or, alternatively,
preemptively repair the leak (i.e., before
adding refrigerant and calculating the
leak rate). EPA is proposing to explicitly
permit preemptive repair of the leak as
a compliance option to avoid the need
to add refrigerant to an appliance with
a known leak (which would otherwise
generally be necessary to calculate the
leak rate and determine if the applicable
leak rate is exceeded). If the preemptive
repair is being used as a compliance
option, it must occur within 30 days (or
120 days where an industrial process
shutdown would be necessary) of the
alert. These proposed requirements are
expected to facilitate prompt repair of
leaks, which would further help
minimize releases of regulated
substances from equipment.
In the case of preemptive repair, this
compliance option provides the
opportunity to repair an appliance that
is known to be leaking prior to the
addition of refrigerant. When refrigerant
is added to the appliance that
underwent preemptive repair, a leak
rate calculation would still be required.
If the leak rate calculation (performed
after the addition of refrigerant for the
follow-up verification test) conducted
after the preemptive repair reveals that
the appliance had leaked above the
applicable leak threshold, the proposed
suite of leak repair requirements would
still apply. The preemptive repair
actions can be considered in
determining whether the suite of leak
repair requirements triggered by the
exceedance of the applicable leak
threshold have been satisfied, but the
owner or operator of the appliance
would still need to ensure that the leaks
had been repaired according to the
proposed definition of repair and that
the other requirements proposed in 40
CFR 84.106 (e.g., initial and follow-up
verification tests, leak inspections
(where applicable) and related
recordkeeping) had been met.
EPA understands that for reasons
other than this proposal, ALD systems
already are in use to a certain extent.
For example, some owners and
operators may already use ALD systems
to serve as an early warning system for
detecting and repairing leaks. Some
owners and operators may choose to
install ALD systems from an economic
perspective as early detection and repair

PO 00000

Frm 00033

Fmt 4701

Sfmt 4702

72247

of leaks can avoid costs of replacing the
released refrigerant and operating
equipment at suboptimal levels and/or
the loss of perishable products due to
failure to maintain required cooling.
Further, there are provisions under 40
CFR 82.157 where an owner or operator
of a covered appliance with ODS
refrigerants may choose to use an ALD
system in place of performing regular
leak inspections as a part of the leak
repair provisions under CAA section
608 at 40 CFR 82.157. Nothing in this
proposal changes the requirements
related to ALD systems under CAA
section 608 for equipment containing
only ODS refrigerants. In other words,
an owner or operator of an appliance
that uses ODS-containing refrigerants
will continue to be required to meet any
and all requirements under 40 CFR
82.157 for that appliance, including if
they choose to use an ALD system to
comply with requirements under 40
CFR 82.157.
Additionally, there are safety
standards that apply when using certain
HFCs (whether neat or in a blend) and/
or substitutes for HFCs that have been
classified as lower flammability. Lower
flammability refrigerants in this context
are those that are classified by ASHRAE
as A2L refrigerants.65 UL Standard
60335–2–40 currently requires the use
of leak detectors for electrical heat
pumps, air conditioners and
dehumidifiers containing A2L
refrigerants.66 67 Under that standard,
leak detectors that detect pressure loss
are required in cases that the prescribed
A2L charge limit is exceeded (which is
typically around four pounds for
permanently installed applications).
That standard also prescribes that
refrigerant leak detectors be installed at
the factory for applicable appliances
65 ASHRAE Standard 34–2022 assigns a safety
group classification for each refrigerant which
consists of two alphanumeric characters (e.g., A2 or
B1). The capital letter indicates the toxicity class
(‘‘A’’ for lower toxicity) and the numeral denotes
the flammability. ASHRAE recognizes three
classifications and one subclass for refrigerant
flammability. The three main flammability
classifications are Class 1, for refrigerants that do
not propagate a flame when tested as per the
ASHRAE 34 standard, ‘‘Designation and Safety
Classification of Refrigerants;’’ Class 2, for
refrigerants of lower flammability; and Class 3, for
highly flammable refrigerants, such as the
hydrocarbon refrigerants. ASHRAE recently
updated the safety classification matrix to include
a new flammability subclass 2L, for flammability
Class 2 refrigerants that burn very slowly.
66 UL. 2019. ‘‘Understanding UL 60335–2–40
Refrigerant Detector Requirements.’’ https://
www.ul.com/news/understanding-ul-60335-2-40refrigerant-detector-requirements.
67 UL 60335–2–40, 2019. Household And Similar
Electrical Appliances—Safety—Part 2–40:
Particular Requirements for Electrical Heat Pumps,
Air-Conditioners and Dehumidifiers. Third Edition.
November 1, 2019.

E:\FR\FM\19OCP2.SGM

19OCP2

72248

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

and have factory established set points
for detection to avoid potential buildup
of concentrations of flammable
refrigerants.
a. Proposed Automatic Leak Detection
Requirements
EPA is proposing to require the use of
ALD systems for certain RACHP
equipment. Specifically, EPA is
proposing to require ALD systems for
IPR and commercial refrigeration
appliances containing 1,500 pounds or
more of a refrigerant that contains an
HFC or a substitute for an HFC with a
GWP above 53 for both new and existing
equipment. EPA is not proposing to
require ALD systems for comfort cooling
appliances. As previously noted, EPA
considers the leak inspections that are
proposed for codification at 40 CFR
84.106(g) and the requirements related
to ALD systems that are proposed for
codification at 40 CFR 84.108 to be
separate. However, as previously
discussed, in certain circumstances the
proposed leak inspection requirements
would recognize use of the ALD systems
that meets certain requirements under
the proposed 40 CFR 84.108 as a
compliance option that may be used in
lieu of quarterly or annual leak
inspections.
Beginning on January 1, 2025, for new
refrigerant-containing appliances, EPA
is proposing that an ALD system be
installed as part of the overall appliance
installation, either during the
installation of the new appliance or
within 30 days from when the new
appliance is installed. EPA understands
that depending on the type of ALD
system, it may be more practicable to
install an ALD system during the
appliance installation. In other cases,
additional time may be needed to secure
a contractor or technician to install the
ALD system, or there may be unforeseen
delays in acquiring an ALD system. For
existing refrigerant-containing
appliances, EPA is proposing that an
ALD system must be installed within
one year of the effective date of the final
rule.
EPA is proposing that refrigerantcontaining appliances in the
commercial refrigeration and IPR
subsectors with a charge size of 1,500
pounds or more with a refrigerant that
contains an HFC or a substitute for an
HFC that has a GWP above 53 (whether
the HFC or substitute is used neat or in
a blend) would be required to use ALD
systems. The refrigerants that would be
covered are the same as for other leak
repair provisions proposed in this
action, but the proposed full charge size
cutoff for using ALD systems (1,500
pounds) is greater than that of the other

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

leak repair provisions in this proposal
(15 pounds). EPA understands that
using ALD systems for refrigerantcontaining appliances that have lower
refrigerant charge sizes (i.e., below 1,500
pounds) may be an option an owner or
operator could take so they are alerted
to leaks sooner. This could also be an
option an owner or operator takes for
specific refrigerants. However,
discussed later in this section, EPA is
not proposing to require use of ALD
systems for refrigerant-containing
appliances with less than 1,500 pounds.
Similarly, EPA also understands that
owners and operators with larger charge
size appliances may be more likely to
have in place refrigerant management
plans, routine equipment inspections, or
other formal or even informal
mechanisms aimed at reducing
refrigerant losses.
EPA considered a number of potential
options for the threshold for requiring
ALD systems. The Agency considered
thresholds as low as 15 or 50 pounds to
match the proposed leak repair
requirements or as analogous with the
longstanding CAA section 608 leak
repair threshold for ODS-containing
appliances, respectively. The Agency
also considered as high as 2,000
pounds, which is consistent with the
current state requirement in
California.68 Throughout this proposal,
EPA uses charge sizes to differentiate
requirements; for example, EPA
proposed 500 pounds as a cutoff for the
frequency of inspections for certain
appliances and the Agency also
considered this as a potential cutoff for
proposing to require ALD systems.
Further, another potential cutoff
considered was 200 pounds, which was
used as a point of inflection for
proposing certain GWP-limit based
restrictions under the Technology
Transitions program.69
EPA is also aware of other cutoffs
used for requirements for using ALD
systems in certain states and
internationally. Across states, the
Agency is aware that California 70 has a
68 California Code of Regulations, Regulation for
the Management of High Global Warming Potential
Refrigerants for Stationary Sources. Available:
https://ww2.arb.ca.gov/sites/default/files/2020-07/
finalfro_0.pdf.
69 In the proposed Technology Transitions rule
(87 FR 76738, December 15, 2022), the inflection
point of 200 pounds for a charge size of equipment
in certain subsectors is used to propose different
GWP-limit based restrictions. This point was
considered based on safety standards ANSI/
ASHRAE Standard 15–2019 and UL 60335–2–89,
which set a charge limit set a charge limit for using
lower flammability refrigerant for certain
applications that vary by refrigerant but does not
exceed 200 pounds.
70 California Code of Regulations, Regulation for
the Management of high Global Warming Potential

PO 00000

Frm 00034

Fmt 4701

Sfmt 4702

similar provision with a cutoff of 2,000
pounds that has been in place for over
ten years and Washington 71 is
considering a cutoff of 1,500 pounds in
a recent proposal for requiring ALD
systems on refrigeration equipment.
Internationally, the EU 72 uses a CO2ebased threshold, requiring that leakage
detection systems be installed for
stationary equipment (including
refrigeration, air conditioning, heat
pumps, and fire protection equipment
and electrical switch gear and organic
Rankine cycles) that contain 500 or
more metric tons of CO2e. For example,
if a stationary refrigeration appliance is
charged with R–404A (which has a GWP
of 3,920), then the minimum charge size
required to use a leakage detection
system would be approximately 281
pounds under the EU’s approach. EPA
notes that it is considering using either
a pounds-based approach or a CO2ebased approach to establishing the
threshold for these requirements. While
there are certain advantages to CO2e
approaches, such as providing an
advantage for lower GWP refrigerants,
the Agency also understands that for
compliance purposes, limits based on
pounds also has advantages. Refrigerant
decisions are based on actual amounts
of refrigerant added and the leak rate
calculations are also based on pounds.
Therefore, EPA is proposing to set the
requirement based on pounds but is
soliciting comments on a CO2e approach
too.
As a consideration in setting the
proposed threshold, EPA took into
account to what extent ALD systems
may already be in use and the types of
equipment to which they are marketed.
For example, many larger refrigeration
appliances (e.g., a charge size of 1,500
to 2,000 pounds or more) may already
use ALD systems per certain state
requirements or to reduce negative
economic impacts associated with
replacing leaking refrigerant. These
larger refrigeration appliances have
potential to leak greater amounts of
refrigerant, such that owners and
operators using an ALD system to
quickly detect leaks would further
support the statutory purposes in
Refrigerants for Stationary Sources. Available:
https://ww2.arb.ca.gov/sites/default/files/2020-07/
finalfro_0.pdf.
71 Washington, Department of Ecology,
Hydrofluorocarbons (HFCs) and Other Fluorinated
Greenhouse Gases, Draft (January 27, 2023).
Available: https://ecology.wa.gov/DOE/files/9b/9b9
1965d-4986-4c42-aa50-fd54cb97a2a4.pdf.
72 Regulation (EU) No 517/2014 of the European
Parliament and of the Council of 16 April 2014 on
fluorinated greenhouse gases and repealing
Regulation (EC) No 842/2006, May 2014, available
at: https://eur-lex.europa.eu/legal-content/EN/TXT/
PDF/?uri=CELEX:32014R0517.

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
subsection (h) of minimizing releases of
HFCs from equipment and maximize the
amount of HFC that is available for
reclaiming. EPA also considered the
availability of ALD systems for
refrigeration appliances in the United
States. In the draft TSD titled American
Innovation and Manufacturing Act of
2020—Subsection (h): Automatic Leak
Detection System in the docket for this
proposal, EPA assessed the market
presence and number of manufacturers
of ALD systems that sell to the U.S.
market. EPA notes that most
manufacturers make direct ALD
systems, while indirect ALD systems are
newer technologies on the market.73
Since ALD systems have generally only
been required for larger refrigeration
appliances per certain state
requirements, or are likely used in larger
charge size refrigeration appliances to
avoid potential economic burden
associated with replacing refrigerant
that has leaked, EPA anticipates that the
current market presence of ALD system
manufacturing may be generally aligned
to demand for ALD systems for larger
refrigeration appliances. The proposed
threshold accounts for the potential for
an increased demand of ALD systems,
where manufacturers of such systems
may not be prepared for an increased
demand if EPA were to propose a lower
charge size, opening the requirement for
ALD systems to a larger inventory of
refrigeration appliances. Taking into
account existing and pending state
requirements, and a likely degree of
voluntary adoption of ALD systems,
EPA estimates that the proposed
requirement will impact approximately
50,000 appliances over the year 2025
and 6,500 per year in subsequent years.
EPA has identified 10 manufacturers of
ALD systems for the U.S. market. There
are eight manufacturers making direct
ALD systems and three manufacturers
making indirect ALD systems (one
manufacturer was identified to make
both types of ALD systems). The
majority of installed systems are likely
direct ALD systems. EPA estimates that
one of the largest manufacturers of
direct ALD in the US makes between
6,500–7,000 direct ALD systems per
year. For additional information and
details on the estimated emissions
reductions and costs related to ALD
systems, see the draft TSD titled
Analysis of the Economic Impact and
Benefits of the Proposed Rule available
in the docket for this action. EPA also
73 EPA describes each type (i.e., direct and
indirect) of ALD system later in this section and in
detail in the draft TSD titled American Innovation
and Manufacturing Act of 2020—Subsection (h):
Automatic Leak Detection System.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

notes that later in this section, we are
seeking comments specifically on the
proposed threshold for ALD system
requirements as well as comment on the
current manufacturing landscape of
ALD systems.
EPA considered and is not proposing
requiring ALD systems for all
refrigerant-containing appliances above
a certain charge size. Instead, after
considering the opportunities to reduce
leaks and thus minimize emissions, EPA
decided to limit this proposed
requirement to commercial refrigeration
and IPR appliances. EPA is not
proposing requirements for using ALD
systems for appliances used solely for
comfort cooling. The Agency
understands that refrigerant-containing
appliances used for comfort cooling
typically do not leak to the same degree
as appliances in the commercial
refrigeration and IPR subsectors.
Medium (charge size of 200–2,000
pounds of refrigerant) and large (charge
size 2,000 pounds or greater of
refrigerant) comfort cooling appliances
average annual leak rates of around 10
percent, while medium and large
commercial refrigeration and IPR
appliances have average leak rates that
are around two to three times greater.74
This is consistent with EPA’s proposed
requirements for leak inspections, such
that appliances used for comfort cooling
would not have more frequent required
inspections as a part of the leak repair
provisions (see section IV.C.3.d.). EPA
previously noted in the 2016 CAA 608
Rule (81 FR 82272, November 16, 2016)
that larger commercial refrigeration and
IPR appliances tend to have larger
annual average leak rates than comfort
cooling appliances. Further, larger
commercial refrigeration and IPR
appliances would have a greater amount
of refrigerant lost compared to comfort
cooling appliances even if the leaks rate
were the same since these larger
appliances typically have significantly
larger refrigerant charge sizes. Thus, the
primary benefit of early leak detection
from an ALD system would not be as
useful for appliances solely used for
comfort cooling. However, if an
appliance has a dual function (e.g., IPR
and comfort cooling), an ALD system
would be required. For example, if the
refrigerant coming off the evaporator in
an industrial process were cool enough,
it could be directed towards co-located
offices or break rooms to provide air
conditioning, before being routed back
to the compressor(s). Such a system
would provide both IPR and comfort
74 Average annual leak rates by appliance type
and charge size are provided in the RIA Addendum.

PO 00000

Frm 00035

Fmt 4701

Sfmt 4702

72249

cooling, and for purposes of this rule, an
ALD system would be required.
ALD systems detect leaks either by a
direct system that automatically detects
the presence of refrigerant leaked into
the air (e.g., an alert is triggered at a
specified concentration, typically in
parts per million (ppm)) from a
refrigeration system, or by an indirect
system that automatically analyzes
operating conditions (e.g., temperature
or pressure) within a refrigeration
system as indicators of whether a
refrigerant leak has occurred. Both types
of ALD systems can help to ensure early
detection of leaks and help to identify
the location and severity of a leak. Thus,
EPA is not proposing to prescribe
whether direct or indirect ALD systems
must be used, but rather is proposing
that either type of system, or a
combination of direct and indirect
systems, would be required, and is
proposing requirements that are specific
to each type of ALD system. For both
indirect and direct systems, EPA is
proposing that the ALD system be
installed on covered refrigerantcontaining appliances where the
components (e.g., compressor,
evaporator, condenser) of the refrigerant
circuit are located within an enclosed
building or structure (or the whole
refrigerant circuit if it is entirely
enclosed within a building or structure).
Further, EPA is proposing where ALD
systems are required for covered
appliances that the systems be
calibrated or audited annually as
described in section IV.C.4.b.
Direct refrigerant leak detection
systems are fixed hardware that directly
monitor the concentration of refrigerants
in the air. For direct ALD systems, it is
essential that gas sensors are located at
all leak-prone components of a
refrigeration system; otherwise, some
leaks may go undetected. The benefits of
direct ALD systems include being able
to pinpoint the location and severity of
a leak. Direct ALD systems are
commissioned to send an ‘‘alarm’’ to
maintenance and/or operations staff if
the programmed leak level threshold is
exceeded. EPA is proposing that if an
owner or operator chooses to use a
direct ALD system to comply with the
proposed provisions to detect refrigerant
leaks in equipment, the programmed
leak level threshold to alert the operator
would be when a concentration of 100
ppm of vapor of the specified refrigerant
is detected. EPA is also proposing that
the leak detection sensors must be
capable of accurately detecting a
concentration level of 10 ppm of the
vapor of the specified refrigerant. The
leak level threshold and minimum level
of detection are critical to catch leaks in

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

72250

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

equipment. If the leak level threshold is
set too high, the ALD system will only
provide an alarm in the case of
catastrophic leaks. The technical
feasibility of the 100 ppm threshold is
well established. This has been the
threshold used by the California Air
Resources Board (CARB) and is also the
standard in provisions at 40 CFR
82.157(g)(4)(i) for ALD systems that are
used in lieu of quarterly or annual leak
inspections, as part of the leak repair
requirements under CAA section 608.
EPA is proposing that if a direct ALD
system detects a leak based on the 100
ppm threshold, the owner or operator
would be required to either perform a
leak rate calculation to determine if the
leak rate threshold has been exceeded,
or alternatively they may preemptively
repair the leak before adding refrigerant
and calculating the leak rate. In order to
calculate the leak rate, refer to section
IV.C.3.a. of this action. EPA is proposing
that a leak rate calculation must be
performed within 30 days (or 120 days
where an industrial process shutdown
would be necessary) of the alarm where
a direct ALD system is used for required
equipment. If the leak rate calculated is
above the applicable leak rate, as
discussed in section IV.C.3. of this
preamble, all of the leak repair
requirements proposed in this action
(including the repair requirements,
inspections, verification tests and
recordkeeping and reporting) would
then apply. Alternatively, if the owner
or operator chooses to preemptively
repair the detected leak, a leak rate
calculation would be performed after
the preemptive repair; however, the leak
rate calculation would still be required
to be performed within 30 days (or 120
days where an industrial process
shutdown would be necessary) of the
alarm where a direct ALD system is
used for required equipment, and
accordingly the preemptive repair
would also need to occur in that time
frame. If the leak rate calculation
(performed after the addition of
refrigerant pursuant to the follow-up
verification test) conducted after the
preemptive repair reveals that the
appliance had leaked above the
applicable leak threshold, the proposed
suite of leak repair requirements would
apply. The preemptive repair actions
can be considered in determining
whether the suite of leak repair
requirements triggered by the
exceedance of the applicable leak
threshold have been satisfied, but the
owner or operator of the appliance
would still need to ensure that the leaks
had been repaired according to the
proposed definition of repair and that

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

the other requirements proposed in 40
CFR 84.106 (e.g., initial and follow-up
verification tests, leak inspections
(where applicable), and related
recordkeeping) had been met. By
allowing a leak detected by an ALD
system to be preemptively repaired
before the addition of refrigerant and
calculation of the leak rate, EPA
anticipates that this would avoid
requiring owners and operators to add
refrigerant to a system with a known
leak, thereby saving the cost of
refrigerant that might subsequently leak
prior to the repair, as well as prevent
unnecessary emissions of refrigerant.
Additionally, preemptive repair of leaks
allows owners and operators to have a
‘‘head start’’ on repairing leaks if it is
later found that the applicable leak rate
threshold has been exceeded when the
leak rate calculation is performed.
Indirect ALD systems rely on data
analytics to detect leaks rather than the
direct detection of refrigerant gas.
Indirect ALD systems monitor the
operation of a refrigerant-based system
to infer whether a leak is present. This
method is typically conducted using
existing sensors and hardware that are
already located on site, and it relies on
algorithms to evaluate existing
conditions, such as liquid levels,
temperatures, and ambient conditions to
indicate if a leak is occurring. EPA
understands that indirect systems can
be calibrated to provide an alarm when
a specified predicted refrigerant leak
rate has occurred. EPA is proposing that
if an owner or operator chooses to use
an indirect ALD system to comply with
the proposed provisions to detect leaks
in equipment, that the system be
calibrated to provide an alarm when the
system has provided measurements that
indicate that 50 pounds of refrigerant or
10 percent of the full charge of
refrigerant, whichever is less, has
leaked. At that point, as for direct ALD
systems, EPA is proposing that the
owner or operator would be required to
perform a leak rate calculation, or
alternatively they may preemptively
repair the leak before adding refrigerant
and calculating the leak rate. EPA is
proposing that a leak rate calculation be
performed within 30 days (or 120 days
where an industrial process shutdown
would be necessary) of the alarm where
an indirect ALD system is used for
required equipment. If the calculated
leak rate is above the applicable leak
trigger rate (as discussed in section
IV.C.3. of this preamble), all of the leak
repair requirements proposed in this
action (including the repair
requirements, inspections, verification

PO 00000

Frm 00036

Fmt 4701

Sfmt 4702

tests and recordkeeping and reporting)
would then apply.
If the owner or operator chooses to
preemptively repair the detected leak, a
leak rate calculation would be
performed after the repair, for example
when refrigerant is added to perform the
follow-up verification test. The same
requirements as described above for
where an owner or operator chooses to
do preemptive leak repair when using
direct ALD system apply in the scenario
where preemptive leak repair is
performed when using an indirect ALD
system. The leak rate calculation would
still be required to be performed within
30 days (or 120 days where an industrial
process shutdown would be necessary)
of the alarm where an indirect ALD
system is used for required equipment,
and accordingly the preemptive repair
would also need to occur in that time
frame. If the leak rate calculation
(performed after the addition of
refrigerant pursuant to the follow-up
verification test) conducted after the
preemptive repair reveals that the
appliance had leaked above the
applicable leak threshold, the proposed
suite of leak repair requirements would
apply. The preemptive repair actions
can be considered in determining
whether the suite of leak repair
requirements triggered by the
exceedance of the applicable leak
threshold have been satisfied, but the
owner or operator of the appliance
would still need to ensure that the leaks
had been repaired according to the
proposed definition of repair and that
the other requirements proposed in 40
CFR 84.106 (e.g., initial and follow-up
verification tests, leak inspections
(where applicable), and related
recordkeeping) had been met.
EPA notes that a 10 percent loss in
full charge does not directly correspond
to the leak rate threshold of 20 percent
for commercial refrigeration and 30
percent for IPR. The 10 percent of total
charge lost when an indirect ALD
system alarms may equate less than or
greater than an annualized leak rate of
20 or 30 percent depending on the
timeframe over which the leak occurred.
See section IV.C.3.a. for more
information on calculating the
annualized leak rate. In any event, this
difference is reasonable because the
primary purpose of the ALD system is
to allow the owner or operator to obtain
knowledge of the leak earlier (e.g.,
before operations are impacted) and to
facilitate earlier repair, whether through
preemptive repair before the leak rate
threshold is exceeded or through
required repairs after the leak rate
threshold is exceeded.

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
The technical feasibility of the ‘‘50
pounds of refrigerant or 10 percent of
the full charge, whichever is less’’
standard is well established. This has
been the threshold used by both CARB
and is also the standard in provisions at
40 CFR 82.157(g)(4)(ii) for ALD systems
that are used in lieu of quarterly or
annual leak inspections, as part of the
leak repair requirements under CAA
section 608.
EPA is requesting comment on all
aspects of this proposal, and, in
particular, aspects of the proposed
requirements for installing and using
ALD systems on refrigerant-containing
appliances, as well as the proposed
compliance dates. EPA is requesting
comment on the types of appliances
(e.g., only refrigeration equipment) and
the charge size cutoff for appliances
(i.e., 1,500 pounds) that would be
required to use ALD systems. For
example, should EPA consider
including comfort cooling appliances in
the equipment required to use ALD
systems or should a lower or higher
charge size cutoff be used, or should a
different approach be used for
determining applicability for this
requirement (such as a CO2e based
approach)? EPA continues to consider
options for the charge size cutoff for
applying ALD system provisions,
particularly, those discussed in this
preamble (e.g., 200, 500 pounds, 1,000
pounds, 2,000 pounds) and requests
comment on these and other potential
cutoffs for requiring ALD systems on
refrigerant-containing appliances.
EPA is also requesting comment on
the proposed alarm trigger thresholds
and detection levels for both direct and
indirect ALD systems. For direct ALD
systems, EPA is requesting comment if
it would be appropriate to lower the
required alert trigger threshold to 50
ppm or to lower the concentration
detection level to 5 ppm. For indirect
ALD systems, EPA is seeking comment
on requiring that an indirect ALD
system alert at a lower measurement to
detect leaks sooner (e.g., 5 percent of the
full charge). For either type of ALD
system, EPA requests comment on
whether these lower levels are
technically feasible, whether they
would lead to increase in false positives,
and whether existing ALD systems used
on refrigerant-containing appliances
should be grandfathered if EPA were to
lower these levels.
As noted above in this section, EPA
is aware of ten manufacturers currently
making ALD systems and selling them
in the U.S. market. Many of these
companies have been supplying those
that are required by state regulations,
those that chose to use ALD systems as

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

an option under CAA section 608, and
those that choose on a voluntary basis
to use ALD systems. By requiring ALD
systems nationally for certain types of
RACHP equipment, EPA understands
demand will increase in short time.
Therefore, EPA requests comment and
data or other supporting information on
whether supply and availability of ALD
systems will be available to meet the
proposed compliance dates for new and
existing appliances. EPA anticipates
that ALD systems for new appliances
would be able to comply with the
January 1, 2025 date, and thus the
options described are focused only on
existing equipment. However, EPA
requests comments on whether
additional time would be needed for
ALD system installations in new
appliances as well. EPA considered but
did not propose as its lead option to
require ALD systems for existing
appliances when there is a triggering
event (e.g., a leak rate threshold
exceedance). In this option, existing
appliances would not be required to
install ALD systems within one year of
the effective date of the final rule, but
they would be required to obtain and
install ALD systems within one year of
a leak rate threshold exceedance
(measured from the date of the
refrigerant addition that triggered the
leak rate calculation that revealed the
exceedance). Another option EPA
considered but did not propose as its
lead option would be to phase in the
requirement for ALD systems for
existing refrigerant-containing
appliances over a longer time frame,
such as over the course of three years.
EPA requests comment on the
requirements for ALD systems including
these options the Agency considered.
Additional information is available in
the draft TSD named American
Innovation and Manufacturing Act of
2020—Subsection (h): Automatic Leak
Detection System available in the docket
for the proposed rulemaking.
b. Recordkeeping and Reporting
EPA is proposing specific reporting
and recordkeeping requirements for
ALD systems that would be required
under this action under subsection (h).
Where ALD systems are required, EPA
is proposing that owners or operators
maintain records regarding the annual
calibration or audit of the system. EPA
is also proposing to require that records
be maintained each time an ALD system
triggers an alert, whether that be based
on the applicable ppm threshold for a
direct ALD system or the indicated loss
of refrigerant measured in an indirect
ALD system. When an ALD system
alerts of a leak, EPA is proposing that

PO 00000

Frm 00037

Fmt 4701

Sfmt 4702

72251

the owner or operator maintain a record
of the date the ALD systems alerted to
a leak and the location of the leak. The
recordkeeping requirements related to
when a leak rate calculation is
conducted are described in section
IV.C.3.g of this document. As noted in
section II.B. of this document, EPA’s
authority to require recordkeeping and
reporting under the AIM Act is also
supported by section 114 of the CAA,
which applies to the AIM Act and rules
promulgated under it as provided in
subsection (k)(1)(C) of the AIM Act.
EPA is proposing recordkeeping
requirements in the case where an
owner or operator chooses to use an
ALD system, where not required, as a
compliance option in lieu of periodic
inspections for an appliance that has
exceeded an applicable leak rate. EPA is
proposing that owners or operators
maintain records regarding the
installation of the ALD system and
records of the annual calibration or
audit of the system. EPA is also
proposing to require that records be
maintained each time the ALD system
triggers an alert, whether that be based
on the applicable ppm threshold for a
direct ALD system or the indicated loss
of refrigerant measured in an indirect
ALD system. EPA is proposing that the
owner or operator maintain a record of
the date the ALD systems alerted to a
leak and the location of the leak.
EPA is proposing that these records
related to ALD systems, where required,
be maintained for 3 years. Where ALD
systems are being voluntarily used (i.e.,
appliances with a full charge below
1,500 pounds or using a substitute for
HFCs with a GWP of 53 or below), there
are no recordkeeping requirements
under this proposal. However, if an
appliance using an ALD system is found
to be leaking above the applicable leak
rate and the owner or operator chooses
to use the ALD system in lieu of
periodic inspections, they would be
required to follow all requirements
associated with this compliance option,
including annual audits or calibration
and all necessary recordkeeping
requirements. The proposed
recordkeeping requirements in this
action do not change any recordkeeping
requirements where an owner or
operator chooses to use an ALD system
per 40 CFR 82.157(g)(4) for appliances
containing ODS refrigerants.
EPA requests comment on whether
the Agency should require reporting of
ALD system alerts to the agency.
Specifically, EPA requests comment on
whether owner or operators of
refrigerant-containing appliances that
have a full charge of 1,500 pounds
should be required to file a report with

E:\FR\FM\19OCP2.SGM

19OCP2

72252

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

the agency within 120 days of an ALD
system alert that describes the incident
and follow-up leak rate calculation and/
or repairs. Alternatively, EPA requests
comment on an annual reporting
requirement that would catalogue all
ALD system alerts that occurred in a
one-year period and the follow-up
actions associated with those alerts.
EPA is not proposing either of these
reporting requirements as its lead option
because the Agency believes the
proposed requirements for chronically
leaking appliance reports may be
sufficient to accomplish the policy
objectives of verifying that appropriate
repairs are undertaken when a
refrigerant-containing appliance has a
significant history of leaks.

lotter on DSK11XQN23PROD with PROPOSALS2

D. How is EPA proposing to establish
requirements for the use of recovered
and reclaimed HFCs?
1. Background
As described more fully in section
II.B. in this proposal, subsection (h) of
the AIM Act directs EPA to promulgate
regulations for certain purposes
identified in the statutory text, which
include maximizing the reclamation of
regulated substances. More specifically,
subsection (h)(1) gives EPA authority to
promulgate regulations to control,
where appropriate, any practice,
process, or activity related to the
servicing, repair, disposal, or
installation of equipment that involves
HFCs or their substitutes, or the
reclaiming of HFCs or their substitutes
used as a refrigerant. With respect to
reclamation, EPA interprets subsection
(h) as including authority for EPA to
establish regulations to control such
practices, processes, or activities that
are intended to increase reclamation of
HFCs, as well as substitutes for HFCs
that are used as refrigerants. Such
regulations could include those that are
designed to increase market demand for
reclaimed HFCs with a goal of
increasing the amount of HFCs that are
reclaimed, which would further serve
the purpose of maximizing the
reclamation of regulated substances.
Consistent with this interpretation, EPA
is proposing requirements for the use of
reclaimed HFCs in the installation,
servicing, or repair of certain
equipment. In this rulemaking, EPA is
not considering establishing
requirements for the use of reclaimed
HFC substitutes. Substitutes for HFCs,
for the purposes of this proposal, range
from fluorinated chemistry (e.g., HFOs),
non-fluorinated chemistry (e.g.,
hydrocarbons), and not-in-kind
substitutes. In this proposed
rulemaking, EPA determined it would

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

be prudent to limit the proposed
requirements to HFCs, given the
consumption and production
phasedown will create scarcity for
virgin HFCs and such demand can
partly be addressed by increased use of
reclaimed HFCs where possible.
Reclamation of refrigerants has played
an important role in smoothing the
phase out of ODS refrigerants. The
continued availability of ODS
refrigerants helped ensure that
equipment could continue to be used
even after the phaseout date for
production and consumption of various
class I and class II ODS. Even today,
more than 25 years after the class I
phaseout, reclaimed class I ODS remain
available for servicing appliances.
Reclamation of HFCs already plays a
nascent role in the refrigerant market
and is expected to be of increasing
importance as HFC production and
consumption are phased down. By
bolstering the current supply of HFCs
with recovered and reclaimed
refrigerants from existing systems,
reclamation can support a smooth
transition to substitutes for HFCs,
minimize disruption of the current
capital stock of equipment by allowing
its continued use with existing
refrigerant supplies, avoid supply
shortages of virgin refrigerants, and can
insulate the industry against price
spikes that could affect the servicing of
existing systems using HFCs.
EPA published a Notice of Data
Availability (NODA) on October 17,
2022 (87 FR 62843) to alert stakeholders
of information regarding the U.S. HFC
reclamation market, available through a
draft report, Analysis of the U.S.
Hydrofluorocarbon Reclamation Market:
Stakeholders, Drivers, and Practices.75
EPA solicited stakeholder feedback and
held a public stakeholder meeting
shortly after the NODA was published
on November 9, 2022.76 EPA received
comments 77 from various entities in
response to the published NODA and
from the stakeholder meeting held,
including comments from reclaimers,
industry organizations, environmental
non-government organizations (ENGOs),
75 Draft Report—Analysis of the U.S.
Hydrofluorocarbon Reclamation Market:
Stakeholders, Drivers, and Practices, October 2022.
Available: https://www.epa.gov/system/files/
documents/2022-10/Draft_HFC-ReclamationReport_10-13-22%20sxf%20v3.pdf.
76 Stakeholder meeting for input on an upcoming
regulatory action under subsection (h) of the AIM
Act, November 2022. Available: https://
www.epa.gov/system/files/documents/2022-11/
AIM%20Act%20Stakeholder%20Meeting_HFC%
20Management_11-9-2022.pdf.
77 Comments submitted to response of NODA
published on October 17, 2022 (87 FR 62843) are
available in the docket for this proposed rulemaking
at https://www.regulations.gov.

PO 00000

Frm 00038

Fmt 4701

Sfmt 4702

OEMs, and a private citizen.
Commenters provided input on a variety
of topics. They noted the importance of
tackling certain barriers to increased
reclamation and availability of
reclaimed HFCs on the market. Such
barriers included increasing recovery of
refrigerants, handling mixed refrigerants
returned to reclaimers, and reclaiming
certain patented blends. Commenters
also provided input on consideration for
a clear standard of what constitutes
reclaimed HFCs, as well as improved
tracking of HFCs in the supply chain.
Further, some commenters noted
opportunities for requiring the use of
reclaimed materials in certain uses (e.g.,
first charge of certain equipment). EPA
held an additional public stakeholder
meeting on March 16, 2023 and a
webinar through EPA’s GreenChill
Partnership Program on April 12, 2023
and heard many similar comments.78 79
Interested parties may view the draft
report, the materials for the public
meetings, and the comments the Agency
received in response to the NODA in the
docket for this action. Further, EPA is
providing an updated version of the
draft report, titled Updated Draft
Report—Analysis of the U.S.
Hydrofluorocarbon Reclamation Market:
Stakeholders, Drivers, and Practices, in
the docket of this action that
incorporates feedback heard in the
stakeholder meetings and as provided in
comments to the NODA.
2. Proposed Reclamation Standard
Subsection (b)(9) of the AIM Act
provides a statutory definition for
‘‘reclaim, reclamation.’’ This definition
refers to the reprocessing of a recovered
regulated substance to meet at least the
purity described in standard AHRI 700–
2016 (or an appropriate successor
standard adopted by the Administrator),
and that the purity of the reclaimed
regulated substances must be verified
using, at a minimum, the analytical
method described in that standard. EPA
promulgated a definition for ‘‘reclaim’’
in the Allocation Framework Rule (86
FR 55116, October 5, 2021) that is
consistent with the definition provided
by the AIM Act. As noted in section
IV.A. of this proposal, the Agency
intends to maintain consistency, except
as otherwise explained in this proposal,
78 Stakeholder meeting on HFC reclamation under
the AIM Act, March 2023. Available: https://
www.epa.gov/system/files/documents/2023-04/
HFC%20Management_Reclaimer%20Stake
holder%20Mtg_Final%203-15-23.pdf.
79 Webinar—Subsection (h) Under the American
Innovation and Manufacturing Act, April 2023.
Available: https://www.epa.gov/greenchill/webinarsubsection-h-under-american-innovation-andmanufacturing-act.

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
and use terms in this proposal, and in
the new subpart C, which is proposed
to be established in this rulemaking, as
they are defined in subpart A.
Subsection (h)(2)(B) of the AIM Act
provides that any regulated substance
used as a refrigerant that is recovered
shall be reclaimed before being sold or
transferred to a new owner, except
where the recovered regulated substance
is sold or transferred to a new owner
solely for the purposes of being
reclaimed or destroyed. EPA is
proposing regulations to implement the
statutory requirement in subsection
(h)(2)(B) for stationary refrigerantcontaining equipment. This would be
particularly relevant to the refrigerantcontaining appliances for which EPA is
proposing requirements to use
reclaimed HFCs in sections IV.D.3. and
IV.D.4. of this proposal. More
specifically, EPA is proposing to
prohibit the sale, distribution, or
transfer to a new owner, or the offer for
sale, distribution, or transfer to a new
owner, any regulated substance used as
a refrigerant in stationary refrigerantcontaining equipment consisting in
whole or in part of recovered regulated
substances. This prohibition would not
apply where the recovered regulated
substances are reclaimed by an EPAcertified reclaimer (as described in 40
CFR 82.164) and has been reclaimed to
the required purity standard, or if the
recovered regulated substance is being
sold, distributed, or transferred to a new
owner, or offered for sale, distribution,
or transfer to a new owner solely for the
purposes of being reclaimed or
destroyed. These proposed provisions
are intended to support the
implementation of this statutory
provision for stationary refrigerantcontaining equipment in the context of
other requirements proposed in this
rulemaking, including by outlining
more specific requirements for the
reclamation that would need to occur
before sale or any of the other listed
activities for such regulated substances,
as well as incorporating the statutory
exception for situations where such
recovered regulated substances are sold
or transferred solely for the purposes of
being reclaimed or destroyed. EPA
further discusses its anticipated
approach for recovered regulated
substances used as refrigerants in
MVAC equipment in section IV.H. of
this preamble.
To support consistent implementation
of the proposed requirements for the use
of reclaimed HFCs in the installation,
servicing, or repair of certain
equipment, EPA is proposing a standard
for the amount of virgin HFC refrigerant
that can be included in any HFC or HFC

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

blend reclaimed refrigerant. These
requirements are being proposed as part
of implementing subsection (h)(1) of the
AIM Act, as these provisions would
control practices, processes, or activities
regarding the installation, servicing or
repair of equipment and would involve
a regulated substance or the reclaiming
of a regulated substance used as a
refrigerant.
Typically, CAA section 608 certified
reclaimers meet the required purity
standards for reclaimed refrigerants by
using separation technology (e.g.,
fractional distillation), combining high
purity 80 refrigerant with recovered
refrigerant until the purity standard is
met, or using a combination of these
approaches. In some cases,
sophisticated fractional distillation
technology is required to purify
recovered refrigerants. Combining high
purity (e.g., virgin) refrigerants with
recovered refrigerants is an approach
that some CAA section 608 certified
reclaimers may use to meet the required
purity standard. In that approach, virgin
or otherwise high purity (e.g., other
reclaimed refrigerants) refrigerant is
added to the recovered refrigerant,
which may or may not have gone
through some degree of reprocessing,
until the final product meets the purity
specifications to be considered
reclaimed. A combination of separation
technology and using virgin HFCs may
be used, in which the separation
technology reprocesses the refrigerant
nearly to the required purity standard
and high purity refrigerant is used to
rebalance the refrigerant and/or fully
achieve the standard.
As the HFC phasedown progresses,
the overall quantity of virgin HFCs
available, including to facilitate
reclamation through blending or
rebalancing, will decrease. In addition,
the Agency considers that limiting the
extent to which the purity standard for
reclamation is achieved through
combining with virgin refrigerant
(besides what the Agency understands
to be the necessary rebalancing,
particularly of certain blends) will
support the purposes of its proposed
regulations for use of reclaimed
refrigerant, including maximizing
reclamation, as well as bolstering the
available supply of HFCs in the market.
Therefore, EPA is proposing to establish
a limit on the amount, by weight of
virgin HFC refrigerants, that can be
contained in reclaimed HFC refrigerant.
80 In

some cases, virgin refrigerant may be
combined with less pure recovered refrigerant to
achieve the required applicable purity standard;
however, other higher purity refrigerants, such as
previously reclaimed refrigerants could also be used
to achieve the same result.

PO 00000

Frm 00039

Fmt 4701

Sfmt 4702

72253

The proposed amount is no more than
15 percent virgin HFC refrigerants, by
weight. As EPA understands, reclaimed
HFCs may be reprocessed in a batch,
from which containers, such as
cylinders, may be filled and sold or
distributed. In this case, EPA is not
proposing to require that each
individual container or cylinder be
rationed out to meet the allowable limit
of virgin HFCs. Rather, EPA would
expect that at the batch level, the
reclaimed HFCs do not exceed 15
percent, by weight, virgin HFCs. In
order to support compliance with and
enforcement of these proposed
requirements, EPA is proposing labeling
and recordkeeping requirements as well
as proposing to prohibit the sale,
identification, or reporting of refrigerant
as being reclaimed if the HFC
component of the resulting refrigerant
contains more than 15 percent, by
weight, of virgin HFC. Similarly, to
ensure that this standard is supporting
the reclamation of substances that have
had bona fide use in equipment, EPA
would not consider a refrigerant to be
reclaimed if it contains a recovered
regulated substance that has not had
bona fide use in equipment, unless that
recovered refrigerant was from the heel
or residue of a container that had a bona
fide use in the servicing, repair, or
installation of refrigerant-containing
equipment.
As the Agency developed this aspect
of the proposal under the AIM Act
subsection (h), EPA considered a
number of sources of information about
the approach to the use of virgin
refrigerant in reclaimed refrigerant,
including but not limited to the NODA
(87 FR 62843, October 17, 2022) on the
state of reclamation and comments
received, relevant state regulations,
comments made during stakeholder
meetings, and a 2022 report by a group
of ENGOs (Environmental Investigations
Agency, the Natural Resources Defense
Council, and the Institute for
Governance & Sustainable
Development).81 Limiting the amount of
virgin refrigerant was not included in
the CAA section 608 regulations.
However, consistent with sources of
information noted above and in
recognizing the context of the overall
structure of the AIM Act phasedown,
EPA assessed the current landscape of
requirements for defining the
composition of reclaimed HFCs as it
81 Environmental Investigations Agency, the
Natural Resources Defense Council, and the
Institute for Governance & Sustainable
Development, The 90 Million Ton Opportunity:
Lifecycle Refrigerant Management (LMR), available
at: https://www.nrdc.org/sites/default/files/lrm-90billion-ton-opportunity-report-20221020.pdf.

E:\FR\FM\19OCP2.SGM

19OCP2

72254

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

relates to the amounts of virgin and
recovered HFCs contained. EPA notes
that the State of California currently has
such a definition in its regulations. The
CARB finalized a regulation, effective
January 1, 2022, that defines ‘‘certified
reclaimed refrigerant’’ as containing no
more than 15 percent virgin refrigerant
by weight and the certified reclaimer
must provide supporting documentation
showing as such.82 CARB arrived at a
maximum allowable amount of virgin
HFCs of 15 percent by weight in
‘‘certified reclaimed refrigerant’’ based
on feedback from multiple stakeholders
(including reclaimers, OEMs, and
industry trade groups) who commented
that having an allowable amount of
virgin HFCs in reclaimed HFCs would
be necessary for rebalancing out-of-ratio
recovered HFCs and HFC blends.83
During a November 2022 stakeholder
meeting EPA hosted and in comments
submitted in response to the October
2022 NODA, several participants
referred to CARB’s 15 percent
requirement as a workable limit for
reclaimed refrigerant. The ENGO report
suggests that a 15 percent requirement
should be the maximin amount of virgin
refrigerant the Agency should consider;
however, EPA is not aware of a specific
alternative proposed limit that the
groups that developed this report are
suggesting.
Based on the information described
above from CARB and others, EPA is
proposing to conclude that placing a
limit on virgin HFCs in reclaimed HFC
refrigerant is necessary to avoid
situations where unlimited virgin HFCs
could be sold as reclaimed HFC
refrigerant if even a small amount of
reclaimed HFCs are present. EPA notes
that the limit of 15 percent virgin HFC
refrigerant, by weight, in reclaimed
HFCs as proposed in this action is
consistent with the requirements in the
State of California for what is defined as
‘‘certified reclaimed refrigerant.’’
Accordingly, EPA anticipates that
regulated entities could draw on the
experience of those regulated entities
complying with California’s limit in
implementing this requirement. As part
of developing this proposal, EPA
considered the process which CARB
underwent with industry and trade
associations, both of which have a
82 California Code of Regulations, Prohibitions on
Use of Certain Hydrofluorocarbons in Stationary
Refrigeration, Stationary Air-conditioning, and
Other End-Uses. Available: https://ww2.arb.ca.gov/
sites/default/files/barcu/regact/2020/hfc2020/
frorevised.pdf.
83 Final Statement of Reasons for Rulemaking,
Including Summary of Comment sand Agency
Response, State of California Air Resources Board,
available at: https://ww2.arb.ca.gov/sites/default/
files/barcu/regact/2020/hfc2020/fsorrevised.pdf.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

national presence, to land on this limit.
Further, EPA acknowledges CARB’s
consideration of avoiding a scenario in
which reclaimed HFCs could be sold as
such, but actually contain mostly virgin
HFC refrigerant with minimal amounts
of recovered HFCs. Such a scenario
would be inconsistent with the purpose
identified in the subsection (h) of the
AIM Act to maximize the reclamation of
regulated substances and could cause
strain on the supply of virgin HFC
refrigerants available as EPA
implements the provisions in the AIM
Act related to phasing down the
production and consumption of HFCs.
As part of the initial regulations to
implement subsection (h), for specified
subsectors and applications, EPA is
proposing to establish requirements that
specific practices, processes, or
activities regarding the servicing, repair,
or installation of equipment be
conducted using reclaimed HFCs,
meeting the proposed criteria described
in this section. In particular, EPA is
proposing to require that HFCs that are
considered to be reclaimed must contain
no more than 15 percent, by weight, of
virgin HFCs. EPA recognizes that some
amount of virgin HFC refrigerant may be
needed to meet the required purity
standard and correct blend composition
for HFC blends and/or HFC and HFC
substitute blends.
In the case of reclaimed refrigerant
blends that contain other components
that are substitutes for HFCs (e.g., HFOs,
hydrocarbons), EPA is proposing that
only the HFC portion of the reclaimed
blend is required to meet the virgin
substance limit (i.e., 15 percent, by
weight). EPA notes that subsection
(h)(1) of the AIM Act provides authority
to promulgate regulations to control,
where appropriate, practices, processes,
or activities related to the servicing,
repair, disposal, or installation of
equipment that involves reclaiming of a
substitute for a regulated substance used
as a refrigerant. EPA interprets this
provision to provide it authority which
could include requiring, where
appropriate, the use of reclaimed HFC
substitute refrigerants in practices,
processes, or activities related to the
servicing, repair, disposal, or
installation of equipment. However, at
this time, we are not proposing a
requirement on establishing a standard
limiting the amount of virgin material
for what is considered a reclaimed
substitute for HFCs.
EPA is proposing labeling and
recordkeeping requirements to support
the proposed provision implementing a
standard for reclaimed HFC refrigerants
to contain no more than 15 percent, by
weight, virgin HFCs. These

PO 00000

Frm 00040

Fmt 4701

Sfmt 4702

requirements would help ensure that
reclaimed HFCs would not exceed the
limit for virgin HFCs and also help
ensure that reclaimed HFCs are used for
servicing, repair, and/or installation of
equipment as proposed in sections
IV.D.3. and IV.D.4. of this proposal. EPA
is proposing that certified reclaimers
would be required to affix a label to
containers that are being sold or
distributed or offered for sale or
distribution that would certify that the
reclaimed HFC refrigerant meets the
proposed requirements to contain no
more than 15 percent virgin HFCs. The
label would further serve to inform
owners or operators of refrigerantcontaining equipment that the
reclaimed HFCs meet the proposed
requirements to be used for servicing,
repair, and/or installation of equipment
in the covered subsectors of this
proposal (see sections IV.D.3. and
IV.D.4.). EPA is proposing that certified
reclaimers must affix this label to
reclaimed HFCs being sold or
distributed or offered for sale or
distribution beginning January 1, 2026.
The label would be required to follow
the specifications as described in the
proposed regulatory text at § 84.112.
EPA is also proposing a recordkeeping
requirement related to the proposed
provision to limit reclaimed HFCs to not
exceed 15 percent virgin HFCs, by
weight. The recordkeeping requirement
would help provide certainty that the
reclaimed HFCs that are in a container
do not exceed the limit for virgin HFCs.
EPA is proposing to require that
certified reclaimers create and maintain
a record related to the reclaimed HFCs
that would be filled in containers. As
described above, reclaimed HFCs may
be reprocessed in a batch, from which
containers, such as cylinders, may be
filled and sold or distributed. As noted,
EPA is not proposing to require that
each individual container or cylinder be
rationed out to meet the allowable limit
of virgin HFCs. Rather, EPA would
expect that at the batch level, the
reclaimed HFCs do not exceed 15
percent, by weight, virgin HFCs. EPA is
proposing that a certified reclaimer
would be required to provide a record
of certification that the reclaimed HFCs
being sold in a container were sourced
from a batch that met the proposed
standard. Further, the record generated
would be required to contain the
following information: the name,
address, contact person, email address,
and phone number of the certified
reclaimer, the date the container was
filled with reclaimed HFC(s), the
amount and name of the HFC(s) in the
container, certification that the contents

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
of the container are from a batch where
the amount of virgin HFCs does not
exceed 15 percent, by weight, of the
total HFCs, the unique serial number of
the container(s) filled from the batch,
identification of the batch of reclaimed
HFCs used to fill the container(s) and
the percent, by weight, of virgin HFC(s)
in the batch used to fill the container(s).
EPA is proposing to require that such
record would be required to be
generated beginning January 1, 2026 and
be maintained for three years.
EPA is seeking comment on
considering whether the requirements
for generating a machine-readable
tracking identifier per section IV.F.3. of
this proposal would satisfy these
proposed labeling and recordkeeping
requirements to implement the limit of
15 percent virgin HFCs, by weight, in
reclaimed HFCs. For example, EPA is
seeking comment on whether the data
elements required for generating the
machine-readable tracking identifier
would be sufficient for certifying that
the limit for virgin HFCs is not
exceeded. EPA is also seeking comment
on whether or how the information
proposed to be required in the
generation of a machine-readable
tracking identifier would serve the
purpose of ensuring that a certified
reclaimer has certified that no more
than 15 percent virgin HFCs, by weight
were used to formulate the reclaimed
HFCs, and whether or how this
information would also help to inform
owners and operators in the proposed
RACHP subsectors who would be
required to use reclaimed HFCs for the
servicing, repair, and/or installation of
equipment, that they are using
reclaimed HFCs meeting the proposed
standards. Further, EPA seeks comment
on whether an additional label would be
required or any current labels affixed to
a container of reclaimed HFCs could be
adjusted to accommodate these
proposed requirements.
EPA is requesting comments on all
aspects of this proposal, and in
particular, aspects of setting a standard
for the amount of virgin HFC refrigerant
in reclaimed HFCs. EPA is seeking
comment on whether to establish a
lower percentage of allowable virgin
HFC refrigerants, for example, EPA
could allow no more than 10 percent
virgin HFCs, by weight, in reclaimed
HFCs that are used to meet these
proposed requirements. EPA is also
seeking comment on our proposal to not
require a limit on the amount of virgin
refrigerant used in reclaimed substitutes
for HFCs. The Agency is seeking
comment on the proposed
recordkeeping and labeling
requirements to ensure that the

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

reclaimed HFCs do not exceed 15
percent, by weight, virgin HFCs, and
which party or parties should be
responsible for maintaining the record.
Specifically, EPA is seeking comment
on adding a label to reclaimed HFC
refrigerants that would identify them as
such, since it is EPA’s understanding
that not all reclaimed HFC refrigerants
are explicitly marketed as such.
3. Proposed Requirements for Initial
Charge of Equipment for Subsectors in
the RACHP Sector
EPA is proposing that for certain
subsectors and applications in the
RACHP sector where HFCs or a blend
containing HFCs are used, the initial
charge of refrigerant-containing
equipment must be with reclaimed
HFCs starting January 1, 2028.
Specifically, in the case of certain
factory-charged refrigerant-containing
equipment that use HFCs as the
refrigerant, EPA is proposing that such
equipment in the covered subsectors
and applications sold or distributed, or
offered for sale or distribution, for
installation, or installed, in the United
States would be required to have
reclaimed HFCs be used for the initial
charge. For certain refrigerantcontaining equipment using HFCs that
are initially charged in the field (e.g.,
on-site),84 EPA is proposing to require
that reclaimed HFCs be used for the
initial charge during installation of the
equipment. These requirements are
being proposed as part of implementing
subsection (h)(1) of the AIM Act, as
these provisions would control
practices, processes, or activities
regarding the installation of equipment,
and would involve a regulated
substance or the reclaiming of a
regulated substances used as a
refrigerant.
In the case of field-charged equipment
that are designed to be configured to
particular application (e.g., custom-built
or not ‘‘off-the-shelf’’ equipment), EPA
is proposing that for certain refrigerantcontaining equipment (e.g., retail food
refrigeration supermarket system) a new
installation would be considered to
have occurred if the overall cooling
capacity is increased or the entire
refrigeration loop is replaced
(compressor, condenser, evaporator,
etc.). For example, EPA understands
that in some situations components may
84 Field-charging of equipment occurs when of a
piece of equipment shipped to the location in
which it will be installed. Equipment may also be
field-charged when the overall system is not a
single piece of equipment, but rather is a collection
of components installed to meet a particular
configuration (e.g., installation of a supermarket
system).

PO 00000

Frm 00041

Fmt 4701

Sfmt 4702

72255

be added to current systems, such as if
the cooling demand of a particular
system increases (e.g., expansion of a
supermarket). In other cases,
components may be added to a system
without changing the overall cooling
capacity or replacing the refrigeration
loop. In these cases, EPA is not
proposing to consider this a new
installation and the use of reclaimed
HFCs would not be required unless the
equipment had already been required to
use reclaimed HFCs for its original
installation. Under the proposed
requirements, where equipment was
already required to have been charged
with reclaimed HFCs when installed,
reclaimed HFCs must continue to be
used even if a component is added to a
system but the cooling capacity is
unchanged or the refrigerant loop is not
replaced. Proposed requirements for
servicing or repair of certain equipment
with reclaimed HFCs would apply in
the event that refrigerant needs to be
removed or other servicing or repair is
required. Section IV.D.4 of this proposal
describes what EPA is proposing for the
use of reclaimed HFCs for the servicing
and/or repair of certain refrigerantcontaining equipment.
As explained in this section, EPA is
proposing requirements for using
reclaimed HFCs as the initial charge in
certain refrigerant-containing equipment
that will be sold or distributed or
offered for sale or distribution for
installation or installed in the United
States in certain RACHP subsectors and
applications. EPA is proposing to delay
the compliance date for the
requirements for using reclaimed HFCs
as the initial charge in certain
equipment until January 1, 2028.
On January 1, 2029, under the HFC
phasedown schedule prescribed by
Congress in subsection (e)(2)(C) of the
AIM Act, the HFC production and
consumption caps decrease by 70% as
compared to historic baseline levels.
While EPA anticipates that many
equipment manufacturers will transition
to substitutes for HFCs, reclaimed HFCs
are anticipated to fill a vital role in
supplying industry with usable HFCs
for new and existing equipment. The
experience with the phaseout of class I
and class II ODS suggests that
reclamation will be an important option
for smoothing the phasedown. However,
given the AIM Act calls for a
phasedown of HFCs and not a phaseout,
there also likely could be a continuing
dependency on HFCs, at least for certain
sectors and subsectors, indefinitely.
Therefore, experience with similar
chemicals and considering how markets
may respond to a phasedown, were
among the factors EPA considered when

E:\FR\FM\19OCP2.SGM

19OCP2

72256

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

developing the proposed requirements
for requiring use of reclaimed HFCs.
EPA is aware that industry and, in
particular, reclaimers may need time to
adjust business practices and build
capacity to reclaim HFCs to support this
upcoming demand for reclaimed HFCs
as well as make other changes. EPA
publishes annual data on the trends of
reclaimed refrigerants.85 These data for
reclaimed HFCs begin in 2017, when the
CAA section 608 requirements for
reporting reclamation of HFCs began.
Reclamation of HFC refrigerants have
been generally steady since 2017
through 2021; however, HFC
reclamation had a sizeable increase of
approximately 38 percent in 2022
compared to 2021. EPA recognizes that
these data mostly represent years ahead
of when HFC production and
consumption was capped, but the
observed increase in reported HFC
reclamation in 2022 shows an important
step to making reclaimed HFCs more
available on the market. Continued
increases in the current levels of HFC
reclamation will be necessary to meet
the anticipated demand of HFCs in the
subsectors for which EPA is proposing
requirements for the use of reclaimed
HFCs. EPA also recognizes the
significant steps in the HFC phasedown
that will occur in 2024 and 2029, and
equipment using HFCs will generally
rely on reclaimed HFCs, further adding
to the demand of reclaimed HFCs.
Proposing requirements for the use of
reclaimed HFCs beginning in 2028 will
give reclaimers and industry time to
adjust business practices (e.g., changing
suppliers) and build capacity, while
allowing industry to have sufficient
reclaimed HFCs ahead of the significant
phasedown step which will reduce the
amount of virgin HFCs that are available
to meet demand for HFCs. Reclaimers
who may need to build additional
capacity would need this additional
time to develop the necessary
infrastructure to reclaim sufficient
HFCs.
The report by a group of ENGOs 86
states that a requirement for new
equipment to use reclaimed HFCs
would further help mitigate the climate
impact of sectors that are transitioning
away from very-high-GWP substances to
mid-GWP substances as part of the HFC
85 U.S. EPA, Summary of Refrigerant Reclamation
Trends, available: https://www.epa.gov/section608/
summary-refrigerant-reclamation-trends.
86 Environmental Investigations Agency, the
Natural Resources Defense Council, and the
Institute for Governance & Sustainable
Development, The 90 Million Ton Opportunity:
Lifecycle Refrigerant Management (LMR), available
at: https://www.nrdc.org/sites/default/files/lrm-90billion-ton-opportunity-report-20221020.pdf.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

phasedown. The report states that a
requirement to use reclaimed refrigerant
instead of virgin refrigerants in specific
subsectors ‘‘would go a long way
towards building a market for reclaimed
refrigerant and avoiding unnecessary
emissions of virgin HFCs.’’ Specifically,
it advocates for requirements to use of
reclaimed refrigerant for initial charge
and provides examples of subsectors to
be covered for initial factory-charged
equipment. Such examples include air
conditioning and heat pumps where
refrigerants such as HFC–32 and R–
454B are among the likely candidates
replace R–410A. The authors of the
report note that it has been uncommon
to use reclaimed refrigerant in new
factory-charged equipment. However,
they state that the use of reclaimed
refrigerant in new air conditioners and
heat pumps has been successfully
executed on a voluntary basis in
Europe.87
EPA is proposing that all refrigerantcontaining equipment (i.e., 100 percent)
in the identified subsectors in this
section use reclaimed HFCs for their
initial charge. EPA is also considering
requiring a certain percentage of some
or all refrigerant-containing equipment
in the subsectors identified in this
aspect of the proposal be met with
reclaimed HFCs for their initial charge.
There may be certain advantages to such
an approach including if availability of
specific HFCs or HFC blends are not
available in sufficient quantity to meet
demand. However, complying with a
percentage-based requirement could be
challenging. Such an approach could
also require additional recordkeeping or
reporting requirements. If EPA were to
use a percentage-based approach, in
other words requiring for example 25,
50, or 75 percent of the affected
equipment be charged with reclaimed
refrigerant, EPA anticipates that for
factory-charged equipment, the
recordkeeping and reporting
requirements would be for the
manufacturers while for field-charged
equipment the requirements would be
for the owners and operators. By
proposing to require that all refrigerantcontaining equipment in the affected
subsectors have reclaimed HFCs used in
their initial charge, additional
recordkeeping requirements would be
avoided since OEMs and owners or
operators could just purchase reclaimed
HFCs rather than keep track of the
amount of reclaimed and virgin HFCs
they purchase for the initial charge of
87 Daikin Reclaimed Refrigerant Initiative in
partnership with A-Gas, available at: https://
www.chillaire.co.uk/reclaimed-refrigerantinitiative/.

PO 00000

Frm 00042

Fmt 4701

Sfmt 4702

their equipment throughout the year, as
would be necessary if only a portion of
the affected equipment were required to
be charged with reclaimed refrigerant.
EPA also understands that a variant on
type of percentage-based approach is
used in California in a limited manner.
EPA understands that California
requires those that manufacture certain
equipment (e.g., certain air-conditioning
appliances) must purchase a certain
amount of reclaimed refrigerant.
However, California does not specify
where or how the reclaimed refrigerants
are used.
Subsectors in the RACHP Sector
EPA is proposing to require use of
reclaimed HFCs in initial charges for
new refrigerant-containing equipment
the following subsectors that will be
installed in the United States:
• Residential and light commercial
AC and heat pumps;
• Cold storage warehouses;
• Industrial process refrigeration;
• Stand-alone retail food
refrigeration;
• Supermarket systems;
• Refrigerated transport; and
• Automatic commercial ice
makers.88
The types of equipment that are in
these subsectors may vary by when the
initial charge of the refrigerant is added
to the equipment. Some types of
equipment in a given subsector may be
charged with the refrigerant before the
equipment is sold or distributed (i.e.,
factory-charged), while others within
the same subsector or in a different
subsector may have the refrigerant
charged in the field (i.e., field-charged).
For example, self-contained equipment
(e.g., window air conditioning units) in
the residential and light commercial air
conditioning and heat pumps subsector
are charged with refrigerant at the
factory and sold with the refrigerant in
the equipment before it is installed for
its intended use. Larger pieces of
equipment in the IPR or supermarket
systems subsectors, for example, have
the refrigerant charged in field. These
larger pieces of equipment may be
custom-built to meet the specific needs
of the application in which they are
used, and the refrigerant is charged
during the installation of the equipment.
Additional detail on the types of
88 EPA has proposed to restrict the use of certain
higher-GWP HFCs in these seven subsectors
through a rulemaking under subsection (i) of the
AIM Act. (87 FR 76738, December 15, 2022).
Although EPA has not yet made final decisions
regarding these subsectors, such restrictions on
higher-GWP HFCs could affect the use of such HFCs
for initial charge in these subsectors by 2028, even
if these HFCs were reclaimed prior to the initial
charge.

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
equipment and the applications in
which they are used in the listed
subsectors is provided in the proposed
Technology Transitions Rule (87 FR
76738, December 15, 2022). Although
EPA has not yet issued a final
Technology Transitions rule, we also
anticipate considering, where
appropriate, any further information
provided on these types of equipment,
applications, and subsectors in any final
Technology Transitions rule as we are
developing this rulemaking under
subsection (h) of the AIM Act, in an
effort to promote consistency where
appropriate.
EPA understands that, in practice,
reclaimed HFCs meet the same purity
standards as their virgin counterparts
and function the same when used in
equipment in the RACHP sector and
other sectors. Comments in response to
EPA’s NODA (87 FR 62843, October 17,
2022) and in stakeholder meetings
hosted by the Agency noted that there
are not significant barriers to using
reclaimed HFCs in the initial charge of
equipment. Thus, EPA’s proposal to
require the use of reclaimed HFCs
regarding the installation of new
equipment in the listed subsectors
would not have any significant
technical limitations. EPA is aware that
the near-term capacity of reclaimed
HFCs may not be sufficient to meet the
total demand of HFCs in all new
equipment across the whole RACHP
sector and thus is proposing a subset of
subsectors to be required to use
reclaimed HFCs in the initial charge for
the installation of new equipment. As
described later in this section, the
Agency also is seeking comment on
requiring a percent of equipment in the
subsector use reclaimed refrigerants
rather than all equipment in that
subsector given EPA understands that
there could be other factors, such as
introduction of new and/or patented
refrigerants, that could affect the
decision on the use of reclaimed
refrigerants. For example, EPA could
require manufacturers use reclaimed
HFCs in 25, 50, or 75 percent of their
total product lines for the covered
product categories. The Agency
describes later in this section in more
detail and in the Updated Draft
Report—Analysis of the U.S.
Hydrofluorocarbon Reclamation Market:
Stakeholders, Drivers, and Practices,89
the anticipated demand of HFCs for new
refrigerant-containing equipment in
89 EPA, 2023. Updated Draft Report—Analysis of
the U.S. Hydrofluorocarbon Reclamation Market:
Stakeholders, Drivers, and Practices. Available in
the docket (EPA–HQ–OAR–2022–0606) for this
proposed rulemaking at https://
www.regulations.gov.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

these subsectors that would need to be
met with reclaimed HFCs, and notes
that the proposed compliance date for
these proposed requirements would not
be until 2028. The proposed compliance
date provides industry a transition
period to facilitate necessary changes in
the current business practices and to
allow for the HFC reclamation market to
grow. Further, based on the restrictions
in the proposed Technology Transition
rule (87 FR 76738, December 15, 2022),
industry should have a good sense of
what HFCs and blends containing HFCs
would be being used in new equipment.
EPA is proposing requirements for the
initial charge with reclaimed HFCs in
equipment in these seven subsectors
within the RACHP sector based on the
Agency’s assessment of available
reclaimed HFCs available to meet
anticipated demand and that these are
uses for which reclaimed refrigerants
are appropriate to use. For example,
EPA understands for certain subsectors,
particularly those outside the RACHP
sector, such as for certain medical
devices (e.g., metered-dose inhalers),
reclaimed HFCs would not be meet the
specific quality and purification
requirements. In its outreach, EPA asked
about any significant challenges or
barriers to using reclaimed HFCs as the
initial charge of refrigerant in
equipment. The Agency received
comments in support of requiring
reclaimed HFCs as the initial charge for
equipment in response to the October
2022 NODA and did not learn of any
technical barriers.90
Reclaimed HFCs are purified and
tested to verify they meet the levels as
specified in appendix A to 40 CFR part
82, subpart F (which is based on AHRI
700–2016), as consistent with the
definition of reclaim in 40 CFR part 84,
subpart A. The Allocation Framework
Rule (86 FR 55116, October 5, 2021) also
requires that virgin HFC refrigerants
meet this same standard. Therefore,
their purity is indistinguishable. By
requiring the use of reclaimed HFCs in
these seven subsectors, EPA is
providing opportunities to smooth
transition to using reclaimed HFCs in
new equipment that would be installed.
EPA estimated the demand for initial
charge of HFCs for equipment in the
applicable subsectors in 2028 that
would be required to be fulfilled with
reclaimed HFCs per this proposal. EPA
estimates that the total amount of
reclaimed HFCs that would be required
to meet demand for the initial charge of
90 Comments submitted to response of NODA
published on October 17, 2022 (87 FR 62843) are
available in the docket (EPA–HQ–OAR–2022–0606)
for this proposed rulemaking at https://
www.regulations.gov.

PO 00000

Frm 00043

Fmt 4701

Sfmt 4702

72257

refrigerant-containing equipment in the
covered subsectors would be
approximately 23,300 metric tons,
which is equivalent to 31.0 MMTCO2e
in 2028. The subsector with the greatest
amount of reclaimed HFCs needed to
meet demand for the initial charge of
equipment is the residential and light
commercial subsector, at approximately
18,600 metric tons (18.6 MMTCO2e) of
reclaimed HFCs that would be required
in 2028. Additional information on the
demand of HFCs for the initial charge of
refrigerant-containing equipment in the
covered subsectors can be found in the
Updated Draft Report—Analysis of the
U.S. Hydrofluorocarbon Reclamation
Market: Stakeholders, Drivers, and
Practices in the docket for this
rulemaking.
EPA is requesting comment on all
aspects of this rule. With regard to the
proposed requirements for using
reclaimed HFCs in the initial charge of
certain refrigerant-containing
equipment, EPA is requesting comment
on whether the requirement to use
reclaimed HFCs in the initial charge of
certain equipment should exclude
certain HFCs or HFC blends because
there are barriers to establishing the
requisite availability of reclaimed
refrigerants by the proposed January 1,
2028, compliance date. Such barriers
could potentially include niche HFCs or
HFC blends that are not manufactured
or reclaimed at significant volumes but
are key to certain subsectors, HFCs or
HFC blends that were recently
commercialized such that the amount of
used material is not yet sufficient to
provide the input to a supply of reclaim
material, or certain refrigerants that may
be subject to specific types of patents.
EPA is also interested in comments
regarding the proposed list of covered
subsectors that would be required to use
reclaimed HFCs in the initial charge of
new equipment, and if EPA should
consider any additional subsectors or
fewer subsectors. As discussed in
section IV.D.3., EPA noted that the
Agency considered a percentage-based
approach for the reclaim requirements
for initial charge. EPA is requesting
comment on this percentage-based
approach where requirements for using
reclaimed HFCs for initial charge of
equipment in the covered subsectors
could be phased in over time compared
to the proposed requirement to solely
use reclaimed HFCs in the initial charge
of certain equipment. In other words,
EPA could require, for example, 25, 50
or 75 percent of a subsector use reclaim
for initial charge indefinitely, or as an
alternative example, that 25 percent do
so in 2026, 50 percent in 2027, 75

E:\FR\FM\19OCP2.SGM

19OCP2

72258

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

percent in 2028, and 100 percent in
2029. EPA also requests comment on the
proposed compliance date of January 1,
2028 in general, for use of reclaimed
HFCs in the initial charge of new
equipment in applicable RACHP
subsectors. EPA is interested in whether
reclaimers anticipate being able to meet
the demand in 2028.
4. Proposed Requirements for Servicing
and/or Repair of Existing Equipment in
Subsectors in the RACHP Sector
EPA is proposing that the servicing
and/or repair of refrigerant-containing
appliances in certain subsectors and
applications in the RACHP sector where
HFCs (whether neat or in a blend) are
being used be done with reclaimed
HFCs starting January 1, 2028. As noted
in section IV.D.3, these requirements are
being proposed as part of implementing
subsection (h)(1) of the AIM Act. The
proposed requirements discussed in this
section of the preamble would control
practices, processes, and activities
regarding the servicing and/or repair of
equipment and involve HFCs and the
reclaiming of HFCs used as a refrigerant
by requiring that such servicing and/or
repair be done with reclaimed HFCs.
Existing equipment that is currently
using HFCs or a blend containing HFCs
is anticipated to continue to need these
substances as the phasedown of the
production and consumption of HFCs
under other provisions of the AIM Act
progresses, such as for servicing needs.
As virgin HFC refrigerants become
increasingly scarce, we expect industry
will rely on using reclaimed HFCs to
meet their needs for servicing existing
equipment. EPA is proposing
requirements that reclaimed HFCs be
used to service and/or repair equipment
within certain RACHP subsectors and
applications.
As noted in the prior section on
reclaim requirements for initial charge
of equipment in certain RACHP
subsectors, EPA is considering many
types of information in developing the
proposed requirements for reclaimed
HFC refrigerants in the servicing and/or
repair of equipment in certain RACHP
subsectors. For example, EPA is
drawing on the past data and history of
the reclamation of ODS, as explained in
section IV.D.3. EPA is also considering
the experience in California and the EU.
EPA also reflected on information
submitted in response to the October
2022 NODA and the recent report by a
group of ENGOs referred to previously.
EPA is aware that as more reclaimed
HFCs are used, either as required per
the proposed provision or otherwise
used as virgin HFCs become scarcer,
market prices for reclaimed HFCs may

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

shift. Lastly, EPA considered the
anticipated effect of the overall
phasedown of the production and
consumption of HFCs and the vital role
that reclaimed HFCs will likely play to
meet the continuing need for using
HFCs as refrigerants in the United
States. EPA is requesting comment on
these considerations and any other
considerations or information that
would be relevant to the proposed
provisions for using reclaimed HFCs in
the servicing/repair of refrigerantcontaining equipment.
EPA is aware that industry, and, in
particular, reclaimers will need time to
adjust and build capacity to reclaim
HFCs to support this upcoming demand
for reclaimed HFCs. EPA is proposing a
compliance date of January 1, 2028, for
the required use of reclaimed HFCs in
the servicing and/or repair of equipment
in certain RACHP subsectors. As
explained in section IV.D.3. of this
proposal, requiring compliance with
these requirements as of January 1,
2028, would allow industry to transition
to meet the increased demand for
reclaimed HFCs and make changes to
their current practices prior to the
significant reduction in the production
and consumption of HFCs in 2029.
Subsectors in the RACHP Sector
EPA is proposing to require, for the
servicing and/or repair of refrigerantcontaining equipment in the following
subsectors, that reclaimed HFCs be
used:
• Stand-alone retail food
refrigeration;
• Supermarket systems;
• Refrigerated transport; and
• Automatic commercial ice makers.
As noted in section IV.D.3., EPA
understands that reclaimed HFCs
function the same as virgin HFCs in
refrigerant-containing equipment and
are required to meet the same purity
levels as their virgin counterparts, as
specified in appendix A to 40 CFR part
82, subpart F (which is based on AHRI
700–2016) and consistent with the
definition of reclaim in 40 CFR part 82,
subpart A. In particular in the RACHP
sector, it may already be a practice for
refrigerant-containing equipment to be
serviced or repaired with reclaimed
HFCs. Owners or operators or the
technicians they contract may be using
reclaimed HFCs during these practices,
processes, or activities related to
servicing and/or repair without
specifically seeking to use reclaimed
HFC refrigerants. In general, reclaimers
do not specifically label their reclaimed
HFC products when they sell or
distribute them directly to technicians
or a wholesaler or distributor; however,

PO 00000

Frm 00044

Fmt 4701

Sfmt 4702

EPA is aware of at least one reclaimer
that already markets a specific product
line of reclaimed refrigerants.91 In most
cases, EPA understands that owners or
operators or technicians may be
purchasing refrigerant for servicing and/
or repair that is most cost-effective,
which may involve purchasing
reclaimed refrigerants.
EPA is aware that the current capacity
of reclaimed HFCs may not be sufficient
to meet the total demand of HFCs for
practices, processes, or activities related
to the servicing and/or repair of
refrigerant-containing equipment across
the whole RACHP sector and is
proposing a subset of subsectors to be
required to use reclaim in the servicing
and/or repair of equipment. The Agency
describes later in this section and in the
Updated Draft Report—Analysis of the
U.S. Hydrofluorocarbon Reclamation
Market: Stakeholders, Drivers, and
Practices in the docket for this
rulemaking in more detail the
anticipated demand of HFCs for
servicing and/or repair of refrigerantcontaining equipment in these
subsectors that would need to be met
with reclaimed HFCs, and notes that the
compliance date for these proposed
requirements is not proposed to occur
until January 1, 2028. This compliance
date would provide industry a transition
period to have enough reclaimed HFCs
available to meet the demand for
servicing and/or repair of equipment.
EPA is proposing requirements for the
use of reclaimed HFCs in the servicing
and/or repair of equipment in four
subsectors within the RACHP sector.
EPA acknowledges the needed increase
in the amount of HFCs available for the
servicing and/or repair of equipment in
these subsectors, and notes that these
proposed requirements further serve one
of the purposes identified in subsection
(h), to maximize the reclaiming of
regulated substances. Reclaimed HFCs
are purified and tested to the levels as
specified in appendix A to 40 CFR part
82, subpart F (which is based on AHRI
700–2016), as consistent with the
definition of reclaim in 40 CFR part 82,
subpart A and could be required to be
used in other subsectors as well. These
four subsectors in the RACHP sector
provide opportunities for transitioning
to using reclaimed HFCs in the servicing
and/or repair of refrigerant-containing
equipment as the phasedown of
production and consumption virgin
HFCs progresses under the AIM Act.
These subsectors are expected to
91 Hudson Technologies, Emerald Refrigerants.
More information available at: https://
www.hudsontech.com/refrigerants/emeraldrefrigerants/.

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
continue to use HFCs in the current
existing equipment and are likely to
continue to have a steady demand for
the HFCs in servicing and/or repair of
the equipment. Thus, these subsectors
are appropriate for proposing that the
anticipated demand for servicing and/or
repair of equipment be met with
reclaimed HFC refrigerant. As noted
above, there are likely already cases in
which reclaimed HFC refrigerants are
being used to service and/or repair
equipment in these subsectors.
EPA estimated the demand for
servicing and/or repair with HFCs for
refrigerant-containing equipment in the
applicable subsectors in 2028 that
would be required to be fulfilled with
reclaimed HFCs per this proposal.
EPA estimates that the total amount of
reclaimed HFCs that would be required
to meet the demand for the servicing
and/or repair of refrigerant-containing
equipment in the covered subsectors
would be approximately 16,700 metric
tons, which is equivalent to 46.8
MMTCO2e in 2028. The subsector with
the greatest amount of reclaimed HFCs
needed to meet demand for servicing
and/or repair of equipment is
supermarket systems, at approximately
12,900 metric tons (33.6 MMTCO2e) of
reclaimed HFCs that would be required
in 2028. Additional information on the
demand of HFCs for the servicing and/
or repair of refrigerant-containing
equipment in the covered subsectors
can be found in the Updated Draft
Report—Analysis of the U.S.
Hydrofluorocarbon Reclamation Market:
Stakeholders, Drivers, and Practices in
the docket for this rulemaking.
EPA is requesting comment on all
aspects of this proposal. Regarding the
proposed requirements for using
reclaimed HFCs in the servicing and/or
repair of certain refrigerant-containing
equipment, EPA is requesting comment
on whether the requirement to use
reclaimed HFCs in the servicing and/or
repair of certain equipment should
exclude certain HFCs or HFC blends
because there are barriers to establishing
the requisite availability of reclaimed
refrigerants by the proposed January 1,
2028, compliance date. Such barriers
could potentially include niche HFCs or
HFC blends that are not manufactured
or reclaimed at significant volumes but
are key to certain subsectors, HFCs or
HFC blends that were recently
commercialized such that the amount of
used material is not yet sufficient to
provide the input to a supply of reclaim
material, or certain refrigerants that may
be subject to specific types of patents.
EPA requests comment on other ways
to structure the requirements to use
reclaimed refrigerant in certain

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

subsectors. EPA requests comment on
whether the Agency should use a
percentage-based approach and/or
phase the requirements in by requiring
a percentage of the HFCs or HFC blends
used in the servicing and/or repair of
refrigerant-containing equipment be
reclaimed HFCs, and then increasing
that percentage over time. In other
words, EPA could require, for example,
25, 50 or 75 percent of a subsector use
reclaim for servicing and/or repair
indefinitely, or as an alternative
example, that 25 percent do so in 2026,
50 percent in 2027, 75 percent in 2028,
and 100 percent in 2029. Although this
an option that the Agency is considering
for the final rule, EPA is not proposing
that as the lead option because the
Agency has potential concerns, which
are similar to those described in section
IV.D.3. Particularly, as related to
servicing and/or repair of equipment,
the Agency has potential concerns about
the recordkeeping and/or reporting
requirements necessary to track and
verify compliance with a percentagebased approach in relation to the policy
goals of the provision. By proposing to
require that all refrigerant-containing
equipment in the affected subsector be
serviced and/or repaired with reclaimed
HFCs, additional recordkeeping
requirements would be avoided since
owners or operator could just purchase
reclaimed HFCs rather than keep track
of the amount of reclaimed and virgin
HFCs they purchase to service their
equipment throughout the year, as
would be necessary if only a portion of
the affected equipment were required to
be serviced and/or repaired with
reclaimed refrigerant. EPA requests
comment on what recordkeeping and/or
reporting would be necessary to verify
compliance with a percentage-based
option and which entities would
ultimately be responsible for that
recordkeeping and/or reporting. EPA
also requests comment on the proposed
compliance date of January 1, 2028 in
general, for use of reclaimed HFCs in
the servicing and/or repair of equipment
in applicable RACHP subsectors. EPA is
interested in whether reclaimers
anticipate being able to meet the
demand in 2028.
E. How is EPA proposing to establish an
HFC emissions reduction program for
the fire suppression sector?
1. Background
As described in greater detail in
section IV.B., HFCs and substitutes for
HFCs are used in many different sectors,
subsectors, and applications beyond
those in the RACHP sector, and EPA
interprets its authority under subsection

PO 00000

Frm 00045

Fmt 4701

Sfmt 4702

72259

(h) to include promulgating regulations
that control the types of practices,
processes, or activities identified in
subsection (h)(1) in those sectors,
subsectors, and applications, with the
limitation that we do not interpret our
regulatory authority under subsection
(h) to extend to HFCs or substitutes for
HFCs when they are contained in foams.
For example, HFCs are also used in the
fire suppression sector.
EPA understands that different sectors
use HFCs and their substitutes
differently, and as such, the timing for
emissions and mechanisms by which
emissions occur can vary greatly across
sectors. HFCs used in the fire
suppression sector are used as a fire
suppressant and should only be
discharged from fire suppression
equipment in the event of a fire. If there
is no event to cause the fire suppression
equipment to be used, the HFCs should
not be discharged, and thus not emitted.
EPA considered these differences as
well as the types of equipment used for
fire suppression in developing this
proposed rule. EPA is proposing certain
requirements to address HFC
management for fire suppression under
subsection (h).
The Agency is not proposing any
regulatory requirements under
subsection (h) for HFC and HFC
substitutes used in sectors, subsectors,
and applications besides the RACHP
and fire suppression sectors at this time.
However, the Agency will continue to
monitor the use and emissions of HFCs
more generally and such information
may inform future rulemakings under
subsection (h).
2. Nomenclature Used in This Section
This section uses the term ‘‘recycled’’
or ‘‘recycling’’ to describe the testing
and/or reprocessing of HFCs used in the
fire suppression sector to certain purity
standards.92 HFCs that are recycled for
fire suppression use include HFC–
227ea, HFC–125, HFC–236fa, and HFC–
23. The term ‘‘recycled’’ or ‘‘recycling’’
as used in the fire suppression sector is
similar, but not identical, to the term
‘‘reclaim’’ as defined under the AIM
Act. Under the AIM Act, the terms
‘‘reclaim; reclamation’’ are defined in
subsection (b)(9) of the Act, and that
definition refers to the purity standards
under AHRI Standard 700–2016 (or an
92 These industry standards may include NFPA
2001 (Standard on Clean Agent Fire Extinguishing
Systems), NFPA 10 (Standard for Portable Fire
Extinguishers), ASTM D6064–11 (Standard
Specification for HFC–227ea), ASTM D6231/
D6231M–21 (Standard Specification for HFC–125),
ASTM D6541–21 (Standard Specification for HFC–
236fa), and ASTM D6126/D6126M–21 (Standard
Specification for HFC–23).

E:\FR\FM\19OCP2.SGM

19OCP2

72260

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

appropriate successor standard adopted
by the Administrator) and the
verification of purity using, at a
minimum, the analytical methodology
described in that standard.
The fire suppression industry
describes clean agents as ‘‘a gaseous fire
suppressant that is electrically
nonconducting and that does not leave
a residue upon evaporation,’’ and the
term ‘‘clean agents’’ includes HFCs,
according to the National Fire
Protection Association (NFPA).93 For
the purposes of this section, EPA is
generally referring to the term, ‘‘clean
agents’’ as HFCs.
3. Fire Suppression Background
As part of implementing subsection
(h)(1), EPA is proposing certain
regulatory requirements regarding the
servicing, repair, disposal, or
installation of fire suppression
equipment that contains HFCs, with the
purpose of minimizing the release of
HFCs from that equipment, as well as
requirements related to technician
training for servicing, repair, disposal,
or installation in the fire suppression
sector. These proposed requirements are
similar to the halon emissions reduction
requirements found at 40 CFR part 82,
subpart H. EPA regulations under Title
VI of the CAA prohibit the intentional
release of halons during testing,
maintenance, servicing, repair, or
disposal of halon-containing equipment,
or during the use of such equipment for
technician training (subject to certain
exceptions). EPA’s halon emission
reduction requirements at 40 CFR part
82, subpart H cover technician training
requirements and proper halon disposal
and recycling.94 These regulations also
prohibit halon releases that occur
because an owner failed to maintain
halon-containing equipment to relevant
industry standards. With the production
and import of virgin halons phased out
in the United States since 1994,
recycled halons have been the primary
supply of halons in the United States for
nearly 30 years. Sources of recycled
halons include recovered halons from
cylinders collected from
decommissioned systems both in the
United States and abroad. Existing
halon stocks are purchased by
commercial recyclers from
decommissioned equipment,
reprocessed to industry specifications,
93 National Fire Protection Association, NFPA
Today, May 6, 2022, https://www.nfpa.org/Newsand-Research/Publications-and-media/BlogsLanding-Page/NFPA-Today/Blog-Posts/2022/05/06/
Clean-Agent-System-Basics.
94 These regulations were established in 1998 (63
FR 11096, March 5, 1998) and amended in 2020 (85
FR 15301, Mar. 17, 2020).

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

and sold back into the market. Demand
for halons has been satisfied with
recycled halons, ensuring equipment
can be serviced and investments are not
stranded.
Recycled halon is still available today,
nearly 30 years after the United States
phased out production and
consumption of halons. It is this
experience since the phaseout of the
halons in 1994 that demonstrates the
important role recovery and recycling of
fire suppression clean agents can play
by providing an ongoing supply of HFCs
in fire suppression applications
especially where other substitutes may
not be suitable. EPA understands that
this model has carried over on a
voluntary basis to the management of
HFCs by many in the fire suppression
sector.95 In 2002, the fire suppression
industry developed a voluntary code of
practice (VCOP) for the reduction of
emissions of fire suppression agents
including HFCs. The VCOP was
developed by the Halon Alternatives
Research Corporation (HARC), an
industry organization, in partnership
with EPA, the Fire Suppression Systems
Association (FSSA), the Fire Equipment
Manufacturers Association (FEMA), and
the National Association of Fire
Equipment Distributors (NAFED). Many
of the practices have been voluntarily
adopted by the fire suppression sector,
such as equipment manufacturers or
distributors.
Fire suppression agents must satisfy
important environmental and safety
criteria, including but not limited to
acceptable ODPs, GWPs, and
atmospheric lifetimes, be effective
extinguishants, and, for spaces where
people would be present, have
sufficiently low toxicity that under
normal use the discharge of agent in
occupied spaces would not harm
people.96 Other important preferred
features include being electrically nonconductive, and ‘‘clean,’’ meaning
leaving no non-volatile residue that
could damage high-value electronics,
controls, or other critical systems in the
protected spaces. HFCs that satisfy the
above requirements are used in fixed
systems for total-flooding applications
and for use in portable equipment as
95 EPA, 2023. American Innovation and
Manufacturing Act of 2020—Subsection (h): Fire
Suppression Sector. Draft Technical Support
Document. Available in the docket (EPA–HQ–OAR–
2022–0606) for this proposed rulemaking at https://
www.regulations.gov.
96 UNEP, ‘‘TEAP 2022 Assessment: Report of the
Fire Suppression Technical Options Committee,’’
December 2022, available at: https://
ozone.unep.org/system/files/documents/FSTOC2022-Assessment.pdf.

PO 00000

Frm 00046

Fmt 4701

Sfmt 4702

streaming agents. These applications are
generally described as follows:
• Total flooding systems are designed
to automatically discharge a fire
suppression agent by detection and
related controls (or manually by a
system operator) and achieve a specified
minimum agent concentration
throughout a confined space (i.e.,
volume percent of the agent in air) that
is sufficient to suppress development of
a fire.
• Streaming applications use portable
fire extinguishers that can be manually
manipulated to discharge an agent in a
specific direction and release a specific
quantity of extinguishing agent at the
fire.
Guidelines for clean agents, including
HFCs, have been published to ensure
the quality of the recycled fire
suppression agents. According to
HARC’s comment on the October 2022
NODA, fire suppression agent recyclers
follow industry standards and
specifications that are generally similar
to section 608 and AHRI purity
specifications. In 2016, HARC
developed a voluntary recycling code of
practice (RCOP).97 This code of practice
includes the recommendation that prior
to sale or reuse as a fire suppressant, the
recovered HFC should be tested and
processed to meet NFPA 2001 98 and
NFPA 10 99 standards or American
Society for Testing and Materials
(ASTM) specifications. These
specifications ensure that fire
suppressants, including HFCs, are
recycled and tested to a certain purity
level, before being sold or reused as a
fire suppressant. In addition, in 2018,
the Montreal Protocol’s Technology and
Economic Assessment Panel’s (TEAP)
Halons Technical Options Committee
(HTOC) (renamed in 2022 to the Fire
Suppression Technical Options
Committee or FSTOC) published
recommended practices for recycling
halons and other gaseous fire
extinguishing agents, including certain
HFCs, which covers similar
specifications for testing and
certification of the recycled agent prior
to reuse.100
97 HARC, ‘‘Code of Practice for Use of Recycled
Halogenated Clean Agents,’’ 2016, available at:
https://www.harc.org/_files/ugd/4e7dd1_
4ab7295ac47e4bdea67020750f544f1b.pdf.
98 NFPA 2001 Standard on Clean Agent Fire
Extinguishing Systems. Available at: https://
www.nfpa.org/codes-and-standards/all-codes-andstandards/list-of-codes-and-standards/
detail?code=2001.
99 NFPA 10 Standard for Portable Fire
Extinguishers. Available at: https://www.nfpa.org/
codes-and-standards/all-codes-and-standards/listof-codes-and-standards/detail?code=10.
100 Technical Note #4, Revision 2—
Recommended Practices for Recycling Halons and

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
A recent report by the TEAP’s FSTOC
states that ‘‘the HFC phasedown in the
US is having a large effect on the
production and consumption of HFC
fire extinguishants,’’ noting that ‘‘what
we have seen in the US is that there has
already been significant impact on cost
of HFCs.’’ 101 FSTOC states that the
reasons for this include that HFCs used
for fire extinguishing are high-GWP, that
the allocation mechanism in the United
States is GWP-weighted, and that
market commercial factors will mean
producers and importers will decide
which HFCs to manufacture or import
based on GWP and future market needs.
The reasons for this include the
extremely small use of HFCs in fire
suppression compared to other uses.
Additional impacts to the fire
suppression sector from the global
phasedown of HFCs ‘‘could reduce the
commercial viability of production of
some HFC fire extinguishing agents in
the future.’’ FSTOC notes that ‘‘HFCs
contained in fire protection equipment
have historically enjoyed a relatively
high level of recycling and reuse’’ and
‘‘[as] the supply of newly produced
HFCs for fire protection decreases in
response to phase down regulations,
recycling becomes even more important
as an alternative source of supply and
is likely to increase in the future.’’
4. Minimizing Releases of HFCs

lotter on DSK11XQN23PROD with PROPOSALS2

As part of implementing subsection
(h)(1), EPA is proposing a number of
requirements to minimize releases of
HFCs during the servicing, repair,
disposal, or installation of fire
suppression equipment containing
HFCs or during the use of such
equipment for technician training. As
previously discussed, EPA is proposing
requirements that are similar to the
halon emissions reduction requirements
found at 40 CFR part 82, subpart H. The
fact that recycled halons have been the
only supply of halons in the United
States nearly 30 years after its
production phaseout in 1994
demonstrates the important role
recovery and recycling of fire
suppression clean agents can play by
providing an ongoing supply where
substitutes may not be suitable. EPA
understands that this model has carried
over on a voluntary basis to the
Other Halogenated Gaseous Fire Extinguishing
Agents. Available at: https://ozone.unep.org/sites/
default/files/Assessment_Panel/Assessment_
Panels/TEAP/Reports/HTOC/technical_note4_
2018.pdf.
101 UNEP, ‘‘TEAP 2022 Assessment: Report of the
Fire Suppression Technical Options Committee,’’
December 2022, available at: https://
ozone.unep.org/system/files/documents/FSTOC2022-Assessment.pdf.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

management of HFCs by many in the
fire suppression sector.
To minimize releases of HFCs, EPA is
proposing that covered entities
installing, servicing, repairing, or
disposing of fire suppression equipment
containing a regulated substance may
not release into the environment any
HFCs used in such equipment. EPA is
also proposing that owners and
operators of fire suppression equipment
containing HFCs may not allow for the
release of HFCs as a result of failure to
maintain such equipment. In the
following sections, EPA describes its
proposal to require the use of recycled
HFCs for initial charge and servicing
and/or repair of fire suppression
equipment as well as minimizing HFC
releases during recycling; technician
training; recycling of HFCs prior to the
disposal of fire suppression equipment
containing HFCs; and recordkeeping
and reporting. These requirements are
proposed with a compliance date of
January 1, 2025.
Recognizing the extensive
requirements for testing (e.g., Federal
Aviation Administration, United States
Coast Guard, Department of Defense)
associated with the approval for use of
fire suppressants in certain applications,
certain limited HFC releases for health,
safety, environmental, and other
considerations would be exempted,
including:
• Releases during the testing of fire
suppression equipment only if the
following four criteria are met: (1)
equipment employing suitable
alternative fire suppression agents are
not available, (2) release of fire
suppression agent is essential to
demonstrate equipment functionality,
(3) failure of the equipment would pose
great risk to human safety or the
environment, and (4) a simulant agent
cannot be used in place of the regulated
substance for testing purposes.
• Releases associated with
qualification and development testing
during the design and development of
equipment containing regulated
substances only when (1) such tests are
essential to demonstrate equipment
functionality, and (2) a suitable
simulant agent cannot be used in place
of the regulated substance for testing
purposes.
In addition, these proposed
requirements to minimize HFC releases
do not apply to emergency releases of
HFCs for actual fire extinguishing,
explosion inertion, or other emergency
applications for which the equipment
were designed.
EPA requests comment on the
proposed compliance date of January 1,
2025, for the proposed requirements in

PO 00000

Frm 00047

Fmt 4701

Sfmt 4702

72261

the fire suppression sector. As discussed
elsewhere in this section of the
proposed rule, many covered entities
may already have procedures in place
given the voluntary program within the
fire suppression sector as described
previously. EPA views this proposed
compliance date as appropriate.
a. Proposed Requirements for Initial
Charge of Equipment for Fire
Suppression
EPA is proposing that for the fire
suppression sector where HFCs are
used, the initial charge of fire
suppression equipment, including both
total flooding systems and streaming
applications, must be with recycled
HFCs starting January 1, 2025. EPA is
also considering other potential
compliance dates, such as January 1,
2026 or January 1, 2027. Specifically, for
factory-charged equipment that use
HFCs, EPA is proposing that in order to
install such equipment, the equipment
would be required to use recycled HFCs
for the initial charge during the
manufacture of the equipment. These
requirements would apply whether the
HFCs are used neat or in a blend.
However, EPA notes that most often,
where clean agents are needed and
HFCs are being used, these are single
component HFCs with some of the
highest GWPs for the regulated HFCs.
Given the high GWPs for the commonly
used HFC fire suppression agents, this
aspect of the proposal is anticipated to
further minimize emissions by requiring
that only recycled HFCs be used in fire
suppression equipment.
EPA understands that, in practice,
recycled HFCs are required to meet
applicable purity standards and
function the same as their virgin
counterparts when used in equipment
in the fire suppression sector. Currently,
recycled HFCs are primarily used for the
servicing and recharge of existing fire
suppression equipment. However,
HARC’s comments on the October 2022
NODA indicate that it does not
anticipate major barriers to using
recycled HFCs in new fire suppression
equipment and expects use of recycled
HFCs in new equipment to increase as
the supply of virgin HFCs for fire
suppression decreases.
EPA notes that the proposed
definition of ‘‘fire suppression
equipment’’ for purposes of subsection
(h) excludes mission-critical military
end uses and systems used in
deployable and expeditionary
applications, as well as space vehicles.
Finalizing the proposed definition
would exempt those applications from
this requirement, which is consistent
with EPA’s intent to not include these

E:\FR\FM\19OCP2.SGM

19OCP2

72262

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

applications under the proposed
requirements to use recycled HFCs in
the installation, servicing and/or repair
of such fire suppression equipment.
This proposed exclusion is based on
EPA’s understanding that there are
situations in which the unique design
and use of such military equipment and
space vehicles make it impossible to
recover fire suppression agent during
the service, repair, disposal, or
installation of the equipment.
Recognizing that application-specific
HFC allowances are available to other
onboard aerospace fire suppression
applications under regulations at 40
CFR 84.13,102 EPA is not proposing to
extend a requirement to use recycled
HFCs in the installation, servicing and/
or repair of such fire suppression
equipment as long as they qualify for
application-specific allowances in 40
CFR 84.13. Because these other onboard
aerospace fire suppression applications
would have the necessary allowances
for virgin HFCs through qualification for
application-specific allowances, these
applications would not need to use
recycled fire suppressants containing
HFCs for the installation, servicing, and/
or repair of fire suppression equipment.
EPA is requesting comment regarding
the proposed requirement for using
recycled HFCs in the initial charge of
fire suppression equipment. EPA is
requesting comment on the proposed
requirement to solely use recycled HFCs
in the initial charge of fire suppression
equipment or if EPA should consider an
approach that either uses a percentagebased approach for the affected fire
suppression equipment charged with
recycled HFCs (e.g., 25, 50, or 75
percent of the fire suppression
equipment) or phases in the
requirement for using recycled HFCs
over a period of time. As noted in
section IV.D.3., if EPA were to finalize
a percentage-based and/or phased in
approach, associated recordkeeping and
reporting may be required to ensure
compliance with such an approach. EPA
is also requesting comment on whether
recycled HFCs should be used for the
initial charge during the installation of
fire suppression equipment as EPA
understands that HFCs are generally not
transferred from cylinders once in
service. EPA also requests comment on
102 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. Mission-critical military end uses and
systems used in deployable and expeditionary
applications, as well as space vehicles, are
applications that sometimes use HFCs and are
therefore currently eligible for application-specific
allowances.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

the proposed compliance date of
January 1, 2025, and other potential
compliance dates such as January 1,
2026, or January 1, 2027, for the use of
recycled HFCs in the initial charge of
fire suppression equipment.
b. Proposed Requirements for Servicing
and/or Repair of Existing Equipment for
Fire Suppression
EPA is proposing to require the use of
recycled HFCs for the servicing and/or
repair of fire suppression equipment,
including both total flooding systems
and streaming applications, starting on
January 1, 2025. EPA is also considering
other potential compliance dates, such
as January 1, 2026, or January 1, 2027.
EPA understands that the fire
suppression industry operates in
accordance with requirements from
NFPA 2001 or NFPA 10 or appropriate
ASTM standards to recover and recycle
HFCs during servicing and/or repair of
fire suppression equipment. NFPA 2001
is a voluntary industry standard
containing the minimum requirements
for the design, installation, approval,
and maintenance of total flooding
systems using listed clean agents
including HFCs. It includes
requirements for inspection, servicing,
testing, maintenance, and training to
ensure the safe use and operation of
these systems. Similarly, NFPA 10 is a
voluntary industry standard containing
the minimum requirements that apply
to the selection, installation, inspection,
maintenance, recharging, and testing of
portable fire extinguishers and fire
suppression agents including HFCs. The
ASTM specifications cover the
requirements (e.g., purity) for the fire
suppression agents, in this case the
HFCs; the specifications do not typically
address the associated fire suppression
equipment or hardware that use the fire
suppression agent or the conditions of
using such equipment (e.g., fixed total
flooding systems, portable fire
extinguishers). None of these current
industry standards or specifications
related to HFCs used in fire suppression
contain specific requirements to
minimize releases of HFCs, including
during servicing or repair of the
equipment. Efforts by the industry to
minimize emissions of HFCs used in the
fire suppression sector have to date been
on a voluntary basis. For example, the
VCOP includes as part of its emission
reduction strategies during storage,
handling, and transfer of HFCs to
recover and recycle agents during
servicing and to adopt maintenance
practices that reduce leakage as much as
is technically feasible. Considering
these current voluntary practices to
minimize emissions, the proposed

PO 00000

Frm 00048

Fmt 4701

Sfmt 4702

requirements would minimize
emissions of HFCs broadly within this
sector of use. Covered entities are
required to evacuate, as applicable, all
equipment used to recover, store, and
transfer HFCs prior to each use to
prevent contamination, arrange for
destruction of the recovered HFCs as
necessary (e.g., recovered HFCs that are
too contaminated to be recycled), and
collect and dispose of wastes from
recycling process. If the recycling of
HFCs is not practical, the disposal of
HFCs would help to prevent releases of
used HFCs into the atmosphere.
In 2015, data on recycling of HFC fire
suppression agents were collected as
part of the HFC Emissions Estimating
Program (HEEP), which is voluntary
data collection effort implemented by
the fire suppression industry. HEEP
collects data on sales of fire suppression
agents for recharge in order to estimate
annual emissions of HFCs. These data
showed that the HFC–227ea, HFC–125,
HFC–236fa and HFC–23 are all recycled
for fire suppression use.103 In recent
years, approximately 75 percent of HFCs
sold for recharge came from recyclers,
with 80 percent reported in 2020, based
on data submitted voluntarily to HEEP
and may not include all entities in this
sector.104
As part of servicing and/or repairing
fire suppression equipment, recovery
and recycling equipment is used to
recover HFCs. EPA is also proposing to
require that covered entities must (1)
operate and maintain recovery and
recycling equipment in accordance with
manufacturer specifications to ensure
that the equipment performs as
specified; (2) repair leaks in HFC
storage, recovery, recycling, or charging
equipment before use; and (3) ensure
that cross-contamination does not occur
through the mixing of HFCs that may be
contained in similar cylinders. Recovery
equipment collect HFCs from
equipment and recycling equipment
remove contaminants from HFCs and
this equipment is used during servicing
and/or repair. By ensuring that this
equipment is functioning properly, HFC
releases can be minimized during the
recovery and recycling process. The
proposed requirements would ensure
that releases from fire suppression
equipment are minimized when
103 HARC comments on Notice of Data
Availability Relevant to Management of Regulated
Substances under the American Innovation and
Manufacturing Act of 2020 are available in the
docket (EPA–HQ–OAR–2022–0606) for this
proposed rulemaking at https://
www.regulations.gov.
104 HARC Report of the HFC Emissions Estimating
Program (HEEP) 2002–2020 Data Collection,
October 2022.

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

recycling HFCs during servicing and/or
repairing fire suppression equipment.
EPA notes that the proposed
definition of ‘‘fire suppression
equipment’’ for purposes of subsection
(h) excludes mission-critical military
end uses and systems used in
deployable and expeditionary
applications, as well as space vehicles.
Finalizing the proposed definition
would exempt those applications from
this requirement, which is consistent
with EPA’s intent to not include these
applications under the proposed
requirements to use recycled HFCs in
the installation, servicing and/or repair
of such fire suppression equipment.
This proposed exclusion is based on
EPA’s understanding that there are
situations in which the unique design
and use of such military equipment and
space vehicles make it impossible to
recover fire suppression agents during
the service, repair, disposal, or
installation of the equipment.
Recognizing that application-specific
HFC allowances are available to other
onboard aerospace fire suppression
applications under regulations at 40
CFR 84.13,105 EPA is not proposing to
extend a requirement to use recycled
HFCs in the installation, servicing and/
or repair of such fire suppression
equipment as long as they qualify for
application-specific allowances in 40
CFR 84.13. Because these other onboard
aerospace fire suppression applications
would have the necessary allowances
for virgin HFCs through qualification for
application-specific allowances, these
applications would not need to use
recycled fire suppressants containing
HFCs for the installation, servicing, and/
or repair of fire suppression equipment.
EPA is requesting comment regarding
the proposed requirements for using
recycled HFCs in the servicing and/or
repair of fire suppression equipment. In
particular, EPA requests comments on
the applicable fire suppression
equipment that would be required to
use recycled HFCs in the servicing and/
or repair of fire suppression equipment.
EPA is also requesting comment on the
proposed requirement to solely use
recycled HFCs in the servicing and/or
repair of fire suppression equipment or
if EPA should consider an approach that
phases in requirements for using
105 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. Mission-critical military end uses and
systems used in deployable and expeditionary
applications, as well as space vehicles, are
applications that sometimes use HFCs and are
therefore currently eligible for application-specific
allowances.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

recycled HFCs. In addition, EPA
requests comments on the practices to
minimize releases from HFC recycling
during servicing and/or repair as well as
whether covered entities should be
required to follow industry standards
including NFPA 2001 (Standard on
Clean Agent Fire Extinguishing
Systems), NFPA 10 (Standard for
Portable Fire Extinguishers), ASTM
D6064–11 (Standard Specification for
HFC–227ea), ASTM D6231/D6231M–21
(Standard Specification for HFC–125),
ASTM D6541–21 (Standard
Specification for HFC–236fa), and
ASTM D6126/D6126M–21 (Standard
Specification for HFC–23). EPA also
requests comment on the proposed
compliance date of January 1, 2025, and
other potential compliance dates, such
as January 1, 2026, or January 1, 2027,
for the use of recycled HFCs for the
servicing and/or repair of fire
suppression equipment.
c. Technician Training
EPA is proposing to require all
entities that employ fire suppression
technicians who service, repair, install,
or dispose of fire suppression
equipment containing HFCs provide
training regarding HFC emissions
reduction. This proposed requirement is
intended to control practices, processes,
or activities regarding servicing, repair,
disposal or installation of such fire
suppression equipment by providing
technicians with knowledge and skills
to minimize releases of HFCs during
such practices, processes, or activities,
and the proposed requirements would
involve a regulated substance. Fire
suppression technicians are an
important part in any effort to control
unnecessary HFC emissions from fire
suppression equipment while servicing,
repairing, installing, or disposing of
such equipment. By training technicians
in the significance of minimizing
unnecessary HFC releases from fire
suppression equipment and providing
information on applicable procedures
such as the recovery and recycling or
reclamation of HFCs from the fire
suppression equipment, technician
training would support EPA’s effort to
reduce HFC emissions from fire
suppression equipment.
EPA is proposing that HFC fire
suppression technician training be
designed to cover: (1) an explanation of
the purpose of the training requirement,
including the significance of
minimizing releases of HFCs and
ensuring technician safety, (2) an
overview of HFCs and environmental
concerns with HFCs, (3) a review of
relevant regulations concerning

PO 00000

Frm 00049

Fmt 4701

Sfmt 4702

72263

HFCs,106 including the requirements of
the HFC emissions reduction program
for fire suppression equipment, and (4)
specific technical instruction relevant to
avoiding unnecessary HFC emissions
during the servicing, repair, disposal or
installation of fire-suppression
equipment at each individual facility.
Starting as of January 1, 2025, EPA is
proposing that all entities that employ
technicians who maintain, service,
repair, install, or dispose of fire
suppression equipment containing
HFCs must provide HFC fire
suppression technician training to their
technicians (as described in this section)
and ensure that their technicians
complete this training. Technicians
hired after that date must be similarly
trained within 30 days of hiring, or by
June 1, 2025. EPA is proposing this as
a one-time training requirement. EPA is
requesting comment on the requirement
for technicians to be trained, the
proposed content as described above,
and timing of this requirement for
technician training.
d. Recycling of HFCs Prior to Disposal
of Fire Suppression Equipment
Containing HFCs
EPA is proposing requirements
related to the disposal of fire
suppression equipment. The intent of
these requirements is to ensure that
HFCs have been recovered and recycled
from the equipment prior to the final
step of the disposal of the equipment so
that HFCs are not released during the
disposal of the equipment. EPA is
proposing to require owners and
operators of fire suppression equipment
containing HFCs (including an HFC
blend) dispose of this equipment by
recovering the HFCs themselves or by
arranging for HFC recovery by a fire
suppression equipment manufacturer,
distributor, or a fire suppressant
recycler. EPA is also proposing that
owners and operators dispose of HFCs
used as a fire suppression agent by
sending it for recycling to a fire
suppressant recycler or a reclaimer
certified under 40 CFR 82.164 or by
arranging for its destruction using one of
the controlled processes listed in 40
CFR 84.29. The voluntary industry
standards that apply to the uses of HFCs
in fire suppression equipment, NFPA
2001 for fire suppression systems and
NFPA 10 for fire extinguishers, contain
no current requirement for the recovery
106 These may include, but are not limited to,
other EPA regulations, U.S. Department of
Transportation (DOT) regulations, Occupational
Safety and Health Administration (OSHA)
regulations, codes and standards of NFPA, and
other federal, state, or local fire, building, safety,
and environmental codes and standards.

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

72264

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

and disposal of HFCs prior to disposal
of equipment. Efforts by the industry to
minimize emissions of HFCs used in the
fire suppression sector have to date been
on a voluntary basis. For example, the
VCOP includes as part of its emission
reduction strategies during storage,
handling, and transfer of HFCs to
recover the agents after the end of the
equipment’s useful life and either
recycle or destroy them. The proposed
requirements would minimize
emissions of HFCs through recovery of
the agent prior to disposal of the
equipment and ensure recycling or
proper disposal of the HFC occurs
broadly within this sector of use. Under
the proposed requirements, the owners
and operators of this equipment (e.g.,
specialized fire suppression systems
containing HFCs that protect high value
equipment, such as electronic server
rooms or oil and gas production
facilities) must ensure that these HFCs
are recovered from the fire suppression
equipment before it is sent for disposal,
either by recovering the HFCs
themselves before sending the
equipment for disposal or by leaving the
HFCs in the equipment and sending it
for disposal to a facility (e.g., fire
suppression equipment manufacturer, a
distributor, or a fire suppressant
recycler) operating in accordance with
industry standards, i.e., NFPA 10 and
NFPA 2001 standards, as applicable.
The proposal also would require that
owner or operators of fire suppression
equipment recover any HFCs as part of
the disposal of such equipment be
disposed of by sending it to a fire
suppressant recycler operating in
accordance with the relevant industry
standards, which EPA understands to be
the NFPA 10 and NFPA 2001 standards
(depending on the type of equipment),
by sending it to a reclaimer certified
under 40 CFR 82.164, or by arranging
for its destruction by a technology that
is listed as an approved technology for
destruction of the relevant regulated
substance in the regulations at 40 CFR
84.29. These requirements are being
proposed as part of implementing
subsection (h)(1) of the AIM Act, as they
would control practices, processes, or
activities regarding the disposal of such
fire-suppression equipment by
establishing certain requirements that
must be met as part of the disposal
process and would involve a regulated
substance.
Owners and operators of this fire
suppression equipment who recover
HFCs prior to disposal may already be
aware of the importance of HFC
recycling given prior communication
efforts by the industry and may already

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

take steps to ensure recovery of HFCs
prior to disposal. As mentioned in
section IV.E.3., the recycling of HFCs
plays an important role in providing the
fire suppression sector with continued
supply of HFCs for fire suppression
equipment during servicing. Industry
trade organizations have encouraged
owners and operators of fire
suppression equipment and those
disposing of HFCs to contact fire
suppression equipment manufacturers,
distributors, or fire suppressant
recyclers to ensure that HFC is safely
recovered from equipment and recycled
for future use. Therefore, the proposed
requirements are likely consistent with
current industry practices. Most fire
suppression systems and extinguishers
in use today are purchased, installed,
and serviced by fire suppression
equipment distributors. EPA is aware
that there are established distribution
channels within the commercial and
industrial sectors where these
specialized systems are used and that
industry representatives indicate that
the simplest way in their opinion to
ensure proper recycling of HFCs is to
encourage equipment owners return
equipment containing HFCs to
distributors.107 EPA values using
established industry practices where
such practices exist and can be used to
meet the intended goals. EPA is
requesting comment on the requirement
to recover and recycle HFCs prior to the
final step of disposal of the fire
suppression equipment.
e. Recordkeeping and Reporting
EPA is proposing to include
recordkeeping and reporting
requirements on the fire suppression
provisions under subsection (h) for
HFCs used in the installation of new
equipment and servicing and/or repair
of existing equipment. These
requirements are being proposed as part
of implementing subsection (h)(1) of the
AIM Act, as these provisions would
control practices, processes, or activities
regarding servicing, repair, disposal or
installation of fire suppression
equipment, and would involve a
regulated substance. For example, the
requirements would control
recordkeeping and reporting practices,
process, or activities for servicing and
repair that involves HFCs. As noted in
section II.B. of this document, EPA’s
authority to require recordkeeping and
reporting under the AIM Act is also
107 HARC comments, dated November 7, 2022, to
Notice of Data Availability Relevant to Management
of Regulated Substances Under the American
Innovation and Manufacturing Act of 2020 are
available in the docket (EPA–HQ–OAR–2022–0606)
for this rulemaking at https://www.regulations.gov.

PO 00000

Frm 00050

Fmt 4701

Sfmt 4702

supported by section 114 of the CAA,
which applies to the AIM Act and rules
promulgated under it as provided in
subsection (k)(1)(C) of the AIM Act.
EPA is proposing that covered entities
in the fire suppression sector provide
data on HFCs to the Agency. The fire
suppression industry is familiar with
data collection and reporting as some of
the entities in this industry are
voluntarily reporting data to HEEP as
mentioned in section IV.E.4.b. Relevant
reporting entities covered under this
requirement include entities that
perform first fill of equipment, service
(e.g., recharge) equipment and/or
recycle regulated substances, such as
equipment manufacturers, distributors,
agent suppliers or installers that recycle
regulated substances. EPA is proposing
that these records related to the fire
suppression sector be maintained for
three years. Specifically, EPA is
proposing that the covered entities
report annually by February 14th of
each year, covering the prior year’s
activity from January 1 through
December 31:
• The quantity of material (the
combined mass of regulated substance
and contaminants) by regulated
substance broken out by sold, recovered,
recycled, and virgin for the purpose of
installation of new equipment and
servicing of fire suppression equipment,
• The total mass of each regulated
substance broken out by sold, recovered,
recycled, and virgin; and
• The total mass of waste products
sent for disposal, along with
information about the disposal facility if
waste is not processed by the reporting
entity.
EPA acknowledges that these
recordkeeping and reporting
requirements proposed herein may
overlap with recordkeeping and
reporting requirements under 40 CFR
part 84, subpart A. EPA is requesting
comments on these recordkeeping and
reporting requirements, the timing of
recordkeeping and reporting
requirements (e.g., whether it should be
five years similar to recordkeeping
requirements under 40 CFR part 84,
subpart A), and whether compliance
with one set of requirements would
satisfy both obligations.
EPA is proposing that covered entities
maintain an electronic or paper copy of
the fire suppression technician training
as discussed in IV.E.4.c., and that EPA
can request to view a copy of the
training on an as needed basis. EPA is
also proposing that facilities must
document that they have provided
training to personnel. For example, local
personnel records could be annotated,
indicating where and when the training

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
occurred. Alternatively, records could
be centralized. Where EPA is proposing
requirements for recordkeeping, we are
proposing that the record be maintained
for three years in either electronic or
paper format.
As discussed in IV.E.4.d., EPA is
proposing that covered entities maintain
records documenting that HFCs are
recovered from the fire suppression
equipment before it is sent for disposal,
either by recovering the HFCs
themselves before sending the
equipment for disposal or by leaving the
HFCs in the equipment and sending it
for disposal to a facility (e.g., fire
suppression equipment manufacturer,
distributor, or a fire suppressant
recycler). Such records must be
maintained for three years.
EPA is requesting comment on the
proposed recordkeeping requirements
for fire suppression entities. The
proposed recordkeeping requirements in
this action do not change any
recordkeeping and reporting
requirements for fire suppressant
recycling per 40 CFR 84.31(j) and EPA
is not reopening, taking comment on, or
revisiting those requirements through
this proposal.

lotter on DSK11XQN23PROD with PROPOSALS2

F. What is EPA proposing for cylinder
requirements and for container tracking
requirements?
1. Background
As described in more detail earlier in
this action, subsection (h) directs EPA to
establish certain regulations regarding
the servicing, repair, disposal, or
installation of equipment for certain
purposes. More specifically, for
purposes of maximizing reclaiming and
minimizing the release of a regulated
substance 108 from equipment and
ensuring the safety of technicians and
consumers, subsection (h)(1) of the AIM
Act gives EPA authority to promulgate
regulations to control, where
appropriate, any practice, process, or
activity regarding the servicing, repair,
disposal, or installation of equipment
that involves a regulated substance or its
substitute or the reclaiming of a
regulated substance or its substitute
used as a refrigerant. Thus, EPA is
proposing certain cylinder requirements
and certain container tracking
requirements for regulated substances as
part of implementing subsection (h), as
a means of controlling a practice,
process, or activity regarding the
servicing, repair, and installation of
equipment to further serve the statutory
purpose identified in subsection (h) of
108 As noted previously in this action, ‘‘regulated
substance’’ and ‘‘HFC’’ are used interchangeably in
this action.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

maximizing reclamation of HFCs, as
well as providing additional HFC
emission reductions.
HFCs are transported and distributed
throughout the United States to a range
of users, including but not limited to
blenders, repackagers, distributors,
wholesalers, and equipment
manufacturers, as well as users engaged
in the installation, service, repair, and
disposal of equipment. For example,
containers are used to transport HFCs to
worksites for servicing, repairing,
disposing, or installing equipment
containing HFCs. HFCs are transported,
bought, and sold in different sizes and
types of containers as they move
through the supply chain. These
containers range from small cans with
16 ounces or less of HFCs to tank
trailers, International Organization for
Standardization (ISO) tanks, and tank
railcars. From the larger containers,
HFCs are often transferred to smaller
containers (a process referred to as
‘‘downpacking’’), which include other
types of refillable cylinders and
disposable cylinders.
EPA provided information on the
movement of HFCs used as refrigerants
in the supply chain as they relate to
reclamation in the draft report
accompanying the NODA published on
October 17, 2022 (87 FR 62843), and the
Agency provides additional information
in the updated report in the docket for
this proposed rule. In comments
submitted for the NODA and in public
stakeholder meetings that the Agency
hosted,109 EPA received feedback noting
that one key challenge to increasing
reclamation is ensuring that HFCs are
recovered and transferred to reclaimers.
Accordingly, EPA views the proposed
container tracking requirements in this
action as measures that could ‘‘increase
opportunities for the reclaiming of
regulated substances used as
refrigerants,’’ and thus EPA’s
consideration of the use of its authority
under subsection (h) of the AIM Act to
establish these tracking measures is
consistent with subsection (h)(2)(A).
Additionally, specifically tracking the
movement in the market of reclaimed
HFCs would have the added benefit of
supporting compliance with the
requirements described in this proposal
for using reclaimed HFCs for initial
charging and servicing of certain
equipment as well as providing
109 Comments submitted to response of NODA
published on October 17, 2022 (87 FR 62843), can
be found in the docket for this action. Additionally,
EPA heard feedback from participants in the public
meetings it hosted on November 9, 2022, and March
16, 2023, as well as solicited feedback through a
webinar for the EPA GreenChill Partnership
program on April 12, 2023.

PO 00000

Frm 00051

Fmt 4701

Sfmt 4702

72265

information that the reclaimed HFCs
contain no more than 15 percent virgin
material (see section IV.D.2.).
As discussed in greater detail below,
EPA is proposing to require machine
readable tracking identifiers (e.g., QR
code,110 or another identifier(s)) on all
containers of HFCs (i.e., containers that
contain an HFC, whether neat or in a
blend), that could be used for the
servicing, repair, or installation of
refrigerant-containing equipment or fire
suppression equipment, including both
refillable and disposable cylinders. EPA
is proposing staggered compliance
dates, ranging from January 1, 2025, to
January 1, 2027, for this requirement
that would apply to various entities
involved in the transport of HFCs across
the supply chain. EPA is also proposing
certain requirements for tracking the
movement of containers that contain
HFCs and that have been used in the
servicing, repair, or installation of
equipment as they are sent to an entity
capable of recovering any remaining
HFCs.
After cylinders are used and
considered empty, there is still an
amount of HFCs remaining in the
cylinders, referred to as the ‘‘heel.’’ HFC
releases of heels are far more likely to
occur from disposable cylinders than
from other types of cylinders, and those
amounts of HFCs released are not
available for reclamation. Refillable
cylinders are typically evacuated and
recharged, thus continuing to be used to
transit HFCs whereas disposable
cylinders are typically sold for scrap or
landfilled. To recover the remaining
HFCs, including the heel, recovery
equipment can be used to pull a vacuum
on the cylinder. Section IV.F.2. provides
additional detail on typical quantities of
the heel that would remain in a
cylinder. Recovering heels from
disposable cylinders would increase the
amount of HFCs available for
reclamation. Therefore, for disposable
cylinders, EPA is proposing to require
as of January 1, 2025, that disposable
cylinders that contain HFCs and that
have been used for the servicing, repair,
or installation of certain equipment
must be transported to an EPA-certified
reclaimer or a fire suppressant recycler.
Further, EPA is proposing that
reclaimers or fire-suppressant recyclers
who receive these disposable cylinders
would be required to remove the
110 A QR code is a type of matrix barcode that
contains data for a locator, identifier, or tracker that
points to a website or application using
standardized encoding modes to store data. It is
recognizable as black squares arranged in a square
grid on a white background, which can be read by
an imaging device such as a camera.

E:\FR\FM\19OCP2.SGM

19OCP2

72266

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

remaining HFCs, including the heel,
prior to disposing of these cylinders.
EPA also notes that it established
certain requirements for QR codes and
use of refillable cylinders in the
Allocation Framework Rule. Those
requirements were subject to judicial
review in the D.C. Circuit, and the court
concluded that ‘‘EPA has not identified
a statute authorizing its QR-code and
refillable-cylinder regulations’’ and
therefore vacated those parts of the rule
and remanded to the EPA. Heating, Air
Conditioning & Refrigeration
Distributors Int’l v. EPA, 71 F.4th 59, 68
(D.C. Cir. 2023) (‘‘HARDI v. EPA’’).111
The court’s opinion concluded that
subsection (e)(2)(B) of the AIM Act, the
statutory provision the Agency had
cited as authorizing those parts of the
rule, did not provide the authority to
support them. However, that conclusion
rested on limitations on the scope of the
EPA’s authority under subsection
(e)(2)(B) in particular, and it does not
apply to other parts of the AIM Act. In
fact, the court’s opinion highlights the
authority that EPA has under other
statutory provisions, including its
‘‘power to pass rules regulating
‘practice[s], process[es], or activit[ies]’
for ‘servicing, repair[ing], dispos[ing of],
or install[ing]’ ’’ equipment, citing
subsection (h)(1). Id. at 67. The cylinder
requirements and tracking requirements
proposed in this action are distinct from
those that were established in the
Allocation Framework Rule (86 FR
55116, October 5, 2021), as they are
being proposed under a different
statutory provision, subsection (h)(1) of
the AIM Act, and are tailored to that
subsection. As described in greater
detail below, these requirements would
regulate ‘‘practice[s], process[es], or
activit[ies] regarding the servicing,
repair, disposal, or installation of
equipment that involves regulated
substances’’ and thus are within the
authority provided by subsection
(h)(1).112
In the interest of clarity, EPA notes
that it is not at this time proposing a
prohibition on the use of disposable
cylinders like the prohibition in the
Allocation Framework Rule that was at
111 The court rejected the other challenges to the
Allocation Framework Rule in this litigation.
Heating, Air Conditioning & Refrigeration
Distributors Int’l v. EPA, 71 F.4th 59, 61 (D.C. Cir.
2023).
112 EPA further notes that in proposing separate
cylinder recovery requirements and tracking
requirements in this action, EPA is not proposing
to change, reopen, or revisit any of the requirements
related to use of refillable cylinders or certification
and tracking requirements established in the
Allocation Framework Rule; rather EPA expects to
address the court’s decision in HARDI v. EPA in a
separate action.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

issue in HARDI v. EPA. Rather, EPA is
proposing here certain practices,
processes, or activities related to the use
of disposable cylinders in the servicing,
repair, disposal, or installation of
equipment that involves a regulated
substance as discussed below.
2. Requirements for Disposable
Cylinders
EPA is proposing certain
requirements for users of disposable
cylinders that contain HFCs that could
be used in the servicing, repair, or
installation of certain equipment. As
described in more detail earlier in this
action, subsection (h)(1) directs EPA to
promulgate regulations to control,
where appropriate, any practice,
process, or activity regarding the
servicing, repair, disposal, or
installation of equipment that involves
regulated substances, among other
things, for purposes of maximizing
reclaiming and minimizing the release
of a regulated substance from equipment
and ensuring the safety of technicians
and consumers. Both disposable and
refillable cylinders are used during the
service or repair of equipment, and both
could be used during the installation of
a piece of equipment that is initially
charged in the field. For the purpose of
maximizing the reclamation of HFCs,
EPA is proposing to require that
disposable cylinders that contain HFCs
and that have been used for the
servicing, repair, or installation of
refrigerant-containing equipment or fire
suppression equipment must be sent to
an EPA-certified reclaimer or a fire
suppressant recycler. EPA is also
proposing that these entities (i.e.,
reclaimers and fire suppressant
recyclers) must remove all HFCs,
including any remaining amount after
the cylinders are considered empty for
servicing, repair, and installation
purposes (e.g., the heel), prior to the
disposal of these cylinders. The
proposed requirements to send
disposable cylinders and the removal of
the remaining HFCs will contribute to
EPA’s efforts to maximize reclaiming by
ensuring that any remaining HFCs
(including heels) have been evacuated
and recovered, and thus are available for
reclamation, rather than being released
over time when disposable cylinders are
placed in landfills or are crushed for
scrap metal recycling. EPA interprets its
authority under subsection (h)(1) of the
AIM Act to ‘‘promulgate regulations to
control, where appropriate, any
practice, process, or activity regarding
the servicing, repair, disposal, or
installation of equipment’’ to include
authority to regulate the entire practice,
process, or activity, including aspects of

PO 00000

Frm 00052

Fmt 4701

Sfmt 4702

it that may occur before or after the
servicing, repair, disposal, or
installation of the equipment, especially
where such regulations help achieve the
purposes specified in subsection (h)(1)
(e.g., ‘‘maximizing reclamation’’). Thus,
because use of these cylinders in
servicing, repair, and installation of
equipment is a practice, process, or
activity regarding the servicing, repair,
and installation of equipment, EPA
interprets section (h)(1) to convey
authority to establish the proposed
requirements for the treatment of the
cylinder after servicing, repair, or
installation. Requiring that disposable
cylinders be sent to entities able to
remove the HFCs would have the effect
of increasing the amount of HFCs that
could be reclaimed and reused in the
servicing, repair, or installation of
refrigerant-containing equipment or fire
suppression equipment. In addition, the
result of these proposed requirements
would be fewer HFC emissions, as
compared to allowing such single use,
disposable cylinders to be disposed
with HFCs still in the cylinder.
Compressed gases, such as HFCs, can
be stored and transported in a variety of
containers, which often hold as little as
sixteen ounces (or even smaller for lab
samples) or as much as a ton (or even
more in the case of railcars and ISO
tanks). The size and type of the
container depend in large part on the
intended use of the regulated substance.
Historically, HFC refrigerant 113 sold in
the United States for technicians
servicing existing RACHP equipment
has been predominantly contained in
disposable cylinders certified to
Department of Transportation (DOT)
specifications. These cylinders are often
called DOT–39 cylinders because the
cylinders are certified to meet DOT
specification 39 requirements.114 A
DOT–39 cylinder is designed for a
single use and is strictly not refillable.
As such, a DOT–39 cylinder tends to be
less expensive and weigh less than
refillable refrigerant cylinders.
Disposable cylinders of the same
capacity 115 typically have the same
shape and are also often shipped in a
box while refillable cylinders are
typically not. Refillable refrigerant
113 EPA understands that HFC fire suppressants
are less likely to be found in disposable cylinders;
however, in case they are, EPA is treating them the
same as HFC refrigerants in disposable cylinders in
this proposal.
114 See 49 CFR 178.65—Specification 39 nonreusable (non-refillable) cylinders.
115 Typically, disposable cylinders of the same
designed water capacity have the same shape. For
example, disposable cylinders with a ∼30-pound
water capacity will generally have the same shape;
however, disposable cylinders with a ∼16-pound
water capacity would be smaller in size and shape.

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
cylinders are also used to a lesser extent
and considered to be more durable,
lasting up to 20 years. The two primary
shapes of refillable refrigerant cylinders
currently being used in servicing, repair,
and/or installation are akin to a propane
tank or a cylindrical scuba tank and
have a two-way valve that can be
adjusted to allow pressurized gases in or
out.
HFC losses are more likely to occur,
and in more significant quantities, from
disposable cylinders, including losses
from the residual amount of HFCs (i.e.,
heels) that remain in cylinders after the
majority of the HFC has been removed
from the cylinder for use. With
disposable cylinders, these heels, which
can measure up to 10 percent of the
quantity that was originally stored in
the container, would be released to the
atmosphere when the cylinder is
disposed of, unless the heel was
recovered prior to disposal. In addition,
disposable cylinders may be disposed
with greater amounts of HFCs than a
typical heel in the cylinder particularly
if the technician has limited space to
carry partially full cylinders. This
differs from a refillable cylinder, since
such cylinders can be refilled whereas
the design of disposable cylinders
inherently means they cannot be
refilled. In the Analysis of the Economic
Impacts and Benefits of the Proposed
Rule draft TSD developed to support
this proposed rule, EPA considered a
typical range for the heel remaining in
disposable service cylinders of 2 to 6
percent while noting information that
suggests heels can be as high as 10
percent. This range is consistent with
previous theoretical and empirical
studies, as referenced in the draft TSD,
that have estimated the remaining heel
in disposable 30-pound cylinders to
usually range between 2 to 6 percent,
though this percent could vary
depending on the application in which
the cylinder is used as well as the
refrigerant contained in the cylinder. As
also reflected in the draft TSD, industry
estimates that disposable cylinders
contain a heel that is typically between
1 (∼3 percent) to 1.5 pounds (5 percent).
The lead assumption used by EPA to
assess the impacts of this proposal was
to assume the heels are approximately
1.25 pounds (∼4 percent) for a typical
disposable cylinder of 25–30 pounds.
EPA is concerned about the reduction
in the amounts of HFC that could be
available for reclaiming due to losses of
HFCs associated with current practices
of disposing single use, disposable
cylinders used in the servicing, repair,
or installation of refrigerant-containing
or fire suppression equipment.
Accordingly, proposing to require that

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

HFCs contained in disposable cylinders
must be recovered prior to the disposal
of cylinders will reduce HFC losses
from disposable cylinders. EPA is also
aware that as the HFC phasedown
continues, scarcity of virgin HFCs will
increase. HFCs recovered and reclaimed
(or recycled, in the case of recovered fire
suppressants) can be used for servicing,
repair, disposal, or installation of
equipment thus providing additional
options for increasing the amounts of
usable HFCs.
EPA is proposing a compliance date
of January 1, 2025, for requiring that
disposable cylinders be sent to a
reclaimer or fire suppressant recycler
and for the recovery of HFCs from
disposable cylinders, in part because
EPA understands that a viable
distribution chain for sending HFCs in
containers to reclaimers or fire
suppressant recyclers already exists.
This current distribution chain is
currently in place for refillable cylinders
and cylinders that are exclusively used
for the recovery of HFCs from
equipment, referred to as recovery
cylinders. This distribution chain could
just as effectively be used for sending
disposable cylinders containing
remaining HFCs to reclaimers or fire
suppressant recyclers, and to some
extent, already is in use for disposable
cylinders. Several reclaimers indicated
to EPA that their existing means for
transporting recovery cylinders can also
be used for disposable cylinders that
contain HFCs and that have been used
in the servicing, repair, or installation of
refrigerant-containing equipment or fire
suppression equipment. Further, some
reclaimers have also indicated that they
currently accept disposable cylinders to
remove and recover any remaining heels
left in the disposable cylinders.
HFCs that are recovered from
equipment during servicing, repair, or
disposal of equipment are recovered
into designated types of cylinders. Such
recovery cylinders are, in general,
uniquely identifiable (often, they are
painted gray and yellow). These
cylinders are sent to reclaimers or fire
suppressant recyclers after HFCs have
been recovered in the field from a piece
of equipment, either through a
distributer or wholesaler or directly
from a contractor to the reclaimer or fire
suppressant recycler. Refillable
cylinders may be sent to producers,
blenders, repackagers, reclaimers, and
fire suppressant recyclers, or other
entities for continued use. Therefore,
HFCs in recovery and refillable
cylinders are already transported from
the field to reclaimers through various
means, including with or without a
network of distributors that collects

PO 00000

Frm 00053

Fmt 4701

Sfmt 4702

72267

cylinders. For example, reclaimers,
wholesalers, or distributors may
maintain a fleet of refillable or recovery
cylinders and may use a deposit-based
system for technicians and contractors
to return the cylinders. EPA notes these
distribution chains for returning
cylinders to the entity responsible for
removing the remaining the heels are
already established and in use.
Contractors and technicians can make
use of the existing channels they may
already be using to send disposable
cylinders to reclaimers or fire
suppressant recyclers. Thus, the
proposed requirement with a
compliance date of January 1, 2025, that
disposable cylinders with remaining
heels be sent to a reclaimer or fire
suppressant recycler is feasible.
As stated previously, every cylinder,
whether disposable or refillable, still
retains a residual amount of its contents,
(e.g., heel) even when it is considered
empty for purposes of servicing, repair,
or installation of equipment, and some
cylinders may contain more than a heel
if not all the contents are used.
Removing this heel requires the use of
recovery equipment, like that used to
recover refrigerant from an appliance.
Unfortunately, it currently is not
common practice to remove the heel
from disposable cylinders before they
are ultimately disposed. Current
practices for disposal of disposable
cylinders are to prevent refilling a
disposable cylinder and include
puncturing the rupture disk or breaking
off the shutoff valve,116 since they are
not designed to have material re-enter
them. The disposal practice also
demonstrates that the cylinder no longer
contains any remaining heel, as any heel
that had been in the cylinder would be
released through these disposal
practices. If the practice of puncturing
the rupture disk or breaking off the
shutoff valve has not been performed,
HFCs in disposable cylinders could be
released to the atmosphere during the
disposal of the cylinder, and ultimately
any remaining HFCs are released if the
cylinder is crushed for scrap metal
recycling. Even if the cylinder is not
used for scrap metal recycling,
disposable cylinders that are disposed
of in a landfill have the potential to
release any residual HFCs as the seal
can degrade over time.
EPA is proposing that the remaining
heel in containers that have been used
in the servicing, repair, or installation of
equipment would not be considered a
virgin regulated substance. As EPA
116 EPA also notes that other Federal regulations
expressly prohibit the transportation of DOT–39
cylinders if refilled (49 CFR 178.65).

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

72268

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

understands, some reclaimers who
currently recover heels or any remaining
residue from cylinders treat the returned
refrigerant as used recovered material
that could be contaminated and run the
heel through the reclamation process as
though it were returned in a recovery
cylinder. This practice ensures that the
heel is reprocessed, and the resulting
reclaimed HFC product meets the
correct standard. EPA notes that under
section IV.D.2. of this proposal,
reclaimed HFC refrigerants would be
limited to containing no more than 15
percent virgin HFCs, by weight. For the
purposes of maximizing the reclaiming
of HFCs, EPA does not intend for this
remaining heel to count as part of the 15
percent of virgin HFC refrigerant
allowed in reclaimed HFC refrigerant
because this would penalize reclaimers
that are recovering the heel from
cylinders.
EPA is also considering and seeking
comments on an alternative approach to
the proposal requiring that disposable
cylinders that contain HFCs and that
have been used in the servicing, repair,
or installation of refrigerant-containing
equipment or fire suppression
equipment be returned to an EPAcertified reclaimer or a fire suppressant
recycler. The alternative approach
would involve requiring the final
processor of a disposable cylinder to
ensure that all regulated substances,
including the remaining heel, have been
recovered prior to final disposition of
the cylinder. EPA currently has similar
provisions under 40 CFR 82.155 for
certain appliances, including
requirements that a final processor (e.g.,
scrap recyclers and landfill operators)
either recover any remaining refrigerant
from the appliance or receive a
verification statement that the
refrigerant in the disposed appliance
has previously been recovered. EPA is
also considering an approach that
would establish a requirement that
draws from both the lead proposal and
alternative approach. The distinguishing
feature would be to allow more than just
EPA-certified reclaimers to perform the
recovery (e.g., distributors and
wholesalers), while requiring all
recovered material be sent to an EPAcertified reclaimer. In addition,
82.155(a) states that persons recovering
refrigerant from certain appliances that
would be disposed are required to
evacuate refrigerant from the
appliances. In either case, refrigerant
must be evacuated from the appliance to
a specified level using recovery
equipment that meets applicable
standards. EPA would also consider
establishing recordkeeping provisions to

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

ensure that disposable cylinders that
contained HFCs have been evacuated
appropriately before final disposition
(e.g., landfill operator of scrap recycler).
EPA is seeking comment on all aspects
of this potential alternative approach.
For example, EPA would be interested
in comments related to the level of
vacuum needed or if recovery
equipment that meet specific standards
would be needed to ensure the
remaining amount of refrigerant in the
disposable cylinder is fully removed.
EPA has separately learned via a
petition for partial administrative
reconsideration of the Allocation
Framework Rule (see https://
www.regulations.gov/comment/EPAHQ-OAR-2021-0044-0229) and other
communication with one manufacturer
who has been developing a redesigned
disposable cylinder that, according to
the company, includes features meant to
prevent intentional venting and fugitive
emissions, provide visually identifiable
unique handle shapes, and
accommodate machine-readable
tracking identifiers (e.g., QR codes or
RFID chips). EPA has only limited
information on this newly designed
disposable cylinder prototype and seeks
any relevant information from
commenters on such newly designed
disposable cylinders, whether from that
manufacturer or other manufacturers.
EPA understands that the newlydesigned technology from the one
manufacturer is proprietary and is a
prototype that has not been
commercialized. EPA seeks comment on
whether this redesigned cylinder could
address heels of HFC remaining in the
cylinders upon disposal, which result in
emissions rather than being reclaimed.
Given that the language in subsection
(h) concerns both maximizing
reclaiming and minimizing the release
of regulated substances from equipment
and contemplates regulations to control
of practices, processes, or activities
regarding servicing, repair, disposal, or
installation of equipment, EPA is
seeking additional information about
the cylinder’s ability to consistently
deliver leak reductions during normal
use. The Agency is also seeking
additional information about when or if
this redesigned cylinder would be
commercially available. Further, EPA is
seeking information about whether this
redesigned cylinder could improve the
ability for the remaining heel to be
recovered before the cylinder is
disposed. Additionally, if commenters
have information about other cylinder
manufacturers meeting similar metrics,
EPA seeks similar information.
EPA requests comment on all aspects
of this proposal including the

PO 00000

Frm 00054

Fmt 4701

Sfmt 4702

requirement for disposable cylinders
that contain HFCs and that have been
used for the servicing, repair, or
installation of refrigerant-containing
equipment or fire suppression
equipment to be sent to reclaimers or
fire suppressant recyclers, respectively;
the timing for compliance; and the
amounts of regulated substances likely
to either remain in or be emitted from
discarded disposable cylinders absent
requirements for HFC removal. EPA is
requesting comment on the current
channels by which contractors or
technicians return cylinders containing
HFCs to reclaimers or fire suppressant
recyclers. EPA is also seeking comment
on the alternative approach which
involves the final processor ensuring
that all regulated substances, including
the remaining heel, have been recovered
prior to final disposition of the cylinder.
Further, EPA requests comment on the
consideration to establish a requirement
that draws from the lead proposal and
the alternative approach. EPA is
interested in comments of current
disposal practices for disposable
cylinders that involve the recovery of
the heel and the subsequent handling of
the recovered heel.
3. Container Tracking
EPA is proposing certain tracking
requirements for regulated substances
that are used in servicing, repair, or
installation of certain equipment. These
requirements are being proposed as part
of implementing subsection (h)(1) of the
AIM Act, as these provisions would
control practices, processes, or activities
regarding servicing, repair, or
installation of equipment, and would
involve a regulated substance or, in
some cases, the reclaiming of a
regulated substance used as a
refrigerant. More specifically, these
requirements would control practices,
processes, and activities regarding the
identification of regulated substances
that could be used for servicing, repair,
or installation of certain equipment, as
well as the tracking of reclaimed HFCs
in the supply chain. It is critical for
technicians and owners or operators of
equipment to know the identity of the
regulated substances that they are using
for servicing, repair, or installation of
equipment, so that they can ensure that
those regulated substances are
compatible with the specifications of
that equipment. For example, if
equipment has been designed for use
with non-flammable HFCs, it is
important that technicians and owners
or operators can confirm that the HFCs
they are using to service, repair, or
install the equipment is nonflammable.
As described above, regulated

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

substances are transported or stored
during various points in the supply
chain, particularly for applications
where the regulated substances are used
for the servicing, repair, or installation
of equipment that contain or will
contain the regulated substances. The
proposed tracking requirements would
allow the technicians to verify the
identity of regulated substances in a
container, and that it meets any
applicable regulatory requirements and
technical specifications, before they use
it for servicing, repair, or installation of
certain equipment. In addition,
understanding the movement of the
regulated substances through the supply
chain (both for virgin HFCs and for
HFCs that have been recycled (as it
relates to fire suppressants) and/or
reclaimed) is important to
understanding the ways they are used
and where additional opportunities for
recovery, reclamation, and/or recycling
(related to fire suppressants) exist.
Further, the ability to track regulated
substances in the supply chain would
allow the Agency to account for the
actual amount of regulated substances
used in equipment, verify adherence
with the requirements of the
regulations, and identify sectors,
subsectors, or places in the supply chain
where emissions occur. Tracking
movement of regulated substances,
including to reclaimers in certain
circumstances, supports the goal of
maximizing reclaiming of regulated
substances by providing information to
better identify challenges to increasing
reclamation. This information may also
be useful to better understanding points
in the supply chain where HFC releases
from equipment can be minimized in
the future, and thus further serve one of
the purposes stated in subsection (h)(1).
a. Container Tracking of Regulated
Substances
EPA is proposing that any container
(whether disposable or refillable) of
regulated substances that enters into
U.S. commerce and contains HFCs that
could be used in the servicing, repair, or
installation of refrigerant-containing
equipment or fire suppression
equipment must contain a machinereadable tracking identifier (e.g., QR
code, or another identifier(s)) that
contains relevant information, as
described in this section.
The proposed tracking requirements
for HFCs entering U.S. commerce that
could be used in the servicing, repair, or
installation of refrigerant-containing
equipment would allow for tracking the
movement of reclaimed HFCs and
ensure that reclaimed HFCs are used in
the subsectors in which requirements

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

regarding their use are being proposed.
These proposed requirements for
tracking would also apply to HFCs that
could be used in the servicing, repair,
and installation of fire suppression
equipment and would allow for the
tracking of recycled HFC fire
suppressants and ensure the use of
recycled HFCs for fire suppression
equipment to meet the proposed
requirements. As such, these proposed
tracking requirements have the added
benefit of supporting and facilitating
efforts to ensure compliance with the
proposed requirements for the use of
reclaimed or recycled HFCs, as
applicable, in certain RACHP subsectors
and the fire suppression sector. They
help to ensure that technicians and
owners or operators of equipment in
those sectors can easily determine
whether the HFCs that they are using for
servicing, repair, or installation of
refrigerant-containing equipment or fire
suppression equipment are reclaimed or
recycled, respectively, and otherwise
meet the proposed requirements. In that
way, these proposed requirements
would further serve the purpose
described in subsection (h)(1) of the
AIM Act to maximize the reclaiming of
regulated substances.
For tracking the movement of HFCs,
EPA is proposing to require the
generation of a machine-readable
tracking identifier (e.g., QR code or
another identifier) by importers,
producers and repackagers, reclaimers,
and fire suppressant recyclers. Tracking
HFCs through machine-readable
tracking identifiers would provide
information that helps support
compliance with requirements for the
use of reclaimed HFCs in certain
refrigerant-containing equipment, as
proposed in this action, such as whether
reclaimed HFCs are being used in
certain RACHP subsectors. The
machine-readable tracking identifiers
would provide information that would
more easily allow for the determination
of whether a given container of
reclaimed HFCs has met the proposed
standard in this action that no more
than 15 percent virgin HFCs are
contained in the reclaimed HFCs.
Further, the machine-readable tracking
identifiers would also support
compliance of the proposed
requirements for using recycled HFCs in
fire suppression equipment. The
machine-readable tracking identifier
must be affixed to containers of
regulated substances and include
certain data elements. When the
machine-readable tracking identifier is
scanned, it will point to a website with
a database that will indicate if the HFC

PO 00000

Frm 00055

Fmt 4701

Sfmt 4702

72269

in the container meets regulatory
requirements, and provide certain data
elements, for example, the quantity and
common name of the HFC or HFC
blend, the name it is currently being
marketed under (e.g., trade name or
brand), and the date the container was
filled. A discussion of the information
that would be required is provided in
this section of the preamble and a
discussion of how the data would be
treated as confidential or not is
described in section V. of this preamble.
EPA is proposing that in the case where
a machine-readable tracking identifier
affixed to a container is damaged or
otherwise unreadable, this would be the
same as not having a machine-readable
tracking identifier at all, which would
be a violation of the proposed
requirements.
EPA is proposing that the tracking
information must be updated each time
the regulated substances that could be
used in the servicing, repair, or
installation of refrigerant-containing
equipment or fire suppression
equipment are bought/sold or portioned
into another container. For example,
when regulated substances in larger
containers are downpacked to smaller
containers, the tracking information
would need to be updated. Tracking
information would also be required to
be updated when the regulated
substances in containers are bought or
sold up to the point of sale to the final
customer of the regulated substance
(e.g., a contractor who purchases
regulated substances for their use in the
servicing, repair, or installation of
equipment). EPA is proposing that, as
the regulated substances move in the
supply chain, the person selling the
regulated substances must scan the
machine-readable tracking identifier as
the container is sold and update the
tracking information, and the person
buying the container of regulated
substances would need to do the same.
For example, EPA is proposing that a
person selling a container of regulated
substances would need to identify the
person receiving the container and
indicate if that person is a supplier or
a final customer in the tracking system.
This would document the chain of
custody as the regulated substance
moves through the supply chain. For
both disposable and refillable cylinders
that contain regulated substances that
could be used in the servicing, repair, or
installation of refrigerant-containing
equipment or fire suppression
equipment, EPA is proposing certain
requirements for tracking the movement
of the cylinder after it is used (as
described in section IV.F.3.).

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

72270

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

EPA is proposing to require any
person who produces, imports,
reclaims, recycles for fire suppression
uses, repackages, or fills into a container
regulated substances, reclaimed
regulated substances, or recycled
regulated substances that could be used
in the servicing, repair, or installation of
refrigerant-containing equipment or fire
suppression equipment must register
with EPA in the tracking system no later
than the first time they would be
required to generate a machine-readable
tracking identifier. EPA notes that for
those entities that may wish to register
in advance of the required date to
generate a machine-readable tracking
identifier, registration in the tracking
system would be available 30 or 60 days
prior to the applicable compliance date
(e.g., as early as November 1, 2024, for
producers and importers). Likewise,
EPA is proposing to require that any
person who purchases, sells, distributes,
or offers for sale or distribution,
regulated substances that could be used
in the servicing, repair, or installation of
refrigerant-containing equipment or fire
suppression equipment must register
with EPA in the tracking system no later
than the first time the person would be
required to update tracking information
in the system. EPA notes that for those
persons involved in the purchase, sale,
or distribution or offering for sale or
distribution of regulated substances who
wish to register earlier may do so. To
support the effective implementation of
the tracking system, EPA intends to
offer various opportunities for training
potential users through webinars, fact
sheets, and other guidance materials
prior to the earliest required compliance
dates.
Additional detail on requirements for
registering in the tracking system can be
found in § 84.118 of the proposed
regulatory text. To support this
provision, EPA is prohibiting any
person from purchasing or receiving, or
attempting to purchase or receive
regulated substances that could be used
in the servicing, repair, or installation of
refrigerant-containing equipment or fire
suppression equipment from someone
that is not registered with EPA.
Nevertheless, EPA is proposing that this
prohibition would not apply to a person
purchasing or receiving, or attempting
to purchase or receive regulated
substances only for uses that are not
related to refrigerant-containing
equipment or fire suppression
equipment (e.g. foams, aerosol
propellants). EPA notes that for larger
containers that contain regulated
substances that may be used in multiple
sectors, the Agency is proposing to

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

require those containers would be
subject to the proposed prohibition if
any regulated substances in the
container could be used for refrigerantcontaining equipment or fire
suppression equipment in order to
ensure that those regulated substances
are accurately accounted for. As EPA
understands the supply chain, HFCs
may change hands one or more times
before it is purchased by the final entity
in the distribution chain and
subsequently sold to the final customer.
As the HFCs move through the supply
chain to the final customer, sellers/
distributors would need to scan the
containers as they are sold and update
the information as needed, and buyers
who intend to purchase/receive the
HFCs, other than the final customer,
would need to do the same.
For importers, EPA is proposing that
the following information be included
in the tracking system for the generation
of a machine-readable tracking identifier
for regulated substances that could be
used in servicing, repair, or installation
of equipment:
• The name or brand the regulated
substance is being sold and/or marketed
under;
• The date it was imported;
• The size of the container(s);
• The entry number and entry line
number associated with the import;
• 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
container match the substance(s)
identified on the label.
For producers and repackagers of
regulated substances, EPA is proposing
that certain information must be
included in the tracking system for the
generation of a machine-readable
tracking identifier for regulated
substances that could be used in
servicing, repair, or installation of
equipment. This information would be
required to be included whether a
container is filled for the first time after
production or when transferring
regulated substances from one container
to one or more smaller or larger
containers. EPA is proposing the
following information must be included
when generating the machine-readable
tracking identifier:
• The name or brand the regulated
substance is being sold and/or marketed
under;

PO 00000

Frm 00056

Fmt 4701

Sfmt 4702

• The date the container was filled
and by whom;
• 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;
• The name, address, contact person,
email address, and phone number of the
responsible party at the facility where
the container(s) were filled; and
• Certification that the contents of the
container match the substance(s)
identified on the label.
EPA is proposing that any person
filling a container with reclaimed HFC
refrigerants that could be used in
servicing, repair, or installation of
equipment include certain information
in the tracking system for the generation
of the machine-readable tracking
identifier. This information would
include the following:
• The name or brand the regulated
substance is being sold and/or marketed
under;
• When the HFC 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 size of the containers;
• The amount and name of the
regulated substance(s) in the container;
• The amount of virgin regulated
substance(s) in the container, if any, and
that the contents of the container are
certified per § 84.112(d) of the proposed
regulatory text;
• Reclaimer certification that the
purity of the batch was confirmed to
meet the specifications in appendix A to
40 CFR part 82, subpart F; and
• Certification that the contents of the
container match the substance(s)
identified on the label.
EPA is proposing that any person
filling a container with recycled
regulated substances that could be used
for servicing or installing fire
suppression equipment, including for
example fire suppressant recyclers,
include certain information in the
tracking system for the generation of the
machine-readable tracking identifier.
This information would include the
following:
• The name or brand the regulated
substance is being sold and/or marketed
under;
• The date the container was filled
and by whom;
• The size of the containers;
• The unique serial number
associated with the container;
• The amount and name of the
regulated substance(s) in the container;

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
• The amount of virgin regulated
substance(s) in the container, if any; and
• Certification that the contents of the
container match the substance(s)
identified on the label.
EPA is proposing a schedule for those
required to generate a machine-readable
tracking identifier and affix to
containers to support the effective
implementation of the tracking
provisions in this proposal. As of
January 1, 2025, EPA would require
machine-readable tracking identifiers on
all containers of HFCs that could be
used in servicing, repair, or installation
of refrigerant-containing equipment or
fire suppression equipment that are
imported, sold or distributed, or offered
for sale or distribution by producers and
importers. As of January 1, 2026, EPA
would require machine-readable
tracking identifiers on all containers of
HFCs that could be used in the
servicing, repair, or installation of
refrigerant-containing equipment or fire
suppression equipment that are filled,
sold or distributed, or offered for sale or
distribution, by all other repackagers
and cylinder fillers in the United States,
including reclaimers and fire
suppressant recyclers. As of January 1,
2027, EPA would require a machinereadable tracking identifier on every
container of HFCs that could be used in
servicing, repair, or installation of
refrigerant-containing equipment or fire
suppression equipment that are sold or
distributed, offered for sale or
distribution, purchased or received, or
attempted to be purchased or received.
EPA understands that effectively
implementing the tracking system in
industry will require logistical
adaptation and technological
investment. Thus, EPA is proposing a
phased-in approach for the tracking
requirements would support
implementation and provide additional
time after the final rule is published for
industry to adjust to the proposed
requirements when they are fully
implemented. Under this phased-in
approach, the Agency would have more
time to consult industry and develop an
appropriate tracking system. Similarly,
industry would have more time to adapt
existing systems and/or procure any
technology needed to support the
tracking system and train staff. Further,
this tracking system would have the
additional advantage of supporting the
proposed requirements for the use of
reclaimed HFCs. It would provide an
easy means for an entity to identify
reclaimed HFCs and thus helps support
compliance with those aspects of this
proposal. For example, the tracking
system would help ensure reclaimed
HFCs are being used consistent with the

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

proposed requirements in section IV.D.
of this action. EPA notes that the
Agency could consider making the
tracking system available for use on a
voluntary basis ahead of the applicable
compliance dates for different types of
users.
EPA is requesting comment on all
aspects of this proposal. In particular,
EPA is requesting comment on the
proposed requirements for the tracking
system related to the timing of the
requirements. EPA is seeking comment
on the phased-in approach to apply the
requirements for effective
implementation of the proposed
provisions. EPA is also seeking
comment on the time needed by
industry for particular technological or
logistical changes to effectively
implement the tracking system
requirements in this proposal.
b. Container Tracking of Used Cylinders
EPA is proposing specific
requirements for the tracking of
cylinders that contain HFCs and that
have been used for the servicing, repair,
or installation of refrigerant-containing
equipment or fire suppression
equipment. As noted in section IV.F.2.,
after cylinders (both disposable and
refillable) containing regulated
substances have been used in these
practices, processes, and activities, they
still have a remaining portion of
regulated substances (i.e., the heel).
Tracking these cylinders that contain a
heel serves the purpose identified in
subsection (h)(1) of maximizing reclaim.
Further, subsection (h)(2)(A) of the AIM
Act provides that EPA consider its
authority for increasing opportunities
for reclaiming of regulated substances.
Requiring tracking of the remaining heel
in cylinders would ensure that the heel
could be recovered and promote
additional reclaim.
As proposed in section IV.F.2., EPA
would require that disposable cylinders
that contain HFCs and that have been
used in the servicing, repair, or
installation of refrigerant-containing
equipment or fire suppression
equipment be required to be returned to
a reclaimer or fire suppressant recycler
so that the remaining regulated
substances, including heels, can be
recovered. EPA is proposing that after a
disposable cylinder is used in the
servicing, repair, or installation of such
equipment, it would be required to be
tracked until it reaches an EPA-certified
reclaimer or a fire suppressant recycler.
As EPA understands and describes
above, technicians and contractors (for
refrigerant-containing equipment or fire
suppression equipment) currently have
channels for returning recovery

PO 00000

Frm 00057

Fmt 4701

Sfmt 4702

72271

cylinders. EPA anticipates that
technicians and contractors would be
able to use these same channels for
returning disposable cylinders to
reclaimers or fire suppressant recyclers.
In some cases, there may be a direct
connection between technicians or
contractors to reclaimers or fire
suppression recyclers and there is no
intermediary step to returning a
cylinder. In this case, the only tracking
step required would be by the reclaimer
or fire suppressant recycler, who would
be registered in the tracking system.
EPA is proposing that when a reclaimer
or fire suppressant recycler receives a
disposable cylinder with a remaining
heel, they would be required to scan the
machine-readable tracking identifier
that was already affixed on the
disposable cylinder and update the
following information to confirm
receipt:
• The date that the disposable
cylinder was received; and
• The name, address, contact person,
email address, and phone number of the
person who sent the disposable
cylinder.
EPA is proposing that when the
reclaimer or fire suppressant recycler
removes the remaining regulated
substances from the disposable cylinder,
they would be required to enter in the
tracking system the following data
elements:
• The date that the regulated
substances were removed from the
disposable cylinder;
• Certification that all remaining
regulated substances were removed;
• The amount and the name of the
recovered regulated substance(s).
In other cases, technicians or
contractors may return cylinders to a
distributor or wholesaler who collects
cylinders and then sends them to a
reclaimer or fire suppressant recycler. In
this case, there would be an additional
tracking step required by the wholesaler
or distributor, who would already be
registered in the tracking system. EPA is
proposing to require that the distributor
or wholesaler collecting the disposable
cylinders scan the affixed machinereadable tracking identifier when they
receive it. The wholesaler or distributor
would be required to enter in the
tracking system the following
information:
• The date that the disposable
cylinder was received; and
• The name, address, contact person,
email address, and phone number of the
person who sent the disposable
cylinder.
EPA is proposing to require that when
a reclaimer or fire suppressant recycler
receives a disposable cylinder with a

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

72272

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

remaining heel from a distributor or
wholesaler, they would be required to
scan the machine-readable tracking
identifier and update information in the
tracking system. The proposed
requirements for reclaimers and fire
suppressant recyclers to update
information in the tracking system are
the same as would be required if the
reclaimer or fire suppressant recycler
were to receive the disposable cylinder
directly from a technician or contractor.
EPA is proposing that the tracking of
disposable cylinders to reclaimers or
fire suppressant recyclers would be
required as of January 1, 2026. This date
aligns with the proposed requirement
for reclaimers and fire suppressant
recyclers to track containers they fill,
sell, or distribute, or offer for sale or
distribution with regulated substances
that could be used in the servicing,
repair, or installation of refrigerantcontaining equipment or fire
suppression equipment. Thus, they
would be registered in the tracking
system already and could scan and
update information as they receive
disposable cylinders. This proposed
date would also require distributors and
wholesalers who receive returned
disposable cylinders to be registered in
the tracking system. For those
distributors and wholesalers that would
be receiving disposable cylinders, EPA
is proposing that they would be
required to register in the tracking
system the first time they would need to
access the system to update tracking
information.
EPA is proposing to include
additional requirements for the tracking
of refillable cylinders that contain HFCs
and that have been used in the
servicing, repair, or installation of
refrigerant-containing equipment or fire
suppression equipment. By nature, EPA
expects that refillable cylinders would
be involved with a return trip after they
are used and have only a heel
remaining. As EPA understands, fleets
of refillable cylinders may be
maintained by those who would
frequently fill and refill them. For
example, some producers, blenders,
repackagers, and reclaimers may
maintain a fleet of refillable cylinders.
In some cases, these entities may even
operate a system to track or otherwise
maintain their own inventory of
refillable cylinders. Refillable cylinders
differ from disposable in a number of
ways, notably as it relates to how the
remaining regulated substances are
handled after the refillable cylinder has
been used and a heel remains. The
remaining heel in a refillable cylinder
can either be recovered, or additional
HFC could be added to the refillable

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

cylinder if it is the same chemical or
blend. EPA understands this practice is
common especially for larger cylinders,
such as ISO tanks and rail cars.
EPA is proposing certain
requirements for tracking the return of
refillable cylinders that have been used
in the servicing, repair, or installation of
refrigerant-containing equipment or fire
suppression equipment. Contractors or
technicians who are using the refillable
cylinders for the servicing, repair, or
installation of refrigerant-containing
equipment or fire suppression
equipment could return refillable
cylinders to a distributor or wholesaler
or they could return refillable cylinders
directly to a cylinder owner (e.g.,
reclaimer, blender). In either case, EPA
is proposing similar tracking
requirements as those for the tracking of
the return of a disposable cylinder.
EPA is proposing that reclaimers or
fire suppressant recyclers would be
required to enter the following
information in the tracking system when
they receive a refillable cylinder that
contains HFCs and that has been used
in the servicing, repair, or installation of
refrigerant-containing equipment or fire
suppression equipment:
• The date that the refillable cylinder
was received;
• The name, address, contact person,
email address, and phone number of the
person who sent the refillable cylinder.
EPA is proposing that when the
reclaimer or fire suppressant recycler
removes the remaining regulated
substances from the refillable cylinder,
they would be required to enter in the
tracking system the following data
elements:
• The date that the regulated
substances were removed from the
refillable cylinder;
• Certification that all remaining
regulated substances were removed; and
• The amount and name of the
recovered regulated substance(s).
In the case that a refillable cylinder is
first sent to a distributor or wholesaler,
EPA is proposing that the wholesaler or
distributor enter the following
information to the tracking system upon
receipt of the refillable cylinder:
• The date that the refillable cylinder
was received; and
• The name, address, contact person,
email address, and phone number of the
person who sent the refillable cylinder.
In the case where a refillable cylinder
is sent to a person, other than an EPAcertified reclaimer or a fire suppressant
recycler, capable of refilling it with
additional HFCs or blend containing
HFCs, the person filling the container
would be required to enter the following

PO 00000

Frm 00058

Fmt 4701

Sfmt 4702

data elements in the tracking system
upon receipt of the refillable cylinder:
• The date that the refillable cylinder
was received; and
• The name, address, contact person,
email address, and phone number of the
person who sent the refillable cylinder.
EPA is proposing that when the
person, other than an EPA-certified
reclaimer or a fire suppressant recycler,
who received the refillable cylinder
removes any remaining regulated
substances from the refillable cylinder
or refills the refillable cylinder, that
person must scan the machine-readable
tracking identifier and update the
following information in the tracking
system:
• The date the remaining regulated
substance was removed or the date the
refillable was refilled; and
• The amount and name of the
remaining regulated substance(s)
removed from the refillable cylinder or
the amount and name of the regulated
substance(s) remaining in the refillable
cylinder before it is refilled.
EPA is proposing similar timing
requirements for the tracking of
refillable cylinders as they are returned
to the cylinder owners (e.g., producers,
reclaimers, fire suppressant recyclers).
The tracking of refillable cylinders as
they are returned to cylinder owners
would be required as of January 1, 2026.
Again, this date aligns with the
proposed requirement for reclaimers
and fire suppressant recyclers to track of
containers they fill, sell, or distribute, or
offered for sale or distribution with
regulated substances that could be used
in the servicing, repair, or installation of
refrigerant-containing equipment or fire
suppression equipment. Any producers
who would be involved with tracking
steps associated with the return of
refillable cylinders would have already
had experience in the tracking system
for a full year. For those distributors and
wholesalers that would be receiving
refillable cylinders, EPA is proposing
that they would be required to register
in the tracking system the first time they
would need to access the system to
update tracking information.
EPA is considering requirements
associated with the tracking of cylinders
that are used for the purpose of
recovering regulated substances (i.e.,
recovery cylinders) from refrigerantcontaining equipment or fire
suppression equipment. As described
above, these recovery cylinders are only
intended for the recovery of refrigerants
or fire suppressants from equipment for
the intention of sending the material to
a reclaimer or fire suppressant recycler.
As noted, fleets of recovery cylinders
may be owned by reclaimers or

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

wholesalers or distributors who
maintain them using a deposit-based
system for the return of the cylinders.
Contractors and technicians would pay
a deposit and obtain the recovery
cylinders from these entities and have
the deposit returned when the cylinder
is returned. In this case, EPA is
considering and requesting comment on
whether to establish tracking
requirements for the entities that
maintain the fleet of recovery cylinders.
Such requirements would allow EPA
the ability to track the amount of
material that is recovered from
equipment and how that material moves
in the supply chain until it reaches a
reclaimer or fire suppressant recycler.
EPA is also interested in the tracking of
recovery cylinders as it would provide
additional information on the HFCs that
are recovered from equipment that is
being serviced, repaired, or disposed of,
and their movement in the market and
supply chain, and on practices,
processes, or activities associated with
the servicing, repair, or disposal of
equipment. EPA is requesting comment
on these topics, as well as additional
information on how recovery cylinders
are maintained in practice. For example,
EPA is seeking information regarding
whether contractors or technicians are
owners of recovery cylinders and how
they return them to reclaimers or fire
suppressant recyclers.
EPA is seeking comment on all
aspects of this proposal. Specifically,
EPA is seeking comment on the timing
for requirements to track containers
(both disposable and refillable) that
contain HFCs and that have been used
in the servicing, repair, or installation of
equipment. EPA is also seeking
additional information on the overall
movement of cylinders (disposable,
refillable, or recovery) in the supply
chain as they are returned to an entity
to recover the regulated substances (or
refill the container, if it is a refillable
cylinder).
4. Small Cans of Refrigerant
Small cans of refrigerant, that
typically contain 2 pounds or less of
regulated substances, are commonly
used by individuals to service their own
MVACs. This do-it-yourself (DIY)
servicing practice is unique to the
MVAC subsector within the RACHP
sector. In the 2016 CAA section 608
Rule (81 FR 82272, November 18, 2016),
EPA finalized an exemption from the
sales restriction at 40 CFR 82.154(c) for
small cans of MVAC refrigerant with
self-sealing valves. EPA is not proposing
to include requirements for small cans
of refrigerant with self-sealing valves
(i.e., those that qualify for exemption

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

from the sales restriction under 40 CFR
82.154(c)(ix)) to be sent to a reclaimer
after use or to include such small cans
in the proposed container tracking
requirements. As noted, they are
typically used only by DIYers in the
servicing of their own MVACs and
contain no more than 2 pounds of
regulated substances. Another
distinguishing factor is the distribution
chain for small cans, which are
commonly sold directly to DIYers by
retailers. Accordingly, EPA concludes it
is not necessary to require that small
cans of refrigerant (i.e., those meeting
the 608 requirements) be sent to a
reclaimer after use or to include small
cans in the proposed container tracking
system to serve the regulatory goals, as
described throughout section IV.F.
above.
EPA welcomes comment on all
aspects of this proposal. In particular,
EPA seeks comments on its proposal to
not include requirements for small cans
of refrigerant to be returned to a
reclaimer after use and to not include
them in the proposed container tracking
system in this rulemaking. In particular,
EPA is interested in comments related
to this provision as it relates to the
regulatory purpose of maximizing
reclaiming of regulated substances and
also reducing the potential emissions of
regulated substances.
G. How is EPA proposing to establish
RCRA refrigerant recycling alternative
standards?
1. Nomenclature Used in This Section
This section uses the term ‘‘ignitable
spent refrigerant’’ to describe the
refrigerants that are potentially subject
to RCRA hazardous waste regulation
under the current rules, and that would
instead be subject to the proposed RCRA
alternative standards for refrigerants
when recycled for reuse, if these
standards are finalized. ‘‘Ignitability’’ is
one of the RCRA hazardous waste
characteristics and is used to identify
waste that may pose a risk to human
health and the environment due to their
potential to cause fires if improperly
managed.117 The characteristic of
ignitability is defined in 40 CFR 261.21.
As discussed in more detail below in
this section, ‘‘ignitable’’ is similar, but
not identical, to the term ‘‘flammable’’
as used in ASHRAE Standard 34–2022.
‘‘Spent’’ is used in the same context as
‘‘spent material,’’ which is defined in 40
CFR 261.1(c)(1) as ‘‘any material that
117 EPA 1980, Background Document for the
Hazardous Waste Characteristic of Ignitability, May
2, 1980, p.7 https://www.epa.gov/hw/backgrounddocument-hazardous-waste-characteristicignitability.

PO 00000

Frm 00059

Fmt 4701

Sfmt 4702

72273

has been used and as a result of
contamination can no longer serve the
purpose for which it was produced
without processing.’’ Thus, an
‘‘ignitable spent refrigerant’’ is a used
refrigerant that cannot be reused
without first being cleaned, and that
exhibits the hazardous characteristic of
ignitability per 40 CFR 261.21.
In addition, the terms ‘‘reclaim’’ and
‘‘recycle’’ have different regulatory
purposes and definitions under RCRA
than under the CAA and the AIM Act.
Under RCRA, a material is ‘‘reclaimed’’
if it is processed to recover a usable
product, or if it is regenerated. Examples
are recovery of lead values from spent
batteries and regeneration of spent
solvents (See 40 CFR 261.1(c)(4)).
Reclamation is one of the four types of
‘‘recycling’’ identified in 40 CFR
261.2(c) that can involve management of
a solid waste under RCRA. Materials
that are solid waste under RCRA are
potentially subject to RCRA hazardous
waste requirements.
In contrast, under title VI of the CAA
and its implementing regulations,
‘‘reclaim’’ is a more precise term,
requiring the reclaimed refrigerant to
meet regulatory specifications based on
AHRI Standard 700–2016, while
‘‘recycle’’ means to extract refrigerant
from an appliance and clean it for reuse
in equipment of the same owner
without meeting all of the CAA
requirements for reclamation. See those
definitions in 40 CFR 82.152. Similarly,
under the AIM Act, ‘‘reclaim;
reclamation’’ are defined in subsection
(b)(9) of the Act, and that definition
refers to the purity standards under
AHRI Standard 700–2016 (or an
appropriate successor standard adopted
by the Administrator) and the
verification of purity using, at a
minimum, the analytical methodology
described in that standard. ‘‘Recycle’’ is
not defined in the AIM Act.
To avoid confusion when discussing
what regulatory requirements would
apply to ignitable spent refrigerant, for
the purposes of the proposed RCRA
alternative standards, EPA is using the
term ‘‘recycle for reuse’’ as defined at 40
CFR 266.601 to mean to process an
ignitable spent refrigerant to remove
contamination and prepare it to be used
again. This umbrella term includes
reclaiming ignitable spent refrigerants as
defined in the context of the RCRA
regulations at 40 CFR 261.1(c), and
either reclaiming or recycling
refrigerants as defined in 40 CFR 82.152.
‘‘Recycle for reuse’’ would not include
recycling that involves burning for
energy recovery or use in a manner
constituting disposal (use in or on the
land) as defined in 40 CFR 261.2(c), or

E:\FR\FM\19OCP2.SGM

19OCP2

72274

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

sham recycling as defined in 40 CFR
261.2(g).

lotter on DSK11XQN23PROD with PROPOSALS2

2. Background
On February 13, 1991, EPA
promulgated an interim final rule
excluding spent chlorofluorocarbon
(CFC) refrigerants from the definition of
hazardous waste under RCRA when
recycled for reuse (56 FR 5910). EPA
was concerned that subjecting used CFC
refrigerants to RCRA hazardous waste
regulations would result in increased
venting of these refrigerants, resulting in
increased levels of ODS in the
stratosphere. As described above in
section III.C., EPA promulgated a series
of rules implementing provisions under
CAA title VI to phase out class I and
class II ODS, including CFCs used as
refrigerants, and establishing standards
applicable to the use, disposal, and
recycling of ODS refrigerants and their
substitutes.
Some of these acceptable substitutes
are flammable and likely to exhibit the
hazardous waste characteristic of
ignitability found in 40 CFR 261.21.118
As described in section IV.C.4.,
ASHRAE Standard 34–2022 assigns a
safety group classification for each
refrigerant which consists of two
alphanumeric characters (e.g., A2 or
B1). The capital letter indicates the
toxicity class (‘‘A’’ for lower toxicity)
and the numeral denotes the
flammability. ASHRAE recognizes three
classifications and one subclass for
refrigerant flammability. The three main
flammability classifications are Class 1,
for refrigerants that do not propagate a
flame when tested as per the ASHRAE
34 standard, ‘‘Designation and Safety
Classification of Refrigerants;’’ Class 2,
for refrigerants of lower flammability;
and Class 3, for highly flammable
refrigerants, such as the hydrocarbon
refrigerants. ASHRAE recently updated
the safety classification matrix to
include a new flammability subclass 2L,
for flammability Class 2 refrigerants that
burn very slowly.119 Since 2010, EPA’s
118 ‘‘Flammability’’ as identified by the ASHRAE
standards and ‘‘ignitability’’ as identified by the
RCRA 40 CFR 261.21 standard are both intended to
capture the potential for a substance to cause fires.
However, since the methodology used under these
two systems differs, EPA is using ‘‘flammability’’
when describing the ASHRAE standard and
‘‘ignitability’’ when describing wastes that are
regulated under RCRA when they meet the ignitable
characteristic in § 261.21 and therefore are subject
to hazardous waste management requirements. In
general, a flammable substance would be presumed
to be also ignitable under RCRA unless testing were
to demonstrate otherwise.
119 ASHRAE Fact Sheet Update on New
Refrigerants Designations and Safety Classification
November 2022. https://www.ashrae.org/
file%20library/technical%20resources/bookstore/
factsheet_ashrae_english_november2022.pdf.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

SNAP program has listed a number of
flammable substitute refrigerants that
have ASHRAE safety classifications of
A3 (higher flammability, lower toxicity
refrigerants such as propane or
isobutane) or A2L (lower flammability,
lower toxicity refrigerants such as HFC–
32 or HFO–1234yf).
The standard for flammability under
ASHRAE 34 does not correspond
precisely with the RCRA standards for
ignitability found in 40 CFR 261.21, but
in general, refrigerants with a
flammability Class of 2 or 3 are expected
to be ignitable under RCRA. Spent
refrigerants with a flammability class of
2L may or may not be ignitable
hazardous waste, depending on the
specific chemical(s) used in the
refrigerant and contamination of the
refrigerant during use. Note that even
refrigerants that do not exhibit the
characteristic of ignitability as a virgin
material could become ignitable with
use, especially if contaminated with oil
or other lubricants, posing a risk of fire
if mismanaged.120 Similarly, the flash
point of a refrigerant that is a blend of
two or more chemicals can change if
there is a leak during operation or
during recovery and storage, when the
refrigerant from multiple appliances is
combined, or if the recovery process is
incomplete, potentially changing the
hazardous waste characteristic of the
spent refrigerant when collected.
However, these ignitable spent
refrigerant substitutes do not fall under
the 40 CFR 261.4(b)(12) RCRA exclusion
for refrigerants, since that exclusion is
limited to CFC refrigerants.121 The
applicability of RCRA to flammable
refrigerants is discussed in the 2016
SNAP final rule. (81 FR at 86799–86800,
December 1, 2016). Consistent with that
discussion, EPA considers incidental
releases of spent refrigerant that occur
during the maintenance, service, and
repair of appliances subject to CAA
section 608 (which would include
venting from appliances of refrigerants
that are exempt from the venting
prohibition under 40 CFR 82.154(a)),
and releases resulting from the disposal
of household appliances both generally
not to be considered disposal of a
hazardous waste under RCRA. However,
ignitable spent refrigerant from
commercial and industrial appliances
(i.e., non-household appliances) would
be classified as hazardous waste and
120 S N Kopylov et al 2019 IOP Conf. Ser.: Earth
Environ. Sci. 272 022064; https://iopscience.
iop.org/article/10.1088/1755-1315/272/2/022064.
121 EPA is not reopening the original CFC
refrigerant recycling exclusion and is not requesting
comment on 40 CFR 261.4(b)(12). Any comments
received on the CFC refrigerant recycling exclusion
will be considered out of scope of this rulemaking.

PO 00000

Frm 00060

Fmt 4701

Sfmt 4702

would need to be managed under the
applicable RCRA regulations (40 CFR
parts 260 through 270) when recovered
(i.e., removed from an appliance and
stored in an external container) or
disposed of (e.g., vented from a
container after recovery). These
requirements would include generator
notification and on-site accumulation
standards, emergency preparedness and
other requirements, hazardous waste
manifest and transportation
requirements for the ignitable spent
refrigerant, and RCRA permit
requirements for refrigerant recyclers
that store the refrigerant prior to
recycling.
3. Proposed Alternative RCRA
Standards for Spent Ignitable
Refrigerants Being Recycled for Reuse
Similar to EPA’s concerns expressed
in the 1991 rulemaking establishing the
CFC refrigerant recycling exclusion,
EPA is concerned that applying RCRA
hazardous waste requirements to the
substitute refrigerants that exhibit the
hazardous characteristic of ignitibility
would discourage recycling and could
result in an increase in releases of
ignitable refrigerants, including HFC
ignitable refrigerants, contrary to the
goals of RCRA and to one of the
purposes of regulations under
subsection (h)(1) of the AIM Act, which
is to minimize releases of HFCs from
equipment. Moreover, inadvertently
incentivizing releases of refrigerants
would be contrary to RCRA section
3004(n), which requires EPA to control
air emissions from hazardous waste
management, as may be necessary to
protect human health and the
environment. Finally, the current
requirements for recovery of refrigerants
under the CAA section 608 rules help
ensure that the ignitable spent
refrigerants are legitimately recycled for
reuse, and also address the flammability
risks posed by ignitable spent
refrigerants.
For the reasons stated above, EPA is
proposing to add standards under 40
CFR part 266, subpart Q applicable to
certain ignitable spent refrigerants that
are recycled for reuse that would apply
instead of the full RCRA Subtitle C
hazardous waste requirements. The
purpose of these standards is to help
reduce emissions of ignitable spent
refrigerants to the lowest achievable
level by maximizing the recapture and
safe recycling of such refrigerants
during the maintenance, service, repair,
and disposal of appliances.

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
a. Scope of the Proposed RCRA
Alternative Standards
EPA is proposing that the 40 CFR part
266, subpart Q RCRA alternative
standards would apply to HFCs and
substitutes that do not belong to
flammability Class 3. EPA is proposing
to limit the alternative standards to
lower flammability substitutes (Class 1,
2 and 2L) because of the lower risk of
fire from the collection and recycling for
reuse of these refrigerants, and the
greater market value of these
refrigerants, which supports the
conclusion that these spent refrigerants
will be recycled for reuse and not
stockpiled, mismanaged, or abandoned.
EPA has found that a low market value
for a reclaimed product can increase the
likelihood of mismanagement and
abandonment occurring during
hazardous waste recycling activities.122
In addition to this proposal, EPA is
also considering the option of
expanding the applicability of the RCRA
alternative standards to some or all A3
refrigerants. Broadening the
applicability of the exemption could
encourage the development of markets
for these other recycled refrigerants,
even if current markets are limited,
provided that they can be safely
recycled for reuse.
EPA requests comment on the scope
of the RCRA alternative standards,
including the option of expanding the
applicability of the RCRA alternative
standards to Class 3 refrigerants. In
addition, EPA requests comment on
which additional refrigerants should
qualify for the RCRA alternative
standards in the final rule, if EPA
determines such an expansion is
appropriate. EPA requests information
on the safety and economic feasibility of
recycling for reuse Class 2L, 2, and 3
refrigerants both under current and
projected future market conditions.

lotter on DSK11XQN23PROD with PROPOSALS2

b. Proposed Requirements for the RCRA
Alternative Standards
The specific standards EPA is
proposing for ignitable spent refrigerant
being recycled for reuse either on-site
for further use in equipment of the same
owner, or by the owner of the recovery
equipment in compliance with MVAC
standards in 40 CFR part 82, subpart B,
are (1) the ignitable spent refrigerants
that are recovered (i.e., removed from an
appliance and stored in an external
container) and/or recycled for reuse
122 U.S. EPA A Study of the Potential Effects of
Market Forces on the Management of Hazardous
Secondary Materials Intended for Recycling,
November 2006, available at https://
www.regulations.gov/document/EPA-1HQ-RCRA2002-0031-0358.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

using equipment that is certified for that
type of refrigerant under 40 CFR 82.36
or 40 CFR 82.158; and (2) the ignitable
spent refrigerants are not speculatively
accumulated as defined in 40 CFR
261.1(c).
The specific standards that EPA is
proposing for facilities receiving
refrigerant from off-site to be recycled
for reuse are (1) the reclaimer must
maintain certification by EPA under 40
CFR 82.164; (2) the facility must meet
the emergency preparedness and
response requirements of 40 CFR part
261 subpart M, and (3) the ignitable
spent refrigerants must not be
speculatively accumulated as defined in
40 CFR 261.1(c). EPA is proposing these
requirements be included as part of the
RCRA alternative standard in order to
ensure that the ignitable spent
refrigerant is legitimately recycled for
reuse in a way that is protective of
human health and the environment.
The proposed requirement that the
recovery and/or recycling equipment be
certified for that type of refrigerant and
appliance under 40 CFR 82.36 (for
MVAC systems) or 40 CFR 82.158 (for
on-site recycling) would specifically
address the ignitability hazard during
refrigerant recovery and recycling for
reuse at MVAC recycling operations in
compliance with 40 part 82 subpart B,
or for recycling on-site for reuse in
appliances by the same owner. In
particular, appendix B4 to subpart F of
40 CFR part 82—Performance and
Safety of Flammable Refrigerant
Recovery and/or Recycling Equipment
requires all recovery and/or recycling
equipment to be tested to meet
standards for the test apparatus, test gas
mixtures, sampling procedures,
analytical techniques, and equipment
construction that will be used to
determine the performance and safety of
refrigerant recovery.
The proposed requirement that the
spent refrigerant regulated under the
new alternative standards not be
speculatively accumulated per 40 CFR
261.1(c) would help prevent overaccumulation, mismanagement, and
abandonment of the spent refrigerant.
Restrictions on speculative
accumulation have been an important
element of the RCRA hazardous waste
recycling regulations since they were
originally promulgated on January 4,
1985 (50 FR 634–637). According to this
regulatory provision, hazardous
secondary materials as defined in 40
CFR 260.10 (which would include
ignitable spent refrigerants) are
accumulated speculatively if the person
accumulating them cannot demonstrate
that the material is potentially
recyclable. Further, the person

PO 00000

Frm 00061

Fmt 4701

Sfmt 4702

72275

accumulating the hazardous secondary
material must demonstrate that during a
calendar year (beginning January 1) the
amount of such material that is recycled
or transferred to a different site for
recycling is at least 75% by weight or
volume of the amount of the hazardous
secondary material present at the
beginning of the calendar year (January
1). Hazardous secondary materials to be
recycled must be placed in a storage
unit with a label indicating the first date
that the material began to be
accumulated, or the accumulation
period must be documented through an
inventory log or other appropriate
method. Otherwise, the hazardous
secondary material is considered to be
speculatively accumulated and not
eligible for the alternative standards in
40 CFR part 266, subpart Q.
The requirement that facilities
receiving refrigerant from off-site to be
recycled for reuse maintain certification
by EPA under 40 CFR 82.164 helps
ensure that the recycler is experienced
in proper refrigerant reclamation
techniques and will manage the spent
refrigerant in a manner that minimizes
releases, with an explicit limit under the
CAA section 608 rules of no more than
1.5 percent of the refrigerant released
during the reclamation process (see 40
CFR 82.164(a)(3)). The certification
requirement also helps with the
transparency of the RCRA alternative
standard since the list of EPA-certified
refrigerant reclaimers is publicly
available on EPA’s website.123 In
addition, these facilities certified
reclaimers under CAA section 608 and
must follow recordkeeping and
reporting requirements, per 40 CFR
82.164(d) including (1) maintaining
records of the names and addresses of
persons sending them material for
reclamation and the quantity of the
material (the combined mass of
refrigerant and contaminants) sent to
them for reclamation, and (2) reporting
annually the quantity of material sent to
them for reclamation by refrigerant type,
the mass of refrigerant reclaimed by
refrigerant type, and the mass of waste
products. Finally, EPA-certified
refrigerant reclaimers must verify that
each batch of reclaimed refrigerant
meets the specifications in the
regulations (40 CFR 82.164(a)(2)), which
helps ensure that the reclamation
process is legitimate recycling under the
RCRA regulations. EPA notes that
reclaimed refrigerant that does not meet
the required specifications would be
considered an off-specification
123 EPA-Certified Refrigerant Reclaimers https://
www.epa.gov/section608/epa-certified-refrigerantreclaimers. Retrieved December 27, 2022.

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

72276

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

commercial chemical product under 40
CFR 261.2(c) and subject to all
applicable RCRA regulatory
requirements. EPA further notes that
persons who reclaim HFCs that are
listed as regulated substances under the
AIM Act must meet recordkeeping and
reporting requirements as set forth in 40
CFR 84.31(a) and 84.31(i).
Finally, including the requirement
that facilities receiving refrigerant to be
recycled for reuse meet the RCRA
standards under 40 CFR part 261,
subpart M, Emergency Preparedness and
Response for Management of Excluded
Hazardous Secondary Materials, would
also address risks posed specifically for
ignitable spent refrigerants, which are a
subset of hazardous secondary
materials.124 EPA is proposing that
facilities receiving ignitable spent
refrigerants from other parties for
recycling for reuse be subject to this
additional emergency preparedness
requirement because these third-party
recyclers would be receiving ignitable
spent refrigerant from multiple sources,
and are likely to store greater volumes
for longer time periods than companies
that recycle for reuse onsite or as part
of an MVAC refrigerant recovery and
recycling system in compliance with 40
CFR part 82, subpart B. Proposed
requirements include maintaining
appropriate emergency equipment on
site, having access to alarm systems,
maintaining needed aisle space, making
arrangements with local emergency
authorities, and having a designated
emergency coordinator who is
responsible for responding in the event
of an emergency. This requirement will
help protect human health and the
environment in the event of a fire or
other emergency at the recycler.
EPA is also specifically proposing that
all recycling facilities receiving ignitable
spent refrigerant from off-site meet the
emergency preparedness and response
requirements under 40 CFR 261.410 and
40 CFR 261.420, which include general
personnel training requirements for
facilities (40 CFR 261.420(g)). While
these provisions currently only apply to
facilities that accumulate more than
6,000 kg of hazardous secondary
materials at a time, given the ignitability
risk posed by the spent refrigerants at
relatively small volumes, EPA’s view is
that these provisions are the most
appropriate for all facilities
accumulating ignitable spent
refrigerants. EPA requests comment on
124 Per 40 CFR 260.10, ‘‘hazardous secondary
materials’’ means a secondary material (e.g., spent
material, by-product, or sludge) that, when
discarded, would be identified as hazardous waste
under 40 CFR part 261. Spent ignitable refrigerant
meets this definition.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

these emergency preparedness and
response requirements for reclaimers
receiving ignitable spent refrigerants,
including whether more specific
training requirements for managing
ignitable spent refrigerants should be
included in the alternative RCRA
standards, and if so, what aspects of
refrigerant management those additional
training requirements should address.
4. Very Small Quantity Generator
Wastes
Very Small Quantity Generators
(VSQGs) generate less than 100 kg of
hazardous waste per month and one
kilogram or less per month of acutely
hazardous waste and are subject to a
limited set of federal RCRA Subtitle C
hazardous waste regulations, provided
that they comply with the conditions set
forth in 40 CFR 262.14. Among those
conditions is that the VSQG must either
treat and dispose of its hazardous waste
in an on-site facility or ensure delivery
to an off-site facility listed in 40 CFR
262.14(a)(5). Included in this list is a
facility that: (1) beneficially uses or
reuses, or legitimately recycles or
reclaims its waste; or (2) treats its waste
prior to beneficial use or reuse, or
legitimate recycling or reclamation.
For ignitable spent refrigerant
regulated under the new proposed
RCRA alternative standard, EPA is
proposing to make a conforming change
to 40 CFR 262.14(a)(5) to require that
these refrigerants be sent to a facility
that meets the requirements of 40 CFR
part 266, subpart Q if sent off-site for
recycling. EPA notes that while this
change is more stringent than the
current RCRA regulations, VSQGs
would experience no additional burden
since under the CAA section 608 rules,
all reclaimers receiving used ODS
refrigerants or non-exempt substitute
refrigerants from off-site for reclamation
must meet EPA’s certification
requirements in 40 CFR 82.164. This
proposed revision would not affect
refrigerants not subject to the new RCRA
alternative standard (e.g., ignitable spent
refrigerants that are not sent off-site to
be recycled for reuse).
5. RCRA Regulation of Exports and
Imports of Ignitable Spent Refrigerants
The proposed RCRA alternative
standard is limited to ignitable spent
refrigerants that are recycled for reuse in
the United States, and it requires that
off-site recycling for reuse be performed
at an EPA-certified reclaimer per 40 CFR
82.164. Therefore, ignitable spent
refrigerants intended for export would
not qualify for the proposed RCRA
alternative standard, and would instead
be regulated under the full RCRA

PO 00000

Frm 00062

Fmt 4701

Sfmt 4702

Subtitle C requirements, including the
relevant hazardous waste export
requirements in 40 CFR part 262,
subpart H.
Imports of ignitable spent refrigerants
would be allowed under the alternative
RCRA standards, as long as the
imported refrigerants meet the
requirements of the proposed RCRA
alternative standard, including being
recycled for reuse at an EPA-certified
reclaimer per 40 CFR 82.164. This
proposal does not affect or reopen any
of the requirements for regulated
substances established under the AIM
Act that are codified at 40 CFR part 84,
subpart A. EPA requests comment on
the regulation of exports and imports of
ignitable spent refrigerants under RCRA,
including whether to add export and/or
import requirements to the RCRA
alternative standard under 40 CFR part
266, subpart Q.
6. Applicability of Proposed Alternative
Standard in RCRA-Authorized States
Under section 3006 of RCRA, EPA
may authorize states to administer the
RCRA Subtitle C hazardous waste
program. Following authorization, the
authorized state program operates in
lieu of the federal regulations. EPA
retains authority to enforce the
authorized state RCRA Subtitle C
program, although authorized states
have primary enforcement authority.
EPA also retains its authority under
RCRA sections 3007, 3008, 3013, and
7003. The standards and requirements
for state authorization are found at 40
CFR part 271.
Prior to enactment of the Hazardous
and Solid Waste Amendments of 1984
(HSWA), a state with final RCRA
authorization administered its
hazardous waste program entirely in
lieu of EPA administering the federal
program in that state. EPA did not issue
permits for any facilities in that state,
since the state was now authorized to
issue RCRA permits. When new, more
stringent federal requirements were
promulgated, the state was obligated to
enact equivalent authorities within
specified time frames. However, the
new requirements did not take effect in
an authorized state until the state
adopted the equivalent state
requirements.
In contrast, under RCRA section
3006(g) (42 U.S.C. 6926(g)), which was
added by HSWA, new requirements and
prohibitions imposed under HSWA
authority take effect in authorized states
at the same time that they take effect in
unauthorized states. While states must
still adopt HSWA-related provisions as
state law to retain authorization, EPA
implements the HSWA provisions in

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
authorized states, including the
issuance of any permits pertaining to
HSWA requirements, until the state is
granted authorization to do so.
Authorized states are required to
modify their programs only when EPA
promulgates federal requirements that
are more stringent or broader in scope
than existing federal requirements.
RCRA section 3009 allows the states to
impose standards more stringent than
those in the federal program (see 40 CFR
271.1). Therefore, authorized states may,
but are not required to, adopt federal
regulations, both HSWA and nonHSWA, that are considered less
stringent than previous federal
regulations.

applicability of the exemption could
encourage the development of markets
for these other recycled refrigerants,
even if current markets are limited,
provided that they can be safely
recycled for reuse. In addition, EPA
requests comment on which additional
refrigerants should qualify for the RCRA
alternative standards in the final rule, if
EPA determines such an expansion is
appropriate. EPA requests information
on the safety and economic feasibility of
recycling for reuse Class 2L, 2, and 3
refrigerants both under current and
projected future market conditions.

7. Effect on State Authorization
This action proposes to add a new
subpart Q to 40 CFR part 266 Standards
for the Management of Specific
Hazardous Wastes and Specific Types
of Hazardous Waste Management
Facilities, and it is being proposed
under the authority of HSWA due to its
purpose of reducing air emissions from
the management of ignitable spent
refrigerants, in accordance with EPA’s
mandate to control air emissions from
hazardous waste management, as may
be necessary to protect human health
and the environment, per RCRA section
3004(n), which was promulgated under
HSWA. In addition, the changes to the
Very Small Quantity Generator
Regulations in 40 CFR 262.14 would be
promulgated under RCRA section
3001(d)(4), also a HSWA provision.
While the proposed exclusion reduces
the applicability of many RCRA
requirements to the recycling of
ignitable spent refrigerant, the
requirement that refrigerant be
recovered and/or recycled for reuse
using equipment that is certified for that
type of refrigerant and appliance under
40 CFR 82.158, and that the recovered
refrigerant be recycled for reuse at a
facility certified by EPA under 40 CFR
82.164 would be more stringent than the
current RCRA requirements applicable
to recycling of ignitable spent
refrigerant. In addition, the revisions to
the VSQG regulations in 40 CFR 262.14
are more stringent than the current
standard. Thus, the proposed
amendment would be a HSWA rule that
is more stringent than the current RCRA
program and, if finalized, would be
applicable on the effective date of the
final rule in all states.
In addition to the proposed RCRA
alternative standards for Class 1, 2 and
2L, EPA is also considering the option
of expanding the applicability of the
RCRA alternative standards to some or
all A3 refrigerants. Broadening the

EPA is not proposing requirements
focused on implementing subsection
(h)(2)(B) for MVAC servicing facilities
that currently reclaim or recycle
recovered MVAC refrigerant. EPA
understands that under current industry
practices, a variety of things might occur
once refrigerant has been recovered
from an MVAC system. For example, in
some situations, MVAC servicing
facilities recover refrigerant from the
MVAC, recycle it consistent with EPA’s
regulations under CAA section 609 and
return the recycled refrigerant to the
same MVAC for continued use by the
same owner.125 In other circumstances,
however, EPA understands that the
recovered MVAC refrigerant is recycled
and used in servicing a different MVAC
system with a different owner (e.g., to
charge or recharge such a system),
thereby in effect selling or transferring
the refrigerant to a new owner. See 40
CFR 82.34(d)(2). Additionally, EPA
understands that there are
circumstances where refrigerant
recovered from MVAC systems is
reclaimed before it is reused or sold or
transferred to a new owner.
The servicing and repair of MVAC
systems with HFCs and HFC substitutes
(e.g., HFO–1234yf and R–744 (CO2))
have long been subject to certain
requirements that are separate from
those that apply for the servicing and
repair of stationary appliances.
Regulations under CAA section 609
require that technicians use equipment
approved pursuant to the standards at
40 CFR 82.36 to service and repair
MVAC systems. Under those existing
regulations, recovered refrigerant can
either be recycled on-site or off-site
using approved equipment designed to
both recover and recycle refrigerant

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

H. MVAC Servicing and Reprocessed
Material

125 Another example of an instance where there
is no change in ownership is the off-site servicing
and recharge of MVAC systems for a fleet of trucks
that are owned by the same company.

PO 00000

Frm 00063

Fmt 4701

Sfmt 4702

72277

certified to meet SAE J2099.126 SAE
J2099 establishes the minimum level of
refrigerant purity (e.g., 98% for HFO–
1234yf) required for the certification of
on-site recovery and recycling machines
per SAE 2843 and SAE J2788.
Refrigerant from reclamation facilities
that is used for the purpose of
recharging MVACs must be at or above
the standard of purity (i.e., 99.5%) level
defined in AHRI Standard 700, and EPA
understands that such reclamation
typically occurs off-site. See 40 CFR
82.32(e)(2).
Due to the longstanding practice of
on-site recycling of MVAC refrigerant,
some industry stakeholders 127 question
the need to reclaim recovered MVAC
refrigerant to meet the purity described
in AHRI Standard 700–2016 as specified
in the definition of the terms ‘‘reclaim’’
and ‘‘reclamation’’ in subsection (b)(9)
of the Act. They note that equipment
certified to meet SAE J2099 are rated to
clean and separate material in
contaminated refrigerant to a 98%
purity level, which provides the same
level of performance and durability as
virgin refrigerant for purposes of use in
MVACs. They also pointed out the
ambiguity in the phrase ‘‘(or an
appropriate successor standard adopted
by the Administrator)’’ in definition of
‘‘reclaim’’ and ‘‘reclamation’’ in the AIM
Act. While there may be a variety of
situations that could lead to the
adoption of a successor standard by the
Administrator within the meaning of
subsection (b)(9), in EPA’s view one
such circumstance would be if AHRI
published a subsequent standard or
addendum regarding the reprocessing of
a recovered regulated substance to a
specified purity standard and the
analytical methodology to verify the
purity of that regulated substance, and
that standard were adopted by the
Administrator as a successor standard.
EPA is aware that AHRI is in
consultations with SAE International,
the Mobile Air Climate Systems
(MACS), and other industry
stakeholders to develop a standard (or
update an existing standard) that may be
more appropriate for MVAC servicing
than the AHRI Standard 700–2016.128 If
126 SAE International, 2012. SAE J2099: Standard
of Purity for Recycled R–134a (HFC–134a) and R–
1234yf (HFO–1234yf) for Use in Mobile Airconditioning Systems.
127 March 6, 2023, EPA meeting with Mobile Air
Climate Systems (MACS) Association and SAE
International. Meeting materials available in the
docket (EPA–HQ–OAR–2022–0606) for this
proposed rulemaking at https://
www.regulations.gov.
128 Letter to EPA from AHRI, Alliance for
Automotive Innovation, Alliance for Responsible
Atmospheric Policy, and MACS dated June 9, 2023.

E:\FR\FM\19OCP2.SGM

Continued

19OCP2

72278

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

such a standard is finalized, EPA
intends to review it, and any supporting
information, and consider what
implications it might have for potential
approaches that the Agency might
consider in future rulemakings to
implement subsection (h)(2)(B) for
MVAC systems. Additionally, the
Agency could consider establishing its
own purity standard and analytical
methodology for verification of the
purity of recovered regulated
substances, as well as specifying
minimum equipment requirements for
MVAC systems under subsection (h).
Among other things, such a standard
could be based on consideration of
input from stakeholders and consensus
standards bodies. EPA could consider
adopting any such standard in a future
rulemaking. In light of the time needed
to develop such standards (whether
developed by EPA or standard setting
organizations) and for EPA to consider
whether they are appropriate for EPA to
adopt as successor standards in the
context of subsection (h), as well as the
implications that such standards might
have on the regulations that EPA might
propose to implement subsection
(h)(2)(B) for MVAC systems, EPA is not
proposing such regulations in this
NPRM. Instead, EPA intends to issue
proposed regulations for this sector at a
later date, once it has additional clarity
on the development of such a successor
standard and its likely content.
V. How is EPA proposing to treat data
reported under this rule?
Consistent with EPA’s commitment to
transparency in program
implementation, as well as to
proactively encourage compliance,
support enforcement of program
requirements and enable third-party
engagement to complement EPA’s
enforcement efforts, EPA is proposing
several ways it intends to release data
that would be collected if this rule were
finalized as proposed.
EPA has reviewed the data elements
that are proposed to be reported under
this rule. Based on that review, EPA is
proposing certain categorical emissions
data and confidentiality determinations
in advance through this notice and
comment rulemaking for individual
reported data elements that EPA would
be collecting through this rulemaking.
This proposal identifies certain
information categories that must be
submitted to EPA that will be subject to
disclosure to the public without further
notice because the information has been
Available in the docket (EPA–HQ–OAR–2022–
0606) for this proposed rulemaking at https://
www.regulations.gov.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

determined to be either ‘‘emission data’’
under 40 CFR 2.301(a), or the Agency
has found that the information does not
meet the standard for confidential
treatment under Exemption 4 of the
Freedom of Information Act (FOIA).
EPA is also proposing to identify certain
other categories of information that may
be entitled to confidential treatment. For
information EPA is not determining in
this rulemaking to be emission data or
not otherwise entitled to confidential
treatment, EPA will apply the 40 CFR
part 2 process for establishing case-bycase confidentiality determinations. As
explained further in the following
discussion, the emission data and
confidentiality determinations in this
proposed action are intended to increase
the efficiency with which the Agency
responds to FOIA requests and to
provide consistency in the treatment of
the same or similar information.
Establishing these determinations
through this rulemaking will provide
predictability for both information
requesters and submitters. The emission
data and confidentiality determinations
in this proposed rule will also increase
transparency, as well as supporting
compliance with, and enforcement of,
the program’s requirements.
A. Background on Determinations of
Whether Information Is Entitled to
Treatment as Confidential Information
1. Confidential Treatment of Reported
Information
Regulated entities that must submit
information to EPA frequently claim
that some or all of that information is
entitled to confidential treatment and
therefore exempt from disclosure under
Exemption 4 of the FOIA.129 Exemption
4 exempts from disclosure ‘‘trade secrets
and commercial or financial information
obtained from a person [that is]
privileged or confidential.’’ 130 In order
for information to meet the
requirements of Exemption 4, EPA must
find that the information is either: (1) a
trade secret, or (2) commercial or
financial information that is: (a)
obtained from a person, and (b)
privileged or confidential.
Generally, when we have information
that we intend to disclose publicly that
is covered by a claim of confidentiality
under FOIA Exemption 4, EPA has a
process to make case-by-case or class
determinations under 40 CFR part 2 to
evaluate whether such information
qualifies for confidential treatment
under the exemption.131 132 In this
129
130
131

PO 00000

5 U.S.C. 552(b)(4).
5 U.S.C. 552(b)(4).
40 CFR 2.205.

Frm 00064

Fmt 4701

Sfmt 4702

action, EPA is proposing to make
categorical emission data and
confidentiality determinations in
advance through this notice and
comment rulemaking for some
information that must be submitted to
EPA under the proposed requirements.
If EPA finalizes these determinations,
that information would be subject to
disclosure to the public without further
notice.
The U.S. Supreme Court decision in
Food Marketing Institute v. Argus
Leader Media, 139 S. Ct. 2356 (2019)
(Argus Leader) addresses the meaning of
‘‘confidential’’ within the context of
FOIA Exemption 4. The Court held that
‘‘[a]t least where commercial or
financial information is both
customarily and actually treated as
private by its owner and provided to the
government under an assurance of
privacy, the information is ‘confidential’
within the meaning of Exemption
4.’’ 133 The Court identified two
conditions ‘‘that might be required for
information communicated to another to
be considered confidential.’’ 134 Under
the first condition, ‘‘information
communicated to another remains
confidential whenever it is customarily
kept private, or at least closely held, by
the person imparting it.’’ 135 The second
condition provides that ‘‘information
might be considered confidential only if
the party receiving it provides some
assurance that it will remain secret.’’ 136
The Court found the first condition
necessary for information to be
considered confidential within the
meaning of Exemption 4, but did not
address whether the second condition
must also be met.
Following the issuance of the Court’s
opinion in Argus Leader, the U.S.
Department of Justice (DOJ) issued
guidance concerning the confidentiality
prong of Exemption 4, articulating ‘‘the
newly defined contours of Exemption
4’’ post-Argus Leader.137 Where the
132 This approach of making categorical
determinations for a class of information is a wellestablished Agency practice. Prior examples of rules
where EPA has made such categorical
determinations include Confidentiality
Determinations for Data Required Under the
Mandatory Greenhouse Gas Reporting Rule and
Amendments to Special Rules Governing Certain
Information Obtained Under the Clean Air Act (76
FR 30817) (May 26, 2011); Control of Air Pollution
From New Motor Vehicles: Heavy-Duty Engine and
Vehicle Standards (88 FR 4296) (January 24, 2023);
and Renewable Fuel Standard (RFS) Program: RFS
Annual Rules (87 FR 39600) (July 1, 2002).
133 Argus Leader, 139 S. Ct. at 2366.
134 Id. at 2363.
135 Id. (internal citations omitted).
136 Id. (internal citations omitted).
137 ‘‘Exemption 4 After the Supreme Court’s
Ruling in Food Marketing Institute v. Argus Leader
Media and Accompanying Step-by-Step Guide,’’

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

Government provides an express or
implied indication to the submitter
prior to or at the time the information
is submitted to the Government that the
Government would publicly disclose
the information, then the submitter
generally cannot reasonably expect
confidentiality of the information upon
submission, and the information is not
entitled to confidential treatment under
Exemption 4.138 In this proposed rule,
EPA intends to clearly assert that certain
information will not be kept
confidential and will be disclosed
publicly, if it is determined to not be
entitled to confidential treatment in the
final version of this rule. This assertion
aligns with the Supreme Court’s
decision, and the subsequent DOJ
guidance that the government’s
assurances that a submission will be
treated as not confidential should
dictate the expectations of submitters. If
EPA were to finalize these
determinations, submitters would be on
notice before they submit any
information that EPA has determined
that the identified data elements
outlined in the tables below, as well as
in the memorandum provided in the
docket for this action titled Proposed
Confidentiality Determinations and
Emission Data Designations for Data
Elements in the Proposed Rule, will not
be entitled to confidential treatment
upon submission and may be released
by the Agency without further notice.
As a result, submitters will not have a
reasonable expectation that the
information will be treated as
confidential; rather, they should have
the expectation that the information will
be disclosed.
As described further below, EPA is
proposing to make categorical
confidentiality determinations as some
of the proposed data elements that
would be submitted to EPA contain
information that is not entitled to
confidential treatment because either: it
is not the type of information that
submitters customarily keep private or
closely held; it is already publicly
available; or it is discernible
information that is self-evident or
readily observable through reverse
engineering by a third party.
Office of Information Policy, U.S. DOJ, (October 4,
2019), available at https://www.justice.gov/oip/
exemption-4-after-supreme-courts-ruling-foodmarketing-institute-v-argus-leader-media.
138 See id.; see also ‘‘Step-by-Step Guide for
Determining if Commercial or Financial
Information Obtained from a Person is Confidential
under Exemption 4 of the FOIA,’’ Office of
Information Policy, U.S. DOJ, (updated October 7,
2019), available at https://www.justice.gov/oip/stepstep-guide-determining-if-commercial-or-financialinformation-obtained-person-confidential.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

2. Emissions Data Under Section 114 of
the Clean Air Act
The AIM act provides that, ‘‘[s]ections
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.).’’ The CAA
states that ‘‘[a]ny records, reports or
information obtained under [section
114] shall be available to the
public. . . .’’ 139 Thus, the CAA begins
with a presumption that the information
submitted to EPA will be available to be
disclosed to the public. It then provides
a narrow exception to that presumption
for information that ‘‘would divulge
methods or processes entitled to
protection as trade secrets. . . .’’ The
CAA then narrows this exception
further by excluding ‘‘emission data’’
from the category of information eligible
for confidential treatment. While the
CAA does not define ‘‘emission data,’’
EPA has done so by regulation at 40
CFR 2.301(a)(2)(i). EPA releases, on
occasion, some of the information
submitted under CAA section 114 to
parties outside of the Agency of its own
volition, through responses to requests
submitted under the FOIA,140 or
through civil litigation. As noted in the
prior section, generally, when we have
information that we intend to disclose
publicly that is covered by a claim of
confidentiality under FOIA Exemption
4, EPA has a process to make case-bycase or class determinations under 40
CFR part 2. This process includes an
evaluation of whether such information
is or is not emission data, and whether
it otherwise qualifies for confidential
treatment under FOIA Exemption 4.141
The regulations at 40 CFR 2.301 142
define emission data to include the
following:
(A) Information necessary to
determine the identity, amount,
frequency, concentration, or other
characteristics (to the extent related to
air quality) of any emission which has
been emitted by the source (or of any
pollutant resulting from any emission
by the source), or any combination of
the foregoing;
(B) Information necessary to
determine the identity, amount,
frequency, concentration, or other
characteristics (to the extent related to
air quality) of the emissions which,
139 CAA

section 114(c); 42 U.S.C. 7414(c).
U.S.C. 552.
141 40 CFR 2.301(a)(2)(i).
142 The Agency is not reopening, taking comment
on, or proposing to modify this definition.
140 5

PO 00000

Frm 00065

Fmt 4701

Sfmt 4702

72279

under an applicable standard or
limitation, the source was authorized to
emit (including, to the extent necessary
for such purposes, a description of the
manner or rate of operation of the
source); and
(C) A general description of the
location and/or nature of the source to
the extent necessary to identify the
source and to distinguish it from other
sources (including, to the extent
necessary for such purposes, a
description of the device, installation, or
operation constituting the source).
In this proposal, we are applying the
regulatory definition of ‘‘emission data’’
in 40 CFR 2.301(a)(2)(i) to propose that
certain categories of source certification
and compliance information are not
entitled to confidential treatment
because they qualify as emissions data.
If EPA finalizes these determinations,
that information would be subject to
disclosure to the public without further
notice. As relevant to this proposal, a
‘‘source’’ for purposes of the definition
in 40 CFR 2.301 is generally the
equipment covered by a proposed
regulatory requirement, such as a
refrigerant-containing appliance or fire
suppression equipment. EPA’s broad
general definitions of emissions data
also exclude certain information related
to products still in the research and
development phase or products not yet
on the market except for limited
purposes. Thus, for example, 40 CFR
2.301(a)(2)(ii) excludes information
related to ‘‘any product, method, device,
or installation (or any component
thereof) designed and intended to be
marketed or used commercially but not
yet so marketed or used.’’ This specific
exclusion from the definition of
emissions data is limited in time. EPA
does not believe data related to this
exclusion are implicated in this
proposed rulemaking because these data
relate to equipment currently in use and
HFCs moving through commerce.
B. Data Elements Reported to EPA
Under the Leak Repair Provisions
Consistent with EPA’s commitment to
transparency in program
implementation, EPA has reviewed the
data elements in the chronically leaking
appliance report and the other ad hoc
reports proposed under the leak repair
requirements to see if information under
the umbrella of those data elements
could be considered entitled to
confidential treatment. EPA is
proposing to treat certain data elements
under the leak repair provisions as not
entitled to confidential treatment.
Tables 2 and 3 outline individual data
elements that will not be handled as
confidential, emission data, or

E:\FR\FM\19OCP2.SGM

19OCP2

72280

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

otherwise not entitled to confidential
treatment. Additional information on
these proposed determinations is
provided in the memorandum titled
Proposed Confidentiality
Determinations and Emission Data
Designations for Data Elements in the
Proposed Rule, which is available in the

docket for this action. There may be
additional reasons not to release
individual data elements determined to
not be entitled confidential treatment,
for example if it is personally
identifiable information (PII). The
Agency will separately determine
whether any data should be withheld

from release for reasons other than
business confidentiality before data is
released. EPA requests comment on the
following proposed confidentiality
determinations.
BILLING CODE 6560–50–P

Table 2. Proposed Determination of Confidentiality Status for Data Elements Related to
Reports on Chronically Leaking Appliances
Description of data element

Identification Information (owner name, facility name, facility
address where appliance is located)
Appliance ID or Description (for facilities with multiple
appliances)
Appliance type (comfort cooling, IPR, or commercial
refrigeration)
Refrigerant type
Full charge of appliance (pounds)
Annual percent refrigerant loss
Dates of refrigerant addition
Amounts of refrigerant added
Date of last successful follow-up verification test
Explanation of cause ofrefrigerant losses (Narrative)
Description of the repair actions taken (Narrative)
Whether a retrofit or retirement plan been developed for the
appliance, and, if so, the anticipated date of retrofit or
retirement

Confidentiality status and
Rationale•
No confidential
treatment/Emissions Data
No confidential
treatment/Emissions Data
No confidential
treatment/Emissions Data
No confidential
treatment/Emissions Data
No confidential
treatment/Emissions Data
No confidential
treatment/Emissions Data
No confidential
treatment/Emissions Data
No confidential
treatment/Emissions Data
No confidential
treatment/Emissions Data
No confidential
treatment/Emissions Data
No confidential
treatment/Emissions Data

No confidential
treatment/Emissions Data

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

PO 00000

Frm 00066

Fmt 4701

Sfmt 4725

E:\FR\FM\19OCP2.SGM

19OCP2

EP19OC23.002

lotter on DSK11XQN23PROD with PROPOSALS2

• EPA provides rationale of the confidentiality determination in the memorandum titled Proposed Confidentiality
Determinations and Emission Data Designations for Data Elements in the Proposed Rule, which is available in
the docket IBP A-HO-OAR-2022-0606) of this proposed mlemaking at httvs:l/www.re,zulations.,zov.

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

72281

Table 3. Proposed Determination of Confidentiality Status for Data Elements Related to
Other Leak Repair Notifications and Extension Requests
Confidentiality status
and Rationalea

Extension oftime to complete repairs: Identification and address of
the facility; the name of the owner or operator of the appliance; the
leak rate; the method used to determine the leak rate and full charge;
the date the appliance exceeded the applicable leak rate; the location
of Ieak(s) to the extent determined to date; any repair work that has
been performed thus far, including the date that work was
No confidential
completed; the reasons why more than 30 days (or 120 days if an
treatment/Emissions
industrial process shutdown is required) are needed to complete the Data
repair; and an estimate of when the work will be completed. If the
estimated completion date is to be extended, a new estimated date of
completion and documentation of the reason for that change must be
submitted to EPA within 30 days of identifying that the completion
date must be extended.
Relief from the obligation to retrofit or retire an appliance: The date
that the requirement to develop a retrofit or retirement plan was
triggered; the leak rate; the method used to determine the leak rate
and full charge; the location of the leak(s) identified in the leak
inspection; a description of repair work that has been completed; a
No confidential
treatment/Emissions
description of repair work that has not been completed; a
description of why the repair was not conducted within the
Data
applicable time frame; and a statement signed by an authorized
official that all identified leaks will be repaired and an estimate of
when those repairs will be completed (not to exceed one year from
date of the plan).
Extension of time to complete the retrofit or retirement of an
appliance: Identification of the appliance; name of the owner or
operator; the leak rate; the method used to determine the leak rate
and full charge; the date the appliance exceeded the applicable leak
No confidential
rate; the location of leaks(s) to the extent determined to date; any
treatment/Emissions
repair work that has been finished thus far, including the date that
Data
work was finished; a plan to finish the retrofit or retirement of the
appliance; the reasons why more than one year is necessary to
retrofit or retire the appliance; the date of notification to EPA; and
an estimate of when retrofit or retirement work will be finished.
Notification of exclusion of purged refrigerants that are destroyed
from annual leak rate calculations: The identification of the facility
and a contact person, including the address and telephone number;
A description of the appliance, focusing on aspects relevant to the
No confidential
purging of refrigerant and subsequent destruction; A description of
treatment/Emissions
the methods used to determine the quantity of refrigerant sent for
Data
destruction and type of records that are being kept by the owners or
operators where the appliance is located; The frequency of
monitoring and data-recording; and A description of the control
device and its destruction efficiencv.
a EPA provides rationale of the confidentiality determination in the memorandum titled
Proposed Cmifidentiality Determinations and Emission Data Designations for Data Elements
in the Proposed Rule, which is available in the docket (EPA-HQ-OAR-2022-0606) of this
proposed rulemaking at httvs:l!www.rezulations.zov.
BILLING CODE 6560–50–C

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

PO 00000

Frm 00067

Fmt 4701

Sfmt 4702

E:\FR\FM\19OCP2.SGM

19OCP2

EP19OC23.003

lotter on DSK11XQN23PROD with PROPOSALS2

Description of data element

lotter on DSK11XQN23PROD with PROPOSALS2

72282

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

EPA is proposing to find that the
information contained within these data
elements would categorically not be
eligible for confidential treatment
because they are either readily apparent
or easily ascertainable by an outsider
(e.g., owner name, facility name, facility
address where appliance is located,
appliance ID or description, and
appliance type (comfort cooling, IPR, or
commercial refrigeration)) or they are
considered emissions data under 40
CFR 2.301 (e.g., refrigerant type, full
charge of appliance, annual percent
refrigerant loss, dates of refrigerant
addition, amounts of refrigerant added,
date of last successful follow-up
verification test, explanation of cause of
refrigerant losses, repair actions taken,
and whether a retrofit or retirement plan
been developed for the appliance, and,
if so, the anticipated date of retrofit or
retirement), or they fit into both
categories. Similarly, the items included
in a request for an extension for leak
repair, request for relief from the
obligation to retrofit or retire an
appliance, request for an extension of
time to complete the retrofit or
retirement of an appliance, and a
notification of exclusion of purged
refrigerants that are destroyed from
annual leak rate calculations are
likewise not eligible for confidential
treatment because this information is
readily ascertainable/observable by an
outside entity, or are considered
emissions data under 40 CFR 2.301, or
both. EPA notes that in these provisions,
the source of the emissions would be
the regulated equipment, and in the case
of all of these notifications these data
are necessary to determine the identity,
amount, frequency, concentration, or
other characteristics (to the extent
related to air quality) of any emission
which has been emitted by the source
and/or information necessary to
determine the identity, amount,
frequency, concentration, or other
characteristics (to the extent related to
air quality) of the emissions which,
under the proposed leak repair
provisions, the source was authorized to
emit; and a general description of the
location and/or nature of the source to
the extent necessary to identify the
source and to distinguish it from other
sources (including, to the extent
necessary for such purposes, a
description of the device, installation, or
operation constituting the source).
C. Data Elements Related to the
Generation of Machine-Readable
Tracking Identifiers and the Tracking of
HFCs
Building on EPA’s experience
implementing similar requirements

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

under the AIM Act, EPA is proposing to
maximize program transparency. Market
transparency would facilitate program
implementation and increase the public
and current market participants’ ability
to provide complementary compliance
assurances and engagement.
Maximizing transparency incentivizes
compliance and promotes
accountability and allows the public
and competing companies to identify
and report noncompliance to EPA.
As previously noted, EPA is
proposing to establish a tracking system
using machine-readable tracking
identifiers to track the movement of
regulated substances that could be used
in servicing, repair, or installation of
refrigerant-containing equipment or fire
suppression equipment through
commerce, including requiring anyone
that introduces into interstate commerce
or sells a regulated substance that could
be used in servicing, repair, or
installation of equipment to be
registered in the system. This program
will allow buyers to able to know that
they are purchasing regulated
substances that meet the regulatory
requirements and to help determine
whether they consist of reclaimed
material.
This proposal involves the collection
of certain data elements. Anyone who is
filling a container or cylinder, whether
for the first time or when transferring
HFCs from one container to one or more
smaller or larger containers, would be
required to enter information in the
tracking system and, in the case of a
container being filled for the first time,
generate a new machine-readable
tracking identifier. Such information
includes: the brand it would be sold
under, the quantity and composition of
HFC(s) in the container, the date it was
packaged or repackaged, the quantity of
containers it was packaged in, and the
size of the containers. To help ensure
regulated HFCs sold by reclaimers are
legally reclaimed material and eligible
for sale, EPA is proposing that
reclaimers would need to log into the
tracking system and, for each container
of HFCs prior to selling regulated
substances, provide information such as
the date the HFC was reclaimed and by
whom; what regulated substance(s)
(and/or the blend containing regulated
substances) is in the container; how
many kilograms were put in the
container and on what date the
container was filled; whether the purity
of the batch was confirmed to meet the
specifications in appendix A to 40 CFR
part 82, subpart F; on what date the
batch was tested; and who certified it
met the specifications. If a container is
filled with reclaimed and virgin HFC(s),

PO 00000

Frm 00068

Fmt 4701

Sfmt 4702

EPA proposes that the reclaimer would
have to also provide information on
how much virgin HFC was used.
If EPA were to finalize a tracking
system with machine-readable tracking
identifiers, EPA is proposing to release
several data elements associated with
each container of HFCs to potential
buyers of HFC material, to support this
system, because it is not the type of
information that is customarily closely
held or kept private by companies. We
further note that the EPA recently made
categorial determinations that this same
type of information would not be
eligible for confidential treatment in the
Allocation Framework Rule (86 FR
55116, 55186, October 5, 2021).143
Accordingly, submitters of this data
have no reasonable expectation that
these data elements are entitled to
confidential treatment, and the Agency
is therefore not required to treat this
information as confidential when it is
received and maintained in Agency
records.
To allow buyers of HFCs to determine
whether the HFC they are purchasing
complies with regulatory requirements,
EPA proposes to release the following
information: (1) Whether the HFC being
sold is legal to purchase based on
information available to EPA; (2) when
the container was filled; (3) the specific
HFCs in the container; and (4) and the
brand name the HFCs are being sold
under. EPA will also release a list of
registered suppliers so purchasers know
where they can buy HFCs that conform
to regulatory requirements. As noted
above, EPA determined in the
Allocation Framework Rule that these
data elements would not be eligible for
confidential treatment, and accordingly,
there would be no reasonable
expectation of confidentiality when this
information is submitted in this context.
A more granular description of these
data elements, together with their
proposed confidentiality status, is
presented in Table 4. There may be
additional reasons not to release
individual data elements determined to
not be entitled to confidential treatment,
for example if it is PII. The Agency will
143 As noted elsewhere in this proposal, petitions
for judicial review challenging aspects of the
Allocation Framework Rule were filed in the D.C.
Circuit. The court rejected all of those challenges
except for the challenges to the QR code and
refillable-cylinder regulations, which were vacated.
Heating, Air Conditioning & Refrigeration
Distributors Int’l v. EPA, 71 F.4th 59 (D.C. Cir.
2023). Although that vacatur may affect some of the
underlying requirements that lead to the categorical
determinations in the Allocation Framework Rule,
the categorical determinations themselves were not
challenged, and the court’s opinion does not
address them. Thus, the court opinion does not
affect the validity of the grounds for the categorical
determinations in the Allocation Framework Rule.

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

separately determine whether any data
should be withheld from release for
reasons other than business
confidentiality before data is released.
EPA has also provided in the docket for
this action a memorandum that provides
additional information on the proposed
determinations, including listing each
individual data element required to be
reported under this proposed regulation
and the proposed determination
whether each element is entitled to
confidential treatment or not. The
Agency will separately determine
whether any data should be withheld
from release for reasons other than
business confidentiality before data
release. Certification-specific data
would accompany each kilogram of HFC
moving through commerce (as tracked
with a machine-readable tracking
identifier). EPA requests comment on
these proposed determinations.
Based on the information available at
this time of this proposal, EPA is
proposing to determine that the entry
number and entry line number
associated with the import (if imported)
would be entitled to confidential
treatment because it is EPA’s
understanding that these numbers could
be used to identify the import broker,
and thus have the potential to reveal

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

confidential business relationships (i.e.,
the relationship between the importer
and the import broker). EPA requests
comment on this determination,
including comments on why this
information may not be entitled to
confidential treatment. Specifically,
EPA requests comment on whether
these numbers could be used to identify
import brokers that would not otherwise
be identifiable via publicly available
information. EPA also requests
comment on whether the existence of a
business relationship between an import
broker and an importer is information
that is customarily closely held.
Based on the information available at
this time of this proposal, EPA is
proposing to determine that the entity/
company that fills a container is eligible
for confidential treatment. EPA’s
understanding is that these data are
customarily and actually considered to
be confidential and closely held by
companies. In EPA’s experience, these
data could implicate confidential
business relationships (i.e., one supplier
filling for several brands) and that the
revelation of these business
relationships could implicate the
submitter’s business or competitive
position. EPA requests comment from
all stakeholders on this determination,

PO 00000

Frm 00069

Fmt 4701

Sfmt 4702

72283

including comments on why this
information may not be entitled to
confidential treatment. EPA may, based
on public comment, revise this
determination.
Based on the information available at
this time of the proposal, EPA is
proposing to determine that the chain of
custody of the HFCs, beyond the two
parties currently involved in any
specific transaction, is eligible for
confidential treatment. EPA’s
understanding is that these data
elements are customarily and actually
considered to be confidential and
closely held by companies. In EPA’s
experience, business submitters actually
and customarily treat their company
customer lists and supply chains as
confidential because public release of
this information would cause harm to
the submitter’s business or competitive
position. For instance, releasing a
submitter’s customer list would allow
competitors access to the submitter’s
valuable and otherwise private business
asset, which could cause the company
to lose their market advantage. EPA
requests comment from all stakeholders
on this determination, including
comments on why this information may
not be entitled to confidential treatment.
BILLING CODE 6560–50–P

E:\FR\FM\19OCP2.SGM

19OCP2

72284

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

Table 4. Proposed Determination of Confidentiality Status for Data Elements Related to
HFC Tracking
Confidentiality status and
Rationale•

Trackin2 system re2istration data elements
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), and the address of each
facility that sells or distributes or offers for sale or
distribution HFCs
How the company introduces HFCs into U.S.
commerce
Trackin2 system data elements
Whether the HFC being sold complies with regulatory
requirements based on information available to EPA
Date the container was filled
The specific HFCs in the container
The brand name the HFCs are being sold under
List of suppliers registered with the system
Date of import (if imported)
The entry number and entry line number associated
with the import (if imported)
Unique serial number associated with the container
Quantity of each HFC in the container
Name, address, contact person, email address, and
phone number of the responsible party at the facility
where the container ofregulated substance(s) was
filled
Certification that the contents of the cylinder match
the substance(s) identified on the label.
The entity/company that filled the container
Quantity of containers the HFC was packaged in (if
part of a batch fill)
The size of the container
Date the HF Cs were reclaimed (if reclaimed)
Certification that the purity of the batch was
confirmed to meet the specifications in appendix A to
40 CFR part 82 subpart F. (ifreclaimed)
The amount of the HFCs in the container that are
virgin HF Cs reclaimed HFCs or recycled HFCs
Certification that reclaimed HFCs in a container meet
the requirements under § 84 .112( d) of the proposed
regulatory text
The current owner of the container ofHFCs
The chain of custody of the HFCs, beyond the two
parties currently involved in any specific transaction,
including an indication if the person receiving the
HFCs is an intennediate supplier or a final customer
Date that a cylinder (disposable or refillable) that

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

PO 00000

Frm 00070

Fmt 4701

Sfmt 4725

No confidential treatment

No confidential treatment

No confidential treatment
No
No
No
No
No

confidential
confidential
confidential
confidential
confidential

treatment
treatment
treatment
treatment
treatment

Confidential treatment
No confidential treatment
No confidential treatment
No confidential treatment

No confidential treatment
Confidential treatment
No confidential treatment
No confidential treatment
No confidential treatment
No confidential treatment
No confidential treatment
No confidential treatment
No confidential treatment
Confidential treatment
No confidential treatment

E:\FR\FM\19OCP2.SGM

19OCP2

EP19OC23.004

lotter on DSK11XQN23PROD with PROPOSALS2

Description of data element

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

72285

contains HFCs and that had been used in the servicing,
repair, or installation of certain equipment was
received
The name, address, contact person, email address, and
phone number of the person who sent a used cylinder No confidential treatment
(disposable or refillable)
Date that any remaining HFC heel or residue in a
No confidential treatment
cylinder (disposable or refillable) had been removed
Certification that all HFCs have been removed from a
No confidential treatment
cylinder (disposable or refillable)
The amount and name of the removed HF Cs from a
used cylinder or the amount remaining in a refillable
No confidential treatment
cylinder before it is refilled
a EPA provides rationale of the confidentiality determination in the memorandum titled
Proposed Confidentiality Determinations and Emission Data Designations for Data Elements
in the Proposed Rule, which is available in the docket (EPA-HQ-OAR-2022-0606) of this
proposed rulemaking at httvs:/lwww.ref!l{lations.zov.

D. Data Elements Related to Fire
Suppression

lotter on DSK11XQN23PROD with PROPOSALS2

As described in section IV.E. of this
document, EPA is proposing certain
reporting requirements related to the
use of regulated substances in the fire
suppression sector. These reporting
requirements allow for the monitoring
of program implementation and of
compliance with the proposed
requirements.
EPA is proposing to require that
certain entities in the fire suppression
sector provide data to the EPA that is
similar to the data they already
voluntarily collect and report to HEEP
as mentioned in section IV.E.4.b.
Relevant reporting entities covered
under this proposed requirement
include entities that perform first fill of
equipment, service (e.g., recharge)
equipment and/or recycle regulated
substances, such as equipment

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

manufacturers, distributors, agent
suppliers or installers that recycle
regulated substances. EPA is proposing
that the covered entities report
annually: (1) the quantity of each
regulated substance held in inventory
onsite broken out by recovered,
recycled, and virgin; (2) the quantity of
material (the combined mass of
regulated substance and contaminants)
by regulated substance sold and/or
recycled for the purpose of installation
of new equipment and servicing (e.g.,
recharge) of fire suppression equipment;
(3) the total mass of each regulated
substance sold and/or recycled; and (4)
the total mass of waste products sent for
disposal, along with information about
the disposal facility if waste is not
processed by the reporting entity. Table
5 presents a more granular description
of these data elements, together with
their proposed confidentiality status.
There may be additional reasons not to
release individual data elements

PO 00000

Frm 00071

Fmt 4701

Sfmt 4702

determined to not be entitled
confidential treatment, for example if it
is PII. The Agency will separately
determine whether any data should be
withheld from release for reasons other
than business confidentiality before data
is released.
EPA proposes to determine that these
data are emissions data as described at
40 CFR 2.301 because they provide a
general description of the location and/
or nature of the source to the extent
necessary to identify the source and to
distinguish it from other sources. As a
separate alternative basis, EPA proposes
to determine that these data are not
entitled to confidential treatment
because they are not closely held as
confidential by the submitter. EPA
requests comment on these proposed
determinations. Additional information
on the rationale for these proposed
determinations is provided in a
memorandum, which is available in the
docket for this action.

E:\FR\FM\19OCP2.SGM

19OCP2

EP19OC23.005

BILLING CODE 6560–50–C

72286

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

Table 5. Proposed Determination of Confidentiality Status for Data Elements Related to
Reports on Fire Suppression
Description of data element

Identification Information (owner name, facility name, facility address
where appliance is located)
Quantity of material (the combined mass ofregulated substance and
contaminants) by regulated substance sold, recovered, recycled, and virgin
for the purpose of installation of new equipment and servicing of fire
suppression equipment
Total mass of each regulated substance sold, recovered, recycled, and virgin

Confidentiality
status and
Rationale•
No confidential
treatment

No confidential
treatment

No confidential
treatment
Total mass of waste products sent for disposal, along with information about No confidential
the disposal facility if waste is not processed by the reporting entity
treatment

lotter on DSK11XQN23PROD with PROPOSALS2

VI. What are the costs and benefits of
this proposed action?
A. Background
EPA is providing information on the
costs and benefits for the provisions
related to managing regulated
substances and their substitutes in this
proposed rule. The analyses, presented
in the Analysis of the Economic Impact
and Benefits of the Proposed Rule draft
TSD and the RIA addendum, are
contained in the docket to this proposed
rule and are intended to provide the
public with information on the relevant
costs and benefits of this action, if
finalized as proposed, and to comply
with executive orders. To the extent that
EPA has considered these analyses in
developing an aspect of this proposed
rule, EPA has summarized those
analyses and the relevant results in the
Analysis of the Economic Impact and
Benefits of the Proposed Rule draft TSD,
which is available in the docket for this
proposed rule. In the RIA addendum,
EPA also included estimates of the
social cost of HFCs in order to quantify
climate benefits, for the purpose of
providing useful information to the
public and to comply with E.O. 12866.
Although EPA is using the social costs
of HFCs for purposes of that assessment,
this proposed action does not rely on
the estimates of these costs as a record
basis for the agency action, and EPA
would reach the proposed conclusions
even in the absence of the social costs
of HFCs.
The climate benefits and compliance
costs stemming from this proposed rule

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

include those related to: (1) the
proposed provisions on leak repair, leak
detection, ALD systems, and
recordkeeping and reporting related to
leak-related provisions; (2) the proposed
amendments to the RCRA hazardous
waste regulations; (3) requiring the
tracking and management of cylinders
for HFCs; (4) requiring use of reclaimed
HFCs in the initial charging and
servicing of certain types of refrigerantcontaining equipment, along with
certification that reclaimed refrigerant
contains no more than 15 percent, by
weight, virgin HFCs; and (5) minimizing
emissions of HFCs from certain types of
fire suppression equipment.
As detailed in the RIA addendum,
EPA finds that in some cases specific
provisions of the proposed rule would
result in compliance costs for industry,
while in other cases they may result in
cost savings. Provisions that result in a
net cost savings may still be considered
as part of the economic benefits
attributable to this rule, under the
assumption that these activities would
not otherwise be undertaken at the same
scale or rate of adoption in the absence
of regulation. More discussion of these
assumptions and supporting literature
may be found in section 3.2.2 of the
Allocation Framework Rule RIA.
From the Agency’s analyses, EPA
provides the costs and benefits
associated with the management of
regulated substances and their
substitutes under the AIM Act as well
those associated with the proposed
amendments to the RCRA hazardous
waste regulations. These analyses—as

PO 00000

Frm 00072

Fmt 4701

Sfmt 4702

summarized below—highlight economic
cost and benefits, including benefits
from leak repair and emissions
reductions. Given that the provisions
EPA is proposing concern HFCs, which
are subject to the overall phasedown of
production and consumption under the
AIM Act, EPA relied on its previous
estimates of the impacts of already
finalized AIM Act rules as a starting
point for the assessment of costs and
benefits of this rule. Specifically, the
Allocation Framework Rule,
‘‘Phasedown of Hydrofluorocarbons:
Establishing the Allowance Allocation
and Trading Program Under the
American Innovation and
Manufacturing Act’’ (86 FR 55116,
October 5, 2021) and the 2024
Allocation Rule, ‘‘Phasedown of
Hydrofluorocarbons: Allowance
Allocation Methodology for 2024 and
Later Years’’ (88 FR 46836, July 20,
2023) are assumed as a baseline for this
proposed rule. In this way, EPA
analyzed the potential incremental
impacts of the proposed rule, attributing
benefits only insofar as they are
additional to those already assessed in
the Allocation Framework Rule RIA and
the 2024 Allocation Rule RIA
addendum (collectively referred to as
‘‘Allocation Rules’’ in this discussion).
For example, a mitigation option in the
MAC analysis for the Allocation Rules
assumed a reduction in refrigerant leaks;
all costs and benefits calculated for this
proposed rule are for leak reductions
over and above those assumed in the
previous analysis. Because the proposed
Technology Transitions Rule has not

E:\FR\FM\19OCP2.SGM

19OCP2

EP19OC23.006

• EPA provides rationale of the confidentiality determination in the memorandum titled Proposed Confidentiality
Determinations and Emission Data Designations for Data Elements in the Proposed Rule, which is available in
the docket (EPA-HQ-OAR-2022-0606) of this proposed rulemaking at https:/lwww.re<2Ulations.£ov.

lotter on DSK11XQN23PROD with PROPOSALS2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
been finalized as of the above analyses,
those proposed restrictions are not
considered part of the baseline for
assessing the costs and benefits of this
proposed rule.
Climate benefits presented in the RIA
Addendum are based on changes
(increases or reductions) in HFC
emissions compared to the Allocation
Framework Rule compliance case (i.e.,
after consideration of the Allocation
Framework Rule and proposed 2024
Allocation Rule) and are calculated
using four different global estimates of
the social cost of HFCs (SC–HFCs): the
model average at 2.5 percent, 3 percent,
and 5 percent discount rates and the
95th percentile at 3 percent discount
rate.
EPA estimates the climate benefits for
this rule using a measure of the social
cost of each HFC (collectively referred
to as SC–HFCs) that is affected by the
rule. The SC–HFCs is the monetary
value of the net harm to society
associated with a marginal increase in
HFC emissions in a given year, or the
benefit of avoiding that increase. In
principle, the SC–HFCs include the
value of all climate change impacts,
including (but not limited to) changes in
net agricultural productivity, human
health effects, property damage from
increased flood risk and natural
disasters, disruption of energy systems,
risk of conflict, environmental
migration, and the value of ecosystem
services. As with the estimates of the
social cost of other GHGs, the SC–HFC
estimates are found to increase over
time within the models—i.e., the
societal harm from one metric ton
emitted in 2030 is higher than the harm
caused by one metric ton emitted in
2025—because future emissions
produce larger incremental damages as
physical and economic systems become
more stressed in response to greater
climatic change, and because gross
domestic product (GDP) is growing over
time and many damage categories are
modeled as proportional to GDP. The
SC–HFCs, therefore, reflects the societal
value of reducing emissions of the gas
in question by one metric ton. The SC–
HFCs is the theoretically appropriate
value to use in conducting benefit-cost
analyses of policies that affect HFC
emissions. See the RIA addendum for
this rule and for the Allocation
Framework Rule for a more detailed
discussion of SC–HFCs and how they
were derived.
The gas-specific SC–HFC estimates
used in this analysis were developed
using methodologies that are consistent
with the methodology underlying
estimates of the social cost of other
GHGs (carbon dioxide [SC–CO2],

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

72287

which explains the methodology
underlying the new set of estimates, in
the docket for the proposed oil and
natural gas rule. EPA is also conducting
an external peer review of this technical
report. More information about this
process and public comment
opportunities is available on EPA’s
website. The agency is in the process of
reviewing public comments on the
updated estimates within the oil and
natural gas rulemaking docket as well as
the recommendations of the external
peer reviewers. EPA remains committed
to using the best available science in its
analyses. Thus, if EPA’s updated SC–
GHG methodology is finalized before
this rule is finalized, EPA intends to
present monetized climate benefits
using the updated SC–GHG
methodology in the final RIA.
As discussed in the February 2021
TSD, the IWG emphasized the
importance and value of considering the
benefits calculated using all four
estimates (model average at 2.5, 3, and
5 percent discount rates, and 95th
percentile at 3 percent discount rate). In
addition, the TSD explained that a
consideration of climate benefits
calculated using discount rates below 3
percent, including 2 percent and lower,
is also warranted when discounting
intergenerational impacts. As a member
of the IWG involved in the development
of the February 2021 TSD, EPA agrees
with this assessment for the purpose of
estimating climate benefits from HFC
reductions as well and will continue to
follow developments in the literature
pertaining to this issue.

methane [SC–CH4], and nitrous oxide
[SC–N2O]), collectively referred to as
SC–GHG, presented in the Technical
Support Document: Social Cost of
Carbon, Methane, and Nitrous Oxide
Interim Estimates under Executive
Order 13990 published in February
2021 by the Interagency Working Group
on the Social Cost of Greenhouse Gases
(IWG) (IWG 2021). As a member of the
IWG involved in the development of the
February 2021 SC–GHG TSD, EPA
agrees that the TSD represents the most
appropriate methodology for estimating
the social cost of GHGs until revised
estimates have been developed
reflecting the latest, peer-reviewed
science. Therefore, EPA views the SC–
HFC estimates used in analysis to be
appropriate for use in benefit-cost
analysis until improved estimates of the
social cost of other GHGs are developed.
EPA has developed a draft updated
SC–GHG methodology within a
sensitivity analysis in the regulatory
impact analysis of EPA’s November
2022 supplemental proposal for oil and
natural gas emissions standards that is
currently undergoing external peer
review and a public comment process.
While that process continues EPA is
continuously reviewing developments
in the scientific literature on the SC–
GHG, including more robust
methodologies for estimating damages
from emissions, and looking for
opportunities to further improve SC–
GHG estimation going forward. Most
recently, EPA presented a draft set of
updated SC–GHG estimates within a
sensitivity analysis in the regulatory
impact analysis of EPA’s December 2022
supplemental proposal for oil and gas
standards that that aims to incorporate
recent advances in the climate science
and economics literature.144
Specifically, the draft updated
methodology incorporates new
literature and research consistent with
the National Academies near-term
recommendations on socioeconomic
and emissions inputs, climate modeling
components, discounting approaches,
and treatment of uncertainty, and an
enhanced representation of how
physical impacts of climate change
translate to economic damages in the
modeling framework based on the best
and readily adaptable damage functions
available in the peer reviewed literature.
EPA solicited public comment on the
sensitivity analysis and the
accompanying draft technical report,

B. Estimated Costs and Benefits of Leak
Repair and ALD Provisions
As detailed in the RIA addendum, the
number, charge sizes, leak rates, and
other characteristics of potentially
affected RACHP equipment were
estimated using EPA’s Vintaging
Model.145 The leak repair and ALD
system provisions proposed are
assumed to lead to leaking systems to be
repaired earlier than they otherwise
would have, leading to reduced
emissions of HFCs. The reduction in
HFC emissions results in climate
benefits due to reduced climate forcing
as calculated by multiplying avoided
emissions by the social cost of each SC–
HFC.
In the years 2025–2050, the proposed
leak repair and ALD system provisions
would prevent an estimated 78
MMTCO2e in HFC emissions, and the

144 Standards of Performance for New,
Reconstructed, and Modified Sources and
Emissions Guidelines for Existing Sources: Oil and
Natural Gas Sector Climate Review (87 FR 74702,
December 6, 2022).

145 EPA. 2023. EPA’s Vintaging Model
representing the Allocation Framework Rule as
modified by the 2024 Allocation Rule RIA
Addendum. VM IO file_v4.4_02.04.16_2024
Allocation Rule.

PO 00000

Frm 00073

Fmt 4701

Sfmt 4702

E:\FR\FM\19OCP2.SGM

19OCP2

72288

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

present value of the economic benefit of
avoiding the damages associated with
those emissions is estimated at $5.4
billion (in 2022 dollars, discounted to
2024 using a 3 percent discount rate).
The annual benefits are estimated to
decrease over time due to the HFC

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

phasedown and the transition out of the
higher-GWP HFCs over time, lowering
the average GWP of later emissions. For
example, it is estimated that the leak
repair and ALD system provisions
would prevent 3.8 MMTCO2e of HFC
emissions in 2030, which decreases to

PO 00000

Frm 00074

Fmt 4701

Sfmt 4702

2.8 MMTCO2e of HFC emissions in
2040. Table 6 shows the estimated
reductions in HFC emissions for each
year from 2025 to 2050 for leak repair
and ALD provisions in the proposed
rule.
BILLING CODE 6560–50–P

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

72289

Table 6. Annual GHG Emissions Avoided in 2025 through 2050 from Leak Repair and
ALD System Provisions

Reducing HFC emissions due to fixing
leaks earlier would also be anticipated
to lead to savings for system owner/

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

I

HF€ Emissions Avoided
(JVITCO2e)

2025

3,800,000

2026

3,810,000

2027

3,820,000

2028

3,820,000

2029

3,810,000

2030

3,790,000

2031

3,780,000

2032

3,750,000

2033

3,720,000

2034

3,640,000

2035

3,510,000

2036

3,370,000

2037

3,230,000

2038

3,080,000

2039

2,930,000

2040

2,780,000

2041

2,630,000

2042

2,480,000

2043

2,330,000

2044

2,180,000

2045

2,060,000

2046

1,970,000

2047

1,900,000

2048

1,860,000

2049

1,850,000

2050

1,860,000

operators, as less new refrigerant would
need to be purchased to replace leaked
refrigerant. In 2025, it is estimated that

PO 00000

Frm 00075

Fmt 4701

Sfmt 4702

the proposed leak repair and ALD
system provisions would lead to savings
of approximately $13 million (2022$).

E:\FR\FM\19OCP2.SGM

19OCP2

EP19OC23.007

lotter on DSK11XQN23PROD with PROPOSALS2

¥ear

72290

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

Unlike the climate benefits, these
savings would not be expected to
decrease over time, as the cost of
refrigerant would not decrease with the
average GWP.
The compliance costs of the proposed
leak repair and inspection requirements
include the costs of purchasing and
operating ALD systems, costs of
required inspections, and the cost of

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

repairing leaks earlier than would have
been necessary without the proposed
provisions. In the years 2025–2050,
these proposed provisions would result
in compliance costs with a present
value estimated at $3.6 billion (2022
dollars, discounted to 2024 at a 3
percent discount rate). When combined
with the refrigerant savings, the

PO 00000

Frm 00076

Fmt 4701

Sfmt 4702

estimated present value of 2025–2050
net compliance costs would be $3.4
billion. Table 7 shows the estimated
compliance costs, including refrigerant
savings, for each year 2025–2050, as
well as the total net costs discounted to
2024 and the equivalent annual costs
using discount rates of 3 percent and 7
percent.

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

72291

Table 7. Incremental Annual Compliance Costs from Leak Repair and ALD System
Provisions (2022$)

Total Incremental
Compliance Costs

I

Refrigerant Savings
I

2025

$278,400,000

$13,100,000

$265,300,000

2026

$219,100,000

$13,400,000

$205,700,000

2027

$229,900,000

$13,600,000

$216,300,000

2028

$242,700,000

$13,700,000

$229,000,000

2029

$250,000,000

$13,900,000

$236,100,000

2030

$190,600,000

$13,900,000

$176,700,000

2031

$191,900,000

$14,000,000

$177,900,000

2032

$192,700,000

$14,000,000

$178,700,000

2033

$193,600,000

$14,000,000

$179,600,000

2034

$194,300,000

$13,900,000

$180,400,000

2035

$194,500,000

$13,700,000

$180,800,000

2036

$194,600,000

$13,400,000

$181,200,000

2037

$195,200,000

$13,100,000

$182,100,000

2038

$195,700,000

$12,800,000

$182,900,000

2039

$196,100,000

$12,500,000

$183,600,000

2040

$196,500,000

$12,200,000

$184,300,000

2041

$196,800,000

$11,900,000

$184,900,000

2042

$197,100,000

$11,600,000

$185,500,000

2043

$197,300,000

$11,200,000

$186,100,000

2044

$197,500,000

$10,900,000

$186,600,000

2045

$197,800,000

$10,600,000

$187,200,000

2046

$198,400,000

$10,300,000

$188,100,000

2047

$199,200,000

$10,200,000

$189,000,000

2048

$200,300,000

$10,100,000

$190,200,000

2049

$201,600,000

$10,100,000

$191,500,000

2050

$203,300,000

$10,200,000

$193,100,000

lotter on DSK11XQN23PROD with PROPOSALS2

Discount Rate
NPV
EAV

VerDate Sep<11>2014

I

18:48 Oct 18, 2023

Jkt 262001

PO 00000

Frm 00077

Fmt 4701

Sfmt 4725

3%

7%

$3,395,000,000 $2,203,000,000
$196,000,000

E:\FR\FM\19OCP2.SGM

19OCP2

$199,000,000

EP19OC23.008

Year

Total Incremental Compliance
Costs l\linus Refrigerant
Savin~s

72292

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

C. Summary of Estimated Costs and
Benefits of All Rule Provisions
As discussed above, the HFC
Allocation Framework Rule serves as
the status quo from which incremental
impacts of the proposed rule are
evaluated. EPA assumes that under the
HFC allowance trading mechanism
promulgated under the Allocation
Framework Rule, one possible result of
some of the proposed provisions in this
rule is that industry will maximize the
use of allowances still available to meet
remaining demand for HFC production
and consumption in a given year.
Therefore, provisions in this rule
requiring the use of reclaimed HFCs for
refrigerant-containing equipment in
certain RACHP subsectors and recycled
HFCs in fire suppression equipment
may not yield significant additional
HFC consumption reductions, relative
to what was previously modeled in the
Allocation Framework Rule Reference
Case. For example, if additional
reclaimed HFCs are utilized in the
commercial refrigeration subsector,
industry may still shift the use of
available consumption and production
allowances to import or produce HFCs
to meet demand for other subsectors
that are not covered by a reclaim

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

requirement. However, the extent of
such offsetting effects is uncertain.
To account for this uncertainty, this
analysis provides two scenarios to
illustrate the range of potential
incremental impacts. In our base case
scenario, we conservatively estimate
that abatement from provisions in this
rule may be offset by additional HFC
consumption in subsectors not covered
by this rule, even if these subsectors
were previously assumed to have
consumption abatement in the
Allocation Rule Reference Case. To
illustrate the potential upper bound
incremental benefits of the proposed
rule, we then provide a ‘‘high
additionality’’ case, in which abatement
in these additional subsectors is
included.
The present value of the net benefits
of this proposed rule are equal to the
sum of the net costs or benefits of the
various provisions in each year 2025–
2050, discounted to 2024. These
estimates are provided by each rule
provision in Table 8 below. The
provisions which contribute to the total
net benefits are those covering leak
inspections, leak repair, recordkeeping
and reporting, reduced emissions and
use of recycled HFCs in the fire

PO 00000

Frm 00078

Fmt 4701

Sfmt 4702

suppression sector, management and
ultimate evacuation of disposable
cylinders and tracking provisions for
disposable and refillable cylinders, and
the required use of reclaimed HFCs in
the initial charging and service of
certain appliances.
The use of recycled/reclaimed HFCs
was already anticipated as a path to
compliance with the HFC phasedown
consumption caps in the analysis of the
Allocation Framework Rule, but the
specific provisions of this proposed rule
would likely increase the use of
recycled/reclaimed HFCs beyond what
was already accounted for in that RIA.
To the extent this additional use of
recycled/reclaimed HFCs displaces
consumption of virgin HFCs either (a)
the reduced consumption of virgin
HFCs in one sector would free up
allocation allowances that would then
be used elsewhere for consumption of
HFCs, or (b) the reduction in the
consumption of virgin HFCs would
result in incremental climate benefits
under this proposed rule. The former
scenario is presented as part of the base
case and the latter as part of the high
additionality case for the net benefits in
in Table 8.

E:\FR\FM\19OCP2.SGM

19OCP2

72293

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

Table 8. Present V aloe and Equivalent Annual Value of Rule Provisions 2025--2050 in Base
Case and High Additionality Scenarios a,b

NPV

$1,964

$3,156

$1,964

$3,156

EAV

$113

$109

$113

$109

NPV

$0

$0

$337

$338

EAV

$0

$0

$18

$18

NPV

$4,453

$4,457

$4,453

$4,457

EAV

$257

$256

$257

$256

NPV

$0

$0

$251

$256

EAV

$0

$0

$14

$14

NPV

($298)

($186)

($298)

($186)

EAV

($17)

($17)

($17)

($17)

NPV

$6,120

$7,427

$6,708

$8,021

EAV

$353

$349

$385

$381

NPV

$0-$1.6

$0-$1.0

$0-$1.6

$0-$1.0

EAV

$0-$0.1

$0-$0.1

$0-$0.1

$0-$0.1

NPV

$6, 120-$6, 122

$7,427-$7,428

$6,708-$6,710

$8,021-$8,022

$349-$349

$385-$385

$381-$381

Leak Repair, Leak
Inspection,& ALD

Fire Suppression

Cylinder Management

Required Use of Reclaim
Recordkeeping and
Reporting

TOTAL (AIM Act)

RCRA Amendments

$353-$353
EAV
a. Values representing costs are shown in parentheses.
b. Totals may not sum due to independent rounding.

lotter on DSK11XQN23PROD with PROPOSALS2

BILLING CODE 6450–01–C

VII. How is EPA considering
environmental justice?
Executive Order 12898 (59 FR 7629,
February 16, 1994) and Executive Order
14008 (86 FR 7619, January 27, 2021)
establish federal executive policy on
environmental justice. Executive Order
14096, signed April 21, 2023, builds on
the prior Executive Orders to further
advance environmental justice (88 FR
25251).
Executive Order 12898’s main
provision directs federal agencies, to the
greatest extent practicable and
permitted by law, to make
environmental justice part of their
mission by identifying and addressing,
as appropriate, disproportionately high

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

and adverse human health or
environmental effects of their programs,
policies, and activities on people of
color and low-income populations in
the United States. EPA defines 146
146 EPA recognizes that E.O. 14096 (88 FR 25251,
April 21, 2023) provides a new terminology and a
new definition for environmental justice, as
follows: ‘‘the just treatment and meaningful
involvement of all people, regardless of income,
race, color, national origin, Tribal affiliation, or
disability, in agency decision-making and other
Federal activities that affect human health and the
environment so that people: (i) are fully protected
from disproportionate and adverse human health
and environmental effects (including risks) and
hazards, including those related to climate change,
the cumulative impacts of environmental and other
burdens, and the legacy of racism or other structural
or systemic barriers; and (ii) have equitable access
to a healthy, sustainable, and resilient environment
in which to live, play, work, learn, grow, worship,

PO 00000

Frm 00079

Fmt 4701

Sfmt 4702

environmental justice as the fair
treatment and meaningful involvement
of all people regardless of race, color,
national origin, or income with respect
to the development, implementation,
and enforcement of environmental laws,
regulations, and policies.147 Meaningful
involvement means that: (1) potentially
affected populations have an
appropriate opportunity to participate
in decisions about a proposed activity
that will affect their environment and/
and engage in cultural and subsistence practices.’’
For additional information, see https://
www.federalregister.gov/documents/2023/04/26/
2023-08955/revitalizing-our-nations-commitmentto-environmental-justice-for-all.
147 See, e.g., Environmental Protection Agency.
‘‘Environmental Justice.’’ Available at: https://
www.epa.gov/environmentaljustice.

E:\FR\FM\19OCP2.SGM

19OCP2

EP19OC23.009

TOTAL (AIM Act+
RCRA)

72294

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

lotter on DSK11XQN23PROD with PROPOSALS2

or health; (2) the public’s contribution
can influence the regulatory Agency’s
decision; (3) the concerns of all
participants involved will be considered
in the decision-making process; and (4)
the rule-writers and decision-makers
seek out and facilitate the involvement
of those potentially affected.148 The
term ‘‘disproportionate impacts’’ refers
to differences in impacts or risks that
are extensive enough that they may
merit Agency action. In general, the
determination of whether there is a
disproportionate impact that may merit
Agency action is ultimately a policy
judgment which, while informed by
analysis, is the responsibility of the
decision-maker. The terms ‘‘difference’’
or ‘‘differential’’ indicate an analytically
discernible distinction in impacts or
risks across population groups. It is the
role of the analyst to assess and present
differences in anticipated impacts
across population groups of concern for
both the baseline and proposed
regulatory options, using the best
available information (both quantitative
and qualitative) to inform the decisionmaker and the public.149
Executive Order 14008 calls on
agencies to make achieving
environmental justice part of their
missions ‘‘by developing programs,
policies, and activities to address the
disproportionately high and adverse
human health, environmental, climaterelated and other cumulative impacts on
disadvantaged communities, as well as
the accompanying economic challenges
of such impacts.’’ Executive Order
14008 further declares a policy ‘‘to
secure environmental justice and spur
economic opportunity for disadvantaged
communities that have been historically
marginalized and overburdened by
pollution and under-investment in
housing, transportation, water and
wastewater infrastructure, and health
care.’’
In addition, the Presidential
Memorandum on Modernizing
Regulatory Review calls for procedures
to ‘‘take into account the distributional
consequences of regulations, including
as part of a quantitative or qualitative
148 The criteria for meaningful involvement are
contained in EPA’s May 2015 document ‘‘Guidance
on Considering Environmental Justice During the
Development of an Action.’’ Environmental
Protection Agency, 17 Feb. 2017. Available at:
https://www.epa.gov/environmentaljustice/
guidance-considering-environmental-justice-duringdevelopment-action.
149 The definitions and criteria for
‘‘disproportionate impacts,’’ ‘‘difference,’’ and
‘‘differential’’ are contained in EPA’s June 2016
document ‘‘Technical Guidance for Assessing
Environmental Justice in Regulatory Analysis.’’
Available at: https://www.epa.gov/
environmentaljustice/technical-guidance-assessingenvironmental-justice-regulatory-analysis.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

analysis of the costs and benefits of
regulations, to ensure that regulatory
initiatives appropriately benefit, and do
not inappropriately burden
disadvantaged, vulnerable, or
marginalized communities.’’ 150 EPA
also released its June 2016 ‘‘Technical
Guidance for Assessing Environmental
Justice in Regulatory Analysis’’ (2016
Technical Guidance) to provide
recommendations that encourage
analysts to conduct the highest quality
analysis feasible, recognizing that data
limitations, time and resource
constraints, and analytic challenges will
vary by media and circumstance.151
For this action, EPA conducted an
environmental justice analysis 152 using
a methodology similar to that we used
as part of the Allocation Framework
Rule (86 FR 55116, October 5, 2021).
The information provided in this
section is for informational purposes
only; EPA is not relying on the
information in this section as a record
basis for this proposed action.
Following the analytical approach used
in the Allocation Framework Rule RIA,
EPA has provided demographic data
and the cancer and respiratory risks to
surrounding communities. This update
includes the most recent data available
for the AirToxScreen dataset from 2020.
The analysis shows that communities
near the nineteen identified HFC
reclamation facilities are generally more
diverse than the national average with
respect to race and ethnicity. While the
median income of these communities is
slightly higher than the national
average, there are more low-income
households. Across the nineteen
facilities, total respiratory risk and total
cancer risk are lowest for the
communities nearest the reclamation
sites. While the total respiratory index
for communities within one mile of
these nineteen facilities are slightly
higher (.32 compared to the national
average of .31), the risk for those closest
to the facilities appears smaller than for
those at greater distances (3-, 5-, and 10mile radii).
150 Presidential Memorandum on Modernizing
Regulatory Review, January 20, 2021. Available at:
https://www.whitehouse.gov/briefing-room/
presidential-actions/2021/01/20/modernizingregulatory-review/.
151 Technical Guidance for Assessing
Environmental Justice in Regulatory Analysis, June
2016. Available at: https://www.epa.gov/sites/
default/files/2016-06/documents/ejtg_5_6_16_
v5.1.pdf.
152 EPA recognizes that new terminology and a
new definition for environmental justice were
established in E.O. 14096 (88 FR 25251, April 21,
2023). When the analysis of this proposed rule was
performed, EPA was operating under prior guidance
available here: https://www.epa.gov/sites/default/
files/2015-06/documents/considering-ej-inrulemaking-guide-final.pdf.

PO 00000

Frm 00080

Fmt 4701

Sfmt 4702

This rule is expected to result in
benefits in the form of reduced GHG
emissions. The analysis conducted for
this rule also estimates that a portion of
these benefits would be incremental to
emissions reductions that were
anticipated under the Allocation
Framework Rule alone, thus further
reducing the risks of climate change.
While providing additional overall
climate benefits, this rule may also
result in changes in emissions of air
pollutants or other chemicals which are
potential byproducts of HFC
reclamation processes at affected
facilities. The market for reclaimed
HFCs could drive changes in potential
risk for communities living near these
facilities, but the changes in emissions
that could have local effects are
uncertain. However, the nature and
location of the emission changes are
uncertain. Moreover, there is
insufficient information at this time
about which facilities will change
reclamation processes. Given limited
information at this time, it is unclear to
what extent this rule will impact
existing disproportionate adverse effects
on communities living near HFC
reclamation facilities.153 The Agency
will continue to evaluate the impacts of
this proposed rulemaking on
communities with environmental justice
concerns and consider further action, as
appropriate, to protect health in
communities affected by HFC
reclamation. While the environmental
justice analysis was conducted for
informational purposes only, EPA
welcomes the public’s input on the
environmental justice analysis
contained in the RIA addendum for this
proposed rule, as well as broader input
153 Statements made in this section on the
environmental justice analysis draw support from
the following citations: Banzhaf, Spencer, Lala Ma,
and Christopher Timmins. 2019. Environmental
justice: The economics of race, place, and pollution.
Journal of Economic Perspectives; HernandezCortes, D. and Meng, K.C., 2020. Do environmental
markets cause environmental injustice? Evidence
from California’s carbon market (No. w27205).
NBER; Hu, L., Montzka, S.A., Miller, B.R., Andrews,
A.E., Miller, J.B., Lehman, S.J., Sweeney, C., Miller,
S.M., Thoning, K., Siso, C. and Atlas, E.L., 2016.
Continued emissions of carbon tetrachloride from
the United States nearly two decades after its
phaseout for dispersive uses. Proceedings of the
National Academy of Sciences; Mansur, E. and
Sheriff, G., 2021. On the measurement of
environmental inequality: Ranking emissions
distributions generated by different policy
instruments.; U.S. EPA. 2011. Plan EJ 2014.
Washington, DC: U.S. EPA, Office of Environmental
Justice.; U.S. EPA. 2015. Guidance on Considering
Environmental Justice During the Development of
Regulatory Actions. May 2015.; USGCRP. 2016. The
Impacts of Climate Change on Human Health in the
United States: A Scientific Assessment. U.S. Global
Change Research Program, Washington, DC.

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
on other health and environmental risks
the Agency should assess.

lotter on DSK11XQN23PROD with PROPOSALS2

VIII. Request for Advance Comment on
Approaches for Establishing
Requirements for Technician Training
For purposes of ensuring the safety of
technicians and consumers, subsection
(h)(1) directs EPA to promulgate
regulations to control, where
appropriate, any practice, process, or
activity regarding the servicing, repair,
disposal, or installation of equipment
that involves: a regulated substance, a
substitute for a regulated substance, the
reclaiming of a regulated substance used
as a refrigerant, or the reclaiming of a
substitute for a regulated substance used
as a refrigerant (42 U.S.C. 7675(h)(1)).
Subsection (h)(1) further provides that
this includes requiring, where
appropriate, that any such servicing,
repair, disposal, or installation be
performed by a trained technician
meeting minimum standards, as
determined by EPA.
As discussed above in section III.C.,
regulations issued under CAA section
608 for managing stationary
refrigeration and air conditioning
appliances include, among other things,
technician certification requirements
(40 CFR 82.161). Additionally,
regulations issued under CAA section
609 currently requires that anyone
servicing or repairing an MVAC system
for consideration must be properly
trained and certified (40 CFR
82.34(a)(2)). However, since establishing
these regulatory programs in the 1990s,
the use of flammable or mildly
flammable refrigerants have
increased.154 155
EPA is aware that many innovative
technologies are being introduced to
continue to meet the air conditioning
and refrigeration needs in the United
States and around the world. Typically,
newer equipment meets higher
efficiency standards. For many
applications, there has been and likely
will continue to be an increased use of
flammable and mildly flammable
refrigerants. While these refrigerants can
be safely used in equipment properly
designed for their use, it is not advisable
to use these refrigerants in equipment
specifically designed for non-flammable
154 TEAP 2022 Progress Report (May 2022) and
2018 Quadrennial Assessment Report. Available
online at: https://ozone.unep.org/science/
assessment/teap.
155 Volume 3: Decision XXXIII/5—Continued
provision of information on energy-efficient and
low-global-warming-potential technologies,
Technological and Economic Assessment Panel,
United Nations Environment Programme (UNEP),
May 2022. Available online at: https://
ozone.unep.org/system/files/documents/TEAPEETF-report-may-2022.pdf.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

refrigerants. Previously, when listing
certain flammable refrigerants for
specific end-uses as acceptable subject
to use conditions under the SNAP
program, EPA took advance comment
on a requirement for training (85 FR
35874, June 12, 2020). EPA is also aware
that many entities, including equipment
manufacturers, trade associations,
unions, trade schools, and other
organizations provide training for
technicians and many offer specific
training for refrigerants designated by
ASHRAE as 2, 2L, and 3.
EPA requests advance comment on
whether the Agency should establish
requirements for RACHP technician
training and/or certification to address
servicing equipment using ASHRAE 2,
2L, and 3 refrigerants, and if so,
potential approaches for doing so. EPA
is particularly seeking advance
comment on whether through a separate
rulemaking, EPA should propose to
establish training and/or certification
requirements for technicians under
subsection (h), and, if so, how such a
training and/or certification program
might be managed, and to what extent
or for which types of HFCs and/or their
substitutes such requirements should
apply. EPA is also requesting advance
comment on whether technicians who
are currently trained and certified under
CAA sections 608 (for servicing of
stationary refrigeration appliances) and/
or CAA section 609 (for servicing of
MVAC systems) should be required to
be certified under subsection (h) of the
AIM Act, and whether any future
technician training requirements should
also be incorporated into the proposed
RCRA 40 CFR part 266, subpart Q
requirements for ignitable spent
refrigerants being recycled for reuse, or
if the Agency should provide
grandfathering for technicians certified
by an approved CAA section 608 or 609
certifier. EPA is not proposing and will
not be finalizing a technician training
and certifying program on which it is
seeking advance comment as part of this
rulemaking. Accordingly, EPA does not
intend to respond to any advance
information received on the options
discussed in these sections in any final
rulemaking for this proposal. However,
EPA will consider those comments as
part of a potential future notice and
comment rulemaking to establish a
training and/or certification program.

PO 00000

Frm 00081

Fmt 4701

Sfmt 4702

72295

IX. Statutory and Executive Order
Review
A. Executive Order 12866: Regulatory
Planning and Review and Executive
Order 14094: Modernizing Regulatory
Review
This action is a ‘‘significant regulatory
action’’, as defined under section 3(f)(1)
of Executive Order 12866, as amended
by Executive Order 14094. Accordingly,
EPA, submitted this action to the Office
of Management and Budget (OMB) for
Executive Order 12866 review.
Documentation of any changes made in
response to the Executive Order 12866
review is available in the docket. EPA
prepared an analysis of the potential
costs and benefits associated with this
action. This analysis, Draft Regulatory
Impact Analysis Addendum: Analysis of
the Economic Impact and Benefits of the
Proposed Rule: American Innovation
and Manufacturing (AIM) Act
Subsection H Management of Regulated
Substances, is available in the docket
for this action (Docket Number EPA–
HQ–OAR–2022–0606) and is
summarized in section I.C. and section
VI. of this preamble.
B. Paperwork Reduction Act (PRA)
The information collection activities
in this proposed rule have been
submitted for approval to the Office of
Management and Budget (OMB) under
the PRA. The Information Collection
Request (ICR) document that EPA
prepared has been assigned EPA ICR
number 2778.01. You can find a copy of
the ICR in the docket for this rule, and
it is briefly summarized here.
Subsection (k)(1)(C) of the AIM Act
states that section 114 of the CAA
applies to the AIM Act and rules
promulgated under it as if the AIM Act
were included in title VI of the CAA.
Thus, section 114 of the Clean Air Act,
which provides authority to EPA
Administrator to require recordkeeping
and reporting in carrying out provisions
of the CAA, also applies to and supports
this rulemaking.
EPA is proposing certain data
collection for registration in the tracking
system for containers of HFC
refrigerants as well as HFC fire
suppression agents that could be used in
the servicing, repair, and/or installation
of refrigerant-containing or fire
suppression equipment in order to
encourage compliance and aid
enforcement. Separately, EPA is
proposing certain labeling requirements
for containers of reclaimed HFCs. EPA
is also proposing recordkeeping and
reporting requirements for owners or
operators of applicable refrigerantcontaining appliances that contain HFCs

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

72296

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

or their substitutes to support
compliance with the leak repair
provisions, as well as recordkeeping and
reporting requirements for the proposed
fire suppression provisions for HFCs.
Additionally, where ALD systems are
required, EPA is proposing that owners
or operators maintain records regarding
the annual calibration or audit of the
system.
Respondents/affected entities:
Respondents and affected entities will
be individuals or companies that own,
operate, service, repair, recycle, dispose,
or install equipment containing HFCs or
their substitutes addressed by this
proposed rule, as well as individuals or
companies that recover, recycle, or
reclaim HFCs or their substitutes.
Respondent’s obligation to respond:
Mandatory (AIM Act and section 114 of
the CAA).
Estimated number of respondents:
851,304.
Frequency of response: Quarterly,
annually, and as needed depending on
the nature of the report.
Total estimated burden: 223,432
hours (per year). Burden is defined at 5
CFR 1320.3(b).
Total estimated cost: $15,966,834 (per
year), includes annualized capital or
operation and 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.
Submit your comments on the
Agency’s need for this information, the
accuracy of the provided burden
estimates and any suggested methods
for minimizing respondent burden to
EPA using the docket identified at the
beginning of this rule. EPA will respond
to any ICR-related comments in the final
rule. You may also send your ICRrelated comments to OMB’s Office of
Information and Regulatory Affairs
using the interface at https://
www.reginfo.gov/public/do/PRAMain.
Find this particular information
collection by selecting ‘‘Currently under
Review—Open for Public Comments’’ or
by using the search function. Since
OMB is required to make a decision
concerning the ICR between 30 and 60
days after receipt, OMB must receive
comments no later than November 20,
2023.

this action include those that may use
as refrigerant, use as a fire suppression
agent, reclaim, or recycle HFCs. EPA
estimates that approximately 896 of the
176,042 potentially affected small
entities could incur costs in excess of
one percent of annual sales/revenue and
that approximately 70 small entities
could incur costs in excess of three
percent of annual sales/revenue.
Because there is not a substantial
number of small entities that may
experience a significant impact, it can
be presumed that this action will have
no SISNOSE. Details of this analysis are
presented in Appendix H of ‘‘Analysis
of the Economic Impact and Benefits of
the Proposed Rule: American
Innovation and Manufacturing (AIM)
Act Subsection H Management of
Regulated Substances.’’ (Docket ID
EPA–HQ–OAR–2022–0606).

C. Regulatory Flexibility Act (RFA)
I certify that this action will not have
a significant economic impact on a
substantial number of small entities
(SISNOSE) under the RFA. The small
entities subject to the requirements of

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

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

D. Unfunded Mandates Reform Act
(UMRA)
This action contains a federal
mandate under UMRA, 2 U.S.C. 1531–
1538, that may result in expenditures of
$100 million or more for state, local and
Tribal governments, in the aggregate, or
the private sector in any one year.
Accordingly, EPA has prepared a
written statement required under
section 202 of UMRA. The statement is
included in the docket for this action
and briefly summarized here. This
action contains a federal mandate that
may result in expenditures that exceed
the inflation-adjusted UMRA threshold
of $100 million by the private sector in
any one year, but it is not expected to
result in expenditures of this magnitude
by state, local, and Tribal governments
in the aggregate. The rule is estimated
to result in average annual cost to the
private sector of $228 million for the
period 2025 through 2050. When
adjusted for inflation, the $100 million
UMRA threshold established in 1995 is
equivalent to approximately $184
million in 2022 dollars, the year dollars
for the cost estimates in this proposed
rule. Thus, the cost of the rule to the
private sector in the aggregate exceeds
the inflation-adjusted UMRA threshold.
This action is not subject to the
requirements of section 203 of UMRA
because it contains no regulatory
requirements that might significantly or
uniquely affect small governments.
E. Executive Order 13132: Federalism

PO 00000

Frm 00082

Fmt 4701

Sfmt 4702

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 will not have substantial
direct effects on Tribal governments, 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 and will share information
on this rulemaking through this and
other fora.
G. Executive Order 13045: Protection of
Children From Environmental Health
and Safety Risks
Executive Order 13045 directs federal
agencies to include an evaluation of the
health and safety effects of the planned
regulation on children in federal health
and safety standards and explain why
the regulation is preferable to
potentially effective and reasonably
feasible alternatives. This action is
subject to Executive Order 13045
because it is a significant regulatory
action under section 3(f)(1) of Executive
Order 12866, and EPA believes that the
environmental health or safety risk
addressed by this action has a
disproportionate effect on children.
Accordingly, we have evaluated the
environmental health or safety effects of
climate change on children.
GHGs, including HFCs, contribute to
climate change. The GHG emissions
reductions resulting from
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
life stages, including children, the
elderly, and the poor, 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,

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
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.

lotter on DSK11XQN23PROD with PROPOSALS2

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 and Executive
Order 14096: Revitalizing Our Nation’s
Commitment to Environmental Justice
for All
EPA believes that the human health or
environmental conditions that exist
prior to this action result in or have the
potential to result in disproportionate
and adverse human health or
environmental effects on communities
with environmental justice concerns.
EPA carefully evaluated available
information on HFC reclamation
facilities and the characteristics of
nearby communities to evaluate these
impacts in the context of this proposed
rulemaking. Based on this analysis, EPA
finds evidence of environmental justice
concerns near HFC reclamation facilities
from cumulative exposure to existing
environmental hazards in these
communities.
The analysis shows that communities
near the nineteen identified HFC
reclamation facilities are generally more
diverse than the national average with
respect to race and ethnicity. While the
median income of these communities is
slightly higher than the national
average, there are more low-income
households. Across the nineteen

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

facilities, total respiratory risk and total
cancer risk are lowest for the
communities nearest the reclamation
sites. While the cancer risk within 1mile of the facilities is lower than the
national average, the cancer and
respiratory risks are otherwise slightly
elevated compared to the average.
This rule is expected to result in
benefits in the form of reduced GHG
emissions. The analysis conducted for
this rule also estimates that a portion of
these benefits would be incremental to
emissions reductions that were
anticipated under the Allocation
Framework Rule alone, thus further
reducing the risks of climate change.
While providing additional overall
climate benefits, this rule may also
result in changes in emissions of air
pollutants or other chemicals which are
potential byproducts of HFC
reclamation processes at affected
facilities. The market for reclaimed
HFCs could drive changes in potential
risk for communities living near these
facilities due to the changes in
emissions that could have local effects
is uncertain. However, the nature and
location of the emission changes are
uncertain. Moreover, there is
insufficient information at this time
about which facilities will change
reclamation processes. Given limited
information at this time, it is unclear to
what extent this rule will impact
existing disproportionate adverse effects
on communities living near HFC
reclamation facilities. The Agency will
continue to evaluate the impacts of this
proposed rulemaking on communities
with environmental justice concerns
and consider further action, as
appropriate, to protect health in
communities affected by HFC
reclamation. The information
supporting this Executive Order review
is contained in section VII. of this
preamble.

72297

Packaging and containers, Reporting
and recordkeeping requirements.
40 CFR Part 266
Environmental protection, Energy,
Hazardous waste, Recycling, Reporting
and recordkeeping requirements.
40 CFR Part 270
Environmental protection,
Administrative practice and procedure,
Confidential business information,
Hazardous materials transportation,
Hazardous waste, Reporting and
recordkeeping requirements, Water
pollution control, Water supply.
40 CFR Part 271
Environmental protection,
Administrative practice and procedure,
Confidential business information,
Hazardous materials transportation,
Hazardous waste, Indians—lands,
Intergovernmental relations, Penalties,
Reporting and recordkeeping
requirements, Water pollution control,
Water supply.
Michael S. Regan,
Administrator.

For the reasons stated in the
preamble, EPA proposes to amend 40
CFR parts 84, 261, 262, 266, 270, and
271 as follows:
PART 84—PHASEDOWN OF
HYDROFLUOROCARBONS
1. The authority citation for part 84
continues to read as follows:

■

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

2. Add to part 84, subpart C consisting
of §§ 84.100 through 84.124 to read as
follows:

■

Subpart C—Management of Regulated
Substances

Environmental protection, Hazardous
waste, Recycling, Reporting and
recordkeeping requirements.

Sec.
84.100 Purpose.
84.102 Definitions.
84.104 Prohibitions.
84.106 Leak repair.
84.108 Automatic leak detection systems.
84.110 Emissions from fire suppression
equipment.
84.112 Reclamation.
84.114 Exemptions.
84.116 Requirements for disposable
cylinders.
84.118 Container tracking system.
84.120 Container tracking of used cylinders.
84.122 Treatment of data submitted under
40 CFR part 84, subpart C.
84.124 Relationship to other laws.

40 CFR Part 262

§ 84.100

Environmental protection, Exports,
Hazardous materials transportation,
Hazardous waste, Imports, Labeling,

The purpose of the regulations in this
subpart is to implement subsection (h)
of 42 U.S.C. 7675, with respect to

List of Subjects
40 CFR Part 84
Environmental protection,
Administrative practice and procedure,
Air pollution control, Chemicals,
Climate change, Emissions, Reclaiming,
Recycling, Reporting and recordkeeping
requirements.
40 CFR Part 261

PO 00000

Frm 00083

Fmt 4701

Sfmt 4702

E:\FR\FM\19OCP2.SGM

Purpose.

19OCP2

72298

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

environment or would be released into
the environment if it had not been
recovered prior to the destructive
activity;
(4) The disassembly of any refrigerantcontaining appliance for reuse of its
component parts; or
(5) The recycling of any refrigerantcontaining appliance for scrap.
§ 84.102 Definitions.
Equipment means any device that
contains, uses, detects or is otherwise
For the terms not defined in this
connected or associated with a regulated
subpart but that are defined in § 84.3,
the definitions in § 84.3 shall apply. For substance or substitute for a regulated
substance, including any refrigerantthe purposes of this subpart C:
containing appliance, component, or
Certified technician means a
system.
technician that has been certified per
Fire suppression equipment means
the provisions at 40 CFR 82.161.
Comfort cooling means the refrigerant- any device that is connected to or
associated with a regulated substance or
containing appliances used for air
conditioning to provide cooling in order substitute for a regulated substance,
including blends and mixtures,
to control heat and/or humidity in
consisting in part or whole of a
occupied facilities including but not
regulated substance or a substitute for a
limited to residential, office, and
regulated substance, and that is used for
commercial buildings. Comfort cooling
fire suppression purposes. This term
appliances include but are not limited
includes and such equipment,
to chillers, commercial split systems,
component, or system. This term does
and packaged roof-top units.
not include mission-critical military end
Commercial refrigeration means the
uses and systems used in deployable
refrigerant-containing appliances used
and expeditionary situations. This term
in the retail food and cold storage
also does not include space vehicles as
warehouse subsectors. Retail food
defined in 40 CFR 84.3.
appliances include the refrigeration
Fire suppression technician means
equipment found in supermarkets,
any person who in the course of
convenience stores, restaurants and
servicing, repair, disposal, or
other food service establishments. Cold
installation of fire suppression
storage includes the refrigeration
equipment could be reasonably
equipment used to store meat, produce,
expected to violate the integrity of the
dairy products, and other perishable
fire suppression equipment and
goods.
therefore release fire suppressants into
Component, as it relates to a
refrigerant-containing appliance, means the environment.
Follow-up verification test, as it
a part of the refrigerant circuit within an
relates to a refrigerant-containing
appliance including, but not limited to,
appliance, means those tests that
compressors, condensers, evaporators,
receivers, and all of its connections and involve checking the repairs to an
appliance after a successful initial
subassemblies.
verification test and after the appliance
Custom-built means that the
has returned to normal operating
industrial process refrigeration
characteristics and conditions to verify
equipment or any of its components
that the repairs were successful.
cannot be purchased and/or installed
Potential methods for follow-up
without being uniquely designed,
verification tests include, but are not
fabricated and/or assembled to satisfy a
limited to, the use of soap bubbles as
specific set of industrial process
appropriate, electronic or ultrasonic
conditions.
leak detectors, pressure or vacuum tests,
Disposal, as it relates to a refrigerantcontaining appliance, means the process fluorescent dye and black light, infrared
or near infrared tests, and handheld gas
leading to and including:
(1) The discharge, deposit, dumping
detection devices.
Full charge, as it relates to a
or placing of any discarded refrigerantrefrigerant-containing appliance, means
containing appliance into or on any
the amount of refrigerant required for
land or water;
(2) The disassembly of any refrigerant- normal operating characteristics and
containing appliance for discharge,
conditions of the appliance as
deposit, dumping or placing of its
determined by using one or a
discarded component parts into or on
combination of the following four
any land or water;
methods:
(1) Use of the equipment
(3) The vandalism of any refrigerantmanufacturer’s determination of the full
containing appliance such that the
charge;
refrigerant is released into the

lotter on DSK11XQN23PROD with PROPOSALS2

controls for any practice, process, or
activity regarding the servicing, repair,
disposal, or installation of equipment,
for purposes of maximizing reclaiming,
minimizing the release of regulated
substances from equipment, and
ensuring the safety of technicians and
consumers.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

PO 00000

Frm 00084

Fmt 4701

Sfmt 4702

(2) Use of appropriate calculations
based on component sizes, density of
refrigerant, volume of piping, and other
relevant considerations;
(3) Use of actual measurements of the
amount of refrigerant added to or
evacuated from the appliance, including
for seasonal variances; and/or
(4) Use of an established range based
on the best available data regarding the
normal operating characteristics and
conditions for the appliance, where the
midpoint of the range will serve as the
full charge.
Industrial process refrigeration means
complex customized refrigerantcontaining appliances that are directly
linked to the processes used in, for
example, the chemical, pharmaceutical,
petrochemical, and manufacturing
industries. This sector also includes
industrial ice machines, appliances
used directly in the generation of
electricity, and ice rinks. Where one
appliance is used for both industrial
process refrigeration and other
applications, it will be considered
industrial process refrigeration
equipment if 50 percent or more of its
operating capacity is used for industrial
process refrigeration.
Initial verification test, as it relates to
a refrigerant-containing appliance,
means those leak tests that are
conducted after the repair is finished to
verify that a leak or leaks have been
repaired before refrigerant is added back
to the appliance.
Installation means the process of
setting up equipment for use, which
may include steps such as completing
the refrigerant circuit, including
charging equipment with a regulated
substance or substitute for a regulated
substance, or connecting cylinders
containing a regulated substance or a
substitute for a regulated substance to a
total flooding fire suppression system,
such that the equipment can function
and is ready for use for its intended
purpose.
Leak inspection, as it relates to a
refrigerant-containing appliance, means
the examination of an appliance to
detect and determine the location of
refrigerant leaks. Potential methods
include, but are not limited to,
ultrasonic tests, gas-imaging cameras,
bubble tests as appropriate, or the use of
a leak detection device operated and
maintained according to manufacturer
guidelines. Methods that determine
whether the appliance is leaking
refrigerant but not the location of a leak,
such as standing pressure/vacuum
decay tests, sight glass checks, viewing
receiver levels, pressure checks, and
charging charts, must be used in

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
conjunction with methods that can
determine the location of a leak.
Leak rate, as it relates to a refrigerantcontaining appliance, means the rate at
which an appliance is losing refrigerant,
measured between refrigerant charges.
The leak rate is expressed in terms of
the percentage of the appliance’s full
charge that would be lost over a 12month period if the current rate of loss
were to continue over that period. The
rate must be calculated using one of the

following methods. The same method
must be used for all appliances subject
to the leak repair requirements located
at an operating facility.
(1) Annualizing Method.
(i) Step 1. Take the number of pounds
of refrigerant added to the appliance to
return it to a full charge, whether in one
addition or if multiple additions related
to same leak, and divide it by the
number of pounds of refrigerant the
appliance normally contains at full
charge;

72299

(ii) Step 2. Take the shorter of the
number of days that have passed since
the last day refrigerant was added or 365
days and divide that number by 365
days;
(iii) Step 3. Take the number
calculated in Step 1 and divide it by the
number calculated in Step 2; and
(iv) Step 4. Multiply the number
calculated in Step 3 by 100 to calculate
a percentage. This method is
summarized in the following formula:

Leak.rate ,_pounds of refrigerant added x --~-36_5_d_ay.=,s!_-.yec_ar_ _ _ _ x l000/4,
(0/4 per year)
pounds of refrigerant
shorter of: # days since
in full ch.arge
refrigerant .last added or 365 days
(2) Rolling Average Method.
(i) Step 1. Take the sum of the pounds
of refrigerant added to the appliance
over the previous 365-day period (or
over the period that has passed since the
last successful follow-up verification

test showing all identified leaks in the
appliance were repaired, if that period
is less than one year);
(ii) Step 2. Divide the result of Step
1 by the pounds of refrigerant the

appliance normally contains at full
charge; and
(iii) Step 3. Multiply the result of Step
2 by 100 to obtain a percentage. This
method is summarized in the following
formula:

pounds of refrigerant added over past 365 days
(or since the last successful tbHow-up verification test showing an identified
leaks in the appliance were repaired, if that period is less than one year)
pounds of refrigerant in full cllarge

Mothball, as it relates to a refrigerantcontaining appliance, means to evacuate
refrigerant from an appliance, or the
affected isolated section or component
of an appliance, to at least atmospheric
pressure, and to temporarily shut down
that appliance.
Motor vehicle, as used in this subpart,
means any vehicle which is selfpropelled and designed for transporting
persons or property on a street or
highway, including but not limited to
passenger cars, light-duty vehicles, and
heavy-duty vehicles. This definition
does not include a vehicle where final
assembly of the vehicle has not been
completed by the original equipment
manufacturer.
Motor vehicle air conditioners
(MVAC) means mechanical vapor
compression refrigerant-containing
appliances used to cool the driver’s or
passenger’s compartment of any motor
vehicle. This definition is intended to
have the same meaning as defined in 40
CFR 82.32.
MVAC-like appliance means a
mechanical vapor compression, opendrive compressor refrigerant-containing
appliance with a full charge of 20
pounds or less of refrigerant used to

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

cool the driver’s or passenger’s
compartment of off-road vehicles or
equipment. This includes, but is not
limited to, the air-conditioning
equipment found on agricultural or
construction vehicles. This definition is
intended to have the same meaning as
defined in 40 CFR 82.152.
Normal operating characteristics and
conditions, as it relates to a refrigerantcontaining appliance, means appliance
operating temperatures, pressures, fluid
flows, speeds, and other characteristics,
including full charge of the appliance,
that would be expected for a given
process load and ambient condition
during normal operation. Normal
operating characteristics and conditions
are marked by the absence of atypical
conditions affecting the operation of the
appliance.
Owner or operator means any person
who owns, leases, operates, or controls
any equipment or who controls or
supervises any practice, process, or
activity that is subject to any
requirement pursuant to this subpart.
Recover means the process by which
a regulated substance, or where
applicable, a substitute for a regulated
substance, is removed, in any condition,

PO 00000

Frm 00085

Fmt 4701

Sfmt 4702

from equipment; and stored in an
external container, with or without
testing or processing the regulated
substance or substitute for a regulated
substance.
Recycling, when referring to fire
suppression or fire suppressants, means
the testing and/or reprocessing of
regulated substances used in the fire
suppression sector to certain purity
standards.
Refrigerant, for purposes of this
subpart, means any substance, including
blends and mixtures, consisting in part
or whole of a regulated substance or a
substitute for a regulated substance that
is used for heat transfer purposes,
including those that provide a cooling
effect.
Refrigerant circuit, as it relates to a
refrigerant-containing appliance, means
the parts of an appliance that are
normally connected to each other (or are
separated only by internal valves) and
are designed to contain refrigerant.
Refrigerant-containing appliance
means any device that contains and uses
a regulated substance or substitute for a
regulated substance as a refrigerant
including any air conditioner, motor
vehicle air conditioner, refrigerator,

E:\FR\FM\19OCP2.SGM

19OCP2

EP19OC23.010 EP19OC23.011

lotter on DSK11XQN23PROD with PROPOSALS2

l~eak rate =
(%peryear)

lotter on DSK11XQN23PROD with PROPOSALS2

72300

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

chiller, or freezer. For a system with
multiple circuits, each independent
circuit is considered a separate
appliance.
Refrigerant-containing equipment
means equipment as defined in this
subpart that contains, uses, or is
otherwise connected or associated with
a regulated substance or substitute for a
regulated substance that is used as a
refrigerant. This definition includes
refrigerant-containing components,
refrigerant-containing appliances, and
MVAC-like appliances. This term does
not include mission-critical military end
uses and systems used in deployable
and expeditionary situations. This term
also does not include space vehicles as
defined in 40 CFR 84.3.
Repackager means an entity who
transfers 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. An entity that services
system cylinders for use in fire
suppression equipment and returns the
same regulated substances to the same
system cylinder it was recovered from
after the system cylinder is serviced is
not a repackager.
Repair, for purposes of this subpart
and as it relates to a particular leak in
a refrigerant-containing appliance,
means making adjustments or other
alterations to that refrigerant-containing
appliance that have the effect of
stopping leakage of refrigerant from that
particular leak.
Reprocess means using procedures,
such as filtering, drying, distillation and
other chemical procedures to remove
impurities from a regulated substance or
a substitute for a regulated substance.
Retire, as it relates to a refrigerantcontaining appliance, means the
removal of the refrigerant and the
disassembly or impairment of the
refrigerant circuit such that the
appliance as a whole is rendered
unusable by any person in the future.
Retrofit, as it relates to a refrigerantcontaining appliance, means to convert
an appliance from one refrigerant to
another refrigerant. Retrofitting includes
the conversion of the appliance to
achieve system compatibility with the
new refrigerant and may include, but is
not limited to, changes in lubricants,
gaskets, filters, driers, valves, o-rings or
appliance components. Retrofits
required under this subpart shall be
done to a refrigerant with a lower global
warming potential.
Seasonal variance, as it relates to a
refrigerant-containing appliance, means
the removal of refrigerant from an
appliance due to a change in ambient
conditions caused by a change in

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

season, followed by the subsequent
addition of an amount that is less than
or equal to the amount of refrigerant
removed in the prior change in season,
where both the removal and addition of
refrigerant occurs within one
consecutive 12-month period.
Stationary refrigerant-containing
equipment means refrigerant-containing
equipment, as defined in this subpart,
that is not a motor vehicle air
conditioner or an MVAC-like appliance,
as defined in this subpart.
Substitute for a regulated substance
means a substance that can be used in
equipment in the same or similar
applications as a regulated substance, to
serve the same or a similar purpose,
including but not limited to a substance
used as a refrigerant in a refrigerantcontaining appliance or as a fire
suppressant in fire suppression
equipment, provided that the substance
is not a regulated substance or an ozonedepleting substance.
Technician, as it relates to any person
who works with refrigerant-containing
appliances, means any person who in
the course of servicing, repair, or
installation of a refrigerant-containing
appliance (except MVACs) could be
reasonably expected to violate the
integrity of the refrigerant circuit and
therefore release refrigerants into the
environment. Technician also means
any person who in the course of
disposal of a refrigerant-containing
appliance (except small appliances as
defined in 40 CFR 82.152, MVACs, and
MVAC-like appliances) could be
reasonably expected to violate the
integrity of the refrigerant circuit and
therefore release refrigerants from the
appliances into the environment.
Activities reasonably expected to violate
the integrity of the refrigerant circuit
include but are not limited to: Attaching
or detaching hoses and gauges to and
from the appliance; adding or removing
refrigerant; adding or removing
components; and cutting the refrigerant
line. Activities such as painting the
appliance, rewiring an external
electrical circuit, replacing insulation
on a length of pipe, or tightening nuts
and bolts are not reasonably expected to
violate the integrity of the refrigerant
circuit. Activities conducted on
refrigerant-containing appliances that
have been properly evacuated pursuant
to 40 CFR 82.156 are not reasonably
expected to release refrigerants unless
the activity includes adding refrigerant
to the appliance. Technicians could
include but are not limited to installers,
contractor employees, in-house service
personnel, and owners and/or operators
of refrigerant-containing appliances.

PO 00000

Frm 00086

Fmt 4701

Sfmt 4702

Virgin regulated substance means any
regulated substance that has not had any
bona fide use in equipment except for
those regulated substances contained in
the heel or the residue of a container
that has had a bona fide use in the
servicing, repair, or installation of
equipment.
§ 84.104

Prohibitions.

(a) Sale of recovered refrigerant. No
person may sell, distribute, or transfer to
a new owner, or offer for sale,
distribution, or transfer to a new owner,
any regulated substance used as a
refrigerant in stationary refrigerantcontaining equipment consisting in
whole or in part of recovered regulated
substances, unless the recovered
regulated substance:
(1) Has been reclaimed by a person
who has been certified as a reclaimer
under 40 CFR 82.164 and has been
reclaimed to the levels as specified in
appendix A to 40 CFR part 82, subpart
F; or
(2) Is sold, distributed, or transferred
to a new owner, or offered for sale,
distribution, or transfer to a new owner
solely for the purposes of being
reclaimed or destroyed.
(b) [Reserved]
§ 84.106

Leak repair.

(a) Applicability. This section applies
to refrigerant-containing appliances
with a full charge of 15 or more pounds
of refrigerant where the refrigerant is
composed in whole or in part of:
(1) A regulated substance as listed in
subsection (c) of the AIM Act or in
appendix A to part 84, or
(2) A substitute for a regulated
substance that has a global warming
potential greater than 53, where the
global warming potential is as
determined under the following
hierarchy:
(i) Where trans-dichloroethylene, also
referred to as HCO–1130(E), is used neat
or in a blend, the global warming
potential shall be five;
(ii) Where cis-1-chloro-2,3,3,3tetrafluoropropene, also referred to as
HCFO–1224yd(Z), is used neat or in a
blend, the global warming potential
shall be one;
(iii) For each substitute for a regulated
substance that is not HCO–1130(E) or is
not HCFO–1224yd(Z), but does have a
global warming potential listed in the
Fourth Assessment Report of the
Intergovernmental Panel on Climate
Change, the global warming potential of
the substitute for a regulated substance
shall be that listed as the 100-year
integrated global warming potential and
shall be the net global warming
potential;

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
(iv) For each substitute for a regulated
substance that is not HCO–1130(E), is
not HCFO–1224yd(Z), and is not listed
in the Fourth Assessment Report of the
Intergovernmental Panel on Climate
Change, the global warming potential of
the substitute for a regulated substance
shall be that listed as the 100-year
integrated global warming potential in
the 2022 report by the World
Meteorological Organization, titled
‘‘Scientific Assessment of Ozone
Depletion: 2022’’;
(v) For each substitute for a regulated
substance, that is not HCO–1130(E), is
not HCFO–1224yd(Z), is not listed in
the Fourth Assessment Report of the
Intergovernmental Panel on Climate
Change, and is not listed in the 2022
report by the World Meteorological
Organization, the global warming
potential of the substitute for a regulated
substance shall be that listed in Table
A–1 to 40 CFR part 98, as it existed on
[DATE OF PUBLICATION OF THE
FINAL RULE IN THE FEDERAL
REGISTER], including the use of default
global warming potential values for
substitutes for regulated substances that
are not specifically listed in that table;
(vi) For cases in (iii) through (v) above
where a qualifier, including but not
limited to approximately, ∼, less than, <,
much less than, <<, and greater than, >,
is provided with a global warming
potential value, the value shown shall
be the global warming potential of the
constituent without consideration of the
qualifier;
(vii) For constituents that do not have
a global warming potential as provided
in paragraphs (a)(2)(i) through (vi) of
this section, the global warming
potential of the constituent shall be
zero.
(3) Notwithstanding the criteria in
paragraphs (1) and (2) of this section,
the requirements of this section do not
apply to:
(i) Appliances (as defined in 40 CFR
82.152) containing solely an ozonedepleting substance as a refrigerant;
(ii) Refrigerant-containing appliances
used for the residential and light
commercial air conditioning and heat
pumps subsector.
(4) Compliance dates. The
requirements of this section apply for
refrigerant-containing appliances with a
full charge of 50 or more pounds as of
60 days after [DATE OF PUBLICATION
OF THE FINAL RULE IN THE
FEDERAL REGISTER] in the Federal
Register and for refrigerant-containing
appliances with a full charge between
15 and 50 pounds as of 1 year after
[DATE OF PUBLICATION OF THE
FINAL RULE IN THE FEDERAL
REGISTER] in the Federal Register.

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

(b) Leak rate calculation. Persons
adding or removing refrigerant from a
refrigerant-containing appliance must,
upon conclusion of that installation,
service, repair, or disposal provide the
owner or operator with documentation
that meets the applicable requirements
of paragraph (l)(2) of this section. The
owner or operator must calculate the
leak rate every time refrigerant is added
to an appliance unless the addition is
made immediately following a retrofit,
installation of a new appliance, or
qualifies as a seasonal variance.
(c) Requirement to address leaks
through appliance repair, or retrofitting
or retiring an appliance. (1) Owners or
operators must repair refrigerantcontaining appliances with a leak rate
over the applicable leak rate in this
paragraph in accordance with
paragraphs (d) through (f) of this section
unless the owner or operator elects to
retrofit or retire the refrigerantcontaining appliance in compliance
with paragraphs (h) and (i) of this
section. If the owner or operator elects
to repair leaks but fails to bring the leak
rate below the applicable leak rate, the
owner or operator must create and
implement a retrofit or retirement plan
in accordance with paragraphs (h) and
(i) of this section.
(2) Leak rates:
(i) 20 percent leak rate for commercial
refrigeration equipment;
(ii) 30 percent leak rate for industrial
process refrigeration equipment; and
(iii) 10 percent leak rate for comfort
cooling appliances, refrigerated
transport appliances, or other
refrigerant-containing appliances with a
full charge of 15 or more pounds of
refrigerant not covered by (c)(2)(i) or (ii)
of this section.
(d) Appliance repair. Owners or
operators must identify and repair leaks
in accordance with this paragraph
within 30 days (or 120 days if an
industrial process shutdown is required)
of when refrigerant is added to a
refrigerant-containing appliance
exceeding the applicable leak rate in
paragraph (c) of this section.
(1) A certified technician must
conduct a leak inspection, as described
in paragraph (g) of this section, to
identify the location of leaks.
(2) Leaks must be repaired such that
the leak rate is brought below the
applicable leak rate. This must be
confirmed by the leak rate calculation
performed upon the next refrigerant
addition. The leaks will be presumed to
be repaired if, over the 12-month period
after the repair, there is no further
refrigerant addition or if the leak
inspections required under paragraph
(g) of this section and/or automatic leak

PO 00000

Frm 00087

Fmt 4701

Sfmt 4702

72301

detection systems required by § 84.108
do not find any leaks in the appliance.
Repair of leaks must be documented by
both an initial and a follow-up
verification test or tests.
(3) The time frames in paragraphs (d)
through (f) of this section are
temporarily suspended when an
appliance is mothballed. The time will
resume on the day additional refrigerant
is added to the refrigerant-containing
appliance (or component of a
refrigerant-containing appliance if the
leaking component was isolated).
(e) Verification tests. The owner or
operator must conduct both initial and
follow-up verification tests on each leak
that was repaired under paragraph (d) of
this section.
(1) Initial verification test. Unless
granted additional time, an initial
verification test must be performed
within 30 days (or 120 days if an
industrial process shutdown is required)
of a refrigerant-containing appliance
exceeding the applicable leak rate in
paragraph (c) of this section. An initial
verification test must demonstrate that
for leaks where a repair attempt was
made, the adjustments or alterations to
the refrigerant-containing appliance
have held.
(i) For repairs that can be completed
without the need to open or evacuate
the refrigerant-containing appliance, the
test must be performed after the
conclusion of the repair work and before
any additional refrigerant is added to
the refrigerant-containing appliance.
(ii) For repairs that require the
evacuation of the refrigerant-containing
appliance or portion of the refrigerantcontaining appliance, the test must be
performed before adding any refrigerant
to the refrigerant-containing appliance.
(iii) If the initial verification test
indicates that the repairs have not been
successful, the owner or operator may
conduct as many additional repairs and
initial verification tests as needed
within the applicable time period.
(2) Follow-up verification test. A
follow-up verification test must be
performed within 10 days of the
successful initial verification test or 10
days of the refrigerant-containing
appliance reaching normal operating
characteristics and conditions (if the
refrigerant-containing appliance or
isolated component was evacuated for
the repair(s)). Where it is unsafe to be
present or otherwise impossible to
conduct a follow-up verification test
when the system is operating at normal
operating characteristics and conditions,
the verification test must, where
practicable, be conducted prior to the
system returning to normal operating
characteristics and conditions.

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

72302

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

(i) A follow-up verification test must
demonstrate that leaks where a repair
attempt was made are repaired. If the
follow-up verification test indicates that
the repairs have not been successful, the
owner or operator may conduct as many
additional repairs and verification tests
as needed to bring the refrigerantcontaining appliance below the leak rate
within the applicable time period and to
verify the repairs.
(f) Extensions to the appliance repair
deadlines. Owners or operators are
permitted more than 30 days (or 120
days if an industrial process shutdown
is required) to comply with paragraphs
(d) and (e) of this section if they meet
the requirements of (f)(1) through (4) of
this section or the refrigerant-containing
appliance is mothballed. The request
will be considered approved unless EPA
notifies the owners or operators
otherwise.
(1) One or more of the following
conditions must apply:
(i) The refrigerant-containing
appliance is located in an area subject
to radiological contamination or
shutting down the refrigerant-containing
appliance will directly lead to
radiological contamination. Additional
time is permitted to the extent needed
to conduct and finish repairs in a safe
working environment.
(ii) Requirements of other applicable
Federal, state, local, or Tribal
regulations make a repair within 30
days (or 120 days if an industrial
process shutdown is required)
impossible. Additional time is
permitted to the extent needed to
comply with the pertinent regulations.
(iii) Components that must be
replaced as part of the repair are not
available within 30 days (or 120 days if
an industrial process shutdown is
required). Additional time is permitted
up to 30 days after receiving delivery of
the necessary components, not to
exceed 180 days (or 270 days if an
industrial process shutdown is required)
from the date the refrigerant-containing
appliance exceeded the applicable leak
rate.
(2) Repairs to leaks that the technician
has identified as significantly
contributing to the exceedance of the
leak rate and that do not require
additional time must be completed and
verified within the initial 30 day repair
period (or 120 day repair period if an
industrial process shutdown is
required);
(3) The owner or operator must
document all repair efforts and the
reason for the inability to make the
repair within the initial 30 day repair
period (or 120 day repair period if an

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

industrial process shutdown is
required); and
(4) The owner or operator must
request an extension from EPA
electronically, in the manner specified
by EPA, within 30 days (or 120 days if
an industrial process shutdown is
required) of the refrigerant-containing
appliance exceeding the applicable leak
rate in paragraph (c) of this section.
Extension requests must include:
Identification and address of the facility;
the name of the owner or operator of the
refrigerant-containing appliance; the
leak rate; the method used to determine
the leak rate and full charge; the date
the refrigerant-containing appliance
exceeded the applicable leak rate; the
location of leak(s) to the extent
determined to date; any repair work that
has been performed thus far, including
the date that work was completed; the
reasons why more than 30 days (or 120
days if an industrial process shutdown
is required) are needed to complete the
repair; and an estimate of when the
work will be completed. If the estimated
completion date is to be extended, a
new estimated date of completion and
documentation of the reason for that
change must be submitted to EPA
within 30 days of identifying that the
completion date must be extended. The
owner or operator must keep a dated
copy of this submission.
(g) Leak inspections. (1) The owner or
operator must conduct a leak inspection
in accordance with the following
schedule on any refrigerant-containing
appliance exceeding the applicable leak
rate in paragraph (c)(2) of this section.
(i) For commercial refrigeration and
industrial process refrigeration
appliances with a full charge of 500 or
more pounds, leak inspections must be
conducted once every three months
until the owner or operator can
demonstrate through the leak rate
calculations required under paragraph
(b) of this section that the appliance has
not leaked in excess of the applicable
leak rate for four quarters in a row.
(ii) For commercial refrigeration and
industrial process refrigeration
appliances with a full charge of 50 or
more pounds but less than 500 pounds,
leak inspections must be conducted
once per year until the owner or
operator can demonstrate through the
leak rate calculations required under
paragraph (b) of this section that the
appliance has not leaked in excess of
the applicable leak rate for one year.
(iii) For comfort cooling appliances
and other appliances not covered by
paragraphs (g)(1)(i) and (ii) of this
section, leak inspections must be
conducted once per year until the owner
or operator can demonstrate through the

PO 00000

Frm 00088

Fmt 4701

Sfmt 4702

leak rate calculations required under
paragraph (b) of this section that the
appliance has not leaked in excess of
the applicable leak rate for one year.
(2) Leak inspections must be
conducted by a certified technician
using method(s) determined by the
technician to be appropriate for that
refrigerant-containing appliance.
(3) All visible and accessible
components of a refrigerant-containing
appliance must be inspected, with the
following exceptions:
(i) Where components are insulated,
under ice that forms on the outside of
equipment, underground, behind walls,
or are otherwise inaccessible;
(ii) Where personnel must be elevated
more than two meters above a support
surface; or
(iii) Where components are unsafe to
inspect, as determined by site
personnel.
(4) Quarterly or annual leak
inspections are not required on
refrigerant-containing appliances, or
portions of refrigerant-containing
appliances, continuously monitored by
an automatic leak detection system that
is audited or calibrated annually. An
automatic leak detection system may
directly detect refrigerant in air, monitor
its surrounding in a manner other than
detecting refrigerant concentrations in
air, or monitor conditions of the
appliance. An automatic leak detection
system being used for this purpose must
meet the requirements for automatic
leak detection systems per § 84.108(c)
through (g) and § 84.108(i).
(i) When an automatic leak detection
system is only being used to monitor
portions of a refrigerant-containing
appliance, the remainder of the
refrigerant-containing appliance
continues to be subject to any applicable
leak inspection requirements.
(ii) [Reserved]
(h) Retrofit or retirement plans. (1)
The owner or operator must create a
retrofit or retirement plan within 30
days of:
(i) A refrigerant-containing appliance
leaking above the applicable leak rate in
paragraph (c) of this section if the owner
or operator intends to retrofit or retire
rather than repair the leak;
(ii) A refrigerant-containing appliance
leaking above the applicable leak rate in
paragraph (c) of this section if the owner
or operator fails to take any action to
identify or repair the leak; or
(iii) A refrigerant-containing
appliance continues to leak above the
applicable leak rate after having
conducted the required repairs and
verification tests under paragraphs (d)
and (e) of this section.

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
(2) A retrofit or retirement plan must,
at a minimum, contain the following
information:
(i) Identification and location of the
refrigerant-containing appliance;
(ii) Type and full charge of the
refrigerant used in the refrigerantcontaining appliance;
(iii) Type and full charge of the
refrigerant to which the refrigerantcontaining appliance will be converted,
if retrofitted;
(iv) Itemized procedure for converting
the refrigerant-containing appliance to a
different refrigerant, including changes
required for compatibility with the new
substitute, if retrofitted;
(v) Plan for the disposition of
recovered refrigerant;
(vi) Plan for the disposition of the
refrigerant-containing appliance, if
retired; and
(vii) A schedule, not to exceed one
year, for completion of the appliance
retrofit or retirement.
(3) The retrofit or retirement plan
must be signed by an authorized
company official, dated, accessible at
the site of the refrigerant-containing
appliance in paper copy or electronic
format, and available for EPA inspection
upon request.
(4) All identified leaks must be
repaired as part of any retrofit under
such a plan.
(5) A retrofit or retirement plan must
be implemented as follows:
(i) Unless granted additional time, all
work performed in accordance with the
plan must be finished within one year
of the plan’s date (not to exceed 12
months from when the plan was
finalized as required in paragraph (h)(1)
of this section).
(ii) The owner or operator may
request that EPA relieve it of the
obligation to retrofit or retire a
refrigerant-containing appliance if the
owner or operator can establish within
180 days of the plan’s date that the
refrigerant-containing appliance no
longer exceeds the applicable leak rate
and if the owner or operator agrees in
writing to repair all identified leaks
within one year of the plan’s date
consistent with paragraph (h)(4) and
(h)(5)(i) of this section. The owner or
operator must submit to EPA the retrofit
or retirement plan as well as the
following information: The date that the
requirement to develop a retrofit or
retirement plan was triggered; the leak
rate; the method used to determine the
leak rate and full charge; the location of
the leak(s) identified in the leak
inspection; a description of repair work
that has been completed; a description
of repair work that has not been
completed; a description of why the

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

repair was not conducted within the
time frames required under paragraphs
(d) and (f) of this section; and a
statement signed by an authorized
official that all identified leaks will be
repaired and an estimate of when those
repairs will be completed (not to exceed
one year from date of the plan). The
request will be considered approved
unless EPA notifies the owners or
operators within 60 days of receipt of
the request that it is not approved.
(i) Extensions to the one-year retrofit
or retirement schedule. Owners or
operators may request more than one
year to comply with paragraph (h) of
this section if they meet the
requirements of this paragraph. The
request will be considered approved
unless EPA notifies the owners or
operators within 60 days of receipt of
the request that it is not approved. The
request must be submitted to EPA
electronically, in the manner specified
by EPA, within seven months of
discovering the refrigerant-containing
appliance exceeded the applicable leak
rate. The request must include the
identification of the refrigerantcontaining appliance; name of the
owner or operator; the leak rate; the
method used to determine the leak rate
and full charge; the date the refrigerantcontaining appliance exceeded the
applicable leak rate; the location of
leaks(s) to the extent determined to date;
any repair work that has been finished
thus far, including the date that work
was finished; a plan to finish the retrofit
or retirement of the refrigerantcontaining appliance; the reasons why
more than one year is necessary to
retrofit or retire the refrigerantcontaining appliance; the date of
notification to EPA; and an estimate of
when retrofit or retirement work will be
finished. A dated copy of the request
must be available on-site in either
electronic or paper copy. If the
estimated completion date is to be
revised, a new estimated date of
completion and documentation of the
reason for that change must be
submitted to EPA electronically, in the
manner specified by EPA, within 30
days. Additionally, the time frames in
paragraphs (h) and (i) of this section are
temporarily suspended when a
refrigerant-containing appliance is
mothballed. The time will resume
running on the day additional
refrigerant is added to the refrigerantcontaining appliance (or component of
a refrigerant-containing appliance if the
leaking component was isolated).
(1) Extensions available to industrial
process refrigeration. Owners or
operators of industrial process
refrigeration equipment may request

PO 00000

Frm 00089

Fmt 4701

Sfmt 4702

72303

additional time beyond the one-year
period in paragraph (h) of this section
to finish the retrofit or retirement under
the following circumstances.
(i) Requirements of other applicable
Federal, state, local, or Tribal
regulations make a retrofit or retirement
within one year impossible. Additional
time is permitted to the extent needed
to comply with the pertinent
regulations;
(ii) The new or the retrofitted
equipment is custom-built as defined in
this subpart and the supplier of the
appliance or one of its components has
quoted a delivery time of more than 30
weeks from when the order is placed.
The appliance or appliance components
must be installed within 120 days after
receiving delivery of the necessary
parts;
(iii) The equipment is located in an
area subject to radiological
contamination and creating a safe
working environment will require more
than 30 weeks; or
(iv) After receiving an extension
under paragraph (i)(1)(ii) of this section,
owners or operators may request
additional time if necessary to finish the
retrofit or retirement of equipment. The
request must be submitted to EPA before
the end of the ninth month of the initial
extension and must include the same
information submitted for that
extension, with any necessary revisions.
A dated copy of the request must be
available on-site in either electronic or
paper copy. The request will be
considered approved unless EPA
notifies the owners or operators within
60 days of receipt of the request that it
is not approved.
(j) Chronically leaking appliances.
Owners or operators of refrigerantcontaining appliances containing 15 or
more pounds of refrigerant that leak 125
percent or more of the full charge in a
calendar year must submit a report
containing the information required in
paragraph (m)(4) of this section to EPA
by March 1 of the subsequent year.
(k) Purged refrigerant. In calculating
annual leak rates, purged refrigerant that
is destroyed at a verifiable destruction
efficiency of 98 percent or greater will
not be counted toward the leak rate.
(l) Recordkeeping. All records
identified in this paragraph must be
kept for at least three years in electronic
or paper format, unless otherwise
specified.
(1) Upon installation or [DATE 60
DAYS AFTER DATE OF PUBLICATION
OF THE FINAL RULE IN THE
FEDERAL REGISTER] owners or
operators must determine the full charge
of all refrigerant-containing appliances
with 15 or more pounds of refrigerant

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

72304

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

and maintain the following information
for each appliance until three years after
the appliance is retired:
(i) The identification of the owner or
operator of the refrigerant-containing
appliance;
(ii) The address where the appliance
is located;
(iii) The full charge of the refrigerantcontaining appliance and the method
for how the full charge was determined;
(iv) If using method 4 (using an
established range) for determining full
charge, records must include the range
for the full charge of the refrigerantcontaining appliance, its midpoint, and
how the range was determined;
(v) Any revisions of the full charge,
how they were determined, and the
dates such revisions occurred.
(vi) The date of installation.
(2) Owners or operators must
maintain a record including the
following information for each time a
refrigerant-containing appliance with a
full charge of 15 or more pounds is
installed, serviced, repaired, or disposed
of, when applicable.
(i) The identity and location of the
refrigerant-containing appliance;
(ii) The date of the installation,
service, repair, or disposal performed;
(iii) The part(s) of the refrigerantcontaining appliance being installed,
serviced, repaired, or disposed;
(iv) The type of installation, service,
repair, or disposal performed for each
part;
(v) The name of the person
performing the installation, service,
repair, or disposal;
(vi) The amount and type of
refrigerant added to, or in the case of
disposal removed from, the appliance;
(vii) The full charge of the refrigerantcontaining appliance; and
(viii) The leak rate and the method
used to determine the leak rate (not
applicable when disposing of the
refrigerant-containing appliance,
following a retrofit, installing a new
refrigerant-containing appliance, or if
the refrigerant addition qualifies as a
seasonal variance).
(3) If the installation, service, repair,
or disposal is done by someone other
than the owner or operator, that person
must provide a record containing the
information specified in paragraph
(l)(2)(i) through (vi) of this section,
when applicable, to the owner or
operator.
(4) Owners or operators must keep
records of leak inspections that include
the date of inspection, the method(s)
used to conduct the leak inspection, a
list of the location of each leak that was
identified, and a certification that all
visible and accessible parts of the

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

refrigerant-containing appliance were
inspected. Technicians conducting leak
inspections must, upon conclusion of
that service, provide the owner or
operator of the refrigerant-containing
appliance with documentation that
meets these requirements.
(5) If using an automatic leak
detection system, the owner or operator
must maintain records regarding the
installation and the annual audit and
calibration of the system, a record of
each date the monitoring system
identified a leak, and the location of the
leak.
(6) Owners or operators must
maintain records of the dates and results
of all initial and follow-up verification
tests. Records must include the location
of the refrigerant-containing appliance,
the date(s) of the verification tests, the
location(s) of all repaired leaks that
were tested, the type(s) of verification
test(s) used, and the results of those
tests. Technicians conducting initial or
follow-up verification tests must, upon
conclusion of that service, provide the
owner or operator of the appliance with
documentation that meets these
requirements.
(7) Owners or operators must
maintain retrofit or retirement plans
developed in accordance with
paragraph (h) of this section.
(8) Owners or operators must
maintain retrofit and/or retirement
extension requests submitted to EPA in
accordance with paragraph (i) of this
section.
(9) Owners or operators that suspend
the deadlines in this section by
mothballing a refrigerant-containing
appliance must keep records
documenting when the appliance was
mothballed and when additional
refrigerant was added to the appliance
(or isolated component).
(10) Owners or operators who exclude
purged refrigerants that are destroyed
from annual leak rate calculations must
maintain records to support the amount
of refrigerant claimed as sent for
destruction. Records must be based on
a monitoring strategy that provides
reliable data to demonstrate that the
amount of refrigerant claimed to have
been destroyed is not greater than the
amount of refrigerant actually purged
and destroyed and that the 98 percent
or greater destruction efficiency is met.
Records must include flow rate,
quantity or concentration of the
refrigerant in the vent stream, and
periods of purge flow. Records must
include:
(i) The identification of the facility
and a contact person, including the
address and telephone number;

PO 00000

Frm 00090

Fmt 4701

Sfmt 4702

(ii) A description of the refrigerantcontaining appliance, focusing on
aspects relevant to the purging of
refrigerant and subsequent destruction;
(iii) A description of the methods
used to determine the quantity of
refrigerant sent for destruction and type
of records that are being kept by the
owners or operators where the
appliance is located;
(iv) The frequency of monitoring and
data-recording; and
(v) A description of the control
device, and its destruction efficiency.
(11) Owners or operators that exclude
additions of refrigerant due to seasonal
variance from their leak rate calculation
must maintain records stating that they
are using the seasonal variance
flexibility and documenting the amount
added and removed under paragraph
(l)(2) of this section.
(12) Owners or operators that submit
reports to EPA in accordance with
paragraph (m) of this section must
maintain copies of the submitted reports
and any responses from EPA.
(m) Reporting. All notifications must
be submitted electronically in the
manner specified by EPA.
(1) Owners or operators must notify
EPA electronically, in the manner
specified by EPA, in accordance with
paragraph (f) of this section when
seeking an extension of time to
complete repairs.
(2) Owners or operators must notify
EPA electronically, in the manner
specified by EPA, in accordance with
paragraph (h)(5)(ii) of this section when
seeking relief from the obligation to
retrofit or retire an appliance.
(3) Owners or operators must notify
EPA electronically, in the manner
specified by EPA, in accordance with
paragraph (i) of this section when
seeking an extension of time to
complete the retrofit or retirement of an
appliance.
(4) Owners or operators must report to
EPA electronically, in a manner
specified by EPA, the following in
accordance with paragraph (j) of this
section for any refrigerant-containing
appliance that leaks 125 percent or more
of the full charge in a calendar year.
(i) Basic identification information
(i.e., owner name or operator, facility
name, facility address where appliance
is located, and appliance ID or
description);
(ii) Refrigerant-containing appliance
type (comfort cooling or other,
industrial process refrigeration, or
commercial refrigeration);
(iii) Refrigerant type;
(iv) Full charge of appliance (pounds);
(v) Annual percent refrigerant loss;
(vi) Dates of refrigerant addition;

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
(vii) Amounts of refrigerant added;
(viii) Date of last successful follow-up
verification test;
(ix) Explanation of cause refrigerant
losses;
(x) Description of repair actions taken;
and
(xi) Whether a retrofit or retirement
plan been developed for the refrigerantcontaining appliance and if so, the
anticipated date of retrofit or retirement.
(5) When excluding purged
refrigerants that are destroyed from
annual leak rate calculations, owners or
operators must notify EPA
electronically, in the manner specified
by EPA, within 60 days after the first
time the exclusion is used by the facility
where the appliance is located. The
report must include the information
included in paragraph (l)(10) of this
section.

lotter on DSK11XQN23PROD with PROPOSALS2

§ 84.108 Automatic leak detection
systems.

(a) Owners or operators of refrigerantcontaining appliances used for
industrial process refrigeration or
commercial refrigeration with a full
charge of 1,500 pounds or greater of a
refrigerant containing a regulated
substance or a substitute for a regulated
substance with a GWP greater than 53
must install and use an automatic leak
detection system in accordance with
this section.
(b) (1) Owners and operators of
refrigerant-containing appliances
subject to paragraph (a) of this section
installed on or after [DATE 60 DAYS
AFTER DATE OF PUBLICATION OF
THE FINAL RULE IN THE FEDERAL
REGISTER] must install and use
automatic leak detection systems within
30 days of the appliance installation.
(2) Owners and operators of
refrigerant-containing appliances
subject to paragraph (a) of this section
installed before [DATE 60 DAYS AFTER
DATE OF PUBLICATION OF THE
FINAL RULE IN THE FEDERAL
REGISTER] must install and use
automatic leak detection systems by
[DATE 1 YEAR AFTER DATE OF
PUBLICATION OF THE FINAL RULE
IN THE FEDERAL REGISTER].
(c) Automatic leak detection systems
must be installed in accordance with
manufacturer instructions.
(d) Automatic leak detection systems
must be audited and calibrated
annually.
(e) Automatic leak detection systems
are required to monitor components
located inside an enclosed building or
structure.
(f) For automatic leak detection
systems that directly detect the presence
of a refrigerant in air, the system must:

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

(1) Have sensors or intakes placed so
that they will continuously monitor the
refrigerant concentrations in air in
proximity to the compressor,
evaporator, condenser, and other areas
with a high potential for a refrigerant
leak;
(2) Accurately detect a concentration
level of 10 parts per million of vapor of
the specific refrigerant or refrigerants
used in the refrigerant-containing
appliance(s); and
(3) Alert the owner or operator when
a refrigerant concentration of 100 parts
per million of vapor of the specific
refrigerant or refrigerants used in the
appliance(s) is reached.
(g) For automatic leak detection
systems that monitor conditions of the
refrigerant-containing appliance, the
system must automatically alert the
owner or operator when measurements
indicate a loss of 50 pounds of
refrigerant or 10 percent of the full
charge, whichever is less.
(h) When an automatic leak detection
system alerts an owner or operator of a
leak as described in this paragraph
owners and operators of refrigerantcontaining appliances using automatic
leak detection systems must:
(1) Calculate the leak rate within 30
days (or 120 days where an industrial
process shutdown would be necessary)
of an alert and, if the leak rate is above
the applicable leak rate as described in
§ 84.106(c)(2), comply with the full suite
of leak repair provisions in § 84.106; or
(2) Preemptively repair the identified
leak before adding refrigerant to the
appliance and then calculate the leak
rate within 30 days (or 120 days where
an industrial process shutdown would
be necessary) of an alert. If the leak rate
is above the applicable leak rate as
described in § 84.106(c)(2), the owner or
operator must comply with the full suite
of leak repair provisions in § 84.106.
(3) Where a refrigerant-containing
appliance using an automatic leak
detection system is found to be leaking
above the applicable leak rate as
described in § 84.106(c)(2), and the
automatic leak system is only being
used to monitor portions of an
appliance, the remainder of the
appliance continues to be subject to any
applicable leak inspection requirements,
as described in § 84.106(g).
(i) Recordkeeping. The owner or
operator must maintain records for at
least three years in electronic or paper
format, unless otherwise specified,
regarding:
(1) The installation of the automatic
leak detection system;
(2) The annual audit and calibration
of the system;

PO 00000

Frm 00091

Fmt 4701

Sfmt 4702

72305

(3) A record of each date the
automatic leak detection system triggers
an alert; and
(4) The location of the leak.
§ 84.110 Emissions from fire suppression
equipment.

(a) As of January 1, 2025, no person
installing, servicing, repairing, or
disposing of fire suppression equipment
containing a regulated substance may
knowingly vent or otherwise release
into the environment any regulated
substances used in such equipment.
(1) Release of regulated substances
during testing of fire suppression
equipment is not subject to this
prohibition under paragraph (a) of this
section if the following four conditions
are met:
(i) Equipment employing suitable
alternative fire suppression agents are
not available;
(ii) Release of fire suppression agent
is essential to demonstrate equipment
functionality;
(iii) Failure of the system or
equipment would pose great risk to
human safety or the environment; and
(iv) A simulant agent cannot be used
in place of the regulated substance for
testing purposes.
(2) This prohibition under paragraph
(a) of this section does not apply to
qualification and development testing
during the design and development
process of fire suppression equipment
containing regulated substances when
such tests are essential to demonstrate
equipment functionality and when a
suitable simulant agent cannot be used
in place of the regulated substance for
testing purposes.
(3) This prohibition does not apply to
the emergency release of regulated
substances for the legitimate purpose of
fire extinguishing, explosion inertion, or
other emergency applications for which
the equipment were designed.
(b) As of January 1, 2025, no owner
or operator of fire suppression
equipment containing regulated
substances shall allow the release of
regulated substances to occur as a result
of failure to maintain such equipment.
(c) As of January 1, 2025, recycled
regulated substances must be used for
the initial installation of new fire
suppression equipment, including both
total flooding systems and streaming
applications, that is installed in the
United States, and for the servicing and/
or repair of existing fire suppression
equipment in the United States,
including both total flooding systems
and streaming applications. This
requirement does not apply to onboard
aerospace fire suppression applications

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

72306

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

that qualify for application-specific
allowances under regulations at § 84.13.
(1) Any person using equipment to
recover, store, and transfer regulated
substances used in fire suppression
equipment must evacuate equipment
used to recover, store, and transfer
regulated substances prior to each use to
prevent contamination, arrange for
destruction of the recovered regulated
substances as necessary, and collect and
dispose of wastes from recycling
process.
(2) Any person using recovery and
recycling equipment to recover
regulated substances from fire
suppression equipment must (1) operate
and maintain recovery and recycling
equipment in accordance with
manufacturer specifications to ensure
that the equipment performs as
specified; (2) repair leaks in storage,
recovery, recycling, or charging
equipment used with regulated
substances before use; and (3) ensure
that cross-contamination does not occur
through the mixing of regulated
substances that may be contained in
similar cylinders.
(d) Any person who employs fire
suppression technicians who install,
service, repair, or dispose of fire
suppression equipment containing
regulated substances shall train
technicians hired on or before January 1,
2025, on emissions reduction of
regulated substances by June 1, 2025.
Fire suppression technicians hired after
January 1, 2025, shall be trained
regarding emissions reduction of
regulated substances within 30 days of
hiring, or by June 1, 2025, whichever is
later.
(1) The fire suppression technician
training shall cover an explanation of
the purpose of the training requirement,
including the significance of
minimizing releases of HFCs and
ensuring technician safety, (b) an
overview of regulated substances and
environmental concerns with regulated
substances, including other federal,
state, local, or Tribal fire, building,
safety, and environmental codes and
standards, (c) a review of relevant
regulations concerning regulated
substances, including the requirements
of the regulated substances emissions
reduction program for fire suppression
equipment, and (d) specific technical
instruction relevant to avoiding
unnecessary emissions of regulated
substances during the servicing, repair,
disposal, or installation of fire
suppression equipment at each
individual facility.
(2) [Reserved]
(e) As of January 1, 2025, no person
shall dispose of fire suppression

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

equipment containing regulated
substances except by recovering the
regulated substances themselves or by
arranging for the recovery of the
regulated substances by a fire
suppression equipment manufacturer, a
distributor, or a fire suppressant
recycler.
(f) As of January 1, 2025, no person
shall dispose of regulated substances
used as a fire suppression agent except
by sending it for recycling to a fire
suppressant recycler or a reclaimer
certified under 40 CFR 82.164, or by
arranging for its destruction using one of
the controlled processes listed in
§ 84.29.
(g) Recordkeeping and reporting. (1)
As of January 1, 2025, any person who
performs first fill of fire suppression
equipment, service (e.g., recharge) of fire
suppression equipment and/or recycles
regulated substances recovered from fire
suppression equipment, such as
equipment manufacturers, distributors,
agent suppliers or installers that recycle
regulated substances must submit a
report to EPA annually by February 14th
of each year (covering prior year’s
activity from January 1 through
December 31): the quantity of material
(the combined mass of regulated
substance and contaminants) by
regulated substance broken out by sold,
recovered, recycled, and virgin for the
purpose of installation of new
equipment and servicing and/or repair
of existing fire suppression equipment;
the total mass of each regulated
substance broken out by sold, recovered,
recycled, and virgin; and the total mass
of waste products sent for disposal,
along with information about the
disposal facility if waste is not
processed by the reporting entity. Such
records must be maintained for three
years in either electronic or paper
format.
(2) As of January 1, 2025, any person
who employs fire suppression
technicians who service, repair, install,
or dispose of fire suppression
equipment containing regulated
substances must maintain an electronic
or paper copy of the fire suppression
technician training used, and make
available to EPA upon request a copy of
the training. These entities must
document that they have provided
training to personnel and must maintain
these records for three years in either
electronic or paper format.
(3) As of January 1, 2025, owners and
operators of fire suppression equipment
containing regulated substances must
maintain records documenting that
regulated substances are recovered from
the fire suppression equipment before it
is sent for disposal, either by recovering

PO 00000

Frm 00092

Fmt 4701

Sfmt 4702

the regulated substances themselves
before sending the equipment for
disposal or by leaving the regulated
substances in the equipment and
sending it for disposal to a facility, such
as a fire suppression equipment
manufacturer, distributor, or a fire
suppressant recycler. Such records must
be maintained for three years in either
electronic or paper format.
§ 84.112

Reclamation.

(a) No person may sell, identify, or
report refrigerant as being reclaimed for
use in the installation, servicing, or
repair of refrigerant-containing
equipment if the regulated substance
component of the resulting refrigerant
contains more than 15 percent, by
weight, of virgin regulated substance.
(b) No person may sell, identify, or
report refrigerant as being reclaimed if
it contains any recovered regulated
substance that has not had bona fide use
in equipment, unless that refrigerant
was removed from the heel or residue of
a container that had a bona fide use in
the servicing, repair, or installation of
refrigerant-containing equipment.
(c) Labeling. As of January 1, 2026,
reclaimers certified under 40 CFR
82.164 must affix a label to any
container being sold or distributed or
offered for sale or distribution that
contain reclaimed regulated substances
to certify that the contents do not
exceed 15 percent, by weight, of virgin
regulated substances.
(1) The label must read: ‘‘The contents
of this container do exceed the limit on
virgin regulated substance per 40 CFR
84.112(a).’’
(2) The label must be:
(i) In English;
(ii) Durable and printed or otherwise
labeled on, or affixed to, an external
surface of the container;
(iii) Readily visible and legible;
(iv) Able to withstand open weather
exposure without a substantial
reduction in visibility or legibility; and
(v) Displayed on a background of
contrasting color.
(d) Recordkeeping. As of January 1,
2026, reclaimers certified under 40 CFR
82.164 must generate a record to certify
that the reclaimed regulated substances
being used to fill a container that will
be sold or distributed or offered for sale
or distribution do not exceed 15
percent, by weight, of virgin regulated
substances.
(1) The record must be generated
electronically, in a format specified by
EPA.
(2) The record must contain the
following information:
(i) the name, address, contact person,
email address, and phone number of the
reclaimer certified under 40 CFR 82.164;

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
(ii) the date the container was filled
with reclaimed regulated substance(s);
(iii) the amount and name of the
regulated substance(s) in the
container(s);
(iv) certification that the contents of
the container are from a batch where the
amount of virgin regulated substances
does not exceed 15 percent, by weight,
of the total regulated substances;
(v) the unique serial number
associated with the container(s) filled
from the batch;
(vi) identification of the batch of
reclaimed regulated substances used to
fill the container(s); and
(vii) the percent, by weight, of virgin
regulated substance(s) in the batch used
to fill the container(s).
(3) The record must be maintained by
the reclaimer certified under 40 CFR
82.164 for three years.
(e) As of January 1, 2028, reclaimed
refrigerant must be used for the initial
charge, whether charged in a factory or
in the field, for new refrigerantcontaining equipment that is installed
in the United States in the following
subsectors, if the refrigerant-containing
equipment being charged uses a
refrigerant that contains a regulated
substance:
(1) Residential and light commercial
air conditioning and heat pumps;
(2) Cold storage warehouses;
(3) Industrial process refrigeration;
(4) Stand-alone retail food
refrigeration;
(5) Supermarkets;
(6) Refrigerated transport; and
(7) Automatic commercial ice makers.
(f) As of January 1, 2028, reclaimed
refrigerant must be used when servicing
and/or repairing refrigerant-containing
equipment in the following subsectors,
if the refrigerant-containing equipment
serviced and/or repaired uses a
refrigerant that contains a regulated
substance:
(1) Stand-alone retail food
refrigeration;
(2) Supermarket systems;
(3) Refrigerated transport; and
(4) Automatic commercial ice makers.

lotter on DSK11XQN23PROD with PROPOSALS2

§ 84.114

Exemptions.

(a) The regulations under this subpart
do not apply to a regulated substance or
a substitute for a regulated substance
that is contained in a foam.
(b) [Reserved]
§ 84.116 Requirements for disposable
cylinders.

(a) As of January 1, 2025, any person
who uses a disposable cylinder must
send such disposable cylinder to either
a reclaimer certified under 40 CFR
82.164 or fire suppressant recycler,

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

consistent with the requirements in
paragraph (b) of this section, for its
remaining contents to be removed,
when:
(1) The disposable cylinder contains a
regulated substance;
(2) The disposable cylinder was used
in the servicing, repair, or installation of
refrigerant-containing equipment or fire
suppression equipment; and
(3) The person does not intend to use
the disposable cylinder in future
servicing, repair, or installation of
refrigerant-containing equipment or fire
suppression equipment.
(b) Disposable cylinders that meet the
criteria in paragraphs (a)(1), (2), and (3)
of this section must be sent to:
(1) A reclaimer certified under 40 CFR
82.164, if the disposable cylinder was
used in the servicing, repair, or
installation of refrigerant-containing
equipment, or
(2) A fire suppressant recycler, if the
disposable cylinder was used in the
servicing, repair, or installation of fire
suppression equipment.
(c) As of January 1, 2025, a reclaimer
certified under 40 CFR 82.164 or a fire
suppressant recycler who receives a
disposable cylinder meeting the criteria
in paragraphs (a)(1), (2), and (3) of this
section must remove all remaining
contents from the disposable cylinder
prior to disposal.
(d) Small cans of refrigerant that
contain no more than two pounds of
refrigerant and that qualify for the
exemption described in 40 CFR
82.154(c)(1)(ix) are not required to be
sent to a reclaimer certified under 40
CFR 82.164 and such small cans are not
required to have remaining regulated
substance removed from them prior to
disposal.
§ 84.118

Container tracking system.

(a) Scope and applicability. Machinereadable tracking identifiers may only
be generated by a person that produces,
imports, reclaims, recycles for fire
suppression use, repackages, or fills into
a container regulated substances for
distribution or sale in U.S. commerce
that could be used in servicing, repair,
or installation of refrigerant-containing
equipment or fire suppression
equipment and that reports to EPA
consistent with paragraph (d) of this
section. All containers of regulated
substances that enter U.S. commerce
and that could be used in servicing,
repair, or installation of refrigerantcontaining equipment or fire
suppression equipment, with the
limited exceptions described in
paragraph (b)(4) of this section, must
have a machine-readable tracking

PO 00000

Frm 00093

Fmt 4701

Sfmt 4702

72307

identifier affixed to them on the
following schedule:
(1) As of January 1, 2025, all
containers of regulated substances
imported and all containers sold or
distributed or offered for sale or
distribution by producers and importers
that could be used in servicing, repair,
or installation of refrigerant-containing
equipment or fire suppression
equipment must have a machinereadable tracking identifier affixed on
them.
(2) As of January 1, 2026, all
containers of regulated substances filled
and all containers sold or distributed or
offered for sale or distribution that
could be used in servicing, repair, or
installation of refrigerant-containing
equipment or fire suppression
equipment 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
machine-readable tracking identifier
affixed on them.
(3) As of January 1, 2027, every
container of regulated substances that
could be used in servicing, repair, or
installation of refrigerant-containing
equipment or fire suppression
equipment sold or distributed, offered
for sale or distribution, purchased or
received, or attempted to be purchased
or received must have a machinereadable tracking identifier affixed on
them.
(b) Prohibitions. Every kilogram of
regulated substances that could be used
in servicing, repair, or installation of
refrigerant-containing equipment or fire
suppression equipment that is 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. 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 sell or distribute,
or offer for sale or distribution, and no
person may purchase or receive, or
attempt to purchase or receive, a
container of regulated substance(s) that
could be used in servicing, repair, or
refrigerant-containing equipment or fire
suppression installation of equipment
unless the container has a valid
machine-readable tracking identifier
affixed on it.
(2) No person may sell or distribute,
or offer for sale or distribution,
regulated substances that could be used
in servicing, repair, or installation of

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

72308

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

refrigerant-containing equipment or fire
suppression equipment 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, regulated substances that could
be used in servicing, repair, or
installation of refrigerant-containing
equipment or fire suppression
equipment 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 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 MVAClike appliances.
(ii) The regulated substances were
previously used, have been recovered
from refrigerant-containing equipment
or fire suppression 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 refrigerantcontaining equipment or fire
suppression 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) of this section.
(iii) The regulated substances are
contained in small cans of refrigerant
that contain no more than two pounds
of refrigerant and that qualify for the
exemption described in 40 CFR
82.154(c)(1)(ix).
(iv) The regulated substances are
intended solely for uses other than in
refrigerant-containing equipment or fire
suppression equipment.
(c) Required practices. The following
practices are required, unless 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 regulated substances that
could be used in servicing, repair, or
installation of refrigerant-containing or

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

fire suppression equipment 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 or reclaimed regulated
substance that could be used in
servicing, repair, or installation of any
refrigerant-containing or fire
suppression equipment, or recycled
regulated substances that could be used
in servicing, repair, or installation of fire
suppression equipment, must
permanently affix a machine-readable
tracking identifier to the container 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 section,
examples of when a container of
regulated substances, reclaimed
regulated substances, or recycled
regulated substances 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 that could be used in
servicing, repair, or installation of
refrigerant-containing or fire
suppression equipment must ensure
there is a valid and legible machinereadable tracking identifier on each
container of regulated substance, scan
the machine-readable tracking identifier
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 machine-readable
tracking identifier on each container of
regulated substance and scan the
machine-readable tracking identifier in
the tracking system to identify a
transaction.
(d) Recordkeeping and reporting.
(1) Importers. Any person importing a
container of regulated substance that
could be used in servicing, repair, or
installation of refrigerant-containing or
fire suppression equipment must enter
the following information in the
tracking system to generate a machinereadable tracking identifier for each
container of regulated substance
imported: the name or brand the
regulated substance is being sold and/or

PO 00000

Frm 00094

Fmt 4701

Sfmt 4702

marketed under, the date it was
imported, the unique serial number
associated with the container, the size of
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, the entry
number and entry line number
associated with the import, and
certification that the contents of the
container match the substance(s)
identified on the label.
(2) Reclaimers. Any person filling a
container with a reclaimed regulated
substance that could be used in
servicing, repair, or installation of
refrigerant-containing equipment must
enter the following information in the
tracking system to generate a machine
readable-tracking identifier 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 size of the container,
the amount and name of the regulated
substance(s) in the container,
certification that the contents of the
container match the substance(s)
identified on the label, 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 that the contents of
the container are certified per
§ 84.112(d).
(3) Fire suppressant recyclers. Any
person filling a container with a
recycled regulated substance that could
be used in servicing, repair, or
installation of fire suppression
equipment must enter the following
information in the tracking system to
generate a machine-readable tracking
identifier 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, the size of the
container, certification that the contents
of the container match the substance(s)
identified on the label, and the amount
and name of the regulated substance(s)
in the container. If a container is filled

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
with recycled and virgin regulated
substance(s), the recycler must provide
the amount of virgin regulated
substance included in the container.
(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 tracking system and generate a
machine-readable tracking identifier for
the container(s) of packaged regulated
substances that could be used in
servicing, repair, or installation of
refrigerant-containing equipment or fire
suppression equipment that are 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, 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,
certification that the contents of the
container match the substance(s)
identified on the label, 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) Machine-readable tracking
identifier generators registration. Any
person who produces, imports,
reclaims, recycles for fire suppression
uses, repackages or fills a container of
regulated substances or reclaimed
regulated substances that could be used
in servicing, repair, or installation of
refrigerant-containing equipment or
recycled regulated substances that could
be used in the servicing, repair, or
installation of fire suppression
equipment must register with EPA in
the tracking system no later than the
first time they would be required to
generate a machine-readable tracking
identifier. The registration information
provided 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, and how the company
introduces regulated substances into
U.S. commerce. If any of the registration
information changes, these reports must
be updated and resubmitted within 60
days of the change.
(6) Supplier registration. Any person
who sells, distributes, or offers for sale
or distribution, regulated substances

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

that could be used in the servicing,
repair, or installation of refrigerantcontaining equipment or fire
suppression equipment must register
with EPA in the tracking system no later
than first time the person would be
required to update tracking information
in the system. The registration
information provided 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), and the
address of each facility that sells or
distributes regulated substances. If any
of the registration information changes,
these reports must be updated and
resubmitted within 60 days of the
change.
§ 84.120 Container tracking of used
cylinders.

(a) Scope and applicability. Cylinders
that contain regulated substances and
that have been used in the servicing,
repair, or installation of refrigerantcontaining equipment or fire
suppression equipment and that have a
machine-readable tracking identifier
affixed on them are subject to the
following tracking requirements, as
applicable, as of January 1, 2026:
(1) Any person receiving a cylinder
subject to requirements under paragraph
(a) of this section must be registered in
the tracking system no later than the
first time they would be required to
update information in the tracking
system.
(2) [Reserved]
(b) Disposable cylinders. (1)
Reclaimers and fire suppressant
recyclers.
(i) Upon receipt of a disposable
cylinder meeting the applicability
criteria in paragraph (a) of this section,
reclaimers certified under 40 CFR
82.164 and fire suppressant recyclers
must scan the machine-readable
tracking identifier affixed to the
cylinder and update the following
information in the tracking system: the
date the disposable cylinder was
received and the name, address, contact
person, email address, and phone
number of the person who sent the
disposable cylinder.
(ii) Upon removal of any remaining
regulated substance from the disposable
cylinder meeting the applicability
criteria in paragraph (a) of this section,
reclaimers certified under 40 CFR
82.164 and fire suppressant recyclers
must scan the machine-readable
tracking identifier affixed to the
cylinder and update the following
information in the tracking system: the
date that the regulated substances were

PO 00000

Frm 00095

Fmt 4701

Sfmt 4702

72309

removed from the disposable cylinder;
certification that all regulated
substances were removed; and the
amount and name of the removed
regulated substance(s).
(2) Suppliers. (i) Upon receipt of a
disposable cylinder meeting the
applicability criteria in paragraph (a) of
this section, distributors and
wholesalers must scan the machinereadable tracking identifier affixed to
the cylinder and update the following
information in the tracking system: the
date the disposable cylinder was
received and the name, address, contact
person, email address, and phone
number of the person who sent the
disposable cylinder.
(ii) [Reserved]
(c) Refillable cylinders. (1)
Exemptions.
(i) Refillable cylinders that contain
only regulated substances that were
previously used and have been
recovered refrigerant-containing
equipment or fire suppression
equipment and are intended for
reclamation or fire suppressant
recycling are exempt from the
requirements under this section.
(ii) [Reserved]
(2) Reclaimers and fire suppressant
recyclers.
(i) Upon receipt of a refillable
cylinder meeting the applicability
criteria in paragraph (a) of this section,
reclaimers certified under 40 CFR
82.164 and fire suppressant recyclers
must scan the machine-readable
tracking identifier affixed to the
cylinder and update the following
information in the tracking system: the
date the refillable cylinder was received
and the name, address, contact person,
email address, and phone number of the
person who sent the refillable cylinder.
(ii) Upon removal of any remaining
regulated substance from the refillable
cylinder meeting the applicability
criteria in paragraph (a) of this section,
reclaimers certified under 40 CFR
82.164 and fire suppressant recyclers
must scan the machine-readable
tracking identifier affixed to the
cylinder and update the following
information in the tracking system: the
date the remaining regulated substance
was removed from the refillable
cylinder, certification that all remaining
regulated substances were removed, and
the amount and name of the removed
regulated substance.
(3) Suppliers. (i) Upon receipt of a
refillable cylinder meeting the
applicability criteria in paragraph (a) of
this section, distributors and
wholesalers must scan the machinereadable tracking identifier affixed to
the cylinder and update the following

E:\FR\FM\19OCP2.SGM

19OCP2

lotter on DSK11XQN23PROD with PROPOSALS2

72310

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules

information in the tracking system: the
date the refillable cylinder was received
and the name, address, contact person,
email address, and phone number of the
person who sent the refillable cylinder.
(ii) [Reserved]
(4) Any person, other than those
meeting the requirements per
paragraphs (c)(2)(i) and (ii) of this
section, who refills a refillable cylinder
with regulated substances or a blend
containing regulated substances, is
subject to the following requirements:
(i) Upon receipt of a refillable
cylinder meeting the applicability
criteria in paragraph (a) of this section,
any person as described per paragraph
(c)(4) of this section must scan the
machine-readable tracking identifier
affixed to the cylinder and update the
following information in the tracking
system: the date the refillable cylinder
was received and the name, address,
contact person, email address, and
phone number of the person who sent
the refillable cylinder.
(ii) Upon removal of any remaining
regulated substance from the refillable
cylinder meeting the applicability
criteria in paragraph (a) of this section,
any person as described per paragraph
(c)(4) of this section must scan the
machine-readable tracking identifier
affixed to the cylinder and update the
following information in the tracking
system: the date the remaining regulated
substances were removed from the
refillable cylinder; and the amount and
name of the removed regulated
substance(s).
(iii) Upon refilling a refillable
cylinder, without removing the
remaining amount of regulated
substances, meeting the applicability
criteria in paragraph (a) of this section
with additional regulated substance or a
blend containing a regulated substance,
any person as described per paragraph
(c)(4) of this section must scan the
machine-readable tracking identifier
affixed to the cylinder and update the
following information in the tracking
system: the date the refillable cylinder
is refilled; and the amount and the name
of the regulated substance(s) that
remained in the refillable cylinder
before it was refilled.
(d) Small cans of refrigerant that
contain no more than two pounds of
regulated substances and that qualify for
the exemption at 40 CFR 82.154(c)(1)(ix)
are exempt from the tracking
requirements under this section.
§ 84.122 Treatment of data submitted
under 40 CFR part 84, subpart C.

(a) Except as otherwise provided in
this section, 40 CFR 2.201 through 2.215
and 2.301 do not apply to data

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

submitted under this subpart that EPA
has determined through rulemaking to
be either of the following:
(1) 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
(2) Data not otherwise entitled to
confidential treatment.
(b) Except as otherwise provided in
paragraph (d) of this section, 40 CFR
2.201 through 2.208 and 2.301(c) and (d)
do not apply to data submitted under
this subpart 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 (d) of
this section and 40 CFR 2.209.
(c) Upon receiving a request under 5
U.S.C. 552 for data submitted under this
subpart 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.
(d) A determination made through
rulemaking that information submitted
under this subpart is entitled to
confidential treatment shall continue in
effect unless, subsequent to the
confidentiality determination through
rulemaking, EPA takes one of the
following actions:
(1) EPA determines through a
subsequent rulemaking that the
information is emission data or data not
otherwise entitled to confidential
treatment; or
(2) 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).

PO 00000

Frm 00096

Fmt 4701

Sfmt 4702

§ 84.124

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.
PART 261—IDENTIFICATION AND
LISTING OF HAZARDOUS WASTE
3. The authority citation for part 261
continues to read as follows:

■

Authority: 42 U.S.C. 6905, 6912(a), 6921,
6922, 6924(y) and 6938.

Subpart A—General
4. In § 261.6, revise paragraph (a)(2)
and add paragraph (a)(2)(v) to read as
follows:

■

§ 261.6 Requirements for recyclable
materials.

(a) * * *
(2) The following recyclable materials
are not subject to the requirements of
this section but are regulated under
subparts C through Q of part 266 of this
chapter and all applicable provisions in
parts 268, 270, and 124 of this chapter.
*
*
*
*
*
(v) Ignitable spent refrigerants
recycled for reuse (40 CFR part 266,
subpart Q).
*
*
*
*
*
Subpart M—Emergency Preparedness
and Response for Management of
Excluded Hazardous Secondary
Materials
5. In § 261.400, revise the introductory
text and add paragraph (c) to read as
follows:

■

§ 261.400

Applicability.

The requirements of this subpart
apply to those areas of an entity
managing hazardous secondary
materials excluded under § 261.4(a)(23),
(a)(24), and/or, for ignitable spent
refrigerants, regulated under the
alternative standards at § 266 subpart Q,
where hazardous secondary materials
are generated or accumulated on site.
*
*
*
*
*
(c) Reclamation facilities receiving
refrigerant from off-site to be recycled
for reuse under § 266 subpart Q must
comply with §§ 261.410 and 261.420.

E:\FR\FM\19OCP2.SGM

19OCP2

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
PART 262—STANDARDS APPLICABLE
TO GENERATORS OF HAZARDOUS
WASTE
6. The authority citation for part 262
continues to read as follows:

■

Authority: 42 U.S.C. 6906, 6912, 6922–
6925, 6937, 6938 and 6939g.

Subpart A—General
7. In § 262.14, revise paragraph
(a)(5)(vi) to read as follows:

■

§ 262.14 Conditions for exemption for a
very small quantity generator.

(a) * * *
(5) * * *
(vi) A facility which:
(A) Beneficially uses or reuses, or
legitimately recycles or reclaims its
waste; or
(B) Treats its waste prior to beneficial
use or reuse, or legitimate recycling or
reclamation; and
(C) For ignitable spent refrigerants
regulated under part 266 subpart Q,
meets the requirements of that subpart;
or
*
*
*
*
*
PART 266—STANDARDS FOR THE
MANAGEMENT OF SPECIFIC
HAZARDOUS WASTES AND SPECIFIC
TYPES OF HAZARDOUS WASTE
MANAGEMENT FACILITIES
8. The authority citation for part 266
continues to read as follows:

■

Authority: 42 U.S.C. 1006, 2002(a), 3001–
3009, 3014, 3017, 6905, 6906, 6912, 6921,
6922, 6924–6927, 6934, and 6937.

9. Add to part 266, subpart Q
consisting of §§ 266.600 through
266.602 to read as follows:

■

Sec.
266.600 Purpose and applicability.
266.601 Definitions for this subpart.
266.602 Standards for facilities that recycle
ignitable spent refrigerant for reuse
under this subpart.

lotter on DSK11XQN23PROD with PROPOSALS2

Purpose and applicability.

(a) The purpose of this subpart is to
reduce emissions of ignitable spent
refrigerants to the lowest achievable
level by maximizing the recovery and
safe recycling for reuse of such
refrigerants during the maintenance,

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

§ 266.601

Definitions for this subpart.

For the purposes of this subpart, the
following terms have the meanings
given below:
(a) Refrigerant has the same meaning
as defined in 40 CFR 82.152.
(b) Recycle for reuse, when referring
to an ignitable spent refrigerant, means
to process the refrigerant to remove
contamination and prepare it to be used
again. ‘‘Recycle for reuse’’ does not
include recycling that involves burning
for energy recovery or use in a manner
constituting disposal as defined in
§ 261.2(c), or sham recycling as defined
in § 261.2(g).
(c) Lower flammability spent
refrigerant means a spent refrigerant
that does not have a flammability
classification of 3 (highly flammable)
under the most recent edition of ANSI/
ASHRAE Standard 34 Designation and
Safety Classification of Refrigerants.
§ 266.602 Standards for facilities that
recycle ignitable spent refrigerant for reuse
under this subpart.

Subpart Q—Ignitable Spent
Refrigerants Recycled for Reuse

§ 266.600

service, repair, and disposal of
appliances.
(b) The requirements of this subpart
operate in lieu of parts 262 through 270
and apply to lower flammability spent
refrigerants, as defined in § 266.601,
where the refrigerant exhibits the
hazardous waste characteristic of
ignitability per § 261.21 and is being
recycled for reuse in the U.S.
(c) These requirements do not apply
to other ignitable spent refrigerants.
Ignitable spent refrigerants not subject
to this subpart are subject to all
applicable requirements of parts 262
through 270 when recovered (i.e.,
removed from an appliance and stored
in an external container) and/or
disposed of.

(a) Persons who recycle ignitable
spent refrigerants for reuse either on-site
for further use in equipment of the same
owner, or in compliance with motor
vehicle air conditioner (MVAC)
standards in 40 CFR part 82, subpart B
must:
(1) Recover (i.e., remove from an
appliance and store in an external
container) and/or recycle for reuse the
ignitable spent refrigerant using
equipment that is certified for that type
of refrigerant and appliance under
§ 82.36 and 82.158; and
(2) Not speculatively accumulate the
ignitable spent refrigerant per § 261.1(c).

PO 00000

Frm 00097

Fmt 4701

Sfmt 4702

72311

(b) Persons receiving refrigerant from
off-site to be recycled for reuse under
this subpart must:
(1) Maintain certification by EPA
under § 82.164,
(2) Meet the emergency preparedness
and response requirements of 40 CFR
part 261, subpart M; and
(3) Not speculatively accumulate the
ignitable spent refrigerant per § 261.1(c).
PART 270—EPA ADMINISTERED
PERMIT PROGRAMS: THE
HAZARDOUS WASTE PERMIT
PROGRAM
10. The authority citation for part 270
continues to read as follows:

■

Authority: 42 U.S.C. 6905, 6912, 6924,
6925, 6927, 6939, and 6974.

Subpart A—General Information
11. In § 270.1, add paragraph (c)(2)(xi)
to read as follows:

■

§ 270.1 Purpose and scope of the
regulations in this part.

*

*
*
*
*
(c) * * *
(2) * * *
(xi) Recyclers of ignitable spent
refrigerants subject to regulation under
40 CFR part 266, subpart Q.
*
*
*
*
*
PART 271—REQUIREMENTS FOR
AUTHORIZATION OF STATE
HAZARDOUS WASTE PROGRAMS
12. The authority citation for part 271
continues to read as follows:

■

Authority: 42 U.S.C. 6905, 6912(a), 6926,
and 6939g.

Subpart A—Requirements for Final
Authorization
13. Amend § 271.1 by:
a. In table 1 in paragraph (j)(2) adding
the entry ‘‘[Date of publication of the
final rule in the Federal Register]’’ in
chronological order.
■ b. In table 2 in paragraph (j)(2) adding
the entry ‘‘[Date of publication of the
final rule in the Federal Register]’’ in
chronological order.
The additions read as follows:
■
■

§ 271.1

*

Purpose and scope.

*
*
(j) * * *
(2) * * *

E:\FR\FM\19OCP2.SGM

19OCP2

*

*

72312

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 / Proposed Rules
TABLE 1—REGULATIONS IMPLEMENTING THE HAZARDOUS AND SOLID WASTE AMENDMENTS OF 1984

Promulgation date
*
*
[Date of publication of the final
rule in the Federal Register].

Title of regulation

Federal Register reference

Effective date

*
*
*
Standards for the Management of [Federal Register citation of the
Ignitable Spent Refrigerants Refinal rule].
cycled for Reuse.

*
*
[Date of publication of the final
rule in the Federal Register].

1 These regulations implement HSWA only to the extent that they apply to tank systems owned or operated by small quantity generators, establish leak detection requirements for all new underground tank systems, and establish permitting standards for underground tank systems that
cannot be entered for inspection.
2 These regulations, including test methods for benzo(k)fluoranthene and technical standards for drip pads, implement HSWA only to the extent
that they apply to the listing of Hazardous Waste No. F032, and wastes that are hazardous because they exhibit the Toxicity Characteristic.
These regulations, including test methods for benzo(k)fluoranthene and technical standards for drip pads, do not implement HSWA to the extent
that they apply to the listings of Hazardous Waste Nos. F034 and F035.
3 The following portions of this rule are not HSWA regulations: §§ 264.19 and 265.19 for final covers.
4 The following portions of this rule are not HSWA regulations: §§ 260.30, 260.31, 261.2.
5 These regulations implement HSWA only to the extent that they apply to the standards for staging piles and to §§ 264.1(j) and 264.101(d) of
this chapter.

TABLE 2—SELF-IMPLEMENTING PROVISIONS OF THE HAZARDOUS AND SOLID WASTE AMENDMENTS OF 1984
Effective date
*
*
[Date of publication of the final rule in
the Federal Register].
1 Note
2 Note

Self-implementing provision

RCRA citation

*
*
Standards for the Management of Ignitable Spent Refrigerants Recycled
for Reuse.

*
3001(d)(4), 3004(n)

Federal Register reference
*
*
[Federal Register citation of the final
rule].

that the effective date was changed to Jan. 29, 1986 by the Nov. 29, 1985 rule.
that the effective date was changed to Sept. 22, 1986 by the Mar. 24, 1986 rule.

[FR Doc. 2023–22526 Filed 10–18–23; 8:45 am]

lotter on DSK11XQN23PROD with PROPOSALS2

BILLING CODE 6560–50–P

VerDate Sep<11>2014

18:48 Oct 18, 2023

Jkt 262001

PO 00000

Frm 00098

Fmt 4701

Sfmt 9990

E:\FR\FM\19OCP2.SGM

19OCP2