[Federal Register Volume 61, Number 113 (Tuesday, June 11, 1996)]
[Rules and Regulations]
[Pages 29485-29486]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14764]



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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 82

[FRL-5518-1]


Protection of Stratospheric Ozone

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of extension of stay.

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SUMMARY: This action temporarily extends a stay of the effectiveness of 
a certain reporting requirement in the petition process for the import 
of used class I controlled substances, but only extends the stay to the 
extent necessary to complete reconsideration (including any appropriate 
regulatory action) of the requirement. In the Federal Register 
published January 31, 1996, EPA announced, pursuant to Clean Air Act 
section 307(d)(7)(B), a three-month administrative stay and 
reconsideration of this reporting requirement (61 FR 3316). The 
provision at issue is 40 CFR 82.13(g)(2)(viii), promulgated under 
sections 604 and 606 of the Clean Air Act, which requires the importer 
of a used class I controlled substance to certify that the purchaser of 
the controlled substance is liable for the tax.
    In the same Federal Register published January 31, 1996, pursuant 
to Clean Air Act section 301(a)(1), EPA proposed an extension of the 
stay beyond the three-month administrative stay, but only to the extent 
necessary to complete reconsideration (including any appropriate 
regulatory action) of the rule in question (61 FR 3361). This action 
finalizes the proposed extension. Sufficient concerns have been raised 
regarding this provision that EPA believes it is appropriate not only 
to reconsider the provision, but also to stay the requirement during 
the period of reconsideration, which will extend beyond the three-month 
period provided under the administrative stay.

EFFECTIVE DATE: July 11, 1996.

FOR FURTHER INFORMATION CONTACT: Tom Land, Stratospheric Protection 
Division, Office of Air and Radiation, U.S. Environmental Protection 
Agency (6205-J), 401 M Street, SW., Washington, DC 20460, (202) 233-
9185. The Stratospheric Ozone Information Hotline at 1-800-296-1996 can 
also be contacted for further information.

SUPPLEMENTARY INFORMATION:

Regulated Entities

    Entities potentially regulated by this action are those that wish 
to import used class I controlled ozone-depleting substances. Class I 
controlled ozone-depleting substances are listed in Appendix A of the 
Federal Register published May 10, 1995 (60 FR 4970). Regulated 
categories and entities include:

------------------------------------------------------------------------
              Category                  Examples of regulated entities  
------------------------------------------------------------------------
Industry............................  Importers of used class I ozone-  
                                       depleting substances.            
------------------------------------------------------------------------

    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 is now aware 
could potentially be regulated by this action. Other types of entities 
not listed in the table could also be regulated. To determine whether 
your company is regulated by this action, you should carefully examine 
the applicability criteria in Sec. 82.13(g)(2) of the rule and/or 
applicability criteria in Sec. 82.13(g)(2) of title 40 of the Code of

[[Page 29486]]

Federal Regulations. If you have questions regarding the applicability 
of this action to a particular entity, consult the person listed in the 
preceding FOR FURTHER INFORMATION CONTACT section.

I. Background

    In the Federal Register published January 31, 1996, EPA announced 
that, pursuant to Clean Air Act section 307(d)(7)(B), 42 U.S.C. 
7607(d)(7)(B), the Agency was convening a proceeding for 
reconsideration of 40 CFR 82.13(g)(2)(viii), which requires an importer 
petitioning to import used class I controlled substances to certify 
that the purchaser of the controlled substance is liable for the tax 
(61 FR 3316). EPA had promulgated this provision as a final federal 
rule on May 10, 1995, under sections 604 and 606 of the Clean Air Act 
(60 FR 24970). Readers should refer to the notice of reconsideration 
for a complete discussion of the background and provision affected. In 
the notice of reconsideration EPA also announced a three-month 
administrative stay of the effectiveness of 40 CFR 82.13(g)(2)(viii) 
during reconsideration, pursuant to Clean Air Act section 307(d)(7)(B), 
42 U.S.C. 7607(d)(7)(B). In an accompanying notice, EPA proposed to 
extend the stay beyond the three-month administrative stay, pursuant to 
Clean Air Act section 301(a)(1), 42 U.S.C. 7601(a)(1), but only to the 
extent necessary to complete reconsideration (including any appropriate 
regulatory action) of the rule in question (61 FR 3361). EPA received 
one comment on this proposal, which is addressed below.
    EPA did not complete reconsideration (including appropriate 
regulatory action) within the three-month period of the administrative 
stay, and is now extending the stay of this provision until the Agency 
completes reconsideration. The stay will extend until the effective 
date of EPA's final action following reconsideration of this rule.
    EPA is staying the reporting requirement contained in 40 CFR 
82.13(g)(2)(viii) and associated compliance dates in order to complete 
reconsideration of this provision, and take appropriate action, 
following the notice and comment procedures of section 307(d) of the 
Clean Air Act. If, after reconsideration of this provision, EPA 
determines that it is appropriate to impose new requirements that are 
stricter than the existing rules, EPA will propose an adequate 
compliance period from the date of final action on reconsideration. EPA 
will seek to ensure that the affected parties are not unduly prejudiced 
by the Agency's reconsideration. EPA expects that any EPA proposal 
regarding changes to the tax liability certification requirement for a 
petition for the import of used class I controlled substances would be 
subject to the notice and comment procedures of Clean Air Act section 
307(d).

II. Comments

    EPA received only one comment on the proposed extension of the 
stay. The commenter stated that further reconsideration of the 
reporting requirement is unnecessary because ``the Internal Revenue 
Service (IRS) has subsequently clarified that the tax is, indeed, due 
upon first sale or use after import.'' The commenter also stated that 
it supports EPA's petition process requiring all importers of used 
Class I substances to supply information to the Agency, including the 
certification of liability for the tax. The commenter was concerned 
that delay in imposing the full petition requirements could result in 
additional illegal CFCs entering the U.S.
    EPA believes that a stay of the provision is appropriate to ensure 
that the Agency meets the procedural requirements for rulemaking and 
because a temporary stay should not unduly hinder EPA's enforcement of 
the requirements for imports of used Class I substances. On May 31, 
1995, PAACO International, Inc., an importer of used class I controlled 
ozone-depleting substances, petitioned EPA for reconsideration of the 
certification provision at issue. The petitioner asserted that EPA did 
not give the public notice of the requirement and therefore it was 
``impracticable to raise objections'' to the provision during the 
public comment period. The petitioner also claimed that the objections 
are of central relevance to the rule because it believes that 
``purchasers'' are not liable for the tax, it could not certify 
liability, and it could not conduct its business under the rule. EPA 
granted the request for reconsideration and stay of the provision, 
recognizing that the proposed rule did not discuss the possibility of a 
certification of liability for taxes. EPA believes it would not be 
appropriate to reimpose the provision prior to conducting a notice and 
comment rulemaking on such provision.
    Moreover, EPA believes the stay does not unduly hinder the Agency's 
ability to control illegal imports of used class I controlled 
substances. The stay only applies to the one certification requirement 
in Sec. 82.13(g)(2)(viii), and the remainder of the petition 
requirement remains intact. In addition, the stay is temporary, and 
through the process of reconsidering the requirement, EPA will 
determine whether to conduct a rulemaking to reimpose the certification 
requirement or a variant thereof. To the extent that the comment urges 
EPA to retain the certification requirement as is, EPA will take the 
comment into account in reconsidering the certification requirement.
    Thus, with today's action, EPA temporarily extends the stay of 40 
CFR 82.13(g)(2)(viii) until EPA has completed final reconsideration 
(including any appropriate regulatory action) of the rule in question.

List of Subjects in 40 CFR Part 82

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Chemicals, Chlorofluorocarbons, Exports, 
Hydrochlorofluorocarbons, Imports, Interstate commerce, Nonessential 
products, Reporting and recordkeeping requirements, Stratospheric ozone 
layer.

    Dated: June 3, 1996.
Carol M. Browner,
Administrator.
    Part 82, chapter I, title 40, of the Code of Federal Regulations, 
is amended to read as follows:

PART 82--PROTECTION OF STRATOSPHERIC OZONE

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

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

    2. Section 82.13 is amended by adding paragraph (g)(2)(xi) to read 
as follows:


Sec. 82.13  Recordkeeping and reporting.

* * * * *
    (g) * * *
    (2) (xi) Rules stayed for reconsideration. Notwithstanding any 
other provisions of this subpart, the effectiveness of 40 CFR 
82.13(g)(2)(viii) is stayed from July 11, 1996 until the completion of 
the reconsideration of 40 CFR 82.13(g)(2)(viii).
* * * * *
[FR Doc. 96-14764 Filed 6-10-96; 8:45 am]
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