[Federal Register Volume 63, Number 154 (Tuesday, August 11, 1998)]
[Rules and Regulations]
[Pages 42728-42734]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21525]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 82

[FRL-6136-8]
RIN: 2060-AI07


Protection of Stratospheric Ozone: Halon Recycling and Recovery 
Equipment Certification

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final determination.

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SUMMARY: Today's action consists of EPA's determination that it is 
neither necessary nor appropriate under section 608(a)(2) of the Clean 
Air Act as amended in 1990 (CAA or ``Act'') to issue a proposed rule 
requiring the certification of recycling and recovery equipment for 
halons; and further, that it is neither necessary nor appropriate under 
section 608(a)(2) of the CAA to require that halons be removed only 
through the use of certified equipment. Halons are gaseous or easily 
vaporized halocarbons used primarily for fire and explosion protection 
and are listed as group II, Class I ozone-depleting substances (ODSs) 
under 40 CFR part 82, subpart A. Section 608 of the CAA directs EPA to 
issue regulations which reduce the use and emissions of ozone-depleting 
substances to the lowest achievable level and which maximize the 
recapture and recycling of such substances. In developing regulations 
concerning use, emissions and recycling, EPA considers both 
technological and economic factors. The objective of an equipment 
certification program, and associated provisions allowing the removal 
of halons only through the use of certified equipment, would be to 
verify that all recycling and recovery equipment sold was capable of 
minimizing emissions, and that such certified equipment was in fact 
used, thereby minimizing emissions during recycling and recovery 
activities. Research completed by EPA in association with this 
determination, however, suggests that the great majority of halon 
recovery and recycling equipment currently in use or on the market 
consists of highly efficient halon closed recovery systems achieving a 
minimum recovery efficiency of 98%. Entities which perform the vast 
majority of halon transfers employ these efficient units. Operations 
utilizing less efficient halon recycling and recovery equipment and 
methods are estimated to account for less than 1% of total annual halon 
emissions in the United States during recycling and recovery 
activities. With regard to halon emissions arising from the use of 
inefficient, non-closed halon recovery and recycling devices, sections 
82.270(d) and (e) of an EPA rule issued March 5, 1998 (63 FR 11084), 
were intended to eliminate the use of such devices and restrict halon 
recovery and recycling equipment to the highly efficient category of 
closed recovery

[[Page 42729]]

systems currently widely used in industry. For these reasons, EPA 
determines that no further environmental advances can be made in regard 
to the CAA section 608 goals of reducing halon use or emissions, or 
maximizing halon recapture or recycling, through a halon recovery and 
recycling equipment certification program.

EFFECTIVE DATE: This direct final determination is effective on October 
13, 1998 without further notice unless the EPA receives adverse comment 
by September 10, 1998. If adverse comment is received, the EPA will 
publish a timely withdrawal of the direct final determination in the 
Federal Register and inform the public that the determination will not 
take effect.

ADDRESSES: Comments on this determination should be sent to Docket No. 
A-98-37, U.S. Environmental Protection Agency, OAR Docket and 
Information Center, Room M-1500, Mail Code 6102, 401 M Street, S.W., 
Washington, D.C. 20460. The docket may be inspected from 8:00 a.m. 
until 5:30 p.m., weekdays. The docket phone number is (202) 260-7548, 
and the fax number is (202) 260-4400. A reasonable fee may be charged 
for copying docket materials. A second copy of any comments should also 
be sent to Lisa Chang, U.S. Environmental Protection Agency, 
Stratospheric Protection Division, 401 M Street, S.W., Mail Code 6205J, 
Washington, D.C. 20460 if by mail, or at 501 3rd Street, N.W., Room 
267, Washington, D.C. 20001 if comments are sent by courier delivery.

FOR FURTHER INFORMATION CONTACT: Lisa Chang at (202) 564-9742 or fax 
(202) 565-1096, U.S. Environmental Protection Agency, Stratospheric 
Protection Division, Mail Code 6205J, 401 M Street, S.W., Washington, 
D.C. 20460.

SUPPLEMENTARY INFORMATION: The contents of this direct final 
determination are listed in the following outline:

I. Background
    A. Section 608 of the Clean Air Act
    B. Sierra Club Suit
    C. Halons
    D. Today's Action
II. Basis for Today's Action
    A. Halon Emissions
    B. Current Practices
    C. Existing Certification Programs
    D. Prior Halon Regulation
    E. Discussion and Conclusion
    F. References
III. Administrative Requirements
    A. Executive Order 12866
    B. Regulatory Flexibility Act
    C. Submission to Congress and the Comptroller General
    D. Paperwork Reduction Act
    E. Unfunded Mandates Requirement Act
    F. Executive Order 13045--Children's Health
IV. Judicial Review

I. Background

A. Section 608 of the Clean Air Act

    Section 608 of the CAA (42 U.S.C. 7671g) sets forth certain 
requirements for a national recycling and emission reduction program 
aimed at Class I and Class II ozone-depleting substances, including 
halons, and their substitutes. Class I and Class II ozone-depleting 
substances are designated as such under section 602 of the Act, in 
accordance with the Montreal Protocol on Substances that Deplete the 
Ozone Layer, an international agreement to which the United States is a 
party. Section 608 further directs that the national recycling and 
emission reduction regulations must ``reduce the use and emission of 
such substances to the lowest achievable level,'' and ``maximize the 
recapture and recycling of such substances.'' Section 608(a)(1) of the 
Act provides for a national recycling and emission reduction program 
with respect to Class I substances that are used as refrigerants; 
section 608(a)(2) provides for such a program for all other Class I and 
Class II substances, including halons.

B. Sierra Club Suit

    The Sierra Club sued EPA in the U.S. District Court for the 
District of Columbia on March 31, 1995, claiming that EPA had not 
fulfilled its obligation to promulgate regulations establishing 
standards and requirements regarding use and disposal for non-
refrigerant Class I and Class II substances under section 608(a)(2) of 
the CAA. In a consent decree (notice of which was published on 
September 17, 1996, in the Federal Register at 61 FR 48950) EPA agreed 
to consider appropriate regulation of halons. Under the terms of the 
consent decree, EPA agreed to take the following actions with regard to 
halons: (1) To issue a proposed rule regarding a ban on the sale of all 
halon blends and to take final action on the proposal; (2) to issue a 
proposed rule or rules regarding the intentional release of halons 
during repair and testing of equipment containing halons; training 
concerning the use of such equipment; disposal of halons; and removal 
or disposal of equipment containing halons at the end of the life of 
such equipment; and to take final action on the proposal; and (3) to 
issue either a proposed rule requiring the certification of recycling 
and recovery equipment for halons and allowing the removal of halons 
only through the use of certified equipment or a direct final 
determination that no such rule is either necessary or appropriate 
under section 608(a)(2) of the Clean Air Act. EPA addressed items (1) 
and (2) with a proposed (62 FR 36428) and final (63 FR 11084) rule. 
Today's action addresses item (3).
    EPA's agreement in regard to item (3) was based in part on EPA's 
commitment to complete a study assessing the feasibility of certifying 
halon recycling and recovery equipment and allowing removal of halons 
only through use of certified equipment. The study, ``Assessment of the 
Need for a Halon Recovery/Recycling Equipment Certification Program'' 
(hereafter referred to as ``the halon recovery/recycling equipment 
study,'' or ``EPA (1998)'') characterized the size and makeup of the 
domestic halon recovery and recycling industry, its current practices 
and equipment, and the likely environmental benefits achievable by its 
further regulation. During May-June of 1998, the report was reviewed by 
several technical experts as well as a larger group drawn from 
stakeholder communities including industry, non-governmental 
environmental organizations, and government. The report and reviewers' 
comments are available in the Docket for this action. These materials 
have provided an important foundation for today's direct final 
determination.

C. Halons

    Halons are gaseous or easily vaporized halocarbons used primarily 
for putting out fires, but also for explosion protection. The two 
halons most widely used in the United States are Halon 1211 and Halon 
1301. Halon 1211 is used primarily in streaming applications; recovered 
Halon 1211 is primarily used by the military and equipment distributors 
to fill or recharge portable fire extinguishers. Some Halon 1211 is 
also stockpiled and resold by commercial recycling facilities. Halon 
1301 is typically used in total flooding applications; the market for 
recovered Halon 1301 is driven primarily by servicers of halon fire 
protection systems, the military, and large commercial interests 
including airlines. System servicers use recovered Halon 1301 to 
recharge systems, to stockpile for future sale, to sell to other 
servicers, or to sell to military or commercial interests (EPA, 1998). 
Very limited use of Halon 2402 exists in the United States as an 
extinguishing agent in engine nacelles on older aircraft and in the 
guidance system of Minuteman missiles. Although Halon 2402 is an

[[Page 42730]]

effective fire extinguishing agent, use in North America and Europe has 
been very limited due to safety concerns (UNEP, 1994). Halon 2402 was 
and continues to be used mainly in the Russian Federation and in other 
countries with economies in transition (CEIT) (UNEP, 1998). Because of 
the very limited use of Halon 2402, EPA's study, as well as the 
discussions contained within this final determination, focus on 
describing recovery and recycling practices for Halons 1211 and 1301. 
Nevertheless, all EPA halon regulations and determinations, including 
today's action, issued under Title VI of the CAA are intended to cover 
all group II, Class I substances listed in appendix A to subpart A of 
40 CFR part 82--that is, Halon 1211, Halon 1301, Halon 2402, and all 
isomers of these substances. Halons are used in a wide range of fire 
protection applications because they combine several marked advantages 
over other extinguishing agents. For a further discussion of the 
properties of halons for fire protection applications see 63 FR 11084.
    Despite these advantages, halons are among the most ozone-depleting 
chemicals in use today. With 0.2 ozone-depleting potential (ODP) 
representing the threshold for classification as a Class I substance, 
Halon 1301 has an estimated ODP of 10; Halon 1211 has an estimated ODP 
of 3. Thus, while total halon production (measured in metric tons) 
comprised just 2 percent of the total production of Class I substances 
in 1986, halons represented 23 percent of the total estimated ozone 
depletion attributable to Class I substances produced during that year. 
Prior to the early 1990's, the greatest releases of halon into the 
atmosphere occurred not in extinguishing fires, but during testing and 
training, service and repair, and accidental discharges. Data generated 
as part of the Montreal Protocol's technology assessment indicated that 
only 15 percent of annual Halon 1211 emissions and 18 percent of annual 
Halon 1301 emissions occur as a result of use to extinguish actual 
fires. These figures indicated that significant gains could be made in 
protecting the ozone layer by revising testing and training procedures 
and by limiting unnecessary discharges through better detection and 
dispensing systems for halon and halon alternatives. The fire 
protection community began to conserve halon reserves in response to 
the impending ban on the production and import of Halons 1211, 1301, 
and 2402 that occurred January 1, 1994. Through standards, research, 
and field practice, the fire protection community eliminated most 
discharge testing with halons and minimized use of halon for testing 
and training. Additionally, fire equipment distributors began to 
service and maintain fire suppression equipment regularly to avoid 
leaks, false discharges, and other unnecessary emissions.
    Nevertheless, because of the significant environmental concern 
associated with halons, EPA contemplated further regulatory activity to 
strengthen already conservative halon use, transfer, and recycling 
practices in the industry. On March 5, 1998, EPA issued a final rule 
(63 FR 11084, hereafter referred to as ``the March 5 rule'') 
establishing training requirements for technicians who handle halon-
containing equipment; banning releases of halons during the testing, 
maintenance, repair, servicing, and disposal of halons and halon-
containing equipment and during technician training; and providing that 
halons and halon-containing equipment may be disposed of only by 
sending such halon or equipment for recycling or recovery, 
respectively, by a facility operating in accordance with the voluntary 
industry standards established by the National Fire Protection 
Association (NFPA), ``NFPA 10'' and ``NFPA 12A,'' or by sending halon 
for destruction by an EPA-approved method. This rule more fully 
extended conservative practices throughout the fire protection and 
halon recycling communities, and ensured continued observance of such 
practices in the event of changes in the halon market conditions that 
significantly contributed to their adoption. The effect of the March 5 
rule on halon recycling and recovery practices is discussed further 
below.

D. Today's Action

    Today's action consists of EPA's determination that it is neither 
necessary nor appropriate under section 608(a)(2) of the CAA to issue a 
proposed rule requiring the certification of recycling and recovery 
equipment for halons; and further, that it is neither necessary nor 
appropriate under section 608(a)(2) of the CAA to require that halons 
be removed only through the use of certified equipment. The principal 
basis for this determination is that such requirements would provide no 
significant advancement toward the objectives of reducing halon use or 
emissions to lowest achievable levels, or maximizing their recapture 
and recycling, as directed by section 608. The environmental gains that 
could have been made in this regard through such requirements have 
already been realized through recently promulgated EPA regulations 
concerning halons (63 FR 11084).

II. Basis for Today's Action

A. Halon Emissions

    Total annual Halon 1211 emissions (includes all legitimate--e.g., 
fire extinguishing--as well as incidental--e.g., transfer loss--
releases) in the United States has been estimated at 1,079 tonnes for 
1997 (this is against a total stock for North America, including the 
United States, of more than 27,000 tonnes of Halon 1211; UNEP, 1998; 
EPA, 1998). Estimated temporal trends in halon emissions suggest that 
emission data for 1997 are reasonably representative of recent and 
near-future years; trends in emissions are briefly noted at the end of 
this section. The quantity of Halon 1211 subjected to recovery attempts 
for the same year, for the United States, is estimated at 298 tonnes 
(EPA, 1998).
    Facilities performing Halon 1211 recovery and recycling operations 
can be grouped into three broad classes: large-scale commercial 
recyclers, large servicers of halon extinguishers, and small servicers 
of halon extinguishers. The numbers of facilities in each of these 
categories, as well as the relative volume of Halon 1211 transfers 
performed by each category, have recently been estimated. While 
constituting the smallest number of such facilities, large-scale 
commercial recyclers accounted for the greatest quantity of Halon 1211 
transfers, and the relatively large number of entities in the small 
servicer category accounted for a relatively small portion of halon 
transfers (EPA, 1998; Table 1). In addition, the types of equipment and 
practices employed among these groups of facilities have been 
evaluated. In general, facilities were found to employ either highly 
efficient, closed recovery units of the type called for under sections 
82.270(d) and (e) of the March 5 rule, with halon recovery efficiencies 
of approximately 98%; or pressure transfer and other non-closed halon 
recovery systems and methods, with recovery efficiencies as low as 90%, 
and of the type whose use sections 82.270(d) and (e) of the March 5 
rule were designed to prohibit.
    It was further estimated that of the 298 tonnes of Halon 1211 
subjected to recovery attempts for 1997, approximately 95% is recovered 
by large scale commercial recyclers and large servicers of halon 
extinguishing systems using highly efficient closed recovery units, and 
the remaining 5%

[[Page 42731]]

by small servicers utilizing a range of methods, including both high-
efficiency halon recovery units, as well as low-efficiency non-closed 
equipment and methods. Annual Halon 1211 losses to the atmosphere 
arising from transfers from each group, as a percentage of total annual 
Halon 1211 emissions in the United States for 1997, are estimated at 
-0.3% (large-scale commercial recyclers); -0.2% (large servicers of 
halon extinguishers); and -0.1% (small servicers of halon 
extinguishers) (EPA, 1998; Table 1). It should be noted that the rate 
of Halon 1211 extinguisher decommissioning is expected to increase over 
the next several years, leading to a slight increase in emissions due 
to an increased volume of recovery and recycling activity (EPA, 1998), 
followed by decreases projected through the year 2030 (UNEP, 1998).
    Regarding Halon 1301, total annual emissions (again, including all 
legitimate as well as incidental releases) in the United States was 
estimated at 786 tonnes for 1997). This compares to a total North 
America Halon 1301 stock of more than 17,000 tonnes (UNEP, 1998; EPA, 
1998). Approximately 981 tonnes of Halon 1301 were subjected to 
recovery attempts for the same year in the United States. The high 
recovery rate relative to Halon 1211 reflects a higher demand for Halon 
1301.
    As with Halon 1211, the same three general classes of facilities 
performing halon recovery and recycling operations can be identified 
and their numbers and practices broadly characterized (Table 2). 
Significant economic and operational differences between Halon 1211 and 
Halon 1301 recovery and recycling practices and sectors exist. However, 
research indicates that as with Halon 1211, approximately 95% of the 
Halon 1301 recovered annually is recovered using highly efficient 
closed recovery units, with the remaining 5% by a range of methods 
including both high-efficiency closed recovery systems, as well as low-
efficiency, non-closed equipment and methods (Table 2). Annual Halon 
1301 losses to the atmosphere arising from transfers from each group of 
facilities performing recovery and recycling operations, expressed as a 
percentage of total annual Halon 1301 emissions in the United States 
for 1997, are estimated at -2% (large-scale commercial recyclers), -1% 
(large servicers of halon extinguishers); and -0.1-1% (small servicers 
of halon extinguishers) (EPA, 1998; Table 2). The rate at which Halon 
1301 fire protection systems are decommissioned is expected to decrease 
over the next several years, leading to a slight decrease in emissions, 
with slowly declining emissions projected through the year 2030 (EPA, 
1998; UNEP, 1998).

                                            Table 1.--Halon 1211 Recovery and Recycling in the United States                                            
                                                               [Data for 1997; EPA, 1998]                                                               
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                                                                           (C)  Percent                                                         (G)     
                                                                           of Halon 1211   (D)  Quantity  (E)  Estimated                   Contribution 
                                                          (B)  Number of  transferred by   of Halon 1211     recovery     (F)  Estimated   to Total U.S.
                 (A)  Type of operation                    organizations       these        transferred    efficiency of     emissions     Annual Halon 
                                                           of this type    organizations     annually     equipment used    (tonnes/yr)   1211 Emissions
                                                                             annually       (tonnes/yr)      (percent)          \2\        (Percent) \3\
------------------------------------------------------------------------------------------------\1\-----------------------------------------------------
Large-scale commercial recyclers........................             4-6           60-65         179-194              98         3.6-3.9            -0.3
Large servicers of halon extinguishers..................              20           30-35          89-104              98         1.8-2.1            -0.2
Small servicers of halon extinguishers..................             \4\               5              15           90-98         0.3-1.5            -0.1
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\1\ Calculated by multiplying percent of Halon 1211 transferred by type of operation (column (C)) by 298 tonnes/yr, the estimated total quantity of     
  Halon 1211 subjected to recovery attempts in 1997.                                                                                                    
\2\ Calculated by multiplying equipment transfer loss rate (100% minus estimated recovery efficiency of equipment, or column (E)) by total quantity of  
  Halon 1211 recovered by each type of operation (column (D)).                                                                                          
\3\ Calculated by dividing Halon 1211 estimated emissions for each type of operation (column (F)) in 1997 by the total mass of Halon 1211 emitted for   
  1997 (estimated at 1,079 tonnes).                                                                                                                     
\4\ Several hundred.                                                                                                                                    


                                            Table 2.--Halon 1301 Recovery and Recycling in the United States                                            
                                                               [Data for 1997; EPA, 1998]                                                               
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                                                                           (C)  Percent                                                                 
                                                                           of Halon 1301   (D)  Quantity                                                
                                                          (B)  Number of    transferred    of Halon 1301  (E)  Estimated  (F)  Estimated     (G)  % of  
                 (A)  Type of operation                    organizations     annually      recovered and     Recovery        Emissions     Total Annual 
                                                           of this type      (excludes       recycled      Efficiency of    (tonnes/yr)     Halon 1301  
                                                                            North Slope      annually     Equipment Used        \2\        Emissions \3\
                                                                           and military)    (tonnes/yr)                                                 
------------------------------------------------------------------------------------------------\1\-----------------------------------------------------
Large-scale commercial recyclers........................            4--6              70             686              98              14              -2
Large servicers of halon extinguishing systems..........              12              25             245              98               5              -1
Small servicers of halon extinguishing systems..........            -100               5              49          90--98            1--5         -0.1-1%
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\1\ Calculated by multiplying percent of Halon 1301 transferred by type of operation (column (C)) by 981 tonnes/yr, the estimated total quantity of     
  Halon 1301 subjected to recovery attempts in 1997.                                                                                                    
\2\ Calculated by multiplying equipment transfer loss rate (100% minus estimated recovery efficiency of equipment, or column (E)) by total quantity of  
  Halon 1301 recovered by each type of operation (column (D)).                                                                                          
\3\ Calculated by dividing Halon 1301 estimated emissions for each type of operation (column (F)) in 1997 by the total mass of Halon 1301 emitted for   
  1997 (estimated at 786 tonnes).                                                                                                                       


[[Page 42732]]

B. Current Practices

    The recovery and recycling infrastructure for both Halon 1211 and 
1301 has been in place for many years, but since the signing of the 
Montreal Protocol, halon recovery and recycling have increased 
markedly. As a result, related services and necessary equipment have 
become widely available in the United States. Halon recovery and 
recycling, in general, are performed by large-scale commercial halon 
recycling concerns, large servicers of halon fire extinguishers, and 
small servicers of halon fire extinguishers (see previous section for 
further discussion). Research indicates that for Halon 1211 recovery 
and recycling, all units currently on the market, and most units 
currently in use, are highly efficient closed halon recovery systems, 
with recovery efficiencies of 98% or greater (EPA, 1998). Research 
similarly suggests that for Halon 1301 the majority of equipment 
currently in use, and all equipment currently on the market, are highly 
efficient halon closed recovery systems with recovery efficiencies 
exceeding 98% (EPA, 1998).
    Halon recovery and recycling equipment includes equipment that 
processes Halon 1211, equipment that processes Halon 1301, equipment 
capable of processing more than one halon, and units capable of 
processing halon as well as other chemicals (EPA, 1998). The 
manufacture of halon recovery, recycling, and reclamation equipment in 
the United States has centered around several firms since 1980, 
including Getz Manufacturing (a subsidiary of Amerex Fire International 
Inc.), FRC International Corporation, Walter Kidde Aerospace, and 
Neutronics Inc.
    Halon 1211 recycling equipment manufacture was most vigorous in the 
1980s, with the majority of sales occurring just prior to the ban on 
halon manufacturing in January 1994. Over 1,000 Halon 1211 recovery/
recycling units have been sold worldwide, with approximately half of 
these sales attributed to the U.S. military and Halon 1211 
extinguishing system manufacturers in the United States. The market for 
Halon 1211 recovery/recycling units appears to be virtually saturated 
within the United States and equipment currently in use is expected to 
last as long as halon recovery and recycling equipment is needed 
domestically (EPA, 1998).
    The high value of recovered Halon 1301 created a demand for 
recovery/recycling units as early as 1980. Hundreds of early models of 
relatively less-efficient recovery/recycling units were sold between 
1980 and 1990, but sales of these units declined considerably with the 
introduction of more efficient, effective systems in the late 1980s. 
Consultation with industry experts suggests that it is highly unlikely 
that many of these less efficient units are still in use today (EPA, 
1998); it is believed that the majority of operations that perform 
Halon 1301 transfers and recycling utilize systems that have recovery 
efficiencies exceeding 98%.
    In summary, recent research suggests that the great majority of 
equipment currently in use or on the market for halon recovery and 
recycling is highly efficient halon closed recovery systems achieving a 
minimum recovery efficiency of 98%. Furthermore, the market for halon 
recovery/recycling equipment is virtually saturated. Entities which 
perform the vast majority of halon transfers employ these efficient, 
closed halon recovery units. Although there is some number of 
facilities performing halon transfers using devices with poor (e.g., 90 
percent) recovery efficiencies, such operations at most are estimated 
to account for approximately 1 percent of total halon emission in the 
United States annually. It should be emphasized that certain provisions 
of the EPA rule published on March 5, 1998 were intended to prohibit 
the use of the less efficient, non-closed halon recovery and recycling 
methods responsible for these small releases of halons to the 
atmosphere.

C. Existing Certification Programs

    The chief objective of an equipment certification program would be 
to verify that all recycling or recovery equipment sold was capable of 
minimizing emissions; a statement of this objective can be found in the 
discussion of a similar refrigerant recovery and recycling equipment 
certification program established under section 608(a) (58 FR 28660, 
28682).1 The specific provisions of the refrigerant 
recycling equipment certification program were developed based chiefly 
on (1) consideration of operating specifications of equipment extant at 
the time (e.g., in establishing performance standards for vapor 
recovery efficiencies); (2) considerations of economics and the 
relative public benefits and private costs at stake (e.g., in 
considering the appropriateness of establishing equipment recovery rate 
standards); and (3) consideration of existing equipment capabilities, 
and capabilities likely to be achievable with technological advances 
(e.g., in considering allowable purge losses).
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    \1\ Significant contrasts between the commercial and 
technological contexts surrounding the refrigerants and the halons, 
however, lead to divergent conclusions regarding the necessity and 
appropriateness of recovery and recycling equipment certification 
programs for these broad groups of ozone-depleting substances 
(ODSs). For example, because the refrigerant recycling rule was 
issued in 1993, prior to the phaseout of refrigerant production 
(1996), economic incentives to develop high-efficiency refrigerant 
recovery practices and equipment were limited. In contrast, 
production of halons was phased out in 1994, strongly contributing 
to an increase in the economic value of halons, and incentives for 
the development of today's generally efficient recovery practices. 
As a result, while it was necessary for refrigerant recovery and 
recycling regulations to include a greater level of prescriptive 
detail regarding methods of recovery and recycling, much less need 
currently exists to prescribe efficient transfer, recovery, and 
recycling practices with respect to halons, as such practices have 
developed in the years since the phaseout of halon production.
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    A program to certify halon recovery and recycling equipment would 
likely require initial certification of equipment makes and models (and 
additional certification provisions for makes and/or models no longer 
in production) to be performed by laboratories or organizations to be 
approved by EPA and subsequent periodic certification of such equipment 
by conducting periodic inspections of equipment at manufacturing 
facilities to ensure that models have not undergone design changes that 
may affect their performance. Test performance criteria would have to 
be established, likely based to some extent on existing industry 
standards for the halon recovery and recycling units, where appropriate 
standards existed. Performance parameters of interest might include 
halon agent recovery efficiency. Different standards might have to be 
developed based on the type of halon system that the recycling/recovery 
equipment is designed for. It would further be necessary to establish 
criteria and an administrative program for EPA approval of equipment 
testing organizations. For enforcement purposes, it would be necessary 
to require manufacturers and importers to place a label on each piece 
of certified equipment indicating that it is certified and showing 
which organization tested and certified it. Finally, in order to ensure 
that only the equipment deemed and certified capable of minimizing 
releases of halons to the atmosphere is actually utilized during halon 
recovery and recycling activities, it would be necessary to establish 
and enforce the explicit requirement that only certified recovery and 
recycling equipment may be used during halon recovery and recycling 
activities.

[[Page 42733]]

D. Prior Halon Regulation

    As noted earlier, EPA has already issued a rule under Section 608 
of the CAA to reduce the use and emissions of halons and to maximize 
their recapture and recycling. The March 5 rule (63 FR 11084) 
established certain practices and requirements relative to halons 
including training requirements for technicians who handle halon-
containing equipment, and prohibitions on releases of halons during the 
testing, maintenance, repair, servicing, and disposal of halons and 
halon-containing equipment and during technician training. The March 5 
rule also provided that halons and halon-containing equipment may be 
disposed of only by sending such halon or equipment for recycling or 
recovery, respectively, by a facility operating in accordance with the 
voluntary NFPA 10 and 12A standards, or by sending halon for 
destruction by an EPA-approved method.
    The intent of the disposal provisions (sections 82.270(d) and (e)) 
of the March 5 rule was twofold. First, in specifying disposal 
practices for halons and halon-containing equipment, it was established 
that recovery and recycling (as well as halon destruction by approved 
methods) are the only permissible disposal options for halons; i.e., 
release of halons to the atmosphere, or other means of disposing of 
halons, are no longer permissible. This provision has the effect of 
shifting maximum quantities of halons intended for disposal into 
recovered and recycled pools. Second, it was intended to establish that 
recovery and recycling must be performed only through the use of the 
most efficient recovery and recycling practices and equipment available 
today by requiring that facilities to whom halon or halon-containing 
equipment had been sent for recovery or recycling operate in accordance 
with the NFPA 10 standard for portable fire extinguishers (NFPA, 1998) 
and the NFPA 12A standard for Halon 1301 systems (NFPA, 
1997).2 By specifying that the only permissible disposal 
options for halons are recovery, recycling, or destruction; and by 
requiring in effect that halon recovery and recycling occur only 
through the use of equipment achieving maximum recovery efficiencies 
currently available, the March 5 rule was intended to reduce emissions 
of halons to the lowest achievable level during recovery and recycling, 
and to maximize halon recapture and recycling. Thus, enforcement of 
this rule should lead to a great reduction, if not virtual elimination, 
of halon emissions attributable to the above-described transfer losses 
from non-closed halon recovery systems. As noted earlier, all halon 
recovery and recycling equipment currently on the market achieves 
efficiencies of 98 percent or greater. Therefore, the remaining 
environmental benefits achievable by further regulation of halon 
recovery and recycling practices are extremely small.
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    \2\ The NFPA 10 and NFPA 12A standards were cited because they 
prescribe the use of closed halon systems for halon transfers. 
Specifically, NFPA 10, the voluntary industry standard for portable 
fire extinguishers, including halon-containing portable fire 
extinguishers, states that the ``removal of Halon 1211 from fire 
extinguishers shall be done only using a listed halon closed 
recovery system. The removal of agent from other halogenated agent 
fire extinguishers shall be done only using a closed recovery 
system...'', where a closed recovery system for halons and 
halogenated agents is defined as a ``system that provides for the 
transfer of halogenated agents between fire extinguishers, supply 
containers, and recharge and recovery containers so that none of the 
halogenated agent escapes to the atmosphere'' (NFPA, 1998). NFPA 12A 
states that the ``charging or recharging of cylinders or the removal 
or transfer of agent should be done using a closed loop system. A 
closed loop system permits transfer of halon between supply 
cylinders, system cylinders, and recovery cylinders, with only minor 
loss of halon to the atmosphere'' (NFPA, 1997).
    It has been brought to EPA's attention that the language in the 
NFPA 10 and NFPA 12A standards is not fully consistent with the 
intent of the provisions in 40 CFR 82.270(d) and (e). EPA will 
propose an amendment to the March 5 rule to clarify that in all 
cases, only a halon closed recovery system may be used in the 
transfer of halons during halon recovery and recycling operations, 
and that the requirement to use only a halon closed recovery system 
during halon recovery and recycling operations applies for all 
halons listed as group II, Class I ozone-depleting substances, and 
all their isomers.
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E. Discussion and Conclusion

    Section 608 of the CAA provides the statutory basis under which 
today's action has been contemplated. That section directs EPA to issue 
regulations which ``reduce the use and emission of [ozone depleting] 
substances to the lowest achievable level'' and ``maximize the 
recapture and recycling of such substances.'' In applying these 
standards concerning use, emissions and recycling, EPA considers both 
technological and economic factors. The phrases ``lowest achievable 
level'' and ``maximize * * * recapture and recycling'' are not defined 
in the Act. EPA does not believe that these standards are solely 
technological in nature, but rather, include a role for economic 
factors in determining the lowest achievable levels and maximum amount 
of recapture and recycling. EPA therefore considers in an appropriate 
manner the technology available and potential benefits, among other 
factors, in establishing its regulatory programs under section 608. EPA 
believes that the language of the CAA and the legislative history of 
section 608 both support its approach. For a further discussion of this 
approach, see 58 FR 28667.
    Up to 1% of halon emissions in North America, prior to the March 5 
rule, was attributable to halon transfers that were performed using 
non-closed halon recovery systems (EPA, 1998)--that is, the inefficient 
halon transfer methods or systems whose use it would be the objective 
of an equipment certification program to eliminate. This suggests that 
the maximum environmental gain achievable by the elimination of the use 
of non-closed halon recovery systems and methods is up to 1% of annual 
domestic halon emissions. However, the March 5 rule established 
requirements that reduce the use and emission of halons, and maximize 
their recapture and recycling. Included in the requirements of the 
March 5 rule were provisions (40 CFR 82.270 (d) and (e)) regarding 
halon disposal with a twofold intent relevant to halon recovery and 
recycling. First, in specifying disposal practices for halons and 
halon-containing equipment, the Agency established that recovery and 
recycling (as well as halon destruction by approved methods) are the 
only permissible disposal options for halons. Second, the Agency 
intended to establish that recovery and recycling must be performed 
only through the use of closed halon recovery systems. Research has 
indicated that the majority of halon closed recovery systems in use 
today, as well as all units currently sold in this sector, meet or 
exceed industry standards that require minimum recovery efficiencies of 
98% (EPA, 1998). Therefore, by specifying that the only permissible 
disposal options for halons are recovery, recycling, or destruction; 
and by requiring in effect that halon recovery and recycling occur only 
through the use of equipment achieving maximum recovery efficiencies 
currently available, EPA believes that the March 5 rule effectively 
reduces emissions of halons to the lowest achievable level during 
recovery and recycling, and maximizes their recapture and recycling.
    As the objective of a halon recovery and recycling equipment 
certification program is to verify that all such equipment is capable 
of minimizing emissions, EPA finds that this objective will be met 
through the regulatory mechanism of the March 5 rule. Furthermore, as 
the objective of a requirement to use only certified equipment is to 
eliminate the use of equipment that does not meet current standards, 
EPA finds that this objective will also be met through the regulatory

[[Page 42734]]

mechanism of the March 5 rule. Therefore, EPA determines that it is 
neither necessary nor appropriate under section 608(a)(2) of the Act to 
issue a proposed rule requiring the certification of recycling and 
recovery equipment for halons; and further, that it is neither 
necessary nor appropriate under that section to require that halons be 
removed only through the use of certified equipment at this time. 
Further information and discussion relevant to EPA's decision may be 
found in the halon recovery/recycling equipment study mentioned above 
(EPA, 1998), as well as in associated materials, all placed in the 
docket for this determination. Nothing in this determination should 
affect any existing legal requirements regarding halons, and this 
determination does not preclude future regulatory action regarding 
equipment certification, or other aspects of halon use, should 
information pointing to significant environmental benefit be produced.

F. References

National Fire Protection Association (NFPA), 1998. NFPA 10 Standard for 
Portable Fire Extinguishers. 1988 Edition. National Fire Protection 
Association, Quincy, MA. 56 pp.
NFPA, 1997. NFPA 12A Standard on Halon 1301 Fire Extinguishing Systems. 
1997 Edition. National Fire Protection Association, Quincy, MA. 57 pp.
EPA, 1998. Assessment of the Need for a Halon Recovery/Recycling 
Equipment Certification Program. Draft report prepared for the 
Stratospheric Protection Division, U.S. Environmental Protection 
Agency, Washington, D.C. 17 pp.
United Nations Environment Program (UNEP), 1994. Montreal Protocol on 
Substances that Deplete the Ozone Layer--Report of the Halon Fire 
Extinguishing Agents Technical Options Committee, December, 1994. UNEP 
Ozone Secretariat, Nairobi, Kenya. 174 pp.
UNEP, 1998. Montreal Protocol on Substances that Deplete the Ozone 
Layer--Technology and Economic Assessment Panel, April 1998 Report. 
UNEP Ozone Secretariat, Nairobi, Kenya.

III. Administrative Requirements

A. Executive Order 12866

    Executive Order 12866 (58 FR 51735, October 4, 1993) provides for 
interagency review of ``significant regulatory actions.'' It has been 
determined by the Office of Management and Budget (OMB) and EPA that 
this action--which is a determination that requiring the certification 
of equipment used in halon recovery and recycling, and requiring that 
halons be removed from halon-containing equipment only through use of 
certified recovery and recycling equipment, is not necessary or 
appropriate--is not a ``significant regulatory action'' under the terms 
of Executive Order 12866 and is therefore not subject to OMB review 
under the Executive Order.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 601-602, requires that 
Federal agencies, when developing regulations, consider the potential 
impact of those regulations on small entities. Because this action is a 
determination that requiring the certification of equipment used in 
halon recovery and recycling, and requiring that halons be removed from 
halon-containing equipment only through use of certified recovery and 
recycling equipment, is not necessary or appropriate, the Regulatory 
Flexibility Act does not apply. By its nature, this action will not 
have an adverse effect on the regulated community, including small 
entities.

C. Submission to Congress and the Comptroller General

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, does not 
apply because this action is not a rule, for purposes of 5 U.S.C. 
804(3).

D. Paperwork Reduction Act

    This action does not add any new requirements or increase burdens 
under the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et 
seq.

E. Unfunded Mandates Reform Act

    It has been determined that this action does not contain a Federal 
mandate 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.

F. Executive Order 13045--Children's Health

    Executive Order 13045: ``Protection of Children from Environmental 
Health Risk and Safety Risk'' (62 FR 19885, April 23, 1997) applies to 
any rule that (1) is determined to be ``economically significant'' as 
defined under Executive Order 12866, and (2) concerns an environmental 
health or safety risk that EPA has reason to believe may have a 
disproportionate effect on children. If the regulatory action meets 
both criteria, the Agency must evaluate the environmental health or 
safety effects of the planned rule on children, and explain why the 
planned regulation is preferable to other potentially effective and 
reasonably feasible alternatives considered by the Agency.
    This action is not subject to E.O. 13045 because it is not a rule 
and is not likely to result in a rule.

IV. Judicial Review

    Because this direct final determination is of nationwide scope and 
effect, under section 307(b)(1) of the Act, judicial review of this 
action is available only by the filing of a petition for review in the 
United States Court of Appeals for the District of Columbia Circuit 
within sixty days of publication of this action in the Federal 
Register.

List of Subjects in 40 CFR Part 82

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Chemicals, Reporting and recordkeeping 
requirements, Stratospheric ozone layer.

    Dated: July 31, 1998.
Carol M. Browner,
Administrator.
[FR Doc. 98-21525 Filed 8-10-98; 8:45 am]
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