Protection of Stratospheric Ozone

SUMMARY: This action announces a three-month stay of a provision of the

refrigerant recycling regulations promulgated under section 608 of the

Clean Air Act that restricts the sale of class I or class II

refrigerants contained in appliances without fully assembled

refrigerant circuits. The effectiveness of 40 CFR 82.154(m), including

the applicable compliance date, is stayed for three months pending

reconsideration, only as it applies to refrigerant contained in

appliances without fully assembled refrigerant circuits.

In the proposed rules Section of today's Federal Register notice,

EPA is proposing to extend this stay to the extent necessary to

complete reconsideration (including any appropriate regulatory action)

of the rule in question.

EFFECTIVE DATE: January 27, 1995.

ADDRESSES: Comments and materials supporting this rulemaking are

contained in Public Docket No. A-92-01, Waterside Mall (Ground Floor)

Environmental Protection Agency, 401 M Street, SW., Washington, DC

20460 in room M-1500. Dockets may be inspected from 8 a.m. until 5:30

p.m., Monday through Friday. A reasonable fee may be charged for

copying docket materials.

FOR FURTHER INFORMATION CONTACT: Deborah Ottinger, Program

Implementation Branch, Stratospheric Protection Division, Office of

Atmospheric Programs, Office of Air and Radiation (6205-J), 401 M

Street, SW., Washington, DC 20460, (202) 233-9200. The Stratospheric

Ozone Information Hotline at 1-800-296-1996 can also be contacted for

further information.

SUPPLEMENTARY INFORMATION: The contents of this preamble are listed in

the following outline:

I. Background

II. Rules to be Stayed and Reconsidered

III. Issuance of Stay

IV. Authority for Stay and Reconsideration

V. Proposed Additional Temporary Stay

VI. Effective Date

I. Background

On December 16, 1994, Hamilton Home Products, a distributor of pre-

charged split air-conditioning systems, sent to the United States

Environmental Protection Agency (EPA) a petition for reconsideration of

the amendment to the Refrigerant Recycling Rule promulgated on October

28, 1994, (59 FR 55912, November 9, 1994), particularly the sales

restriction provision under 40 CFR 82.154(m) as it applies to

refrigerant contained in appliances without fully assembled refrigerant

circuits. On January 6, 1995, Hamilton Home Products filed a petition

in the United States Court of Appeals for the District of Columbia

Circuit seeking review of this Refrigerant Recycling Rule (Hamilton

Home Products vs. U.S. Envtl. Protection Agency, D.C. Cir. No 95-1019).

By this action, EPA is convening a proceeding for reconsideration.

II. Rules To Be Stayed and Reconsidered

Final regulations published on May 14, 1993 (58 FR 28660),

established a recycling program for ozone-depleting refrigerants

recovered during the servicing and disposal of air-conditioning and

refrigeration equipment. The regulations required technicians to

observe practices that minimize release of refrigerant to the

environment and to be certified as knowledgeable of these requirements

(40 CFR 82.154, 82.156, 82.161). Moreover, to ensure that persons

handling refrigerant are certified technicians, Sec. 82.154(n) (now (m)

by amendment) prohibited the sale of refrigerant unless the buyer was a

certified technician or another exception applied. One exception was

for refrigerant contained in an appliance. This exception was intended

to permit uncertified individuals to purchase appliances, such as

household refrigerators, whose installation would involve very little

risk of refrigerant release (58 FR 28697).

On August 15, 1994, EPA proposed an amendment to the technician

certification provisions of the rule to clarify the scope of the

activities that must only be performed by a certified technician (59 FR

41968). During the comment period on the proposed rule, EPA became

aware that it also needed to clarify the exception for pre-charged

appliances from the sales restriction in light of the other amendments.

It was not clear whether pre-charged split systems should be considered

appliances, which are excepted, or components, which are not. Although

sold as a package, a pre-charged split system is not a fully assembled

appliance.

For the reasons given in the October 28, 1994 final rule (59 FR

55912, published November 9, 1994) EPA revised the relevant paragraphs

of Sec. 82.154(n) to read ``Effective November 14, 1994, no person may

sell or distribute, or offer for sale or distribution, any class I or

class II substance for use as a refrigerant to any person unless: * * *

(6) The refrigerant is contained in an appliance, and after January 9,

1995, the refrigerant is contained in an appliance with a fully

assembled refrigerant circuit * * *.''

After promulgation of the October 28, 1994 rule and within the 60

day judicial review period, Hamilton Home Products (Hamilton) objected

to the rule and submitted information to EPA regarding the effects of

the sales restriction on pre-charged split systems. Hamilton claims

that it was impracticable to raise the objection during the comment

period due to lack of notice. While EPA believes its final rule is a

logical outgrowth of the notice, the notice itself did not specifically

address pre-charged split systems.

Hamilton's petition states that the Quick Connect assembly used in

Hamilton's products, which are sold to homeowners, ``enable[s]

homeowners to have the installation completed with no refrigerant

loss.'' Hamilton further notes that ``in the six (6) years that

Hamilton has been distributing ``Quick-Connect'' Split Systems for

sale, there have been no returns as a result of any product loss of

refrigerant.'' In addition, Hamilton states that consumers who buy

split systems themselves, rather than through a contractor, realize

significant savings even if the consumer hires a contractor to assemble

the refrigerant circuit. Finally, Hamilton argues that loss of the

split-system market would represent an extreme economic burden on the

company.

EPA has completed a preliminary review of Hamilton's information

and is now reconsidering the sales restriction provisions in light of

this new information. Hamilton's information indicates that the risk of

release of refrigerant during the assembly of quick-connect split

systems, and therefore the benefit of restricting sale of split

systems, may be small. At the same time, the cost to consumers and to

distributors such as Hamilton of restricting sale of split systems may

be significant.

III. Issuance of Stay

EPA hereby issues a three-month administrative stay of the

effectiveness [[Page 7387]] of Sec. 82.154(m), including all applicable

compliance dates, as this provision applies to refrigerant contained in

appliances without fully assembled refrigerant circuits (59 FR 55912).

This stay does not affect refrigerant contained in pre-charged parts or

bulk containers.1 EPA will reconsider this rule, as discussed

above and, following the notice and comment procedures of section

307(d) of the Clean Air Act, will take appropriate action. If the

reconsideration results in restrictions on the sale of class I and

class II refrigerants that are stricter than the existing rule, 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.

\1\EPA considers a ``part'' to be any component or set of

components that makes up less than an appliance. For example, this

includes line sets, evaporators, or condensers that are not sold as

part of a set from which one can construct a complete split system

or other appliance. On the other hand, EPA considers a ``pre-charged

split system'' to be a set of parts or components, at least one of

which is pre-charged, from which one can assemble a complete split

system. This may include a pre-charged condenser, pre-charged

evaporator, and pre-charged line set, or simply a pre-charged

condenser sold along with an evaporator and line set containing only

nitrogen.

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IV. Authority for Stay and Reconsideration

The administrative stay and reconsideration of the rule and

associated compliance period announced by this notice are being

undertaken pursuant to section 307(d)(7)(B) of the Clean Air Act, 42

U.S.C. 7607(d)(7)(B). The issues in the petition for reconsideration

were impracticable to raise during the comment period, and are of

central relevance to the outcome of this provision of the rule.

V. Proposed Additional Temporary Stay

Because EPA may not be able to complete the reconsideration

(including any appropriate regulatory action) of the rule stayed by

this notice within the three-month period expressly provided in section

307(d)(7)(B), in the Proposed Rules Section of today's Federal

Register, EPA proposes a temporary extension of the stay beyond the

three months provided, only to the extent necessary to complete

reconsideration of the rule in question.

VI. Effective Date

This action will become final on January 27, 1995.

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: January 27, 1995.

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 82.154 is amended by adding paragraph (m)(9) to read as

follows:

Sec. 82.154 Prohibitions.

* * * * *

(m) * * *

(9) Rules stayed for reconsideration. Notwithstanding any other

provisions of this subpart, the effectiveness of 40 CFR 82.154(m), only

as it applies to refrigerant contained in appliances without fully

assembled refrigerant circuits, is stayed from January 27, 1995 to

April 27, 1995.

* * * * *

[FR Doc. 95-2830 Filed 2-6-95; 8:45 am]

BILLING CODE 6560-50-P