Protection of Stratospheric Ozone: Allocation of Essential Use Allowances for Calendar Year 2006, 18262-18267 [E6-5329]
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Federal Register / Vol. 71, No. 69 / Tuesday, April 11, 2006 / Proposed Rules
business practices) that are developed or
adopted by voluntary consensus
standards bodies. The NTTAA directs
EPA to provide Congress, through OMB,
explanations when the Agency decides
not to use available and applicable
voluntary consensus standards. This
rulemaking does not involve technical
standards. Therefore, EPA did not
consider the use of any voluntary
consensus standards.
List of Subjects in 40 CFR Part 82
Environmental protection,
Administrative practice and procedure,
Chemicals, Exports, Halon, Imports,
Ozone Layer, Reporting and
recordkeeping requirements.
Dated: April 5, 2006.
Stephen L. Johnson,
Administrator.
[FR Doc. 06–3462 Filed 4–10–06; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 82
[EPA–HQ–OAR–2006–0158; FRL–8157–3]
RIN 2060–AN29
Protection of Stratospheric Ozone:
Allocation of Essential Use Allowances
for Calendar Year 2006
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
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AGENCY:
SUMMARY: EPA is proposing to allocate
essential use allowances for import and
production of class I stratospheric ozone
depleting substances (ODSs) for
calendar year 2006. Essential use
allowances enable a person to obtain
controlled class I ODSs as part of an
exemption to the regulatory ban on the
production and import of these
chemicals which became effective as of
January 1, 1996. EPA allocates essential
use allowances for exempted production
or import of a specific quantity of class
I ODS solely for the designated essential
purpose. The proposed allocations total
1,002.40 metric tons of
chlorofluorocarbons (CFCs) for use in
metered dose inhalers for 2006.
DATES: Written comments on this
proposed rule must be received by the
EPA Docket on or before May 11, 2006,
unless a public hearing is requested.
Comments must then be received on or
before May 22, 2006. Any party
requesting a public hearing must notify
the contact listed below under FOR
FURTHER INFORMATION CONTACT by 5 p.m.
Eastern Standard Time on April 17,
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2006. If a hearing is held, it will take
place on April 21, 2006 at EPA
headquarters in Washington DC. EPA
will post a notice on our Web site https://
www.epa.gov/ozone announcing further
information on the hearing if it is
requested.
Submit your comments,
identified by Docket ID No. EPA–HQ–
OAR–2006–0158, by one of the
following methods:
• https://www.regulations.gov: Follow
the on-line instructions for submitting
comments.
• E-mail: A-and-R-docket@epa.gov
• Fax: 202–343–2337, attn: Hodayah
Finman
• Mail: Air Docket, Environmental
Protection Agency, Mailcode 6102T,
1200 Pennsylvania Ave., NW.,
Washington, DC 20460.
• Hand Delivery or Courier. Deliver
your comments to: EPA Air Docket, EPA
West 1301 Constitution Avenue, NW.,
Room B108, Mail Code 6102T,
Washington, D.C. 20460. Such
deliveries are only accepted during the
Docket’s normal hours of operation, and
special arrangements should be made
for deliveries of boxed information.
Instructions: Direct your comments to
Docket ID No. EPA–HQ–OAR–2006–
0158. EPA’s policy is that all comments
received will be included in the public
docket without change and may be
made available online at https://
www.regulations.gov, including any
personal information provided, unless
the comment includes information
claimed to be Confidential Business
Information (CBI) or other information
whose disclosure is restricted by statute.
Do not submit information that you
consider to be CBI or otherwise
protected through https://
www.regulations.gov or e-mail. The
https://www.regulations.gov website is
an ‘‘anonymous access’’ system, which
means EPA will not know your identity
or contact information unless you
provide it in the body of your comment.
If you send an e-mail comment directly
to EPA without going through https://
www.regulations.gov your e-mail
address will be automatically captured
and included as part of the comment
that is placed in the public docket and
made available on the Internet. If you
submit an electronic comment, EPA
recommends that you include your
name and other contact information in
the body of your comment and with any
disk or CD–ROM you submit. If EPA
cannot read your comment due to
technical difficulties and cannot contact
you for clarification, EPA may not be
able to consider your comment.
Electronic files should avoid the use of
ADDRESSES:
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special characters, any form of
encryption, and be free of any defects or
viruses. For additional information
about EPA’s public docket visit the EPA
Docket Center homepage at https://
www.epa.gov/epahome/dockets.htm.
Docket: All documents in the docket
are listed in the https://
www.regulations.gov index. Although
listed in the index, some information is
not publicly available, e.g., CBI or other
information whose disclosure is
restricted by statute. Certain other
material, such as copyrighted material,
will be publicly available only in hard
copy. Publicly available docket
materials are available either
electronically in https://
www.regulations.gov or in hard copy at
the Air Docket, EPA/DC, EPA West,
Room B102, 1301 Constitution Ave.,
NW., Washington, DC. This Docket
Facility is open from 8:30 a.m. to 4:30
p.m., Monday through Friday, excluding
legal holidays. The telephone number
for the Public Reading Room is (202)
566–1744, and the telephone number for
the Air Docket is (202) 566–1742.
FOR FURTHER INFORMATION CONTACT:
Hodayah Finman, Team Leader, by
regular mail: U.S. Environmental
Protection Agency, Stratospheric
Protection Division (6205J), 1200
Pennsylvania Avenue, NW.,
Washington, DC 20460; by courier
service or overnight express: 1301 L
Street, NW., Room 827M Washington
DC 20005, by telephone: 202–343–9246;
or by e-mail: finman.hodayah@epa.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. General Information
A. What Should I Consider When
Preparing My Comments?
II. Basis for Allocating Essential Use
Allowances
A. What are essential use allowances?
B. Under what authority does EPA allocate
essential use allowances?
C. What is the process for allocating
essential use allowances?
III. Essential Use Allowances for Medical
Devices
IV. Proposed Allocation of Essential Use
Allowances for Calendar Year 2006
V. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory
Planning and Review
B. Paperwork Reduction Act
C. Regulatory Flexibility Act
D. Unfunded Mandates Reform Act
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
Risks and Safety Risks
H. Executive Order 13211: Actions That
Significantly Affect Energy Supply,
Distribution, or Use
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I. National Technology Transfer and
Advancement Act
I. General Information
A. What Should I Consider When
Preparing My Comments?
1. Confidential Business Information
Do not submit this information to EPA
through https://www.regulations.gov or
e-mail. Clearly mark the part or all of
the information that you claim to be
CBI. For CBI information in a disk or
CD–ROM that you mail to EPA, mark
the outside of the disk or CD–ROM as
CBI and then identify electronically
within the disk or CD–ROM the specific
information that is claimed as CBI. In
addition to one complete version of the
comment that includes information
claimed as CBI, a copy of the comment
that does not contain the information
claimed as CBI must be submitted for
inclusion in the public docket.
Information so marked will not be
disclosed except in accordance with
procedures set forth in 40 CFR part 2.
2. Tips for Preparing Your Comments
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When submitting comments,
remember to:
• Identify the rulemaking by docket
number and other identifying
information (subject heading, Federal
Register date and page number).
• Follow directions—The agency may
ask you to respond to specific questions
or organize comments by referencing a
Code of Federal Regulations (CFR) part
or section number.
• Explain why you agree or disagree;
suggest alternatives and substitute
language for your requested changes.
• Describe any assumptions and
provide any technical information and/
or data that you used.
• If you estimate potential costs or
burdens, explain how you arrived at
your estimate in sufficient detail to
allow for it to be reproduced.
• Provide specific examples to
illustrate your concerns, and suggest
alternatives.
• Explain your views as clearly as
possible, avoiding the use of profanity
or personal threats.
• Make sure to submit your
comments by the comment period
deadline identified.
II. Basis for Allocating Essential Use
Allowances
A. What are essential use allowances?
Essential use allowances are
allowances to produce or import certain
ozone-depleting chemicals in the U.S.
for purposes that have been deemed
‘‘essential’’ by the Parties to the
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Montreal Protocol and the U.S.
Government.
The Montreal Protocol on Substances
that Deplete the Ozone Layer (Protocol)
is the international agreement aimed at
reducing and eliminating the
production and consumption of
stratospheric ozone-depleting
substances. The elimination of
production and consumption of class I
ODSs is accomplished through
adherence to phase-out schedules for
specific class I ODSs 1, including:
chlorofluorocarbons (CFCs), halons,
carbon tetrachloride, and methyl
chloroform. As of January 1, 1996,
production and import of most class I
ODSs were phased out in developed
countries, including the United States.
However, the Protocol and the Clean
Air Act (Act) provide exemptions that
allow for the continued import and/or
production of class I ODS for specific
uses. Under the Protocol, exemptions
may be granted for uses that are
determined by the Parties to be
‘‘essential.’’ Decision IV/25, taken by the
Parties to the Protocol in 1992,
established criteria for determining
whether a specific use should be
approved as essential, and set forth the
international process for making
determinations of essentiality. The
criteria for an essential use, as set forth
in paragraph 1 of Decision IV/25, are the
following:
‘‘(a) that a use of a controlled substance
should qualify as ‘essential’ only if:
(i) it is necessary for the health, safety or
is critical for the functioning of society
(encompassing cultural and intellectual
aspects); and
(ii) there are no available technically and
economically feasible alternatives or
substitutes that are acceptable from the
standpoint of environment and health;
(b) that production and consumption, if
any, of a controlled substance for essential
uses should be permitted only if:
(i) all economically feasible steps have
been taken to minimize the essential use and
any associated emission of the controlled
substance; and
(ii) the controlled substance is not
available in sufficient quantity and quality
from existing stocks of banked or recycled
controlled substances, also bearing in mind
the developing countries’ need for controlled
substances.’’
B. Under what authority does EPA
allocate essential use allowances?
Title VI of the Act implements the
Protocol for the United States.2 Section
1 Class
I ozone-depleting substances are listed at
40 CFR Part 82 subpart A, appendix A.
2 According to Section 614(b) of the Act, Title VI
‘‘shall be construed, interpreted, and applied as a
supplement to the terms and conditions of the
Montreal Protocol * * * and shall not be
construed, interpreted, or applied to abrogate the
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604(d) of the Act authorizes EPA to
allow the production of limited
quantities of class I ODSs after the phase
out date for the following essential uses:
(1) Methyl Chloroform, ‘‘solely for use
in essential applications (such as
nondestructive testing for metal fatigue
and corrosion of existing airplane
engines and airplane parts susceptible
to metal fatigue) for which no safe and
effective substitute is available.’’ Under
section 604(d)(1) of the Act, this
exemption was available only until
January 1, 2005.
(2) Medical Devices (as defined in
section 601(8) of the Act), ‘‘if such
authorization is determined by the
Commissioner [of the Food and Drug
Administration], in consultation with
the Administrator [of EPA] to be
necessary for use in medical devices.’’
EPA issues allowances to manufacturers
of metered-dose inhalers, which use
CFCs as propellant for the treatment of
asthma and chronic obstructive
pulmonary diseases.
(3) Aviation Safety, for which limited
quantities of halon-1211, halon-1301,
and halon-2402 may be produced ‘‘if the
Administrator of the Federal Aviation
Administration, in consultation with the
Administrator [of EPA] determines that
no safe and effective substitute has been
developed and that such authorization
is necessary for aviation safety
purposes.’’ Neither EPA nor the Parties
have ever granted a request for essential
use allowances for halon, because
alternatives are available or because
existing quantities of this substance are
large enough to provide for any needs
for which alternatives have not yet been
developed.
The Protocol, under Decision X/19,
additionally allows a general exemption
for laboratory and analytical uses. This
exemption is reflected in EPA’s
regulations at 40 CFR part 82, subpart A.
While the Act does not specifically
provide for this exemption, EPA has
determined that an exemption for
essential laboratory and analytical uses
is allowable under the Act as a de
minimis exemption. The de minimis
exemption is addressed in EPA’s final
rule of March 13, 2001 (66 FR 14760–
14770). The Parties to the Protocol
subsequently agreed (Decision XI/15)
that the general exemption does not
apply to the following uses: testing of
oil and grease, and total petroleum
responsibilities or obligations of the United States
to implement fully the provisions of the Montreal
Protocol. In the case of conflict between any
provision of this title and any provision of the
Montreal Protocol, the more stringent provision
shall govern.’’ EPA’s regulations implementing the
essential use provisions of the Act and the Protocol
are located in 40 CFR part 82.
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hydrocarbons in water; testing of tar in
road-paving materials; and forensic
finger-printing. EPA incorporated this
exclusion at Appendix G to Subpart A
of 40 CFR part 82 on February 11, 2002
(67 FR 6352). In a December 29, 2005
final rule, EPA extended the general
exemption for laboratory and analytical
uses through December 31, 2007 (70 FR
77048), in accordance with Decision
XV/8 of the Parties to the Protocol.
allocate essential use allowances in
quantities that together are below or
equal to the total amount approved by
the Parties. EPA may not allocate
essential use allowances in amounts
higher than the total approved by the
Parties. For 2006, the Parties authorized
the United States to allocate up to 1,100
metric tons of CFCs for essential uses.
C. What Is the Process for Allocating
Essential Use Allowances?
Before EPA may allocate essential use
allowances, the Parties to the Protocol
must first approve the United States’
request to produce or import essential
class I ODSs. The procedure set out by
Decision IV/25 calls for individual
Parties to nominate essential uses and
the total amount of ODSs needed for
those essential uses on an annual basis.
The Protocol’s Technology and
Economic Assessment Panel evaluates
the nominated essential uses and makes
recommendations to the Protocol
Parties. The Parties make the final
decisions on whether to approve a
Party’s essential use nomination at their
annual meeting. This nomination cycle
occurs approximately two years before
the year in which the allowances would
be in effect. The allowances allocated
through today’s action were first
nominated by the United States in
January 2004.
Once the U.S. nomination is approved
by the Parties, EPA allocates essential
use exemptions to specific entities
through notice-and-comment
rulemaking in a manner consistent with
the Act. For medical devices, EPA
requests information from
manufacturers about the number and
type of devices they plan to produce, as
well as the amount of CFCs necessary
for production. EPA then forwards the
information to the Food and Drug
Administration (FDA), which
determines the amount of CFCs
necessary for metered-dose inhalers in
the coming calendar year. Based on
FDA’s assessment, EPA proposes
allocations to each eligible entity. Under
the Act and the Protocol, EPA may
The following is a step-by-step list of
actions EPA and FDA have taken thus
far to implement the exemption for
medical devices found at section
604(d)(2) of the Act for the 2006 control
period.
1. On March 24, 2005, EPA sent
letters to MDI manufacturers requesting
the following information under section
114 of the Act (‘‘114 letters’’):
a. The MDI product where CFCs will
be used.
b. The number of units of each MDI
product produced from 1/1/04 to 12/31/
04.
c. The number of units anticipated to
be produced in 2005.
d. The gross target fill weight per unit
(grams).
e. Total amount of CFCs to be
contained in the MDI product for 2006.
f. The additional amount of CFCs
necessary for production.
g. The total CFC request per MDI
product for 2006.
The 114 letters are available for
review in the Air Docket ID No. EPA–
HQ–OAR–2006–0158. The companies
requested that their responses be treated
as confidential business information; for
this reason, EPA has not placed the
responses in the docket.
2. On July 5, 2005, EPA sent FDA the
information MDI manufacturers
provided in response to the 114 letters
with a letter requesting that FDA make
a determination regarding the amount of
CFCs necessary for MDIs for calendar
year 2006. This letter is available for
review in Air Docket ID No. EPA–HQ–
OAR–2006–0158.
3. On October 12, 2005, FDA sent a
letter to EPA stating the amount of CFCs
determined by the Commissioner to be
III. Essential Use Allowances for
Medical Devices
necessary for each MDI company in
2006. This letter is available for review
in the Air Docket ID No. EPA–HQ–
OAR–2006–0158. In their letter, FDA
informed EPA that they had determined
that 1,002.40 metric tons of CFCs were
necessary for use in medical devices in
2006. The letter stated: ‘‘Our
recommendation for the allocation of
CFCs is lower than the total amount
requested by sponsors. In reaching this
estimate, we took into account the
sponsors’ production of MDIs that used
CFCs as a propellant in 2004, their
estimated production in 2005, their
estimated production in 2006, their
current stockpile levels, and the
presence on the market of two albuterol
MDIs that do not use CFCs. We have
also based our recommendation for 2006
on an estimate of the quantity of MDIs
using CFCs as a propellant that would
be necessary for sponsors to maintain a
12-month stockpile, consistent with
paragraph 3 of Decision XVI/12.’’ EPA
has confirmed with FDA that this
determination is consistent with
Decision XVII/5, including new
language on stocks that states that
‘‘Parties shall take into account pre- and
post-1996 stocks of controlled
substances as described in paragraph
1 (b) of decision IV/25, such that no
more than a one-year operational supply
is maintained by that manufacturer.’’
In accordance with the determination
made by FDA, today’s action proposes
to allocate essential use allowances for
a total of 1,002.40 metric tons of CFCs
for use in MDIs for calendar year 2006.
The amounts listed in this proposal
are subject to additional review by EPA
and FDA if new information
demonstrates that the proposed
allocations are either too high or too
low. Commentors requesting increases
or decreases of essential use allowances
should provide detailed information
supporting their claim for additional or
fewer CFCs. Any company that needs
less than the full amount listed in this
proposal should notify EPA of the actual
amount needed.
IV. Proposed Allocation of Essential
Use Allowances for Calendar Year 2006
TABLE I.—ESSENTIAL USE ALLOCATION FOR CALENDAR YEAR 2006
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Company
2006 Quantity
(metric tons)
Chemical
(i) Metered Dose Inhalers (for oral inhalation) for Treatment of Asthma and Chronic Obstructive Pulmonary Disease
Armstrong Pharmaceuticals ........................................................
Boehringer Ingelheim Pharmaceuticals ......................................
Inyx (Aventis) ..............................................................................
Schering-Plough Corporation ......................................................
3M Pharmaceuticals ...................................................................
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CFC–11
CFC–11
CFC–11
CFC–11
CFC–11
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or
or
or
or
or
CFC–12
CFC–12
CFC–12
CFC–12
CFC–12
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or
or
or
or
or
CFC–114
CFC–114
CFC–114
CFC–114
CFC–114
..............................................
..............................................
..............................................
..............................................
..............................................
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147.50
116.50
106.40
556.00
0.0
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TABLE I.—ESSENTIAL USE ALLOCATION FOR CALENDAR YEAR 2006—Continued
2006 Quantity
(metric tons)
Company
Chemical
Wyeth ..........................................................................................
CFC–11 or CFC–12 or CFC–114 ..............................................
EPA proposes to allocate essential use
allowances for calendar year 2006 to the
entities listed in Table 1. These
allowances are for the production or
import of the specified quantity of class
I controlled substances solely for the
specified essential use.
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V. Statutory and Executive Order
Reviews
A. Executive Order 12866: Regulatory
Planning and Review
Under Executive Order 12866 (58 FR
51735, October 4, 1993), the Agency
must determine whether this regulatory
action is ‘‘significant’’ and therefore
subject to review by the Office of
Management and Budget (OMB) and the
requirements of the Executive Order.
The Order defines ‘‘significant
regulatory action’’ as one that is likely
to result in a rule that may:
(1) Have an annual effect on the
economy of $100 million or more, or
adversely affect in a material way the
economy, a sector of the economy,
productivity, competition, jobs, the
environment, public health or safety, or
State, local, or tribal governments or
communities;
(2) Create a serious inconsistency or
otherwise interfere with an action taken
or planned by another agency;
(3) Materially alter the budgetary
impact of entitlements, grants, user fees,
or loan programs or the rights and
obligations of recipients thereof; or
(4) Raise novel legal or policy issues
arising out of legal mandates, the
President’s priorities, or the principles
set forth in the Executive Order.
It has been determined by OMB and
EPA that this proposed action 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.
Under Section 6(a)(3)(B)(ii) of
Executive Order 12866, the Agency
must provide to OMB’s Office of
Information and Regulatory Affairs an
’’assessment of the potential costs and
benefits of the regulatory action,
including an explanation of the manner
in which the regulatory action is
consistent with a statutory mandate and,
to the extent permitted by law, promotes
the President’s priorities and avoids
undue interference with State, local,
and tribal governments in the exercise
of their governmental functions.’’
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EPA is undertaking today’s proposed
action under the mandate established by
Section 604(d) of the Clean Air Act
Amendments of 1990, which directs the
Administrator to authorize the
production of limited quantities of class
I substances solely for use in medical
devices, if the Commissioner of FDA
determines that the authorization is
necessary. The proposed allocations in
today’s rule are the amounts determined
by FDA to be necessary for calendar
year 2006. EPA has not assessed the
costs and benefits specific to today’s
proposed action. The Agency examined
the costs and benefits associated with a
related regulation. The Agency’s
Regulatory Impact Analysis (RIA) for the
entire Title VI phaseout program
examined the projected economic costs
of a complete phaseout of consumption
of ozone-depleting substances, as well
as the projected benefits of phased
reductions in total emissions of CFCs
and other ozone-depleting substances,
including essential-use CFCs used for
metered dose inhalers (U.S.
Environmental Protection Agency,
‘‘Regulatory Impact Analysis:
Compliance with Section 604 of the
Clean Air Act for the Phaseout of Ozone
Depleting Chemicals,’’ July 1992).
B. Paperwork Reduction Act
This proposed action does not add
any information collection requirements
or increase burden under the provisions
of the Paperwork Reduction Act, 44
U.S.C. 3501 et seq. OMB previously
approved the information collection
requirements contained in the final rule
promulgated on May 10, 1995, and
assigned OMB control number 2060–
0170 (EPA ICR No. 1432.21).
Burden means the total time, effort, or
financial resources expended by persons
to generate, maintain, retain, or disclose
or provide information to or for a
Federal agency. This includes the time
needed to review instructions; develop,
acquire, install, and utilize technology
and systems for the purposes of
collecting, validating, and verifying
information, processing and
maintaining information, and disclosing
and providing information; adjust the
existing ways to comply with any
previously applicable instructions and
requirements; train personnel to be able
to respond to a collection of
information; search data sources;
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76.0
complete and review the collection of
information; and transmit or otherwise
disclose the information. 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 are listed in 40 CFR
part 9 and 48 CFR Chapter 1.
C. Regulatory Flexibility Act
The RFA generally requires an agency
to prepare a regulatory flexibility
analysis of any rule subject to notice
and comment rulemaking requirements
under the Administrative Procedure Act
or any other statute unless the agency
certifies that the rule will not have a
significant economic impact on a
substantial number of small entities.
Small entities include small businesses,
small organizations, and small
governmental jurisdictions.
For purposes of assessing the impact
of today’s rule on small entities, small
entity is defined as: (1) Pharmaceutical
preparations manufacturing businesses
(NAICS code 325412) that have less
than 750 employees; (2) a small
governmental jurisdiction that is a
government of a city, county, town,
school district or special district with a
population of less than 50,000; and (3)
a small organization that is any not-forprofit enterprise which is independently
owned and operated and is not
dominant in its field.
After considering the economic
impacts of today’s proposed rule on
small entities, EPA certifies that this
action will not have a significant
economic impact on a substantial
number of small entities. In determining
whether a rule has a significant
economic impact on a substantial
number of small entities, the impact of
concern is any significant adverse
economic impact on small entities,
since the primary purpose of the
regulatory flexibility analyses is to
identify and address regulatory
alternatives ‘‘which minimize any
significant economic impact of the rule
on small entities.’’ 5 U.S.C. 603 and 604.
Thus, an agency may certify that a rule
will not have a significant economic
impact on a substantial number of small
entities if the rule relieves regulatory
burden, or otherwise has a positive
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economic effect on all of the small
entities subject to the rule.
This proposed rule provides an
otherwise unavailable benefit to those
companies that are receiving essential
use allowances by creating an
exemption to the regulatory phaseout of
chlorofluorocarbons. We have therefore
concluded that today’s proposed rule
will relieve regulatory burden for all
small entities. We continue to be
interested in the potential impact of the
proposed rule on small entities and
welcome comments on issues related to
such impacts.
D. Unfunded Mandates Reform Act
Title II of the Unfunded Mandates
Reform Act of 1995 (UMRA), Pub. L.
104–4, establishes requirements for
Federal agencies to assess the effects of
their regulatory actions on State, local,
and tribal governments and the private
sector. Under section 202 of the UMRA,
EPA generally must prepare a written
statement, including a cost-benefit
analysis, for proposed and final rules
with ‘‘Federal mandates’’ that may
result in expenditures to State, local,
and tribal governments, in the aggregate,
or to the private sector, of $100 million
or more in any one year.
Before promulgating an EPA rule for
which a written statement is needed,
section 205 of the UMRA generally
requires EPA to identify and consider a
reasonable number of regulatory
alternatives and adopt the least costly,
most cost-effective, or least burdensome
alternative that achieves the objectives
of the rule. The provisions of section
205 do not apply when they are
inconsistent with applicable law.
Moreover, section 205 allows EPA to
adopt an alternative other than the least
costly, most cost-effective, or least
burdensome alternative, if the
Administrator publishes with the final
rule an explanation why that alternative
was not adopted.
Before EPA establishes any regulatory
requirements that may significantly or
uniquely affect small governments,
including tribal governments, it must
have developed a small government
agency plan under section 203 of the
UMRA. The plan must provide for
notifying potentially affected small
governments, enabling officials of
affected small governments to have
meaningful and timely input in the
development of EPA regulatory
proposals with significant Federal
intergovernmental mandates, and
informing, educating, and advising
small governments on compliance with
the regulatory requirements.
Today’s proposed rule contains no
Federal mandates (under the regulatory
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provisions of Title II of the UMRA) for
State, local, or tribal governments or the
private sector, since it merely provides
exemptions from the 1996 phase out of
class I ODSs. Similarly, EPA has
determined that this rule contains no
regulatory requirements that might
significantly or uniquely affect small
governments, because this rule merely
allocates essential use exemptions to
entities as an exemption to the ban on
production and import of class I ODSs.
E. Executive Order 13132: Federalism
Executive Order 13132, entitled
‘‘Federalism’’ (64 FR 43255, August 10,
1999), requires EPA to develop an
accountable process to ensure
‘‘meaningful and timely input by State
and local officials in the development of
regulatory policies that have federalism
implications.’’ ‘‘Policies that have
federalism implications’’ is defined in
the Executive Order to include
regulations that have ‘‘substantial direct
effects on the States, on the relationship
between the national government and
the States, or on the distribution of
power and responsibilities among the
various levels of government.’’
This proposed rule 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
responsibilities among the various
levels of government, as specified in
Executive Order 13132. Thus, Executive
Order 13132 does not apply to this rule.
F. Executive Order 13175: Consultation
and Coordination With Indian Tribal
Governments
Executive Order 13175, entitled
‘‘Consultation and Coordination with
Indian Tribal Governments’’ (65 FR
67249, November 9, 2000), requires EPA
to develop an accountable process to
ensure ‘‘meaningful and timely input by
tribal officials in the development of
regulatory policies that have tribal
implications.’’ This proposed rule does
not have tribal implications, as specified
in Executive Order 13175. Today’s rule
affects only the companies that
requested essential use allowances.
Thus, Executive Order 13175 does not
apply to this rule.
G. Executive Order 13045: Protection of
Children From Environmental Health
Risks and Safety Risks
Executive Order 13045: ‘‘Protection of
Children from Environmental Health
Risks and Safety Risks’’ (62 FR 19885,
April 23, 1997) applies to any rule that:
(1) is determined to be ‘‘economically
significant’’ under E.O. 12866, and (2)
PO 00000
Frm 00036
Fmt 4702
Sfmt 4702
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.
EPA interprets E.O. 13045 as applying
only to those regulatory actions that are
based on health or safety risks, such as
the analysis required under section 5–
501 of the Order has the potential to
influence the regulation. This proposed
rule is not subject to E.O. 13045 because
it implements a mandatory requirement
as per Section 604(d)(2) of the Clean Air
Act which compels the Agency to
allocate essential use exemptions
should the Food and Drug
Administration finds that the exemption
is necessary.
H. Executive Order 13211: Actions That
Significantly Affect Energy Supply,
Distribution, or Use
This proposed rule is not subject to
Executive Order 13211, Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use (66 FR 28355, May
22, 2001) because it is not likely to have
a significant adverse effect on the
supply, distribution, or use of energy.
The rule affects only the pharmaceutical
companies that requested essential use
allowances.
I. National Technology Transfer and
Advancement Act
Section 12(d) of the National
Technology Transfer and Advancement
Act of 1995 (‘‘NTTAA), Public Law No.
104–113, section 12(d) (15 U.S.C. 272
note) directs EPA to use voluntary
consensus standards in its regulatory
activities unless to do so would be
inconsistent with applicable law or
otherwise impractical. Voluntary
consensus standards are technical
standards (e.g., materials specifications,
test methods, sampling procedures, and
business practices) that are developed or
adopted by voluntary consensus
standards bodies. The NTTAA directs
EPA to provide Congress, through OMB,
explanations when the Agency decides
not to use available and applicable
voluntary consensus standards. This
proposed rule does not involve
technical standards. Therefore, EPA did
not consider the use of any voluntary
consensus standards.
E:\FR\FM\11APP1.SGM
11APP1
18267
Federal Register / Vol. 71, No. 69 / Tuesday, April 11, 2006 / Proposed Rules
List of Subjects in 40 CFR Part 82
Administrative practice and
procedure, Air pollution control,
Chemicals, Chlorofluorocarbons,
Environmental protection, Imports,
Methyl Chloroform, Ozone, Reporting
and recordkeeping requirements.
Dated: April 5, 2006.
Stephen L. Johnson,
Administrator.
Authority: 42 U.S.C. 7414, 7601,7671–
7671q.
Subpart A—Production and
Consumption Controls
40 CFR Part 82 is proposed to be
amended as follows:
2. Section 82.8 is amended by revising
the table in paragraph (a) to read as
follows:
PART 82—PROTECTION OF
STRATOSPHERIC OZONE
1. The authority citation for part 82
continues to read as follows:
§ 82.8 Grants of essential use allowances
and critical use allowances.
(a) * * *
TABLE I.—ESSENTIAL USE ALLOCATION FOR CALENDAR YEAR 2006
Company
2006 Quantity
(metric tons)
Chemical
Metered Dose Inhalers (for oral inhalation) for Treatment of Asthma and Chronic Obstructive Pulmonary Disease
Armstrong Pharmaceuticals .......................................................
Boehringer Ingelheim Pharmaceuticals .....................................
Inyx (Aventis) .............................................................................
Schering-Plough Corporation ....................................................
3M Pharmaceuticals ..................................................................
Wyeth .........................................................................................
*
*
*
*
CFC–11
CFC–11
CFC–11
CFC–11
CFC–11
CFC–11
or
or
or
or
or
or
CFC–12
CFC–12
CFC–12
CFC–12
CFC–12
CFC–12
Fmt 4702
Sfmt 4702
or
or
or
or
or
or
CFC–114
CFC–114
CFC–114
CFC–114
CFC–114
CFC–114
.............................................
.............................................
.............................................
.............................................
.............................................
.............................................
*
[FR Doc. E6–5329 Filed 4–10–06; 8:45 am]
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Agencies
[Federal Register Volume 71, Number 69 (Tuesday, April 11, 2006)]
[Proposed Rules]
[Pages 18262-18267]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-5329]
-----------------------------------------------------------------------
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 82
[EPA-HQ-OAR-2006-0158; FRL-8157-3]
RIN 2060-AN29
Protection of Stratospheric Ozone: Allocation of Essential Use
Allowances for Calendar Year 2006
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: EPA is proposing to allocate essential use allowances for
import and production of class I stratospheric ozone depleting
substances (ODSs) for calendar year 2006. Essential use allowances
enable a person to obtain controlled class I ODSs as part of an
exemption to the regulatory ban on the production and import of these
chemicals which became effective as of January 1, 1996. EPA allocates
essential use allowances for exempted production or import of a
specific quantity of class I ODS solely for the designated essential
purpose. The proposed allocations total 1,002.40 metric tons of
chlorofluorocarbons (CFCs) for use in metered dose inhalers for 2006.
DATES: Written comments on this proposed rule must be received by the
EPA Docket on or before May 11, 2006, unless a public hearing is
requested. Comments must then be received on or before May 22, 2006.
Any party requesting a public hearing must notify the contact listed
below under FOR FURTHER INFORMATION CONTACT by 5 p.m. Eastern Standard
Time on April 17, 2006. If a hearing is held, it will take place on
April 21, 2006 at EPA headquarters in Washington DC. EPA will post a
notice on our Web site https://www.epa.gov/ozone announcing further
information on the hearing if it is requested.
ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OAR-2006-0158, by one of the following methods:
https://www.regulations.gov: Follow the on-line
instructions for submitting comments.
E-mail: A-and-R-docket@epa.gov
Fax: 202-343-2337, attn: Hodayah Finman
Mail: Air Docket, Environmental Protection Agency,
Mailcode 6102T, 1200 Pennsylvania Ave., NW., Washington, DC 20460.
Hand Delivery or Courier. Deliver your comments to: EPA
Air Docket, EPA West 1301 Constitution Avenue, NW., Room B108, Mail
Code 6102T, Washington, D.C. 20460. Such deliveries are only accepted
during the Docket's normal hours of operation, and special arrangements
should be made for deliveries of boxed information.
Instructions: Direct your comments to Docket ID No. EPA-HQ-OAR-
2006-0158. EPA's policy is that all comments received will be included
in the public docket without change and may be made available online at
https://www.regulations.gov, including any personal information
provided, unless the comment includes information claimed to be
Confidential Business Information (CBI) or other information whose
disclosure is restricted by statute. Do not submit information that you
consider to be CBI or otherwise protected through https://
www.regulations.gov or e-mail. The https://www.regulations.gov website
is an ``anonymous access'' system, which means EPA will not know your
identity or contact information unless you provide it in the body of
your comment. If you send an e-mail comment directly to EPA without
going through https://www.regulations.gov your e-mail address will be
automatically captured and included as part of the comment that is
placed in the public docket and made available on the Internet. If you
submit an electronic comment, EPA recommends that you include your name
and other contact information in the body of your comment and with any
disk or CD-ROM you submit. If EPA cannot read your comment due to
technical difficulties and cannot contact you for clarification, EPA
may not be able to consider your comment. Electronic files should avoid
the use of special characters, any form of encryption, and be free of
any defects or viruses. For additional information about EPA's public
docket visit the EPA Docket Center homepage at https://www.epa.gov/
epahome/dockets.htm.
Docket: All documents in the docket are listed in the https://
www.regulations.gov index. Although listed in the index, some
information is not publicly available, e.g., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, will be publicly available only in hard copy.
Publicly available docket materials are available either electronically
in https://www.regulations.gov or in hard copy at the Air Docket, EPA/
DC, EPA West, Room B102, 1301 Constitution Ave., NW., Washington, DC.
This Docket Facility is open from 8:30 a.m. to 4:30 p.m., Monday
through Friday, excluding legal holidays. The telephone number for the
Public Reading Room is (202) 566-1744, and the telephone number for the
Air Docket is (202) 566-1742.
FOR FURTHER INFORMATION CONTACT: Hodayah Finman, Team Leader, by
regular mail: U.S. Environmental Protection Agency, Stratospheric
Protection Division (6205J), 1200 Pennsylvania Avenue, NW., Washington,
DC 20460; by courier service or overnight express: 1301 L Street, NW.,
Room 827M Washington DC 20005, by telephone: 202-343-9246; or by e-
mail: finman.hodayah@epa.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. General Information
A. What Should I Consider When Preparing My Comments?
II. Basis for Allocating Essential Use Allowances
A. What are essential use allowances?
B. Under what authority does EPA allocate essential use
allowances?
C. What is the process for allocating essential use allowances?
III. Essential Use Allowances for Medical Devices
IV. Proposed Allocation of Essential Use Allowances for Calendar
Year 2006
V. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review
B. Paperwork Reduction Act
C. Regulatory Flexibility Act
D. Unfunded Mandates Reform Act
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 Risks and Safety Risks
H. Executive Order 13211: Actions That Significantly Affect
Energy Supply, Distribution, or Use
[[Page 18263]]
I. National Technology Transfer and Advancement Act
I. General Information
A. What Should I Consider When Preparing My Comments?
1. Confidential Business Information
Do not submit this information to EPA through https://
www.regulations.gov or e-mail. Clearly mark the part or all of the
information that you claim to be CBI. For CBI information in a disk or
CD-ROM that you mail to EPA, mark the outside of the disk or CD-ROM as
CBI and then identify electronically within the disk or CD-ROM the
specific information that is claimed as CBI. In addition to one
complete version of the comment that includes information claimed as
CBI, a copy of the comment that does not contain the information
claimed as CBI must be submitted for inclusion in the public docket.
Information so marked will not be disclosed except in accordance with
procedures set forth in 40 CFR part 2.
2. Tips for Preparing Your Comments
When submitting comments, remember to:
Identify the rulemaking by docket number and other
identifying information (subject heading, Federal Register date and
page number).
Follow directions--The agency may ask you to respond to
specific questions or organize comments by referencing a Code of
Federal Regulations (CFR) part or section number.
Explain why you agree or disagree; suggest alternatives
and substitute language for your requested changes.
Describe any assumptions and provide any technical
information and/or data that you used.
If you estimate potential costs or burdens, explain how
you arrived at your estimate in sufficient detail to allow for it to be
reproduced.
Provide specific examples to illustrate your concerns, and
suggest alternatives.
Explain your views as clearly as possible, avoiding the
use of profanity or personal threats.
Make sure to submit your comments by the comment period
deadline identified.
II. Basis for Allocating Essential Use Allowances
A. What are essential use allowances?
Essential use allowances are allowances to produce or import
certain ozone-depleting chemicals in the U.S. for purposes that have
been deemed ``essential'' by the Parties to the Montreal Protocol and
the U.S. Government.
The Montreal Protocol on Substances that Deplete the Ozone Layer
(Protocol) is the international agreement aimed at reducing and
eliminating the production and consumption of stratospheric ozone-
depleting substances. The elimination of production and consumption of
class I ODSs is accomplished through adherence to phase-out schedules
for specific class I ODSs \1\, including: chlorofluorocarbons (CFCs),
halons, carbon tetrachloride, and methyl chloroform. As of January 1,
1996, production and import of most class I ODSs were phased out in
developed countries, including the United States.
---------------------------------------------------------------------------
\1\ Class I ozone-depleting substances are listed at 40 CFR Part
82 subpart A, appendix A.
---------------------------------------------------------------------------
However, the Protocol and the Clean Air Act (Act) provide
exemptions that allow for the continued import and/or production of
class I ODS for specific uses. Under the Protocol, exemptions may be
granted for uses that are determined by the Parties to be
``essential.'' Decision IV/25, taken by the Parties to the Protocol in
1992, established criteria for determining whether a specific use
should be approved as essential, and set forth the international
process for making determinations of essentiality. The criteria for an
essential use, as set forth in paragraph 1 of Decision IV/25, are the
following:
``(a) that a use of a controlled substance should qualify as
`essential' only if:
(i) it is necessary for the health, safety or is critical for
the functioning of society (encompassing cultural and intellectual
aspects); and
(ii) there are no available technically and economically
feasible alternatives or substitutes that are acceptable from the
standpoint of environment and health;
(b) that production and consumption, if any, of a controlled
substance for essential uses should be permitted only if:
(i) all economically feasible steps have been taken to minimize
the essential use and any associated emission of the controlled
substance; and
(ii) the controlled substance is not available in sufficient
quantity and quality from existing stocks of banked or recycled
controlled substances, also bearing in mind the developing
countries' need for controlled substances.''
B. Under what authority does EPA allocate essential use allowances?
Title VI of the Act implements the Protocol for the United
States.\2\ Section 604(d) of the Act authorizes EPA to allow the
production of limited quantities of class I ODSs after the phase out
date for the following essential uses:
---------------------------------------------------------------------------
\2\ According to Section 614(b) of the Act, Title VI ``shall be
construed, interpreted, and applied as a supplement to the terms and
conditions of the Montreal Protocol * * * and shall not be
construed, interpreted, or applied to abrogate the responsibilities
or obligations of the United States to implement fully the
provisions of the Montreal Protocol. In the case of conflict between
any provision of this title and any provision of the Montreal
Protocol, the more stringent provision shall govern.'' EPA's
regulations implementing the essential use provisions of the Act and
the Protocol are located in 40 CFR part 82.
---------------------------------------------------------------------------
(1) Methyl Chloroform, ``solely for use in essential applications
(such as nondestructive testing for metal fatigue and corrosion of
existing airplane engines and airplane parts susceptible to metal
fatigue) for which no safe and effective substitute is available.''
Under section 604(d)(1) of the Act, this exemption was available only
until January 1, 2005.
(2) Medical Devices (as defined in section 601(8) of the Act), ``if
such authorization is determined by the Commissioner [of the Food and
Drug Administration], in consultation with the Administrator [of EPA]
to be necessary for use in medical devices.'' EPA issues allowances to
manufacturers of metered-dose inhalers, which use CFCs as propellant
for the treatment of asthma and chronic obstructive pulmonary diseases.
(3) Aviation Safety, for which limited quantities of halon-1211,
halon-1301, and halon-2402 may be produced ``if the Administrator of
the Federal Aviation Administration, in consultation with the
Administrator [of EPA] determines that no safe and effective substitute
has been developed and that such authorization is necessary for
aviation safety purposes.'' Neither EPA nor the Parties have ever
granted a request for essential use allowances for halon, because
alternatives are available or because existing quantities of this
substance are large enough to provide for any needs for which
alternatives have not yet been developed.
The Protocol, under Decision X/19, additionally allows a general
exemption for laboratory and analytical uses. This exemption is
reflected in EPA's regulations at 40 CFR part 82, subpart A. While the
Act does not specifically provide for this exemption, EPA has
determined that an exemption for essential laboratory and analytical
uses is allowable under the Act as a de minimis exemption. The de
minimis exemption is addressed in EPA's final rule of March 13, 2001
(66 FR 14760-14770). The Parties to the Protocol subsequently agreed
(Decision XI/15) that the general exemption does not apply to the
following uses: testing of oil and grease, and total petroleum
[[Page 18264]]
hydrocarbons in water; testing of tar in road-paving materials; and
forensic finger-printing. EPA incorporated this exclusion at Appendix G
to Subpart A of 40 CFR part 82 on February 11, 2002 (67 FR 6352). In a
December 29, 2005 final rule, EPA extended the general exemption for
laboratory and analytical uses through December 31, 2007 (70 FR 77048),
in accordance with Decision XV/8 of the Parties to the Protocol.
C. What Is the Process for Allocating Essential Use Allowances?
Before EPA may allocate essential use allowances, the Parties to
the Protocol must first approve the United States' request to produce
or import essential class I ODSs. The procedure set out by Decision IV/
25 calls for individual Parties to nominate essential uses and the
total amount of ODSs needed for those essential uses on an annual
basis. The Protocol's Technology and Economic Assessment Panel
evaluates the nominated essential uses and makes recommendations to the
Protocol Parties. The Parties make the final decisions on whether to
approve a Party's essential use nomination at their annual meeting.
This nomination cycle occurs approximately two years before the year in
which the allowances would be in effect. The allowances allocated
through today's action were first nominated by the United States in
January 2004.
Once the U.S. nomination is approved by the Parties, EPA allocates
essential use exemptions to specific entities through notice-and-
comment rulemaking in a manner consistent with the Act. For medical
devices, EPA requests information from manufacturers about the number
and type of devices they plan to produce, as well as the amount of CFCs
necessary for production. EPA then forwards the information to the Food
and Drug Administration (FDA), which determines the amount of CFCs
necessary for metered-dose inhalers in the coming calendar year. Based
on FDA's assessment, EPA proposes allocations to each eligible entity.
Under the Act and the Protocol, EPA may allocate essential use
allowances in quantities that together are below or equal to the total
amount approved by the Parties. EPA may not allocate essential use
allowances in amounts higher than the total approved by the Parties.
For 2006, the Parties authorized the United States to allocate up to
1,100 metric tons of CFCs for essential uses.
III. Essential Use Allowances for Medical Devices
The following is a step-by-step list of actions EPA and FDA have
taken thus far to implement the exemption for medical devices found at
section 604(d)(2) of the Act for the 2006 control period.
1. On March 24, 2005, EPA sent letters to MDI manufacturers
requesting the following information under section 114 of the Act
(``114 letters''):
a. The MDI product where CFCs will be used.
b. The number of units of each MDI product produced from 1/1/04 to
12/31/04.
c. The number of units anticipated to be produced in 2005.
d. The gross target fill weight per unit (grams).
e. Total amount of CFCs to be contained in the MDI product for
2006.
f. The additional amount of CFCs necessary for production.
g. The total CFC request per MDI product for 2006.
The 114 letters are available for review in the Air Docket ID No.
EPA-HQ-OAR-2006-0158. The companies requested that their responses be
treated as confidential business information; for this reason, EPA has
not placed the responses in the docket.
2. On July 5, 2005, EPA sent FDA the information MDI manufacturers
provided in response to the 114 letters with a letter requesting that
FDA make a determination regarding the amount of CFCs necessary for
MDIs for calendar year 2006. This letter is available for review in Air
Docket ID No. EPA-HQ-OAR-2006-0158.
3. On October 12, 2005, FDA sent a letter to EPA stating the amount
of CFCs determined by the Commissioner to be necessary for each MDI
company in 2006. This letter is available for review in the Air Docket
ID No. EPA-HQ-OAR-2006-0158. In their letter, FDA informed EPA that
they had determined that 1,002.40 metric tons of CFCs were necessary
for use in medical devices in 2006. The letter stated: ``Our
recommendation for the allocation of CFCs is lower than the total
amount requested by sponsors. In reaching this estimate, we took into
account the sponsors' production of MDIs that used CFCs as a propellant
in 2004, their estimated production in 2005, their estimated production
in 2006, their current stockpile levels, and the presence on the market
of two albuterol MDIs that do not use CFCs. We have also based our
recommendation for 2006 on an estimate of the quantity of MDIs using
CFCs as a propellant that would be necessary for sponsors to maintain a
12-month stockpile, consistent with paragraph 3 of Decision XVI/12.''
EPA has confirmed with FDA that this determination is consistent with
Decision XVII/5, including new language on stocks that states that
``Parties shall take into account pre- and post-1996 stocks of
controlled substances as described in paragraph 1 (b) of decision IV/
25, such that no more than a one-year operational supply is maintained
by that manufacturer.''
In accordance with the determination made by FDA, today's action
proposes to allocate essential use allowances for a total of 1,002.40
metric tons of CFCs for use in MDIs for calendar year 2006.
The amounts listed in this proposal are subject to additional
review by EPA and FDA if new information demonstrates that the proposed
allocations are either too high or too low. Commentors requesting
increases or decreases of essential use allowances should provide
detailed information supporting their claim for additional or fewer
CFCs. Any company that needs less than the full amount listed in this
proposal should notify EPA of the actual amount needed.
IV. Proposed Allocation of Essential Use Allowances for Calendar Year
2006
Table I.--Essential Use Allocation for Calendar Year 2006
------------------------------------------------------------------------
2006 Quantity
Company Chemical (metric tons)
------------------------------------------------------------------------
(i) Metered Dose Inhalers (for oral inhalation) for Treatment of Asthma
and Chronic Obstructive Pulmonary Disease
------------------------------------------------------------------------
Armstrong Pharmaceuticals........ CFC-11 or CFC-12 or 147.50
CFC-114.
Boehringer Ingelheim CFC-11 or CFC-12 or 116.50
Pharmaceuticals. CFC-114.
Inyx (Aventis)................... CFC-11 or CFC-12 or 106.40
CFC-114.
Schering-Plough Corporation...... CFC-11 or CFC-12 or 556.00
CFC-114.
3M Pharmaceuticals............... CFC-11 or CFC-12 or 0.0
CFC-114.
[[Page 18265]]
Wyeth............................ CFC-11 or CFC-12 or 76.0
CFC-114.
------------------------------------------------------------------------
EPA proposes to allocate essential use allowances for calendar year
2006 to the entities listed in Table 1. These allowances are for the
production or import of the specified quantity of class I controlled
substances solely for the specified essential use.
V. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review
Under Executive Order 12866 (58 FR 51735, October 4, 1993), the
Agency must determine whether this regulatory action is ``significant''
and therefore subject to review by the Office of Management and Budget
(OMB) and the requirements of the Executive Order. The Order defines
``significant regulatory action'' as one that is likely to result in a
rule that may:
(1) Have an annual effect on the economy of $100 million or more,
or adversely affect in a material way the economy, a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local, or tribal governments or
communities;
(2) Create a serious inconsistency or otherwise interfere with an
action taken or planned by another agency;
(3) Materially alter the budgetary impact of entitlements, grants,
user fees, or loan programs or the rights and obligations of recipients
thereof; or
(4) Raise novel legal or policy issues arising out of legal
mandates, the President's priorities, or the principles set forth in
the Executive Order.
It has been determined by OMB and EPA that this proposed action 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.
Under Section 6(a)(3)(B)(ii) of Executive Order 12866, the Agency
must provide to OMB's Office of Information and Regulatory Affairs an
''assessment of the potential costs and benefits of the regulatory
action, including an explanation of the manner in which the regulatory
action is consistent with a statutory mandate and, to the extent
permitted by law, promotes the President's priorities and avoids undue
interference with State, local, and tribal governments in the exercise
of their governmental functions.''
EPA is undertaking today's proposed action under the mandate
established by Section 604(d) of the Clean Air Act Amendments of 1990,
which directs the Administrator to authorize the production of limited
quantities of class I substances solely for use in medical devices, if
the Commissioner of FDA determines that the authorization is necessary.
The proposed allocations in today's rule are the amounts determined by
FDA to be necessary for calendar year 2006. EPA has not assessed the
costs and benefits specific to today's proposed action. The Agency
examined the costs and benefits associated with a related regulation.
The Agency's Regulatory Impact Analysis (RIA) for the entire Title VI
phaseout program examined the projected economic costs of a complete
phaseout of consumption of ozone-depleting substances, as well as the
projected benefits of phased reductions in total emissions of CFCs and
other ozone-depleting substances, including essential-use CFCs used for
metered dose inhalers (U.S. Environmental Protection Agency,
``Regulatory Impact Analysis: Compliance with Section 604 of the Clean
Air Act for the Phaseout of Ozone Depleting Chemicals,'' July 1992).
B. Paperwork Reduction Act
This proposed action does not add any information collection
requirements or increase burden under the provisions of the Paperwork
Reduction Act, 44 U.S.C. 3501 et seq. OMB previously approved the
information collection requirements contained in the final rule
promulgated on May 10, 1995, and assigned OMB control number 2060-0170
(EPA ICR No. 1432.21).
Burden means the total time, effort, or financial resources
expended by persons to generate, maintain, retain, or disclose or
provide information to or for a Federal agency. This includes the time
needed to review instructions; develop, acquire, install, and utilize
technology and systems for the purposes of collecting, validating, and
verifying information, processing and maintaining information, and
disclosing and providing information; adjust the existing ways to
comply with any previously applicable instructions and requirements;
train personnel to be able to respond to a collection of information;
search data sources; complete and review the collection of information;
and transmit or otherwise disclose the information. 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 are
listed in 40 CFR part 9 and 48 CFR Chapter 1.
C. Regulatory Flexibility Act
The RFA generally requires an agency to prepare a regulatory
flexibility analysis of any rule subject to notice and comment
rulemaking requirements under the Administrative Procedure Act or any
other statute unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
Small entities include small businesses, small organizations, and small
governmental jurisdictions.
For purposes of assessing the impact of today's rule on small
entities, small entity is defined as: (1) Pharmaceutical preparations
manufacturing businesses (NAICS code 325412) that have less than 750
employees; (2) a small governmental jurisdiction that is a government
of a city, county, town, school district or special district with a
population of less than 50,000; and (3) a small organization that is
any not-for-profit enterprise which is independently owned and operated
and is not dominant in its field.
After considering the economic impacts of today's proposed rule on
small entities, EPA certifies that this action will not have a
significant economic impact on a substantial number of small entities.
In determining whether a rule has a significant economic impact on a
substantial number of small entities, the impact of concern is any
significant adverse economic impact on small entities, since the
primary purpose of the regulatory flexibility analyses is to identify
and address regulatory alternatives ``which minimize any significant
economic impact of the rule on small entities.'' 5 U.S.C. 603 and 604.
Thus, an agency may certify that a rule will not have a significant
economic impact on a substantial number of small entities if the rule
relieves regulatory burden, or otherwise has a positive
[[Page 18266]]
economic effect on all of the small entities subject to the rule.
This proposed rule provides an otherwise unavailable benefit to
those companies that are receiving essential use allowances by creating
an exemption to the regulatory phaseout of chlorofluorocarbons. We have
therefore concluded that today's proposed rule will relieve regulatory
burden for all small entities. We continue to be interested in the
potential impact of the proposed rule on small entities and welcome
comments on issues related to such impacts.
D. Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Pub.
L. 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments and the private sector. Under section 202 of the UMRA, EPA
generally must prepare a written statement, including a cost-benefit
analysis, for proposed and final rules with ``Federal mandates'' that
may result in expenditures to State, local, and tribal governments, in
the aggregate, or to the private sector, of $100 million or more in any
one year.
Before promulgating an EPA rule for which a written statement is
needed, section 205 of the UMRA generally requires EPA to identify and
consider a reasonable number of regulatory alternatives and adopt the
least costly, most cost-effective, or least burdensome alternative that
achieves the objectives of the rule. The provisions of section 205 do
not apply when they are inconsistent with applicable law. Moreover,
section 205 allows EPA to adopt an alternative other than the least
costly, most cost-effective, or least burdensome alternative, if the
Administrator publishes with the final rule an explanation why that
alternative was not adopted.
Before EPA establishes any regulatory requirements that may
significantly or uniquely affect small governments, including tribal
governments, it must have developed a small government agency plan
under section 203 of the UMRA. The plan must provide for notifying
potentially affected small governments, enabling officials of affected
small governments to have meaningful and timely input in the
development of EPA regulatory proposals with significant Federal
intergovernmental mandates, and informing, educating, and advising
small governments on compliance with the regulatory requirements.
Today's proposed rule contains no Federal mandates (under the
regulatory provisions of Title II of the UMRA) for State, local, or
tribal governments or the private sector, since it merely provides
exemptions from the 1996 phase out of class I ODSs. Similarly, EPA has
determined that this rule contains no regulatory requirements that
might significantly or uniquely affect small governments, because this
rule merely allocates essential use exemptions to entities as an
exemption to the ban on production and import of class I ODSs.
E. Executive Order 13132: Federalism
Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August
10, 1999), requires EPA to develop an accountable process to ensure
``meaningful and timely input by State and local officials in the
development of regulatory policies that have federalism implications.''
``Policies that have federalism implications'' is defined in the
Executive Order to include regulations that have ``substantial direct
effects on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government.''
This proposed rule 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 responsibilities among the various levels of government,
as specified in Executive Order 13132. Thus, Executive Order 13132 does
not apply to this rule.
F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments
Executive Order 13175, entitled ``Consultation and Coordination
with Indian Tribal Governments'' (65 FR 67249, November 9, 2000),
requires EPA to develop an accountable process to ensure ``meaningful
and timely input by tribal officials in the development of regulatory
policies that have tribal implications.'' This proposed rule does not
have tribal implications, as specified in Executive Order 13175.
Today's rule affects only the companies that requested essential use
allowances. Thus, Executive Order 13175 does not apply to this rule.
G. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks
Executive Order 13045: ``Protection of Children from Environmental
Health Risks and Safety Risks'' (62 FR 19885, April 23, 1997) applies
to any rule that: (1) is determined to be ``economically significant''
under E.O. 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.
EPA interprets E.O. 13045 as applying only to those regulatory
actions that are based on health or safety risks, such as the analysis
required under section 5-501 of the Order has the potential to
influence the regulation. This proposed rule is not subject to E.O.
13045 because it implements a mandatory requirement as per Section
604(d)(2) of the Clean Air Act which compels the Agency to allocate
essential use exemptions should the Food and Drug Administration finds
that the exemption is necessary.
H. Executive Order 13211: Actions That Significantly Affect Energy
Supply, Distribution, or Use
This proposed rule is not subject to Executive Order 13211, Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use (66 FR 28355, May 22, 2001) because it is not
likely to have a significant adverse effect on the supply,
distribution, or use of energy. The rule affects only the
pharmaceutical companies that requested essential use allowances.
I. National Technology Transfer and Advancement Act
Section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (``NTTAA), Public Law No. 104-113, section 12(d) (15 U.S.C.
272 note) directs EPA to use voluntary consensus standards in its
regulatory activities unless to do so would be inconsistent with
applicable law or otherwise impractical. Voluntary consensus standards
are technical standards (e.g., materials specifications, test methods,
sampling procedures, and business practices) that are developed or
adopted by voluntary consensus standards bodies. The NTTAA directs EPA
to provide Congress, through OMB, explanations when the Agency decides
not to use available and applicable voluntary consensus standards. This
proposed rule does not involve technical standards. Therefore, EPA did
not consider the use of any voluntary consensus standards.
[[Page 18267]]
List of Subjects in 40 CFR Part 82
Administrative practice and procedure, Air pollution control,
Chemicals, Chlorofluorocarbons, Environmental protection, Imports,
Methyl Chloroform, Ozone, Reporting and recordkeeping requirements.
Dated: April 5, 2006.
Stephen L. Johnson,
Administrator.
40 CFR Part 82 is proposed to be amended 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.
Subpart A--Production and Consumption Controls
2. Section 82.8 is amended by revising the table in paragraph (a)
to read as follows:
Sec. 82.8 Grants of essential use allowances and critical use
allowances.
(a) * * *
Table I.--Essential Use Allocation for Calendar Year 2006
------------------------------------------------------------------------
2006 Quantity
Company Chemical (metric tons)
------------------------------------------------------------------------
Metered Dose Inhalers (for oral inhalation) for Treatment of Asthma and
Chronic Obstructive Pulmonary Disease
------------------------------------------------------------------------
Armstrong Pharmaceuticals........ CFC-11 or CFC-12 or 147.50
CFC-114.
Boehringer Ingelheim CFC-11 or CFC-12 or 116.50
Pharmaceuticals. CFC-114.
Inyx (Aventis)................... CFC-11 or CFC-12 or 106.4
CFC-114.
Schering-Plough Corporation...... CFC-11 or CFC-12 or 556.00
CFC-114.
3M Pharmaceuticals............... CFC-11 or CFC-12 or 0.0
CFC-114.
Wyeth............................ CFC-11 or CFC-12 or 76.0
CFC-114.
------------------------------------------------------------------------
* * * * *
[FR Doc. E6-5329 Filed 4-10-06; 8:45 am]
BILLING CODE 6560-50-P