July 3, 2019
MEMORANDUM: Overview of the Proposed Rule, "Protection of Stratospheric Ozone:
Adjustments to the Allowance System for Controlling HCFC Production and Import, 2020-2029;
and Other Updates"
The EPA regulates the production and import of hydrochlorofluorocarbons (HCFCs) under Title VI of
the Clean Air Act. Through this rulemaking, the EPA is proposing HCFC allocations for 2020 through
2029 for HCFC-123 and HCFC-124. The EPA is also proposing to update other requirements under the
program for controlling production and consumption of ozone-depleting substances (ODS), as well as
proposing edits to the regulatory text for improved readability and clarity. See the preamble to the
proposed rule for a more detailed discussion (available at regulations.gov in docket number EPA-HQ-
OAR-2016-0271).
1) Consumption and Production Allowance Allocations  Starting in 2020, the United States
must reduce production and consumption of all HCFCs to less than 0.5 percent of the historic
U.S. baseline. Newly-produced or imported HCFCs may only be used to service fire
suppression and air conditioning and refrigeration equipment that was manufactured before
January 1, 2020.
a. Proposed HCFC-123 Allocation
Tahle 1: IIC I C -123 Consumption Allocution Approaches. 2020-2030 (M l )

2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Total
Proposal
650
650
650
570
490
410
330
250
170
90
0
4,260
Alternative 1
520
480
450
420
380
350
310
280
250
210
0
3,650
Alternative 2
2,014
2,014
2,014
2,014
2,014
2,014
2,014
2,014
2,014
2,014
0
20,140
Note: Numbers are rounded.
Consumption: The agency is proposing to issue consumption allowances equal to the 2020
estimated HCFC-123 demand for servicing existing refrigeration and air-conditioning and fire
suppression equipment (650 MT) for years 2020 through 2022 and to then decrease the
number of allowances issued in each subsequent year by a consistent amount such that there
are zero allowances issued in 2030. The EPA is also taking comment on two alternatives
included in Table 1. Allowances would be allocated to the entities with baseline consumption
allowances listed at 40 CFR 82.19.
b. Proposed HCFC-124 Allocation
Tahli
2: IIC I C -124 Production and Consumption Allocution Approaches. 2020-2030 < Ml)


2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Total
Proposal
200
200
200
175
150
125
100
75
50
25
0
1,300
Alternative
200
200
200
200
200
200
200
200
200
200
0
2,000
Consumption and Production: The agency is proposing to issue consumption and production
allowances equal to the 2020 estimated HCFC-124 demand (200 MT) for years 2020 through
2022 and to then decrease the number of allowances issued in each subsequent year by a
consistent amount such that there are zero allowances issued in 2030. The EPA is also taking
comment on the alternative included in Table 2. Allowances would be allocated to the entities
with baseline production and consumption allowances listed at 40 CFR 82.17 and 82.19.

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July 3, 2019
2)	De minimis exemption  The EPA is proposing to create a de minimis exemption from the
use prohibition in Clean Air Act Section 605(a) to allow virgin HCFC-123 to be used for the
manufacture of chillers that meet specific criteria through December 31, 2020. This proposal
aims to address a unique situation that has arisen because certain construction projects that
ordered HCFC-123 chillers for installation in 2019 are behind schedule and the chillers may
not be installed by the end of 2019.
3)	Servicing of Certain Fire Suppression Equipment  In November 2018, the Parties to the
Montreal Protocol on Substances that Deplete the Ozone Layer adopted an adjustment that,
among other things, added "the servicing of fire suppression and fire protection equipment"
existing on January 1, 2020, as a permissible use for newly produced and imported HCFCs.
Consistent with this adjustment and a continuing servicing demand for fire suppression
equipment using HCFCs, the EPA is proposing to allow for the servicing of fire suppression
equipment manufactured before 2020 with HCFCs imported prior to 2030.
4)	Updating the Label on Containers of Fire Suppression Agent  To ensure that technicians
servicing fire suppression equipment are aware of the proposed flexibility to allow for use of
fire suppression agents containing newly imported HCFC-123, the EPA is proposing to revise
the labeling requirement for containers of fire suppression agent containing HCFC-123.
5)	Limiting Inter-pollutant Transfers  To align with existing regulations that prohibit the
production and import of phased out HCFCs, in particular HCFC-22, the agency is proposing to
modify the inter-pollutant allowance transfer provisions to explicitly prohibit transfers into
ODS that are already phased out.
6)	Requiring Electronic Reporting  To increase the accuracy and reduce the burden associated
with reporting ODS data, the EPA is proposing to require that reports and import petitions be
submitted electronically through the agency's Central Data Exchange (CDX).
7)	Import Petition for Used ODS  The agency is proposing to reduce the information
requirements needed in a petition to import used class I ODS if the source of the ODS is a
government operated or recognized ODS bank.
8)	Facilitating Imports of ODS for Destruction  The agency is proposing to provide a new
streamlined process for the import of virgin and used ODS for destruction in the United States.
9)	Exemption for Halon 1211 in Halon Aircraft Bottles  The EPA is proposing to exempt
Hal on 1211 in halon aircraft bottles from the import petition process to make it easier for
companies to service fire suppression equipment.
10)	Changes to Quarantine and Preshipment Requirements  The EPA is proposing to
prohibit the sale of quarantine and preshipment (QPS) methyl bromide for non-QPS uses and
modify the existing recordkeeping requirements such that all distributors and purchasers of QPS
methyl bromide must certify that will not use QPS methyl bromide for non-QPS uses. These
proposals are in response to the misapplication of this ODS in Puerto Rico and the U.S. Virgin
Islands.
11)
Adding Destruction Technologies  The agency is proposing to update the list of destruction
technologies, consistent with the Montreal Protocol.

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July 3, 2019
12)	Prohibiting the Sale of Illegally Imported ODS  The EPA is proposing to prohibit the sale
or offer for sale or distribution of any ODS that has been imported into the United States
without consumption allowances or is otherwise not subject to an exemption.
13)	Banning Polyurethane Foam Systems Containing CFCs  In light of recent reports on
increased emissions of CFCs in China and Eastern Asia, the EPA is proposing to add
polyurethane foam systems (often called "polyols") containing phased out CFCs to the list of
banned products under 40 CFR Part 82, Subpart C to prohibit them from being sold or
distributed in the United States.
14) Removing Obsolete Provisions  This notice proposes to remove outdated provisions related
to the allocation and transfer of class I ODS credits and allowances that are no longer in use.

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