Federal Register
                               Vol. 58, No. 249
                         Thursday, December 30, 1993
                                Proposed Rules

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 82

[FRLÄ4818Ä4]

Protection of Stratospheric Ozone; Labeling Supplemental Proposal

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking.

SUMMARY: This document proposes to amend EPA's existing labeling regulations
by adding an exemption from the regulations where destruction of controlled
substances takes place, adding an exemption for spare parts that are used in
repair, making revisions to clarify the labeling of waste, and making several
other minor clarifying revisions. EPA is proposing these revisions in response
to numerous comments, in order to recognize and alleviate the burden placed on
specific parties whose activities contribute no additional emissions of
ozone-depleting substances.

DATES: Written comments on this proposed rule must be received on or before
January 31, 1994, unless a public hearing is requested. In the case where a
public hearing is requested, the public hearing will be scheduled at 9 a.m. on
January 14, 1994. Comments must then be received on or before 30 days
following the public hearing. Any party requesting a public hearing must
notify EPA by 5 p.m. Eastern Standard Time on January 7, 1994. All requests
for and inquiries regarding a public hearing should be directed to Sue
Stendebach at 202/233Ä9117.

ADDRESSES: Comments on this proposed rulemaking should be submitted (in
duplicate if possible) to: Public Docket No. AÄ91Ä60, room MÄ1500 (LEÄ131),
Waterside Mall, U.S. Environmental Protection Agency, 401 M Street, SW.,
Washington, DC 20460. The docket may be inspected from 8:30 a.m. until 12
noon, and from 1:30 p.m. to 3 p.m., Monday through Friday. A reasonable fee
may be charged for copying docket materials. A hearing, if requested, will be
held at the EPA auditorium, 401 M Street, SW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Sue Stendebach, Regulatory Development and
Operations Section, Program Implementation Branch, Stratospheric Protection
Division, Office of Atmospheric Programs, Office of Air and Radiation, 6205ÄJ,
401 M Street, SW., Washington, DC 20460. 202/233Ä9117.

SUPPLEMENTARY INFORMATION: The contents of today's preamble are listed in the
following outline:

I. Introduction

II. Destruction Exemption from the Labeling Requirements

A. Background on Destruction Policies

1. Background on Montreal Protocol's Destruction Policy

2. Fourth Meeting of the Parties to the Montreal Protocol

B. Phaseout Regulations

C. Proposed Accelerated Phaseout Destruction Provisions

D. Proposed Destruction Provision in the Final Labeling Rule

E. Requirements of RCRA and the Proposed Hazardous Organic Neshaps (HON)

1. Resource Conservation and Recovery Act (RCRA) Standards

2. Proposed Hazardous Organic NESHAP (HON) Regulations

F. Proposed Amendments to the Final Labeling Regulations Products Exempt from
Labeling Requirements Where Manufacturers Use Protocol-approved Destruction
Technologies

III. Labeling Requirements of Containers of Waste

A. Current Requirements for Containers of Controlled Substance Waste and
Wastes Containing Trace Amounts of Controlled Substances

B. Today's Proposal Regarding Labeling Requirements of Containers of Regulated
Waste

IV. Labeling Requirements for Spare Parts to be Used Solely for Repair

V. Clarification of the Meaning of Products "Manufactured With''

VI. Exemption for Trace Quantities

VII. Labeling Requirements of Containers of 55 Gallons and Smaller Containing
Controlled Substances

VIII. Definition of Importer

IX. Certification Requirements for Reduced Use Exemption

X. Imports and Products Introduced In Bond at the U.S./Mexico Border

XI. Incidental Uses of Controlled Substances

XII. Request for Comments Regarding Plasma Etching

XIII. Additional Information

A. Executive Order 12866

B. Regulatory Flexibility Act

C. Paperwork Reduction Act

I. Introduction

In a final rule published on February 11, 1993 (58 FR 8136), EPA promulgated
regulations to implement section 611 of the Clean Air Act, as amended by the
Clean Air Act Amendments of 1990 (CAA). The regulations mandate that,
effective May 15, 1993, labels are required on containers of class I and class
II substances and products containing or manufactured with class I substances.
The rule also calls for labels on all products containing or manufactured with
class I or class II substances, beginning on January 1, 2015.

The regulations provide an exemption for manufacturers that have achieved a
reduction in the total use of CFCÄ113 and/or methyl chloroform (MCF) for
products manufactured using those substances as solvents by 95 percent as
compared to their 1990 use levels. This provision is based on a 1991 United
Nations Environment Programme report, Solvents, Coatings and Adhesives. EPA
provided the exemption in order to compensate for the lack of technically and
economically viable substitutes for an estimated 5 percent of the uses of
CFCÄ113 and MCF in the solvent sector. In addition, this provision recognizes
the early efforts by those companies to attain a near elimination of such
substances, and to provide an incentive for other companies to strive towards
the same goal.

The final regulations exempt products manufactured using class I substances on
an intermittent basis, and not as a direct part of the manufacturing process
of the product, such as that employed in spot cleaning textiles during the
manufacturing process. The rule explains that such intermittent contact use of
controlled substances was found to be incidental "contact.'' The final rule
also explains that intermittent "contact'' uses, though they may involve a
brief initial physical contact between the ozone-depleting "controlled
substance'' and the product, occur infrequently, typically as part of an
upkeep process, and that the controlled substance does not come into contact
with every product. In other situations, where the controlled substance has
contact on an intermittent basis only with the surface area of manufacturing
equipment, and although there may be an initial contact with the first few
products themselves, the controlled substance will not contact every product
manufactured thereafter. Labeling is therefore not required in either of the
above cases.

The placement of the warning statement is explained in terms of its
conspicuousness and legibility, as well as ready availability to the actual
person responsible for the purchase at the time of purchase, or at the time of
product delivery. The provision for product delivery was added to the rule for
products purchased through the mail, by telephone, and where the consumer does
not view the product at the time of purchase. Other options for placement
discussed are the display panel area of a product, alternative labeling such
as hang tags, and supplemental printed materials, all to be available to the
consumer at the time of purchase.

Products made for export are exempt from the final regulations because such
products primarily affect foreign commerce and because the label on such a
product will not be viewed by any consumer until after it has left the
jurisdiction of the Agency. Moreover, such products would be put at a
competitive disadvantage in the world marketplace with the same products
manufactured in countries where there are no similar labeling requirements.

In contrast, imports are covered under the labeling requirements. The
regulations require importers to ensure that a product is properly labeled at
the site of U.S. Customs clearance. The importer must have a "reasonable
belief'' that the imports are properly labeled or are not subject to the
labeling requirements. Two options discussed in the preamble to the final rule
for demonstrating reasonable belief are to investigate at least one step back
into the manufacturing process of the import, or to draft a contractual
agreement with the importer's supplier abroad, indicating that the import
is/is not manufactured with, or containing, controlled substances.

The final regulations exempt research and development (R&D) activities from
the labeling requirements, since the products being developed are not being
introduced into interstate commerce. However, products that have completed the
R&D process and are then manufactured must be labeled when they are introduced
into interstate commerce.

Manufacturers were required to label their products containing or manufactured
with class I substances, and containers containing class I or class II
substances, beginning on May 15, 1993.

II. Destruction Exemption From the Labeling Requirements

A. Background on Destruction Policies

1. Background on Montreal Protocol's Destruction Policy

The Montreal Protocol, to which over 125 nations are now Parties, requires
that each nation that is a Party to it control the production and consumption
of substances that deplete the ozone layer. Under the existing Protocol,
"production'' of controlled substances is defined as "the amount of controlled
substances produced, minus the amount destroyed by technologies to be approved
by the Parties.'' At the second meeting of the Parties to the Protocol (the
Parties) in London, a technical advisory committee was established to examine
the existing destruction technologies, devise criteria by which to approve
technologies, and evaluate environmental concerns associated with the
technologies. Until the Fourth Meeting of the Parties, no destruction
technology had been approved by the Parties.

2. Fourth Meeting of the Parties to the Montreal Protocol

At the Fourth Meeting of the Parties to the Montreal Protocol, which took
place from November 23Ä25, 1992, in Copenhagen, the Parties approved five
destruction technologies to be used for destroying controlled substances. The
technologies are: liquid injection incineration, reactor cracking,
gaseous/fume oxidation, rotary kiln incinerators, and cement kilns. The
Parties also agreed that additional acceleration of the phaseout of controlled
substances would result in the need for a greater global destruction program
for these substances. With the approval of the five technologies, the Parties
noted that the technologies could attain a destruction efficiency of 99.99
percent with proper controls and operating techniques; however, they did not
require a specific efficiency. The Parties encouraged a "Code of Good
Housekeeping Procedures,'' set forth in the United Nations Environmental
Programme (UNEP) Report entitled Ad-Hoc Technical Advisory Committee on ODS
Destruction Technologies, to minimize losses to the environment through
control systems and standards for operating such systems. Finally, the Parties
agreed to report the quantities of ozone-depleting substances destroyed
annually to the Protocol.

Liquid injection incinerators are typically single-chamber units with waste
burners. They may also include liquid injection stages of a multiple-chamber
incinerator. These incinerators are used to destroy wastes with a low ash
content and can be used to destroy sludge, slurry, vapor, or combustible
liquid. Liquid wastes are burned in suspension after being injected through
burners and atomized to fine droplets.

A reactor cracking process uses a cylindrical graphite, water-cooled reactor
and an oxygen-hydrogen burner system. Since 1983, this process has treated
waste gases resulting from the production of chlorofluorocarbons (CFCs). The
gases are converted to hydrofluoric acid, hydrochloric acid, carbon dioxide,
chlorine, and water. The two acids are usable in-house and/or marketable, and
the chlorine is scrubbed, leaving only water vapor, oxygen, and carbon dioxide
as waste gases.

Gaseous/fume oxidation destroys waste vapor streams, most often volatile
organic compounds. A combustion temperature of around 1100 degrees centigrade
is needed to destroy most ozone-depleting compounds. Acid gas scrubbers are
required for incineration of halogenated waste vapors, such as those from
controlled substances. Fume incinerators can be direct flame incinerators,
consisting of the combustion chamber and a burner, or recuperative fume
incinerators that use heat exchangers to preheat the waste vapor feed stream
or the combustion air. Fume incinerators are usually found in chemical process
or manufacturing plants.

Rotary kiln incinerators can handle a wide variety of both solid and liquid
wastes. Rotary kiln incinerators typically have at least two combustion
chambers, the afterburner ensuring that complete combustion of exhaust gases
takes place. Liquid wastes can be fed either into the rotary kiln area or
directly into the afterburner chamber. If fed into the afterburner chamber,
the liquid is atomized in the burner or combustion zone.

      Cement kilns, under proper operation, can destroy most organic chemical
wastes. Tests have been conducted using CFCÄ113, with a destruction efficiency
of greater than 99.99 percent demonstrated. Destruction of ozone-depleting
substances in cement kilns appears beneficial; however, each unit must be
reviewed on a case-by-case basis to determine its appropriateness for this
use.

With the approval of these five destruction technologies, Parties to the
Protocol can subtract from the definition of production that amount of
controlled substance(s) that is destroyed by these means, under certain
conditions discussed in the proposed accelerated phaseout rule that was
published on March 18, 1993 (57 FR 33754).

B. Phaseout Regulations

On July 30, 1992, the EPA published final regulations implementing section 604
of the Clean Air Act (57 FR 33753), which established the phaseout schedule
for class I and class II substances set forth in the Clean Air Act.
Destruction was also addressed in the regulations in terms of those class I
substances that are coincidental and unavoidable by-products (CUBPs) of a
manufacturing process. Associated with this exemption is a set of reporting
requirements. Companies are required to document the amount of "CUBPs''
produced and destroyed in a manner consistent with the requirements of the
Resource Conservation and Recovery Act (RCRA) or other applicable rules. These
destruction technologies are also required to meet the Maximum Available
Control Technology (MACT) standards for efficiency. For purposes of Title VI
of the Act, EPA stated that companies that destroy CUBPs of carbon
tetrachloride using technologies that achieve a 99.99 percent destruction
efficiency may obtain an exemption from production allowances. Based on a
report submitted by a company destroying CUBPs, the Administrator would
evaluate the merits of the document and decide whether to grant an exemption
for that company's annual production and consumption allowances.

The phaseout regulations reported that further data was necessary on
destruction technologies in order to exempt more than CUBPs from the phaseout
allowance system. Since the Parties approved the five destruction technologies
in November 1992, EPA has proposed regulations accelerating the phaseout of
controlled substances (58 FR 15013, March 18, 1993). That proposal also
contained proposed regulations concerning destruction.

C. Proposed Accelerated Phaseout Destruction Provisions

The proposed accelerated phaseout regulations, published on March 18, 1993,
would implement the United States' acceleration of the phaseout of class I
substances, consistent with the recent adjustments to the Protocol agreed upon
last November by the Parties in Copenhagen; accelerate the phaseout of certain
class II substances; list and phase out hydrobromofluorocarbons (HBFCs); list
and phase out methyl bromide; and responded to petitions received by the
Agency from environmental and industry groups.

In addition, in that NPRM EPA proposed revising the definition of production
such that controlled substances that are to be destroyed are eliminated from
the definition of production and credit is allowed for destruction of
controlled substances similar to credit received for the transformation of
such chemicals. The destruction of such substances must employ any one of the
five technologies identified above that are approved by the Parties. Due to
the proposed credit for destruction, EPA proposed eliminating the now
unnecessary CUBP provision, since all such destruction would be credited.

The proposal defines "destruction'' in terms of technologies approved for
destruction by the Parties that result in expiration of the chemical without
any commercially useful end product being produced. The Agency proposed this
definition in order to distinguish destruction from transformation, which
requires that the resulting end product serve a commercial purpose. The
proposal indicated that to be eligible for the destruction exemption, the
controlled substances must be destroyed by one of the five destruction
technologies approved by the Parties.

As explained more fully in the March 18, 1993 proposal, EPA believes that,
while it is not required to follow the approach of the Protocol Parties
regarding destruction, it has the authority to do so.

D. Proposed Destruction Provision in the Final Labeling Rule

      The preamble to the final labeling regulations (58 FR 8136, February 11,
1993) requested comment on a destruction exemption from the labeling
requirements based on the proposed accelerated phaseout rule, which was being
drafted at the time. The Agency requested comment on whether it could and
should provide an exemption from the labeling requirements for the use of
controlled substances that are subsequently destroyed using one of the
above-mentioned approved technologies with procedures that are consistent with
the Resource Conservation and Recovery Act (RCRA) and the United Nations
Environmental Programme (UNEP) Report entitled Ad-Hoc Technical Advisory
Committee on ODS Destruction Technologies. The Agency received and has
reviewed several comments on the possibility of a destruction exemption
provision for the labeling rule. Those comments supported the inclusion of a
destruction exemption, similar to that given for transformation. The
commenters reasoned that the destruction exemption was justified because
destruction of ozone-depleting substances prevents emissions of those
substances into the atmosphere.

E. Related Requirements of RCRA and the Proposed Hazardous Organic Neshaps
(HON)

In addition to the requirements of Title VI of the Clean Air Act as amended,
certain controlled substances are also regulated, under certain circumstances,
by the Resource Conservation and Recovery Act (RCRA, 42 USC 6901 et seq.) and
would be regulated under the proposed Hazardous Organic NESHAPs (HON, 57 FR
62608 ). The RCRA regulations would cover those controlled substances that are
considered to be hazardous constituents in the waste stream (eg., carbon
tetrachloride bound for incineration). The proposed HON addresses air
emissions of hazardous air pollutants, a category into which carbon
tetrachloride, methyl chloroform, and methyl bromide fall. The following
discussion outlines the coordination among the RCRA and proposed HON
regulations and the proposed destruction exemption provision of the labeling
regulations.

1. Resource Conservation and Recovery Act (RCRA) Standards

The RCRA regulations currently require that industries that incinerate waste
covered by the regulations must meet "at stacks'' destruction efficiency (DE)
standards of 99.99 percent. The proposed accelerated phaseout regulations
would grant full credit for the destruction of controlled substances when they
are destroyed in compliance with RCRA regulations 40 CFR 343(a) and 40 CFR
266.104. The proposed accelerated phaseout rule indicated that the Agency will
grant 100 percent production allowances for companies that achieve 99.99
percent efficiency in the destruction of class I substances instead of only
99.99 percent in allowances, because, otherwise, a company would never be able
to obtain credit for the full amount of the chemical used, and would
eventually be unable to obtain sufficient volumes to operate.

The only substances that are covered under both RCRA as "hazardous
constituents'' and under Title VI of the Clean Air Act as controlled
substances are methyl chloroform (MCF) and carbon tetrachloride (CTC). The
remaining controlled substances are regulated under RCRA only when they are
blended with hazardous wastes, such as when used solvents are incinerated. The
incineration technologies approved by the Parties have been shown to be
capable of achieving the 99.99 percent DE required by RCRA; however, the
Parties do not specifically require that each of the technologies achieve such
an efficiency. The Parties supported the recommendations of the Ad-Hoc
Technical Committee on Destruction Technologies to require Code of Good
Housekeeping procedures to be applied throughout a destruction facility.

2. Proposed Hazardous Organic NESHAP (HON) Regulations

Under some situations controlled substances are not covered by RCRA
regulations, but may be covered by the HON regulations to be promulgated under
section 112 of the Clean Air Act. The Agency published a proposed HON rule on
December 31, 1992 (57 FR 62608), proposing that companies be required to
control air emissions occurring in chemical manufacturing processes. The HON
regulates approximately 400 manufacturing processes associated with the
Synthetic Organic Manufacturing Industry (SOCMI), as well as 7 non-SOCMI
source categories. Section 112 of the Clean Air Act contains lists of 189
hazardous air pollutants (HAPS) of which a portion are known to be emitted by
the above-mentioned industries. Of those listed under section 112, the only
substances controlled under Title VI of the CAA are methyl chloroform (MCF),
carbon tetrachloride (CCL4) and methyl bromide (proposed to be listed as a
class I substance in the accelerated phaseout rule). The HON covers five kinds
of emission points within such facilities where these substances are emitted,
including process vents, wastewater streams, transfer operations, storage
tanks, and equipment leaks. The Agency proposed that each emissions source
would require a "reference control technology'' with specific applicability
criteria, such as a 98 percent control efficiency for incinerators on process
vents. The HON would establish performance standards for operating the control
technologies, as well as criteria for the design of the control equipment. The
Agency proposed that when organic HAPS are released through process vent
sources, companies may route these emissions to a gaseous/fume oxidation
incinerator for destruction. The Agency has proposed that such incinerators
may operate with a destruction efficiency of 98 percent.

In the proposal for the accelerated phaseout, the Agency proposed that when
regulations promulgated under section 112 of the Clean Air Act apply to the
destruction of a controlled substance, and RCRA regulations do not apply, and
the 98 percent destruction efficiency is achieved by incinerators to which
emissions of controlled substances are routed, the Agency would grant the full
allotment of allowances to replace chemicals that are destroyed under the
conditions of the HON. In situations where section 112 regulations apply, but
an achieved destruction efficiency is less than what the HON proposes, the
Agency proposed to issue allowances only for the portion actually destroyed.

F. Proposed Amendments to the Final Labeling Regulations Products Exempt from
Labeling Requirements Where Manufacturers Use Protocol approved Destruction
Technologies

      The ultimate goal of Title VI of the CAA is to minimize depletion of
stratospheric ozone. A destruction exemption, which would recognize, and
provide an incentive for, the elimination of emissions of controlled
substances through the use of approved destruction technologies, is therefore
consistent with the goals of Title VI. This exemption is one method of
reducing risks of ozone depletion. The current labeling regulations provide an
exemption from the labeling requirements if a controlled substance used to
manufacture a product is transformed, such that the controlled substance no
longer poses a threat to the ozone layer; similarly, the same result comes
about if a controlled substance used in the manufacture of a product is
destroyed. The controlled substance is not emitted in either case and no
environmental harm occurs through exempting such products from labeling.

EPA today is proposing that for any products manufactured with a class I or
class II substance, if that substance is destroyed according to any applicable
legal or regulatory requirements, using one of the five technologies approved
by the Parties to the Protocol, the product would be exempt from the labeling
requirements. The intent of today's proposal is to provide a destruction
exemption parallel to the destruction provision in the accelerated phaseout
proposal. If the destruction provision in the final accelerated phaseout
differs substantially from that which is proposed, EPA will need to revisit
the destruction exemption proposed today in order to maintain consistency
between the rules.

For purposes of today's proposed destruction exemption from the labeling
requirements, the Agency proposes that only where a substance is destroyed to
a DE of 98 percent or greater, using one of the five approved destruction
technologies, will the labeling exemption apply. This differs from the
approach used in the accelerated phaseout proposal, under which producers of
controlled substances are granted credit for that percentage of the controlled
substance actually destroyed (if destroyed at a DE of less than 98 percent).
This approach is not being used in the labeling context because, while under
the proposed accelerated phaseout it is possible to grant credit for that
portion actually destroyed, under the labeling rule a label is either placed
on a product or it is not. Therefore, the Agency needs to determine a
threshold at which labeling is exempted. It is consistent then, for EPA to
provide a labeling exemption only for those products manufactured with
controlled substances that are "completely'' destroyed. A new definition of
"completely destroy,'' which means to destroy to 98 percent or greater
destruction efficiency, will be included in the labeling rule through today's
proposed amendment.

Furthermore, where the destruction of a controlled substance is regulated
under RCRA, the regulated party must achieve a destruction efficiency of 99.99
percent, destroying any controlled substances using one of the five approved
technologies and complying with applicable RCRA regulations as they relate to
destruction of ozone-depleting substances, in order to qualify for the
exemption from labeling. If the destruction of a controlled substance not
regulated under RCRA but is regulated under the HON, the regulated party must
achieve a destruction efficiency of 98 percent, as well as meet any other
applicable standards imposed by the HON that relate to destruction of
ozone-depleting substances, destroying any controlled substances using one of
the five approved technologies, in order to qualify for the exemption from
labeling. If the final HON requires a destruction efficiency of greater than
98 percent, EPA will need to revisit the minimum destruction efficiency of 98
percent in today's proposed rule, in order to provide consistency with the
regulation of hazardous air pollutants.

The Agency is aware that state air quality permit laws may establish
efficiency standards for emissions of controlled substances where no Federal
regulations exist to cover them. In addition, state laws may be more stringent
than comparable Federal regulations. In either case, the Agency expects
companies that are regulated under such state laws governing the control of
emissions of controlled substances in industrial processes, to be in full
compliance in order to qualify for the destruction exemption.

Those companies that are not covered by either RCRA regulations or the HON,
and are not otherwise covered by state or local laws more stringent than the
comparable Federal regulations, must follow the Code of Good Housekeeping
Practices, as described in the UNEP Ad-Hoc Technical Advisory Committee on ODS
Destruction Technologies, as well as the whole of Chapter 5 of that report, in
addition to meeting the 98 percent DE, using one of the five approved
destruction technologies.

The Agency requests comment on its proposal to require companies that are
neither regulated by RCRA nor the HON to adhere to the performance standards
of the UNEP report of the Ad-Hoc Technical Advisory Committee on ODS
Destruction Technologies, while meeting a destruction efficiency of 98 percent
or greater, in order to obtain an exemption from the labeling requirements.

The regulatory language of this rulemaking requires that parties taking
advantage of this destruction exemption must be in compliance with regulations
and requirements applicable to such destruction.

The UNEP Ad-Hoc Technical Advisory Committee on ODS Destruction Technologies
recommends that atmospheric releases of controlled substances shall be
monitored at all facilities with air emission discharges. For controlled
substances, this report recommends that flow meters or continuously recording
weighing equipment for individual containers should be used. At a minimum,
containers should be weighed "full'' and "empty'' to establish quantities
destroyed.

      While there are no recordkeeping requirements specifically associated
with the destruction exemption from labeling, EPA proposed in the accelerated
phaseout regulations (58 FR 15013), companies relying on the destruction
provisions of that rule must maintain records of destruction. For those
companies, these same records will be consulted in inspecting eligibility for
the destruction exemption from labeling. For manufacturers that do not receive
production or consumption allowances, records required under other relevant
regulations that determine the amount destroyed, the destruction efficiency,
and the performance standards of operation must be made available to EPA upon
request. EPA requests comment on its requirement that records maintained under
the phaseout regulations, as well as those maintained under other applicable
regulations be made available to the Agency in determining eligibility for the
labeling exemption. The Agency also requests comment as to the adequacy of
these recordkeeping requirements for purposes of this proposal. Comments on
the possibility that a facility taking advantage of this destruction exemption
may not be covered by RCRA regulations, the HON, or the accelerated phaseout
of ozone-depleting substances rule are also requested.

EPA also requests comment generally on the destruction exemption from the
labeling requirements. EPA will reopen the comment period if the final
accelerated phaseout rule changes materially from the proposal relative to
destruction.

III. Labeling Requirements of Containers of Waste

A. Current Requirements for Containers of Controlled Substance Waste and
Wastes Containing Trace Amounts of Controlled Substances

EPA indicated in the final labeling regulations that a person handling
containers of waste that contain class I or class II substances destined for
incineration would benefit from the specific chemical information in the
warning statement when handling. Though the label does not specifically
address handling practices of such substances, it would inform technicians
handling the containers of chemicals and would encourage them to dispose of
them or recycle them correctly. In addition, containers of waste can be
introduced into interstate commerce and must then be labeled as "containing''
a controlled substance.

Under its current rule, EPA also requires that containers of such waste
materials destined to be recycled or reclaimed bear the warning statement to
ensure that the technician of a reclamation facility is aware of the
substances contained in order to exercise proper caution. Reclaimed substances
are also resold by the reclaimer, and thus are to be labeled upon their
introduction into interstate commerce.

The Agency did not require that empty containers that once contained a
controlled substance and are subsequently recycled and incorporated into
another product bear a label. EPA also permits the removal of a label on a
container that no longer contains a controlled substance. If such a container
is subsequently charged with a class I or class II substance, a label would be
required. Also, the final rule excluded containers, such as trucks, railroad
cars, or crates, used to transport a "product containing'' or "container
containing'' from the labeling requirements, because only the immediate
container holding the controlled substance must be labeled.

B. Today's Proposal Regarding Labeling Requirements of Containers of Regulated
Waste

Since the publication of the final regulations, EPA has received new
information from the regulated community regarding the labeling requirements
for containers of waste. The Agency required labeling of waste in the final
rule because it believed that the labeling information is important to waste
handlers and recycling and reclamation facilities. In addition, by requiring
waste to be labeled, EPA attempted to encourage industry to minimize the
amount of controlled substances in the waste stream and ultimately in the
upper stratosphere. For this reason, the preamble to the current rule states
that all amounts, including trace quantities of controlled substances in
waste, trigger the labeling requirements. The regulated community has
commented to EPA, addressing both the final rule and applicability
determinations prepared by EPA on labeling of waste.

After reviewing many of the comments urging EPA to reconsider its policy on
the labeling of waste, EPA agrees that a revision is necessary to its current
position on labeling waste containing controlled substances, in order to
better facilitate industry's compliance with the regulations. Written comments
on the Agency's treatment of waste and the relevant applicability
determinations are available in the Air Docket AÄ91Ä60. These comments are
summarized below.

Numerous commenters stated that waste clearly does not fall under the
definition of "product containing,'' as promulgated in the final labeling
rule; therefore, commenters concluded that waste cannot be required to be
labeled as such. EPA agrees. Containers of waste cannot be defined as
products, because they are not manufactured from raw or recycled materials in
order to perform a specific task, nor does waste encounter a point of sale to
an ultimate consumer.

      Others commented that a container of waste does not fit the definition
of "container containing'' in the regulations. For example, commenters
expressed concern that in the current rule, a container, such as a bulk waste
receptacle that holds a used "product containing'' (i.e., an aerosol or scrap
material), might require labeling. However, EPA believes that the controlled
substance remaining in the product contained in the receptacle no longer
serves a function, nor is it required to be transferred to another container
in order to realize its intended use, as would normally be the case for
"containers containing.'' EPA agrees that a container carrying a "product
containing'' which is ultimately disposed of or incinerated, such as a can of
adhesive or foam scrap, does not fall within the definition of "container
containing.''

EPA also believes that containers of class I or class II waste do not fall
under the definition of "container containing,'' in that the waste is not
"intended to be transferred to another container, vessel or piece of equipment
in order to realize its intended use.'' EPA's intention in including "intended
use'' in its definition was to target items to be consumed, thus giving
consumers information on which to base a purchase decision. Waste is neither
purchased nor "used'' and thus, does not fall into the category of items to be
consumed. In order to make this clear, EPA is proposing a definition of
"waste,'' for purposes of this rule, that includes items or substances
discarded with the intent that they will serve no further useful purpose. The
term discarded can include being deposited in a landfill, being destroyed in
an incinerator or chemical process, or undergoing some other type of final
waste handling. Consequently, waste that is going to be discarded would not be
required to be labeled under this proposal.

EPA does believe, however, that containers of used or contaminated controlled
substances, such as some refrigerants, methyl chloroform, carbon
tetrachloride, other CFCs and HCFCs, and blends of controlled substances that
are bound for recycling or reclamation do fall under the definition of
"container containing.'' These substances will be transferred to realize their
"intended use'' and will later be used by consumers. Consequently, these
containers trigger labeling and are not proposed to be exempt from such
requirements under this amendment. Such quantities are easily identifiable and
are often recycled or reclaimed for manufacture or use in new products which
would in turn require the mandated warning statement. Therefore, EPA believes
that the mandated warning statement is warranted on containers of contaminated
(or used) controlled substances and blends of controlled substances when they
are introduced into interstate commerce for purposes of recycling or
reclamation.

Furthermore, the Agency believes that there is not a significant environmental
benefit associated with labeling wastes of controlled substances. The final
labeling rule lays out requirements that will affect consumers' decisions, and
thus, manufacturers' production decisions upstream. A label applied to the
product(s) manufactured with or containing a controlled substance will provide
such information to the consumer. Duplicating efforts by labeling the waste
from a product that no longer serves its useful purpose has no influence on
purchasing or consumer decisions, since waste is neither purchased nor used.
Since waste is not a consumer item, a waste handler, whose business it is to
handle all types of unwanted materials, would not be dissuaded from accepting
a certain waste because of its effect on the ozone layer.

Because of the demand for and the high cost of controlled substances, EPA
further believes that those using controlled substances will recycle or
reclaim rather than to discard them. Regulations promulgated pursuant to
sections 608 and 609 of the Clean Air Act require recovery and recycling of
refrigerants; efficient management of other uses of controlled substances
would preclude discarding as a prudent option. In cases where these substances
cannot be reused, recycled, or reclaimed, they are most often destroyed rather
than deposited in a landfill or disposed in some other manner that would allow
emissions of the substance. As hazardous wastes, carbon tetrachloride, methyl
chloroform, and methyl bromide cannot be placed in a landfill. Additionally,
no non-containerized liquid wastes can be placed in landfills.

The section 608 regulation mentioned above specifically addresses disposal of
appliances containing refrigerants; compliance will be monitored via a variety
of provisions in section 608. The proposed accelerated phaseout rule refers to
the use of destruction technologies approved by the Parties to the Montreal
Protocol in granting an exemption to the allowance program for production and
consumption. Today's proposed amendment specifies that those persons using a
controlled substance in their manufacturing process, but then destroying that
substance using one of the five approved technologies, are exempt from
labeling the product manufactured with the destroyed controlled substance. In
both proposed rules, the actual disposal or destruction would not be
regulated.

While it could be argued that requiring the labeling of waste provides
valuable information about the contents of a waste to the handler, other
regulations provide for similar information to be conveyed. For example, any
waste considered to be hazardous (which includes carbon tetrachloride, methyl
chloroform, and methyl bromide) must have its contents reported on the
manifest required to accompany the waste under the Resource Conservation and
Recovery Act (RCRA). Furthermore, EPA believes that the intent of the section
611 labeling provisions is to provide consumers with information upon which to
make purchasing decisions, rather than to inform persons of contents for
purposes of handling a substance, product or waste.

      In summary, the Agency recognizes that waste should not be defined as a
product under these regulations, nor should containers of waste be regarded as
containers containing controlled substances. Consequently, EPA proposes to add
a new  82.106(b)(3), which provides exemptions from the labeling
requirements, to include, "Waste containing controlled substances bound for
discard.'' EPA emphasizes, however, that containers of used or contaminated
controlled substances or of blends of these controlled substances that enter
into interstate commerce and that are bound for recycling or reclamation are
not proposed to be exempted, and thus would continue to require labeling. In
order to provide clarity, EPA also proposes a definition of "waste'' for
purposes of this rulemaking, which would mean, "items or substances that are
discarded with the intent that such items or substances will serve no further
useful purpose.'' EPA requests comment on its proposal to exempt waste from
the labeling requirements.

IV. Labeling Requirements for Spare Parts To Be Used Solely for Repair

Section 82.116 of the current labeling regulations exempts manufacturers who
incorporate another product, manufactured with a class I substance and
purchased from another manufacturer or supplier, from having to pass through
the label from the incorporated product to the final product. Section 82.118
goes on to state, however, that distributors, wholesalers, and retailers of
labeled products are required to pass through the labeling information. The
current labeling requirements provide an exemption from labeling when repairs
are made using components manufactured with a controlled substance or using a
controlled substance in the repair itself. In an applicability determination
made following the promulgation of the final rule, EPA clarified that the
repair provision of the rule allows the repair of a product using a component
manufactured with an ODS or using an ODS in the repair of the product without
triggering labeling.

Subsequent to promulgation, the Agency has received new information regarding
spare parts that are intended for repair purposes only. Evidently, many
companies have up to several million spare parts in inventory that are
purchased from vendors, and then sold piecemeal to persons who repair the
original product. Due to the pass-through exemption for persons incorporating
a product manufactured with a controlled substance that was purchased from a
supplier, and due to the applicability determination regarding repairs, the
repair person would not be required to label the repaired product. To require
companies that order spare parts in bulk from suppliers to pass through
labeling information with each order perhaps containing several hundred
individual spare parts from numerous bulk shipments is exceedingly burdensome
to those companies purchasing and selling the spare parts. Typically, the bulk
shipment will be labeled on a shipping crate or an invoice to indicate that
the parts within that shipment were manufactured with a controlled substance.
The company ordering the spare parts breaks down the shipment into bins,
currently necessitating a label or labeling information to be generated for
each individual part contained in that shipment. In most cases, a repair
person purchases hundreds of various individual spare parts at a time from the
company, making the pass-through of any labeling information extremely
cumbersome and time-consuming.

Many of the original manufacturers of these spare parts are foreign
manufacturers, exacerbating the burden of tracking the use of controlled
substances in the manufacture of each spare part in inventory. Developing and
maintaining inventories of these spare parts is extremely costly, often many
times more costly than the sale price of the spare parts themselves.

EPA's decision not to require manufacturers incorporating products
manufactured with controlled substances to comply with the labeling
pass-through requirement was based in part on the overwhelming tracking burden
imposed in determining which components were actually made using a controlled
substance. A similar situation exists for those purchasing spare parts for
repair purposes. Many distributors stock hundreds of thousands of spare parts
to be sold to repair persons. The burden of tracking each part that is to then
be sold to a person using that part for repair which is exempted from the
labeling requirements becomes overwhelming and is without environmental
benefit.

Furthermore, the repair person has specific requirements for a spare part that
will work with the existing product to be repaired; consumer discretion on his
or her part based on the use of an ODS is unlikely. Because the repair person
is not required to pass through any labeling information in the repair of the
product, requiring the labeling of spare parts themselves serves no
environmental benefit. Additionally, numerous companies that stock spare parts
for the repair of their products have themselves totally stopped using
controlled substances and are currently encouraging suppliers to use safe
alternatives in manufacturing spare parts that they purchase.

      In light of the information above, EPA is today proposing that
purchasers of spare parts manufactured with a controlled substance and
purchased from a vendor for the sole purpose of repair, or distributed for
purposes of repair only, not be required to pass through the labeling
information. EPA wishes to emphasize that this exemption to the pass-through
requirement does not apply to products containing a controlled substance or
containers of controlled substances, nor does it apply to spare parts used to
manufacture products. Manufacturers of spare parts made with controlled
substances are still required to apply the appropriate labels. Moreover,
importers and distributors moving the labeled shipments as packaged by the
manufacturer must still pass through the labeling information.

EPA requests comments on its proposal to exempt from the label pass-through
requirement those spare parts that are to be used for repair purposes.

V. Clarification of the Meaning of Products "Manufactured With''

The final rule discusses the applicability of the labeling requirements for
products manufactured with controlled substances. Some confusion over when
labeling is required for such products has emerged since the publication of
the final rule. The following discussion should clarify such labeling
questions.

In reviewing whether a product must be labeled, one must examine from two
perspectives. Is labeling required because it is a product "containing'' a
controlled substance? If not, is labeling then required because it is a
product "manufactured with'' a controlled substance?

The final rule states that a controlled substance that is inadvertently
produced or remaining as a residue from a chemical reaction, leaving trace
quantities of that substance in the final product, does not trigger the
labeling requirements. However, there may be cases where a product is exempt
from being labeled a product "containing'' (in this case as a result of trace
quantities), but where a product may still require labeling because it is
considered to be "manufactured with'' that controlled substance.

The introduction of carbon tetrachloride as an explosion suppressant in the
manufacture of certain chemicals serves as an example. The carbon
tetrachloride is introduced, then withdrawn from the chemical product. Trace
quantities of the carbon tetrachloride remain in the chemical; however, such
quantities serve no useful purpose in the final product. As a result, the
product is exempt from being labeled as a product containing carbon
tetrachloride. However, because the carbon tetrachloride is introduced into
the chemical product directly in the manufacturing process, actually having
physical contact with the product, the product would need to be labeled as
"manufactured with'' carbon tetrachloride, unless other exemptions apply.

In order to be consistent with this view, EPA is proposing to revise the
definition of "manufactured with''. The final regulations currently state that
a product is manufactured with a controlled substance if the manufacturer used
a controlled substance directly in the product's manufacture, "but the product
itself does not contain a controlled substance at the point of introduction
into interstate commerce.'' To further clarify that trace quantities may
actually be contained in a product manufactured with a controlled substance,
EPA proposes to revise the definition of "manufactured with,'' to state that a
product "does not contain more than trace quantities of the controlled
substance * * *.'' Comment on this proposed revision is requested.

VI. Exemption for Trace Quantities

While the final labeling rule discussed the applicability of the labeling
requirements for products containing trace quantities of controlled
substances, some confusion over when labeling is required for such products
has also arisen since the publication of the final rule.

The regulatory text in  82.106, referring to the warning statement
requirements, lists certain exemptions from these requirements. The first of
these addresses "Products in which trace quantities of a controlled substance
remain as a residue or impurity * * *.'' A trace quantity remaining in a
product can only be contained within a chemical product; therefore, it is
logical that this exemption specifically applies to products "containing''
rather than products "manufactured with.'' Products that are manufactured
using a controlled substance, but that contain only trace quantities of the
substance, are not required to be labeled as a "product containing''; however,
they are required to be labeled as a "product manufactured with.'' To clarify
this point, EPA proposes to amend  82.106(b)(1), which provides exemptions
from the labeling requirements, to read: "Products containing trace quantities
of a controlled substance remaining as a residue or impurity due to a chemical
reaction, and where the controlled substance serves no useful purpose in or
for the product itself.'' However, if such a product was manufactured using
the controlled substance, such product is required to be labeled as a "product
manufactured with'' the controlled substances.

      There has also been some confusion as to whether a container containing
a trace amount of a controlled substance must be labeled. EPA understands that
to determine whether a container contains a trace amount of a controlled
substance, where such a determination falls outside of normal procedures, may
be difficult and costly. For example, a container of a non-controlled
substance that may hold a trace amount of a controlled substance as an
impurity of the manufacturing process would be subject to labeling under
current labeling requirements. As a product, however, that same container
would be exempt from the labeling requirements. In many cases, expensive
testing must be conducted to determine if a trace quantity of the controlled
substance is in fact contained in the container. Requiring the labeling of
containers containing trace quantities of a controlled substance is
inconsistent with the trace quantities exemption of the current labeling rule
and with the intent of the Agency to require labeling of "containers of''
controlled substances.

Consequently, EPA is today proposing to revise its regulations to make clear
that containers containing trace quantities of controlled substances do not
have to be labeled. EPA proposes to add a new  82.106(b)(2) stating that
containers containing trace quantities of a controlled substance, which remain
as a residue or impurity, are exempt from the labeling requirements, and
requests relevant comment.

VII. Labeling Requirements of Containers of 55 Gallons and Smaller Containing
Controlled Substances

The final labeling regulations indicate that the use of supplemental printed
material may be used to label containers of controlled substances that are
larger than 55 gallon drums, as long as the information is viewed at the time
of purchase or time of delivery, provided the purchase is not considered
complete until delivery is accepted. EPA reasoned that such information,
rather than the containers themselves, is usually viewed by the recipient of
such containers. The regulations also indicated that the warning statement
must be placed directly on containers of controlled substances that are
smaller than 55 gallon drums.

Today, EPA proposes that supplemental printed material may also be used to
convey the warning statement for containers that are 55 gallons and smaller.
Since the publication of the regulations, numerous commenters have indicated
that bulk shipments of 55 gallon drum containers are often documented in
various printed materials, such as the RCRA Manifest or a Land Disposal
Restriction Form which companies are required to develop under the RCRA Land
Disposal Restrictions Program. Such a form tracks waste codes that EPA
developed specifically for that program. EPA agrees that shipments of
containers of 55 gallons or smaller containing bulk quantities of controlled
substances or waste containers of controlled substances may be labeled on
supplemental printed material as an alternative to the direct labeling of
individual containers, as long as the warning statement is clearly legible and
conspicuous in such materials and the materials accompany the containers or
are available to the consumer/waste recipient at the time of purchase.
Consequently, EPA is revising  82.108(c) of its labeling regulation to strike
"larger than a 55 gallon drum'' from the provision allowing alternative
placement of the warning statement on containers of controlled substances. EPA
requests comment on its proposal to allow alternative placement of warning
statements on 55 gallon or smaller containers.

VIII. Definition of Importer

For purposes of section 611, EPA today clarifies that importers of "products
manufactured with controlled substances'' are included in the definition of
"importer.'' While the intent of the section 611 regulations was to cover
imports of products manufactured with class I substances, the current
definition does not explicitly include such a phrase. This came about as an
oversight in transferring the definition from the phaseout regulations, where
imports of containers and products containing controlled substances are
regulated. Section 611 clearly mandates that "products manufactured with
controlled substances'' be labeled before they are introduced into interstate
commerce. Therefore, for purposes of the labeling requirements and consistency
with the statute, the definition of "importer'' under section 611 is amended
to include the phrase "products manufactured with.''

IX. Certification Requirements for Reduced Use Exemption

In  82.122, EPA stated that companies that reduced their use of CFCÄ113
and/or methyl chloroform (MCF) by 95 percent or greater over their 1990 usage
level could certify the reduction in writing to EPA and be exempt from the
labeling requirements. In addition to other requirements for inclusion in the
written certification, the regulations require that persons certifying to EPA
must state that they will not exceed 5 percent of their 1990 use following the
certification; however, the statement conveyed was numerically and
grammatically incorrect. It reads: "Persons certifying must also include a
statement that indicates that their future annual use will not at no time
exceed 95 percent of their 1990 usage'' (p.8169).

EPA proposes to correct this section of the regulations to state that a
company must certify to EPA that its future use will not exceed 5 percent of
its 1990 usage without notifying the Agency. Such notification would
immediately result in labeling of the company's products. This subpart (
82.122 (a)(4)) would thus read: "Persons certifying must also include a
statement that indicates their future annual use will at no time exceed 5
percent of their 1990 usage.''

X. Imports and Products Introduced In Bond at the U.S./Mexico Border

The final labeling regulations state that products or containers introduced
"in bond'' at the Mexico border are not considered to be "imports.'' However,
the preamble states that such products or containers are being introduced into
U.S. interstate commerce and are therefore subject to the labeling
requirements.

      Today, EPA proposes that all products and containers subject to the
labeling requirements that are made or charged in Mexico and subsequently
brought into the U.S. must be labeled at the border where they are being
introduced into U.S. interstate commerce. In order to facilitate enforcement
of this rule, the Agency only requires that warning labels be placed on
regulated products and containers at the border by persons introducing them
into U.S. interstate commerce, rather than at the manufacturing facility in
Mexico. However, the importer may contract with the Mexican manufacturer to
provide the applicable warning statement prior to shipping.

This change supersedes EPA's reference to products or containers admitted in
bond in the final labeling rule, since for purposes of the labeling
requirements, the regulated products and containers are in fact being treated
as "imports.'' This change makes the definition of import in today's proposal
somewhat different from that in the current phaseout regulations. For purposes
of the phaseout regulations, it is appropriate to exempt such products of U.S.
origin that are brought back into the U.S. from Mexico in bond from the
definition of import because allowances have already been expended and
additional consumption allowances should not be required to bring these
products back into the U.S.

However, it is appropriate and consistent with the intent of section 611 to
require labeling of these imported goods, since labeling is to occur
regardless of whether the product is distributed domestically or imported. The
Agency therefore proposes to strike from the definition of "import'' in 
82.104(j) of the labeling regulation the exemption for bringing controlled
substances, containers of, or products manufactured with, controlled
substances into the U.S. from Mexico where such substance, container or
product was admitted into Mexico in bond and is of U.S. origin.

In addition, EPA notes that the preamble to the final labeling rule contained
an inaccuracy in describing an arrangement regarding products brought from
Mexico into the United States inbond. The preamble stated that, "Under the
Maquiladora Agreement, the United States and Mexico established a free-trade
zone along a segment of the U.S./Mexico border.'' There is no formal agreement
as such between the two countries in this regard; rather, an arrangement
exists, primarily under Mexican law, whereby controlled substances crossing
the border from the U.S. into Mexico "inbond'' (under a bond ensuring that the
substance will remain in Mexico only temporarily) will be returned to the
U.S., without being subject to Mexican import tariffs. Similarly, the preamble
to the final rule states that "products are permitted to be transported across
[the Maquiladora] zone without any U.S. Customs restrictions being imposed.''
This statement is misleading in that U.S. Customs does assist EPA in
monitoring compliance with and enforcing U.S. environmental laws that
generally apply without distinction to Maquiladora products. The preamble to
the final rule should therefore be read to reflect these corrections. EPA
requests comments on these corrections.

XI. Incidental Uses of Controlled Substances

In the final regulations, the definition of "manufactured with'' excludes the
use of a controlled substance "[W]here the manufacturing equipment has had
physical contact with a controlled substance in an intermittent manner, not as
a routine part of the direct manufacturing process* * *'' (See p.8165). The
preamble gave as an example the occasional cleaning of an ink plate, where
direct contact occurs only between the controlled substance and the
manufacturing equipment, not between the controlled substance and the product
itself (other than the first one or two products going through the equipment
following equipment maintenance). However, the preamble, in addressing this
point, specifically noted that this exclusion should also apply in the case of
a controlled substance having intermittent contact with the product itself,
such as a textile where direct contact occurs through spot cleaning of some
individual textiles, but where direct contact is not a normal or usual
occurrence in the manufacture of the product.

The Agency intended for the regulatory text to reflect the full discussion in
the preamble to the final rule. Therefore, EPA today also proposes to except
in the regulatory text intermittent uses of controlled substances which may
involve an initial contact with the product itself, as well as with the
equipment. Thus the exception shall read: "[W]here the manufacturing equipment
or product has had physical contact with a controlled substance in an
intermittent manner, not as a routine part of the direct manufacturing
process* * *'' EPA requests any comments in this regard.

XII. Request for Comments Regarding Plasma Etching

      In the preamble of the final labeling rule, EPA states that "plasma
etching is considered a process that entails transformation, and thus products
manufactured using plasma etching need not be labeled, unless they are
otherwise subject to the regulations.'' Since publication of the final rule,
EPA has heard from one plasma etcher who has discovered that the plasma
etching process may not necessarily transform all but trace quantities of
controlled substances used in the process. At times, it is estimated that as
much as 40 percent may not be transformed. Therefore, plasma etching in
general may not fall under the definition of "transformation'' in the final
labeling rule.

Consequently, EPA requests comments on the whether plasma etching can be
considered generally to constitute transformation under the final labeling
rule definition, which states, "to use and entirely consume a class I or class
II substance, except for trace quantities, by changing it into one or more
substances not subject to this subpart in the manufacturing process of a
product or chemical.''

XIII. Additional Information

A. Executive Order 12866

Under Executive Order 12866 (58 FR 51735, October 4, 1994), the Agency must
determine whether the regulatory action is "significant'' and therefore
subject to OMB review and the requirements of the Executive Order. The Order
defines "significant'' regulatory action as one that is likely to lead to a
rule that may:

(1) Have an annual effect on the economy of $100 million or more, or adversely
and materially affect 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.

EPA has determined that this rule is not "significant'' under the terms of
Executive Order 12866; however, OMB requested the opportunity to review the
proposal. The Agency prepared an analysis to assess the impact of the final
labeling regulations promulgated on February 11, 1993 (see Regulatory Impact
Analysis of the Rule Requiring Labeling of Products Containing or Manufactured
With Ozone Depleting Substances, January 1993) which is available for review
in the docket for the final labeling rule. This supplemental proposal does not
impose any additional burdens as defined by E.O. 12866.

B. Regulatory Flexibility Act

The Regulatory Flexibility Act, 5 U.S.C. 601Ä612, requires that Federal
agencies examine the impacts of their regulations on small entities. Under 5
U.S.C. 604(a), whenever an agency is required to publish a general notice of
proposed rulemaking, it must prepare and make available for public comment an
initial regulatory flexibility analysis (RFA). Such an analysis is not
required if the head of an agency certifies that a rule will not have a
significant economic impact on a substantial number of small entities,
pursuant to 5 U.S.C. 605(b).

The Agency prepared a regulatory flexibility analysis, as part of the overall
regulatory impact analysis (see p.40 of Regulatory Impact Analysis of the Rule
Requiring Labeling of Products Containing or Manufactured With Ozone Depleting
Substances, January 1993) for the February 11, 1993, regulations that these
proposed regulations supplement. No additional RFA need be prepared for this
proposal because the details of this amendment did not alter the original
analysis.

C. Paperwork Reduction Act

An information collection request was prepared by EPA (ICR No. 2060Ä0259) for
the February 11, 1993, final rule. The contents of this amendment do not alter
that analysis. A copy of the ICR may be obtained by writing to the Information
Policy Branch (PMÄ223), U.S. EPA, 401 M Street, SW., Washington, DC 20460 or
by calling (202) 260Ä2740.

List of Subjects for 40 CFR Part 82

Environmental protection, Air pollution control, Chemicals,
Chlorofluorocarbons, Destruction, Exports, Imports, Interstate commerce,
Pass-through requirement, Reporting and recordkeeping requirements,
Stratospheric ozone layer.

Dated: December 17, 1993.

Carol Browner,

Administrator.

      Title 40, Code of Federal Regulations, part 82, is proposed to be
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. 7601; 42 U.S.C. 7671Ä7671(q).

2. Subpart E, 40 CFR 82.100Ä82.124, is revised to read as follows:

Subpart E The Labeling of Products Using Ozone-Depleting Substances

Sec.

82.100 Purpose.

82.102 Applicability.

82.104 Definitions.

82.106 Warning statement requirements.

82.108 Placement of warning statement.

82.110 Form of label bearing warning statement.

82.112 Removal of label bearing warning statement.

82.114 Compliance by manufacturers and importers with requirements for
labeling of containers of controlled substances, or products containing
controlled substances.

82.116 Compliance by manufacturers or importers incorporating products
manufactured with controlled substances.

82.118 Compliance by wholesalers, distributors and retailers.

82.120 Petitions.

82.122 Certification, recordkeeping, and notice requirements.

82.124 Prohibitions.

 82.100 Purpose.

The purpose of this subpart is to require warning statements on containers of,
and products containing or manufactured with, certain ozone-depleting
substances, pursuant to section 611 of the Clean Air Act, as amended.

 82.102 Applicability.

(a) In the case of substances designated as class I or class II substances as
of February 11, 1993, the effective date of the requirements in this paragraph
is May 15, 1993. In the case of any substance designated as a class I or class
II substance after February 11, 1993, the effective date of the requirements
in this paragraph of this section is either one year after the effective date
of such designation or the date provided in the rulemaking designating such
substance as a class I or class II substance, whichever comes first. On the
effective date indicated in this paragraph, the requirements of this subpart
shall apply to the following containers and products except as exempted under
paragraph (c) of this section:

(1) All containers in which a class I or class II substance is stored or
transported.

(2) All products containing a class I substance.

(3) All products directly manufactured with a process that uses a class I
substance, unless otherwise exempted by this subpart or, unless the
Administrator determines for a particular product that there are no substitute
products or manufacturing processes for such product that do not rely on the
use of a class I substance, that reduce overall risk to human health and the
environment, and that are currently or potentially available. If the
Administrator makes such a determination for a particular product, then the
requirements of this subpart are effective for such product no later than
January 1, 2015.

(b) Effective January 1, 2015 in any case, or one year after any determination
between May 15, 1993 and January 1, 2015, by the Administrator for a
particular product that there are substitute products or manufacturing
processes for such product that do not rely on the use of a class I or class
II substance, that reduce the overall risk to human health and the
environment, and that are currently or potentially available, the requirements
of this subpart shall apply to the following:

(1) All products containing a class II substance.

(2) All products manufactured with a process that uses a class II substance.

(c) The requirements of this subpart shall not apply to products manufactured
prior to May 15, 1993, provided that the manufacturer submits documentation to
EPA upon request showing that the product was manufactured prior to that date.

 82.104 Definitions.

(a) Class I substance means any substance designated as class I in 40 CFR part
82, appendix A to subpart A, including chlorofluorocarbons, halons, carbon
tetrachloride and methyl chloroform and any other substance so designated by
the Agency at a later date.

(b) Class II substance means any substance designated as class II in 40 CFR
part 82, appendix A to subpart A, including hydrochlorofluorocarbons and any
other substance so designated by the Agency at a later date.

(c) Completely destroy means to cause the expiration of a controlled substance
by one of the five destruction processes approved by the Parties at a
demonstrable destruction efficiency of 98 percent or more or a greater
destruction efficiency if required under other applicable state and federal
regulations.

(d) Consumer means a commercial or non-commercial purchaser of a product or
container that has been introduced into interstate commerce.

(e) Container means the immediate vessel in which a controlled substance is
stored or transported.

(f) Container containing means a container that physically holds a controlled
substance within its structure that is intended to be transferred to another
container, vessel or piece of equipment in order to realize its intended use.

(g) Controlled substance means a class I or class II ozone-depleting
substance.

(h) Destruction means the expiration of a controlled substance that does not
result in a commercially useful end product using one of the following
controlled processes:

(1) Liquid injection incineration;

(2) Reactor cracking;

(3) Gaseous/fume oxidation;

(4) Rotary kiln incineration; or

(5) Cement kiln.

in a manner that complies at a minimum with the "Code of Good Housekeeping''
of Chapter 5.5 of the UNEP report entitled, Ad-Hoc Technical Advisory
Committee on ODS Destruction Technologies, as well as the whole of Chapter 5
from that report, or with more stringent requirements as applicable.

      (i) Distributor means a person to whom a product is delivered or sold
for purposes of subsequent resale, delivery or export.

(j) Export means the transport of virgin, used, or recycled class I or class
II substances or products manufactured with or containing class I or class II
substances from inside the United States or its territories to persons outside
the United States or its territories, excluding United States military bases
and ships for on-board use.

(k) Exporter means the person who contracts to sell class I or class II
substances or products manufactured with or containing class I or class II
substances for export or transfers such substances or products to his
affiliate in another country.

(l) Import means to land on, bring into, or introduce into, or attempt to land
on, bring into, or introduce into any place subject to the jurisdiction of the
United States whether or not such landing, bringing, or introduction
constitutes an importation within the meaning of the customs laws of the
United States, with the exception of temporary off-loading of products
manufactured with or containers containing class I or class II substances from
a ship are used for servicing of that ship.

(m) Importer means any person who imports a controlled substance, a product
containing a controlled substance, a product manufactured with a controlled
substance, or any other chemical substance (including a chemical substance
shipped as part of a mixture or article), into the United States. "Importer''
includes the person primarily liable for the payment of any duties on the
merchandise or an authorized agent acting on his or her behalf. The term also
includes, as appropriate:

(1) The consignee;

(2) The importer of record listed on U.S. Customs Service forms for the
import;

(3) The actual owner if an actual owner's declaration and superseding bond has
been filed; or

(4) The transferee, if the right to draw merchandise in a bonded warehouse has
been transferred.

(n) Interstate commerce means the distribution or transportation of any
product between one state, territory, possession or the District of Columbia,
and another state, territory, possession or the District of Columbia, or the
sale, use or manufacture of any product in more than one state, territory,
possession or District of Columbia. The entry points for which a product is
introduced into interstate commerce are the release of a product from the
facility in which the product was manufactured, the entry into a warehouse
from which the domestic manufacturer releases the product for sale or
distribution, and at the site of United States Customs clearance.

(o) Manufactured with a controlled substance means that the manufacturer of
the product itself used a controlled substance directly in the product's
manufacturing, but the product itself does not contain more than trace
quantities of the controlled substance at the point of introduction into
interstate commerce. The following situations are excluded from the meaning of
the phrase "manufactured with'' a controlled substance:

(1) Where a product has not had physical contact with the controlled
substance; or

(2) Where the manufacturing equipment or the product has had physical contact
with a controlled substance in an intermittent manner, not as a routine part
of the direct manufacturing process;

(3) Where the controlled substance has been transformed, except for trace
quantities; or

(4) Where the controlled substance has been completely destroyed.

(p) Potentially available means that adequate information exists to make a
determination that the substitute is technologically feasible, environmentally
acceptable and economically viable.

(q) Principal display panel (PDP) means the entire portion of the surface of a
product, container or its outer packaging that is most likely to be displayed,
shown, presented, or examined under customary conditions of retail sale. The
area of the PDP is not limited to the portion of the surface covered with
existing labeling; rather it includes the entire surface, excluding flanges,
shoulders, handles, or necks.

(r) Product means an item or category of items manufactured from raw or
recycled materials, or other products, which is used to perform a function or
task.

(s) Product containing means a product including, but not limited to,
containers, vessels, or pieces of equipment, that physically holds a
controlled substance at the point of sale to the ultimate consumer which
remains within the product.

(t) Promotional printed material means any informational or advertising
material (including, but not limited to, written advertisements, brochures,
circulars, desk references and fact sheets) that is prepared by the
manufacturer for display or promotion concerning a product or container, and
that does not accompany the product to the consumer.

(u) Retailer means a person to whom a product is delivered or sold, if such
delivery or sale is for purposes of sale or distribution in commerce to
consumers who buy such product for purposes other than resale.

(v) Spare parts means those parts that are supplied by a manufacturer to
another manufacturer, distributor, or retailer, for purposes of replacing
similar parts with such parts in the repair of a product.

(w) Supplemental printed material means any informational material (including,
but not limited to, package inserts, fact sheets, invoices, material safety
data sheets, procurement and specification sheets, or other material) which
accompanies a product or container to the consumer at the time of purchase.

(x) Transform means to use and entirely consume a class I or class II
substance, except for trace quantities, by changing it into one or more
substances not subject to this subpart in the manufacturing process of a
product or chemical.

(y) Type size means the actual height of the printed image of each capital
letter as it appears on a label.

(z) Ultimate consumer means the first commercial or non-commercial purchaser
of a container or product that is not intended for re-introduction into
interstate commerce as a final product or as part of another product.

(aa) Warning label means the warning statement required by section 611 of the
Act. The term warning statement shall be synonymous with warning label for
purposes of this subpart.

(bb) Waste means, for purposes of this subpart, items or substances that are
discarded with the intent that such items or substances will serve no further
useful purpose.

      (cc) Wholesaler means a person to whom a product is delivered or sold,
if such delivery or sale is for purposes of sale or distribution to retailers
who buy such product for purposes of resale.

 82.106 Warning statement requirements.

(a) Required warning statements. Unless otherwise exempted by this subpart,
each container or product identified in  82.102(a) or (b) shall bear the
following warning statement, meeting the requirements of this subpart for
placement and form:

WARNING: Contains [or Manufactured with, if applicable] [insert name of
substance], a substance which harms public health and environment by
destroying ozone in the upper atmosphere.

(b) Exemptions from warning label requirement. The following products need not
bear a warning label:

(1) Products containing trace quantities of a controlled substance remaining
as a residue or impurity due to a chemical reaction, and where the controlled
substance serves no useful purpose in or for the product itself. However, if
such product was manufactured using the controlled substance, the product is
required to be labeled as a "product manufactured with'' the controlled
substance, unless otherwise exempted.

(2) Containers containing a controlled substance in which trace quantities of
that controlled substance remain as a residue or impurity.

(3) Waste containing controlled substances or blends of controlled substances
bound for discard.

(4) Products manufactured using methyl chloroform or CFCÄ113 by persons who
can demonstrate and certify a 95% reduction in overall usage from their 1990
calendar year usage of methyl chloroform or CFCÄ113 as solvents during a
twelve (12) month period ending within sixty (60) days of such certification
or during the most recently completed calendar year. In calculating such
reduction, persons may subtract from quantities used those quantities for
which they possess accessible data that establishes the amount of methyl
chloroform or CFCÄ113 transformed. Such subtraction must be performed for both
the applicable twelve month period and the 1990 calendar year. If at any time
future usage exceeds the 95% reduction, all products manufactured with methyl
chloroform or CFCÄ113 as solvents by that person must be labeled immediately.
No person may qualify for this exemption after May 15, 1994.

(5) Products intended only for export outside of the United States shall not
be considered "products introduced into interstate commerce'' provided such
products are clearly designated as intended for export only.

(6) Products that are otherwise not subject to the requirements of this
subpart that are being repaired, using a process that uses a controlled
substance.

(7) Products, processes, or substitute chemicals undergoing research and
development, by which a controlled substance is used. Such products must be
labeled when they are introduced into interstate commerce.

(c) Interference with other required labeling information. The warning
statement shall not interfere with, detract from, or mar any labeling
information required on the labeling by federal or state law.

 82.108 Placement of warning statement.

The warning statement shall be placed so as to satisfy the requirement of the
Act that the warning statement be "clearly legible and conspicuous.'' The
warning statement is clearly legible and conspicuous if it appears with such
prominence and conspicuousness as to render it likely to be read and
understood by consumers under normal conditions of purchase. Such placement
includes, but is not limited to, the following:

(a) Display panel placement. For any affected product or container that has a
display panel that is normally viewed by the purchaser at the time of the
purchase, the warning statement described in  82.106 may appear on any such
display panel of the affected product or container such that it is "clearly
legible and conspicuous'' at the time of the purchase. If the warning
statement appears on the principal display panel or outer packaging of any
such affected product or container, the warning statement shall qualify as
"clearly legible and conspicuous,'' as long as the label also fulfills all
other requirements of this subpart and is not obscured by any outer packaging,
as required by paragraph (b) of this section. The warning statement need not
appear on such display panel if either:

(1) The warning statement appears on the outer packaging of the product or
container, consistent with paragraph (b) of this section, and is clearly
legible and conspicuous; or

(2) The warning statement is placed in a manner consistent with paragraph (c)
of this section.

(b) Outer packaging. If the product or container is normally packaged,
wrapped, or otherwise covered when viewed by the purchaser at the time of the
purchase the warning statement described in  82.106 shall appear on any outer
packaging, wrapping or other covering used in the retail display of the
product or container, such that the warning statement is clearly legible and
conspicuous at the time of the purchase. If the outer packaging has a display
panel that is normally viewed by the purchaser at the time of the purchase,
the warning statement shall appear on such display panel. If the warning
statement so appears on such product's or container's outer packaging, it need
not appear on the surface of the product or container, as long as the
statement also fulfills all other requirements of this subpart. The warning
statement need not appear on such outer packaging if either:

(1) The warning statement appears on the surface of the product or container,
consistent with paragraph (a) of this section, and is clearly legible and
conspicuous through any outer packaging, wrapping or other covering used in
display; or

(2) The warning statement is placed in a manner consistent with paragraph (c)
of this section.

      (c) Alternative placement. The warning statement may be placed on a hang
tag, tape, card, sticker, invoice, bill of lading, supplemental printed
material, or similar overlabeling that is securely attached to the container,
product, outer packaging or display case, or accompanies the product
containing or manufactured with a controlled substance or a container
containing class I or class II substances through its sale to the consumer or
ultimate consumer. For prescription medical products that have been found to
be essential for patient health by the Food and Drug Administration, the
warning statement may be placed in supplemental printed material intended to
be read by the prescribing physician, as long as the following statement is
placed on the product, its packaging, or supplemental printed material
intended to be read by the patient: "This product contains [insert name of
substance], a substance which harms the environment by depleting ozone in the
upper atmosphere.'' In any case, the warning statement must be clearly legible
and conspicuous at the time of the purchase.

(d) Products not viewed by the purchaser at the time of purchase. Where the
purchaser of a product cannot view a product, its packaging or alternative
labeling such that the warning statement is clearly legible and conspicuous at
the time of purchase, as specified under paragraph (a), (b), or (c) of this
section, the warning statement may be placed in the following manner:

(1) Where promotional printed material is prepared for display or
distribution, the warning statement may be placed on such promotional printed
material such that it is clearly legible and conspicuous at the time of
purchase; or

(2) The warning statement may be placed on the product, on its outer
packaging, or on alternative labeling, consistent with paragraph (a), (b), or
(c) of this section, such that the warning statement is clearly legible and
conspicuous at the time of product delivery, if the product may be returned by
the purchaser at or after the time of delivery or if the purchase is not
complete until the time of delivery (e.g., products delivered C.O.D.).

 82.110 Form of label bearing warning statement.

(a) Conspicuousness and contrast. (1) The warning statement shall appear in
conspicuous and legible type by typography, layout, and color with other
printed matter on the label.

(2) The warning statement shall appear in sharp contrast to any background
upon which it appears. Examples of combinations of colors which may not
satisfy the proposed requirement for sharp contrast are: black letters on a
dark blue or dark green background, dark red letters on a light red
background, light red letters on a reflective silver background, and white
letters on a light gray or tan background.

(b) Name of substance. The name of the class I or class II substance to be
inserted into the warning statement shall be the standard chemical name of the
substance as listed in 40 CFR part 82, appendix A to subpart A, except that:

(1) The acronym "CFC'' may be substituted for "chlorofluorocarbon.''

(2) The acronym "HCFC'' may be substituted for "hydrochlorofluorocarbon.''

(3) The term "1,1,1-trichloroethane'' may be substituted for "methyl
chloroform.''

(c) Combined statement for multiple class I substances. If a container
containing or a product contains or is manufactured with, more than one class
I or class II substance, the warning statement may include the names of all of
the substances in a single warning statement, provided that the combined
statement clearly distinguishes which substances the container or product
contains and which were used in the manufacturing process.

(d) Format. (1) The warning statement shall be blocked within a square or
rectangular area, with or without a border.

(2) The warning statement shall appear in lines that are parallel to the
surrounding text on the product's PDP, display panel, supplemental printed
material or promotional printed material.

(e) Type style. The ratio of the height of a capital letter to its width shall
be such that the height of the letter is no more than 3 times its width; the
signal word "WARNING'' shall appear in all capital letters.

(f) Type size. The warning statement shall appear at least as large as the
type sizes prescribed by this paragraph. The type size refers to the height of
the capital letters. A larger type size materially enhances the legibility of
the statement and is desirable.

(1) Display panel or outer packaging. Minimum type size requirements for the
warning statement are given in Table 1 and are based upon the area of the
display panel of the product or container. Where the statement is on the outer
packaging, as well as the display panel area, the statement shall appear in
the same minimum type size as on the display panel.

     c7,L2(,0,),p0,8/9,i1,s50,6,6,6,6,6,6

Table 1

 [col head 1]   [col head 1]   [col head 1]   [col head 1]   [col head 1] 
 [col head 1]   [col head 1]



Area of Display Panel (sq. in.)

	0Ä2

	>2Ä5

	>5Ä10

	>10Ä15

	>15Ä30

	>30

Type size (in.)*

Signal word

	\3/64\

	\1/16\

	\3/32\

	\7/64\

	\1/8\

	\5/32\

Statement

	\3/64\

	\3/64\

	\1/16\

	\3/32\

	\3/32\

	\7/64\

>Means greater than.

*Minimum height of printed image of letters.

(2) Alternative placement. The minimum type size for the warning statement on
any alternative placement which meets the requirements of  82.108(c) is 3/32
inches for the signal word and 1/16 of an inch for the statement.

(3) Promotional printed material. The minimum type size for the warning
statement on promotional printed material is 3/32 inches for the signal word
and 1/16 of an inch for the statement, or the type size of any surrounding
text, whichever is larger.

 82.112 Removal of label bearing warning statement.

(a) Prohibition on removal. Except as described in paragraph (b) or (c) of
this section, any warning statement that accompanies a product or container
introduced into interstate commerce, as required by this subpart, must remain
with the product or container and any product incorporating such product or
container, up to and including the point of sale to the ultimate consumer.

(b) Incorporation of warning statement by subsequent manufacturers. A
manufacturer of a product that incorporates a product that is accompanied by a
label bearing the warning statement may remove such label from the
incorporated product if the information on such label is incorporated into a
warning statement accompanying the manufacturer's product, or if, pursuant to
paragraph (c) of this section, the manufacturer of the product is not required
to pass through the information contained on or incorporated in the product's
label.

      (c) Manufacturers that incorporate products manufactured with controlled
substances. A manufacturer that incorporates into its own product a component
product that: (1) Was purchased from another manufacturer, (2) was
manufactured with a process that uses a controlled substance(s), but (3) does
not contain such substance(s), may remove such label from the incorporated
product and need not apply a warning statement to its own product, if the
manufacturer does not use a controlled substance in its own manufacturing
process. A manufacturer that uses controlled substances in its own
manufacturing process, and is otherwise subject to the regulations of this
subpart, must label pursuant to  82.106, but need not include information
regarding the incorporated product on the required label.

(d) Manufacturers, distributors, wholesalers, retailers that sell spare parts
manufactured with controlled substances solely for repair. Manufacturers,
distributors, wholesalers, and retailers that purchase spare parts
manufactured with a class I substance from another manufacturer or supplier,
and sell such spare parts for the sole purpose of repair, are not required to
pass through an applicable warning label if such products are removed from the
original packaging provided by the manufacturer from whom the products are
purchased. Manufacturers of the spare parts manufactured with controlled
substances must still label their products; furthermore, manufacturers,
importers, and distributors of such products must pass through the labeling
information as long as products remain assembled and packaged in the manner
assembled and packaged by the original manufacturer. This exemption shall not
apply if a spare part is later used for manufacture and/or for purposes other
than repair.

 82.114 Compliance by manufacturers and importers with requirements for
labeling of containers of controlled substances, or products containing
controlled substances.

(a) Compliance by manufacturers and importers with requirements for labeling
of containers of controlled substances, or products containing controlled
substances. Each manufacturer of a product incorporating another product or
container containing a controlled substance, to which  82.102 (a)(1), or,
(a)(2) or (b)(1) applies, that is purchased or obtained from another
manufacturer or supplier, is required to pass through and incorporate the
labeling information that accompanies such incorporated product in a warning
statement accompanying the manufacturer's finished product. Each importer of a
product, or container containing a controlled substance, to which  82.102
(a)(1), (a)(2), or (b)(1) applies, including a component product or container
incorporated into the product, that is purchased from a foreign manufacturer
or supplier, is required to apply a label, or to ensure that a label has been
properly applied, at the site of U.S. Customs clearance.

(b) Reliance on reasonable belief. The manufacturer or importer of a product
that incorporates another product containing from another manufacturer or
supplier may rely on the labeling information (or lack thereof) that it
receives with the product, and is not required to independently investigate
whether the requirements of this subpart are applicable to such purchased
product or container, as long as the manufacturer reasonably believes that the
supplier or foreign manufacturer is reliably and accurately complying with the
requirements of this subpart.

(c) Contractual obligations. A manufacturer's or importer's contractual
relationship with its supplier under which the supplier is required to
accurately label, consistent with the requirements of this subpart, any
products containing a controlled substance or containers of a controlled
substance that are supplied to the manufacturer or importer, is evidence of
reasonable belief.

 82.116 Compliance by manufacturers or importers incorporating products
manufactured with controlled substances.

(a) Compliance by manufacturers or importers incorporating products
manufactured with controlled substances, or importing products manufactured
with controlled substances. Each manufacturer or importer of a product
incorporating another product to which  82.102 (a)(3), or, (b)(2) applies,
that is purchased from another manufacturer or supplier, is not required to
pass through and incorporate the labeling information that accompanies such
incorporated product in a warning statement accompanying the manufacturer's or
importer's finished product. Importers of products to which  82.102 (a)(3) or
(b)(2) applies are required to apply a label, or to ensure that a label has
been properly applied at the site of U.S. Customs clearance.

(b) Reliance on reasonable belief. The importer of a product purchased or
obtained from a foreign manufacturer or supplier, which product may have been
manufactured with a controlled substance, may rely on the information that it
receives with the purchased product, and is not required to independently
investigate whether the requirements of this subpart are applicable to the
purchased or obtained product, as long as the importer reasonably believes
that there was no use of controlled substances by the final manufacturer of
the product being imported.

      (c) Contractual obligations. An importer's contractual relationship with
its supplier under which the supplier is required to accurately label,
consistent with the requirements of this subpart, any products manufactured
with a controlled substance that are supplied to the importer, or to certify
to the importer whether a product was or was not manufactured with a
controlled substance is evidence of reasonable belief.

 82.118 Compliance by wholesalers, distributors and retailers.

(a) Requirement of compliance by wholesalers, distributors and retailers. All
wholesalers, distributors and retailers of products or containers to which
this subpart applies are required to pass through the labeling information
that accompanies the product, except those purchasing from other manufacturers
or suppliers spare parts manufactured with controlled substances and selling
those parts for the demonstrable sole purpose of repair.

(b) Reliance on reasonable belief. The wholesaler, distributor or retailer of
a product may rely on the labeling information that it receives with the
product or container, and is not required to independently investigate whether
the requirements of this subpart are applicable to the product or container,
as long as the wholesaler, distributor or retailer reasonably believes that
the supplier of the product or container is reliably and accurately complying
with the requirements of this subpart.

(c) Contractual obligations. A wholesaler, distributor or retailer's
contractual relationship with its supplier under which the supplier is
required to accurately label, consistent with the requirements of this
subpart, any products manufactured with a controlled substance that are
supplied to the wholesaler, distributor or retailer is evidence of reasonable
belief.

 82.120 Petitions.

(a) Requirements for procedure and timing. Persons seeking to apply the
requirements of this regulation to a product containing a class II substance
or a product manufactured with a class I or a class II substance which is not
otherwise subject to the requirements, or to temporarily exempt a product
manufactured with a class I substance, based on a showing of a lack of
currently or potentially available alternatives, from the requirements of this
regulation may submit petitions to: Labeling Program Manager, Stratospheric
Protection Division, Office of Atmospheric Programs, U.S. Environmental
Protection Agency, 6202ÄJ, 401 M Street, SW., Washington, DC 20460. Such
persons must label their products while such petitions are under review by the
Agency.

(b) Requirement for adequate data. Any petition submitted under paragraph (a)
of this section shall be accompanied by adequate data, as defined in 
82.120(c). If adequate data are not included by the petitioner, the Agency may
return the petition and request specific additional information.

(c) Adequate data. A petition shall be considered by the Agency to be
supported by adequate data if it includes all of the following:

(1) A part clearly labeled "Section I.A.'' which contains the petitioner's
full name, company or organization name, address and telephone number, the
product that is the subject of the petition, and, in the case of a petition to
temporarily exempt a product manufactured with a class I substance from the
labeling requirement, the manufacturer or manufacturers of that product.

(2) For petitions to temporarily exempt a product manufactured with a class I
substance only, a part clearly labeled "Section I.A.T.'' which states the
length of time for which an exemption is requested.

(3) A part clearly labeled "Section I.B.'' which includes the following
statement, signed by the petitioner or an authorized representative:

I certify under penalty of law that I have personally examined and am familiar
with the information submitted in this petition and all attached documents,
and that, based on my inquiry of those individuals immediately responsible for
obtaining the information, I believe that the submitted information is true,
accurate, and complete. I am aware that there are significant penalties for
submitting false information.

(4) A part clearly labeled "Section I.C.'' which fully explains the basis for
the petitioner's request that EPA add the labeling requirements to or remove
them from the product which is the subject of the petition, based specifically
upon the technical facility or laboratory tests, literature, or economic
analysis described in paragraphs C(5), (6) and (7).

(5) A part clearly labeled "Section II.A.'' which fully describes any
technical facility or laboratory tests used to support the petitioner's claim.

(6) A part clearly labeled "Section II.B.'' which fully explains any values
taken from literature or estimated on the basis of known information that are
used to support the petitioner's claim.

(7) A part clearly labeled "Section II.C.'' which fully explains any economic
analysis used to support the petitioner's claim.

      (d) Criteria for evaluating petitions. Adequate data in support of any
petition to the Agency to add a product to the labeling requirement or
temporarily remove a product from the labeling requirement will be evaluated
based upon a showing of sufficient quality and scope by the petitioner of
whether there are or are not substitute products or manufacturing processes
for such product:

(1) That do not rely on the use of such class I or class II substance;

(2) That reduce the overall risk to human health and the environment; and

(3) That are currently or potentially available.

(e) Procedure for acceptance or denial of petition. (1) If a petition
submitted under this section contains adequate data, as defined under
paragraph (c) of this section, the Agency shall within 180 days after
receiving the complete petition either accept the petition or deny the
petition.

(2) If the Agency makes a decision to accept a petition to apply the
requirements of this regulation to a product containing or manufactured with a
class II substance, the Agency will notify the petitioner and publish a
proposed rule in the Federal Register to apply the labeling requirements to
the product.

(3) If the Agency makes a decision to deny a petition to apply the
requirements of this regulation to a product containing or manufactured with a
class II substance, the Agency will notify the petitioner and publish an
explanation of the petition denial in the Federal Register.

(4) If the Agency makes a decision to accept a petition to temporarily exempt
a product manufactured with a class I substance from the requirements of this
regulation, the Agency will notify the petitioner and publish a proposed rule
in the Federal Register to temporarily exempt the product from the labeling
requirements. Upon notification by the Agency, such manufacturer may
immediately cease its labeling process for such exempted products.

(5) If the Agency makes a decision to deny a petition to temporarily exempt a
product manufactured with a class I substance from the requirements of this
regulation, the Agency will notify the petitioner and may, in appropriate
circumstances, publish an explanation of the petition denial in the Federal
Register.

 82.122 Certification, recordkeeping, and notice requirements.

(a) Certification. (1) Persons claiming the exemption provided in 
82.106(b)(2) must submit a written certification to the following address:
Labeling Program Manager, Stratospheric Protection Division, Office of
Atmospheric Programs, 6202ÄJ, 401 M Street, SW., Washington, DC 20460.

(2) The certification must contain the following information:

(i) The exact location of documents verifying calendar year 1990 usage and the
95% reduced usage during a twelve month period;

(ii) A description of the records maintained at that location;

(iii) A description of the type of system used to track usage;

(iv) An indication of which 12 month period reflects the 95% reduced usage,
and;

(v) Name, address, and telephone number of a contact person.

(3) Persons who submit certifications postmarked on or before May 15, 1993,
need not place warning labels on their products manufactured using CFCÄ113 or
methyl chloroform as a solvent. Persons who submit certifications postmarked
after May 15, 1993, must label their products manufactured using CFCÄ113 or
methyl chloroform as a solvent for 14 days following such submittal of the
certification.

(4) Persons certifying must also include a statement that indicates that their
future annual use will not at no time exceed 95% of their 1990 usage.

(5) Certifications must be signed by the owner or a responsible corporate
officer.

(6) If the Administrator determines that a person's certification is
incomplete or that information supporting the exemption is inadequate, then
products manufactured using CFCÄ113 or methyl chloroform as a solvent by such
person must be labeled pursuant to  82.106(a).

(b) Recordkeeping. Persons claiming the exemption under  82.106(b)(2) must
retain supporting documentation at one of their facilities.

(c) Notice Requirements. Persons who claim an exemption under  82.106(b)(2)
must submit a notice to the address in paragraph (a)(1) of this section within
30 days of the end of any 12 month period in which their usage of CFCÄ113 or
methyl chloroform used as a solvent exceeds the 95% reduction from calendar
year 1990.

 82.124 Prohibitions.

(a) Warning statement (1) Absence or presence of warning statement. (i)
Effective May 15, 1993, except as indicated in paragraph (a)(5) of this
section, no container or product identified in  82.102(a) may be introduced
into interstate commerce unless it bears a warning statement that complies
with the requirements of  82.106(a) of this subpart, unless such labeling is
not required under  82.102(c), 82.106(b), 82.112 (c) or (d), 82.116(a),
82.118(a), or temporarily exempted pursuant to  82.120.

(ii) On January 1, 2015, or any time between May 15, 1993 and January 1, 2015
that the Administrator determines for a particular product manufactured with
or containing a class II substance that there are substitute products or
manufacturing processes for such product that do not rely on the use of a
class I or class II substance, that reduce the overall risk to human health
and the environment, and that are currently or potentially available, no
product identified in  82.102(b) may be introduced into interstate commerce
unless it bears a warning statement that complies with the requirements of 
82.106 of this subpart, unless such labeling is not required under 
82.106(b), 82.112 (c) or (d), 82.116(a) or 82.118(a).

(2) Placement of warning statement. (i) On May 15, 1993, except as indicated
in paragraph (a)(5) of this section, no container or product identified in 
82.102(a) may be introduced into interstate commerce unless it bears a warning
statement that complies with the requirements of  82.108 of this subpart,
unless such labeling is not required under  82.102(c), 82.106(b), 82.112 (c)
or (d), 82.116(a), 82.118(a), or temporarily exempted pursuant to  82.120.

(ii) On January 1, 2015, or any time between May 15, 1993 and January 1, 2015
that the Administrator determines for a particular product manufactured with
or containing a class II substance that there are substitute products or
manufacturing processes for such product that do not rely on the use of a
class I or class II substance, that reduce the overall risk to human health
and the environment, and that are currently or potentially available, no
product identified in  82.102(b) may be introduced into interstate commerce
unless it bears a warning statement that complies with the requirements of 
82.108 of this subpart, unless such labeling is not required under 
82.106(b), 82.112 (c) or (d), 82.116(a) or 82.118(a).

(3) Form of label bearing warning statement. (i) Effective May 15, 1993,
except as indicated in paragraph (a)(5) of this section, no container or
product identified in  82.102(a) may be introduced into interstate commerce
unless it bears a warning statement that complies with the requirements of 
82.110 of this subpart, unless such labeling is not required pursuant to 
82.102(c), 82.106(b), 82.112 (c) or (d), 82.116(a), 82.118(a), or temporarily
exempted pursuant to  82.120.

(ii) On January 1, 2015, or any time between May 15, 1993 and January 1, 2015
that the Agency determines for a particular product manufactured with or
containing a class II substance, that there are substitute products or
manufacturing processes that do not rely on the use of a class I or class II
substance, that reduce the overall risk to human health and the environment,
and that are currently or potentially available, no product identified in 
82.102(b) may be introduced into interstate commerce unless it bears a warning
statement that complies with the requirements of  82.110 of this subpart,
unless such labeling is not required pursuant to  82.106(b), 82.112 (c) or
(d), 82.116(a), or 82.118(a).

(4) On or after May 15, 1993, no person may modify, remove or interfere with
any warning statement required by this subpart, except as described in 
82.112 of this subpart.

(5) In the case of any substance designated as a class I or class II substance
after February 11, 1993, the prohibitions in paragraphs (a)(1)(i), (a)(2)(i),
and (a)(3)(i) of this section shall be effective one year after the effective
date of designation of such substance as a class I or class II substance or
effective on the date provided in the rulemaking designating such substance as
a class I or class II substance, whichever comes first.

[FR Doc. 93Ä31859 Filed 12Ä29Ä93; 8:45 am]

BILLING CODE 6560Ä50ÄP

Thursday

December 30, 1993

Part V

Department of Defense

General Services Administration

National Aeronautics and Space Administration

48 CFR Part 2, et al.

Federal Acquisition Regulation; Electronic Contracting; Proposed Rule