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U.S. EPA's
Proposed HCFC Allocation Rule
Proposed by EPA July 20, 2001

  • Overview

    • HCFC Allocation will control U.S. production and consumption of HCFCs in accordance with U.S. obligations under the Montreal Protocol's HCFC consumption cap.
    • Both Production & Consumption Allocations
    • Comparable to CFCs
    • Chemical-by-chemcial, absolute kilogram system
    • Re-evaluate prior to 1/1/2010
    • Eliminating HCFC-141b will achieve mandated 35% reduction in 2004
    • Rejected re-allocation of allowances which are not used
    • Space vehicle/defense needs up to 1% of 141b total baseline above allocation
    • Used HCFC imports require significant paper trail
    • Quarterly reports, due within 15 days
  • Consumption*
            * Consumption = Production + Imports - Exports - Feed stocks

    • Allocated to Producers/Importers --- 85% of CAP
    • Allocated to New Entrants on record January 1, 1998 through April 15, 1999
    • Allocation baseline 1989, 1994, 1995, 1996, 1997
      • Single year highest ODP for company
    • Chemical phase-out date --> remove allowances from company
  • Production

    • Baseline same years as Consumption
      • Only 86% of total due to Montreal Protocol limit
    • Post chemical phase-out date, 15% of baseline for developing countries
    • Imports/Exports with Copenhagen Signatories only
  • Transfers/Trades

    • Inter-company allowed
    • Inter-chemical allowed
    • International --- Production allowances only permitted
    • 0.1% offset, excluding international
    • Current year (temporary) or permanent
 
 
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