HCFC Regulations

• 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