Methyl Bromide Critical Use Exemption Program

1. Methyl Bromide Critical Use Exemption Program Marta Montoro, US EPA/Office of Atmospheric Programs USDA/ARS NP 308 Methyl Bromide Assessment & Customer Workshop February 28, 2006 Monterey, CA

2. Overview of Presentation • Methyl Bromide (MeBr) Critical Use Exemption (CUE) Background • CUE Program Implementation • CUE Regulatory Process • Conclusions

3. Background: CUE and MeBr Phaseout • 1990 Clean Air Act (CAA) required MeBr phaseout in 2001, no exemptions • U.S. pushed for schedule to match Montreal Protocol (2005) • 1998 CAA Amendment aligned U.S., Protocol • 25% in 1999 • 50% in 2001 • 75% in 2003 • 100% in 2005 (with allowable exemptions such as CUEs, Quarantine & Preshipment) • 2015 phaseout date for developing countries (some countries have accelerated the phaseout)

4. Steps in Implementing CUE Process • EPA solicits CUE applications from MeBr users through a Federal Register notice • EPA conducts technical & economic review of applications • U.S. govt. develops Critical Use Nomination (CUN) • State Dept. submits CUN to Ozone Secretariat • Forwarded to Technology and Economic Assessment Panel (TEAP) & subsidiary body, Methyl Bromide Technical Options Committee (MBTOC) • MBTOC reviews CUNs (2nd technical review, after EPA), provides recommendations to Parties • Parties authorize exemptions in consensus-based fashion • EPA conducts allocation Notice and Comment Rulemaking

5. CUE Implementation: Cont’d. • All applications are carefully reviewed and assessed by EPA experts • Technical analysis (pest pressure, effective alternatives, etc.) • Economic analysis (yield losses, operating costs, etc.) • The annual CUN is calculated on behalf of all U.S. critical users • MBTOC now requires specific information on certain sectors during their review process in order to make recommendations

6. CUE Requests Granted

7. Regulatory Process • EPA regulations typically require 12-18 months to become effective • Sample Notice of Proposed Rulemaking (NPRM) Process: • EPA Inter-Office Work Group concurrence required for significant actions • Inter-Agency agreement required for MeBr rules, to ensure USDA, Dept. of State collaboration • Office of Management & Budget (OMB) review--up to 90 days • Package routed for signature & publication • Public Comment period (30-60 days) • Process repeated for Final Rules (except Public Comment) • MeBr CUE regulations have all required expedited scheduling

8. CUE Allocation • Amount of overall total quantity allocation authorized by EPA mirrors Decisions taken by Parties • The Parties authorize most of the CUE from new production, with the difference taken from pre-phaseout existing inventory • Critical Use Allowances (CUAs) • Critical Stock Allowances (CSAs) • More flexible option (universal cap) preferred during Allocation Framework NPRM comment period (as opposed to sector-specific allocation) • Pre-plant cap (CUAs) • Post-harvest cap (CUAs) • CSAs are unrestricted

9. Regulatory Process: cont’d.

10. Conclusions • U.S. CUE process very successful thus far; 90% of all U.S. requests granted for 2005-07 calendar years • Future CUE authorizations from the Parties will continue to depend on robust nominations, research, and transition plans for alternatives • EPA does not expect any delays in promulgating the 2007 CUE rule because all authorizations were granted 1 full year in advance • Thank you to USDA and CUE applicants for your continued support and hard work!