81_FR_30523 81 FR 30429 - Federal Acquisition Regulation: High Global Warming Potential Hydrofluorocarbons

81 FR 30429 - Federal Acquisition Regulation: High Global Warming Potential Hydrofluorocarbons

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Federal Register Volume 81, Issue 94 (May 16, 2016)

Page Range30429-30438
FR Document2016-10998

DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to implement Executive branch policy in the President's Climate Action Plan to procure, when feasible, alternatives to high global warming potential (GWP) hydrofluorocarbons (HFCs). This final rule will allow agencies to better meet the greenhouse gas emission reduction goals and reporting requirements of the Executive Order on Planning for Sustainability in the Next Decade.

Federal Register, Volume 81 Issue 94 (Monday, May 16, 2016)
[Federal Register Volume 81, Number 94 (Monday, May 16, 2016)]
[Rules and Regulations]
[Pages 30429-30438]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-10998]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1, 2, 7, 11, 23, 25, and 52

[FAC 2005-88; FAR Case 2014-026; Item I; Docket No. 2014-0026; Sequence 
1]
RIN 9000-AM87


Federal Acquisition Regulation: High Global Warming Potential 
Hydrofluorocarbons

AGENCY: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the 
Federal Acquisition Regulation (FAR) to implement Executive branch 
policy in the President's Climate Action Plan to procure, when 
feasible, alternatives to high global warming potential (GWP) 
hydrofluorocarbons (HFCs). This final rule will allow agencies to 
better meet the greenhouse gas emission reduction goals and reporting 
requirements of the Executive Order on Planning for Sustainability in 
the Next Decade.

DATES: Effective: June 15, 2016.

FOR FURTHER INFORMATION CONTACT: Mr. Charles Gray, Procurement Analyst, 
at 703-795-6328, for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat Division at 202-501-4755. Please cite FAC 2005-88, FAR Case 
2014-026.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD, GSA, and NASA published a proposed rule at 80 FR 26883, on May 
11, 2015, to implement Executive branch policy in the President's 
Climate Action Plan to procure, when feasible, alternatives to high GWP 
HFCs. This final rule will allow agencies to better meet the greenhouse 
gas emission reduction goals and reporting requirements of the 
Executive Order 13693, Planning for Federal Sustainability in the Next 
Decade, of March 25, 2015.
    Sixteen respondents submitted comments on the proposed rule.

II. Discussion and Analysis

    The Civilian Agency Acquisition Council and the Defense Acquisition 
Regulations Council (the Councils) reviewed the public comments in the 
development of the final rule. A discussion of the comments and the 
changes made to the rule as a result of those comments are provided as 
follows:
A. Summary of Significant Changes From the Proposed Rule
    In response to public comments received, the final rule contains 
the following changes from the proposed rule:
     Clarified the definition of ``high global warming 
potential hydrofluorocarbons'' to make it specific to a particular end 
use.
     Included the use of reclaimed HFCs as products that 
minimize or eliminate the use, release, or emission of high GWP HFCs.
     Clarified that the clause prescription exception is for 
supplies that will be delivered outside the United States and its 
outlying areas as well as for contracts for services performed outside 
the United States and its outlying areas.
     Added in the clauses at 52.223-20 and 52.223-21 
environmental, technical, and economic factors to consider when 
determining feasibility.
B. Analysis of Public Comments
1. General
a. Support the Objectives of the Rule
    Comments: Many of the respondents expressed specific support for 
the objectives of the rule. Several respondents applauded DoD, GSA, and 
NASA in proposing that Federal agencies procure, when feasible, 
alternatives to high-GWP HFC refrigerants. Other respondents stated 
that the proposed rule is a step in the right direction and could have 
considerable impact on reducing the Government's greenhouse gas 
emissions and helping Federal agencies and departments meet several 
Executive actions and orders pertaining to HFCs.
    Response: Noted.
b. Oppose the Objectives of the Rule
    Comment: One respondent believed that global warming is a farce and 
that the Government should not be allowed to acquire anything because 
of global warming.
    Response: The FAR Council is responsible for the implementation of 
the Executive orders and policies of the Administration. DoD, NASA, and 
GSA have prepared this rule to implement and facilitate compliance with 
Executive Order 13693, Planning for Sustainability in the Next Decade, 
and the President's Climate Action Plan.
2. Definition of ``high global warming potential hydrofluorocarbons''
    Various respondents commented on the definition of ``high global 
warming potential hydrofluorocarbons.'' One of these respondents 
questioned whether the identification of a lower GWP HFC alternative 
pursuant to the SNAP program meant that the Government would be 
required to use the alternative.
    Response: The Councils have further clarified in the final rule 
that the term ``high global warming potential hydrofluorocarbons'' 
means any hydrofluorocarbons in a particular end use for which EPA's 
Significant New Alternatives Policy (SNAP) program has identified other 
acceptable alternatives that have lower global warming potential. The 
SNAP list of alternatives

[[Page 30430]]

is found at 40 CFR part 82, subpart G, with supplemental tables of 
alternatives available at http://www.epa.gov/snap. For every end use, 
the SNAP program lists include several different alternatives as 
acceptable for the same end use or application and provides 
information, including the GWPs of alternatives. The decision as to 
which of the SNAP-listed acceptable alternatives to select in a 
particular end use should emphasize the alternative with the lowest GWP 
that meets the needs of the user.
    With regard to the required use of a lower GWP HFC product 
identified in the SNAP list of alternatives products, the Government's 
decision to do so must take into consideration the feasibility of 
moving on to an alternative. This decision will require the assessment 
of a number of factors, including lifecycle costs and the overall 
energy efficiency achieved through the substitution of a lower GWP HFC 
product.
    Comment: One respondent criticized the SNAP program, upon which the 
proposed definition is based. Among other concerns, the respondent 
believes that the SNAP program has identified some substitutes that 
have significant drawbacks, including poor thermal efficiency, 
flammability issues, processing difficulties, and limited global 
availability. Similarly, another respondent did not agree that the 
definition of high GWP HFCs should be created by simple reference to 
the SNAP program, because other relevant factors need to be considered 
(see also section 3.d.). Another respondent commented that the term 
``high global warming potential hydrofluorocarbons'' was defined solely 
in term of relative GWP (compared to alternatives approved under the 
EPA's SNAP program.) The respondent is concerned that the policies 
based on this definition fail to take into account other major causes 
of climate impact.
    Response: In response to the concern raised by one respondent 
regarding significant drawbacks of some substitutes identified by SNAP, 
it is helpful to understand the SNAP program's framework for review and 
listings. EPA applies seven specific criteria for determining whether a 
substitute is acceptable or unacceptable. These criteria, which can be 
found at 40 CFR 82.180(a)(7), include atmospheric effects and related 
health and environmental effects, ecosystem risks, consumer risks, 
flammability, and cost and availability of the substitute. To enable 
EPA to assess these criteria, EPA requires submitters to include 
various information including ozone depletion potential (ODP), GWP, 
toxicity, flammability, and the potential for human exposure. The SNAP 
program does not review for a substitute's performance or efficacy. The 
SNAP list of alternatives evolves as new substitutes become available 
and substitutes that pose significantly greater risk than other 
available substitutes are determined to no longer be acceptable for 
use. These changes occur because of the changing availability of 
substitutes for a specific use as well as EPA's overall understanding 
of the environmental and human health impacts of substitutes already 
listed as compared with new substitutes. However, as changes are made 
to the SNAP lists, EPA assures users that multiple substitutes are 
available for any given end use and that end users continue to have 
options.
    In its recent final rule, published at 80 FR 42869, on July 20, 
2015, EPA modified the listings for certain HFCs and HFC blends in 
various end uses in the aerosols, foam blowing, and refrigeration and 
air conditioning sectors where other alternatives were available or 
potentially available that posed lower overall risk to human health and 
the environment. Pursuant to the guiding principles of the SNAP 
program, the action did not specify that any HFCs are unacceptable 
across all sectors and end uses. Consistent with section 612 of the 
Clean Air Act (42 U.S.C. 7671k) as EPA has historically interpreted it 
under the SNAP program, EPA made the modifications based on evaluation 
of the substitutes addressed in that action using the SNAP criteria for 
evaluation and considering the current suite of other available and 
potentially available substitutes.
    For the refrigerant and foam blowing agent end uses, equipment 
design is critical. Thus, there is a range of thermal conductivity and 
insulation values among the acceptable alternatives, with some having 
lower values than the HFCs previously used (as well as ozone-depleting 
substances (ODS)) some having higher values, and others having 
comparable values. In EPA's recent rulemaking published at 80 FR 42869, 
on July 20, 2015, EPA noted that no information provided to EPA 
suggests that the alternatives that remain acceptable result in lower 
energy efficiency. In fact, as stated in the preamble to the rule, 
available information indicates that the opposite can be true, that the 
acceptable alternatives not subject to a status change have been used 
in equipment or used to produce insulating foam that provide for better 
energy efficiency.
    In response to the respondent who disagreed that the definition of 
high GWP HFCs should refer just to the SNAP program, the Councils note 
that the definition does not bind the end user to select any specific 
alternative or to ignore assessment of the unique needs that end user 
may be facing. Rather, requiring activities can use the information 
provided by the SNAP list of alternatives, including information on the 
GWP of alternatives, in addition to other factors, in the selection of 
products and equipment that best meet their needs. Please see related 
response below regarding comments on the feasibility of moving to 
alternatives.
    In response to the respondent who commented that the term ``high 
global warming potential hydrofluorocarbons'' was defined solely in 
terms of relative GWP (compared to other alternatives approved under 
the EPA's SNAP program) and was concerned that this failed to take into 
account other major causes of climate impact, the term is intended to 
reflect differences in GWP. This is consistent with how climate impacts 
are considered under the SNAP program (See section VII.A.3., GWP 
Considerations, in the preamble to the recent EPA SNAP final rule 
published at 80 FR 42870 at 42937, on July 20, 2015). Users may take 
into account additional factors, such as energy efficiency, in deciding 
which of the lower-GWP alternatives listed as acceptable under SNAP 
meet their needs. For clarification, please also see the response below 
that discusses other factors such as energy efficiency, which are 
related to the performance of the equipment, whereas GWP relates to the 
intrinsic characteristic and potential environmental impact of the 
chemical itself.
3. Policy.
a. Lower vs. lowest/climate-friendly
    Comment: One respondent, primarily addressing refrigerants, 
recommended addition of the following definitions to the rule:
    ``Climate-friendly'' alternative means an alternative that is 
listed as acceptable under the EPA's SNAP program (40 CFR part 82, 
subpart G) that has a GWP of less than 150.
    ``Lowest GWP alternative'' means an alternative that is identified 
as acceptable under the EPA's SNAP program and has the lowest GWP 
compared to all other acceptable alternatives for the relevant end use 
and has a GWP under 150 for new equipment and a GWP at least 50 percent 
lower than the current refrigerant for retrofits.

[[Page 30431]]

    The respondent further recommended a policy that would avoid 
procurement of mid-range GWP alternatives (from 300 to 1500 GWP) if 
truly low GWP alternatives have been proven and commercialized, because 
use of mid-range alternatives would set up a circumstance where a 
future phase-out in just a few years will be necessary to remove these 
mid-range GWP alternatives due to their impact on the climate. 
Consistent with the definition recommended by the respondent, the 
respondent also recommended that the Government should not purchase any 
new equipment or product unless it has a refrigerant with a GWP of less 
than 150 and for retrofits, higher GWP refrigerants can be used if they 
have GWPs of at least 50 percent less than the current refrigerant that 
will be replaced. Otherwise, the respondent recommended that the old 
system should be decommissioned and replaced.
    Response: While GWP is an important criterion, it should not be the 
sole criterion for consideration. The EPA SNAP program conducts 
comparative risk analyses for each end use and alternative, and has not 
set specific GWP limits for acceptable alternatives in a specific end 
use. For example, while an alternative refrigerant in one application 
might have a GWP that meets the respondent's proposed GWP limit of 150, 
there may be other human health or environmental considerations for the 
particular end use or application (e.g., toxicity limits, flammability) 
that may lead the user to determine that another alternative is more 
suitable for that particular application. For this reason and others, 
Federal agency requiring activities and contractors need the 
flexibility to be able to evaluate the entire suite of lower GWP 
alternatives and to balance direct climate impacts, energy efficiency, 
safety, performance, and other user needs before selecting the one most 
appropriate for their specific use.
b. Timing
    Various respondents commented on the timing of when the FAR rule 
should take effect.
    Comment: Several respondents recommended that the enactment of this 
rule should be tied to the HFC conversion timelines within the EPA SNAP 
rule published at 80 FR 42870, on July 20, 2015, and that this rule is 
imposing use of lower GWP alternatives ``earlier than required.'' 
Unless otherwise noted, all references to a SNAP rule in this document 
are in reference to the final rule published at 80 FR 42870, on July 
20, 2015. According to one of the respondents, the SNAP final rule 
specified that use of HFC-134a would be unacceptable for use in 
polystyrene extruded boardstock and billet as of January 1, 2021.
    Response: It is not the intent of this rule to require conversion 
to alternatives on earlier timelines than in the SNAP final rule. 
Rather, as stated in the background section of the proposed FAR rule, 
the purpose of this final rule is to facilitate the purchase of cleaner 
alternatives to HFCs whenever feasible and transition over time to 
equipment that uses safer and more sustainable alternatives.
    Comment: A respondent also recommended coordinating with Department 
of Energy rulemaking on energy efficiency and conservation standards. 
Companies are working to comply with these stringent new standards.
    Response: The Councils are aware of the Department of Energy (DOE) 
rulemaking titled, ``Energy Efficiency Standards for New Federal 
Commercial and Multi-Family High-Rise Residential Buildings' Baseline 
Standards Update'', published at 80 FR 68749, on November 6, 2015, and 
have taken the DOE rules into account in drafting this final rule. The 
rule requires reduction in the use, release, and emissions of high GWP 
HFCs only when feasible. The clauses state that a determination of 
feasibility would include consideration of energy efficiency.
    Comment: One respondent noted that there is a great range of speeds 
by which the sectors, and the companies within them, who use HFCs, can 
transition into lower GWP alternatives. Another respondent stated that 
a transition to low GWP blowing agents must be conducted over a 
timeline that allows individual manufacturers to identify suitable 
alternatives and conduct necessary product development and testing to 
fully commercialize new formulations. Another respondent recommended 
modifying the clause at FAR 52.223-12(c)(1) to require transitioning 
``at the earliest feasible time'' from high GWP HFCs to acceptable 
alternatives.
    Response: The President's Climate Action Plan specifically directs 
agencies to purchase cleaner alternatives to HFCs whenever feasible and 
transition over time to equipment that uses safer and more sustainable 
alternatives. The language used in the Climate Action Plan: (1) 
Recognizes that there are technical hurdles that must be overcome to 
identify suitable alternatives, conduct necessary product development 
and testing, and fully commercialize new formulations; and (2) 
envisions a transition ``over time.'' Accordingly, this final rule 
allows existing Government equipment to be utilized until the end of 
its useful life, thus minimizing stranded capital.
c. Acceptability and Feasibility
    Comments: More than half of the respondents commented on the need 
to consider factors other than low GWP value in determining the 
acceptability and/or feasibility of using a lower GWP alternative. 
According to many respondents, lower GWP alternatives must be both 
environmentally and economically acceptable. One respondent stated that 
considering only the GWP of a compound may not be appropriate, 
depending on the circumstances of a particular use. This respondent 
also stated that GWP alone is an insufficient measure of a product's 
impact on human health and the environment. A few respondents stated 
the need for a definition of ``feasible.'' They noted that without a 
definition, contractors will have little guidance as to when adoption 
of low GWP substances would be appropriate and/or required and the rule 
will have little impact on procurement decisions.
i. Life Cycle/Energy Efficiency
    Many of the respondents recommended consideration of the total 
life-cycle of an alternative product, such as in-use emission rates and 
energy efficiency benefits.
     With regard to refrigerants, a respondent commented that 
the majority of the climate impact from refrigerant used results from 
the energy consumed by the air conditioning system (i.e., the indirect 
impact) and not from the GWP of the refrigerant itself (i.e., the 
direct climate impact). According to the respondent, refrigerant 
selection has a substantial impact on the energy efficiency of the air 
conditioning system in which the refrigerant will be used.
     With regard to foam insulation, a respondent commented on 
the importance of the use of thermal insulation for increased energy 
efficiency to reduce global warming. Likewise, another respondent 
pointed out the need to consider the life-cycle benefits of products, 
because if less energy efficient insulation products are used in the 
construction of a building the result may be increased greenhouse gas 
emissions over the life of the building or facility.
ii. Safety--Flammability
    Several respondents commented on the need to consider key product 
attributes that affect safety, such as

[[Page 30432]]

flammability. Another respondent mentioned that feasible alternatives 
should consider standards and codes compliance (such as safety 
standards).
iii. Technical Capability
    Several respondents commented on the necessity to consider 
technical capability of the proposed alternative to avoid inadvertently 
selecting a product that will prove to be less energy efficient.
iv. Commercial Availability
    Several respondents commented on the need for alternatives to be 
commercially available. One respondent recommended that absence of 
commercially available alternatives should constitute a viable 
exemption from the provisions of the rule. One respondent recommended 
that decisions on feasibility of low GWP alternatives need to be 
assessed based on available technologies.
v. Cost
    Several respondents mentioned cost as another factor for 
consideration. One respondent asked whether the taxpayer should be 
forced to pay more than the general public, by adopting lower GWP 
products earlier than required.
vi. Definition
    One of the respondents recommended defining ``feasibility'' as ``a 
commercially available alternative with a GWP lower than that of the 
currently used substance in the relevant application, that (1) is 
identified by EPA as an acceptable alternative under 40 CFR part 82, 
which increases the total cost of the installation or bid by not more 
than 10 percent more than would be the cost if high GWP substances were 
used.''
    Response: The concerns raised by the respondents in paragraphs 
3.c.i. through vi. of this analysis of the public comments are issues 
considered by EPA in making listing decisions under the SNAP program. 
Section 612 of the Clean Air Act provides that EPA must prohibit the 
use of a substitute where EPA has determined that there are other 
available substitutes that pose less overall risk to human health and 
the environment for that use. EPA reviews substitutes using a 
comparative risk framework and GWP is only one of several criteria EPA 
considers in its overall evaluation. EPA also considers factors such as 
ozone depletion potential, exposure assessments, flammability, 
toxicity, and other environmental impacts. In addition, in the recent 
change of status rule in which EPA changed the status of a number of 
high GWP substitutes from acceptable to unacceptable, EPA considered 
the technical challenges of a transition and the supply of other 
alternatives in establishing the transition date. As the term is used 
in this rule, ``feasible'' means not only capable of being 
accomplished, but capable of being accomplished successfully and 
suitably. All of the factors mentioned by respondents are relevant in 
the decision as to which acceptable alternative is preferable in a 
given application. Alternatives that have been determined acceptable by 
EPA under the SNAP Program should still be evaluated in each particular 
application in terms of environmental, technical, and economic 
feasibility. The FAR Council does not have a basis (such as statute or 
Executive Order) upon which to establish a specific cost differential 
that would constitute an unreasonable cost. An assessment of whether a 
cost is unreasonable depends partly on the benefits to be derived from 
use of the alternative and other economic factors. Therefore, the final 
rule does not define the term ``feasibility,'' but provides direction 
to the Federal user and contractor in terms of factors to be considered 
when determining the feasibility of using an acceptable lower GWP 
alternative (FAR 52.223-20, Aerosols, and 52.223-21, Foams).
d. Refrigerant Management
    Comment: Many of the respondents commented on the need for better 
refrigerant management, including the recovery, reclamation, and reuse 
of refrigerant.
     Leaks and accidental or intentional venting of 
refrigerant. As stated by one respondent, refrigeration and air 
conditioning systems are prone to leaks during normal operations. Even 
with aggressive leak detection, these appliances and systems require 
servicing to maintain the proper refrigerant change and performance. 
Another respondent emphasized that air conditioning and refrigeration 
systems are actually non-emissive uses of HFCs since these are closed 
systems. The concern with HFCs, therefore, is not the use, but the 
misuse. According to the respondent, the vast amount of HFC emissions 
result from leaks and accidental or intentional venting of refrigerant.
     Increase the use of reclaimed refrigerants. According to 
one respondent, nearly all lost refrigerant is replaced with newly 
produced virgin refrigerant. Another respondent recommended that the 
benefits of the proposed rule could be significantly enhanced by 
defining acceptable low GWP alternatives to include reclaimed 
refrigerants. Rather than wait for low GWP alternatives to be deployed 
in retrofitted or newly installed equipment, the Federal Government can 
significantly reduce greenhouse gas emissions in the near-term by 
including reclaimed HFC refrigerant as part of the procurement 
priorities. Another respondent recommended that the Government should 
give preference to the use of reclaimed refrigerant to service existing 
Federal buildings and facilities, just like the Federal Government 
promotes recycled paper and other consumer goods.
     Improved refrigerant management. As stated by a 
respondent, a Federal program promoting reclaimed refrigerant will 
encourage better refrigerant management practices in the private 
sector, because companies will recognize that their used refrigerant 
has an economic value. Another respondent noted that the policy would 
provide incentive for recovery of HFC refrigerant from older end-of-
life equipment (currently only approximately 10 percent is recovered 
and reclaimed).
     Less production of virgin HFC refrigerants. One respondent 
stated that the goal should be to limit production of all virgin 
refrigerants, including lower GWP HFCs. As stated by another 
respondent, use of reclaimed refrigerant displaces additional 
production of new HFC refrigerant, thereby preventing greenhouse gas 
emissions that would otherwise occur.
    Response: The Councils recognize that refrigerant management is an 
important way to reduce climate-damaging and ozone-depleting emissions 
from equipment used for air-conditioning and refrigeration. While the 
existing EPA regulations prohibit any person from knowingly venting, 
releasing, or disposing into the environment any ozone-depleting or HFC 
refrigerant in the course of maintaining, servicing, repairing, or 
disposing of air-conditioning or refrigeration appliances, they do not 
establish requirements to repair leaks or specify other servicing 
requirements for equipment containing HFCs. EPA has recently proposed 
updating the existing refrigerant management requirements under section 
608 of the Clean Air Act and extending them to cover servicing 
practices for HFCs (see 80 FR 69457, dated November 9, 2015).
    There are also environmental benefits to promoting the use of 
reclaimed material over virgin production. Both newly-produced and 
reclaimed refrigerants must meet the same purity requirements and thus 
reclaimed refrigerant can be used instead of newly produced 
refrigerants. This final rule

[[Page 30433]]

provides use of reclaimed HFCs as an example of sustainable acquisition 
under FAR 11.002(d)(1) and encourages their use at FAR clause 52.223-
12(c)(4).
4. Exceptions
a. Outside the United States
    Various respondents commented on the exception in the proposed rule 
for contracts that will be performed outside the United States and its 
outlying areas.
    Comment: One respondent requested clarification of what ``performed 
outside the United States and its outlying areas'' means for the 
acquisition of supplies. Another respondent stated that the rule should 
apply to both domestic and foreign procurement decisions, because 
limiting the scope to domestic acquisitions misses an opportunity to 
further reduce greenhouse gas emissions. Other respondents stated that 
an effective means of reducing the future climate change contribution 
of HFCs must be global in nature. One respondent recommended that that 
application to contracts outside to United States and its outlying 
areas should be excepted only if proven to be unfeasible.
    Response: The clause prescription at FAR 23.804 has been clarified 
by specifying that the exception to use of the clause is for contracts 
for supplies to be delivered outside the United States and its outlying 
areas, or contracts for services to be performed outside the United 
States and its outlying areas. This rule only applies to contracts for 
supplies to be delivered within the United States or its outlying areas 
or to services to be performed within the United States or its outlying 
areas.
b. Military and Space Activities
    Comment: One respondent asked whether DoD, GSA, and NASA would be 
prohibited from taking advantage of the SNAP exemptions provided for 
military and space activities.
    Response: Nothing in this rule precludes Federal agencies from 
taking advantage of the exemptions to the SNAP requirements, as 
currently provided in the SNAP final rule for military and space- and 
aeronautics-related applications. However, this rule, unlike the SNAP 
Program, requires transitioning in advance of the SNAP deadlines, only 
when feasible. Therefore, an exception for military and space 
activities is unnecessary. In accordance with the overall construction 
of the rule, exemptions for military and space activities would fall 
under the general exemption as infeasible.
    In addition, the FAR clauses state that a contractor shall 
transition to lower GWP alternatives ``unless otherwise specified in 
the contract.'' In those cases where a Federal agency has critical uses 
where only qualified high GWP HFCs may be used, these would be 
specified in a contract and unqualified lower GWP alternatives would 
not be allowed.
c. Low Temperature Refrigeration Systems
    Comment: One respondent recommended an exemption for low 
temperature refrigeration systems operating below -50 [deg]C. The 
respondent stated that in both the EU and Canada, similar low GWP 
initiatives have allowed such an exemption. According to the 
respondent, due to issues of flammability, energy efficiency, and 
technical capability, the respondent does not know of any low GWP 
solutions that meet the needs of ultra-low temperature refrigeration 
systems.
    Response: There is no need for a special exemption for a low 
temperature refrigeration system. The concept of feasibility is 
addressed and an exemption arises if use of lower GWP alternatives is 
found to be infeasible. If low GWP alternatives do not meet the needs 
of ultra-low temperature refrigeration systems, then transition is not 
feasible and, therefore, not required by this rule.
5. Other
a. Labeling
    Comment: One respondent recommended that contractors should also be 
required to label products which contain or are manufactured with HFCs.
    Response: The labeling requirement for products that contain or are 
manufactured with Ozone-Depleting Substances (ODS) at paragraph (b) of 
FAR clause 52.223-11, Ozone-Depleting Substances and High Global 
Warming Potential Hydrofluorocarbons, is required by statute (42 U.S.C. 
7671j) and EPA regulations (40 CFR part 82, subpart E). There is not a 
comparable requirement for high GWP HFCs.
b. Buildings With Multiple Systems
    Comment: With regard to the reporting requirement in FAR 52.223-
12(d), the respondent recommended changing ``50 or more pounds'' to 
``25 or more pounds'' and that a building containing multiple systems 
that each contain individually less than 25 pounds of HFCs or 
refrigerant blends containing HFCs should be assessed as the entire 
building's refrigerant use and not on an individual system level.
    Response: When drafting the proposed rule, the 50-pound threshold 
was chosen in order to eliminate tracking and reporting on thousands of 
pieces of smaller equipment, thereby minimizing administrative burden 
and costs to contractors, including many small businesses; and also 
recognizing that larger systems such as building chillers, commissary/
large commercial refrigeration systems, and industrial process 
refrigeration systems likely contribute the largest percentage of total 
HFC emissions. This 50-pound threshold is also consistent with other 
existing regulatory requirements for refrigerants imposed under the 
Clean Air Act and 40 CFR part 82. Recognizing that EPA has proposed 
(see 80 FR 69457, dated November 9, 2015) updating and expanding the 
coverage of the refrigerant management requirements established under 
section 608 of the Clean Air Act, if those requirements are amended, 
they would be applicable to the public and private sectors.
c. Foreign Acquisition
    Comment: One respondent recommended that the rule should clarify 
that if certain products identified as acceptable under the EPA SNAP 
program are available in other markets but not available or not 
available at commercial levels in the U.S., then the products may be 
acquired under the nonavailability exception to the Buy American 
statute (see FAR 25.103).
    Response: FAR part 25, Foreign Acquisition, addresses domestic 
source restrictions, including the Buy American Act. However, not all 
acquisitions are subject to the Buy American Act (e.g., when the 
acquisition is covered by the World Trade Organization Government 
Procurement Agreement). Other domestic source restrictions may also 
apply, and there are sanctions against purchases from certain 
countries. FAR part 23 must be read in conjunction with FAR part 25.
d. Ozone-Depleting Substances
    Comment: One respondent is concerned that the proposed clause at 
FAR 52.223-12, Maintenance, Service, Repair, Recycling, or Disposal of 
Refrigeration Equipment and Air Conditioners, does not include ODS 
within its scope.
    Response: This rule is not intended to suggest that users revert to 
an ODS in lieu of a high-GWP HFC. The language in the rule leaves the 
current ODS regulatory language, currently at FAR subpart 23.8, in 
place and only adds language dealing with high GWP HFCs. The definition 
of ``ozone-depleting substance'' as any substance designated by the EPA 
in 40 CFR part 82 also

[[Page 30434]]

remains in FAR part 2. The language also maintains the current FAR 
23.803(a)(2) preference to the procurement of substances that reduce 
overall risks to human health and the environment by the depletion of 
ozone in the upper atmosphere.
e. Specific Refrigerants, Foams, and Aerosols
    Comments: Several respondents commented on specific refrigerants, 
foams, or aerosols and lower GWP alternatives.
     One respondent sent information on a low GWP substitute 
for HFC-134a.
     One respondent included a list of some examples of 
available low GWP replacements for high GWP HFCs by application (i.e., 
refrigerants, foam, and aerosols).
     Another respondent was concerned that the rule does not 
require an alternative to the most commonly used refrigerant, HCFC-22, 
which is both an ODS and has a high GWP, because it is determined to be 
acceptable by EPA under SNAP.
    Response: The information on the low GWP alternatives is noted. 
While the revised FAR subpart 23.8 makes no explicit mention of HCFC-
22, or any other specific substance, the regulation refers to EPA's 
SNAP program for the list of acceptable alternatives. HCFC-22 remains 
acceptable as a refrigerant under SNAP. However, existing regulations 
effectively prohibit the use of virgin HCFC-22 to manufacture a new 
appliance or retrofit an existing appliance (see 40 CFR 82.15(g)(2)). 
This restriction does not affect the use of used, recovered, and 
recycled HCFC-22. Regulations also effectively prohibit the manufacture 
or import of appliances and appliance components that are pre-charged 
with HCFC-22 (see 40 CFR 82.304).
    Comment: One respondent recommended an additional clause to address 
clean agent fire suppression.
    Response: The suggested clause is outside the scope of this case 
and could not be included in the final rule without publishing for 
public comment.

III. Applicability

    This rule will apply to all acquisitions inside the United States 
and its outlying areas of products or services containing or using high 
GWP HFCs, including--
     Acquisitions that do not exceed the simplified acquisition 
threshold; and
     Commercial items (including commercially available off-
the-shelf items) that use FAR part 12 procedures.
    A majority of the acquisitions involving high GWP HFCs do not 
exceed the simplified acquisition threshold. Applicability of the 
requirements below the simplified acquisition threshold is necessary to 
be effective and to cover a significant number of actions and dollars 
that fall below this threshold. However, the reporting requirement 
applies only for delivery of, or maintenance, service, repair and 
disposal of, equipment or appliances normally containing 50 pounds or 
more of HFCs or refrigerant blends containing HFCs.
    Likewise, a majority of the acquisitions involving high GWP HFCs 
involve the acquisition of commercial items. Applicability of the 
requirements to commercial items is necessary to be effective and 
include a significant number of actions and dollars for commercial item 
acquisitions.

IV. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is a significant regulatory action and, therefore, was subject to 
review under Section 6(b) of E.O. 12866, Regulatory Planning and 
Review, dated September 30, 1993. This rule is not a major rule under 5 
U.S.C. 804.

V. Regulatory Flexibility Act

    DoD, GSA, and NASA have prepared a Final Regulatory Flexibility 
Analysis (FRFA) consistent with the Regulatory Flexibility Act, 5 
U.S.C. 601, et seq. The FRFA is summarized as follows:

    This rule is necessary to implement Executive branch policy 
stated in the President's Climate Action Plan. The objective of this 
rule is to require Federal agencies to procure climate-friendly 
chemical alternatives to high global warming potential (GWP) 
hydrofluorocarbons (HFCs) and allow agencies to better meet the 
greenhouse gas emission reduction goals and reporting requirements 
of Executive Order 13693, Planning for Sustainability in the Next 
Decade.
    There were no issues raised by the public comments in response 
to the initial regulatory flexibility analysis.
    Based on FPDS data for Fiscal Year 2015, this rule will apply to 
approximately 1400 small business contractors that provide certain 
supplies (including equipment and appliances) that contain HFCs to 
the Federal Government and about 347 small business contractors that 
provide maintenance, service, repair, or disposal of refrigeration 
equipment or air conditioners. In addition, although the clauses at 
52.223-20, Aerosols, and 52.223-21, Foams, do not contain any 
reporting requirements, these clauses also apply respectively to 
solicitations and contracts that involve repair or maintenance of 
electronic or mechanical devices and construction of buildings and 
facilities.
    DoD, GSA, and NASA estimate an average reporting burden of about 
8 hours per year for each small business providing supplies that 
contain high GWP HFCs or maintenance, repair, or disposal of 
refrigeration equipment or air conditioners.
    DoD, GSA, and NASA did not identify any significant alternatives 
to the rule that would accomplish the stated objectives of the 
President's Climate Action Plan and the Executive Order.
    It is necessary for the rule to apply to small entities, because 
about three-quarters of the affected contractors are small 
businesses and excluding them would minimize the importance of this 
policy and may prevent the Government from meeting the objective of 
this policy. Every effort has been made to minimize the burdens 
imposed. For example, this rule only requires tracking and reporting 
on equipment that normally contain 50 or more pounds of HFCs. In 
addition, this rule does not impose a labeling requirement for 
products that contain or are manufactured with HFCs, unlike the 
labeling requirement that is required by statute for ozone-depleting 
substances.

    Interested parties may obtain a copy of the FRFA from the 
Regulatory Secretariat Division. The Regulatory Secretariat Division 
has submitted a copy of the FRFA to the Chief Counsel for Advocacy of 
the Small Business Administration.

VI. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. Chapter 35) applies. The 
rule contains information collection requirements. OMB has cleared this 
information collection requirement under OMB Control Number 9000-0191, 
titled: ``High Global Warming Potential Hydrofluorocarbons.''

List of Subjects in 48 CFR Parts 1, 2, 7, 11, 23, 25, and 52

    Government procurement.

    Dated: May 5, 2016.
William Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.
    Therefore, DoD, GSA and NASA amend 48 CFR parts 1, 2, 7, 11, 23, 
25, and 52 as set forth below:

0
1. The authority citation for 48 CFR parts 1, 2, 7, 11, 23, 25, and 52 
continues to read as follows:

    Authority:  40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 
U.S.C. 20113.

[[Page 30435]]

PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM


1.106  [Amended]

0
2. Amend section 1.106 by adding to the table, in numerical order, FAR 
segments ``52.223-11'' and ``52.223-12'' with their corresponding OMB 
control number ``9000-0191''.

PART 2--DEFINITIONS OF WORDS AND TERMS

0
3. Amend section 2.101 in paragraph (b)(2) by adding, in alphabetical 
order, the definitions ``Global warming potential'', ``High global 
warming potential hydrofluorocarbons'', ``Hydrofluorocarbons'', 
``Manufactured end product'', and ``Products'' to read as follows:


2.101   Definitions.

* * * * *
    (b) * * *
    (2) * * *
    Global warming potential means how much a given mass of a chemical 
contributes to global warming over a given time period compared to the 
same mass of carbon dioxide. Carbon dioxide's global warming potential 
is defined as 1.0.
* * * * *
    High global warming potential hydrofluorocarbons means any 
hydrofluorocarbons in a particular end use for which EPA's Significant 
New Alternatives Policy (SNAP) program has identified other acceptable 
alternatives that have lower global warming potential. The SNAP list of 
alternatives is found at 40 CFR part 82, subpart G, with supplemental 
tables of alternatives available at http://www.epa.gov/snap/).
* * * * *
    Hydrofluorocarbons means compounds that contain only hydrogen, 
fluorine, and carbon.
* * * * *
    Manufactured end product means any end product in product and 
service codes (PSC) 1000-9999, except--
    (1) PSC 5510, Lumber and Related Basic Wood Materials;
    (2) Product or service group (PSG) 87, Agricultural Supplies;
    (3) PSG 88, Live Animals;
    (4) PSG 89, Subsistence;
    (5) PSC 9410, Crude Grades of Plant Materials;
    (6) PSC 9430, Miscellaneous Crude Animal Products, Inedible;
    (7) PSC 9440, Miscellaneous Crude Agricultural and Forestry 
Products;
    (8) PSC 9610, Ores;
    (9) PSC 9620, Minerals, Natural and Synthetic; and
    (10) PSC 9630, Additive Metal Materials.
* * * * *
    Products has the same meaning as supplies.
* * * * *

PART 7--ACQUISITION PLANNING

0
4. Amend section 7.103 by revising paragraph (p)(2) to read as follows:


7.103  Agency-head responsibilities.

* * * * *
    (p) * * *
    (2) Comply with the policy in 11.002(d) regarding procurement of 
biobased products, products containing recovered materials, 
environmentally preferable products and services (including Electronic 
Product Environmental Assessment Tool (EPEAT[supreg])-registered 
electronic products, nontoxic or low-toxic alternatives), ENERGY 
STAR[supreg] and Federal Energy Management Program-designated products, 
renewable energy, water-efficient products, non-ozone-depleting 
products, and products and services that minimize or eliminate, when 
feasible, the use, release, or emission of high global warming 
potential hydrofluorocarbons, such as by using reclaimed instead of 
virgin hydrofluorocarbons;
* * * * *

PART 11--DESCRIBING AGENCY NEEDS

0
5. Amend section 11.002 by revising paragraph (d)(1)(vi) to read as 
follows:


11.002  Policy.

* * * * *
    (d)(1) * * *
    (vi) Non-ozone-depleting substances, and products and services that 
minimize or eliminate, when feasible, the use, release, or emission of 
high global warming potential hydrofluorocarbons, such as by using 
reclaimed instead of virgin hydrofluorocarbons (subpart 23.8).
* * * * *

PART 23--ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY 
TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE

0
6. Amend section 23.000 by revising paragraph (d) to read as follows:


23.000  Scope.

* * * * *
    (d) Acquiring energy-efficient and water-efficient products and 
services, environmentally preferable (including EPEAT[supreg]-
registered, and non-toxic and less toxic) products, products containing 
recovered materials, biobased products, non-ozone-depleting products, 
and products and services that minimize or eliminate, when feasible, 
the use, release, or emission of high global warming potential 
hydrofluorocarbons, such as by using reclaimed instead of virgin 
hydrofluorocarbons;
* * * * *

0
7. Revise the heading of subpart 23.8 to read as follows:

Subpart 23.8--Ozone-Depleting Substances and Hydrofluorocarbons

0
8. Revise section 23.800 to read as follows:


23.800   Scope of subpart.

    This subpart sets forth policies and procedures for the acquisition 
of items that--
    (a) Contain, use, or are manufactured with ozone-depleting 
substances; or
    (b) Contain or use high global warming potential 
hydrofluorocarbons.

0
9. Revise section 23.801 to read as follows:


23.801  Authorities.

    (a) Title VI of the Clean Air Act (42 U.S.C. 7671, et seq.).
    (b) Section 706 of division D, title VII of the Omnibus 
Appropriations Act, 2009 (Public Law 111-8).
    (c) Executive Order 13693 of March 25, 2015, Planning for Federal 
Sustainability in the Next Decade.
    (d) Environmental Protection Agency (EPA) regulations, Protection 
of Stratospheric Ozone (40 CFR part 82).


23.802  [Removed]

0
10. Remove section 23.802.


23.803  [Redesignated as 23.802 and Amended]

0
11. Redesignate section 23.803 as 23.802 and revise newly redesignated 
23.802 to read as follows:


23.802   Policy.

    It is the policy of the Federal Government that Federal agencies--
    (a) Implement cost-effective programs to minimize the procurement 
of materials and substances that contribute to the depletion of 
stratospheric ozone and/or result in the use, release or emission of 
high global warming potential hydrofluorocarbons; and
    (b) Give preference to the procurement of acceptable alternative 
chemicals, products, and manufacturing processes that reduce overall 
risks to

[[Page 30436]]

human health and the environment by minimizing--
    (1) The depletion of ozone in the upper atmosphere; and
    (2) The potential use, release, or emission of high global warming 
potential hydrofluorocarbons.

0
12. Add new section 23.803 to read as follows:


23.803  Procedures.

    In preparing specifications and purchase descriptions, and in the 
acquisition of products and services, agencies shall--
    (a) Comply with the requirements of title VI of the Clean Air Act, 
section 706 of division D, title VII of Public Law 111-8, Executive 
Order 13693, and 40 CFR 82.84(a)(2), (3), (4), and (5);
    (b) Substitute acceptable alternatives to ozone-depleting 
substances, as identified under 42 U.S.C. 7671k, to the maximum extent 
practicable, as provided in 40 CFR 82.84(a)(1), except in the case of 
Class I substances being used for specified essential uses, as 
identified under 40 CFR 82.4(n);
    (c) Unless a particular contract requires otherwise, specify that, 
when feasible, contractors shall use another acceptable alternative in 
lieu of a high global warming potential hydrofluorocarbon in products 
and services in a particular end use for which EPA's Significant New 
Alternatives Policy (SNAP) program has identified other acceptable 
alternatives that have lower global warming potential; and
    (d) Refer to EPA's SNAP program for the list of alternatives, found 
at 40 CFR part 82, subpart G, as well as supplemental tables of 
alternatives (available at http://www.epa.gov/snap).

0
13. Revise section 23.804 to read as follows:


23.804  Contract clauses.

    Except for contracts for supplies that will be delivered outside 
the United States and its outlying areas, or contracts for services 
that will be performed outside the United States and its outlying 
areas, insert the following clauses:
    (a) 52.223-11, Ozone-Depleting Substances and High Global Warming 
Potential Hydrofluorocarbons, in solicitations and contracts for--
    (1) Refrigeration equipment (in product or service code (PSC) 
4110);
    (2) Air conditioning equipment (PSC 4120);
    (3) Clean agent fire suppression systems/equipment (e.g., installed 
room flooding systems, portable fire extinguishers, aircraft/tactical 
vehicle fire/explosion suppression systems) (in PSC 4210);
    (4) Bulk refrigerants and fire suppressants (in PSC 6830);
    (5) Solvents, dusters, freezing compounds, mold release agents, and 
any other miscellaneous chemical specialty that may contain ozone-
depleting substances or high global warming potential 
hydrofluorocarbons (in PSC 6850);
    (6) Corrosion prevention compounds, foam sealants, aerosol mold 
release agents, and any other preservative or sealing compound that may 
contain ozone-depleting substances or high global warming potential 
hydrofluorocarbons (in PSC 8030);
    (7) Fluorocarbon lubricants (primarily aerosols) (in PSC 9150); and
    (8) Any other manufactured end products that may contain or be 
manufactured with ozone-depleting substances.
    (b) 52.223-12, Maintenance, Service, Repair, or Disposal of 
Refrigeration Equipment and Air Conditioners, in solicitations and 
contracts that include the maintenance, service, repair, or disposal 
of--
    (1) Refrigeration equipment, such as refrigerators, chillers, or 
freezers; or
    (2) Air conditioners, including air conditioning systems in motor 
vehicles.
    (c) 52.223-20, Aerosols, in solicitations and contracts--
    (1) For products that may contain high global warming potential 
hydrofluorocarbons as a propellant, or as a solvent; or
    (2) That involve maintenance or repair of electronic or mechanical 
devices.
    (d) 52.223-21, Foams, in solicitations and contracts for--
    (1) Products that may contain high global warming potential 
hydrofluorocarbons or refrigerant blends containing hydrofluorocarbons 
as a foam blowing agent, such as building foam insulation or appliance 
foam insulation; or
    (2) Construction of buildings or facilities.

PART 25--FOREIGN ACQUISITION


25.1101  [Amended]

0
14. Amend section 25.1101 by removing from paragraph (f) ``, as defined 
in the provision at 52.225-18''.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
15. Amend section 52.212-5 by--
0
a. Revising the date of the clause; and
0
b. In paragraph (b)--
0
i. Redesignating paragraphs (b)(36) through (54) as paragraphs (b)(38) 
through (56), respectively;
0
ii. Adding new paragraphs (b)(36) and (37);
0
iii. Further redesignating newly redesignated paragraphs (b)(43) 
through (56) as paragraphs (b)(45) through (58), respectively; and
0
iv. Adding new paragraphs (b)(43) and (44).
    The revision and additions reads as follows:


52.212-5   Contract Terms and Conditions Required To Implement Statutes 
or Executive Orders--Commercial Items.

* * * * *

Contract Terms and Conditions Required to Implement Statutes or 
Executive Orders--Commercial Items (June, 2016)

* * * * *
    (b) * * *
    ____(36) 52.223-11, Ozone-Depleting Substances and High Global 
Warming Potential Hydrofluorocarbons (June, 2016) (E.O. 13693).
    ____(37) 52.223-12, Maintenance, Service, Repair, or Disposal of 
Refrigeration Equipment and Air Conditioners (June, 2016) (E.O. 
13693).
* * * * *
    ____(43) 52.223-20, Aerosols (June, 2016) (E.O. 13693).
    ____(44) 52.223-21, Foams (June, 2016) (E.O. 13693).

* * * * *

0
16. Amend section 52.213-4 by--
0
a. Revising the date of the clause; and
0
b. In paragraph (b)(1)--
0
i. Redesignating paragraphs (b)(1)(xi) through (xvi) as (b)(1)(xiii) 
through (xviii), respectively;
0
ii. Adding new paragraphs (b)(1)(xi) and (xii);
0
iii. Further redesignating newly redesignated paragraphs (b)(1)(xiv) 
through (xviii) as paragraphs (b)(1)(xvi) through (xx), respectively; 
and
0
iv. Adding new paragraphs (b)(1)(xiv) and (xv).
    The revision and additions read as follows:


52.213-4  Terms and Conditions--Simplified Acquisitions (Other Than 
Commercial Items).

* * * * *

Terms and Conditions--Simplified Acquisitions (Other Than Commercial 
Items) (June, 2016)

* * * * *
    (b) * * *
    (1) * * *
    (xi) 52.223-11, Ozone-Depleting Substances and High Global 
Warming Potential Hydrofluorocarbons (June, 2016)

[[Page 30437]]

(E.O. 13693)(applies to contracts for products as prescribed at FAR 
23.804(a)).
    (xii) 52.223-12, Maintenance, Service, Repair, or Disposal of 
Refrigeration Equipment and Air Conditioners (June, 2016) (E.O. 
13693) (Applies to maintenance, service, repair, or disposal of 
refrigeration equipment and air conditioners).
* * * * *
    (xiv) 52.223-20, Aerosols (June, 2016) (E.O. 13693) (Applies to 
contracts for products that may contain high global warming 
potential hydrofluorocarbons as a propellant or as a solvent; or 
contracts for maintenance or repair of electronic or mechanical 
devices).
    (xv) 52.223-21, Foams (June, 2016) (E.O. 13693) (Applies to 
contracts for products that may contain high global warming 
potential hydrofluorocarbons or refrigerant blends containing 
hydrofluorocarbons as a foam blowing agent; or contracts for 
construction of buildings or facilities.
* * * * *

0
17. Amend section 52.223-11 by revising the section heading, clause 
heading, and clause to read as follows:


52.223-11   Ozone-Depleting Substances and High Global Warming 
Potential Hydrofluorocarbons.

* * * * *

Ozone-Depleting Substances and High Global Warming Potential 
Hydrofluorocarbons (June, 2016)

    (a) Definitions. As used in this clause--
    Global warming potential means how much a given mass of a 
chemical contributes to global warming over a given time period 
compared to the same mass of carbon dioxide. Carbon dioxide's global 
warming potential is defined as 1.0.
    High global warming potential hydrofluorocarbons means any 
hydrofluorocarbons in a particular end use for which EPA's 
Significant New Alternatives Policy (SNAP) program has identified 
other acceptable alternatives that have lower global warming 
potential. The SNAP list of alternatives is found at 40 CFR part 82, 
subpart G, with supplemental tables of alternatives available at 
(http://www.epa.gov/snap/).
    Hydrofluorocarbons means compounds that only contain hydrogen, 
fluorine, and carbon.
    Ozone-depleting substance means any substance the Environmental 
Protection Agency designates in 40 CFR part 82 as--
    (1) Class I, including, but not limited to, chlorofluorocarbons, 
halons, carbon tetrachloride, and methyl chloroform; or
    (2) Class II, including, but not limited to, 
hydrochlorofluorocarbons.
    (b) The Contractor shall label products that contain or are 
manufactured with ozone-depleting substances in the manner and to 
the extent required by 42 U.S.C. 7671j (b), (c), (d), and (e) and 40 
CFR part 82, subpart E, as follows:
    Warning: Contains (or manufactured with, if applicable) 
*_______, a substance(s) which harm(s) public health and environment 
by destroying ozone in the upper atmosphere.
    * The Contractor shall insert the name of the substance(s).
    (c) Reporting. For equipment and appliances that normally each 
contain 50 or more pounds of hydrofluorocarbons or refrigerant 
blends containing hydrofluorocarbons, the Contractor shall--
    (1) Track on an annual basis, between October 1 and September 
30, the amount in pounds of hydrofluorocarbons or refrigerant blends 
containing hydrofluorocarbons contained in the equipment and 
appliances delivered to the Government under this contract by--
    (i) Type of hydrofluorocarbon (e.g., HFC-134a, HFC-125, R-410A, 
R-404A, etc.);
    (ii) Contract number; and
    (iii) Equipment/appliance;
    (2) Report that information to the Contracting Officer for FY16 
and to www.sam.gov, for FY17 and after--
    (i) Annually by November 30 of each year during contract 
performance; and
    (ii) At the end of contract performance.
    (d) The Contractor shall refer to EPA's SNAP program (available 
at http://www.epa.gov/snap) to identify alternatives. The SNAP list 
of alternatives is found at 40 CFR part 82, subpart G, with 
supplemental tables available at http://www.epa.gov/snap.
    (End of clause)


0
18. Amend section 52.223-12 by revising the section heading, clause 
heading, and clause to read as follows:


52.223-12   Maintenance, Service, Repair, or Disposal of Refrigeration 
Equipment and Air Conditioners.

* * * * *

Maintenance, Service, Repair, or Disposal of Refrigeration Equipment 
and Air Conditioners (June, 2016)

    (a) Definitions. As used in this clause--
    Global warming potential means how much a given mass of a 
chemical contributes to global warming over a given time period 
compared to the same mass of carbon dioxide. Carbon dioxide's global 
warming potential is defined as 1.0.
    High global warming potential hydrofluorocarbons means any 
hydrofluorocarbons in a particular end use for which EPA's 
Significant New Alternatives Policy (SNAP) program has identified 
other acceptable alternatives that have lower global warming 
potential. The SNAP list of alternatives is found at 40 CFR part 82, 
subpart G, with supplemental tables of alternatives available at 
(http://www.epa.gov/snap/).
    Hydrofluorocarbons means compounds that contain only hydrogen, 
fluorine, and carbon.
    (b) The Contractor shall comply with the applicable requirements 
of sections 608 and 609 of the Clean Air Act (42 U.S.C. 7671g and 
7671h) as each or both apply to this contract.
    (c) Unless otherwise specified in the contract, the Contractor 
shall reduce the use, release, or emissions of high global warming 
potential hydrofluorocarbons under this contract by--
    (1) Transitioning over time to the use of another acceptable 
alternative in lieu of high global warming potential 
hydrofluorocarbons in a particular end use for which EPA's SNAP 
program has identified other acceptable alternatives that have lower 
global warming potential.
    (2) Preventing and repairing refrigerant leaks through service 
and maintenance during contract performance;
    (3) Implementing recovery, recycling, and responsible disposal 
programs that avoid release or emissions during equipment service 
and as the equipment reaches the end of its useful life; and
    (4) Using reclaimed hydrofluorocarbons, where feasible.
    (d) For equipment and appliances that normally each contain 50 
or more pounds of hydrofluorocarbons or refrigerant blends 
containing hydrofluorocarbons, that will be maintained, serviced, 
repaired, or disposed under this contract, the Contractor shall--
    (1) Track on an annual basis, between October 1 and September 
30, the amount in pounds of hydrofluorocarbons or refrigerant blends 
containing hydrofluorocarbons added or taken out of equipment or 
appliances under this contract by--
    (i) Type of hydrofluorocarbon (e.g., HFC-134a, HFC-125, R-410A, 
R-404A, etc.);
    (ii) Contract number;
    (iii) Equipment/appliance; and
    (2) Report that information to the Contracting Officer for FY16 
and to www.sam.gov, for FY17 and after--
    (i) No later than November 30 of each year during contract 
performance; and
    (ii) At the end of contract performance.
    (e) The Contractor shall refer to EPA's SNAP program to identify 
alternatives. The SNAP list of alternatives is found at 40 CFR part 
82, subpart G, with supplemental tables available at http://www.epa.gov/snap/.
    (End of clause)


0
19. Add section 52.223-20 to read as follows:


52.223-20  Aerosols.

    As prescribed in 23.804(c), insert the following clause:

Aerosols (June, 2016)

    (a) Definitions. As used in this clause--
    Global warming potential means how much a given mass of a 
chemical contributes to global warming over a given time period 
compared to the same mass of carbon dioxide. Carbon dioxide's global 
warming potential is defined as 1.0.
    High global warming potential hydrofluorocarbons means any 
hydrofluorocarbons in a particular end use for which EPA's 
Significant New Alternatives Policy (SNAP) program has identified 
other acceptable alternatives that have lower global warming 
potential. The SNAP list of alternatives is found at 40 CFR part 82, 
subpart G, with supplemental tables of alternatives available at 
http://www.epa.gov/snap/).
    Hydrofluorocarbons means compounds that contain only hydrogen, 
fluorine, and carbon.
    (b) Unless otherwise specified in the contract, the Contractor 
shall reduce its use, release, or emissions of high global warming

[[Page 30438]]

potential hydrofluorocarbons, when feasible, from aerosol 
propellants or solvents under this contract. When determining 
feasibility of using a particular alternative, the Contractor shall 
consider environmental, technical, and economic factors such as--
    (1) In-use emission rates, energy efficiency;
    (2) Safety, such as flammability or toxicity;
    (3) Ability to meet technical performance requirements; and
    (4) Commercial availability at a reasonable cost.
    (c) The Contractor shall refer to EPA's SNAP program to identify 
alternatives. The SNAP list of alternatives is found at 40 CFR part 
82, subpart G, with supplemental tables available at http://www.epa.gov/snap/.
    (End of clause)


0
20. Add section 52.223-21 to read as follows:


52.223-21  Foams.

    As prescribed in 23.804(d), insert the following clause:

Foams (June, 2016)

    (a) Definitions. As used in this clause--
    Global warming potential means how much a given mass of a 
chemical contributes to global warming over a given time period 
compared to the same mass of carbon dioxide. Carbon dioxide's global 
warming potential is defined as 1.0.
    High global warming potential hydrofluorocarbons means any 
hydrofluorocarbons in a particular end use for which EPA's 
Significant New Alternatives Policy (SNAP) program has identified 
other acceptable alternatives that have lower global warming 
potential. The SNAP list of alternatives is found at 40 CFR part 82, 
subpart G, with supplemental tables of alternatives available at 
http://www.epa.gov/snap/.
    Hydrofluorocarbons means compounds that contain only hydrogen, 
fluorine, and carbon.
    (b) Unless otherwise specified in the contract, the Contractor 
shall reduce its use, release, and emissions of high global warming 
potential hydrofluorocarbons and refrigerant blends containing 
hydrofluorocarbons, when feasible, from foam blowing agents, under 
this contract. When determining feasibility of using a particular 
alternative, the Contractor shall consider environmental, technical, 
and economic factors such as--
    (1) In-use emission rates, energy efficiency, and safety;
    (2) Ability to meet performance requirements; and
    (3) Commercial availability at a reasonable cost.
    (c) The Contractor shall refer to EPA's SNAP program to identify 
alternatives. The SNAP list of alternatives is found at 40 CFR part 
82, subpart G, with supplemental tables available at http://www.epa.gov/snap/.
    (End of clause)

[FR Doc. 2016-10998 Filed 5-13-16; 8:45 am]
 BILLING CODE 6820-EP-P



                                                                      Federal Register / Vol. 81, No. 94 / Monday, May 16, 2016 / Rules and Regulations                                          30429

                                                  activity to approve a contracting officer               ACTION:   Final rule.                                   • Clarified that the clause
                                                  determination to select more than five                                                                        prescription exception is for supplies
                                                  offerors to submit phase-two proposals.                 SUMMARY:   DoD, GSA, and NASA are                     that will be delivered outside the United
                                                  The approval level is delegable no lower                issuing a final rule amending the                     States and its outlying areas as well as
                                                  than the senior contracting official                    Federal Acquisition Regulation (FAR) to               for contracts for services performed
                                                  within the contracting activity. This rule              implement Executive branch policy in                  outside the United States and its
                                                  change does not place any new                           the President’s Climate Action Plan to                outlying areas.
                                                  requirements on small entities.                         procure, when feasible, alternatives to                 • Added in the clauses at 52.223–20
                                                                                                          high global warming potential (GWP)                   and 52.223–21 environmental,
                                                  Item V—Technical Amendments                             hydrofluorocarbons (HFCs). This final                 technical, and economic factors to
                                                     Editorial changes are made at FAR                    rule will allow agencies to better meet               consider when determining feasibility.
                                                  1.106.                                                  the greenhouse gas emission reduction
                                                                                                          goals and reporting requirements of the               B. Analysis of Public Comments
                                                    Dated: May 5, 2016.
                                                  William Clark,                                          Executive Order on Planning for                       1. General
                                                  Director, Office of Government-wide
                                                                                                          Sustainability in the Next Decade.
                                                                                                                                                                a. Support the Objectives of the Rule
                                                  Acquisition Policy, Office of Acquisition               DATES: Effective: June 15, 2016.
                                                  Policy, Office of Government-wide Policy.                                                                        Comments: Many of the respondents
                                                                                                          FOR FURTHER INFORMATION CONTACT: Mr.
                                                                                                                                                                expressed specific support for the
                                                    Federal Acquisition Circular (FAC)                    Charles Gray, Procurement Analyst, at                 objectives of the rule. Several
                                                  2005–88 is issued under the authority of                703–795–6328, for clarification of                    respondents applauded DoD, GSA, and
                                                  the Secretary of Defense, the                           content. For information pertaining to                NASA in proposing that Federal
                                                  Administrator of General Services, and                  status or publication schedules, contact              agencies procure, when feasible,
                                                  the Administrator for the National                      the Regulatory Secretariat Division at                alternatives to high-GWP HFC
                                                  Aeronautics and Space Administration.                   202–501–4755. Please cite FAC 2005–
                                                    Unless otherwise specified, all                                                                             refrigerants. Other respondents stated
                                                                                                          88, FAR Case 2014–026.                                that the proposed rule is a step in the
                                                  Federal Acquisition Regulation (FAR)                    SUPPLEMENTARY INFORMATION:
                                                  and other directive material contained                                                                        right direction and could have
                                                  in FAC 2005–88 is effective May 16,                     I. Background                                         considerable impact on reducing the
                                                  2016 except for items I, II, III, and IV,                                                                     Government’s greenhouse gas emissions
                                                                                                             DoD, GSA, and NASA published a                     and helping Federal agencies and
                                                  which are effective June 15, 2016.                      proposed rule at 80 FR 26883, on May                  departments meet several Executive
                                                     Dated: May 4, 2016.                                  11, 2015, to implement Executive                      actions and orders pertaining to HFCs.
                                                  Claire M. Grady,                                        branch policy in the President’s Climate                 Response: Noted.
                                                  Director, Defense Procurement and                       Action Plan to procure, when feasible,
                                                  Acquisition Policy.                                     alternatives to high GWP HFCs. This                   b. Oppose the Objectives of the Rule
                                                     Dated: May 5, 2016.                                  final rule will allow agencies to better                Comment: One respondent believed
                                                  Jeffrey A. Koses,                                       meet the greenhouse gas emission                      that global warming is a farce and that
                                                  Senior Procurement Executive/Deputy CAO,                reduction goals and reporting                         the Government should not be allowed
                                                  Office of Acquisition Policy, U.S. General              requirements of the Executive Order                   to acquire anything because of global
                                                  Services Administration.                                13693, Planning for Federal                           warming.
                                                     Dated: April 28, 2016.                               Sustainability in the Next Decade, of                   Response: The FAR Council is
                                                  William P. McNally,                                     March 25, 2015.                                       responsible for the implementation of
                                                  Assistant Administrator, Office of                         Sixteen respondents submitted                      the Executive orders and policies of the
                                                  Procurement National Aeronautics and                    comments on the proposed rule.                        Administration. DoD, NASA, and GSA
                                                  Space Administration.                                                                                         have prepared this rule to implement
                                                                                                          II. Discussion and Analysis
                                                  [FR Doc. 2016–10995 Filed 5–13–16; 8:45 am]                                                                   and facilitate compliance with
                                                  BILLING CODE 6820–EP–P
                                                                                                            The Civilian Agency Acquisition                     Executive Order 13693, Planning for
                                                                                                          Council and the Defense Acquisition                   Sustainability in the Next Decade, and
                                                                                                          Regulations Council (the Councils)                    the President’s Climate Action Plan.
                                                  DEPARTMENT OF DEFENSE                                   reviewed the public comments in the
                                                                                                          development of the final rule. A                      2. Definition of ‘‘high global warming
                                                  GENERAL SERVICES                                        discussion of the comments and the                    potential hydrofluorocarbons’’
                                                  ADMINISTRATION                                          changes made to the rule as a result of                  Various respondents commented on
                                                                                                          those comments are provided as                        the definition of ‘‘high global warming
                                                  NATIONAL AERONAUTICS AND                                follows:                                              potential hydrofluorocarbons.’’ One of
                                                  SPACE ADMINISTRATION                                                                                          these respondents questioned whether
                                                                                                          A. Summary of Significant Changes
                                                                                                                                                                the identification of a lower GWP HFC
                                                  48 CFR Parts 1, 2, 7, 11, 23, 25, and 52                From the Proposed Rule
                                                                                                                                                                alternative pursuant to the SNAP
                                                  [FAC 2005–88; FAR Case 2014–026; Item
                                                                                                            In response to public comments                      program meant that the Government
                                                  I; Docket No. 2014–0026; Sequence 1]                    received, the final rule contains the                 would be required to use the alternative.
                                                                                                          following changes from the proposed                      Response: The Councils have further
                                                  RIN 9000–AM87                                           rule:                                                 clarified in the final rule that the term
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                                                                                                            • Clarified the definition of ‘‘high                ‘‘high global warming potential
                                                  Federal Acquisition Regulation: High
                                                                                                          global warming potential                              hydrofluorocarbons’’ means any
                                                  Global Warming Potential
                                                                                                          hydrofluorocarbons’’ to make it specific              hydrofluorocarbons in a particular end
                                                  Hydrofluorocarbons
                                                                                                          to a particular end use.                              use for which EPA’s Significant New
                                                  AGENCY: Department of Defense (DoD),                      • Included the use of reclaimed HFCs                Alternatives Policy (SNAP) program has
                                                  General Services Administration (GSA),                  as products that minimize or eliminate                identified other acceptable alternatives
                                                  and National Aeronautics and Space                      the use, release, or emission of high                 that have lower global warming
                                                  Administration (NASA).                                  GWP HFCs.                                             potential. The SNAP list of alternatives


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                                                  30430               Federal Register / Vol. 81, No. 94 / Monday, May 16, 2016 / Rules and Regulations

                                                  is found at 40 CFR part 82, subpart G,                  potential (ODP), GWP, toxicity,                          In response to the respondent who
                                                  with supplemental tables of alternatives                flammability, and the potential for                   disagreed that the definition of high
                                                  available at http://www.epa.gov/snap.                   human exposure. The SNAP program                      GWP HFCs should refer just to the
                                                  For every end use, the SNAP program                     does not review for a substitute’s                    SNAP program, the Councils note that
                                                  lists include several different                         performance or efficacy. The SNAP list                the definition does not bind the end
                                                  alternatives as acceptable for the same                 of alternatives evolves as new                        user to select any specific alternative or
                                                  end use or application and provides                     substitutes become available and                      to ignore assessment of the unique
                                                  information, including the GWPs of                      substitutes that pose significantly                   needs that end user may be facing.
                                                  alternatives. The decision as to which of               greater risk than other available                     Rather, requiring activities can use the
                                                  the SNAP-listed acceptable alternatives                 substitutes are determined to no longer               information provided by the SNAP list
                                                  to select in a particular end use should                be acceptable for use. These changes                  of alternatives, including information on
                                                  emphasize the alternative with the                      occur because of the changing                         the GWP of alternatives, in addition to
                                                  lowest GWP that meets the needs of the                  availability of substitutes for a specific            other factors, in the selection of
                                                  user.                                                   use as well as EPA’s overall                          products and equipment that best meet
                                                     With regard to the required use of a                 understanding of the environmental and                their needs. Please see related response
                                                  lower GWP HFC product identified in                     human health impacts of substitutes                   below regarding comments on the
                                                  the SNAP list of alternatives products,                 already listed as compared with new                   feasibility of moving to alternatives.
                                                  the Government’s decision to do so                      substitutes. However, as changes are                     In response to the respondent who
                                                  must take into consideration the                        made to the SNAP lists, EPA assures                   commented that the term ‘‘high global
                                                  feasibility of moving on to an                          users that multiple substitutes are                   warming potential hydrofluorocarbons’’
                                                  alternative. This decision will require                 available for any given end use and that              was defined solely in terms of relative
                                                  the assessment of a number of factors,                  end users continue to have options.                   GWP (compared to other alternatives
                                                  including lifecycle costs and the overall                  In its recent final rule, published at 80          approved under the EPA’s SNAP
                                                  energy efficiency achieved through the                  FR 42869, on July 20, 2015, EPA                       program) and was concerned that this
                                                  substitution of a lower GWP HFC                         modified the listings for certain HFCs                failed to take into account other major
                                                  product.                                                and HFC blends in various end uses in                 causes of climate impact, the term is
                                                     Comment: One respondent criticized                                                                         intended to reflect differences in GWP.
                                                                                                          the aerosols, foam blowing, and
                                                  the SNAP program, upon which the                                                                              This is consistent with how climate
                                                                                                          refrigeration and air conditioning
                                                  proposed definition is based. Among                                                                           impacts are considered under the SNAP
                                                                                                          sectors where other alternatives were
                                                  other concerns, the respondent believes                                                                       program (See section VII.A.3., GWP
                                                                                                          available or potentially available that
                                                  that the SNAP program has identified                                                                          Considerations, in the preamble to the
                                                                                                          posed lower overall risk to human
                                                  some substitutes that have significant                                                                        recent EPA SNAP final rule published at
                                                  drawbacks, including poor thermal                       health and the environment. Pursuant to
                                                                                                          the guiding principles of the SNAP                    80 FR 42870 at 42937, on July 20, 2015).
                                                  efficiency, flammability issues,                                                                              Users may take into account additional
                                                  processing difficulties, and limited                    program, the action did not specify that
                                                                                                          any HFCs are unacceptable across all                  factors, such as energy efficiency, in
                                                  global availability. Similarly, another                                                                       deciding which of the lower-GWP
                                                  respondent did not agree that the                       sectors and end uses. Consistent with
                                                                                                          section 612 of the Clean Air Act (42                  alternatives listed as acceptable under
                                                  definition of high GWP HFCs should be
                                                                                                          U.S.C. 7671k) as EPA has historically                 SNAP meet their needs. For
                                                  created by simple reference to the SNAP
                                                                                                          interpreted it under the SNAP program,                clarification, please also see the
                                                  program, because other relevant factors
                                                                                                          EPA made the modifications based on                   response below that discusses other
                                                  need to be considered (see also section
                                                                                                          evaluation of the substitutes addressed               factors such as energy efficiency, which
                                                  3.d.). Another respondent commented
                                                                                                          in that action using the SNAP criteria                are related to the performance of the
                                                  that the term ‘‘high global warming
                                                                                                          for evaluation and considering the                    equipment, whereas GWP relates to the
                                                  potential hydrofluorocarbons’’ was
                                                                                                          current suite of other available and                  intrinsic characteristic and potential
                                                  defined solely in term of relative GWP
                                                                                                          potentially available substitutes.                    environmental impact of the chemical
                                                  (compared to alternatives approved
                                                  under the EPA’s SNAP program.) The                         For the refrigerant and foam blowing               itself.
                                                  respondent is concerned that the                        agent end uses, equipment design is                   3. Policy.
                                                  policies based on this definition fail to               critical. Thus, there is a range of thermal
                                                                                                          conductivity and insulation values                    a. Lower vs. lowest/climate-friendly
                                                  take into account other major causes of
                                                  climate impact.                                         among the acceptable alternatives, with                  Comment: One respondent, primarily
                                                     Response: In response to the concern                 some having lower values than the                     addressing refrigerants, recommended
                                                  raised by one respondent regarding                      HFCs previously used (as well as ozone-               addition of the following definitions to
                                                  significant drawbacks of some                           depleting substances (ODS)) some                      the rule:
                                                  substitutes identified by SNAP, it is                   having higher values, and others having                  ‘‘Climate-friendly’’ alternative means
                                                  helpful to understand the SNAP                          comparable values. In EPA’s recent                    an alternative that is listed as acceptable
                                                  program’s framework for review and                      rulemaking published at 80 FR 42869,                  under the EPA’s SNAP program (40 CFR
                                                  listings. EPA applies seven specific                    on July 20, 2015, EPA noted that no                   part 82, subpart G) that has a GWP of
                                                  criteria for determining whether a                      information provided to EPA suggests                  less than 150.
                                                  substitute is acceptable or unacceptable.               that the alternatives that remain                        ‘‘Lowest GWP alternative’’ means an
                                                  These criteria, which can be found at 40                acceptable result in lower energy                     alternative that is identified as
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                                                  CFR 82.180(a)(7), include atmospheric                   efficiency. In fact, as stated in the                 acceptable under the EPA’s SNAP
                                                  effects and related health and                          preamble to the rule, available                       program and has the lowest GWP
                                                  environmental effects, ecosystem risks,                 information indicates that the opposite               compared to all other acceptable
                                                  consumer risks, flammability, and cost                  can be true, that the acceptable                      alternatives for the relevant end use and
                                                  and availability of the substitute. To                  alternatives not subject to a status                  has a GWP under 150 for new
                                                  enable EPA to assess these criteria, EPA                change have been used in equipment or                 equipment and a GWP at least 50
                                                  requires submitters to include various                  used to produce insulating foam that                  percent lower than the current
                                                  information including ozone depletion                   provide for better energy efficiency.                 refrigerant for retrofits.


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                                                                      Federal Register / Vol. 81, No. 94 / Monday, May 16, 2016 / Rules and Regulations                                            30431

                                                     The respondent further recommended                   According to one of the respondents, the              transition ‘‘over time.’’ Accordingly, this
                                                  a policy that would avoid procurement                   SNAP final rule specified that use of                 final rule allows existing Government
                                                  of mid-range GWP alternatives (from                     HFC–134a would be unacceptable for                    equipment to be utilized until the end
                                                  300 to 1500 GWP) if truly low GWP                       use in polystyrene extruded boardstock                of its useful life, thus minimizing
                                                  alternatives have been proven and                       and billet as of January 1, 2021.                     stranded capital.
                                                  commercialized, because use of mid-                        Response: It is not the intent of this
                                                                                                          rule to require conversion to alternatives            c. Acceptability and Feasibility
                                                  range alternatives would set up a
                                                  circumstance where a future phase-out                   on earlier timelines than in the SNAP                    Comments: More than half of the
                                                  in just a few years will be necessary to                final rule. Rather, as stated in the                  respondents commented on the need to
                                                  remove these mid-range GWP                              background section of the proposed                    consider factors other than low GWP
                                                  alternatives due to their impact on the                 FAR rule, the purpose of this final rule              value in determining the acceptability
                                                  climate. Consistent with the definition                 is to facilitate the purchase of cleaner              and/or feasibility of using a lower GWP
                                                  recommended by the respondent, the                      alternatives to HFCs whenever feasible                alternative. According to many
                                                  respondent also recommended that the                    and transition over time to equipment                 respondents, lower GWP alternatives
                                                  Government should not purchase any                      that uses safer and more sustainable                  must be both environmentally and
                                                  new equipment or product unless it has                  alternatives.                                         economically acceptable. One
                                                  a refrigerant with a GWP of less than                      Comment: A respondent also                         respondent stated that considering only
                                                  150 and for retrofits, higher GWP                       recommended coordinating with                         the GWP of a compound may not be
                                                  refrigerants can be used if they have                   Department of Energy rulemaking on                    appropriate, depending on the
                                                  GWPs of at least 50 percent less than the               energy efficiency and conservation                    circumstances of a particular use. This
                                                  current refrigerant that will be replaced.              standards. Companies are working to                   respondent also stated that GWP alone
                                                  Otherwise, the respondent                               comply with these stringent new                       is an insufficient measure of a product’s
                                                  recommended that the old system                         standards.                                            impact on human health and the
                                                  should be decommissioned and                               Response: The Councils are aware of                environment. A few respondents stated
                                                  replaced.                                               the Department of Energy (DOE)                        the need for a definition of ‘‘feasible.’’
                                                     Response: While GWP is an important                  rulemaking titled, ‘‘Energy Efficiency                They noted that without a definition,
                                                  criterion, it should not be the sole                    Standards for New Federal Commercial                  contractors will have little guidance as
                                                  criterion for consideration. The EPA                    and Multi-Family High-Rise Residential                to when adoption of low GWP
                                                  SNAP program conducts comparative                       Buildings’ Baseline Standards Update’’,               substances would be appropriate and/or
                                                  risk analyses for each end use and                      published at 80 FR 68749, on November                 required and the rule will have little
                                                  alternative, and has not set specific                   6, 2015, and have taken the DOE rules                 impact on procurement decisions.
                                                  GWP limits for acceptable alternatives                  into account in drafting this final rule.
                                                  in a specific end use. For example,                     The rule requires reduction in the use,               i. Life Cycle/Energy Efficiency
                                                  while an alternative refrigerant in one                 release, and emissions of high GWP                       Many of the respondents
                                                  application might have a GWP that                       HFCs only when feasible. The clauses                  recommended consideration of the total
                                                  meets the respondent’s proposed GWP                     state that a determination of feasibility             life-cycle of an alternative product, such
                                                  limit of 150, there may be other human                  would include consideration of energy                 as in-use emission rates and energy
                                                  health or environmental considerations                  efficiency.                                           efficiency benefits.
                                                  for the particular end use or application                  Comment: One respondent noted that                    • With regard to refrigerants, a
                                                  (e.g., toxicity limits, flammability) that              there is a great range of speeds by which             respondent commented that the
                                                  may lead the user to determine that                     the sectors, and the companies within                 majority of the climate impact from
                                                  another alternative is more suitable for                them, who use HFCs, can transition into               refrigerant used results from the energy
                                                  that particular application. For this                   lower GWP alternatives. Another                       consumed by the air conditioning
                                                  reason and others, Federal agency                       respondent stated that a transition to                system (i.e., the indirect impact) and not
                                                  requiring activities and contractors need               low GWP blowing agents must be                        from the GWP of the refrigerant itself
                                                  the flexibility to be able to evaluate the              conducted over a timeline that allows                 (i.e., the direct climate impact).
                                                  entire suite of lower GWP alternatives                  individual manufacturers to identify                  According to the respondent, refrigerant
                                                  and to balance direct climate impacts,                  suitable alternatives and conduct                     selection has a substantial impact on the
                                                  energy efficiency, safety, performance,                 necessary product development and                     energy efficiency of the air conditioning
                                                  and other user needs before selecting                   testing to fully commercialize new                    system in which the refrigerant will be
                                                  the one most appropriate for their                      formulations. Another respondent                      used.
                                                  specific use.                                           recommended modifying the clause at                      • With regard to foam insulation, a
                                                                                                          FAR 52.223–12(c)(1) to require                        respondent commented on the
                                                  b. Timing                                               transitioning ‘‘at the earliest feasible              importance of the use of thermal
                                                     Various respondents commented on                     time’’ from high GWP HFCs to                          insulation for increased energy
                                                  the timing of when the FAR rule should                  acceptable alternatives.                              efficiency to reduce global warming.
                                                  take effect.                                               Response: The President’s Climate                  Likewise, another respondent pointed
                                                     Comment: Several respondents                         Action Plan specifically directs agencies             out the need to consider the life-cycle
                                                  recommended that the enactment of this                  to purchase cleaner alternatives to HFCs              benefits of products, because if less
                                                  rule should be tied to the HFC                          whenever feasible and transition over                 energy efficient insulation products are
                                                  conversion timelines within the EPA                     time to equipment that uses safer and                 used in the construction of a building
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                                                  SNAP rule published at 80 FR 42870, on                  more sustainable alternatives. The                    the result may be increased greenhouse
                                                  July 20, 2015, and that this rule is                    language used in the Climate Action                   gas emissions over the life of the
                                                  imposing use of lower GWP alternatives                  Plan: (1) Recognizes that there are                   building or facility.
                                                  ‘‘earlier than required.’’ Unless                       technical hurdles that must be overcome
                                                  otherwise noted, all references to a                    to identify suitable alternatives, conduct            ii. Safety—Flammability
                                                  SNAP rule in this document are in                       necessary product development and                        Several respondents commented on
                                                  reference to the final rule published at                testing, and fully commercialize new                  the need to consider key product
                                                  80 FR 42870, on July 20, 2015.                          formulations; and (2) envisions a                     attributes that affect safety, such as


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                                                  30432               Federal Register / Vol. 81, No. 94 / Monday, May 16, 2016 / Rules and Regulations

                                                  flammability. Another respondent                        acceptable to unacceptable, EPA                       refrigerants. Rather than wait for low
                                                  mentioned that feasible alternatives                    considered the technical challenges of a              GWP alternatives to be deployed in
                                                  should consider standards and codes                     transition and the supply of other                    retrofitted or newly installed
                                                  compliance (such as safety standards).                  alternatives in establishing the                      equipment, the Federal Government can
                                                                                                          transition date. As the term is used in               significantly reduce greenhouse gas
                                                  iii. Technical Capability                               this rule, ‘‘feasible’’ means not only                emissions in the near-term by including
                                                     Several respondents commented on                     capable of being accomplished, but                    reclaimed HFC refrigerant as part of the
                                                  the necessity to consider technical                     capable of being accomplished                         procurement priorities. Another
                                                  capability of the proposed alternative to               successfully and suitably. All of the                 respondent recommended that the
                                                  avoid inadvertently selecting a product                 factors mentioned by respondents are                  Government should give preference to
                                                  that will prove to be less energy                       relevant in the decision as to which                  the use of reclaimed refrigerant to
                                                  efficient.                                              acceptable alternative is preferable in a             service existing Federal buildings and
                                                  iv. Commercial Availability                             given application. Alternatives that have             facilities, just like the Federal
                                                                                                          been determined acceptable by EPA                     Government promotes recycled paper
                                                     Several respondents commented on                     under the SNAP Program should still be                and other consumer goods.
                                                  the need for alternatives to be                         evaluated in each particular application                 • Improved refrigerant management.
                                                  commercially available. One respondent                  in terms of environmental, technical,                 As stated by a respondent, a Federal
                                                  recommended that absence of                             and economic feasibility. The FAR                     program promoting reclaimed
                                                  commercially available alternatives                     Council does not have a basis (such as                refrigerant will encourage better
                                                  should constitute a viable exemption                    statute or Executive Order) upon which                refrigerant management practices in the
                                                  from the provisions of the rule. One                    to establish a specific cost differential             private sector, because companies will
                                                  respondent recommended that decisions                   that would constitute an unreasonable                 recognize that their used refrigerant has
                                                  on feasibility of low GWP alternatives                  cost. An assessment of whether a cost is              an economic value. Another respondent
                                                  need to be assessed based on available                  unreasonable depends partly on the                    noted that the policy would provide
                                                  technologies.                                           benefits to be derived from use of the                incentive for recovery of HFC refrigerant
                                                                                                          alternative and other economic factors.               from older end-of-life equipment
                                                  v. Cost
                                                                                                          Therefore, the final rule does not define             (currently only approximately 10
                                                     Several respondents mentioned cost                   the term ‘‘feasibility,’’ but provides                percent is recovered and reclaimed).
                                                  as another factor for consideration. One                direction to the Federal user and                        • Less production of virgin HFC
                                                  respondent asked whether the taxpayer                   contractor in terms of factors to be                  refrigerants. One respondent stated that
                                                  should be forced to pay more than the                   considered when determining the                       the goal should be to limit production
                                                  general public, by adopting lower GWP                   feasibility of using an acceptable lower              of all virgin refrigerants, including
                                                  products earlier than required.                         GWP alternative (FAR 52.223–20,                       lower GWP HFCs. As stated by another
                                                  vi. Definition                                          Aerosols, and 52.223–21, Foams).                      respondent, use of reclaimed refrigerant
                                                                                                                                                                displaces additional production of new
                                                     One of the respondents recommended                   d. Refrigerant Management                             HFC refrigerant, thereby preventing
                                                  defining ‘‘feasibility’’ as ‘‘a                           Comment: Many of the respondents                    greenhouse gas emissions that would
                                                  commercially available alternative with                 commented on the need for better                      otherwise occur.
                                                  a GWP lower than that of the currently                  refrigerant management, including the                    Response: The Councils recognize
                                                  used substance in the relevant                          recovery, reclamation, and reuse of                   that refrigerant management is an
                                                  application, that (1) is identified by EPA              refrigerant.                                          important way to reduce climate-
                                                  as an acceptable alternative under 40                     • Leaks and accidental or intentional               damaging and ozone-depleting
                                                  CFR part 82, which increases the total                  venting of refrigerant. As stated by one              emissions from equipment used for air-
                                                  cost of the installation or bid by not                  respondent, refrigeration and air                     conditioning and refrigeration. While
                                                  more than 10 percent more than would                    conditioning systems are prone to leaks               the existing EPA regulations prohibit
                                                  be the cost if high GWP substances were                 during normal operations. Even with                   any person from knowingly venting,
                                                  used.’’                                                 aggressive leak detection, these                      releasing, or disposing into the
                                                     Response: The concerns raised by the                 appliances and systems require                        environment any ozone-depleting or
                                                  respondents in paragraphs 3.c.i. through                servicing to maintain the proper                      HFC refrigerant in the course of
                                                  vi. of this analysis of the public                      refrigerant change and performance.                   maintaining, servicing, repairing, or
                                                  comments are issues considered by EPA                   Another respondent emphasized that air                disposing of air-conditioning or
                                                  in making listing decisions under the                   conditioning and refrigeration systems                refrigeration appliances, they do not
                                                  SNAP program. Section 612 of the Clean                  are actually non-emissive uses of HFCs                establish requirements to repair leaks or
                                                  Air Act provides that EPA must prohibit                 since these are closed systems. The                   specify other servicing requirements for
                                                  the use of a substitute where EPA has                   concern with HFCs, therefore, is not the              equipment containing HFCs. EPA has
                                                  determined that there are other available               use, but the misuse. According to the                 recently proposed updating the existing
                                                  substitutes that pose less overall risk to              respondent, the vast amount of HFC                    refrigerant management requirements
                                                  human health and the environment for                    emissions result from leaks and                       under section 608 of the Clean Air Act
                                                  that use. EPA reviews substitutes using                 accidental or intentional venting of                  and extending them to cover servicing
                                                  a comparative risk framework and GWP                    refrigerant.                                          practices for HFCs (see 80 FR 69457,
                                                  is only one of several criteria EPA                       • Increase the use of reclaimed                     dated November 9, 2015).
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                                                  considers in its overall evaluation. EPA                refrigerants. According to one                           There are also environmental benefits
                                                  also considers factors such as ozone                    respondent, nearly all lost refrigerant is            to promoting the use of reclaimed
                                                  depletion potential, exposure                           replaced with newly produced virgin                   material over virgin production. Both
                                                  assessments, flammability, toxicity, and                refrigerant. Another respondent                       newly-produced and reclaimed
                                                  other environmental impacts. In                         recommended that the benefits of the                  refrigerants must meet the same purity
                                                  addition, in the recent change of status                proposed rule could be significantly                  requirements and thus reclaimed
                                                  rule in which EPA changed the status of                 enhanced by defining acceptable low                   refrigerant can be used instead of newly
                                                  a number of high GWP substitutes from                   GWP alternatives to include reclaimed                 produced refrigerants. This final rule


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                                                                      Federal Register / Vol. 81, No. 94 / Monday, May 16, 2016 / Rules and Regulations                                            30433

                                                  provides use of reclaimed HFCs as an                    GWP alternatives ‘‘unless otherwise                   tracking and reporting on thousands of
                                                  example of sustainable acquisition                      specified in the contract.’’ In those cases           pieces of smaller equipment, thereby
                                                  under FAR 11.002(d)(1) and encourages                   where a Federal agency has critical uses              minimizing administrative burden and
                                                  their use at FAR clause 52.223–12(c)(4).                where only qualified high GWP HFCs                    costs to contractors, including many
                                                                                                          may be used, these would be specified                 small businesses; and also recognizing
                                                  4. Exceptions
                                                                                                          in a contract and unqualified lower                   that larger systems such as building
                                                  a. Outside the United States                            GWP alternatives would not be allowed.                chillers, commissary/large commercial
                                                     Various respondents commented on                                                                           refrigeration systems, and industrial
                                                                                                          c. Low Temperature Refrigeration
                                                  the exception in the proposed rule for                                                                        process refrigeration systems likely
                                                                                                          Systems
                                                  contracts that will be performed outside                                                                      contribute the largest percentage of total
                                                  the United States and its outlying areas.                  Comment: One respondent                            HFC emissions. This 50-pound
                                                     Comment: One respondent requested                    recommended an exemption for low                      threshold is also consistent with other
                                                  clarification of what ‘‘performed outside               temperature refrigeration systems                     existing regulatory requirements for
                                                  the United States and its outlying areas’’              operating below ¥50 °C. The                           refrigerants imposed under the Clean
                                                  means for the acquisition of supplies.                  respondent stated that in both the EU                 Air Act and 40 CFR part 82. Recognizing
                                                  Another respondent stated that the rule                 and Canada, similar low GWP initiatives               that EPA has proposed (see 80 FR
                                                  should apply to both domestic and                       have allowed such an exemption.                       69457, dated November 9, 2015)
                                                  foreign procurement decisions, because                  According to the respondent, due to                   updating and expanding the coverage of
                                                  limiting the scope to domestic                          issues of flammability, energy                        the refrigerant management
                                                  acquisitions misses an opportunity to                   efficiency, and technical capability, the             requirements established under section
                                                  further reduce greenhouse gas                           respondent does not know of any low                   608 of the Clean Air Act, if those
                                                  emissions. Other respondents stated that                GWP solutions that meet the needs of                  requirements are amended, they would
                                                  an effective means of reducing the                      ultra-low temperature refrigeration                   be applicable to the public and private
                                                  future climate change contribution of                   systems.                                              sectors.
                                                  HFCs must be global in nature. One                         Response: There is no need for a
                                                                                                          special exemption for a low temperature               c. Foreign Acquisition
                                                  respondent recommended that that
                                                  application to contracts outside to                     refrigeration system. The concept of                     Comment: One respondent
                                                  United States and its outlying areas                    feasibility is addressed and an                       recommended that the rule should
                                                  should be excepted only if proven to be                 exemption arises if use of lower GWP                  clarify that if certain products identified
                                                  unfeasible.                                             alternatives is found to be infeasible. If            as acceptable under the EPA SNAP
                                                     Response: The clause prescription at                 low GWP alternatives do not meet the                  program are available in other markets
                                                  FAR 23.804 has been clarified by                        needs of ultra-low temperature                        but not available or not available at
                                                  specifying that the exception to use of                 refrigeration systems, then transition is             commercial levels in the U.S., then the
                                                  the clause is for contracts for supplies                not feasible and, therefore, not required             products may be acquired under the
                                                  to be delivered outside the United States               by this rule.                                         nonavailability exception to the Buy
                                                  and its outlying areas, or contracts for                5. Other                                              American statute (see FAR 25.103).
                                                  services to be performed outside the                                                                             Response: FAR part 25, Foreign
                                                  United States and its outlying areas.                   a. Labeling                                           Acquisition, addresses domestic source
                                                  This rule only applies to contracts for                    Comment: One respondent                            restrictions, including the Buy
                                                  supplies to be delivered within the                     recommended that contractors should                   American Act. However, not all
                                                  United States or its outlying areas or to               also be required to label products which              acquisitions are subject to the Buy
                                                  services to be performed within the                     contain or are manufactured with HFCs.                American Act (e.g., when the
                                                  United States or its outlying areas.                       Response: The labeling requirement                 acquisition is covered by the World
                                                                                                          for products that contain or are                      Trade Organization Government
                                                  b. Military and Space Activities                        manufactured with Ozone-Depleting                     Procurement Agreement). Other
                                                     Comment: One respondent asked                        Substances (ODS) at paragraph (b) of                  domestic source restrictions may also
                                                  whether DoD, GSA, and NASA would                        FAR clause 52.223–11, Ozone-Depleting                 apply, and there are sanctions against
                                                  be prohibited from taking advantage of                  Substances and High Global Warming                    purchases from certain countries. FAR
                                                  the SNAP exemptions provided for                        Potential Hydrofluorocarbons, is                      part 23 must be read in conjunction
                                                  military and space activities.                          required by statute (42 U.S.C. 7671j) and             with FAR part 25.
                                                     Response: Nothing in this rule                       EPA regulations (40 CFR part 82,
                                                  precludes Federal agencies from taking                                                                        d. Ozone-Depleting Substances
                                                                                                          subpart E). There is not a comparable
                                                  advantage of the exemptions to the                      requirement for high GWP HFCs.                           Comment: One respondent is
                                                  SNAP requirements, as currently                                                                               concerned that the proposed clause at
                                                  provided in the SNAP final rule for                     b. Buildings With Multiple Systems                    FAR 52.223–12, Maintenance, Service,
                                                  military and space- and aeronautics-                       Comment: With regard to the                        Repair, Recycling, or Disposal of
                                                  related applications. However, this rule,               reporting requirement in FAR 52.223–                  Refrigeration Equipment and Air
                                                  unlike the SNAP Program, requires                       12(d), the respondent recommended                     Conditioners, does not include ODS
                                                  transitioning in advance of the SNAP                    changing ‘‘50 or more pounds’’ to ‘‘25 or             within its scope.
                                                  deadlines, only when feasible.                          more pounds’’ and that a building                        Response: This rule is not intended to
                                                  Therefore, an exception for military and                containing multiple systems that each                 suggest that users revert to an ODS in
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                                                  space activities is unnecessary. In                     contain individually less than 25                     lieu of a high-GWP HFC. The language
                                                  accordance with the overall                             pounds of HFCs or refrigerant blends                  in the rule leaves the current ODS
                                                  construction of the rule, exemptions for                containing HFCs should be assessed as                 regulatory language, currently at FAR
                                                  military and space activities would fall                the entire building’s refrigerant use and             subpart 23.8, in place and only adds
                                                  under the general exemption as                          not on an individual system level.                    language dealing with high GWP HFCs.
                                                  infeasible.                                                Response: When drafting the                        The definition of ‘‘ozone-depleting
                                                     In addition, the FAR clauses state that              proposed rule, the 50-pound threshold                 substance’’ as any substance designated
                                                  a contractor shall transition to lower                  was chosen in order to eliminate                      by the EPA in 40 CFR part 82 also


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                                                  30434               Federal Register / Vol. 81, No. 94 / Monday, May 16, 2016 / Rules and Regulations

                                                  remains in FAR part 2. The language                     threshold. Applicability of the                       service, repair, or disposal of refrigeration
                                                  also maintains the current FAR                          requirements below the simplified                     equipment or air conditioners. In addition,
                                                  23.803(a)(2) preference to the                          acquisition threshold is necessary to be              although the clauses at 52.223–20, Aerosols,
                                                  procurement of substances that reduce                   effective and to cover a significant                  and 52.223–21, Foams, do not contain any
                                                                                                                                                                reporting requirements, these clauses also
                                                  overall risks to human health and the                   number of actions and dollars that fall               apply respectively to solicitations and
                                                  environment by the depletion of ozone                   below this threshold. However, the                    contracts that involve repair or maintenance
                                                  in the upper atmosphere.                                reporting requirement applies only for                of electronic or mechanical devices and
                                                                                                          delivery of, or maintenance, service,                 construction of buildings and facilities.
                                                  e. Specific Refrigerants, Foams, and                    repair and disposal of, equipment or                     DoD, GSA, and NASA estimate an average
                                                  Aerosols                                                appliances normally containing 50                     reporting burden of about 8 hours per year
                                                     Comments: Several respondents                        pounds or more of HFCs or refrigerant                 for each small business providing supplies
                                                  commented on specific refrigerants,                     blends containing HFCs.                               that contain high GWP HFCs or maintenance,
                                                  foams, or aerosols and lower GWP                           Likewise, a majority of the                        repair, or disposal of refrigeration equipment
                                                  alternatives.                                           acquisitions involving high GWP HFCs                  or air conditioners.
                                                     • One respondent sent information on                                                                          DoD, GSA, and NASA did not identify any
                                                                                                          involve the acquisition of commercial
                                                                                                                                                                significant alternatives to the rule that would
                                                  a low GWP substitute for HFC–134a.                      items. Applicability of the requirements              accomplish the stated objectives of the
                                                     • One respondent included a list of                  to commercial items is necessary to be                President’s Climate Action Plan and the
                                                  some examples of available low GWP                      effective and include a significant                   Executive Order.
                                                  replacements for high GWP HFCs by                       number of actions and dollars for                        It is necessary for the rule to apply to small
                                                  application (i.e., refrigerants, foam, and              commercial item acquisitions.                         entities, because about three-quarters of the
                                                  aerosols).                                                                                                    affected contractors are small businesses and
                                                     • Another respondent was concerned                   IV. Executive Orders 12866 and 13563                  excluding them would minimize the
                                                  that the rule does not require an                          Executive Orders (E.O.s) 12866 and                 importance of this policy and may prevent
                                                  alternative to the most commonly used                   13563 direct agencies to assess all costs             the Government from meeting the objective
                                                  refrigerant, HCFC–22, which is both an                  and benefits of available regulatory                  of this policy. Every effort has been made to
                                                                                                                                                                minimize the burdens imposed. For example,
                                                  ODS and has a high GWP, because it is                   alternatives and, if regulation is
                                                                                                                                                                this rule only requires tracking and reporting
                                                  determined to be acceptable by EPA                      necessary, to select regulatory                       on equipment that normally contain 50 or
                                                  under SNAP.                                             approaches that maximize net benefits                 more pounds of HFCs. In addition, this rule
                                                     Response: The information on the low                 (including potential economic,                        does not impose a labeling requirement for
                                                  GWP alternatives is noted. While the                    environmental, public health and safety               products that contain or are manufactured
                                                  revised FAR subpart 23.8 makes no                       effects, distributive impacts, and                    with HFCs, unlike the labeling requirement
                                                  explicit mention of HCFC–22, or any                     equity). E.O. 13563 emphasizes the                    that is required by statute for ozone-depleting
                                                  other specific substance, the regulation                importance of quantifying both costs                  substances.
                                                  refers to EPA’s SNAP program for the                    and benefits, of reducing costs, of                     Interested parties may obtain a copy
                                                  list of acceptable alternatives. HCFC–22                harmonizing rules, and of promoting                   of the FRFA from the Regulatory
                                                  remains acceptable as a refrigerant                     flexibility. This is a significant                    Secretariat Division. The Regulatory
                                                  under SNAP. However, existing                           regulatory action and, therefore, was                 Secretariat Division has submitted a
                                                  regulations effectively prohibit the use                subject to review under Section 6(b) of               copy of the FRFA to the Chief Counsel
                                                  of virgin HCFC–22 to manufacture a                      E.O. 12866, Regulatory Planning and                   for Advocacy of the Small Business
                                                  new appliance or retrofit an existing                   Review, dated September 30, 1993. This                Administration.
                                                  appliance (see 40 CFR 82.15(g)(2)). This                rule is not a major rule under 5 U.S.C.
                                                  restriction does not affect the use of                  804.                                                  VI. Paperwork Reduction Act
                                                  used, recovered, and recycled HCFC–22.                                                                           The Paperwork Reduction Act (44
                                                                                                          V. Regulatory Flexibility Act
                                                  Regulations also effectively prohibit the                                                                     U.S.C. Chapter 35) applies. The rule
                                                  manufacture or import of appliances                       DoD, GSA, and NASA have prepared
                                                                                                          a Final Regulatory Flexibility Analysis               contains information collection
                                                  and appliance components that are pre-                                                                        requirements. OMB has cleared this
                                                  charged with HCFC–22 (see 40 CFR                        (FRFA) consistent with the Regulatory
                                                                                                          Flexibility Act, 5 U.S.C. 601, et seq. The            information collection requirement
                                                  82.304).                                                                                                      under OMB Control Number 9000–0191,
                                                     Comment: One respondent                              FRFA is summarized as follows:
                                                                                                                                                                titled: ‘‘High Global Warming Potential
                                                  recommended an additional clause to                        This rule is necessary to implement                Hydrofluorocarbons.’’
                                                  address clean agent fire suppression.                   Executive branch policy stated in the
                                                     Response: The suggested clause is                    President’s Climate Action Plan. The                  List of Subjects in 48 CFR Parts 1, 2, 7,
                                                  outside the scope of this case and could                objective of this rule is to require Federal          11, 23, 25, and 52
                                                  not be included in the final rule without               agencies to procure climate-friendly chemical
                                                  publishing for public comment.                          alternatives to high global warming potential             Government procurement.
                                                                                                          (GWP) hydrofluorocarbons (HFCs) and allow               Dated: May 5, 2016.
                                                  III. Applicability                                      agencies to better meet the greenhouse gas
                                                                                                          emission reduction goals and reporting                William Clark,
                                                     This rule will apply to all acquisitions             requirements of Executive Order 13693,                Director, Office of Government-wide
                                                  inside the United States and its outlying               Planning for Sustainability in the Next               Acquisition Policy, Office of Acquisition
                                                  areas of products or services containing                Decade.                                               Policy, Office of Government-wide Policy.
                                                  or using high GWP HFCs, including—                         There were no issues raised by the public            Therefore, DoD, GSA and NASA
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                                                     • Acquisitions that do not exceed the                comments in response to the initial
                                                                                                                                                                amend 48 CFR parts 1, 2, 7, 11, 23, 25,
                                                  simplified acquisition threshold; and                   regulatory flexibility analysis.
                                                                                                             Based on FPDS data for Fiscal Year 2015,           and 52 as set forth below:
                                                     • Commercial items (including
                                                                                                          this rule will apply to approximately 1400            ■ 1. The authority citation for 48 CFR
                                                  commercially available off-the-shelf                    small business contractors that provide
                                                  items) that use FAR part 12 procedures.                                                                       parts 1, 2, 7, 11, 23, 25, and 52
                                                                                                          certain supplies (including equipment and
                                                     A majority of the acquisitions                       appliances) that contain HFCs to the Federal
                                                                                                                                                                continues to read as follows:
                                                  involving high GWP HFCs do not                          Government and about 347 small business                 Authority: 40 U.S.C. 121(c); 10 U.S.C.
                                                  exceed the simplified acquisition                       contractors that provide maintenance,                 chapter 137; and 51 U.S.C. 20113.



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                                                                      Federal Register / Vol. 81, No. 94 / Monday, May 16, 2016 / Rules and Regulations                                            30435

                                                  PART 1—FEDERAL ACQUISITION                                (10) PSC 9630, Additive Metal                       environmentally preferable (including
                                                  REGULATIONS SYSTEM                                      Materials.                                            EPEAT®-registered, and non-toxic and
                                                                                                          *    *     *    *    *                                less toxic) products, products
                                                  1.106   [Amended]                                                                                             containing recovered materials,
                                                                                                            Products has the same meaning as
                                                  ■ 2. Amend section 1.106 by adding to                   supplies.                                             biobased products, non-ozone-depleting
                                                  the table, in numerical order, FAR                      *    *     *    *    *                                products, and products and services that
                                                  segments ‘‘52.223–11’’ and ‘‘52.223–12’’                                                                      minimize or eliminate, when feasible,
                                                  with their corresponding OMB control                    PART 7—ACQUISITION PLANNING                           the use, release, or emission of high
                                                  number ‘‘9000–0191’’.                                                                                         global warming potential
                                                                                                          ■ 4. Amend section 7.103 by revising                  hydrofluorocarbons, such as by using
                                                  PART 2—DEFINITIONS OF WORDS                             paragraph (p)(2) to read as follows:                  reclaimed instead of virgin
                                                  AND TERMS                                                                                                     hydrofluorocarbons;
                                                                                                          7.103    Agency-head responsibilities.
                                                                                                          *      *    *    *    *                               *     *     *     *    *
                                                  ■ 3. Amend section 2.101 in paragraph
                                                  (b)(2) by adding, in alphabetical order,                   (p) * * *                                          ■ 7. Revise the heading of subpart 23.8
                                                  the definitions ‘‘Global warming                           (2) Comply with the policy in                      to read as follows:
                                                  potential’’, ‘‘High global warming                      11.002(d) regarding procurement of
                                                                                                          biobased products, products containing                Subpart 23.8—Ozone-Depleting
                                                  potential hydrofluorocarbons’’,
                                                                                                          recovered materials, environmentally                  Substances and Hydrofluorocarbons
                                                  ‘‘Hydrofluorocarbons’’, ‘‘Manufactured
                                                  end product’’, and ‘‘Products’’ to read as              preferable products and services
                                                                                                          (including Electronic Product                         ■ 8. Revise section 23.800 to read as
                                                  follows:                                                                                                      follows:
                                                                                                          Environmental Assessment Tool
                                                  2.101   Definitions.                                    (EPEAT®)-registered electronic                        23.800   Scope of subpart.
                                                  *      *    *     *     *                               products, nontoxic or low-toxic                         This subpart sets forth policies and
                                                     (b) * * *                                            alternatives), ENERGY STAR® and                       procedures for the acquisition of items
                                                     (2) * * *                                            Federal Energy Management Program-                    that—
                                                     Global warming potential means how                   designated products, renewable energy,                  (a) Contain, use, or are manufactured
                                                  much a given mass of a chemical                         water-efficient products, non-ozone-                  with ozone-depleting substances; or
                                                  contributes to global warming over a                    depleting products, and products and                    (b) Contain or use high global
                                                  given time period compared to the same                  services that minimize or eliminate,                  warming potential hydrofluorocarbons.
                                                  mass of carbon dioxide. Carbon                          when feasible, the use, release, or
                                                                                                                                                                ■ 9. Revise section 23.801 to read as
                                                  dioxide’s global warming potential is                   emission of high global warming
                                                                                                                                                                follows:
                                                  defined as 1.0.                                         potential hydrofluorocarbons, such as
                                                  *      *    *     *     *                               by using reclaimed instead of virgin                  23.801   Authorities.
                                                     High global warming potential                        hydrofluorocarbons;                                     (a) Title VI of the Clean Air Act (42
                                                  hydrofluorocarbons means any                            *      *    *    *    *                               U.S.C. 7671, et seq.).
                                                  hydrofluorocarbons in a particular end                                                                          (b) Section 706 of division D, title VII
                                                  use for which EPA’s Significant New                     PART 11—DESCRIBING AGENCY                             of the Omnibus Appropriations Act,
                                                  Alternatives Policy (SNAP) program has                  NEEDS                                                 2009 (Public Law 111–8).
                                                  identified other acceptable alternatives                ■ 5. Amend section 11.002 by revising                   (c) Executive Order 13693 of March
                                                  that have lower global warming                          paragraph (d)(1)(vi) to read as follows:              25, 2015, Planning for Federal
                                                  potential. The SNAP list of alternatives                                                                      Sustainability in the Next Decade.
                                                  is found at 40 CFR part 82, subpart G,                  11.002    Policy.                                       (d) Environmental Protection Agency
                                                  with supplemental tables of alternatives                *     *     *     *    *                              (EPA) regulations, Protection of
                                                  available at http://www.epa.gov/snap/).                   (d)(1) * * *                                        Stratospheric Ozone (40 CFR part 82).
                                                  *      *    *     *     *                                 (vi) Non-ozone-depleting substances,
                                                                                                                                                                23.802   [Removed]
                                                     Hydrofluorocarbons means                             and products and services that
                                                  compounds that contain only hydrogen,                   minimize or eliminate, when feasible,                 ■   10. Remove section 23.802.
                                                  fluorine, and carbon.                                   the use, release, or emission of high
                                                                                                                                                                23.803 [Redesignated as 23.802 and
                                                  *      *    *     *     *                               global warming potential                              Amended]
                                                     Manufactured end product means any                   hydrofluorocarbons, such as by using
                                                                                                          reclaimed instead of virgin                           ■ 11. Redesignate section 23.803 as
                                                  end product in product and service                                                                            23.802 and revise newly redesignated
                                                  codes (PSC) 1000–9999, except—                          hydrofluorocarbons (subpart 23.8).
                                                                                                                                                                23.802 to read as follows:
                                                     (1) PSC 5510, Lumber and Related                     *     *     *     *    *
                                                  Basic Wood Materials;                                                                                         23.802   Policy.
                                                     (2) Product or service group (PSG) 87,               PART 23—ENVIRONMENT, ENERGY                             It is the policy of the Federal
                                                  Agricultural Supplies;                                  AND WATER EFFICIENCY,                                 Government that Federal agencies—
                                                     (3) PSG 88, Live Animals;                            RENEWABLE ENERGY                                        (a) Implement cost-effective programs
                                                     (4) PSG 89, Subsistence;                             TECHNOLOGIES, OCCUPATIONAL                            to minimize the procurement of
                                                     (5) PSC 9410, Crude Grades of Plant                  SAFETY, AND DRUG-FREE                                 materials and substances that contribute
                                                                                                          WORKPLACE
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                                                  Materials;                                                                                                    to the depletion of stratospheric ozone
                                                     (6) PSC 9430, Miscellaneous Crude                    ■ 6. Amend section 23.000 by revising                 and/or result in the use, release or
                                                  Animal Products, Inedible;                              paragraph (d) to read as follows:                     emission of high global warming
                                                     (7) PSC 9440, Miscellaneous Crude                                                                          potential hydrofluorocarbons; and
                                                  Agricultural and Forestry Products;                     23.000    Scope.                                        (b) Give preference to the
                                                     (8) PSC 9610, Ores;                                  *    *      *    *    *                               procurement of acceptable alternative
                                                     (9) PSC 9620, Minerals, Natural and                   (d) Acquiring energy-efficient and                   chemicals, products, and manufacturing
                                                  Synthetic; and                                          water-efficient products and services,                processes that reduce overall risks to


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                                                  30436               Federal Register / Vol. 81, No. 94 / Monday, May 16, 2016 / Rules and Regulations

                                                  human health and the environment by                     fire/explosion suppression systems) (in               ■ i. Redesignating paragraphs (b)(36)
                                                  minimizing—                                             PSC 4210);                                            through (54) as paragraphs (b)(38)
                                                    (1) The depletion of ozone in the                        (4) Bulk refrigerants and fire                     through (56), respectively;
                                                  upper atmosphere; and                                   suppressants (in PSC 6830);                           ■ ii. Adding new paragraphs (b)(36) and
                                                    (2) The potential use, release, or                       (5) Solvents, dusters, freezing                    (37);
                                                  emission of high global warming                         compounds, mold release agents, and                   ■ iii. Further redesignating newly
                                                  potential hydrofluorocarbons.                           any other miscellaneous chemical                      redesignated paragraphs (b)(43) through
                                                  ■ 12. Add new section 23.803 to read as                 specialty that may contain ozone-                     (56) as paragraphs (b)(45) through (58),
                                                  follows:                                                depleting substances or high global                   respectively; and
                                                                                                          warming potential hydrofluorocarbons                  ■ iv. Adding new paragraphs (b)(43) and
                                                  23.803   Procedures.                                    (in PSC 6850);                                        (44).
                                                     In preparing specifications and                         (6) Corrosion prevention compounds,                  The revision and additions reads as
                                                  purchase descriptions, and in the                       foam sealants, aerosol mold release                   follows:
                                                  acquisition of products and services,                   agents, and any other preservative or                 52.212–5 Contract Terms and Conditions
                                                  agencies shall—                                         sealing compound that may contain                     Required To Implement Statutes or
                                                     (a) Comply with the requirements of                  ozone-depleting substances or high                    Executive Orders—Commercial Items.
                                                  title VI of the Clean Air Act, section 706              global warming potential                              *        *      *     *   *
                                                  of division D, title VII of Public Law                  hydrofluorocarbons (in PSC 8030);
                                                  111–8, Executive Order 13693, and 40                       (7) Fluorocarbon lubricants (primarily             Contract Terms and Conditions
                                                  CFR 82.84(a)(2), (3), (4), and (5);                     aerosols) (in PSC 9150); and                          Required to Implement Statutes or
                                                     (b) Substitute acceptable alternatives                  (8) Any other manufactured end                     Executive Orders—Commercial Items
                                                  to ozone-depleting substances, as                       products that may contain or be                       (June, 2016)
                                                  identified under 42 U.S.C. 7671k, to the                manufactured with ozone-depleting
                                                  maximum extent practicable, as                                                                                *        *      *     *   *
                                                                                                          substances.                                             (b) * * *
                                                  provided in 40 CFR 82.84(a)(1), except                     (b) 52.223–12, Maintenance, Service,                 ____(36) 52.223–11, Ozone-Depleting
                                                  in the case of Class I substances being                 Repair, or Disposal of Refrigeration                  Substances and High Global Warming
                                                  used for specified essential uses, as                   Equipment and Air Conditioners, in                    Potential Hydrofluorocarbons (June, 2016)
                                                  identified under 40 CFR 82.4(n);                        solicitations and contracts that include              (E.O. 13693).
                                                     (c) Unless a particular contract                     the maintenance, service, repair, or                    ____(37) 52.223–12, Maintenance, Service,
                                                  requires otherwise, specify that, when                  disposal of—                                          Repair, or Disposal of Refrigeration
                                                  feasible, contractors shall use another                                                                       Equipment and Air Conditioners (June, 2016)
                                                                                                             (1) Refrigeration equipment, such as
                                                  acceptable alternative in lieu of a high                                                                      (E.O. 13693).
                                                                                                          refrigerators, chillers, or freezers; or
                                                  global warming potential                                   (2) Air conditioners, including air                *        *      *     *   *
                                                  hydrofluorocarbon in products and                                                                               ____(43) 52.223–20, Aerosols (June, 2016)
                                                                                                          conditioning systems in motor vehicles.               (E.O. 13693).
                                                  services in a particular end use for                       (c) 52.223–20, Aerosols, in
                                                  which EPA’s Significant New                                                                                     ____(44) 52.223–21, Foams (June, 2016)
                                                                                                          solicitations and contracts—                          (E.O. 13693).
                                                  Alternatives Policy (SNAP) program has                     (1) For products that may contain
                                                  identified other acceptable alternatives                high global warming potential                         *      *     *    *     *
                                                  that have lower global warming                          hydrofluorocarbons as a propellant, or                ■ 16. Amend section 52.213–4 by—
                                                  potential; and                                          as a solvent; or                                      ■ a. Revising the date of the clause; and
                                                     (d) Refer to EPA’s SNAP program for                     (2) That involve maintenance or                    ■ b. In paragraph (b)(1)—
                                                  the list of alternatives, found at 40 CFR               repair of electronic or mechanical                    ■ i. Redesignating paragraphs (b)(1)(xi)
                                                  part 82, subpart G, as well as                          devices.                                              through (xvi) as (b)(1)(xiii) through
                                                  supplemental tables of alternatives                        (d) 52.223–21, Foams, in solicitations             (xviii), respectively;
                                                  (available at http://www.epa.gov/snap).                 and contracts for—                                    ■ ii. Adding new paragraphs (b)(1)(xi)
                                                  ■ 13. Revise section 23.804 to read as                     (1) Products that may contain high                 and (xii);
                                                  follows:                                                global warming potential                              ■ iii. Further redesignating newly
                                                                                                          hydrofluorocarbons or refrigerant blends              redesignated paragraphs (b)(1)(xiv)
                                                  23.804   Contract clauses.                                                                                    through (xviii) as paragraphs (b)(1)(xvi)
                                                                                                          containing hydrofluorocarbons as a
                                                     Except for contracts for supplies that               foam blowing agent, such as building                  through (xx), respectively; and
                                                  will be delivered outside the United                    foam insulation or appliance foam                     ■ iv. Adding new paragraphs (b)(1)(xiv)
                                                  States and its outlying areas, or                       insulation; or                                        and (xv).
                                                  contracts for services that will be                                                                             The revision and additions read as
                                                                                                             (2) Construction of buildings or
                                                  performed outside the United States and                                                                       follows:
                                                                                                          facilities.
                                                  its outlying areas, insert the following
                                                  clauses:                                                                                                      52.213–4 Terms and Conditions—
                                                                                                          PART 25—FOREIGN ACQUISITION                           Simplified Acquisitions (Other Than
                                                     (a) 52.223–11, Ozone-Depleting                                                                             Commercial Items).
                                                  Substances and High Global Warming                      25.1101    [Amended]
                                                  Potential Hydrofluorocarbons, in                                                                              *        *      *     *   *
                                                                                                          ■ 14. Amend section 25.1101 by
                                                  solicitations and contracts for—                        removing from paragraph (f) ‘‘, as                    Terms and Conditions—Simplified
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                                                     (1) Refrigeration equipment (in                      defined in the provision at 52.225–18’’.              Acquisitions (Other Than Commercial
                                                  product or service code (PSC) 4110);                                                                          Items) (June, 2016)
                                                     (2) Air conditioning equipment (PSC                  PART 52—SOLICITATION PROVISIONS                       *        *      *     *   *
                                                  4120);                                                  AND CONTRACT CLAUSES                                    (b) * * *
                                                     (3) Clean agent fire suppression                                                                             (1) * * *
                                                  systems/equipment (e.g., installed room                 ■   15. Amend section 52.212–5 by—                      (xi) 52.223–11, Ozone-Depleting
                                                  flooding systems, portable fire                         ■   a. Revising the date of the clause; and           Substances and High Global Warming
                                                  extinguishers, aircraft/tactical vehicle                ■   b. In paragraph (b)—                              Potential Hydrofluorocarbons (June, 2016)



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                                                                      Federal Register / Vol. 81, No. 94 / Monday, May 16, 2016 / Rules and Regulations                                              30437

                                                  (E.O. 13693)(applies to contracts for products            * The Contractor shall insert the name of           global warming potential hydrofluorocarbons
                                                  as prescribed at FAR 23.804(a)).                        the substance(s).                                     in a particular end use for which EPA’s
                                                    (xii) 52.223–12, Maintenance, Service,                  (c) Reporting. For equipment and                    SNAP program has identified other
                                                  Repair, or Disposal of Refrigeration                    appliances that normally each contain 50 or           acceptable alternatives that have lower global
                                                  Equipment and Air Conditioners (June, 2016)             more pounds of hydrofluorocarbons or                  warming potential.
                                                  (E.O. 13693) (Applies to maintenance,                   refrigerant blends containing                           (2) Preventing and repairing refrigerant
                                                  service, repair, or disposal of refrigeration           hydrofluorocarbons, the Contractor shall—             leaks through service and maintenance
                                                  equipment and air conditioners).                          (1) Track on an annual basis, between               during contract performance;
                                                  *      *     *       *      *                           October 1 and September 30, the amount in               (3) Implementing recovery, recycling, and
                                                                                                          pounds of hydrofluorocarbons or refrigerant           responsible disposal programs that avoid
                                                    (xiv) 52.223–20, Aerosols (June, 2016) (E.O.
                                                                                                          blends containing hydrofluorocarbons                  release or emissions during equipment
                                                  13693) (Applies to contracts for products that
                                                                                                          contained in the equipment and appliances             service and as the equipment reaches the end
                                                  may contain high global warming potential
                                                                                                          delivered to the Government under this                of its useful life; and
                                                  hydrofluorocarbons as a propellant or as a
                                                                                                          contract by—                                            (4) Using reclaimed hydrofluorocarbons,
                                                  solvent; or contracts for maintenance or
                                                                                                            (i) Type of hydrofluorocarbon (e.g., HFC–           where feasible.
                                                  repair of electronic or mechanical devices).
                                                                                                          134a, HFC–125, R–410A, R–404A, etc.);                   (d) For equipment and appliances that
                                                    (xv) 52.223–21, Foams (June, 2016) (E.O.
                                                                                                            (ii) Contract number; and                           normally each contain 50 or more pounds of
                                                  13693) (Applies to contracts for products that
                                                                                                            (iii) Equipment/appliance;                          hydrofluorocarbons or refrigerant blends
                                                  may contain high global warming potential
                                                                                                            (2) Report that information to the                  containing hydrofluorocarbons, that will be
                                                  hydrofluorocarbons or refrigerant blends                                                                      maintained, serviced, repaired, or disposed
                                                                                                          Contracting Officer for FY16 and to
                                                  containing hydrofluorocarbons as a foam                 www.sam.gov, for FY17 and after—                      under this contract, the Contractor shall—
                                                  blowing agent; or contracts for construction              (i) Annually by November 30 of each year              (1) Track on an annual basis, between
                                                  of buildings or facilities.                             during contract performance; and                      October 1 and September 30, the amount in
                                                  *     *    *      *    *                                  (ii) At the end of contract performance.            pounds of hydrofluorocarbons or refrigerant
                                                  ■ 17. Amend section 52.223–11 by                          (d) The Contractor shall refer to EPA’s             blends containing hydrofluorocarbons added
                                                  revising the section heading, clause                    SNAP program (available at http://                    or taken out of equipment or appliances
                                                                                                          www.epa.gov/snap) to identify alternatives.           under this contract by—
                                                  heading, and clause to read as follows:                 The SNAP list of alternatives is found at 40            (i) Type of hydrofluorocarbon (e.g., HFC–
                                                  52.223–11 Ozone-Depleting Substances                    CFR part 82, subpart G, with supplemental             134a, HFC–125, R–410A, R–404A, etc.);
                                                  and High Global Warming Potential                       tables available at http://www.epa.gov/snap.            (ii) Contract number;
                                                  Hydrofluorocarbons.                                       (End of clause)                                       (iii) Equipment/appliance; and
                                                                                                                                                                  (2) Report that information to the
                                                  *      *     *       *      *                           ■ 18. Amend section 52.223–12 by                      Contracting Officer for FY16 and to
                                                                                                          revising the section heading, clause                  www.sam.gov, for FY17 and after—
                                                  Ozone-Depleting Substances and High
                                                                                                          heading, and clause to read as follows:                 (i) No later than November 30 of each year
                                                  Global Warming Potential                                                                                      during contract performance; and
                                                  Hydrofluorocarbons (June, 2016)                         52.223–12 Maintenance, Service, Repair,                 (ii) At the end of contract performance.
                                                     (a) Definitions. As used in this clause—             or Disposal of Refrigeration Equipment and              (e) The Contractor shall refer to EPA’s
                                                     Global warming potential means how                   Air Conditioners.                                     SNAP program to identify alternatives. The
                                                  much a given mass of a chemical contributes             *      *     *       *       *                        SNAP list of alternatives is found at 40 CFR
                                                  to global warming over a given time period                                                                    part 82, subpart G, with supplemental tables
                                                  compared to the same mass of carbon
                                                                                                          Maintenance, Service, Repair, or                      available at http://www.epa.gov/snap/.
                                                  dioxide. Carbon dioxide’s global warming                Disposal of Refrigeration Equipment                     (End of clause)
                                                  potential is defined as 1.0.                            and Air Conditioners (June, 2016)
                                                     High global warming potential
                                                                                                                                                                ■ 19. Add section 52.223–20 to read as
                                                                                                             (a) Definitions. As used in this clause—           follows:
                                                  hydrofluorocarbons means any                               Global warming potential means how
                                                  hydrofluorocarbons in a particular end use              much a given mass of a chemical contributes           52.223–20    Aerosols.
                                                  for which EPA’s Significant New Alternatives            to global warming over a given time period
                                                  Policy (SNAP) program has identified other                                                                      As prescribed in 23.804(c), insert the
                                                                                                          compared to the same mass of carbon
                                                  acceptable alternatives that have lower global          dioxide. Carbon dioxide’s global warming
                                                                                                                                                                following clause:
                                                  warming potential. The SNAP list of                     potential is defined as 1.0.                          Aerosols (June, 2016)
                                                  alternatives is found at 40 CFR part 82,                   High global warming potential
                                                  subpart G, with supplemental tables of                  hydrofluorocarbons means any                             (a) Definitions. As used in this clause—
                                                  alternatives available at (http://www.epa.gov/          hydrofluorocarbons in a particular end use               Global warming potential means how
                                                  snap/).                                                 for which EPA’s Significant New Alternatives          much a given mass of a chemical contributes
                                                     Hydrofluorocarbons means compounds                   Policy (SNAP) program has identified other            to global warming over a given time period
                                                  that only contain hydrogen, fluorine, and               acceptable alternatives that have lower global        compared to the same mass of carbon
                                                  carbon.                                                 warming potential. The SNAP list of                   dioxide. Carbon dioxide’s global warming
                                                     Ozone-depleting substance means any                  alternatives is found at 40 CFR part 82,              potential is defined as 1.0.
                                                  substance the Environmental Protection                  subpart G, with supplemental tables of                   High global warming potential
                                                  Agency designates in 40 CFR part 82 as—                 alternatives available at (http://www.epa.gov/        hydrofluorocarbons means any
                                                     (1) Class I, including, but not limited to,          snap/).                                               hydrofluorocarbons in a particular end use
                                                  chlorofluorocarbons, halons, carbon                        Hydrofluorocarbons means compounds                 for which EPA’s Significant New Alternatives
                                                  tetrachloride, and methyl chloroform; or                that contain only hydrogen, fluorine, and             Policy (SNAP) program has identified other
                                                     (2) Class II, including, but not limited to,         carbon.                                               acceptable alternatives that have lower global
                                                  hydrochlorofluorocarbons.                                  (b) The Contractor shall comply with the           warming potential. The SNAP list of
                                                     (b) The Contractor shall label products that         applicable requirements of sections 608 and           alternatives is found at 40 CFR part 82,
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                                                  contain or are manufactured with ozone-                 609 of the Clean Air Act (42 U.S.C. 7671g and         subpart G, with supplemental tables of
                                                  depleting substances in the manner and to               7671h) as each or both apply to this contract.        alternatives available at http://www.epa.gov/
                                                  the extent required by 42 U.S.C. 7671j (b), (c),           (c) Unless otherwise specified in the              snap/).
                                                  (d), and (e) and 40 CFR part 82, subpart E,             contract, the Contractor shall reduce the use,           Hydrofluorocarbons means compounds
                                                  as follows:                                             release, or emissions of high global warming          that contain only hydrogen, fluorine, and
                                                     Warning: Contains (or manufactured with,             potential hydrofluorocarbons under this               carbon.
                                                  if applicable) *_______, a substance(s) which           contract by—                                             (b) Unless otherwise specified in the
                                                  harm(s) public health and environment by                   (1) Transitioning over time to the use of          contract, the Contractor shall reduce its use,
                                                  destroying ozone in the upper atmosphere.               another acceptable alternative in lieu of high        release, or emissions of high global warming



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                                                  30438               Federal Register / Vol. 81, No. 94 / Monday, May 16, 2016 / Rules and Regulations

                                                  potential hydrofluorocarbons, when feasible,            DEPARTMENT OF DEFENSE                                 purpose of this rule is to reinstate the
                                                  from aerosol propellants or solvents under                                                                    increased SAT for overseas acquisitions
                                                  this contract. When determining feasibility of          GENERAL SERVICES                                      for peacekeeping or humanitarian
                                                  using a particular alternative, the Contractor          ADMINISTRATION                                        operations. Conforming changes are
                                                  shall consider environmental, technical, and
                                                                                                                                                                made in FAR parts 4, 13, 18, and 19.
                                                  economic factors such as—                               NATIONAL AERONAUTICS AND
                                                     (1) In-use emission rates, energy efficiency;                                                                One public comment was received.
                                                     (2) Safety, such as flammability or toxicity;
                                                                                                          SPACE ADMINISTRATION
                                                                                                                                                                II. Discussion and Analysis
                                                     (3) Ability to meet technical performance
                                                  requirements; and                                       48 CFR Parts 2, 4, 13, 18, and 19                       The Civilian Agency Acquisition
                                                     (4) Commercial availability at a reasonable          [FAC 2005–88; FAR Case 2015–020; Item                 Council and the Defense Acquisition
                                                  cost.                                                   II; Docket No. 2015–0020; Sequence No. 1]             Regulations Council (the Councils)
                                                     (c) The Contractor shall refer to EPA’s                                                                    reviewed the public comment in
                                                  SNAP program to identify alternatives. The              RIN 9000–AN09
                                                                                                                                                                development of the final rule.
                                                  SNAP list of alternatives is found at 40 CFR
                                                  part 82, subpart G, with supplemental tables            Federal Acquisition Regulation:                       A. Summary of Significant Changes
                                                  available at http://www.epa.gov/snap/.                  Simplified Acquisition Threshold for
                                                     (End of clause)                                      Overseas Acquisitions in Support of                     There were no changes made to the
                                                                                                          Humanitarian or Peacekeeping                          rule as a result of the comment received.
                                                  ■ 20. Add section 52.223–21 to read as                  Operations                                            There were no comments on the Initial
                                                  follows:                                                                                                      Regulatory Flexibility Analysis.
                                                                                                          AGENCY:  Department of Defense (DoD),
                                                                                                          General Services Administration (GSA),                B. Analysis of Public Comments
                                                  52.223–21    Foams.
                                                                                                          and National Aeronautics and Space                      Comment: One respondent stated that
                                                    As prescribed in 23.804(d), insert the                Administration (NASA).                                the FAR definition of simplified
                                                  following clause:
                                                                                                          ACTION: Final rule.                                   acquisition needed to clarify that
                                                  Foams (June, 2016)                                                                                            construction is included as part of
                                                                                                          SUMMARY:   DoD, GSA, and NASA are                     supplies or services in a contingency
                                                     (a) Definitions. As used in this clause—             issuing a final rule to amend the Federal
                                                     Global warming potential means how                                                                         environment, noting that construction
                                                                                                          Acquisition Regulation (FAR) to                       projects are very important to
                                                  much a given mass of a chemical contributes
                                                  to global warming over a given time period
                                                                                                          implement a section of U.S. Code which                contingency operations. The respondent
                                                  compared to the same mass of carbon                     establishes a higher simplified                       indicated that contracting professionals
                                                  dioxide. Carbon dioxide’s global warming                acquisition threshold for overseas                    generally understand that the FAR
                                                  potential is defined as 1.0.                            acquisitions in support of humanitarian               covers two broad categories of
                                                     High global warming potential                        or peacekeeping operations.                           acquisition: Supplies and services.
                                                  hydrofluorocarbons means any                            DATES: Effective June 15, 2016.                       Services include everything that is not
                                                  hydrofluorocarbons in a particular end use              FOR FURTHER INFORMATION CONTACT: Ms.                  a commodity (supplies), and is therefore
                                                  for which EPA’s Significant New Alternatives                                                                  inclusive of construction, which is a
                                                                                                          Camara Francis, Procurement Analyst,
                                                  Policy (SNAP) program has identified other
                                                                                                          at 202–550–0935, for clarification of                 type of service.
                                                  acceptable alternatives that have lower global
                                                  warming potential. The SNAP list of                     content. For information pertaining to                  Response: The Councils appreciate
                                                  alternatives is found at 40 CFR part 82,                status or publication schedules, contact              the comment and acknowledge the
                                                  subpart G, with supplemental tables of                  the Regulatory Secretariat Division at                broad understanding that services are
                                                  alternatives available at http://www.epa.gov/           202–501–4755. Please cite FAC 2005–                   inclusive of construction services.
                                                  snap/.                                                  88, FAR Case 2015–020.
                                                     Hydrofluorocarbons means compounds                                                                         III. Executive Orders 12866 and 13563
                                                                                                          SUPPLEMENTARY INFORMATION:
                                                  that contain only hydrogen, fluorine, and                                                                        Executive Orders (E.O.s) 12866 and
                                                  carbon.                                                 I. Background                                         13563 direct agencies to assess all costs
                                                     (b) Unless otherwise specified in the
                                                                                                             DoD, GSA, and NASA published a                     and benefits of available regulatory
                                                  contract, the Contractor shall reduce its use,
                                                  release, and emissions of high global                   proposed rule in the Federal Register at              alternatives and, if regulation is
                                                  warming potential hydrofluorocarbons and                80 FR 60832 on October 8, 2015,                       necessary, to select regulatory
                                                  refrigerant blends containing                           soliciting public comments on this rule,              approaches that maximize net benefits
                                                  hydrofluorocarbons, when feasible, from                 drafted to implement 41 U.S.C. 153,                   (including potential economic,
                                                  foam blowing agents, under this contract.               which establishes a higher simplified                 environmental, public health and safety
                                                  When determining feasibility of using a                 acquisition threshold (SAT) for overseas              effects, distributive impacts, and
                                                  particular alternative, the Contractor shall            acquisitions in support of humanitarian               equity). E.O. 13563 emphasizes the
                                                  consider environmental, technical, and                  or peacekeeping operations. FAR Case                  importance of quantifying both costs
                                                  economic factors such as—                               2003–022 was published in the Federal                 and benefits, of reducing costs, of
                                                     (1) In-use emission rates, energy efficiency,
                                                                                                          Register as an interim rule at 69 FR                  harmonizing rules, and of promoting
                                                  and safety;
                                                     (2) Ability to meet performance                      8312, on February 23, 2004, and as a                  flexibility. This is not a significant
                                                  requirements; and                                       final rule published at 69 FR 76350, on               regulatory action and, therefore, was not
                                                     (3) Commercial availability at a reasonable          December 20, 2004. Drafters of that rule              subject to review under section 6(b) of
                                                  cost.                                                   had revised the definition for SAT                    E.O. 12866, Regulatory Planning and
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                                                     (c) The Contractor shall refer to EPA’s              contained at FAR 2.101: Definitions, but              Review, dated September 30, 1993. This
                                                  SNAP program to identify alternatives. The              had also inadvertently deleted the                    rule is not a major rule under 5 U.S.C.
                                                  SNAP list of alternatives is found at 40 CFR            reference to overseas humanitarian or                 804.
                                                  part 82, subpart G, with supplemental tables            peacekeeping missions and the requisite
                                                  available at http://www.epa.gov/snap/.                                                                        IV. Regulatory Flexibility Act
                                                                                                          doubling of the SAT in those
                                                     (End of clause)
                                                                                                          circumstances. The civilian statute at                  DoD, GSA and NASA have prepared
                                                  [FR Doc. 2016–10998 Filed 5–13–16; 8:45 am]             the time was numbered 41 U.S.C.                       a Final Regulatory Flexibility Analysis
                                                  BILLING CODE 6820–EP–P                                  259(d)(1); it is now at 41 U.S.C. 153. The            (FRFA) consistent with the Regulatory


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Document Created: 2016-05-14 01:16:42
Document Modified: 2016-05-14 01:16:42
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective: June 15, 2016.
ContactMr. Charles Gray, Procurement Analyst, at 703-795-6328, for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202-501-4755. Please cite FAC 2005-88, FAR Case 2014-026.
FR Citation81 FR 30429 
RIN Number9000-AM87
CFR Citation48 CFR 11
48 CFR 1
48 CFR 2
48 CFR 23
48 CFR 25
48 CFR 52
48 CFR 7

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