(a) Application-specific allowances are available to entities for calendar years as designated that use a regulated substance in the following applications:

(1) As a propellant in metered dose inhalers for calendar years 2022-2030;

(2) In the manufacture of defense sprays for calendar years 2022-2025;

(3) In the manufacture of structural composite preformed polyurethane foam for marine use and trailer use for calendar years 2022-2030;

(4) In the etching of semiconductor material or wafers and the cleaning of chemical vapor deposition chambers within the semiconductor manufacturing sector for calendar years 2022-2030;

(5) For mission-critical military end uses for calendar years 2022-2030;

(6) For on board aerospace fire suppression for calendar years 2022-2030; and

(7) For any application designated as eligible for application-specific allowances pursuant to § 84.14, but in all instances for no longer than calendar year 2030.

(b) Entities identified in paragraph (a) of this section must request application-specific allowances by July 31 of the calendar year prior to the year in which the allowances may be used starting with the calendar year 2023 allocation. The application must include the information required in § 84.31(h)(2) except for applications for mission-critical military end uses, which must include the information required in § 84.31(h)(3).

(1) Entities must provide additional information if requesting that EPA consider unique circumstances that are not reflected by the rates of growth calculated in paragraph (c)(1) of this section, including supporting documentation that verifies this need. The relevant agency official will consider the following situations as unique circumstances:

(i) Demonstrated manufacturing capacity coming on line;

(ii) The acquisition of another domestic manufacturer or its manufacturing facility or facilities;

(iii) A global pandemic, other public health emergency, or other healthcare system needs related to increased patients diagnosed with medical conditions treated by metered dose inhalers; and

(iv) Buildup of a stockpile of a specific regulated substance in the event of a production cessation. Requests for this unique circumstances must include: a letter from the applicant's supplier signed by a responsible corporate officer stating that the supplier is ceasing all production of the regulated substance at issue within three years; certification and supporting documentation that the applicant has regulatory requirements beyond this part that limit ability to switch suppliers or there are no other suppliers that can supply the regulated substance in the quantity needed; and evidence that the applicant has a restricted supply chain for regulated substances. Applicants must specify: quantity (in kilograms) they intend to purchase of each HFC; the year(s) of intended purchase; and description of stockpile plan.

(2) Entities must provide an estimate of the total quantity of regulated substances they expect to purchase in the following calendar year based on their expected eligibility for allowances.

(c) The relevant agency official will determine the quantity of application-specific allowances to issue to each company by:

(1) Accounting for verified changes in inventory and quantities of regulated substances acquired (excluding amounts conveyed or sold) in calculating use, except for applications for mission-critical military end uses;

(2) Accounting for any additional information provided regarding unique circumstances described in paragraph (b)(1) of this section;

(3) Excluding quantities reported under § 84.31(h)(1)(x) and (xi) in calculating growth rates and use amounts;

(4) Allocating allowances equivalent to the highest verified use amount measured in exchange value equivalent from the prior three years for entities that meet any of the following criteria:

(i) Entity purchased equal to or less than 100 kilograms of regulated substances in at least one of the last three years, and the average growth rate of use for the company over the past three years calculated under subparagraph (7)(i) is equal to or greater than 200 percent;

(ii) Entity has a Year 3 use amount that is less than or equal to 33 percent of its Year 2 use;

(iii) Entity had zero purchases or use in one of the last three years for reasons other than newly using regulated substances; or

(iv) Entity purchased equal to or less than 100 kilograms of regulated substances in each of the past three years;

(5) For entities that do not meet any of the criteria in paragraph (4), multiplying the use of regulated substances by the company in the specific application in the prior year by the higher of:

(i) The average growth rate of use for the company over the past three years; or

(ii) The average growth rate of use by all companies requesting allowances for that specific application over the past three years; and

(6) For an entity operating in the etching of semiconductor material or wafers and the cleaning of chemical vapor deposition chambers within the semiconductor manufacturing application, add 10 percent of the quantity derived pursuant to paragraphs 1 through 5;

(7) Subtracting out any general pool allowances allocated to the company for that calendar year; and

(8) In all instances, using the amount reported in paragraph (b)(2) if it is less than the quantity otherwise determined under this paragraph.

(d)(1) EPA will allocate application-specific allowances by October 1 of the calendar year prior to the year in which the allowances may be used. The relevant agency official will issue, through a separate notification, application-specific allowances to eligible entities consistent with paragraphs (a) through (c) of this section.

(2) EPA will provide public notice by that date of the list of entities receiving application-specific allowances, the quantity of allowances for each entity, and the specific application(s) for which the allowances may be used.

(e) EPA will publish a list of entities allocated application-specific allowances, the application for which they may use regulated substances, and the quantity of allowances allocated.

(f) Application-specific allowances may be expended for either the import or production of a regulated substance.

(g) Entities allocated application-specific allowances may confer application-specific allowances to a producer, importer, or other supplier without being subject to the offset required of transfers of allowances in § 84.19. The recipient of a conferred application-specific allowance may continue to confer the allowance until it is expended for production or import. When conferring application-specific allowances, the conferring party must provide a statement certifying that the regulated substances produced or imported with the conferred allowances will only be used for the application-specific use associated with the allowance(s). The producer(s), importer(s), and/or supplier(s) receiving application-specific allowances must certify to the conferring party that they will not sell regulated substances produced or imported with application-specific allowances for any application or use other than the application-specific use associated with the allowance(s).