United States. Chemours expressed disappointment with the U.S. Court of Appeals' decision for the DC Circuit regarding Rule 20 (prohibition on the use of certain high-GWP HFCs as alternatives) of the American Environmental Association's (EPA) Significant New Alternatives Policy (SNAP) program.
Chemours believes the EPA appropriately used its current authority under the Clean Air Act and followed the required process to compare the impact of alternatives on human health and the environment before changing the status of alternatives from high global warming potential (GWP) to unacceptable.
Under this final rule 20, several hydrofluorocarbons (HFCs) and mixtures containing HFCs that were previously listed as acceptable alternatives under the SNAP program are now listed as unacceptable for specific uses. This rule is part of the SNAP program's ongoing review of alternatives to find those that pose the least overall risk to human health and the environment. Specifically, this action changes the status of the list of certain HFCs in various end-uses in the aerosol, refrigeration, and air conditioning sectors. This measure also changes the status from acceptable to unacceptable for certain hydrochlorofluorocarbons (HCFCs) that are being phased out of production under the Montreal Protocol on Substances that Deplete the Ozone Layer and section 605(a) of the Clean Air Act, where substitutes are available that present a lower overall risk to human health and/or the environment.
In the United States, carbon credits for CO2 greenhouse gases remain in place, which offer incentives for U.S. automakers to switch to a low-GWP refrigerant. Currently, more than 50 percent of the market has moved to HFO-1234yf, and we expect this transition to continue so that automakers can take advantage of the credits.
In the statement issued by Chemours, it supports the continued reduction of greenhouse gas emissions and the global framework of regulations and incentives for climate change already in place. This includes the European Union's MAC directive and regulation of fluorinated gases and U.S. greenhouse gas carbon credits for U.S. automakers, which will continue to drive the need for low-GWP products.
The company is reviewing the court's decision and evaluating its options, which could include an appeal of this decision.
