United States. The Environmental Protection Agency (EPA) announced the latest move to phase out the use of climate superfluorocarbons (HFCs), issuing a final rule to implement a 40% reduction below historical levels from 2024 to 2028.
The rule aligns with the bipartisan American Innovation and Manufacturing Act (AIM) goals of reducing production and consumption of these climate-damaging chemicals by 85% by 2036 and helping to avoid up to 0.5°C of global warming by 2100.
The final rule builds on the success of the 10% tapering step implemented for 2022 and 2023, by establishing a similar allocation methodology to provide regulatory certainty to industry and stakeholders, ensuring the most efficient implementation under the ongoing tapering step.
Joe Goffman, principal deputy administrator of EPA's Office of Air and Radiation, said that "the U.S. HFC phase-down program, bolstered by domestic innovation to develop alternative chemicals and equipment, is paving the way for the United States to address climate change and strengthen global competitiveness."
"President Biden has brought together a broad coalition of American manufacturers to work on next-generation technologies in refrigeration, HVAC systems and more, helping us cool without further contributing to global warming," said Ali Zaidi, White House national climate adviser.
"This latest allocation rule is a critical step in implementing the AIM Act's timeline for the phase-down of hydrofluorocarbon refrigerants," said AHRI President and CEO Stephen Yurek. "Our industry appreciates the EPA's work and timely issuance of this rule, as we prepare for the next HFC reduction next January."
The United States began this historic phase-down on 1 January 2022, with HFC production and imports reduced to 10% below historical reference levels. Since then, emission allowances are needed to import and produce HFCs. From 2024, the reduction will be 40% below historical levels, a significant decrease in the number of production and consumption permits available compared to previous years. HFC allocations for calendar year 2024 shall be allocated by 29 September 2023. The phase-down schedule under this program is consistent with the timeline set forth in the Kigali Amendment to the Montreal Protocol, which the United States ratified in October 2022.
In addition to establishing an allocation program, the HFC Reduction Program has established robust enforcement mechanisms to ensure a level playing field for U.S. companies that meet reduction requirements. Since January 2022, the Interagency Task Force on Illegal Trade in HFCs, co-led by EPA and the Department of Homeland Security, has prevented illegal shipments of HFCs equivalent to more than 1 million metric tons of carbon dioxide (CO₂) at the border, which is equivalent to the CO2 emissions from electricity use of more than 206,000 homes for one year.
EPA also applies administrative consequences, such as revocation and withdrawal of assignments, for noncompliance that may be in addition to any civil or criminal enforcement action. EPA ended the administrative fallout by removing more than 6.5 million metric tons of carbon dioxide equivalent (CO2e) for calendar years 2022 and 2023 for companies that reported incorrect data or imported HFCs without the required amount of allocations.
EPA is planning two additional regulatory actions under the AIM Act in 2023. The first is a final rule that imposes restrictions on the use of HFCs in certain sectors to facilitate sectoral transitions to alternative chemicals, and the second is a proposed rule that sets certain requirements for the management of HFCs and HFC substitutes in equipment, such as air conditioners.
