EPA Issues Enforcement Alert on Hydrofluorocarbon Imports: Urges Compliance Under AIM Act to Curb Climate Impact

On September 6, 2024, the U.S. Environmental Protection Agency (EPA) issued an Enforcement Alert under the American Innovation and Manufacturing Act (AIM Act), aimed at phasing down the production and consumption of hydrofluorocarbon (HFC). The Alert highlights common compliance issues with bulk HFC imports and recent enforcement actions and urges companies to follow regulations to avoid potential penalties and support efforts to address the climate crisis.

AIM Act:

The AIM Act, enacted on December 27, 2020, mandates an 85% phasedown of hydrofluorocarbons (HFCs) from historical baseline levels by 2036. EPA is authorized to limit production, consumption, and imports of HFCs; facilitate the transition to next-generation technologies; and minimize releases from equipment that uses HFCs. To implement this, EPA will issue transferable HFC production and import allowances (which producers and importers of HFCs must hold in quantities equal to the amount of HFCs they produce or import). The rule sets baselines, establishes allowance allocations, and outlines recordkeeping and compliance measures. Between 2022 and 2050, this phasedown is expected to prevent the emission of 4,560 million metric tons of HFCs in the U.S. Violations of the requirements established in the AIM Act may be subject to administrative, civil, or criminal enforcement actions. 

Hydrofluorocarbons:

Commonly used in air conditioning, refrigeration, fire suppression, solvents, foam blowing agents, and aerosols, HFCs are potent greenhouse gases with global warming potentials (GWPs) hundreds to thousands of times higher than CO2. Their global use has surged due to the phaseout of ozone-depleting substances and increasing demand for cooling. However, lower GWP alternatives, including non-fluorinated options and HFC blends, are available or under development. EPA’s efforts under the AIM Act contribute to a global HFC phasedown, which could reduce global warming by up to 0.5°C when fully implemented.

Updates:

In fiscal year 2024, EPA has completed nine civil settlements addressing unlawful imports of hydrofluorocarbons (HFCs), including recent actions against five companies. These companies imported HFCs without proper allowances, in violation of the AIM Act. The cases prevented emissions equivalent to more than 24,000 metric tons of CO2, comparable to the annual electricity use of 14,000 homes. The companies will pay a total of $115,551 in penalties. Additionally, criminal enforcement actions have been initiated this fiscal year.

If you suspect illegal HFC imports, please report them to the EPA through its Report Environmental Violations webpage.