News Details
EPA Finalizes Rule on Hydrofluorocarbon (HFC) Phasedown
The U.S. Environmental Protection Agency (EPA) has issued a final rule under the American Innovation and Manufacturing (AIM) Act of 2020, detailing how certain industries may continue to use hydrofluorocarbons (HFCs) in specific applications.
HFCs are powerful greenhouse gases, and this action is part of the U.S. strategy to phase down their production and consumption to mitigate climate change.
What the Rule Covers
The final rule:
- Reviews six applications that currently receive special allowances to use HFCs.
- Determines which of these applications will continue to be eligible for allowances going forward.
- Updates the process for how industries can petition EPA to request eligibility for new applications in the future.
- Revises the HFC allocation method for allowances from 2026 onward.
- Authorizes one company to produce regulated substances for export.
- Finalizes confidentiality rules for certain newly reported information.
Key Takeaways for Businesses
The rule has several key takeaways for industry stakeholders:
- Priority Access: Only applications that meet EPA’s criteria will continue to receive allowances for HFC use.
- Future Petitions: Companies can request EPA to review new applications through a clear petition process.
- Allowance Allocations: New rules define how allowances will be distributed from 2026 onward, ensuring fairness and consistency.
- Compliance: Businesses must follow the updated Technology Transitions regulations relevant to their industry.
Effective Date and Reference
We acknowledge that the above information has been compiled from WTO.
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