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EPA/OAR

RIN: 2060-AV45

Publication ID: Fall 2022

Title: Phasedown of Hydrofluorocarbons: Allowance Allocation Methodology for 2024 and Later Years
Abstract: This rule will continue to implement the hydrofluorocarbon (HFC) phasedown under the American Innovation and Manufacturing (AIM) Act. A prior rulemaking established a framework for the allowance allocation and trading program to phase down HFC production and consumption over time, and also established the production and consumption baselines, codified the list of controlled substances that will be covered by those baselines, determined an approach to allocating annual allowances for 2022 and 2023 and allowing for trading of those allowances, established recordkeeping and reporting requirements, introduced a robust, agile, and innovative compliance and enforcement system, and addressed other related elements. To continue phasing down the production and consumption of listed HFCs on the schedule listed in the AIM Act, this rulemaking will determine an approach to allocating annual allowances in 2024 and later years and make adjustments based on the lessons learned from implementation of the framework rule.
Agency: Environmental Protection Agency(EPA)	Priority: Economically Significant
RIN Status: Previously published in the Unified Agenda	Agenda Stage of Rulemaking: Proposed Rule Stage
Major: Yes	Unfunded Mandates: No
CFR Citation: 40 CFR 84
Legal Authority: 42 U.S.C. 7675

Legal Deadline:

Action	Source	Description	Date
Final	Statutory	Rule must be signed and in part effective no later than September 2023 so EPA can issue allowances for 2024 by October 1, 2023.	10/01/2021

Statement of Need: This rule is required to meet the statutory provisions of subsection (e), among other provisions, of the AIM Act.

Summary of the Legal Basis: The American Innovation and Manufacturing (AIM) Act, enacted on December 27, 2020, provides EPA new authorities to address hydrofluorocarbons (HFCs) in three main areas: phasing down the production and consumption of listed HFCs, maximizing reclamation and minimizing releases of these HFCs and their substitutes in equipment (e.g., refrigerators and air conditioners), and facilitating the transition to next-generation technologies by restricting the use of HFCs in particular sectors or subsectors. This rule focuses on the first of these areas.

Alternatives: The AIM Act provides discretion and flexibility for how EPA may establish allowance and trading programs. However, the Agency must adhere to the stepdown schedule prescribed in the AIM Act, and must also issue allowances for each calendar year by October 1 of the prior calendar year.

Anticipated Costs and Benefits: For this rulemaking, EPA will prepare and update a Regulatory Impact Analysis (RIA) to provide the public with estimates of the potential costs and benefits of our proposed and final provisions.

Risks: EPA is still evaluating the scope and risks associated with a prospective rule.

Timetable:

Action	Date	FR Cite
NPRM	11/03/2022	87 FR 66372
NPRM Comment Period End	12/19/2022
Final Rule	08/00/2023

Additional Information: .
Regulatory Flexibility Analysis Required: No	Government Levels Affected: Federal
Federalism: No
Included in the Regulatory Plan: Yes
RIN Data Printed in the FR: No
Agency Contact: Wei-An Chang Environmental Protection Agency Office of Air and Radiation 1200 Pennsylvania Avenue NW, Washington, DC 20460 Phone:202 564-6658 Email: chang.andy@epa.gov