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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.

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