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This proposed rulemaking would establish requirements for the management of certain HFCs and their substitutes under subsection (h) of the AIM Act. Specifically, this proposal considers provisions to control, where appropriate, practices, processes, or activities regarding the servicing, repair, disposal, or installation of equipment, for the purposes of maximizing the reclamation and minimizing the release of certain HFCs from equipment and ensuring the safety of technicians and consumers. Among other provisions, EPA is proposing emissions reduction requirements for certain equipment containing HFCs and their substitutes as well as requirements for the reclaiming of HFCs.

Statement of Need:

The EPA issued a notice of proposed rulemaking  to meet the statutory provisions of subsection (h) of the American Innovation and Manufacturing (AIM) Act of 2020.

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. Subsection (h) of the AIM Act requires EPA to establish regulations to control, where appropriate, practices, processes, or activities regarding the servicing, repair, disposal, or installation of equipment, for the purpose of maximizing the reclamation and minimizing the release of certain HFCs from equipment and ensuring the safety of technicians and consumers.

Alternatives:

In the proposed rule, EPA requested comments on alternative approaches and compliance dates for the various provisions. For example, EPA requested comment on alternative compliance dates for the proposed fire suppression requirements.

Anticipated Costs and Benefits:

The Agency prepared a Regulatory Impact Analysis (RIA) Addendum. Taking into account both benefits and compliance costs over the 2025-2050 time period, it is estimated that the proposed rule would result in present value net benefit (benefits minus compliance costs), of $6.1 billion (with compliance costs discounted at three percent).

Risks:

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