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EPA/OAR RIN: 2060-AV98 Publication ID: Fall 2024 
Title: Phasedown of Hydrofluorocarbons: Review and Renewal of Eligibility for Application-Specific Allowances  
Abstract:

This rule continues to implement the phase down provisions under the American Innovation and Manufacturing (AIM) Act of 2020. The AIM Act identifies six applications that are to receive “the full quantity of [HFC] allowances necessary, based on projected, current, and historical trends,” under the allowance allocation program through the end of 2025. The six applications are a propellant in metered dose inhalers, defense sprays, structural composite preformed polyurethane foam for marine use and trailer use, the etching of semiconductor material or wafers and the cleaning of chemical vapor deposition chambers within the semiconductor manufacturing sector, mission-critical military end uses, and onboard aerospace fire suppression. EPA can renew this status for up to five years at a time based on statutory criteria outlined in the AIM Act. In this final rule, EPA intends to establish renewal decisions for each of the six applications, consistent with the statutory process under AIM subsection (e)(4)(B). Additionally, EPA intends to establish procedures and the timeline for submitting a petition to designate an application as eligible for ASAs, make targeted revisions to the methodology used to allocate allowances to ASA holders for calendar years 2026 and beyond, and make limited revisions to existing regulatory requirements.

 
Agency: Environmental Protection Agency(EPA)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 40 CFR 84   
Legal Authority: American Innovation and Manufacturing (AIM) Act of 2020 (42 U.S.C. 7675)   
Legal Deadline:
Action Source Description Date
Final  Statutory  Statutory: Under AIM subsection (e)(4)(B)(v), EPA must review and, if appropriate, renew application-specific allowances at least every five years. This review must be completed in time to issue allow  07/14/2025 

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

Summary of the Legal Basis: The American Innovation and Manufacturing (AIM) Act, enacted on December 27, 2020, provides EPA authority 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 (e)(iv)(B) requires EPA to allocate the full quantity of allowances necessary for 6 applications. Five years after enactment of the AIM Act, the statute requires that EPA review the 6 applications, and, if the statutory criteria are met, authorize the production or consumption, as applicable, of any regulated substance used in the application for renewable periods of not more than 5 years for exclusive use in the application.

Alternatives: The alternatives for establishing a subsection (e)(4)(B) rule are, for each application, to either authorize the production or consumption, as applicable, of any regulated substance used in an application for a renewable period of not more than 5 years for exclusive use in that application or to not extend the provisions under (e)(4)(B)(iv).

Anticipated Costs and Benefits: Based on the analysis to date, this rule is not expected to have a significant economic effect.

Risks: Based on the analysis to date, this rule is not expected to have any significant risks.

Timetable:
Action Date FR Cite
NPRM  09/16/2024  89 FR 75898   
NPRM Comment Period End  10/31/2024 
Final Rule  07/00/2025 
Additional Information: EPA-HQ-OAR-2024-0196.
Regulatory Flexibility Analysis Required: No  Government Levels Affected: Federal 
Federalism: No 
Included in the Regulatory Plan: Yes 
Sectors Affected: 325412 Pharmaceutical Preparation Manufacturing; 336212 Truck Trailer Manufacturing; 336214 Travel Trailer and Camper Manufacturing; 336411 Aircraft Manufacturing; 336611 Ship Building and Repairing; 336612 Boat Building; 336992 Military Armored Vehicle, Tank, and Tank Component Manufacturing; 339112 Surgical and Medical Instrument Manufacturing; 423740 Refrigeration Equipment and Supplies Merchant Wholesalers; 92216 Fire Protection; 922160 Fire Protection 
RIN Data Printed in the FR: No 
Agency Contact:
Michelle Graff
Environmental Protection Agency
Office of Air and Radiation
1200 Pennsylvania Avenue NW,
Washington, DC 20460
Phone:202 564-5387
Email: graff.michelle@epa.gov

Nikita Naik
Environmental Protection Agency
Office of Air and Radiation
1200 Pennsylvania Ave NW,
Washington, DC 20460
Phone:202 564-4957
Email: naik.nikita@epa.gov