Frequent Questions on the Phasedown of Hydrofluorocarbons
This page features responses to common questions on the phasedown of hydrofluorocarbons (HFCs) under the American Innovation and Manufacturing (AIM) Act.
On this page:
1. Overview of HFCs and the AIM Act
2. The HFC Allowance Allocation Program
- What does the HFC Allocation Program do?
- How are allowances related to the production or import of bulk HFCs?
- How does EPA determine allowance allocations?
- How are allowances used?
- How do transfers and conferrals work?
- How is EPA ensuring compliance?
- Auditing under the HFC Allocation Program
- How have the HFC Allocation Program requirements changed since the Allocation Framework Rule?
- The HFC Data Hub
3. The Technology Transitions Program
- General Questions on the Technology Transitions Program
- Questions on Restrictions of HFCs in Technologies
- Questions on Products
- Questions on Systems
- Homeowner Questions on Residential Air Conditioner Split Systems
- Original Equipment Manufacturer Questions on Residential Air Conditioner Split Systems
- Original Equipment Manufacturer Questions on Products
- Distributor Questions
- Technician Questions
- Questions on Supermarket Systems
- Questions on Petitions to Restrict HFCs in Technologies
4. Proposed Rule – Management of Certain HFCs and Substitutes under Subsection (h) of the AIM Act
- General and Applicability Questions
- Questions on Leak Repair
- Questions on Reclamation
- Questions on Fire Suppression
- Questions on Cylinders and Container Tracking
- Questions on Resource Conservation and Recovery Act (RCRA) Refrigerant Recycling Alternative Standards
1. Overview of HFCs and the AIM Act
What are HFCs?
Hydrofluorocarbons (HFCs) are potent greenhouse gases developed and manufactured as replacements for ozone-depleting substances. These fluorinated chemicals have no known natural sources. They can have impacts on the climate hundreds to thousands of times greater than the same amount of carbon dioxide (CO2). The impact is measured by the global warming potential (GWP) of a substance; one kilogram of a greenhouse gas with a GWP of 700 has an impact on the climate that is 700 times stronger than one kilogram of CO2, which has a GWP of 1. Unlike ozone-depleting substances, HFCs do not deplete the stratospheric ozone layer.
Where are HFCs used?
Climate-damaging HFCs are used in many of the same sectors where ozone-depleting substances have been used: refrigeration and air conditioning, fire suppression, solvents, foam blowing, aerosols, and semiconductor manufacturing. As of 2018, about 75% of total HFC use in the United States occurred in refrigeration and air conditioning equipment in homes, commercial buildings and industrial operations; approximately 8% in air conditioning in vehicles and refrigerated transport.
Why have HFCs been increasing in use?
HFCs have been increasing in the atmosphere due to increased demand globally for refrigeration and air conditioning, and because they are the primary substitutes for ozone-depleting substances, which are being phased out worldwide due to the global agreement the Montreal Protocol on Substances that Deplete the Ozone Layer (Montreal Protocol). HFC emissions had previously been projected to increase substantially over the next several decades. However, in 2016, in Kigali, Rwanda, countries agreed to adopt an amendment to the Montreal Protocol, known as the Kigali Amendment, which provides for a global phasedown of the production and consumption of HFCs. The United States ratified the Kigali Amendment on October 31, 2022. According to the World Meteorological Organization’s 2022 Scientific Assessment of Ozone Depletion, global adherence to the Kigali Amendment would substantially reduce future emissions, leading to a peaking of HFC emissions before 2040.
What are the impacts of HFCs on the environment?
HFCs are extremely powerful greenhouse gases that accelerate climate change, which threatens society with costly health and environmental impacts such as floods, wildfires, drought, and increasingly severe weather events. Find more information on climate change.
What is the AIM Act?
The American Innovation and Manufacturing Act of 2020 (AIM Act) was enacted on December 27, 2020. The AIM Act mandates the phasedown of HFCs by 85 percent from historic baseline levels by 2036 and authorizes EPA to address HFCs in three main ways: (1) phasing down HFC production and consumption through an allowance allocation program, (2) facilitating sector-based transitions to next-generation technologies, and (3) issuing certain regulations for purposes of maximizing reclamation and minimizing releases of HFCs from equipment.
To achieve the first part, the phasedown of HFCs through an allowance program, EPA established the HFC Allocation Program in the Allocation Framework Rule, “Phasedown of Hydrofluorocarbons: Establishing the Allowance Allocation and Trading Program under the AIM Act” (86 FR 55116), which codified the AIM Act’s production and consumption phasedown schedule of HFCs. This phasedown schedule started with a 10% reduction in 2022 and a further decrease in 2024 to 60% of baseline levels.
Note: “Consumption” is the amount of HFCs newly added to the U.S. market through production and import, minus exports and destruction.
The Technology Transitions Program focuses on the second area of the AIM Act – the transition to substitutes through restrictions on use of HFCs in specific sectors and subsectors. Starting as soon as January 1, 2025, restrictions will take effect on the use of higher-GWP HFCs in new 1) aerosols, 2) foams, and 3) refrigeration, air conditioning, and heat pump equipment.
To address the third area, EPA is proposing regulations to control, where appropriate, practices, processes, or activities regarding the servicing, repair, disposal, or installation of equipment that involves HFCs and their substitutes. The proposed rule under subsection (h) would establish an emissions and reclamation program for the management of certain HFCs and their substitutes that would include provisions that apply to both new and existing equipment in certain sectors and subsectors.
What are the costs and benefits of the HFC phasedown?
The projected emission reductions of the HFC Allocation Program from 2022 to 2050 are equivalent of 4.6 billion metric tons of carbon dioxide –equal to approximately three years of U.S. power sector emissions at 2019 levels. A global HFC phasedown is expected to avoid up to 0.5°C of global warming by 2100.
EPA calculated the societal costs of HFCs to monetize the benefits of the HFC Allocation Program. EPA estimated the cumulative net benefits of this program as $269.9 billion from 2022 through 2050 (in 2020 dollars). The benefits are calculated over the 29-year period from 2022–2050 to account for the years that emissions will be reduced following the consumption reductions from 2022–2036.
For more information, see the 2024 Allocation Rule’s Regulatory Impact Analysis addendum to the HFC Allocation Framework.
The Technology Transitions Program rule will reduce GHG emissions beyond those already provided by the HFC phase-down in the HFC Allocation Program alone, while also providing savings to American consumers and industry through energy efficiency gains and lower cost substitutes. EPA estimates that this initial rulemaking will result in emissions reductions equivalent to up to 876 million metric tons of carbon dioxide from 2025 through 2050. The climate benefits of these emissions reductions are up to $50.4 billion in 2020 dollars. In addition, EPA estimates that this rule provides up to $4.5 billion in overall savings to consumers and businesses, largely driven by the lower cost of refrigerants and increased energy efficiency of equipment using lower-GWP substitutes. For informational purposes, EPA estimates that the proposed emissions reduction and reclamation rule, if finalized as written, would also result in significant GHG emissions reductions benefits while providing cost savings. In the years 2025 – 2050, the proposed provisions would prevent an estimated additional 142 MMTCO2e in HFC emissions beyond the expected benefits from the HFC Allocation Program that went into effect in 2022. The net incremental benefits of this rule from 2025 – 2050 is at least $6.1 billion.
What is the impact of the AIM Act on U.S. industry?
U.S. companies are at the forefront of developing substitutes to HFCs and the technologies that use them. The AIM Act allows companies to continue to lead and innovate internationally. The AIM Act, which is supported by a broad coalition of industry and environmental groups, provides regulatory certainty across the United States for phasing down HFCs and ushers in the use of more climate friendly and efficient substitutes that can save consumers money while improving the environment. This program may also support increased international demand for substitutes manufactured by U.S. firms.
How will U.S. consumers be affected by an HFC phasedown under the AIM act?
The public is expected to reap health and climate benefits from transitioning away from climate-damaging HFCs to safer and more energy-efficient cooling technologies. There are no requirements to stop using any specific equipment or appliance currently in use. Consumers will be able to continue using their equipment until the end of its useful life. As with the transition from ozone-depleting substances, which is largely concluded, the HFC phasedown may not be noticeable to most consumers.
2. The HFC Allowance Allocation Program
What does the HFC Allocation Program do?
Consistent with the AIM Act, EPA is phasing down regulated HFCs to 15% of their historic baseline levels in a stepwise manner by 2036. As part of this phasedown, EPA established an HFC Allowance Allocation Program, including allocating allowances for six specific applications listed in the AIM Act. Allowances are based on the “exchange values” of HFCs which are defined in the AIM Act and correspond to their 100-year GWPs, as given in Table 2.14 of the 2007 Fourth Assessment Report of the Intergovernmental Panel on Climate Change. Allowances are needed to produce or import bulk HFCs.
EPA relies on a robust compliance and enforcement system to prevent and identify illegal activity in the United States and to help ensure compliance with the obligations under the AIM Act.
EPA took initial action through the Allocation Framework Rule in 2021 to implement this phasedown by, among other things:
- Establish the HFC production and consumption baseline levels from which reductions are made
- Determine an initial methodology for allocating production and consumption allowances for 2022 and 2023
- Identify both the types of entities receiving allowances and how to determine what quantities of allowances they would receive
- Create a set-aside pool of allowances for new entrants and entities for which the Agency did not have verifiable data prior to the finalization of the rule
- Establish provisions for the transfer of allowances
- Establish recordkeeping and reporting requirements
- Establish a suite of compliance and enforcement-related provisions
In the Production Baseline Rule, promulgated in 2023 the Agency amended the production baseline downwards by about 0.005% to reflect corrected data on additional destruction and transformation of HFCs that occurred during 2011–2013.
The Agency took further action through the 2024 Allocation Rule, “Phasedown of Hydrofluorocarbons: Allowance Allocation Methodology for 2024 and Later Years” (86 FR 46836), to establish the methodology for allocating HFC production and consumption allowances for calendar years 2024 through 2028. That action:
- Established a methodology to allocate calendar year 2024 through 2028 general pool production and consumption allowances that was similar to the methodology established under the Allocation Framework Rule for calendar years 2022 and 2023
- Amended the consumption baseline downwards by about 0.4% to reflect corrected data submitted to EPA
- Made other adjustments to the HFC Allocation Program
The 2024 Allocation Rule, promulgated in 2023, did not make changes to EPA's approach to issuing application-specific allowances. More information on these actions is available on the Regulatory Actions for Allowance Allocation and Reporting webpage. Find program updates at How have the HFC Allocation Program requirements changed since the Allocation Framework Rule?
How are allowances related to the production or import of bulk HFCs?
What is a bulk HFC?
A bulk HFC is an HFC listed as a regulated substance that is in a container [(e.g., cylinders, drums, International Organization for Standardization (ISO) tanks, small cans)] for the transportation or storage of that substance. Bulk HFCs must first be transferred from a container to another container, vessel, or piece of equipment in order to realize their intended use. All bulk imports are covered regardless of size. For example, an air conditioning recharge kit is a bulk substance because the contents must first be transferred to realize its intended use. Examples include service cans, disposable non-refillable cylinders, refillable cylinders, drums, ton tanks, and ISO tank containers.
A regulated substance contained in a manufactured product such as an appliance, an aerosol can, or a foam is not a bulk substance. The Allowance Allocation Program applies to bulk HFCs. Requirements regarding products and appliances containing HFCs fall under the Technology Transitions Program.
What is an allowance?
An allowance is the unit of measure that EPA uses to control production and consumption of bulk HFCs. An HFC allowance is equal to one metric ton of exchange value equivalent (i.e., one metric ton carbon dioxide equivalent). HFCs with higher exchange values (i.e., global warming potentials) thus require more allowances to produce or import than lower-exchange value HFCs. The AIM Act specifies that an allowance allocated by EPA is a limited authorization for the production or consumption of a regulated substance and does not constitute a property right.
EPA has developed an HFC allowance calculator to help allowance holders understand how many allowances must be expended when they produce or import a quantity of bulk HFCs.
I see that EPA has updated the global warming potentials used in the Greenhouse Gas Equivalencies Calculator. Does this change affect the exchange values under the AIM Act and how I expend allowances?
No. While EPA’s Greenhouse Gas Equivalency Calculator has been updated to use the AR5 GWP values, the AIM Act and EPA’s implementing regulations in 40 CFR part 84 do not rely on those values. The exchange values listed in 40 CFR part 84, appendix A have not changed. These values must continue to be used to determine the number of allowances that need to be expended at the time of production or import. Entities should continue using the existing HFC Allowance Calculator to determine the number of allowances needed for production or import of regulated HFCs.
How do allowances work?
Entities expend allowances in order to produce or import bulk HFCs. Producing HFCs requires expending both production allowances and consumption allowances at the time of production. Importing HFCs requires expending only consumption allowances at the time of import. This is the mechanism EPA also used to implement the ozone-depleting substances phaseout. This design helps EPA ensure that U.S. production and consumption stay within the limits established under the AIM Act and Montreal Protocol. A third category of allowances, called “application-specific allowances,” can be used to either produce or import bulk HFCs for one of the six listed applications (see list of applications at How does EPA determine allowance allocations? below). Application-specific allowances are typically conferred by the entity receiving the allowances to their supplier, who expends the allowances at the time they produce or import bulk HFCs. Allowances are valid between January 1 and December 31 of a given year and cannot be expended, transferred, or conferred after December 31 of the year for which they were issued.
Are allowances needed for production and import of HFCs?
Yes. As of January 1, 2022, allowances are needed to produce or import bulk HFCs, with limited exceptions. Under the AIM Act, the number of HFC production and consumption allowances will decrease to 15% of historic baseline levels by 2036. Reference the HFC phasedown schedule figure.
Are allowances needed to import products containing HFCs?
No, allowances are not needed when importing HFCs contained in a manufactured product such as an appliance, an aerosol can, or a foam. Allowances are only required to import bulk HFCs, regardless of the size of the container. However, the import of certain products containing and using HFCs will be prohibited starting January 1, 2025, under the Technology Transitions Program. Learn more on HFC Technology Transitions.
How does EPA determine allowance allocations?
How does EPA determine how many allowances can be issued each year?
EPA has established production and consumption baselines using the formulas in the AIM Act. The allowed production and consumption levels for each year will decrease relative to these historic baseline levels consistent with the schedule established in the AIM Act. The following table provides the consumption and production limits under the AIM Act’s phasedown schedule. By October 1 of each year, EPA issues allowances for entities to produce or import HFCs in the following calendar year.
Year | Consumption & Production Allowance Caps as a Percentage of Baseline | Estimated Consumption and Production Allowance Caps in MMTEVe* |
---|---|---|
Baseline | Consumption: 302.5 MMTEVe Production: 382.5 MMTEVe |
|
2020-2023 | 90 percent | Consumption: 273.5 MMTEVe Production: 344.3 MMTEVe |
2024-2028 |
60 percent | Consumption: 181.5 MMTEVe Production: 229.5 MMTEVe |
2029-2033 | 30 percent | Consumption: 90.8 MMTEVe Production: 114.8 MMTEVe |
2034-2035 | 20 percent | Consumption: 60.5 MMTEVe Production: 76.5 MMTEVe |
2036 & after | 10 percent | Consumption: 45.4 MMTEVe Production: 57.4 MMTEVe |
*Baselines and caps are expressed in million metric tons of exchange value (MMTEVe), which is numerically equivalent to million metric tons of CO2 equivalent (MMTCO2e).
What information did EPA use to calculate the U.S. baselines?
EPA developed the HFC baselines from data reported to EPA through the Greenhouse Gas Reporting Program (GHGRP), import records provided to U.S. Customs and Border Protection through their Automated Commercial Environment database, responses from other likely producers and importers to direct outreach from EPA, and in response to the February 2021 Notice of Data Availability, and the May 2021 proposed Allocation Program rule. Further, in 2022, the Agency transmitted an electronic communication or letter to all entities that were known, or likely, to have had consumption activity of bulk regulated substances from 2011 through 2021 to notify them that they had until September 26, 2022, to verify, and if necessary correct, data. For more information on the data EPA sought, visit the Protecting Our Climate by Reducing Use of HFCs website, section VI of the Allocation Framework Rule, and section IV of the 2024 Allocation Final rule.
How are we meeting our HFC phasedown caps under the AIM Act?
EPA is in the process of verifying 2022 consumption data, but this graph depicts historic consumption levels relative to the AIM Act’s HFC phasedown schedule.
Historic HFC data relevant to the AIM Act are on EPA’s GHGRP webpage.
How does EPA allocate allowances?
EPA has established the framework and criteria for issuing allowances to specific entities. The Agency issues allowances first to application-specific allowance holders and then to the remaining allowance holders (this “general pool” includes historic producers and importers, and starting in 2024, former new market entrants). In the Allocation Framework Rule, EPA initially established provisions to allocate allowances for the six applications listed in the AIM Act for calendar years 2022 through 2025 and to remaining general pool allowance holders for calendar years 2022 and 2023.
In the 2024 HFC Allocation Rule, the Agency established an allocation methodology that applies to general pool allowance holders for calendar years 2024 through 2028. Prior to issuing calendar-year 2026 allowances, the Agency intends to finalize a rule to review the six applications currently receiving application-specific allowances and potentially renew priority allowance access for these applications beyond calendar 2025.
Through at least 2025, EPA is issuing application-specific allowances to:
- Companies that use HFCs in one of five applications listed in the AIM Act. These companies will receive application-specific allowances. The five 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
- Onboard aerospace fire suppression
- For the sixth application listed in the AIM Act, mission-critical military end uses, such as armored vehicle engine and shipboard fire suppression systems and systems used in deployable and expeditionary applications, EPA issues allowances directly to the Department of Defense.
For 2024 through 2028, EPA is issuing all other allowances to entities that produced and/or imported bulk HFCs in 2021 and/or 2022 based on the three highest years (not necessarily consecutive) of production and/or import between 2011 and 2019 for each entity. The number of allowances allocated to a company reflects the proportion of its individual high three-year average relative to the sum of all companies’ high three-year average and the number of generally available allowances. Entities that received allowances previously as a “new market entrant” will also receive allowances based on their share of allowances in 2023 at a proportionally lower level to reflect the reduction in available allowances in 2024 through 2028.
More information on EPA’s issuance of allowances, including the quantity of allowances issued each year to specific entities, is available at HFC Allowances. More information on the data EPA sought to inform company-specific allowances is available in section VII of the Allocation Framework Rule and section IV of the 2024 Allocation final rule.
Why did my general pool allowance allocation change in 2024 relative to 2023?
With the exception of application-specific allowances, which are determined each year, entity-specific production and consumption allowance levels have changed for a number of reasons. The overall number of allowances EPA can issue in 2024 is 33% lower than in 2023. EPA started with the same historic HFC activity data used to allocate 2022 and 2023 allowances. Additionally, several entity-specific changes, affect each entity’s market share.
- Revisions to previously reported HFC activity data or reporting such activity for the first time—note that EPA relied on verified data that had been reported to EPA through the electronic Greenhouse Gas Reporting Tool (e-GGRT) by December 2022
- Acquisition of other entities with historic HFC activity and/or who received allowances as new market entrants
- Changes in eligibility, such as being not actively importing or producing HFCs in 2021 and/or 2022
- For entities who received allowances as a new market entrant in 2022 and 2023, some entities were allocated allowances based on their three highest years of import between 2011 and 2019 instead of an amount proportional to their 2023 allocation
The methodology EPA used to allocate allowances is available in 40 CFR 84.9, 84.11, and 84.13.
In addition to calculating the amount of allowances each entity was allocated, EPA also finalized administrative consequences for several entities. For entities where EPA is retiring, revoking, or withholding allowances, the number of allowances available September 29, 2023, for calendar year 2024 is lower than the amount each entity was eligible for under the methodology finalized in the 2024 Allocation Rule. EPA redistributed revoked allowances to all other general pool allowance holders based on their relative three highest years of production and import. These allowances are available for use in calendar year 2024 and are in addition to the amount allocated consistent with the methodology in the 2024 Allocation Rule. For more information on the administrative consequences page, visit the Administrative Consequences Under the HFC Allocation Rule webpage.
I submitted revised data to EPA, but my submitted data totals are higher than what EPA used to calculate my allocation. Why?
EPA accepted data revisions that the Agency could verify when making allowance determinations. The Agency verified data using multiple types of data provided by the entity seeking allowances as well as independent data sets, such as import data from Customs and Border Protection. Generally speaking, if EPA could not independently corroborate revised HFC activity data, the Agency did not use it to determine an individual entity’s allocation.
For general pool allowances, EPA verified data used to calculate company allowances prior to issuing allowances for 2022 and 2023, as well as all new data reported to the Agency since October 2021. For example, some entities receiving consumption allowances reported higher import volumes in prior years than EPA could verify. In these instances, EPA used import data it could verify in either customs data provided by Customs and Border Protection or customs paperwork, invoices, and bills of lading provided by the importer.
For application-specific allowance requests, EPA also relied on data that it could verify (e.g., through invoices to document amounts purchased). In cases where an entity had reported purchasing an amount of HFCs, but did not provide any substantiating documents to verify the purchase(s), EPA treated that unverified amount as a zero for purposes of calculating allowances.
How can I get HFCs if I don’t have enough (or any) allowances?
There are multiple ways to acquire additional HFCs if you need more HFCs than you have allowances for.
Option 1: Purchase HFCs directly from a domestic supplier. Since allowances are only needed at the time of production or import, you can purchase HFCs from a domestic supplier without expending allowances.
Option 2: Seek to obtain allowances from an existing allowance holder through an allowance transfer. To obtain allowances through a transfer, you may find it helpful to reference our list of allowance holders, available at HFC Allowances to see if any of the entities listed are willing to transfer allowances to you. To determine how many allowances are needed to produce or import a specific quantity of HFCs, you can use EPA’s allowance calculator.
EPA provides the list of allowance holders for informational and transparency purposes. EPA does not broker any deals or make connections for companies. Additionally, EPA is not recommending one specific company versus another. Instead, these are private business arrangements that must be explored on your own, and any potential transfer of allowances may come at a price that is set between you and the entity transferring allowances to you. EPA does not set these prices.
An entity transferring allowances must submit the appropriate reporting form through our HFC and ODS (ozone-depleting substances) Allowance Tracking (HAWK) system (both entities must be registered in HAWK). Instructions are available to register and report through HAWK. EPA must issue a non-objection notice prior to the transfer proceeding, so ensure enough time for these steps to occur so you have sufficient allowances in your possession prior to producing or importing any HFCs.
For entities that use HFCs in one of the six applications covered by application-specific allowances, you can also receive a transfer from an allowance holder who uses HFCs in the same application. For example, if a semiconductor manufacturer wants to acquire HFC allowances, the company can acquire consumption allowances from a general pool allowance holder, or they can acquire allowances from another semiconductor manufacturer who may not need all of the allowances they were allocated. EPA notes that in 2022, a number of application-specific allowances were not used:
Application | Amount Allocated in 2022 | Percent Conferred, Transferred or Expended by the Allowance Holder |
---|---|---|
Defense Sprays | 603,579.1 | 49% |
Onboard Aerospace Fire Suppression | 56,180.4 | 24% |
Propellants in metered dose inhalers* | 1,771,040.5 | 76% |
Semiconductors | 1,580,677.2 | 61% |
Structural Composite Preformed Polyurethane Foam | 83,935.2 | 99% |
Total | 3,559,934.4 | 64% |
* Includes consumption allowances allocated to GlaxoSmithKline
Option 3: Build inventory (i.e., stockpile) in advance of when you’ll need the HFCs. This is particularly relevant for application-specific allowance holders. If you are concerned that your allocation for next year may not be high enough, consider using your unused allowances this year to build an inventory. Application-specific allowance holders can also try to acquire additional allowances from other entities who received allowances for the same application and work with suppliers to produce or import the HFCs on their behalf. Keep in mind that allowances expire on December 31 of each year and cannot be expended, transferred, or conferred after December 31 of the year for which they were issued. So, to produce or import HFCs, allowances must be used in the same calendar year for which they were allocated.
How are allowances used?
When do I expend allowances?
Allowances must be expended during the calendar year for which they were issued. To produce bulk HFCs, production and consumption allowances, or application-specific allowances, must be expended at the time of production.
To import bulk HFCs, consumption or application-specific allowances must be expended by the importer of record at the time of:
- Ship berthing for vessel arrivals
- Border crossing for land arrivals such as trucks, rail, and autos
- First point of terminus in U.S. jurisdiction for arrivals via air
These points in time may be reflected as the “Conveyance Arrival” date for shipments, which importers or their brokers with access to the Automated Broker Interface may find through an Automated Commercial Environment Cargo Manifest/In-Bond/Entry Status Query. However, regardless of the date identified in Automated Broker Interface as the “Conveyance Arrival,” it is the importer of record's obligation to ensure that it has expended the appropriate calendar year allowances in the appropriate quantity and at the appropriate time to align with regulatory requirements.
For example, the importer of record would be required to expend calendar year 2024 allowances for imports of HFCs if the vessel with the HFCs berthed at a port in the United States in 2024. The requirement to expend calendar year 2024 allowances applies even if the vessel was waiting off the coast of the United States in December 2023.
When do I need to have the allowances and file an advance notice of import?
The importer of record for the shipment needs to possess sufficient allowances at the time of filing their advance report for the amount of bulk HFCs that will be imported. The advance notice of import is due five days in advance of a border crossing for land arrivals such as trucks, rail, and autos and the first point of terminus in U.S. jurisdiction for arrivals via air. For sea arrivals, notification is due 10 days in advance of the ship berthing. The advance notice of import must be provided via a U.S. Customs and Border Protection-authorized electronic data interchange system, such as the Automated Broker Interface. A tip sheet is available for filing for HFC imports.
If an importer intends to use allowances obtained through a transfer, conferral, or Request for Additional Consumption Allowances (RACA), make sure to allow sufficient time for EPA to review and process these requests. The importer must be in possession of those allowances at the time of filing their advance report, which is either five or 10 days in advance, depending on the mode of transit for the import.
General reporting instructions can be found at HFC Allocation Rule Reporting Resources.
How do transfers and conferrals work?
When can I transfer or confer allowances?
You may transfer production or consumption allowances or confer application-specific allowances at any point after they are allocated until the allowance expires at the end of the calendar year for which it was allocated. For example, if calendar 2025 allowances are allocated on October 1, 2024, they could be transferred or conferred (for application-specific allowances only) from October 1, 2024, until December 31, 2025. Note that allowances can only be expended for production and import during the calendar year for which they are issued (i.e., 2025 allowances can only be used in 2025, even though they are allocated in the prior year). EPA encourages allowance holders, including application-specific allowance holders, to undertake transfers and conferrals early in the year and, where possible, well in advance of when bulk regulated substances would need to be produced or imported. The entity producing or importing bulk regulated HFCs must have sufficient allowances in their possession at the time of production or five days in advance for truck, rail, air, and other non-sea arrivals and 10 days in advance for sea arrivals. Failure to transfer or confer allowances early enough could result in delays in receiving HFCs.
How do I confer application-specific allowances to suppliers?
Application-specific allowance holders that are planning to confer application-specific allowances to a supplier must submit an “HFC Conferral of Allowances Report” prior to conferring allowances, as described in 40 CFR 84.31(h)(4). This report must be submitted through HAWK in the Electronic Greenhouse Gas Reporting Tool (e-GGRT). Reporting instructions can be found on the HFC Reporting Resources webpage. Both the conferrer and conferee will need to provide certification, signed by both parties, as part of this report stating that the HFCs being acquired, produced, or imported are solely for one of the six applications listed in the AIM Act and will not be resold for use in a different application or used in any other manufacturing process.
The Agency will issue a confirmation notice that the allowances were conferred, as described in page 55189 and page 55220 in the HFC Allocation Framework Rule. EPA will reduce the conferrer's balance of unexpended allowances by the quantity conferred. If EPA ultimately finds that the conferrer did not have sufficient unexpended allowances to cover the conferral or that the regulated bulk substances produced or imported with conferred allowances are used for anything other than the specific application identified in the conferee's submittal and for the application those allowances were allocated for, the conferrer and conferee may be liable for any violations of the regulations of this subpart that occur as a result of, or in conjunction with, the improper conferral.
If one company was allocated allowances and a different company under the same ownership wants to import or produce HFCs, would the companies need to transfer allowances?
Allowances can be expended by parents, subsidiaries, sister, or commonly owned companies without a transfer. The 2024 Allocation rule established requirements that entities submit an importer of record form, which was previously voluntary. If an entity receiving allowances (either allocated directly by EPA or via inter-company transfer) includes a subsidiary, entity majority owned and/or controlled by the same individual(s), and/or a “Doing Business As” (DBAs as part of the importer of record form, the corporate structure of the entity receiving allowances must be provided, and the description of the corporate structure must, at a minimum, explicitly show the relationship between the allowance holder and each subsidiary, entity majority-owned and/or controlled by the same individual(s), or DBA. An entity also would need to provide the owners, and their respective percentage of ownership, of each subsidiary, entity that is majority owned and/or controlled by the same individual(s), and DBA on the submitted form.
Will allowance transfers in one year result in a change in a company’s allowance allocation in a subsequent year?
As established in the 2024 Allocation rule, allowance transfers will not affect the number of allowances an entity is allocated each year through 2028.
How is EPA ensuring compliance?
How will EPA enforce these regulations and avoid illegal imports?
EPA has developed a robust and agile compliance and enforcement system with strong measures that prevent and identify illegal activity in the United States and ensure compliance with the obligations under the AIM Act. These measures draw from experience globally and in the United States. To prevent illegal trade in climate-damaging HFCs, EPA is coordinating with other federal agencies, in particular, U.S. Customs and Border Protection. The strong compliance and enforcement provisions in this program will help preserve the environmental and economic benefits of the HFC phasedown. The main components include:
- Administrative consequences to deter noncompliance and create pathways to address the impacts of noncompliance
- Requiring the use of container labeling
- Real-time check to confirm allowances are available at the time of import
- Prior EPA approval to import HFCs that do not require allowances (e.g., feedstocks)
- Requiring third-party auditing of companies’ recordkeeping and reporting
- Transparency of HFC production and consumption data for the general public and participants in the market, and to support enforcement and compliance efforts
What are administrative consequences?
Administrative consequences are allowance adjustments issued when EPA identifies certain activities including, but not limited to, submitting false, inaccurate, or misleading information or data, importing HFCs without expending the required number of allowances, not disclosing financial conflicts of interest or familial relationships in certain circumstances, and failing to provide required reports consistent with the regulatory requirements. The types of administrative consequences EPA can issue include retiring, revoking, or withholding the allocation of allowances, or banning an entity from receiving future allowances. More information is available on EPA’s Administrative Consequences webpage.
Can an entity expend or transfer allowances if they are subject to an administrative consequence?
Under the HFC Phasedown requirements at 40 CFR 84.35(b)(1), once EPA issues the notice of intent to take administrative consequences, that entity cannot expend the quantity of allowances subject to the administrative consequence, nor transfer or confer any of their allowances while the administrative consequence is pending.
See the Allocation Framework Rule, in particular sections VIII, IX, and X, for more information.
How is EPA addressing emissions of HFC-23?
HFC-23 is a regulated substance under the AIM Act and has the highest exchange value of any regulated substance at 14,800. HFC-23 is used in applications such as semiconductor etching and very low temperature refrigeration. HFC-23 is also unintentionally created and vented to the atmosphere during the manufacture of other fluorinated compounds. EPA has set a specific standard to which HFC-23 created on a facility line must be captured and controlled before the HFC-23 is subsequently either destroyed or captured, refined, and sold for consumptive uses.
Attestation Engagements (Audits) under the HFC Allocation Program
What type of attestation engagement is required to satisfy the auditing requirement?
The type of audit your certified public accountant (CPA) will undertake is called an “attestation engagement using agreed-upon procedures (AUP).” The CPA does their work and reports the findings without providing an opinion or conclusion. The CPA will prepare a report verifying that reporting and recordkeeping requirements were followed, consistent with regulatory requirements. The CPA’s report is provided to the EPA, which then conducts its own review to determine compliance.
When is the report due?
The report is due to the EPA by May 31 of each year.
What must be in the report?
CPAs will prepare a report identifying the applicable procedures specified in the regulations along with the corresponding findings for each procedure. The CPA’s findings must identify any instances where compared values do not agree or where specified values do not meet applicable requirements under the regulations. This is done by comparing information reported to the EPA with the entity’s data maintained consistent with the recordkeeping and reporting requirements in 40 CFR 84.31 https://www.ecfr.gov/current/title-40/section-84.31); reviewing all other reports submitted to the EPA under 40 CFR Part 84 Subpart A https://www.ecfr.gov/current/title-40/part-84/subpart-A); documenting procedures; and noting all variances. This must be done for all activity that occurred during the period January 1 – December 31, including any activities that impacted allowances. The final report should consist of (1) a summary of findings (i.e., a list of exceptions) and (2) a description of findings for each agreed upon procedure, including a list of all records reviewed.
Who is subject to the attestation requirements?
Any person producing, importing, exporting, recycling for fire suppression, and reclaiming regulated HFCs, as well as any person receiving application-specific allowances, except for persons receiving application-specific allowances for mission-critical military end uses.
Are there CPA firms that provide this service?
Regulated entities are responsible for finding a CPA to conduct the attestation engagement. Entities can ask their financial CPA for a recommendation. We are working with the national auditing association AICPA-CIMA https://www.aicpa-cima.com/home, which has informed their 350,000 members about the EPA’s attestation requirement. The EPA has also been communicating with AICPA-CIMA on the attestation requirement and expects that more CPAs will be interested now that the guidance is available and AICPA-CIMA is developing additional resources. Entities that are having difficulty identifying a CPA can contact the EPA at [email protected] to receive a list of CPAs that have indicated interest in providing this service. Please note, the EPA does not endorse, recommend, or certify any specific CPA or their services. Rather, this list is provided as a convenience to the regulated community.
Where is the guidance on this requirement?
The EPA developed guidance on the attestation engagement, along with instructions on how to do an attestation engagement, in a document called “Phasedown of Hydrofluorocarbons: Auditing of Recordkeeping and Reporting,” found on our Reporting and Recordkeeping Resources webpage in the HFC Third-Party Audit Guidance section.
What will the EPA do with the completed attestation engagement?
The EPA will review the attestation engagement and contact entities as necessary, dependent on the results of the review. If errors are identified, the EPA may request that entities confirm and correct reporting and recordkeeping data entry errors/minor mistakes. If noncompliance with the requirements is identified, the EPA will consider the appropriate next steps, which could include administrative consequences and/or enforcement actions. Finally, the attestation engagement may identify areas for improvement in how entities internally track HFC activity and develop required reports that are submitted to the EPA.
Is there an email box for questions?
All questions on attestation engagements and submittal of reports should be sent to the HFC Allocation Program help desk at [email protected].
Why is the EPA requiring attestation engagements?
The EPA is requiring attestation engagements to ensure the integrity of the HFC allocation program and to improve compliance with EPA regulations, as well as increase program accuracy. They will assist the EPA in understanding where there may be common areas of confusion among industry participants that the Agency can improve upon in subsequent rulemakings. Attestation engagements will also identify potential non-compliance with regulations, and situations that need referral for potential enforcement and/or the application of administrative consequences.
Must CPAs be certified by the EPA?
The EPA does not require additional certification and will not be providing any certification for CPAs. Because CPAs follow a code of professional conduct which requires that they act with integrity, objectivity, due care, and competence, that they fully disclose any conflicts of interest and maintain client confidentiality, and that failure to act according to this code can result in loss of license and other punishment, the Agency believes there is no need to establish its own regulations for the industry. Also, CPAs are trained to work across varied industries and understand accounting frameworks and recordkeeping obligations across sectors and have conducted thousands of attestation engagements under the Clean Air Act fuels regulations over the last 25 years.
Are there additional documents or materials that must be audited, other than what is in the guidance document?
The document offers guidance for developing attestation engagements that align with the regulatory requirements; it remains the responsibility of each third-party CPA and each regulated entity to address all applicable requirements of 40 CFR 84.33. The particular records subject to AUP engagements will differ depending on the activities the entity undertakes (e.g., records reviewed for HFC production will differ from those reviewed for HFC imports), but to ensure consistency amongst engagements and compliance with the regulatory requirements, the EPA recommends that CPAs should, at a minimum, follow the guidance.
Do reports and records for all containers need to be provided to the CPA, or just a representative sample?
The EPA does not allow representative sampling for containers. Further, representative sampling of records and reports, where allowed for in the regulations at 40 CFR 84.33 (LINK to https://www.ecfr.gov/current/title-40/chapter-I/subchapter-C/part-84/subpart-A/section-84.33#p-84.33(a) is done by the CPA after receiving the complete inventory of relevant records.
Can an attestation engagement be done remotely or must it be done on-site?
Attestation engagements can be conducted on-site or remotely.
For entities that export HFCs, is there a minimum threshold or de minimus level of activity before an entity must complete an attestation engagement?
There is no de minimus level of activity before entities have to complete an attestation engagement. If you are a producer, importer, exporter, reclaimer, fire suppressant recycler, or application-specific allowance holder, an attestation engagement is required.
What is the definition of a responsible corporate officer and responsible official?
A responsible corporate officer and responsible official mean a person who is authorized by the regulated party to make representations on behalf of, or obligate the entity as ultimately responsible for, any activity regulated under 40 CFR part 84, subpart A.
Does my inventory need to be physically audited?
All producers, importers, and exporters are required to report on end-of-year inventory of regulated HFCs. Reclaimers, fire suppressant recyclers, and application-specific allowance holders also have inventory reporting requirements. Your inventory does not need to be physically audited. The regulated entity’s records can be used instead of a physical audit.
Can the audited entity review the CPA’s report before it is submitted to the EPA?
As per common practice in agreed-upon procedures, the auditee may review the CPA’s draft report prior to the final report’s submittal to the EPA. However, the entity should not ask for procedures or findings to be changed or removed (except for factual inaccuracies which the CPA can assess if corrections to the findings are warranted). Consistent with AICPA standard AT-C 215 (https://www.aicpa-cima.com/resources/download/aicpa-statement-on-standards-for-attestation-engagements-no-19), once a procedure has been executed, the procedure and related findings are required to be reported.
What can an auditee do if the CPA identifies an error? Can the auditee revise its reports with the EPA?
If the CPA identifies an error in a previously submitted report to the EPA during review of the auditee’s documents (e.g., a quarterly report that was previously submitted to the EPA includes an erroneous value), the entity may revise and resubmit that report to the EPA (e.g., the quarterly report with an error). However, the final AUP report submitted to the EPA by the CPA may not be revised by the auditee.
What if the CPA identifies what they believe is an inconsistency, but the auditee believes is not an inconsistency?
If the auditee believes this situation has occurred and disagrees with the CPA’s draft findings (consistent with AICPA standard AT-C 215, https://www.aicpa-cima.com/resources/download/aicpa-statement-on-standards-for-attestation-engagements-no-19), the auditee can ask the CPA to add a note to the final report on their behalf that explains additional information associated with the finding (e.g., provide a reason for a discrepancy and why the auditee disagrees with the finding). Agreed-upon procedures engagements also allow for adding additional procedures (e.g., to review additional records) to confirm information reported to the EPA. The EPA will consider these notes during its review of the CPA’s final report.
How have the HFC Allocation Program requirements changed since the Allocation Framework Rule?
Revisions to the HFC Allocation Program due to the 2024 Allocation Rule were generally effective September 18, 2023, except as listed below for the laboratory testing accreditation or certification requirement.
Allowance Allocation Methodology
For calendar years 2024 through 2028 EPA is maintaining a similar methodology to the methodology previously used to calculate general pool production and consumption allowances.
- General pool allocations for historic producers and importers are based on entities' market shares derived from the average of the three highest years of production and consumption, respectively, of bulk regulated substances between 2011 and 2019.
- To be eligible to receive general pool allowances for 2024 through 2028 based on historic production and import activity, an entity must have produced or imported bulk regulated substances in 2021 or 2022 (to demonstrate activity in 2022, allowances must have been expended at the time of production or import).
- EPA will determine for each former new market entrant a stand-in high three-year average based on the number of allowances allocated in 2023.
Baselines and Annual Limits
- The consumption baseline was revised from 303,887,017 MTEVe to 302,538,316 metric tons of exchange value equivalent (MTEVe), a decrease of 1,348,701 MTEVe (about 0.4%).
- The production baseline was revised from 382,554,619 MTEVe to 382,535,439 MTEVe, a decrease of 19,180 MTEVe (about 0.005%).
- Associated changes to annual limits apply to allocations for calendar year 2024 and later years.
Imports and allowance expenditures
- The point in time that an allowance must be expended to import regulated bulk HFCs
- EPA revised language to clarify that an allowance must be expended at the time of ship berthing for vessel arrivals, border crossing for land arrivals such as trucks, rail, and autos, and first point of terminus in U.S. jurisdiction for arrivals via air.
- Advance notification of import
- The Agency shortened the advance notification reporting requirements to 5 days in advance for truck, rail, air, and other non-sea arrivals and 10 days in advance for sea arrivals.
- Who must expend allowances for import?
- EPA specified that only the importer of record can expend allowances for an import of bulk regulated substances.
- The importer of record must be in possession of allowances in the amount that will need to be expended at the time of filing their advance report.
- Any person who meets the definition of an importer will be liable unless they can demonstrate that the importer of record possessed and expended the appropriate allowances.
- Imports of blended HFCs
- EPA clarified the previously existing requirement that allowances must be expended to import bulk regulated substances, including as part of a multicomponent substance.
HFC Allocation Program Recordkeeping and Reporting
EPA revised and added requirements to a variety of recordkeeping and reporting provisions under the HFC Allocation Program.
- Specify that the importer of record must file the advance notification and quarterly reports (the advance notification may be filed by the authorized agent instead)
- Require the net and gross weight, as well as unit of mass (i.e., kilogram), for each container in the shipment in the advance notification report
- Shorten the advance notification reporting requirements from 14 days in advance to 5 days in advance for truck, rail, air, and other non-sea arrivals and 10 days in advance for sea arrivals
- Reiterate that the harmonized tariff schedule (HTS) code for the regulated substance must be used for the import of any bulk HFC, regardless of amount, i.e., whether a residual “heel” or full container (the HTS code for U.S. goods returned or containers may not be used)
- Require that certain information must be submitted by any entity anticipating being the importer of record for a shipment of bulk regulated substances by November 15 of the year prior to importing HFCs, with additional required data elements if there are subsidiaries, entities majority owned or controlled by the same individual(s), and/or Doing Business As (DBAs)
- Require reporting of the name, quantity, and recipient facility for regulated HFCs produced at one facility for transformation, destruction, or use as a process agent at another facility owned by the same entity
- Add the Internal Transaction Numbers (ITN) and Electronic Export Information (EEI) documents as required data elements for all Request for Additional Consumption Allowances (RACAs)
Sampling and Testing
EPA amended requirements related to verifying composition and specifications of bulk regulated substances offered for sale or distribution:
- Specify that previously required sampling and testing of bulk HFCs must follow certain methodologies to verify the label composition for all applications, and apply these requirements to exporters
- Require sampling and testing under specified methodology to ensure compliance with previously existing requirements concerning specifications
- Define the necessary recordkeeping requirements associated with sampling and testing, and apply these requirements to fire suppression recyclers, repackagers, and exporters
- Define “batch” and “representative sample” and clarify the relationship between these terms
- Define “laboratory testing” such that laboratories must be certified, accredited, or recognized (this provision is effective October 1, 2024)
- Require that certificates of analysis accompany all imports of bulk HFCs.
Other Revisions
EPA made the following regulatory changes based on lessons learned and current practices that have proved useful in implementing the HFC phasedown.
- Define “expend” to mean to subtract the number of allowances required for the production or import of bulk regulated substances under 40 CFR part 84 from a person's unexpended allowances
- Add more detail and specificity concerning features on all labels or marking
- Specify that no one other than the importer of record may repackage or relabel bulk regulated substances which were initially unlabeled or mislabeled (previously these requirements applied to importers repackaging initially unlabeled or mislabeled bulk regulated substances)
- Codify that allowances can be expended by parents, subsidiaries, sister, or commonly owned companies without a transfer.
What is the status of the EPA requirement to stop using single use, disposable cylinders for HFCs?
In June 2023, the U.S. Appeals Court for the District of Columbia Circuit found that the EPA had not cited adequate authority and as a result vacated the requirement. The Agency is acting consistent with the decision and is not implementing or enforcing the prohibition on filling and selling disposable cylinders from the regulatory requirements at 40 CFR 84.5(h). EPA intends to undertake a rulemaking to formally remove this requirement from the Code of Federal Regulations. Separately, EPA has proposed requirements related to disposal of single use cylinders in the recent Emissions Reduction and Reclamation rule proposed under subsection (h) of the AIM Act.
What is the status of the EPA requirement to place quick response (QR) codes on and track all cylinders containing HFCs?
In June 2023, the U.S. Appeals Court for the District of Columbia Circuit found that the EPA had not cited adequate authority and as a result vacated the requirement. The Agency is acting consistent with the decision and is not implementing or enforcing the QR code and tracking requirements for all cylinders containing HFCs found at 40 CFR 84.23. EPA intends to undertake a rulemaking to formally remove this requirement from the Code of Federal Regulations. Separately, EPA has proposed to require container tracking for HFCs that could be used in the servicing, repair, and/or installation of refrigerant-containing equipment or fire suppression equipment in the recent Emissions Reduction and Reclamation rule proposed under subsection (h) of the AIM Act.
The HFC Data Hub
Why are allowances expressed in MTEVe, but calculated production and consumption numbers are expressed in MTCO2e?
EPA allocates allowances in metric tons of exchange value equivalent, or MTEVe, based on the manner in which the program is established through the AIM Act. However, the exchange value and the 2007 IPCC Fourth Assessment Report 100-year GWP for each HFC are numerically equal, so the Agency is providing calculated production and consumption in MTCO2e for stakeholder awareness. The number provided for calculated production and consumption is numerically equal in MTEVe or MTCO2e.
Why was calculated consumption higher than calculated production in 2022?
Calculated production is equal to the amount of a regulated substance manufactured from a raw material or feedstock chemical (excluding the amount produced for transformation) minus destruction. Calculated consumption is equal to calculated production plus imports minus exports. Calculated consumption was higher than calculated production in 2022 because imports exceeded exports.
Why is the production of HFC-143a negative in the table “HFC Calculated Production and Consumption for 2022”?
Calculated production is equal to the amount of a regulated substance manufactured from a raw material or feedstock chemical (excluding the amount produced for transformation) minus destruction. More HFC-143a was destroyed than was produced in 2022 after factoring in amounts produced for transformation, resulting in the calculated production of HFC-143a being a negative value. Note that the amount destroyed in a given year can include HFCs produced or imported in that year and prior years.
Why are there negative values in the “Unused Allowances (MTEVe)” column in the HFC Consumption Allowances for 2022 table?
Negative values in the “Unused Allowances (MTEVe)” column occur when an entity has reported HFC consumption that exceeds the number of allowances available to the entity as of December 31, 2022, after factoring in amounts allocated, allowances expended, and transactions throughout the year, such as requests for additional consumption allowances and transfers. Such negative values could result in EPA pursuing administrative consequences under 40 CFR Part 84 and enforcement action.
Can companies carry over their unused allowances to the next year?
No. Allowances are valid between January 1 and December 31 of a given year. They cannot be expended, transferred, or conferred after December 31 of the year for which they were issued.
Why are application-specific allowances in their own row instead of presented by company?
At this time, EPA is not presenting individual company data on application-specific allowances expended or conferred. The Agency is evaluating options to present the data in more disaggregated forms while adequately protecting data that has been claimed or deemed to warrant confidential treatment. EPA has posted allowance use data by application for 2022 in another FAQ.
Why is EPA using the IPCC Fourth Assessment Report instead of the most recent version?
The U.S. HFC phasedown measures consumption and production weighted by exchange values assigned to each HFC in the AIM Act. These exchange values are numerically equal to the 100-year GWPs in the 2007 IPCC Fourth Assessment Report.
Why is the net supply for 2021 much higher than the net supply for 2019 and 2020?
Prior to the restriction on production and import of HFCs that started in 2022, it is likely that some entities imported and stockpiled HFCs.
3. Technology Transitions Program
General Questions on the Technology Transitions Program
What Is the Technology Transitions Program?
The Technology Transitions Program restricts the use of HFCs in sectors and subsectors where lower-GWP technologies are available, or will be available in the near term.
Is EPA restricting use of HFCs in certain technologies and when do they begin?
Yes, HFCs are potent greenhouse gases because they have GWPs that can be hundreds to thousands of times higher than carbon dioxide. Under the AIM Act, the supply of newly produced HFCs in the United States is being phased down. The Technology Transitions Program restricts use of certain higher-GWP HFCs in sectors and subsectors where lower-GWP alternatives are or will soon be available. The first restrictions begin January 1, 2025.
Do the Technology Transitions Program restrictions apply to systems or products that are currently installed or in use?
The restrictions in the Technology Transition Program apply only to new products and systems manufactured, imported, or installed after the compliance date for each subsector listed in the rule. The Technology Transitions rule does not restrict HFC use in products and systems installed and in use, or in the possession of an end-user prior to the compliance date for the relevant subsector. See the question "What is the difference between refrigeration, air conditioning, and heat pump (RACHP) products versus RACHP systems?" for more information.
Are any technologies exempt from the Technology Transitions Program restrictions?
The applications eligible for application-specific HFC allowances are exempted from restrictions under the Technology Transitions Program. In addition, the Technology Transitions restrictions on use of HFCs or blends in foam do not apply to foam used in space vehicles.
Will EPA look at other end-uses or revisit existing end-uses in the future?
Yes, EPA has the authority to develop additional restrictions on HFC use. EPA can develop restrictions in response to petitions submitted to EPA, or the Agency can initiate a rulemaking on its own.
Are other countries or states taking actions to phasedown HFCs?
A number of countries have established restrictions on the use of fluorinated greenhouse gases (F-gases) and HFCs that exceed a certain GWP limit for use in certain products and equipment, in order to reduce the global warming impact of these products. Canada, the European Union (EU), Japan, and the United Kingdom have GWP limits for F-gases and/or HFCs used in specified sectors and subsectors. In general, restrictions for products containing F-gases and/or HFCs affect refrigeration, air-conditioning, and heat pumps; aerosols; and foams sectors. EPA examined these restrictions as background in developing the GWP limit-based restrictions under the Technology Transitions Program.
Additionally, currently twelve states – California, Colorado, Delaware, Maine, Maryland, Massachusetts, New Jersey, New York, Rhode Island, Virginia, Vermont, and Washington – have laws or regulations restricting the use of HFCs for specific applications.
Do the Technology Transitions restrictions promulgated under AIM Act subpart (i) apply in Puerto Rico, Guam, U.S. Virgin Islands, and other U.S. territories?
Yes.
If state regulations differ from the Technology Transitions restrictions, which rules apply?
The AIM Act does not preempt states from adopting different restrictions that are in addition to the EPA regulations under the Technology Transition Program. In these instances, both restrictions would apply.
How do I determine what the GWP is for an HFC, HFC blend, or substitute for the purposes of this rule?
The final rule provides a methodology that outlines the process by which GWPs are calculated for the purposes of compliance with the GWP thresholds under this rule. A list of all the relevant GWP values for HFCs, HFC blends, and other substitutes referenced in the final rule may be found here.
Questions on Restrictions of HFCs in Technologies
How do I learn about restrictions by technology, application, or sector?
Several resources exist to help stakeholders identify relevant sectors, subsectors, compliance dates, and allowable substitutes.
- Technology Transitions HFC Restrictions by Sector (Online) - This online table allows users to filter to find compliance information by sector, subsector, and date. It also lists GWP limits and/or prohibited substances.
- Technology Transitions HFC Restrictions by Sector (PDF) - This fact sheet provides an overview of the rule as well as HFC restrictions and compliance date by sector, subsector, and date.
Who is subject to the restrictions in this rule?
This rule prohibits the 1) manufacture, 2) import, 3) sale (or offer for sale), 4) distribution (or offer for distribution), and 5) export of specific products. Any company engaged in those activities could be subject to the restrictions and reporting requirements of this rule. The rule also prohibits the installation of certain refrigeration, air conditioning, and heat pump systems. Any company that installs or directs the installation of such systems (e.g., the designer, or owner/operator) may be subject to the restrictions of this rule.
When do the restrictions take effect?
Manufacture and import compliance dates vary depending on the subsector, ranging from January 1, 2025, to January 1, 2028. Restriction on sales, distribution, and export of products apply three years after the sector/subsector manufacture and import compliance dates, to allow for a sell-through period of previously manufactured or imported products.
Manufacturers and importers of products and systems that use HFCs will be subject to requirements for labeling, annual reporting, and recordkeeping. The labeling requirements take effect on the same date as the manufacture and import compliance date for each subsector. The reporting and recordkeeping requirements for all subsectors covered by this rule begin on January 1, 2025. Reference the Technology Transitions HFC Restrictions by Sector and/or final rule for more detailed information.
Can EPA explain the terminology used in the Technology Transitions rule?
There are many commonly used words (“product” for example) that have particular meaning in the Technology Transitions final rule. Knowing the terminology is useful for understanding how the rule works. Certain terms, as they apply under the Technology Transitions Program, are summarized and explained here, but please consult the CFR for the actual regulatory definitions.
- Product means an item which performs a function or task and is functional upon completion of manufacturing. This includes: appliances, foams, fully formulated polyols, self-contained fire suppression devices, aerosols, pressurized dispensers, and wipes. Note: this does not include components that must be assembled into a larger system in order to function.
- Manufacture means to complete the manufacturing and assembly processes of a product (or component) such that it is ready for initial sale, distribution, or operation. Typically, this is done in a factory.
- Component generally means a piece of equipment that must be assembled into a larger system in order to function. Components are not subject to the same restrictions as “products.” Where the rule uses “specified component” (generally in the context of labeling and reporting) this means condensing units, condensers, compressors, evaporator units, and evaporators.
- System means an assemblage of separate components that typically are connected and charged on site to perform a function or task. Systems are not “manufactured” under the terminology of this rule. Rather, due to their size, complexity, or building/site design, they are “installed.” A supermarket with display cases in one area and a compressor rack in a separate area connected by refrigerant tubing is a system.
- Install means to complete a field-assembled system’s circuit, including charging with a full charge, such that the system can function and is ready for use for its intended purpose.
- Equipment is not defined in the rule but is used as a catch-all to refer to products, components, and/or systems more generally.
What is the difference between RACHP products versus RACHP systems?
The Technology Transitions final rule restricts the manufacture and import of certain refrigeration, air conditioning, and heat pump (RACHP) products and the installation of certain RACHP systems.
- A product is functional upon leaving a factory. Examples of products include window air conditioning units, refrigerators, and stand-alone ice machines. EPA is restricting the sale, distribution, and export of products containing higher-GWP HFCs three years after the manufacture/import restriction dates.
- A system is assembled from multiple components and charged on site. Examples include supermarkets with a centralized compressor room and mini-split air conditioners. Components include equipment such as compressors, condensers, and display cabinets. EPA is not restricting the manufacture, import, sale, distribution, or export of components that are used to repair existing RACHP systems.
Can I continue to use my air conditioner?
Yes, you can continue to use your air conditioner (or aerosol, or foam, or any existing products or systems covered by this rule). The Technology Transitions final rule does not limit the use of any existing product or system. This rule is forward looking and restricts new products and systems from being placed on the market or entering operation. This rule was designed specifically so that owners of refrigeration and air conditioning systems and products can continue to use and repair legacy systems throughout their useful life.
Can I repair my existing residential air conditioning, supermarket, ice rink, etc. that uses higher-GWP HFCs?
Yes, you can continue to repair your existing refrigeration, air conditioning, and heat pump system. This includes replacing a major component like a condensing unit or compressor. New components may also continue to be manufactured and imported to allow existing systems to be maintained for the length of their useful life. However, the availability of HFCs and components may lessen over time as HFCs are phased down.
Where can I get information on substitute refrigerants?
Sources of information on substitute refrigerants include the EPA’s Significant New Alternatives Policy Program, as well as the United Nations Environment Programme Ozone Secretariat’s Technology and Economic Assessment Panel (TEAP) reports.
What are the labeling requirements established by the Technology Transitions Program?
For regulated sectors and subsectors, certain information is required on labels for products, specified components, and systems that contain HFCs. The timeline for labeling products aligns with the sector-based restrictions, with requirements for certain sectors beginning January 1, 2025.
Specific labeling requirements vary based on the type of equipment, but typically include the date of manufacture, the intended HFC(s) or blend(s), the charge size, the date of charge, and/or other details. Physical labels must be in English, affixed to the outside of the product, visible and legible, displayed in a contrasting color, and able to withstand outdoor exposure, where applicable.
See the final rule for detailed information on the labeling requirements.
Do all aerosols, foams, and RACHP equipment have to be labeled?
No. Only products and equipment that contain an HFC must be labeled in accordance with this rule. Many products in these sectors do not use HFCs and do not need to be labeled. Companies may voluntarily choose to indicate on a label that it does not use HFCs.
What are the reporting requirements for the Technology Transitions Program?
For regulated sectors and subsectors, any entity that manufactures or imports products or components that use HFCs is subject to recordkeeping and reporting requirements. Covered entities will register and report electronically. Reporting requirements for all subsectors begin with 2025 data. Manufacturers and importers must report 2025 data by March 31, 2026, and annually thereafter. Reporting is not required of entities that only sell or distribute equipment or install or operate new refrigeration, air conditioning, and heat pump systems. See the final rule for detailed information on the reporting and recordkeeping requirements.
The Technology Transitions rule references the fire suppression sector. Did EPA establish any restrictions for this sector?
The use of HFCs in the fire suppression sector is not restricted in the final Technology Transitions rule. The Agency may consider additional HFC use restrictions in the future, but at this time there are no restrictions or requirements on the fire suppression sector under the Technology Transitions Program.
Are residential or household stand-alone ice makers covered by the residential refrigeration sector restrictions?
The Technology Transitions Rule inadvertently included "household ice makers" as an example of a product within the residential refrigeration subsector. EPA corrected this reference in an interim final rule that states that stand-alone residential or household ice makers are not subject to the Technology Transitions restrictions. For more information, please reference the interim final rule.
Are semiconductor manufacturers exempt from this final rule?
HFC uses that are receiving application-specific allowances consistent with 40 CFR 84.13(a), including the etching of semiconductor material or wafers and the cleaning of chemical vapor deposition chambers within the semiconductor manufacturing sector, are not covered by this rule. Other HFC-containing equipment (such as chillers or industrial process refrigeration systems) used in semiconductor manufacturing outside of processes for which application-specific allowances are provided may be subject to this rule.
Can I re-import equipment such as self-contained chillers or heavy-duty vehicles that are sent overseas for use or repair?
Yes. Privately-owned equipment (whether owned by an individual or a company) that is sent abroad can return to the United States and is not subject to the restrictions that apply to the import of used products. EPA’s restriction covers the activities of entities bringing shipments of used products into the country for subsequent sale or distribution.
Questions on Products
What is a “product” in the refrigeration, air conditioning, and heat pump sector?
Generally speaking, a product is a type of appliance with a sealed refrigerant loop that simply needs to be plugged in, mounted, or hooked to a water line, to work. For example, window air conditioning units, residential dehumidifiers, packaged terminal air conditioners, commercial freezers, and vending machines are examples of products. If you need a heating, ventilation, and air conditioning technician to assemble and/or charge with refrigerant, it’s not a product. This follows the same interpretation previously used under the Clean Air Act (e.g., Section 608) and has been used for decades.
Is a condensing unit a product? What if it is charged at the factory?
A condensing unit is not a product for purposes of the Technology Transitions Program. It is a component. Whether it is pre-charged or field charged, it must be connected to an evaporator to serve its intended purpose.
Is a chiller a product?
It depends. A chiller may be a product if all portions of the HFC refrigerant loop are connected and charged at the factory (thus requiring only connection to an electrical source and water source on site). In other instances, a chiller may be one component of the HFC refrigerant loop that is assembled on site. How it is considered under the Technology Transitions program depends on the circumstances of its design and use.
Is an ice machine a product?
It depends. Self-contained ice machines are considered products if they that have all components of the refrigeration circuit enclosed within the unit and are fully charged at the factory. Ice machines that have a refrigerant line connected to a remote condensing unit are not products.
Is a car air conditioner a product? Is a passenger car a product?
The motor vehicle air conditioner (MVAC) is a product subject to the rule. Because the MVAC is incorporated into the car, the car is subject to the same restrictions on manufacture, import, sale, and export as the MVAC itself.
Is a kitchen wine cooler a product?
Yes.
Is a thermal expansion valve a product? Is it considered under the Technology Transitions Program?
No, a thermal expansion valve is not considered a product under the Technology Transitions Program. Thermal expansion valves do not use HFCs as a refrigerant and are not subject to the restrictions in this rule.
Questions on Systems
What is a system?
A system for purposes of the Technology Transitions Program is an assemblage of separate components constituting the refrigerant loop that typically are connected and charged with refrigerant in the field. Generally speaking, if you need a heating, ventilation, and air conditioning technician to assemble and/or charge with refrigerant, it’s a system.
What are the main parts of a system?
The design of systems vary widely but all operate under the principle of using a circuit of refrigerant to transfer heat from one side of the system to another. For purposes of the Technology Transitions Program, five components are specifically identified: compressors, condensing units or condensers, and evaporator units or evaporators. Refrigerant tubing and thermal expansion valves are excluded from the requirements of the rule. Electronics, fan motors, ducts, and other parts outside the refrigerant loop are also excluded from the requirements of the rule.
Homeowner Questions on Residential Air Conditioner Split Systems
My R-410A unitary air conditioner condensing unit broke. Do I need to buy a whole new system with the lower GWP refrigerant or can I replace the faulty component?
Homeowners can maintain and repair their systems throughout the useful life of the equipment. A homeowner can replace a faulty component (e.g., condensing unit, indoor coil, other smaller parts) with a similar R-410A component. After January 1, 2025, if a whole new system is installed it must use lower GWP refrigerant.
What is a new system?
For residential air conditioner split systems, a new system would be installed in a newly constructed home. A new system would also be installed if both the condensing unit and indoor coil are replaced together. The condensing unit contains the condenser coil and compressor and the indoor coil is the evaporator.
If I leave the existing refrigerant lines but replace the condensing unit and indoor coil, is it a new system?
Yes. Refrigerant lines are generally not removed when replacing the other mechanical components of a system. Therefore, even if refrigerant lines are unchanged, replacing all the other components would result in a new system for purposes of the Technology Transitions Program.
Can I replace the condensing unit and replace the indoor coil at a later time?
Yes. Systems may be repaired over time. Factors for homeowners to consider when deciding to repair or transition to a new system using a lower-GWP refrigerant include availability of components, energy efficiency, and total maintenance costs.
I am designing a new house/addition to an existing house - what system can I install?
Any system first charged with refrigerant after January 1, 2025, (i.e., a newly installed system) must use refrigerant with a GWP less than 700. Note that the compliance date applies to the day the system is charged. The GWP limits do not apply to any new system installed before that date.
Does EPA intend to make changes to the ban on installing new residential heat pump and air conditioning systems using refrigerants with GWPs higher than 700 as of January 1, 2025, and variable refrigerant flow (VRF) systems using refrigerants with GWPs higher than 700 as of January 1, 2026?
EPA understands that for new residential construction, including both single-family and multi-family dwellings, where builders order heating and cooling equipment well in advance of knowing the exact date of installation, the imminent compliance date has raised concerns about system components that may already be in the distribution chain. On December 26, 2023, EPA published an interim final rule to address concerns regarding the January 1, 2025, installation compliance date for residential heat pump and air conditioning systems by amending the final regulation to allow for installation of higher-GWP HFC equipment manufactured or imported before January 1, 2025, to be installed until January 1, 2026. Separately, EPA published a proposed rule on June 26, 2024, to address concerns regarding the January 1, 2026, installation compliance date for variable refrigerant flow systems. The proposed rule would allow new VRF systems using HFCs with a GWP above 700 to be installed until January 1, 2027, so long as all components are manufactured or imported prior to Jan 1, 2026. For more information on both of these actions, please reference the Regulatory Actions for Technology Transitions webpage.
Original Equipment Manufacturer Questions on Residential Air Conditioner Split Systems
Note: Many questions in this section use R-410A residential air conditioner split systems as an example. The concepts presented are also applicable to commercial refrigeration systems or other refrigeration, air conditioning, and heat pump subsectors, though the dates may be different.
Can I manufacture residential air conditioner condensing units designed to use R-410A after January 1, 2025?
Yes. All parts of an R-410A residential air conditioning unit (e.g., inside unit, outside unit, line-sets) can continue to be manufactured to service existing systems.
Can I import residential air conditioner condensing units designed to use R-410A after January 1, 2025?
Yes.
Is there a date when I can no longer sell condensing units designed to use R-410A?
No. Components are not subject to the prohibitions on sale, distribution, and export.
Do condensing units manufactured or imported for servicing need to be dry-shipped or can they be charged with R-410A at the factory?
Components can be dry-shipped, fully charged, or partially charged.
What restrictions apply to an original equipment manufacturer or importer of residential air conditioning condensing units using R-410A?
Original equipment manufacturers and importers of components are subject to reporting and labeling requirements. Original equipment manufacturers and importers of products (discussed below) are subject to restrictions on manufacture, import, export, and sale, in addition to the reporting and labeling requirements.
Do I need to label equipment that was manufactured before January 1, 2025, and placed in inventory?
No. Labels are required for components and products that are manufactured or imported after January 1, 2025. Existing inventory at that date does not need to be relabeled.
Original Equipment Manufacturer Questions on Products
Note: These questions use packaged terminal air conditioners as an example. The concepts presented are also applicable to products in other refrigeration, air conditioning, and heat pump subsectors such as stand-alone retail food refrigerators or self-contained refrigerated transport equipment, as well as foams and aerosols though the dates may be different.
I manufacture packaged terminal air conditioners overseas that use R-410When must I stop importing them?
The import of R-410A residential and light commercial air conditioning products is prohibited starting January 1, 2025. Lower-GWP refrigerants would be required for air conditioners and packaged terminal air conditioners after that date.
Can I sell packaged terminal air conditioners manufactured overseas using R-410A that have been imported before January 1, 2025?
Yes. Products not meeting the new GWP limits can continue to be sold for three years after the import restriction date. Thus, packaged terminal air conditioners using R-410A may be sold, distributed, or exported until January 1, 2028.
Can I tranship products through the United States to other countries in North America?
Yes. As with bulk HFCs, products or components can be transhipped from a foreign country of origin through the United States or its territories to a second foreign country of final destination as long as the shipment does not enter U.S. commerce. A transhipment as it moves through the United States or its territories cannot be repackaged, sorted, or otherwise changed in condition.
I make packaged terminal air conditioners in the United States using R-410A. When must I stop manufacturing them?
The manufacture of R-410A residential and light commercial air conditioning products is prohibited starting January 1, 2025.
Can I continue to make packaged terminal air conditioners in the United States using R-410A provided they are exported?
No. The manufacture of packaged terminal air conditioners using R-410A is prohibited starting January 1, 2025, regardless of whether they are for the domestic or export market. Packaged terminal air conditioners using R-410A manufactured before January 1, 2025, may be sold, distributed, or exported until January 1, 2028. New packaged terminal air conditioners manufactured after January 1, 2025, must use a lower-GWP refrigerant.
I make packaged terminal air conditioners in the United States using reclaimed R-410May I continue to make them provided I only use reclaimed refrigerant?
No. The manufacture of packaged terminal air conditioners using R-410A is prohibited January 1, 2025, regardless of whether they are charged with virgin or reclaimed refrigerant.
I make packaged terminal air conditioners in the United States using R-32. How does the rule apply to me?
R-32 meets the GWP limit for the residential and light commercial air conditioner subsector and thus such products can continue to be manufactured, sold, distributed, and exported. Starting January 1, 2025, manufacturers and importers must keep records and report certain manufacturing data to EPA by March 31, 2026. Also starting January 1, 2025, manufacturers must affix a label indicating the use of an HFC.
I make refrigerators in the United States using isobutane as a refrigerant but with HFC polyurethane insulation foam. How does the rule apply to me?
Isobutane is not an HFC and thus is not subject to the restrictions of this rule. Starting January 1, 2025, an HFC blowing agent for appliance insulation foam must have a GWP less than 150. If an HFC is used as a blowing agent, starting January 1, 2025, manufacturers must keep records and report certain manufacturing data to EPA by March 31, 2026. Also starting January 1, 2025, manufacturers must affix a label indicating the use of an HFC.
I manufacture a product that uses HFCs but not as a refrigerant, propellant, or foam blowing agent. How does the rule apply to me?
Your product would not be subject to the rule. This rule prohibits the use of HFCs in specific sectors and subsectors. Products used for a purpose not covered by the rule are still allowed. For example, products using HFCs as a fire-suppression agent may continue to be manufactured, imported, exported, or sold. None of the recordkeeping, reporting, or labeling requirements would apply. Thermal expansion valves are similar products that are not subject to the rule.
Original Equipment Manufacturer Questions on Motor Vehicle Air Conditioning
What is the compliance date for the restrictions for using HFCs with a GWP above the 150 GWP threshold use in light-duty Motor Vehicle Air Conditioning (MVAC)?
Effective October 24, 2024, a regulated substance, or a blend containing a regulated substance, with a global warming potential of 150 or greater can no longer be used for Model Year 2025 and subsequent model year light-duty passenger cars and trucks (vehicles with a gross vehicle weight rating less than 8,500 lbs) that are manufactured or imported into the United States.
How does the Technology Transitions rule impact selling, purchasing, importing, or exporting used motor vehicles?
This rule does not restrict sale, purchasing, import, or export of used motor vehicles.
We understand that for the U.S. market, currently the vast majority of light-duty motor vehicle manufacturers are using HFO-1234yf as a refrigerant in their MVAC systems. Will manufacturers of light-duty vehicles that use non-HFC refrigerants including HFO-1234yf for MVAC be subject to reporting and labeling requirements established under the Technology Transitions rule?
No, only MVAC systems using HFCs are subject to these new reporting and labeling requirements. However, other requirements, including the labeling requirements established under the Significant New Alternatives Policy (SNAP) program, continue to apply to MVACs using both HFC and non-HFC refrigerants.
Distributor Questions
Note: Many questions in this section use R-410A residential air conditioner split systems as an example. The concepts presented are also applicable to commercial refrigeration systems or other refrigeration, air conditioning, and heat pump subsectors, though the dates may be different.
Can I sell residential air conditioner units using R-410A after January 1, 2025?
The sale of condensing units, indoor coils, indoor air handling units, and other parts is allowed to service legacy systems.
How do I know whether the components I distribute are going to be installed into a new system (not allowed) or to service a legacy system (allowed)?
Original equipment manufacturers and distributors of components are typically not responsible for the installation of the equipment that they sell. Generally speaking, the responsible party would be the company that installs or directs the installation of the system. This may be different for complex and custom-designed refrigeration, air conditioning, and heat pump systems such as supermarkets and industrial process refrigeration if the distributor or original equipment manufacturer is involved in the design of the system.
Do I need to label equipment that was manufactured before January 1, 2025, but held in our inventory?
No. The labeling requirements apply to original equipment manufacturers for components and products that are manufactured or imported after January 1, 2025.
Do I need to maintain records or provide reports to EPA about the equipment I sell?
The recordkeeping and reporting requirements apply to manufacturers and importers of products and the following five components: condensing units, condensers, compressors, evaporator units, and evaporators. Distributors that are not importers do not need to keep records of sales or provide reports to EPA.
Do I need allowances to import products or components containing HFCs?
No. Allowances are required for the import of bulk HFCs, not products containing HFCs.
Do I need prior authorization from EPA to import products or components containing HFCs?
No.
Technician Questions
Note: Many questions in this section use R-410A residential air conditioner split systems as an example. The concepts presented are also applicable to commercial refrigeration systems or other refrigeration, air conditioning, and heat pump subsectors, though the dates may be different.
Can I use existing R-410A components (either used or held in inventory) to build a new R-410A system after January 1, 2025?
No. No new system may be installed using HFC refrigerants about the GWP limit after the compliance date, even if the components were manufactured prior to that date.
Can I replace a broken R-410A outdoor condensing unit with one that uses a lower GWP refrigerant?
The Technology Transitions rule does not address this issue and it may be possible depending on the circumstances. EPA’s Significant New Alternatives Policy (SNAP) Program and industry standards prohibit the use of flammable or mildly flammable refrigerant such as HFC-32 or R-454B in systems that were not designed to use them. There may also be engineering and design considerations that could prevent the use of non-flammable refrigerants (e.g., pressures).
Can I replace a broken R-22 outdoor condensing unit with an R-410A condensing unit?
No. In this situation the R-22 indoor coil would not be compatible with R-410A due to the difference in pressures. R-410A is also not listed as acceptable by the SNAP Program as a retrofit for R-22 systems. Therefore, the whole system would need to be replaced, and under the Technology Transitions rule, replacement of the system triggers the GWP limit.
Questions on Supermarket Systems
Note: These questions use R-404A or R-407A supermarket systems as an example. The concepts presented are also applicable to other commercial refrigeration systems, industrial process refrigeration, or other refrigeration, air conditioning, and heat pump subsectors, though the dates may be different.
Can I replace a part or component on my R-404A or R-407A supermarket system in my store after January 1, 2027?
Yes. Stores can maintain and repair legacy systems throughout the useful life of the equipment.
Can replacement components manufactured prior to the GWP limit effective date be used for maintenance?
Replacement components, regardless of manufacture date, can be used for maintenance.
Can display cases be replaced with like product in 2028 with cases that were built in 2027 (or 2020)?
Display cases are components and can be replaced regardless of manufacture date.
Can display cases be replaced with different cases in 2028, removing three open cases and installing six cases with doors to reduce energy consumption.
More energy efficient display cases may be installed so long as the cooling capacity of the system in BTU/hr is not increased. Increasing the cooling capacity of the system triggers the requirements of a new system.
Can compressors be replaced in 2028 with compressors that were built in 2027 (or 2020) as a repair?
Replacement components, regardless of manufacture date, can be used for maintenance.
Is there a point at which replacing components triggers the GWP limits for new systems?
Yes. Replacing 75% or more of the evaporators (by number) and 100 percent of the compressor racks, condensers, and connected evaporator loads of an existing system would trigger the requirements of new systems.
Can I use compressors, condensers, evaporators, and cases with a date of manufacture prior to Dec 31, 2026, to install a new system that is subsequently charged with R-448?
The rule does not allow for the installation of new systems after the effective date that exceeds the GWP limit, regardless of the manufacture date of the components.
Can I retrofit my R-404A or R-407A supermarket system to use R-448A or R-449A after January 1, 2027?
Yes. The Technology Transitions rule does not address the retrofit of legacy systems.
Questions on Petitions to Restrict HFCs in Technologies
What are petitions?
Any person may petition EPA to restrict the use of HFCs in sectors or subsectors. Once EPA receives a petition under subsection (i), the AIM Act directs the Agency to evaluate the petition and to grant or deny the petition within 180 days of receipt. Find more information about the petition process on the Overview of the Petitions Process page.
How does EPA evaluate petitions?
EPA must make the evaluation of a petition available to the public. Petitions may be found on EPA’s Technology Transitions web site. Under subsection (i) of the AIM Act, EPA must evaluate petitions using the following factors:
- The best available data.
- The availability of substitutes for use of the HFC that is the subject of the petition, in a sector or subsector, taking into account technological achievability, commercial demands, affordability for residential and small business consumers, safety, consumer costs, building codes, appliance efficiency standards, contractor training costs, and other relevant factors, including the quantities of HFCs available from reclaiming, prior production, or prior import.
- Overall economic costs and environmental impacts, as compared to historical trends.
- The remaining phase-down period for HFCs under the allowance allocation program, if applicable.
4. Proposed Rule – Management of Certain HFCs and Substitutes under Subsection (h) of the AIM Act
General and Applicability Questions
What does this rule under subsection (h) of the AIM Act propose?
In accordance with the AIM Act, EPA is proposing regulations to control, where appropriate, certain practices, processes, or activities regarding the servicing, repair, disposal, or installation of equipment that involves HFCs or their substitutes. This proposed rule would establish an emissions reduction and reclamation program for the management of certain HFCs and their substitutes that would include provisions that apply to both new and existing equipment in certain sectors and subsectors. The proposed regulations are intended to maximize reclaiming and minimize the release of regulated substances from equipment and ensuring the safety of technicians and consumers.
Who may be affected by this proposed emissions and reclamation program?
Companies that may be affected by this rule include those that own, operate, service, repair, recycle, dispose, or install equipment containing HFCs or their substitutes, as well as those that recover, recycle, or reclaim HFCs or their substitutes. Affected companies may also include those that manufacture or sell or otherwise distribute equipment containing HFCs and their substitutes.
Can I continue to use my current appliance (e.g., residential air conditioning system)?
Yes. The proposed rule under subsection (h) would not prohibit the use of any type of appliance or equipment that contains HFCs or their substitutes.
How are ice rinks covered in the proposed rule?
Ice rinks are included in the proposed definition for “industrial process refrigeration.” Proposed provisions, including for leak repair and use of reclaimed HFCs, are the same as industrial process refrigeration.
Would technicians who have been certified under Clean Air Act Sections 608 or 609 need to be re-certified?
No. This proposed rule under subsection (h) would not require re-certification for technicians who have been previously certified under the applicable sections of the Clean Air Act (CAA). However, the proposed rule includes an Advanced Notice of Proposed Rulemaking section and requests comments on any such potential recertification or continued training requirements. Subsection (h) of the AIM Act, among other purposes, provides EPA authority to promulgate certain regulations for the purposes of ensuring the safety of technicians and consumers, and EPA intends to review comments received and consider options for potential future rulemakings.
Questions on Leak Repair
What appliances are subject to the proposed leak repair provisions?
If finalized as proposed, appliances that contain 15 pounds or more of a refrigerant that contains an HFC or a substitute for an HFC that has a GWP above 53 would be subject to the proposed leak repair requirements. These would include appliances that are used in the refrigeration, air conditioning, and heat pump sector (e.g., unitary splits, chillers, industrial process refrigeration). However, the proposed rule would exempt appliances used in the residential and light commercial air conditioning subsector.
If finalized as proposed, appliances that would be subject to the proposed leak repair requirements that contain 50 or more pounds of a refrigerant that contains an HFC or a substitute for an HFC that has a GWP above 53 would be required to comply as of the effective date of a final rule (typically 60 days after the final rule is published in the Federal Register). Appliances that contain between 15 and 50 pounds of a refrigerant that contains an HFC or a substitute for an HFC with a GWP above 53 would be required to comply as of one year after the publication of a final rule.
What types of appliances would be required to have an automatic leak detection (ALD) system installed?
EPA is proposing that commercial refrigeration or industrial process refrigeration appliances that contain 1,500 pounds or more of a refrigerant that contains an HFC or a substitute for an HFC with a GWP above 53 would be required to have an ALD system installed on the appliance. Appliances used in comfort cooling would not be required to have an ALD system installed, regardless of the charge size.
If finalized as proposed, commercial refrigeration and industrial process refrigeration appliances installed after publication of a final rule would be required to have an ALD system installed within 30 days of installation. Commercial refrigeration and industrial process refrigeration appliances installed 60 days before publication of a final rule would be required to have an ALD system installed one year after publication of the final rule.
How do the proposed leak repair provisions address equipment with multiple circuits?
The proposed leak repair provisions would apply to appliances that contain 15 pounds or more of a refrigerant that contains an HFC or a substitute for an HFC that has a GWP above 53. As proposed, the definition for “refrigerant-containing appliance” describes that for a system with multiple circuits, each independent circuit is considered a separate appliance.
If a person chooses to retrofit an appliance, do leaks need to be repaired?
Among other proposed requirements, when retrofitting an appliance, the owner or operator would be required to repair all identified leaks. As proposed, a retrofit would also require converting the current refrigerant in an appliance to one with a lower GWP.
Questions on Reclamation
What is the proposed standard for reclaimed HFCs?
The proposed rule under subsection (h) would require that reclaimed HFCs may contain no more than 15 percent newly produced (also known as virgin) HFCs, by weight. Where a reclaimed substance is a blend that contains both HFC(s) and substitute(s) for an HFC, the proposed rule only would require that the HFC portion(s) of the blend is limited to 15 percent by weight of virgin material. This rule did not propose a limit on the amount of virgin non-HFC material used in of a reclaimed HFC/HFC substitute blend or a reclaimed HFC substitute.
How many reclaimers are in the United States?
There are approximately 50 EPA-certified reclaimers currently operating in the United States. This is a long-standing nationwide network of reclaimers that can support implementation of the proposed rule and increase the quantity of HFCs reclaimed in the United States. These reclaimers currently receive recovered HFCs for reclamation from entities such as refrigeration, air conditioning, and heat pump equipment distributors, commercial users (e.g., supermarkets), scrap yards, technicians, and contractors and they distribute reclaimed HFCs back to the market through direct engagement with their customers and existing supply chains.
Which subsectors would be required to use reclaimed HFCs for the initial charge?
Beginning January 1, 2028, EPA is proposing that reclaimed HFCs be used in the initial charge of refrigerant-containing equipment in the following subsectors:
- residential and light commercial air conditioning and heat pumps;
- cold storage warehouses;
- industrial process refrigeration;
- stand-alone retail food refrigeration;
- supermarket systems;
- refrigerated transport; and
- automatic commercial ice makers.
What does EPA mean by “initial charge” related to the proposed requirements for using reclaimed HFCs?
The proposed provisions for the use of reclaimed HFCs for the initial charge of equipment in certain refrigeration, air conditioning, and heat pump (RACHP) subsectors beginning in 2028 would apply when the equipment is first charged with refrigerant. As recognized in the proposal, for some equipment, the initial charge with refrigerant occurs at the factory before the equipment is sold or distributed, while for other equipment, the initial charge occurs in the field. Regardless of whether the equipment is factory- or field-charged, equipment that would be subject to these requirements would be required to use reclaimed HFCs for the initial charge. EPA intends in this proposed rule to provide a level playing field by treating domestic and imported equipment the same.
Which subsectors would be required to use reclaimed HFCs in servicing and/or repair?
Beginning January 1, 2028, EPA is proposing that reclaimed HFCs be used in the servicing and/or repair of refrigerant-containing equipment in the following subsectors:
- stand-alone retail food refrigeration;
- supermarket systems;
- refrigerated transport; and
- automatic commercial ice makers.
Is EPA proposing requirements for using reprocessed refrigerant in the servicing of motor vehicle air conditioners (MVAC)?
Not at this time. EPA is not currently proposing requirements focused on implementing subsection (h)(2)(B) of the AIM Act for MVAC servicing facilities that currently reclaim or recycle recovered MVAC refrigerant in this rulemaking. EPA understands that under current industry practices, a variety of activities might occur once refrigerant has been recovered from an MVAC system. For example, in some situations, MVAC servicing facilities recover refrigerant from the MVAC, recycle it consistent with EPA’s regulations under Clean Air Act Section 609 and return the recycled refrigerant to the same MVAC for continued use by the same owner. As described in the proposal, EPA intends to issue proposed regulations for this sector at a later date.
Was the Technology Transitions final rule factored into the analysis on the estimated demand for reclaimed HFCs in certain RACHP subsectors that would be required to use reclaimed HFCs?
In a technical support document, EPA estimated demand for reclaimed HFCs in the proposed RACHP subsectors that would be required to use reclaimed HFCs beginning in 2028. The technical support document is available in the docket for the proposed rulemaking and is titled “Updated Draft Report – Analysis of the U.S. Hydrofluorocarbon Reclamation Market: Stakeholders, Drivers, and Practices.” The technical support document provides estimates for the covered RACHP subsectors for initial charge and servicing/repair, as applicable. As noted in the document, the analysis and estimates do not take into account potential impacts from the Technology Transitions rule under subsection (i) of the AIM Act. The requirements under subsection (i) were not yet finalized when EPA conducted the analysis for estimated demand, and thus were not taken into consideration. EPA may consider updating this draft report in the development of any final rule.
Questions on Fire Suppression
What are the proposed requirements for equipment in the fire suppression sector?
The proposed rule under subsection (h) would establish requirements for the servicing, repair, disposal, or installation of fire suppression equipment containing HFCs to minimize releases of HFCs. EPA is proposing that recycled HFCs be used for the initial charge or servicing and/or repair of fire suppression equipment, and additional provisions for technician training in the fire suppression sector.
Starting January 1, 2025, the proposed rule would require that the initial charge and the servicing and/or repair of fire suppression equipment, including both total flooding systems and streaming applications, must be done with recycled HFCs.
What are the proposed requirements for recordkeeping and reporting for the fire suppression sector?
EPA is proposing certain requirements for recordkeeping and reporting for the fire suppression sector. Specifically, EPA is proposing that the covered entities report annually by February 14 of each year, covering the prior year's activity from January 1 through December 31:
- The quantity of material (the combined mass of regulated substance and contaminants) by regulated substance broken out by sold, recovered, recycled, and virgin for the purpose of installation of new equipment and servicing of fire suppression equipment;
- The total mass of each regulated substance broken out by sold, recovered, recycled, and virgin; and
- The total mass of waste products sent for disposal, along with information about the disposal facility if waste is not processed by the reporting entity.
Relevant reporting entities that would be covered under this proposed requirement include entities that perform first fill of equipment, service (e.g., recharge) equipment, and/or recycle regulated substances, such as equipment manufacturers, distributors, agent suppliers or installers that recycle regulated substances. EPA is proposing that these records related to the fire suppression sector be maintained for three years.
What are the proposed training requirements for the fire suppression sector?
The proposed rule would require that applicable entities provide training regarding HFC emissions reduction, starting January 1, 2025. EPA is proposing this as a one-time training requirement. The proposed training requirements would be applicable to fire suppression technicians who service, repair, install, or dispose of fire suppression equipment containing HFCs.
Questions on Cylinders and Container Tracking
What are the proposed requirements for disposable cylinders?
EPA is not proposing to prohibit the use of disposable cylinders for HFCs. The proposed rule under subsection (h) would require that disposable cylinders that contain HFCs and that have been used for the servicing, repair, or installation of refrigerant-containing equipment or fire suppression equipment must be sent to an EPA-certified reclaimer or a fire suppressant recycler. Further, EPA is proposing to require that these entities (i.e., reclaimers and fire suppressant recyclers) must remove all HFCs, including any remaining amount after the cylinders are considered empty for servicing, repair, and installation purposes (i.e., the heel), prior to the disposal of these cylinders. EPA is proposing a compliance date of January 1, 2025, for these requirements.
How would the proposed tracking system for containers of certain HFCs work?
The proposed rule under subsection (h) would establish a container tracking system for containers of certain HFCs. EPA is proposing to require machine-readable tracking identifiers [e.g., quick-response (QR) codes, or another type of identifier] on all containers of HFCs, whether used neat or in a blend, that could be used for the servicing, repair, or installation of refrigerant-containing equipment or fire suppression equipment. This would apply to both refillable and disposable cylinders. Any entity that produces, imports, reclaims, recycles for fire suppression uses, repackages, or fills into a container HFCs, reclaimed HFCs, or recycled HFCs would be required to register in the tracking system to generate machine-readable tracking identifiers. Any entity that purchases, sells, or distributes HFCs, or offers HFCs for sale or distribution, would also be required to register in the tracking system to be able to update the movement of such HFCs.
Questions on Resource Conservation and Recovery Act (RCRA) Refrigerant Recycling Alternative Standards
What are the proposed changes to the RCRA hazardous waste standards for ignitable spent refrigerants?
EPA is proposing alternative RCRA hazardous waste requirements for certain substitute refrigerants that exhibit the hazardous characteristic of ignitibility in order to encourage recycling and decrease the potential for releases of ignitable spent refrigerants. The proposed changes would exclude certain HFCs and non-HFC substitute refrigerants from certain hazardous waste requirements if they are sent to an EPA-certified reclaimer under Clean Air Act (CAA) section 608 and meet the other requirements of the alternative standards.
Is there a separate Federal Register Notice for the proposed changes to the RCRA hazardous waste standards?
There is no separate notice for the proposed regulatory changes for RCRA. Section IV.G of the preamble and the proposed RCRA regulatory language for 40 CFR parts 261, 262, 266, 270, and 271, describe the entirety of the RCRA proposed changes. If finalized as proposed, the new alternative RCRA standard for ignitable spent refrigerants that are recycled for reuse would be codified in 40 CFR part 266 subpart Q.
Which refrigerants would be affected by the proposed RCRA alternative standards, if finalized?
EPA is proposing to limit the alternative standards to lower flammability substitutes (i.e., Class 1, 2 and 2L under ASHRAE 34). As proposed, higher flammability refrigerants (i.e., Class 3) would continue to be subject to all applicable requirements of 40 CFR parts 262 through 270 when recovered (i.e., removed from an appliance and stored in an external container) and/or disposed of. RCRA regulation of spent refrigerants is triggered by the hazardous characteristic of ignitability. The RCRA ignitability characteristic does not list specific chemicals; however, in general, refrigerants with a flammability Class 2 or 3 under ASHRAE 34 are expected to be ignitable under RCRA, and even refrigerants that do not exhibit the characteristic of ignitability as a virgin material could become ignitable with use.
What requirements would reclaimers need to meet to accept ignitable spent refrigerants under the proposed RCRA alternative standards? Would these reclaimers need to get RCRA permits?
If the rule is finalized as proposed, current CAA Section 608-certified reclaimers would not need a RCRA permit, as long as the requirements of the rule are met. Refrigerant reclaimers that accept ignitable spent refrigerants would have two additional requirements (beyond their existing CAA obligations) under the new alternative RCRA standards: (1) no speculative accumulation (page 88 FR 72275), and (2) emergency preparedness and response (page 88 FR 72276).
Is there a weight threshold or limit required to trigger the proposed RCRA alternative standards?
There is no minimum weight threshold for the proposed RCRA alternative standards, and, if the rule is finalized as proposed, the RCRA alternative standards explicitly would apply to Very Small Quantity Generator waste (page 88 FR 72276).
How would collectors and distributers of ignitable spent refrigerants be affected by the proposed RCRA alternative standards?
Collectors and distributers of ignitable spent refrigerants would have no additional obligations under the proposed RCRA standards beyond their current obligations under the CAA. Please reference the proposed regulatory language at 40 CFR 266.602 (page 88 FR 72311).
How would the proposed RCRA standards apply to incidental releases of refrigerants?
EPA considers incidental releases of spent refrigerant that occur during the maintenance, service, and repair of appliances subject to CAA section 608 (which would include venting from appliances of refrigerants that are exempt from the venting prohibition under 40 CFR 82.154(a)), generally not to be disposal of a hazardous waste under RCRA. (88 FR 72274) The venting prohibition under CAA section 608 and its implementing regulations continues to apply, except for certain refrigerants in specified end-uses that are explicitly exempt from the venting prohibition per 40 CFR 82.154(a).