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U.S. WILL DRAMATICALLY CUT CLIMATE-DAMAGING GREENHOUSE GASES WITH NEW PROGRAM
AIMED AT CHEMICALS USED IN AIR CONDITIONING, REFRIGERATION





September 23, 2021

Contact Information
EPA Press Office (press@epa.gov)

WASHINGTON (Sept. 23, 2021) — Today, the United States Environmental Protection
Agency (EPA) issued a final rule establishing a comprehensive program to cap and
phase down the production and consumption of climate-damaging hydrofluorocarbons
(HFCs) in the United States. HFCs are potent greenhouse gases commonly used in
refrigeration and air conditioning equipment, as well as foams and many other
applications. A global phasedown of HFCs is expected to avoid up to 0.5 °C of
global warming by 2100. This final rule will phase down the U.S. production and
consumption of HFCs by 85% over the next 15 years, as mandated by the American
Innovation and Manufacturing (AIM) Act that was enacted in December 2020.

In addition to implementing this landmark phasedown program, the Biden-Harris
Administration is marshalling a whole-of-government approach to prevent the
illegal trade, production, use or sale of HFCs; support the transition to HFC
alternatives through research and purchasing; and encourage the reclamation and
recycling of HFCs from retired equipment, thus reducing further HFC production.

“Today EPA is taking a significant step forward to advance President Biden’s
bold agenda to tackle the climate crisis,” said EPA Administrator Michael S.
Regan. “Cutting these climate ‘super pollutants’ protects our environment,
strengthens our economy, and demonstrates that America is back when it comes to
leading the world in addressing climate change and curbing global warming in the
years ahead.”

AIM Act to Foster American Innovation as Phasedown Begins

The AIM Act is among the most significant environmental laws enacted by the U.S.
Congress in recent years – co-sponsored and passed with strong, bipartisan
support. Backed by a broad coalition of industry and environmental groups, the
law not only phases down HFCs, but it also ushers in the use of more climate
friendly and energy efficient alternatives that will save consumers money while
protecting the environment. American companies are at the forefront of
developing HFC alternatives and the technologies that use them, and the AIM Act
provides these companies additional opportunities to continue to innovate.

Saving Money, Reducing Emissions

EPA estimates that the present value of the cumulative net benefits of this
action is more than $272 billion from 2022 through 2050, and that the rule will
yield cumulative compliance savings for industry. In 2036 alone, the year the
final reduction step is made, this rule is expected to prevent emissions of the
equivalent of 171 million metric tons of carbon dioxide (CO2) – roughly equal to
the annual greenhouse gas emissions from one out of every seven passenger
vehicles registered in the United States. The total emission reductions of the
rule from 2022 to 2050 are projected to amount to the equivalent of 4.6 billion
metric tons of CO2 – nearly equal to three years of U.S. power sector emissions
at 2019 levels.

As extremely powerful greenhouse gases, HFCs accelerate climate change, which
threatens society with costly health and environmental impacts such as floods,
wildfires, drought, and increasingly severe weather events.  EPA conducted an
environmental justice analysis that determined overall reductions in greenhouse
gas emissions from this rule would benefit populations that may be especially
vulnerable to damages associated with climate change, such as the very young,
elderly, low-income, disabled, and indigenous populations.

Interagency Task Force to Prevent Illegal HFCs

To help ensure the integrity of the program and a rigorous and timely phasedown,
EPA will work with the Department of Homeland Security to prevent the illegal
import and trade of HFCs through an interagency task force. The task force will
be led by experts from U.S. Customs and Border Protection, U.S. Immigration and
Customs Enforcement, Homeland Security Investigations and EPA to detect, deter,
and disrupt any attempt to illegally import HFCs into the United States.  This
coordination builds on and is informed by the agencies’ long experience
collaborating to prevent illegal imports, including imports of ozone-depleting
substances and vehicles that fail to comply with Clean Air Act standards.

Broad Coalition Backs Super Pollutant Phasedown

The phasedown rule and whole-of-government approach have received support from a
broad coalition of stakeholders, including environmental groups, industry
leaders, Members of Congress, and state and local partners across the country.

“Today marks an important leap forward in our efforts to tackle the climate
crisis and kick start our economy. Putting the AIM Act into action will create
good-paying jobs for the American people and help position our nation for a
brighter future. This is a slam dunk, plain and simple: phasing down HFCs will
support American leadership in manufacturing and innovation, bring down global
temperatures, strengthen our economy, and help save our planet,” said Senate
Committee on Environment and Public Works Chairman Tom Carper.

“For years, critics have claimed that acting on climate would weaken our
economic growth. Today’s announcement is proof positive that they were wrong. I
was proud to author the bipartisan American Innovation and Manufacturing
Leadership (AIM) Act in the House to tap into the powerful opportunity for
growth that a U.S.-led transition away from HFCs could bring,” said Congressman
Paul Tonko, Chairman of the Energy & Commerce Subcommittee on Environment and
Climate Change. “This legislation and today’s rule position U.S. manufacturers
as worldwide leaders in the green economy of the future while also being the
most significant action taken by Congress to reduce greenhouse gas emissions in
a decade. Simply put, it’s a win-win. I want to thank Administrator Regan and
the EPA staff for prioritizing this rulemaking to get the AIM Act up and
running. My colleagues and I stand ready to help ensure the successful
implementation of this critical climate legislation.”

“The Biden Administration’s action today is a critical step in our ongoing
efforts to combat the catastrophic climate crisis by phasing down
hydrofluorocarbons, an extremely potent greenhouse gas,” said House Energy and
Commerce Committee Chairman Frank Pallone, Jr.  “Congress took a major step in
passing the AIM Act in the end-of-year omnibus package last year. I’m very
pleased with the Biden Administration’s robust implementation of the law, and
the whole-of-government approach it is taking to lead the global transition to
cleaner alternatives.”

“The U.S. Climate Alliance welcomes the EPA’s finalization of this rule to phase
down highly-potent HFCs across the country. National standards will ensure all
communities have access to higher quality products, and that we are giving U.S.
industry the best opportunity to innovate and lead the global transition to HFC
alternatives,” said U.S. Climate Alliance Policy Director Taryn Finnessey.
“Alliance states have been leading the charge in reducing HFC emissions in
recent years and now have a strong federal partner in this push. It’s a win for
jobs, a win for our economy and it will help us achieve our bold state and
federal climate goals.”

“We have repeatedly seen how environmental crime can fundamentally undermine the
best efforts to protect our climate," said Avipsa Mahapatra, Climate Campaign
Lead at the Environmental Investigation Agency. "This is a groundbreaking effort
to fight crime in climate pollutants by combining the latest technology with the
broad cooperation necessary to deliver on U.S. climate goals.”

“This rule is the critical first milestone in the implementation of the AIM Act,
which became law in December 2020. We applaud the EPA and the entire Biden
Administration for its effort to meet the first statutory deadline for its
promulgation,” said Karen Meyers, Chairman of the Board for the Alliance for
Responsible Atmospheric Policy and Vice President of Rheem Manufacturing.

“We look forward to reviewing the final allocation rule in full detail and
working with EPA to achieve a smooth phasedown as it also initiates efforts on
user sector rules and refrigerant management,” said Kevin Fay, Executive
Director for the Alliance for Responsible Atmospheric Policy.

“AHRI and its member manufacturers that produce and use hydrofluorocarbon (HFC)
refrigerants are pleased that the EPA finalized the allocation rule on time, as
required by the American Innovation and Manufacturing Act.  Predictability is a
very important aspect of the manufacturing process, and this timely rule ensures
that our member companies are aware of this regulatory terrain for the coming
years,” said Air-Conditioning, Heating & Refrigeration Institute President & CEO
Stephen Yurek. “This rule is a critical step in the 15-year industry-supported
process of phasing down HFCs and represents a win for both the climate and the
American economy.   We are hopeful that the administration will soon submit the
Kigali Amendment to the Montreal Protocol – the treaty that underpins the AIM
Act – to the United States Senate and continue the process of putting the United
States on record with the majority of the world’s nations in support of this
global phase down.”

The HFC Allocation final rule establishes the HFC production and consumption
baseline levels from which reductions will be made, establishes an initial
methodology for allocating HFC allowances for 2022 and 2023, and creates a
robust, agile, and innovative compliance and enforcement system. EPA intends to
use the approach established through this rulemaking to issue allowances for
2022 by October 1, 2021 and plans to revisit the approach for subsequent years
in a later rulemaking. In addition to establishing a general HFC allowance pool
and a set aside pool (e.g., for new market entrants), the rule outlines how EPA
is issuing allowances for specific applications listed in the AIM Act that the
agency was directed to provide allowances for, such as mission-critical military
applications.

For more information on this rule, visit:
https://www.epa.gov/climate-hfcs-reduction/final-rule-phasedown-hydrofluorocarbons-establishing-allowance-allocation

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Last updated on September 23, 2021