EPA proposes rule to advance transition to safer, more efficient heating and cooling technologies
Latest proposal under the bipartisan AIM Act promotes US development and manufacturing of climate-safe HFC alternatives, saving billions in costs.
The U.S. Environmental Protection Agency (EPA) announced a proposed rule under the American Innovation and Manufacturing (AIM) Act to advance the transition to more efficient heating and cooling technologies by restricting the use of super-polluting hydrofluorocarbons (HFCs) in certain products and equipment where more climate friendly alternatives are available. The proposed rule, which would apply both to imported and domestically manufactured products, will help ensure a level playing field for American businesses that are already transitioning to next-generation, safer alternatives and more energy efficient technologies.
The bipartisan AIM Act authorizes EPA to limit or prohibit the use of HFCs in specific sectors and to phase in these requirements over time as appropriate. The proposed rule addresses petitions granted in October 2021 and would restrict the use of climate-damaging HFCs used in certain foams, aerosol products, and refrigeration, air conditioning, and heat pump equipment beginning in 2025. The HFCs that are being restricted under this proposal are those that have higher global warming impacts.
Under the AIM Act, the Biden-Harris Administration is implementing a national HFC phasedown to achieve a 40% reduction below historic levels starting in 2024 and an 85% reduction by 2036. Today’s proposed rule will help guide this overall phasedown by accelerating the transition away from HFCs in areas where substitutes are available or being introduced, helping to unlock additional climate benefits and savings. EPA estimates that this action would provide greenhouse gas emissions reductions of up to 35 million metric tons of carbon dioxide equivalent (MMTCO2e) per year, equivalent to annual fuel consumption of roughly 7.5 million gasoline-powered cars. The cumulative savings for industry and consumers—which largely result from improved energy efficiency and lower cost refrigerants—is estimated to be up to $8 billion through 2050.
The proposal is in response to petitions from companies, industry associations, non-governmental environmental organizations, and 12 states and the District of Columbia that requested that EPA restrict the use of certain HFCs in products and equipment across 40 subsectors. EPA developed the proposed restrictions after reviewing petitions, holding stakeholder workshops, and considering an extensive list of factors as specified in the AIM Act, including the availability of substitutes, safety, and the overall economic and environmental impacts.
To ensure a level playing field for companies complying with the AIM Act’s national HFC phasedown, EPA has also established robust enforcement mechanisms, drawing from experience globally with illegal HFC trade and with past attempts to illegally introduce ozone-depleting substances into the U.S. market. Companies now need allowances for producing or importing HFCs.
On October 31, 2022, the United States ratified the Kigali Amendment to the Montreal Protocol, an international treaty that calls for a global HFC phasedown and could avoid up to half a degree Celsius of global warming by the end of the century. EPA is conducting active and ongoing oversight of the AIM allocation and reporting program to ensure parties are reporting their import and production of HFCs accurately, and to ensure that EPA is making appropriate decisions regarding HFC allocation volumes for importers and producers each year.
The bipartisan AIM Act provides the tools that allow the United States to implement a national HFC phasedown to comply with the Kigali Amendment, as well as provisions to help transition technologies away from HFCs and manage the use of HFCs through maximizing their reclamation and minimizing their release. EPA is planning to issue a proposed rule to address the management of HFCs and their substitutes next year.
EPA will accept comments on this proposal for 45 days after publication in the Federal Register and hold a public hearing.