EPA Delays Implementation of Some Elements of HFC Phase-Down

On December 26, 2023, the Environmental Protection Agency (EPA) issued an interim final rule to delay the implementation of some elements of the ongoing phase-out of hydrofluorocarbons (HFCs) until January 1, 2026.

The American Innovation and Manufacturing Act of 2020 (AIM Act) authorizes EPA to address the environmental impacts of HFCs in several ways, including by restricting the use of HFCs in certain sectors and subsectors. On October 24, 2023, EPA issued regulations to implement certain provisions of the AIM Act by setting regulations to phase out the use of HFCs. Among many other restrictions, this rule barred the use of certain HFCs with particularly high global warming potentials in the residential and light commercial air-conditioning and heat pump sector, with initial restrictions beginning on January 1, 2025.

Following the October rulemaking, stakeholders notified EPA that "builders order equipment in this subsector well in advance of installation, often even before the installation date is known, and that the final rule's compliance date would potentially strand a significant amount of inventory." To avoid stranding inventory "intended for new residential construction," EPA's interim final rule "allows one additional year, until January 1, 2026, solely for the installation of new residential and light commercial air conditioning and heat pump systems using components manufactured or imported prior to January 1, 2025."

This interim final rule is effective on December 26, 2023. EPA is accepting comments on this rule until February 9, 2024.