Hydrochlorofluorocarbons (HCFCs) and Hydrofluorocarbons (HFCs)
HCFC and HFC Phase-Out under the American Innovation and Manufacturing Act and Montreal Protocol
The American Innovation and Manufacturing Act authorizes EPA to issue regulations HFCs by phasing down production and consumption with allowance allocation programs, restricting use of HFCs to facilitate the transition to other technologies, and regulating to maximize reclaiming and minimize releasing HFCs.
In addition to the American Innovation and Manufacturing Act, the Montreal Protocol requires phasing out ozone-depleting HCFCs. According to the Protocol, the United States must reduce consumption and production of HCFCs to be no more than 10% of the established cap by January 1, 2015.
For more information, EPA published a notice of EPA’s FAQs on the phasedown of hydrofluorocarbons. 89 Fed. Reg. 85,535 (Oct. 28, 2024).
On February 7, 2025, H.J. Res. 38, a joint resolution of disapproval under the Congressional Review Act, was introduced in the House. If passed, it would void EPA's final rule on phasing down hydrofluorocarbons under the American Innovation and Manufacturing Act. 89 Fed. Reg. 82,682 (Oct. 11, 2024). This is identical to H.J. Res. 30, introduced on January 24, but has two additional co-sponsors. A parallel joint resolution, S.J. Res. 14, was also introduced in the Senate on February 5, 2025.
Second Trump Administration (2025-2028)
On February 7, 2025, H.J. Res. 38, a joint resolution of disapproval under the Congressional Review Act, was introduced in the House. If passed, it would void EPA's final rule on phasing down hydrofluorocarbons under the American Innovation and Manufacturing Act. 89 Fed. Reg. 82,682 (Oct. 11, 2024). This is identical to H.J. Res. 30, introduced on January 24, but has two additional co-sponsors. A parallel joint resolution, S.J. Res. 14, was also introduced in the Senate on February 5, 2025.
Biden Administration (2021–2024)
On September 16, 2024, EPA published a proposed rule which “proposes the framework for how EPA will assess whether to renew the eligibility of applications to receive application-specific allowances; decisions to renew or not renew each of the six applications that currently receive application-specific allowances; revisions to the Technology Transitions regulations as relevant to the specific applications under review; a procedural process for submitting a petition to designate a new application as eligible for priority access to allowances; narrow revisions to the methodology used to allocate allowances to application-specific allowance holders for calendar years 2026 and beyond; and limited revisions to existing regulations.” 89 Fed. Reg. 75,898 (Sept. 16, 2024).
On October 11, 2024, EPA finalized a rule which “establishes an emissions reduction and reclamation program for the management of hydrofluorocarbons” and establishes “alternative Resource Conservation and Recovery Act standards for certain ignitable spent refrigerants being recycled for reuse.” 89 Fed. Reg. 82,682 (Oct. 11, 2024).
- Final Rule, 89 Fed. Reg. 82,682 (Oct. 11, 2024)
- Proposed Rule, 88 Fed. Reg. 72,216 (Oct. 19, 2023)
On October 24, 2023, EPA published a final rule which “restricts the use of hydrofluorocarbons in specific sectors or subsectors in which they are used; establishes a process for submitting technology transitions petitions; establishes recordkeeping and reporting requirements” among other things. 88 Fed. Reg. 73,098 (Oct. 24, 2023). (See Semiconductor Equipment and Materials International v. EPA in “Litigation” below.)
- Final Rule, 88 Fed. Reg. 73,098 (Oct. 24, 2023)
- Proposed Rule, 87 Fed. Reg. 76,738 (Dec. 15, 2022)
On July 20, 2023, EPA finalized a rule establishing a methodology for allocating HFC production and consumption allowances for 2024 to 2028. 88 Fed. Reg. 46,836 (July 20, 2023). The rulemaking was designed to implement the Kigali Amendment to the Montreal Protocol to phase down HFCs following the Senate’s bipartisan ratification in September of 2022. (See IGas Holdings v. EPA in “Litigation” below.)
- Final Rule, 88 Fed. Reg. 46,836 (July 20, 2023)
- Proposed Rule, 87 Fed. Reg. 66,372 (Nov. 3, 2022)
On October 14, 2021, EPA granted ten petitions and partially granted an eleventh to restrict the use of hydrofluorocarbons in the refrigeration, air conditioning, aerosols, and foam sectors. 86 Fed. Reg. 57,141 (Oct. 14, 2021). EPAs notice of determination to grant and partially grant these petitions begins a rulemaking process for each use of HFCs. Under the American Innovation and Manufacturing Act of 2020, EPA now has two years to issue final rules, each of which must take effect within one year of their publication.
On October 5, 2021, EPA finalized a rule establishing an allowance trading program for the phase out of HFCs. 86 Fed. Reg. 55,116 (Oct. 5, 2021). (See Heating, Air-Conditioning, & Refrigeration Distributors International v. EPA in “Litigation” below.)
- Final Rule, 86 Fed. Reg. 55,116 (Oct. 5, 2021)
- Proposed Rule, 86 Fed. Reg. 27,150 (May 19, 2021)
Litigation
Challenge to October 2023 Rule - Semiconductor Equipment and Materials International v. EPA
On December 22, 2023, industry groups filed a petition for review of EPA’s October 24, 2023 final rule in the D.C. Circuit Court of Appeals. The consolidated case has been held in abeyance pending the outcome of agency proceedings related to the rule at issue.
Challenge to July 2023 Rule - IGas Holdings v. EPA
On September 14, 2023, industry groups filed a petition for review of EPA’s July 20, 2023 final rule in the D.C. Circuit Court of Appeals. The consolidated case has been briefed and oral argument was held on October 8, 2024.
Challenge to 2021 Rule - Heating, Air-Conditioning, & Refrigeration Distributors International v. EPA
On December 2, 2021, industry groups filed a petition for review of EPA's October 5, 2021 final rule in the D.C. Circuit Court of Appeals. On June 20, 2023, the court vacated aspects of the rule.