The US Environmental Protection Agency (EPA) has announced a 40 per cent cut in the production and consumption of HFC refrigerants from 2024 through to 2028.
The rule aligns with the bipartisan American Innovation and Manufacturing (AIM) Act’s goals to reduce the production and consumption of these climate-damaging chemicals by 85 per cent by 2036 and help avoid up to 0.5 °C of global warming by 2100.
The final rule builds on the success of the 10 per cent phasedown step implemented for 2022 and 2023, by establishing a similar allowance methodology to provide regulatory certainty to industry and stakeholders.
Joe Goffman, principal deputy assistant administrator of EPA’s Office of Air and Radiation, said the latest cut is a critical next step in the government’s ambitious plan to phase down super pollutants.
“The US HFC phasedown program, bolstered by domestic innovation to develop alternative chemicals and equipment, is paving the way for the United States to tackle climate change and strengthen global competitiveness,” he said.
Ali Zaidi, White House national climate advisor, said President Joe Biden has brought together a broad coalition of American manufacturers to work on next-generation technologies across refrigeration and HVAC systems without contributing to global warming.
Air Conditioning, Heating and Refrigeration Institute (AHRI) president & CEO, Stephen Yurek, said this latest allocation rule is a critical step in the implementation of the AIM Act schedule for phasing down hydrofluorocarbon refrigerants.
“Our industry appreciates the work of the EPA and the timely issuance of this rule, as we prepare for the next HFC reduction step-down next January,” he said.
The United States began its phasedown on 1 January, 2022, with a reduction of HFC production and imports to 10 per cent below historic baseline levels. Since then, allowances are needed to import and produce HFCs.
HFC allowances for calendar year 2024 will be allocated by 29 September, 2023. The phasedown schedule under this program is consistent with the schedule laid out in the Kigali Amendment to the Montreal Protocol, which the United States ratified in October 2022.
In addition to setting up an allowance allocation program, the HFC Phasedown Program has established robust enforcement mechanisms to ensure a level playing field for US companies complying with the phasedown requirements.
Since January 2022, the Interagency Task Force on Illegal HFC Trade, co-led by EPA and the Department of Homeland Security, has prevented illegal HFC shipments equivalent to more than 1 million metric tons of carbon dioxide (CO₂) at the border, which is equivalent to the CO2 emissions from over 206,000 homes’ electricity use for one year.
EPA is planning two additional regulatory actions under the AIM Act in 2023. The first is a final rule placing restrictions on the use of HFCs in certain sectors to facilitate sector-based transitions to alternative chemicals, and the second is a proposed rule establishing certain requirements for the management of HFCs and HFC substitutes in equipment, such as air conditioners.