f/EPA Protecting our Climate by Reducing Use of Hydrofluorocarbons December 2022 https://www.epa.gov/ciimate-hfcs-reduction FACT SHEET Proposed Rule - Phasedown of Hydrofluorocarbons: Restrictions on the Use of Certain Hydrofluorocarbons under Subsection (i) of the American Innovation and Manufacturing Act The American Innovation and Manufacturing (AIM) Act was enacted on December 27, 2020. The AIM Act authorizes EPA to address hydrofluorocarbons (HFCs) in three main ways: phasing down their production and consumption, maximizing reclamation and minimizing releases from equipment, and facilitating the transition to next-generation technologies through sector-based restrictions. This proposed rule focuses on the third area - the transition to alternatives through sector-based restrictions. About HFCs HFCs are potent greenhouse gases (GHGs) intentionally developed as replacements for ozone-depleting substances (ODS) in the refrigeration and air conditioning, aerosols, fire suppression, and foam blowing sectors. They have global warming potentials (GWPs; a measure of the relative climate impact of a GHG) that can be hundreds to thousands of times greater than that of carbon dioxide (CO2). The AIM Act directs EPA to phase down the production and consumption of HFCs by 85% by 2036. The U.S. phasedown is consistent with the schedule in the Kigali Amendment to the Montreal Protocol, which is a global agreement to phasedown HFCs that the United States joined on October 31, 2022. A global HFC phasedown is expected to avoid up to 0.5 degrees Celsius of global warming by 2100. American consumers are expected to benefit from the transition to environmentally safer alternatives and more energy-efficient cooling technologies. What Does This Rule Propose? Consistent with the AIM Act, EPA is proposing to restrict the use of certain higher-GWP HFCs in aerosols, foams, and refrigeration, air conditioning, and heat pump products and equipment. The proposed restrictions are listed by sector and subsector in Table 1 and Table 2 at the end of this document. The proposed rule would prohibit manufacture and import of products containing restricted HFCs by January 1, 2025, in most cases, and would prohibit the sale, distribution, and export of products containing restricted HFCs a year later, which in most cases would be January 1, 2026. The AIM Act includes provisions for the public to petition EPA to initiate a rulemaking that restricts the use of HFCs. EPA has granted 12 petitions and partially granted one petition ------- requesting restrictions on the use of HFCs in various sectors and subsectors. The AIM Act directs EPA to finalize a rule within two years after the date on which the Agency grants a petition. This proposed rulemaking addresses all petitions that EPA has granted thus far. In addition, this proposal includes a description of how EPA intends to implement certain aspects of the program, such as the processing of petitions to restrict the use of HFCs under subsection (i) of the AIM Act. To support compliance with the proposed prohibitions on the use of HFCs in specific sectors and subsectors, EPA is proposing labeling, reporting, and recordkeeping requirements for companies that import, manufacture, sell, or offer for sale products using HFCs. What Sectors and Subsectors Are Covered by the Proposed Action? Are Certain Applications Exempt? EPA is restricting HFC use in products and equipment in the aerosol; foam; and refrigeration, air conditioning and heat pump sectors. These proposed restrictions are summarized in Tables 1 and 2 below. The proposed restrictions would not apply to any product that receives an application-specific HFC allowance under subsection (e)(4)(B) of the AIM Act. As such, this proposed action does not restrict use of HFCs used in the following: • As a propellant in metered dose inhalers; • In the manufacture of defense sprays; • In the manufacture of structural composite preformed polyurethane foam for marine use and trailer use; • Etching of semiconductor material or wafers and the cleaning of chemical vapor deposition chambers within the semiconductor manufacturing sector; • Mission-critical military end uses; and • Onboard aerospace fire suppression. Where Are HFCs Used? In the United States, HFCs are primarily used in refrigeration and air-conditioning equipment in homes, commercial buildings, industrial operations, refrigerated transport, and motor vehicle air conditioning. Smaller amounts are used in foam products, aerosols, fire protection systems, and solvents. The figure below shows estimated amounts of U.S. HFC consumption for 2019 by sector. 2 ------- U.S. HFC Consumption (2019) by MMTC02eq ¦ Mobile AC ¦ Commercial AC Commercial Refrigeration ¦ Domestic Refrigeration Residential AC ¦ T ransport Refrigeration \ ¦ Aerosols ¦ Solvents Foams ¦ Fire Extinguishing Source: U.S. EPA, April 2016. EPA Report EPA-430-R-16-002. Who May Be Affected by This Proposed Rule? You may be potentially affected by this rule if you manufacture, import, export, package, sell or otherwise distribute products that use or are intended to use HFCs, such as refrigeration and air-conditioning systems, heat pumps, foams, and aerosols. How Can I Comment on This Proposed Rulemaking? EPA will accept comments on this proposal for 45 days after publication in the Federal Register and will hold a virtual public hearing after publication in the Federal Register. For more information on the rule and how to comment, as well as information on the virtual public hearing, please visit our website: https://www.epa.gov/climate-hfcs-reduction What Other Actions is EPA Taking under the AIM Act? In addition to this proposed rulemaking, EPA has issued a final regulation that established a framework for phasing down HFC production and consumption by 85% by 2036 through an allowance allocation program, "Phasedown of Hydrofluorocarbons: Establishing the Allowance Allocation and Trading Program Under the American Innovation and Manufacturing Act" (86 FR 55116, October 5, 2021). In November 2022, EPA issued a proposed rule that would establish the methodology for allocating allowances to produce or consume HFCs for allowances allocated beginning in 2024, "Phasedown of Hydrofluorocarbons: Allowance Allocation Methodology for 2024 and Later Years," (87 FR 66372, November 3, 2022). Additionally, EPA has begun to develop a rulemaking under subsection (h) of the AIM Act, "Management of Regulated Substances," to maximize reclamation and reduce emissions of HFCs and their 3 ------- substitutes. For more information on regulatory actions under the AIM Act, please visit https://www.epa.gov/climate-hfcs-reduction. What Are the Benefits of This Proposed Rule? EPA estimates that the proposed rule, if finalized as written, would result in significant GHG emissions reductions benefits while providing savings to American consumers and industry through energy efficiency gains and lower cost alternatives. The proposal would result in cumulative GHG emissions reductions ranging from 134 to 903 MMTCCbe through 2050. EPA estimates that the cumulative net benefits of this proposed action are between $13.1 billion to $56.3 billion from 2025 through 2050. • The GHG emissions reductions from this proposed action would provide between $5 and $51 billion in climate benefits. • The proposed rule would also save U.S. industry and consumers between $5 to $8 billion from 2025 through 2050 as a result of improved energy efficiency in refrigeration, air conditioning, and heat pump products and lower cost alternatives. The benefits noted here are in addition to those already accounted for in the HFC phasedown and described in the Proposed Rule, "Phasedown of Hydrofluorocarbons: Allowance Allocation Methodology for 2024 and Later Years (87 FR 66372)". 4 ------- Table 1: Proposed GWP Limit Restrictions on HFCs by Sector and Subsector Sectors and Subsectors Proposed GWP Limit Compliance Date Refrigeration, Air Conditioning, and Heat Pumps Industrial process refrigeration systems with refrigerant charge capacities of 200 pounds or greater 150 January 1, 2025 Industrial process refrigeration systems with refrigerant charge capacities less than 200 pounds 300 January 1, 2025 Industrial process refrigeration, high temperature side of cascade systems 300 January 1, 2025 Retail food refrigeration - stand-alone units 150 January 1, 2025 Retail food refrigeration - refrigerated food processing and dispensing equipment 150 January 1, 2025 Retail food refrigeration - supermarket systems with refrigerant charge capacities of 200 pounds or greater 150 January 1, 2025 Retail food refrigeration - supermarket systems with refrigerant charge capacities less than 200 pounds charge 300 January 1, 2025 Retail food refrigeration - supermarket systems, high temperature side of cascade system 300 January 1, 2025 Retail food refrigeration - remote condensing units with refrigerant charge capacities of 200 pounds or greater 150 January 1, 2025 Retail food refrigeration - remote condensing units with refrigerant charge capacities less than 200 pounds 300 January 1, 2025 Retail food refrigeration - remote condensing units, high temperature side of cascade system 300 January 1, 2025 Vending machines 150 January 1, 2025 Cold storage warehouse systems with refrigerant charge capacities of 200 pounds or greater 150 January 1, 2025 Cold storage warehouse systems with refrigerant charge capacities less than 200 pounds 300 January 1, 2025 Cold storage warehouse, high temperature side of cascade system 300 January 1, 2025 Ice rinks 150 January 1, 2025 5 ------- Sectors and Subsectors Proposed GWP Limit Compliance Date Automatic commercial ice machines - self- contained with refrigerant charge capacities of 500 grams or lower 150 January 1, 2025 Transport refrigeration - intermodal containers 700 January 1, 2025 Residential refrigeration systems 150 January 1, 2025 Chillers - industrial process refrigeration 700 January 1, 2025 Chillers - comfort cooling 700 January 1, 2025 Residential and light commercial air conditioning and heat pump systems 700 January 1, 2025 Residential and light commercial air conditioning - variable refrigerant flow systems 700 January 1, 2026 Residential dehumidifiers 700 January 1, 2025 Motor vehicle air conditioning - light-duty passenger vehicles 150 Model year 2025 Motor vehicle air conditioning - medium-duty passenger vehicles 150 Model year 2026 Motor vehicle air conditioning - heavy-duty pick- up trucks 150 Model year 2026 Motor vehicle air conditioning - complete heavy- duty vans 150 Model year 2026 Motor vehicle air conditioning - nonroad vehicles 150 Model year 2026 Foam blowing Polystyrene - extruded boardstock and billet 150 January 1, 2025 Rigid polyurethane and polyisocyanurate laminated boardstock 0 January 1, 2025 Rigid polyurethane - slabstock and other 150 January 1, 2025 Rigid polyurethane - appliance foam 150 January 1, 2025 Rigid polyurethane - commercial refrigeration and sandwich panels 150 January 1, 2025 Rigid polyurethane - marine flotation foam* 150 January 1, 2025 Rigid polyurethane - low-pressure, two- component spray foam 150 January 1, 2025 Rigid polyurethane - high-pressure two- component spray foam 150 January 1, 2025 6 ------- Sectors and Subsectors Proposed GWP Limit Compliance Date Rigid polyurethane - one-component foam sealants 150 January 1, 2025 Flexible polyurethane 0 January 1, 2025 Integral skin polyurethane 0 January 1. 2025 Polystyrene - extruded sheet 0 January 1, 2025 Polyolefin 0 January 1, 2025 Phenolic insulation board and bunstock 150 January 1, 2025 Aerosols Aerosol products* 150 January 1, 2025 *EPA is proposing an exemption for certain applications as long as they are receiving application-specific allowances under subsection (e)(4)(B) of the AIM Act, including: as a propellant in metered dose inhalers; in the manufacture of defense sprays; and in the manufacture of structural composite preformed polyurethane foam for marine use and trailer use. 7 ------- Table 2: Proposed Prohibited Substance Restrictions on HFCs by Sector and Subsector Sectors and Subsectors Prohibited HFCs Compliance Date Refrigeration, Air Conditioning, and Heat Pumps Automatic commercial ice machines - self-contained with refrigerant charge capacities more than 500 grams R-404A, R-507, R-507A, R-428A, R-422C, R- 434A, R-421B, R-408A, R-422A, R-407B, R- 402A, R-422D, R-421A, R-125/R-290/R- 134a/R-600a (55/1/42.5/1.5), R-422B, R-424A, R-402B, GHG-X5, R-417A, R-438A, R-410B, R-407A, R-410A, R-442A, R-417C, R-407F R- 437A, R-407C, RS-24 (2004 formulation), HFC- 134a January 1, 2025 Automatic commercial ice machines - remote R-404A, R-507, R-507A, R-428A, R-422C, R- 434A, R-421B, R-408A, R-422A, R-407B, R- 402A, R-422D, R-421A, R-125/R-290/R- 134a/R-600a (55/1/42.5/1.5), R-422B, R-424A, R-402B, GHG-X5, R-417A, R-438A, R-410B January 1, 2025 Transport refrigeration - road systems R-404A, R-507, R-507A, R-428A, R-422C, R- 434A, R-421B, R-408A, R-422A, R-407B, R- 402A, R-422D, R-421A, R-125/R-290/R- 134a/R-600a (55/1/42.5/1.5), R-422B, R-424A, R-402B, GHG-X5, R-417A, R-438A, R-410B January 1, 2025 Transport refrigeration - marine systems R-404A, R-507, R-507A, R-428A, R-422C, R- 434A, R-421B, R-408A, R-422A, R-407B, R- 402A, R-422D, R-421A, R-125/R-290/R- 134a/R-600a (55/1/42.5/1.5), R-422B, R-424A, R-402B, GHG-X5, R-417A, R-438A, R-410B January 1, 2025 Additional Resources Protecting Our Climate by Reducing Use of HFCs: https://www.epa.gov/climate-hfcs-reduction Greenhouse Gas Reporting Program: https://www.epa.gov/ghgreporting/fluorinated-greenhouse- qas-emissions-and-supplies-reported-qhqrp Contact EPA: spdcomment@epa.gov Office of Air and Radiation (6205A) December 2022 8 ------- |