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 by Congress on December 27, 2020. The AIM Act authorizes EPA to address hydrofluorocarbons (MFCs) 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-global warming potential (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 Act directs EPA to finalize a rule within two years after the date on which the Agency grants a petition. This proposed rulemaking, addresses the granted petitions. In addition to addressing the granted petitions, this proposal also 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 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. Where are HFCs used? In the United States, HFCs are primarily used in refrigeration and air-conditioning equipment in homes, commercial buildings, and industrial operations and in air conditioning in vehicles and refrigerated transport. Smaller amounts are used in foam products, aerosols, fire protection systems, and solvents. U.S. HFC Consumption (2019) by MMTC02eq ¦ Mobile AC ¦ Commercial AC Commercial Refrigeration ¦ Domestic Refrigeration Residential AC ¦ Transport Refrigeration ¦ Aerosols m 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 (AC) systems, heat pumps, foams, and aerosols. You may also be potentially ------- affected by this action if you produce, import, export, destroy, use as a feedstock, reclaim, package, or otherwise distribute HFCs. 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. The date, time, and other relevant information for the virtual public hearing will be available at https://www.epa.gov/climate-hfcs-reduction. For more information on the rule and how to comment, please visit: 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 establishing 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," regarding the management of HFCs and their 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 and would also provide savings to American consumers and industry. EPA estimates that this proposed rule would: • Result in annual emissions reductions of approximately 5 to 35 million metric tons of carbon dioxide equivalent (MMTCCbe) from 2025 through 2050. • Yield cumulative emissions reductions ranging from 134 to 903 MMTCCbe from 2025 through 2050. • Provide between $5 and $51 billion in climate and other benefits to the United States beyond those provided by the HFC phasedown during the same time period. • Save U.S. industry and consumers up to $8 billion from 2025 through 2050. These savings result from improved energy efficiency and lower cost refrigerants. ------- 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 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 ------- 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 ------- Sectors and Subsectors Proposed GWP Limit Compliance Date Rigid polyurethane - high-pressure two- component spray foam 150 January 1, 2025 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 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- January 1, 2025 ------- Sectors and Subsectors Prohibited MFCs Compliance Date 424A, R-402B, GHG-X5, R-417A, R-438A, R-410B 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 Protectina Our Climate bv Reducina Use of HFCs: httDs://www.epa.aov/climate-hfcs-reduction Greenhouse Gas Reportina Proaram: httDsV/www.eDa.aov/ahareDortina/fluorinated-areenhouse- aas-erriissions-and-supplies-reported-ahcirp B ^ i Contact EPA: spdcomment(0)epa,aov 0% Printed on 100% recycled/recyclable paperwitha minimum 50% post-consumer waste using vegetable-based inks. Office of Air and Radiation (6205T) December 2022 ------- |