US | EPA Adopts Regulations Mandating Phasedown of HFCs

In the October 5, 2021 edition of the Federal Register, the US Environmental Protection Agency (EPA) adopted regulations mandating the phasedown of hydrofluorocarbons (HFCs) by 85 percent before the year 2036.

The EPA is issuing several production and consumption allowances that producers and importers of HFCs must hold in quantities equal to the amount of HFCs produced or imported. This rule is effective on November 4, 2021.

The EPA is issuing regulations to implement certain provisions of the American Innovation and Manufacturing Act (the Act). To establish the allowance allocation program, this rulemaking does the following:

  • Determines the HFC production and consumption baselines, from which allowed production and consumption will decrease consistent with the statutory phasedown schedule
  • Provides an initial approach to allocating calendar-year allowances and allowing for the transfer of those allowances
  • Establishes provisions for the international transfer of allowances
  • Establishes recordkeeping and reporting requirements

Additionally, the regulations establish provisions to support implementation, compliance with, and enforcement of, statutory and regulatory requirements under the Act’s phasedown provisions.

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Source

EPA Final Rule, Phasedown of Hydrofluorocarbons: Establishing the Allowance Allocation and Trading Program Under the American Innovation and Manufacturing Act, 86 FR 55116 (October 5, 2021)

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