Phasedown of HFCs: Establishing the Allowance Allocation and Trading Program under the AIM Act
On September 23, 2021, EPA Administrator Michael S. Regan signed a Final Rule titled, “Phasedown of Hydrofluorocarbons: Establishing the Allowance Allocation and Trading Program under the American Innovation and Manufacturing Act.” This final rule is the first regulation under the American Innovation and Manufacturing (AIM) Act of 2020 to address the production and consumption of hydrofluorocarbons (HFCs), which are potent greenhouse gases commonly used in refrigerators, air conditioners, and many other applications. This final rule establishes the HFC production and consumption baselines from which reductions will be made and codifies the phasedown schedule, establishes an initial methodology for issuing allowances for 2022 and 2023, establishes a methodology for trading allowances while requiring an offset of allowances, and creates a robust, agile, and innovative compliance and enforcement system.
An advance copy of the final rule is available at https://www.epa.gov/climate-hfcs-reduction/final-rule-phasedown-hydrofluorocarbons-establishing-allowance-allocation, which will be updated once the rule is published in the Federal Register. To view the public docket, after the final rule is published in the Federal Register, visit www.regulations.gov and search for docket number EPA-HQ-OAR-2021-0044.