The U.S. Environmental Protection Agency (EPA) regulates the production and importing of gases used in air conditioning and refrigeration units. This includes, but is not limited to chlorofluorocarbons (CFCs), hydrochlorofluorocarbons (HCFCs), hydrofluorocarbons (HFCs), and hydrofluoroolefins (HFOs).
CFC and HCFC Phaseout
From the early 1990's to present, there has been and continues to be a transition of gases used in air conditioning and refrigeration. The driving force was originally the Montreal Protocol (ratified by the United States in 1988), a global agreement to protect the Earth's ozone layer by phasing out the chemicals that deplete it. The Clean Air Act (CAA) in the United States includes Title VI, which is specifically designed to align with the Montreal Protocol's goals and regulations for phasing out ozone depleting substances (ODS).
In the U.S., ODS are regulated as class I or class II controlled substances. Class I substances, such as chlorofluorocarbons (CFCs) and halons, have a higher ozone depletion potential and have been phased out; with a few exceptions, this means no one can produce or import class I substances. Common examples of CFCs include R-11, R-12, R-13, R-113, R-114, and R-115. Class II substances are all hydrochlorofluorocarbons (HCFCs), which were transitional substitutes for many class I substances. New production and import of most HCFCs were phased out as of 2020 and they were mostly replaced with hydrofluorocarbons (HFCs). Commonly used hydrofluorocarbons (HFCs) include R-134a, R-410A, R-32, and R-125. These are synthetic gases primarily used as refrigerants in air conditioning and refrigeration systems, as well as in other applications like fire suppression and foam blowing.
HFC Phaseout
Although HFCs served as a temporary solution to ozone layer depletion, they have a high global warming potential (GWP), a measure of how much heat a greenhouse gas traps in the atmosphere compared to carbon dioxide (CO2) and contributes to climate change. The climate impact of HFCs can be hundreds to thousands of times greater than carbon dioxide.
The parties to the Montreal Protocol meet once a year to make decisions aimed at ensuring the successful implementation of the agreement. These include adjusting or amending the Protocol. An amendment (Kigali Amendment), called for the phase-down of hydrofluorocarbons (HFCs) in 2016. The Kigali Amendment aims to reduce global HFC production and consumption by more than 80% over the next 30 years. In the United States, the American Innovation and Manufacturing (AIM) Act of 2020, mirrors the Kigali Amendment's goals by authorizing the Environmental Protection Agency to phase down HFCs. This legislation allows the U.S. to fulfill its obligations under the international agreement and potentially benefit from the global transition to more sustainable technologies.
American Innovation and Manufacturing (AIM) Act
The AIM Act authorizes EPA to address hydrofluorocarbons (HFCs) by providing new authorities in three main areas:
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Phase down the production and consumption of listed HFCs by 85% in a stepwise manner by 2036.
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Manage HFCs and their substitutes by maximizing reclamation of HFCs and minimizing releases of HFCs from equipment.
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Facilitate the transition to next-generation technologies through sector-based restrictions.
AIM applies to importers of bulk HFCs. HFCs contained in a manufactured product or system such as an appliance or aerosol do not require expenditure of allowances to be imported. Importers of bulk HFC must apply for HFC allowances. An allowance represents the privilege granted to a company to produce or import HFCs in a specific individual year. One allowance is equal to one metric ton of carbon dioxide equivalent.
Entities will need to expend allowances to produce or import bulk HFCs. Producing HFCs will require expending both production allowances and consumption allowances. Importing HFCs will require expending only consumption allowances. A third category of allowances called "application-specific allowances" can be used to either produce or import HFCs for use in the six applications listed in the AIM Act.
EPA has developed a calculator to help allowance holders understand how allowances translate to quantities of various HFCs they intend to produce or import.
The AIM Act directs EPA to issue allowances by October 1 for use in the following year and they are only valid between January 1 and December 31 of a specific year. Allowances may not be banked or carried over to another year. Allowance holders may transfer their allowances to other entities seeking to produce and/or import HFCs.
Importers of bulk HFCs are subject to the following reporting and recordkeeping requirements:
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Importer of Record Form: Previously voluntary, importers must now submit an importer of record form to EPA every year an entity anticipates being the importer of record.
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Required Quarterly Reporting: The importer of record or their authorized agent must submit relevant quarterly reports to EPA.
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Import Notification: The importer of record or their authorized agent must submit advance notification for imports of bulk HFCs.
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Annual Third-party Auditing: Arrange for annual third-party auditing of specified reports submitted to EPA.
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Recordkeeping: Maintenance of records for five years.
HFC Alternatives
EPA's Significant New Alternatives Policy (SNAP) program identifies and approves acceptable substitutes for HFCs in various applications, including refrigeration, air conditioning, and aerosols.
Alternatives to HFCs (hydrofluorocarbons) include natural refrigerants like ammonia, carbon dioxide, and hydrocarbons, as well as synthetic options like hydrofluoroolefins (HFOs). These alternatives aim to reduce the significant global warming impact of HFCs, which are potent greenhouse gases. Specific examples include:
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R-1234yf is a refrigerant used in many modern vehicle air conditioning systems. It's a newer, more environmentally friendly alternative to the older R-134a refrigerant. R-1234yf has a significantly lower global warming potential (GWP) than R-134a.
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R744 (carbon dioxide) is a natural refrigerant gaining traction in refrigeration and air conditioning systems due to its low environmental impact, despite its high operating pressures. It has a Global Warming Potential (GWP) of 1, meaning it doesn't contribute to ozone depletion and has a minimal impact on climate change compared to other refrigerants.
For more information, see SNAP Substitutes by Sector.
More Resources
Overview of Requirements for Importers of Hydrofluorocarbons (HFCs) .Fact sheet covering rules for importing HFCs.
Frequent Questions on the Phasedown of Hydrofluorocarbons. This page features responses to common questions on the phasedown of hydrofluorocarbons (HFCs) under the American Innovation and Manufacturing (AIM) Act.
The Significant New Alternatives Policy Program (SNAP), established under the Clean Air Act, allows the EPA to evaluate substitutes for ozone-depleting substances and hydrofluorocarbons (HFCs) targeted by the American Innovation and Manufacturing Act (AIM).
Protecting Our Climate by Reducing Use of HFCs. Links to proposed rules, technology transitions, grants, and additional information.
Enforcement: The EPA designated enforcement work associated with the AIM Act to be managed by the national Office of Enforcement and Compliance Assurance (OECA). To protect the program's integrity, ensure mandated reductions of HFCs, and maintain a level playing field for regulated companies, EPA pursues entities that seek to import or produce HFCs without the required allowances, that submit false or misleading information, or that fail to report required information under the AIM Act and its implementing regulations.
