Phasedown of Hydrofluorocarbons: Review and Renewal of Eligibility for Application-Specific Allowances

ENVIRONMENTAL PROTECTION AGENCY <CFR>40 CFR Part 84</CFR> <DEPDOC>[EPA-HQ-OAR-2024-0196; FRL-10782-01-OAR]</DEPDOC> <RIN>RIN 2060-AV98</RIN> <SUBJECT>Phasedown of Hydrofluorocarbons: Review and Renewal of Eligibility for Application-Specific Allowances</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Environmental Protection Agency (EPA). <HD SOURCE="HED">ACTION:</HD> Notice of proposed rulemaking. <SUM> <HD SOURCE="HED">SUMMARY:</HD> The U.S. Environmental Protection Agency is undertaking this rulemaking to assess the eligibility of six applications to receive priority access to allowances allocated pursuant to the American Innovation and Manufacturing Act of 2020. This rulemaking proposes the framework for how EPA will assess whether to renew the eligibility of applications to receive application-specific allowances; decisions to renew or not renew each of the six applications that currently receive application-specific allowances; revisions to the Technology Transitions regulations as relevant to the specific applications under review; a procedural process for submitting a petition to designate a new application as eligible for priority access to allowances; narrow revisions to the methodology used to allocate allowances to application-specific allowance holders for calendar years 2026 and beyond; and limited revisions to existing regulations. EPA is also proposing to authorize an entity to produce regulated substances for export. Lastly, EPA is proposing certain confidentiality determinations for newly reported information if this rulemaking is finalized as proposed. </SUM> <EFFDATE> <HD SOURCE="HED">DATES:</HD> Comments must be received on or before October 31, 2024. Any party requesting a public hearing must notify the contact listed below under <E T="02">FOR FURTHER INFORMATION CONTACT</E> by 5 p.m. Eastern Daylight Time on September 23, 2024. If a virtual public hearing is held, it will take place on or before October 1, 2024 and further information will be provided at <E T="03">https://www.epa.gov/climate-hfcs-reduction.</E> </EFFDATE> <HD SOURCE="HED">ADDRESSES:</HD> The U.S. Environmental Protection Agency (EPA) has established a docket for this action under Docket ID No. EPA-HQ-OAR-2024-0196. All documents in the docket are listed on the <E T="03">https://www.regulations.gov</E> website. Although listed in the index, some information is not publicly available, <E T="03">e.g.,</E> Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, is not placed on the internet and will be publicly available only in hard-copy form. Publicly available docket materials are available electronically through <E T="03">http://www.regulations.gov</E> or in hard copy at the EPA Docket Center, Room 3334, WJC West Building, 1301 Constitution Avenue NW, Washington, DC. The Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Public Reading Room is (202) 566-1744, and the telephone number for the EPA Docket Center is (202) 566-1742. <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> Michelle Graff, U.S. Environmental Protection Agency, Stratospheric Protection Division, telephone number: 202-564-5387; or email address: <E T="03">graff.michelle@epa.gov.</E> You may also visit EPA's website at <E T="03">https://www.epa.gov/climate-hfcs-reduction</E> for further information. </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> Throughout this document, whenever “we,” “us,” “the Agency,” or “our” is used, we mean EPA. Acronyms and abbreviations that are used in this rulemaking that may be helpful include: <EXTRACT> <FP SOURCE="FP-2">2-BTP—2-bromo-3,3,3-trifluoropropene</FP> <FP SOURCE="FP-2">AAGR—Average Annual Growth Rate</FP> <FP SOURCE="FP-2">AES—Automated Export System</FP> <FP SOURCE="FP-2">AIM Act—American Innovation and Manufacturing Act of 2020</FP> <FP SOURCE="FP-2">AHRI—Air-Conditioning, Heating, and Refrigeration Institute</FP> <FP SOURCE="FP-2">APU—Auxiliary Power Unit</FP> <FP SOURCE="FP-2">ASHRAE—American Society for Heating, Refrigerating, and Air-Conditioning Engineers</FP> <FP SOURCE="FP-2">ASA—Application-Specific Allowance</FP> <FP SOURCE="FP-2">CAA—Clean Air Act</FP> <FP SOURCE="FP-2">CBI—Confidential Business Information</FP> <FP SOURCE="FP-2">CBP—U.S. Customs and Border Protection</FP> <FP SOURCE="FP-2"> CF <E T="52">3</E> I—Trifluoroiodomethane </FP> <FP SOURCE="FP-2">CFR—Code of Federal Regulations</FP> <FP SOURCE="FP-2">CGMP—Current Good Manufacturing Practice</FP> <FP SOURCE="FP-2">CHIPS Act—Creating Helpful Incentives to Produce Semiconductors Act of 2022</FP> <FP SOURCE="FP-2"> ClF <E T="52">3</E> —Chlorine Trifluoride </FP> <FP SOURCE="FP-2"> CO <E T="52">2</E> —Carbon Dioxide </FP> <FP SOURCE="FP-2">COVID—Coronavirus Disease</FP> <FP SOURCE="FP-2">CVD—Chemical Vapor Deposition</FP> <FP SOURCE="FP-2">DFARS—Defense Federal Acquisition Regulation Supplement</FP> <FP SOURCE="FP-2">DOD—U.S. Department of Defense</FP> <FP SOURCE="FP-2">DOJ—U.S. Department of Justice</FP> <FP SOURCE="FP-2">EEI—Electronic Export Information</FP> <FP SOURCE="FP-2">EV—Exchange Value</FP> <FP SOURCE="FP-2">EVe—Exchange Value Equivalent</FP> <FP SOURCE="FP-2">EPA—U.S. Environmental Protection Agency</FP> <FP SOURCE="FP-2">FAA—Federal Aviation Administration</FP> <FP SOURCE="FP-2">FAR—Federal Acquisition Regulation</FP> <FP SOURCE="FP-2">FDA—U.S. Food and Drug Administration</FP> <FP SOURCE="FP-2">FIFRA—Federal Insecticide, Fungicide, and Rodenticide Act</FP> <FP SOURCE="FP-2">FSTOC—Fire Suppression Technical Options Committee</FP> <FP SOURCE="FP-2">FTOC—Flexible and Rigid Foams Technical Options Committee</FP> <FP SOURCE="FP-2">FR—Federal Register</FP> <FP SOURCE="FP-2">GHG—Greenhouse Gas</FP> <FP SOURCE="FP-2">GWP—Global Warming Potential</FP> <FP SOURCE="FP-2">HCFO—Hydrochlorofluoroolefin</FP> <FP SOURCE="FP-2">HFC—Hydrofluorocarbon</FP> <FP SOURCE="FP-2">HFIB—Hexafluoroisobutylene</FP> <FP SOURCE="FP-2">HFO—Hydrofluoroolefin</FP> <FP SOURCE="FP-2">ICAO—International Civil Aviation Organization</FP> <FP SOURCE="FP-2">ICR—Information Collection Request</FP> <FP SOURCE="FP-2">IPCC—Intergovernmental Panel on Climate Change</FP> <FP SOURCE="FP-2">ITN—Internal Transaction Number</FP> <FP SOURCE="FP-2">Kg—Kilogram</FP> <FP SOURCE="FP-2">MCMEU—Mission-Critical Military End Uses</FP> <FP SOURCE="FP-2">MCTOC—Medical and Chemicals Technical Options Committee</FP> <FP SOURCE="FP-2">MDI—Metered Dose Inhaler</FP> <FP SOURCE="FP-2">MT—Metric Ton</FP> <FP SOURCE="FP-2">MTEVe—Metric Tons of Exchange Value Equivalent</FP> <FP SOURCE="FP-2">NAICS—North American Industry Classification System</FP> <FP SOURCE="FP-2"> NF <E T="52">3</E> —Nitrogen Trifluoride </FP> <FP SOURCE="FP-2">ODP—Ozone Depletion Potential</FP> <FP SOURCE="FP-2">ODS—Ozone-Depleting Substances</FP> <FP SOURCE="FP-2">OMB—U.S. Office of Management and Budget</FP> <FP SOURCE="FP-2">PFC—Perfluorocarbon</FP> <FP SOURCE="FP-2">PII—Personally Identifiable Information</FP> <FP SOURCE="FP-2">PRA—Paperwork Reduction Act</FP> <FP SOURCE="FP-2">PU—Polyurethane</FP> <FP SOURCE="FP-2">RACA—Requests for Additional Consumption Allowance</FP> <FP SOURCE="FP-2">RFA—Regulatory Flexibility Act</FP> <FP SOURCE="FP-2">RIA—Regulatory Impact Analysis</FP> <FP SOURCE="FP-2">RSV—Respiratory Syncytial Virus</FP> <FP SOURCE="FP-2">SCPPU—Structural Composite Preformed Polyurethane</FP> <FP SOURCE="FP-2"> SF <E T="52">6</E> —Sulfur Hexafluoride </FP> <FP SOURCE="FP-2">SiN—Silicon Nitride</FP> <FP SOURCE="FP-2"> SiO <E T="52">2</E> —Silicon Dioxide </FP> <FP SOURCE="FP-2">SNAP—Significant New Alternatives Policy</FP> <FP SOURCE="FP-2">SISNOSE—Significant Economic Impact on a Substantial Number of Small Entities</FP> <FP SOURCE="FP-2">TCE—Trichloroethylene</FP> <FP SOURCE="FP-2">TEAP—Technology and Economic Assessment Panel</FP> <FP SOURCE="FP-2">TSCA—Toxic Substances Control Act</FP> <FP SOURCE="FP-2">TSD—Technical Support Document</FP> <FP SOURCE="FP-2">UMRA—Unfunded Mandates Reform Act</FP> </EXTRACT> <HD SOURCE="HD1">Table of Contents</HD> <EXTRACT> <FP SOURCE="FP-2">I. Executive Summary</FP> <FP SOURCE="FP1-2">A. Purpose of the Proposed Regulatory Action</FP> <FP SOURCE="FP1-2">B. Summary of Proposed Actions</FP> <FP SOURCE="FP-2">II. General Information</FP> <FP SOURCE="FP1-2">A. Does this action apply to me?</FP> <FP SOURCE="FP1-2">B. What is EPA's authority for taking this action?</FP> <FP SOURCE="FP-2">III. Background</FP> <FP SOURCE="FP-2">IV. How is EPA assessing whether to extend eligibility for application-specific allowances?</FP> <FP SOURCE="FP1-2">A. How is EPA interpreting the “no safe or technically achievable substitute will be available” criterion?</FP> <FP SOURCE="FP1-2">B. How is EPA interpreting the insufficient supply of regulated substances criterion?</FP> <FP SOURCE="FP1-2"> C. What is EPA's proposed framework for renewing applications? </FP> <FP SOURCE="FP-2">V. Review of the Six Applications Listed in the AIM Act</FP> <FP SOURCE="FP1-2">A. Overview of Total U.S. HFC Consumption</FP> <FP SOURCE="FP1-2">B. Propellants in Metered Dose Inhalers</FP> <FP SOURCE="FP1-2">1. Availability of Safe and Technically Achievable Substitutes</FP> <FP SOURCE="FP1-2">2. Supply</FP> <FP SOURCE="FP1-2">3. What is EPA proposing regarding eligibility for application-specific allowances?</FP> <FP SOURCE="FP1-2">C. Defense Sprays</FP> <FP SOURCE="FP1-2">1. Availability of Safe and Technically Achievable Substitutes</FP> <FP SOURCE="FP1-2">2. Supply</FP> <FP SOURCE="FP1-2">3. What is EPA proposing regarding eligibility for application-specific allowances?</FP> <FP SOURCE="FP1-2">4. Proposed Restriction ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 342k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━