On October 20th, U.S. Environmental Protection Agency (EPA) issued a proposed rule to implement the next step of the nation’s HFC phasedown. The proposal follows the Senate’s bipartisan approval to ratify the Kigali Amendment to the Montreal Protocol, a global agreement to phase down HFCs intended to avoid up to 0.5°C of global warming by the end of this century. The proposal establishes the methodology for allocating HFC production and consumption allowances for 2024 and later years, similar to the methodology used for issuing allowances in 2022 and 2023. The number of available allowances in 2024 will be reduced to 40% below historic levels. Additionally, on September 30, EPA issued allowances to companies authorizing them to produce or import HFCs in 2023. EPA is planning to issue additional proposed rules regarding HFCs under the AIM Act. The next proposed rule is expected to focus on transitioning away from HFCs in the refrigeration and air conditioning, foams, and aerosols sectors.
