EPA Seeks to Dismiss Lawsuit Challenging the AIM Act

The American Innovation and Manufacturing Act (AIM Act), passed by Congress in 2020, is designed to phase down the use of HFCs. EPA has been moving forward with implementation of the law by promulgating various regulations setting forth a framework for HFC reductions.

The constitutionality of the AIM Act has been challenged in a series of lawsuits by RMS of Georgia (doing business as Choice Refrigerants). The lawsuit alleges that a subsection of the AIM Act violates the US Constitution’s separation of powers principles. The cap-and-trade system using “allowances” to reduce HFC production and consumption fails to provide the EPA with a way to identify allowance recipients or distribute allowances. The lawsuit claims that this is an unconstitutional transfer of legislative power to the executive branch. EPA is seeking to dismiss the lawsuit claiming a lack of jurisdiction and for claim splitting (because the company has filed similar lawsuits in multiple courts).