Phasedown of Hydrofluorocarbons: Management of Certain Hydrofluorocarbons and Substitutes Under Subsection (h) of the American Innovation and Manufacturing Act of 2020

Federal RegisterOct 19, 2023

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 84, 261, 262, 266, 270, and 271

[EPA-HQ-OAR-2022-0606; FRL-10105-01-OAR]

Phasedown of Hydrofluorocarbons: Management of Certain Hydrofluorocarbons and Substitutes Under Subsection (h) of the American Innovation and Manufacturing Act of 2020

AGENCY:

Environmental Protection Agency (EPA).

ACTION:

Notice of proposed rulemaking and advance notice of proposed rulemaking.

SUMMARY:

The U.S. Environmental Protection Agency is proposing to issue regulations to implement certain provisions of the American Innovation and Manufacturing Act of 2020. This rulemaking proposes to establish a program for the management of hydrofluorocarbons that includes requirements for leak repair and use of automatic leak detection systems for certain equipment using refrigerants containing hydrofluorocarbons and certain substitutes; requirements for the use of reclaimed hydrofluorocarbons in certain sectors or subsectors; the use of recycled hydrofluorocarbons in fire suppression equipment; recovery of hydrofluorocarbons from cylinders; container tracking; and certain recordkeeping, reporting, and labeling requirements. The Environmental Protection Agency is also proposing alternative Resource Conservation and Recovery Act standards for spent ignitable refrigerants being recycled for reuse. Finally, EPA requests advance comment on approaches for establishing requirements for technician training and/or certification.

DATES:

Comments on this notice of proposed rulemaking must be received on or before December 18, 2023. Under the Paperwork Reduction Act (PRA), comments on the information collection provisions are best ensured of consideration if the Office of Management and Budget (OMB) receives a copy of your comments on or before November 20, 2023. The Environmental Protection Agency (EPA) will hold a virtual public hearing on or about November 3, 2023. The date, time, and other relevant information for the virtual public hearing will be available at

https://www.epa.gov/climate-hfcs-reduction.

ADDRESSES:

You may send comments, identified by docket identification number EPA-HQ-OAR-2022-0606, by any of the following methods:

•

Federal eRulemaking Portal:

https://www.regulations.gov

(our preferred method). Follow the online instructions for submitting comments.

•

Mail:

U.S. Environmental Protection Agency, EPA Docket Center, Air and Radiation Docket, Mail Code 28221T, 1200 Pennsylvania Avenue NW, Washington, DC 20460.

•

Hand Delivery or Courier (by scheduled appointment only):

EPA Docket Center, WJC West Building, Room 3334, 1301 Constitution Avenue NW, Washington, DC 20004. The Docket Center's hours of operations are 8:30 a.m.-4:30 p.m., Monday-Friday (except Federal Holidays).

Instructions:

All submissions received must include the Docket ID No. for this rulemaking. Comments received may be posted without change to

https://www.regulations.gov,

including any personal information provided. The EPA Docket Center and Reading Room are open to the public by appointment only. Our Docket Center staff also continue to provide remote customer service via email, phone, and webform. We encourage the public to submit comments via

https://www.regulations.gov

as there may be a delay in processing mail. Hand deliveries and couriers may be received by scheduled appointment only. For further information on EPA Docket Center services and the current status, please visit us online at

https://www.epa.gov/dockets.

You may find the following suggestions helpful for preparing your comments: Direct your comments to specific sections of this proposed rulemaking and note where your comments may apply to future separate actions where possible; explain your views as clearly as possible; describe any assumptions that you used; provide any technical information or data you used that support your views; provide specific examples to illustrate your concerns; offer alternatives; and, make sure to submit your comments by the comment period deadline. Please provide any published studies or raw data supporting your position. Multimedia submissions (audio, video, etc.) must be accompanied by a written comment. The written comment is considered the official comment and should include discussion of all points you wish to make. EPA will generally not consider comments or comment contents located outside of the primary submission (

e.g.,

on the web, cloud, or other file sharing system).

Do not submit any information you consider to be Confidential Business Information (CBI) through

https://www.regulations.gov.

For submission of confidential comments, please work with the person listed in the

FOR FURTHER INFORMATION CONTACT

section. For additional submission methods, the full EPA public comment policy, information about CBI or multimedia submissions, and general guidance on making effective comments, please visit

https://www.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT:

Christian Wisniewski, Stratospheric Protection Division, Office of Atmospheric Protection (Mail Code 6205A), Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Washington, DC 20460; telephone number: 202-564-0417; email address:

wisniewski.christian@epa.gov.

You may also visit EPA's website at

https://www.epa.gov/climate-hfcs-reduction

for further information.

For information related to the proposed alternative standards for certain ignitable spent refrigerants under the Resource Conservation and Recovery Act (RCRA), please contact Tracy Atagi, Materials Recovery and Waste Management Division, Office of Resource Conservation and Recovery (5304T), Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Washington, DC 20460; telephone number: (202) 566-0511; email address:

atagi.tracy@epa.gov.

SUPPLEMENTARY INFORMATION:

Throughout this document whenever “we,” “us,” “the Agency,” or “our” is used, we mean EPA. Acronyms that are used in this rulemaking that may be helpful include:

AC—Air Conditioning

AHRI—Air-Conditioning, Heating, and Refrigeration Institute

ALD—Automatic Leak Detection

AIM Act—American Innovation and Manufacturing Act of 2020

APF—Air Permitting Forum

ASHRAE—American Society of Heating, Refrigerating and Air-Conditioning Engineers

ASTM—American Society for Testing and Materials

CAA—Clean Air Act

CARB—California Air Resources Board

CBI—Confidential Business Information

CBP—U.S. Customs and Border Protection

CFC—Chlorofluorocarbon

CFR—Code of Federal Regulations

e—Carbon Dioxide Equivalent

DOT—Department of Transportation

ECHO—Enforcement and Compliance History Online

e-GGRT—Electronic Greenhouse Gas Reporting Tool

ENGO—Environmental Non-governmental Organization

E.O.—Executive Order

EPA—Environmental Protection Agency

EVe—Exchange Value Equivalent

FEMA—Fire Equipment Manufacturers Association

FOIA—Freedom of Information Act

FR—Federal Register

FSSA—Fire Suppression Systems Association

FSTOC—Fire Suppression Technical Options Committee

GHG—Greenhouse gas

GHGRP—Greenhouse Gas Reporting Program

GWP—Global Warming Potential

HAP—Hazardous Air Pollutant

HARC—Halon Alternatives Research Corporation

HCFC—Hydrochlorofluorocarbon

HD—Heavy-duty

HEEP—HFC Emissions Estimating Program

HFC—Hydrofluorocarbon

HFO—Hydrofluoroolefin

HSWA—Hazardous and Solid Waste Amendments of 1984

HTOC—Halons Technical Options Committee

ICR—Information Collection Request

IPCC—Intergovernmental Panel on Climate Change

IPR—Industrial Process Refrigeration

IWG—Interagency Working Group on the Social Cost of Greenhouse Gases

ISO—International Organization for Standardization

MACS—Mobile Air Climate Systems Association

MMTCO

e—Million Metric Tons of Carbon Dioxide Equivalent

MMTEVe—Million Metric Tons of Exchange Value Equivalent

MTEVe—Metric Tons of Exchange Value Equivalent

MVAC—Motor vehicle air conditioner

NAAQS—National Ambient Air Quality Standards

NAICS—North American Industrial Classification System

NAFED—National Association of Fire Equipment Distributors

NATA—National Air Toxics Assessment

NEDA/CAP—National Environmental Development Association's Clean Air Project

NEI—National Emissions Inventory

NFPA—National Fire Protection Association

NODA—Notice of Data Availability

NRDC—Natural Resources Defense Council

ODP—Ozone Depletion Potential

ODS—Ozone depleting substances

OEM—Original Equipment Manufacturer

OLEM—Office of Land and Emergency Management

OMB—Office of Management and Budget

ppm—Parts Per Million

PRA—Paperwork Reduction Act

R4 Program—Refrigerant Recovery, Reclaim, and Reuse Requirements (CARB Program)

RACHP—Refrigeration, Air Conditioning, and Heat Pumps

RCOP—Recycling Code of Practice

RCRA—Resource Conservation and Recovery Act

RFA—Regulatory Flexibility Act

RIA—Regulatory Impact Analysis

RRA—Refrigerant Reclaim Australia

SC-HFC—Social Cost of Hydrofluorocarbons

SISNOSE—Significant Economic Impact on a Substantial Number of Small Entities

SNAP—Significant New Alternatives Policy

VCOP—Voluntary Code of Practice

TRI—Toxics Release Inventory

VRF—Variable Refrigerant Flow

VSQG—Very Small Quantity Generator

Table of Contents

I. Executive Summary

A. What is the purpose of this proposed regulatory action?

B. What is the summary of this proposed regulatory action?

C. What is the summary of the costs and benefits?

II. General Information

A. Does this action apply to me?

B. What is EPA's authority for taking this action?

III. Background

A. What are HFCs?

B. How do HFCs affect public health and welfare?

C. What refrigerant management programs has EPA already established under the Clean Air Act?

1. National Recycling and Emission Reduction Program (CAA Section 608)

2. Motor Vehicle Air Conditioning Servicing Program (CAA Section 609)

3. Significant New Alternatives Policy Program (CAA Section 612)

IV. How is EPA proposing to regulate the management of HFCs and their substitutes?

A. What definitions is EPA proposing to implement under subsection (h)?

1. Which definitions is EPA proposing to adopt that parallel definitions in 40 CFR 82.152?

2. Which definitions is EPA proposing to adopt that parallel definitions in 40 CFR 82.32?

3. What other definitions is EPA proposing to adopt?

B. Which sectors and subsectors is EPA considering addressing under subsection (h)?

C. How is EPA proposing to address leak repair?

1. Background

2. Scope of the Proposed Leak Repair Requirements

a. Appliances containing which refrigerants would be subject to the proposed leak repair requirements?

b. Appliances with what charge size would be subject to the proposed leak repair requirements?

3. What leak repair provisions is EPA proposing?

a. Leak Rate Calculations

b. Requirement To Repair Leaks, Timing and Applicable Leak Rates

c. Verification Testing

d. Leak Inspections

e. Chronically Leaking Appliances

f. Retrofit and Retirement Plans

g. Recordkeeping and Reporting

4. Automatic Leak Detection Systems

a. Proposed Automatic Leak Detection Requirements

b. Recordkeeping and Reporting

D. How is EPA proposing to establish requirements for the use of recovered and reclaimed HFCs?

1. Background

2. Proposed Reclamation Standard

3. Proposed Requirements for Initial Charge of Equipment for Subsectors in the RACHP Sector Subsectors in the RACHP Sector

4. Proposed Requirements for Servicing and/or Repair of Existing Equipment in the RACHP Sector Subsectors in the RACHP Sector

E. How is EPA proposing to establish an HFC emissions reduction program for the fire suppression sector?

1. Background

2. Nomenclature Used in This Section

3. Fire Suppression Background

4. Minimizing Releases of HFCs

a. Proposed Uquirements for Initial Charge of Equipment for Fire Suppression

b. Proposed Requirements for Servicing and/or Repair of Existing Equipment for Fire Suppression

c. Technician Training

d. Recycling of HFCs Prior to Disposal of Fire Suppression Equipment Containing HFCs

e. Recordkeeping and Reporting

F. What is EPA proposing for cylinder requirements and for container tracking requirements?

1. Background

2. Requirements for Disposable Cylinders

3. Container Tracking

a. Container Tracking of Regulated Substances

b. Container Tracking of Used Cylinders

4. Small Cans of Refrigerant

G. How is EPA proposing to establish RCRA refrigerant recycling alternative standards?

1. Nomenclature Used in This Section

2. Background

3. Proposed Alternative RCRA Standards for Spent Ignitable Refrigerants Being Recycled for Reuse

a. Scope of the Proposed RCRA Alternative Standards

b. Proposed Requirements for the RCRA Alternative Standards

4. Very Small Quantity Generator Wastes

5. RCRA Regulation of Exports and Imports of Ignitable Spent Refrigerants

6. Applicability of Proposed Alternative Standard in RCRA-Authorized States

7. Effect on State Authorization

H. MVAC Servicing and Reprocessed Material

V. How is EPA proposing to treat data reported under this rule?

A. Background on Determinations of Whether Information Is Entitled To Treatment as Confidential Information

1. Confidential Treatment of Reported Information

2. Emissions Data Under Section 114 of the Clean Air Act

B. Data Elements Reported to EPA Under the Leak Repair Provisions

C. Data Elements Related to the Generation of Machine-Readable Tracking Identifiers and the Tracking of HFCs

D. Data Elements Related to Fire Suppression

VI. What are the costs and benefits of this proposed action?

A. Background

B. Estimated Costs and Benefits of Leak Repair and ALD Provisions

C. Summary of Estimated Costs and Benefits of All Rule Provisions

VII. How is EPA considering environmental justice?

VIII. Request for Advance Comment on Approaches for Establishing Requirements for Technician Training

IX. Statutory and Executive Order Review

A. Executive Order 12866: Regulatory Planning and Review and Executive Order 14094: Modernizing Regulatory Review

B. Paperwork Reduction Act (PRA)

C. Regulatory Flexibility Act (RFA)

D. Unfunded Mandates Reform Act (UMRA)

E. Executive Order 13132: Federalism

F. Executive Order 13175: Consultation and Coordination With Indian Tribal Governments

G. Executive Order 13045: Protection of Children From Environmental Health and Safety Risks

H. Executive Order 13211: Actions That Significantly Affect Energy Supply, Distribution, or Use

I. National Technology Transfer and Advancement Act (NTTAA)

J. Executive Order 12898: Federal Actions To Address Environmental Justice in Minority Populations and Low-Income Populations and Executive Order 14096: Revitalizing our Nation's Commitment to Environmental Justice for All

I. Executive Summary

A. What is the purpose of this proposed regulatory action?

The Environmental Protection Agency (EPA) is proposing regulations that would implement certain provisions of the American Innovation and Manufacturing Act of 2020, codified at 42 U.S.C. 7675 (AIM Act or the Act). The AIM Act authorizes EPA to address hydrofluorocarbons (HFCs) in three main ways: phasing down HFC production and consumption through an allowance allocation program; facilitating the transition to next-generation technologies by restricting use of these HFCs in the sector or subsectors in which they are used; and promulgating certain regulations for purposes of maximizing reclaiming and minimizing releases of HFCs from equipment and ensuring the safety of technicians and consumers. This proposal focuses on the third area—establishing certain regulations for HFCs and their substitutes for the purposes of maximizing reclaiming and minimizing releases of HFCs from equipment and ensuring the safety of technicians and consumers.

More specifically, subsection (h) of the AIM Act, entitled “Management of regulated substances,” directs EPA to promulgate regulations to control, where appropriate, any practice, process, or activity regarding the servicing, repair, disposal, or installation of equipment that involves: a regulated substance (used interchangeably with “HFCs” in this proposed rulemaking), a substitute for a regulated substance, the reclaiming of a regulated substance used as a refrigerant, or the reclaiming of a substitute for a regulated substance used as a refrigerant.

This proposed rulemaking addresses how EPA intends to start implementing the provisions of subsection (h), including its authority to issue regulations to control such practices, processes, and activities, particularly as related to the management, use, and reuse of HFCs and substitutes in equipment. Further, this action proposes provisions to support implementation of, compliance with, and enforcement of requirements under subsection (h) of the AIM Act. Additionally, EPA is proposing alternative Resource Conservation and Recovery Act (RCRA) standards for certain spent ignitable refrigerants being recycled for reuse, as that term is proposed to be used under RCRA.

These proposed standards would involve regulatory changes to 40 CFR parts 261-271 and not be part of the regulations under subsection (h)(1) of the AIM Act.

The terms “reclaim” and “recycle” have different regulatory purposes and definitions under RCRA than under the CAA and the AIM Act. Under RCRA, a material is “reclaimed” if it is processed to recover a usable product, or if it is regenerated. Examples are recovery of lead values from spent batteries and regeneration of spent solvents (See 40 CFR 261.1(c)(4)). Reclamation is one of the four types of “recycling” identified in 40 CFR 261.2(c) that can involve management of a solid waste under RCRA.

B. What is the summary of this proposed regulatory action?

This section of the preamble describes a summary of the proposed provisions of this rulemaking, which are described in more detail in the relevant sections of this proposal.

Management of regulated substances.

EPA is proposing to establish a program for the management of HFCs that includes requirements with compliance dates ranging between 60 days after publication of the final rule to January 1, 2028, for:

• Leak repair of appliances containing HFCs and/or certain substitutes for HFCs (whether the appliance uses the HFC or substitute for an HFC neat or in a blend with other substances). The leak repair requirements would apply to appliances containing 15 pounds or more of a refrigerant that contains an HFC or contains a substitute for an HFC with a global warming potential (GWP) above 53 with specific exceptions;

• Use of automatic leak detection (ALD) systems for certain new and existing appliances containing 1,500 pounds or more of a refrigerant that contains an HFC or a substitute for an HFC with a GWP above 53;

• A proposed reclamation standard;

• The use of reclaimed HFCs in certain refrigeration, air conditioning, and heat pump (RACHP) sectors or subsectors and applications for the initial charge or installation of equipment and servicing and/or repair of existing equipment and the use of recycled HFCs in the initial charge or servicing and/or repair of fire suppression equipment;

• The servicing, repair, disposal, or installation of fire suppression equipment that contains HFCs, with the purpose of minimizing the release of HFCs from that equipment, as well as requirements related to technician training in the fire suppression sector;

• Recovery of HFCs from disposable cylinders prior to disposal;

• Container tracking for HFCs that could be used in the servicing, repair, and/or installation of refrigerant-containing or fire suppression equipment; and

• Recordkeeping, reporting, and labeling.

Amendments to Resource Conservation and Recovery Act (RCRA) hazardous waste regulations.

EPA is proposing alternative standards for spent ignitable refrigerants when recycled for reuse, as that term is proposed to be used under RCRA. EPA is proposing that the 40 CFR part 266 Subpart Q RCRA alternative standards would apply to HFCs and other substitutes that do not belong to flammability Class 3 as classified by the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) Standard 34-2022.

EPA is proposing to limit the alternative standards to lower flammability substitutes (Class 1, 2, and

2L) because of the lower risk of fire from the collection and recycling for reuse of these refrigerants, and the greater market value of these refrigerants, which supports the conclusion that these spent refrigerants will be recycled for reuse and not stockpiled, mismanaged, or abandoned.

ASHRAE Standard 34-2022 assigns a safety group classification for each refrigerant which consists of two alphanumeric characters (

e.g.,

A2 or B1). The capital letter indicates the toxicity class (“A” for lower toxicity) and the numeral denotes the flammability. ASHRAE recognizes three classifications and one subclass for refrigerant flammability. The three main flammability classifications are Class 1, for refrigerants that do not propagate a flame when tested as per the ASHRAE 34 standard, “Designation and Safety Classification of Refrigerants;” Class 2, for refrigerants of lower flammability; and Class 3, for highly flammable refrigerants, such as the hydrocarbon refrigerants. ASHRAE recently updated the safety classification matrix to include a new flammability subclass 2L, for flammability Class 2 refrigerants that burn very slowly.

Enforcement and compliance.

To support compliance with the proposed requirements, EPA is proposing labeling, reporting, and recordkeeping requirements as described in this action. EPA is also requiring reporting and recordkeeping for the reduction of HFC emissions for the fire suppression sector. The Agency is proposing to use the same reporting platform used in prior AIM Act rules and the Greenhouse Gas Reporting Program (GHGRP).

The GHGRP requires reporting of greenhouse gas (GHG) data and other relevant information from large GHG emission sources, fuel and industrial gas suppliers, and carbon dioxide (CO

) injection sites in the United States. The program generally requires reporting when emissions from covered sources are greater than 25,000 metric tons of CO

e per year. Publicly available information includes facility names, addresses, and latitude/longitude information.

Additionally, EPA requests advance comment on approaches for establishing requirements for RACHP technician training and/or certification. Specifically, EPA is seeking advance comment on whether, through a separate rulemaking, EPA should propose to establish training and/or service requirements for technicians under subsection (h), in particular, for flammable refrigerants. And, if so, how such a training program might be managed.

The Agency is not proposing any regulatory requirements under subsection (h) for HFCs and substitutes for HFCs used in applications besides RACHP and fire suppression sectors at this time. However, the Agency will continue to monitor the use and emissions of HFCs more generally and such information may inform future rulemakings under subsection (h).

C. What is the summary of the costs and benefits?

EPA is providing information on the costs and benefits for the provisions related to managing regulated substances and their substitutes in this proposed rule. The analyses, presented in the

Analysis of the Economic Impact and Benefits of the Proposed Rule

technical support document (TSD) and in a regulatory impact analysis (RIA) addendum to the Allocation Framework Rule RIA, are contained in the docket to this proposed rule and are intended to provide the public with information on the relevant costs and benefits of this action, if finalized as proposed, and to comply with executive orders. EPA notes that the costs and benefits associated with the management of regulated substances and their substitutes under the AIM Act are described and calculated separately from those associated with the proposed amendments to the RCRA hazardous waste regulations. These analyses—as summarized below—highlight economic cost and benefits, including benefits from leak repair and emissions reductions.

Given that the provisions EPA is proposing concern HFCs, which are subject to the phasedown of production and consumption under the AIM Act, EPA relied on its previous estimates of the impacts of already finalized AIM Act rules as a starting point for the assessment of costs and benefits of this rule. Specifically, the Allocation Framework Rule, “Phasedown of Hydrofluorocarbons: Establishing the Allowance Allocation and Trading Program Under the American Innovation and Manufacturing Act” (86 FR 55116, October 5, 2021) and the 2024 Allocation Rule, “Phasedown of Hydrofluorocarbons: Allowance Allocation Methodology for 2024 and Later Years” (88 FR 46836, July 20, 2023)

are assumed as a baseline for this proposed rule. In this way, EPA analyzed the potential incremental impacts of the proposed rule, attributing benefits only insofar as they are additional to those already assessed in the Allocation Framework Rule RIA and the 2024 Allocation Rule RIA addendum (collectively referred to as “Allocation Rules” in this discussion). For example, a mitigation option in the marginal abatement cost (MAC) analysis for the Allocation Rules assumed a reduction in refrigerant leaks; all costs and benefits calculated for this rule are for leak reductions over and above those assumed in the previous analysis.

EPA recently finalized two separate rulemakings to update the regulations established in the HFC Allocation Framework Rule. The first rule, “Phasedown of Hydrofluorocarbons: Allowance Allocation Methodology for 2024 and Later Years,” established the methodology for allocating HFC production and consumption allowances starting with calendar year 2024 allowances and adjusted the consumption baseline downward by less than 0.5% to reflect corrected data, among other changes (88 FR 46836, July 20, 2023). The second, “Phasedown of Hydrofluorocarbons: Adjustment to the Hydrofluorocarbon Baseline,” amended the production baseline downward by 0.005% to reflect corrected data (88 FR 44220, July 12, 2023).

As detailed in the RIA addendum, the number, charge sizes, leak rates, and other characteristics of potentially affected RACHP equipment were estimated using EPA's Vintaging Model.

The leak repair and ALD system provisions proposed are assumed to lead leaking systems to be repaired earlier than they otherwise would have, leading to reduced emissions of HFCs. Provisions requiring the use of reclaimed refrigerant, requirements for the fire suppression sector, and provisions related to the handling of disposable cylinders are further estimated to result in incremental reductions in HFC emissions. These reductions in HFC emissions result in climate benefits due to reduced climate forcing as calculated by multiplying avoided emissions by the social cost of each HFC (SC-HFCs).

U.S. Environmental Protection Agency (EPA). 2023. EPA's Vintaging Model representing the Allocation Framework Rule as modified by the 2024 Allocation Rule RIA addendum. VM IO file_v4.4_02.04.16_2024 Allocation Rule.

In the years 2025-2050, the proposed rule provisions would prevent an estimated 142 million metric tons of CO

equivalent (MMTCO

e) in HFC emissions, and the present value of economic benefit of avoiding the damages associated with those emissions is estimated at $9.8 billion (in 2022 dollars, discounted to 2024 using a three percent discount rate). The annual benefits are estimated to decrease over time due to the HFC phasedown and the transition out of the higher-GWP HFCs, lowering the average GWP of later emissions. For example, it is estimated that the leak repair and ALD system provisions would prevent 3.8 MMTCO

e of HFC emissions in 2030 and 2.8 MMTCO

e in the year 2040.

Reducing HFC emissions due to fixing leaks earlier would also be anticipated to lead to savings for some system owner/operators, as less new refrigerant would need to be purchased to replace leaked refrigerant. In 2025, it is estimated that the proposed leak repair and ALD provisions would lead to savings of $13 million (2022$). EPA acknowledges that these savings would not completely offset leak repair compliance costs and may not accrue uniformly to all regulated entities, and EPA requests comment on this estimate. Further, while these provisions have been estimated to result in savings, EPA understands that entities that would be affected by these proposed regulations might not perform the practices, processes, or activities that would result in cost savings absent regulation. When entities are reviewing their own economic analyses, some factors may be pertinent that make new technologies or economically favorable best practices less attractive than existing practices, or some market failure may exist that acts as a barrier to businesses' adoption of

the most profitable course.

For example, market failures may exist where there are imperfect information or split incentives; such as decision-makers not knowing the percentage of energy use associated with refrigeration or the costs of replacing refrigerant lost from leaking appliances.

Klemick, Heather & Kopits, Elizabeth & Wolverton, Ann. “Potential Barriers to Improving Energy Efficiency in Commercial Buildings: The Case of Supermarket Refrigeration.” Journal of Benefit-Cost Analysis. 8, 2017, pp. 1-31.

The compliance costs of the proposed rule include recordkeeping and reporting costs, the costs of purchasing and operating ALD systems, costs of required inspections, the cost of repairing leaks earlier than would have been necessary without the proposed provisions, and the cost of proposed disposable cylinder management requirements. In the years 2025-2050, these provisions would result in compliance costs (inclusive of refrigerant savings) with a present value estimated at $3.7 billion in 2022 dollars at a 3 percent discount rate or $2.4 billion at a 7 percent discount rate.

Taking into account both benefits and compliance costs over the 2025-2050 time period, it is estimated that the proposed rule would result in present value net benefit (benefits minus compliance costs), of $6.1 billion (with compliance costs discounted at three percent) to $7.4 billion (with compliance costs discounted at seven percent).

As detailed in the draft RIA addendum, these values represent a conservative estimate of potential incremental benefits and assume potential HFC consumption- and emissions-reducing activities required by some of the proposed rule's provisions could be offset to the extent that available consumption and production allowances are shifted to meet demand in subsectors not covered by the proposed rule. Given the inherent uncertainty of future industry behavior, in the draft RIA addendum EPA has also provided estimates under an additional scenario in which these offsetting effects to not occur and additional incremental benefits accrue.

Some of the information regarding projected impacts of certain aspects of the proposal was considered by EPA as it developed this proposed rule. To the extent that EPA has considered such information it is compiled in the

Analysis of the Economic Impact and Benefits of the Proposed Rule

draft TSD, which is in the docket for this rulemaking.

Although EPA is using SC-HFCs for purposes of some of the analysis in the RIA addendum, this proposed action does not rely on those estimates of these costs as a record basis for the Agency action, and EPA would reach the proposed conclusions even in the absence of the social costs of HFCs. Additional information on these analyses can be found in section VI. of this document, as well as the RIA addendum and the

Analysis of the Economic Impact and Benefits of the Proposed Rule

draft TSD, which is in the docket for this rulemaking.

II. General Information

A. Does this action apply to me?

You may be potentially affected by this rule if you own, operate, service, repair, recycle, dispose, or install equipment containing HFCs or their substitutes, as well as if you recover, recycle, or reclaim HFCs or their substitutes. You may also be potentially affected if you manufacture or sell equipment containing HFCs or their substitutes. Potentially affected categories, by North American Industry Classification System (NAICS) code, are included in Table 1.

Table 1—NAICS Classification of Potentially Affected Entities

NAICS code

NAICS industry description

236118

Residential Remodelers.

236220

Commercial and Institutional Building Construction.

238220

Plumbing, Heating, and Air-Conditioning Contractors.

238990

All Other Specialty Trade Contractors.

311812

Commercial Bakeries.

321999

All Other Miscellaneous Wood Product Manufacturing.

322299

All Other Converted Paper Product Manufacturing.

324191

Petroleum Lubricating Oil and Grease Manufacturing.

324199

All Other Petroleum and Coal Products Manufacturing.

325199

All Other Basic Organic Chemical Manufacturing.

325211

Plastics Material and Resin Manufacturing.

325412

Pharmaceutical Preparation Manufacturing.

325414

Biological Product (except Diagnostic) Manufacturing.

325998

All Other Miscellaneous Chemical Product and Preparation Manufacturing.

326299

All Other Rubber Product Manufacturing.

327999

All Other Miscellaneous Nonmetallic Mineral Product Manufacturing.

332812

Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to Manufacturers.

332999

All Other Miscellaneous Fabricated Metal Product Manufacturing.

333415

Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing.

333511

Industrial Mold Manufacturing.

333912

Air and Gas Compressor Manufacturing.

333999

All Other Miscellaneous General Purpose Machinery Manufacturing.

334413

Semiconductor and Related Device Manufacturing.

334419

Other Electronic Component Manufacturing.

334516

Analytical Laboratory Instrument Manufacturing.

335220

Major Household Appliance Manufacturing.

336120

Heavy Duty Truck Manufacturing.

336212

Truck Trailer Manufacturing.

336214

Travel Trailer and Camper Manufacturing.

3363

Motor Vehicle Parts Manufacturing.

3364

Aerospace Product and Parts Manufacturing.

336411

Aircraft Manufacturing.

336611

Ship Building and Repairing.

336612

Boat Building.

339112

Surgical and Medical Instrument Manufacturing.

339113

Surgical Appliance and Supplies Manufacturing.

339999

All Other Miscellaneous Manufacturing.

423120

Motor Vehicle Supplies and New Parts Merchant Wholesalers.

423450

Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers.

423610

Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers.

423620

Household Appliances, Electric Housewares, and Consumer Electronics Merchant Wholesalers.

423690

Other Electronic Parts and Equipment Merchant Wholesalers.

423720

Plumbing and Heating Equipment and Supplies (Hydronics) Merchant Wholesalers.

423730

Warm Air Heating and Air-Conditioning Equipment and Supplies Merchant Wholesalers.

423740

Refrigeration Equipment and Supplies Merchant Wholesalers.

423830

Industrial Machinery and Equipment Merchant Wholesalers.

423840

Industrial Supplies Merchant Wholesalers.

423850

Service Establishment Equipment and Supplies Merchant Wholesalers.

423860

Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers.

423990

Other Miscellaneous Durable Goods Merchant Wholesalers.

424690

Other Chemical and Allied Products Merchant Wholesalers.

424820

Wine and Distilled Alcoholic Beverage Merchant Wholesalers.

441310

Automotive Parts and Accessories Stores.

443141

Household Appliance Stores.

444190

Other Building Material Dealers.

445110

Supermarkets and Other Grocery (except Convenience) Stores.

445131

Convenience Retailers.

445298

All Other Specialty Food Retailers.

446191

Food (Health) Supplement Stores.

449210

Electronics and Appliance Retailers.

452311

Warehouse Clubs and Supercenters.

453998

All Other Miscellaneous Store Retailers (except Tobacco Stores).

45711

Gasoline Stations With Convenience Stores.

481111

Scheduled Passenger Air Transportation.

488510

Freight Transportation Arrangement.

493110

General Warehousing and Storage.

531120

Lessors of Nonresidential Buildings (except Mini warehouses).

541330

Engineering Services.

541380

Testing Laboratories.

541512

Computer Systems Design Services.

541519

Other Computer Related Services.

541620

Environmental Consulting Services.

561210

Facilities Support Services.

561910

Packaging and Labeling Services.

561990

All Other Support Services.

562111

Solid Waste Collection.

562211

Hazardous Waste Treatment and Disposal.

562920

Materials Recovery Facilities.

621498

All Other Outpatient Care Centers.

621999

All Other Miscellaneous Ambulatory Health Care Services.

72111

Hotels (Except Casino Hotels) and Motels.

72112

Casino Hotels.

72241

Drinking Places (Alcoholic Beverages).

722511

Full-service Restaurants.

722513

Limited-Service Restaurants.

722514

Cafeterias, Grill Buffets, and Buffets.

722515

Snack and Nonalcoholic Beverage Bars.

81119

Other Automotive Repair and Maintenance.

811219

Other Electronic and Precision Equipment Repair and Maintenance.

811412

Appliance Repair and Maintenance.

922160

Fire Protection.

This table is not intended to be exhaustive, but rather provides a guide for readers regarding entities likely to be regulated by this action. This table lists the types of entities that EPA expects could potentially be regulated by this action. Other types of entities not listed in the table could also be regulated. To determine whether your entity may be regulated by this action, you should carefully examine the proposed regulatory text at the end of this document. If you have questions regarding the applicability of this action to a particular entity, consult the people listed in the

FOR FURTHER INFORMATION CONTACT

section.

B. What is EPA's authority for taking this action?

On December 27, 2020, the AIM Act was enacted as section 103 in Division S, Innovation for the Environment, of the Consolidated Appropriations Act, 2021 (42 U.S.C. 7675). In subsection (k)(1)(A), the AIM Act provides EPA with the authority to promulgate

necessary regulations to carry out EPA's functions under the Act, including its obligations to ensure that the Act's requirements are satisfied (42 U.S.C. 7675(k)(1)(A)). Subsection (k)(1)(C) of the Act also provides that Clean Air Act (CAA) sections 113, 114, 304, and 307 apply to the AIM Act and any regulations EPA promulgates under the AIM Act as though the AIM Act were part of CAA Title VI (42 U.S.C. 7675(k)(1)(C)). Accordingly, this rulemaking is subject to CAA section 307(d) (see 42 U.S.C. 7607(d)(1)(I)) (CAA section 307(d) applies to “promulgation or revision of regulations under subchapter VI of this chapter (relating to stratosphere and ozone protection)”).

The AIM Act authorizes EPA to address hydrofluorocarbons (HFCs) in three main ways: phasing down HFC production and consumption through an allowance allocation program; facilitating the transition to next-generation technologies by restricting use of these HFCs in the sector or subsectors in which they are used; and promulgating certain regulations for purposes of maximizing reclaiming and minimizing releases of HFCs from equipment and ensuring the safety of technicians and consumers. This proposal focuses on the third area—establishing certain regulations for HFCs and their substitutes for the purposes of maximizing reclaiming

and minimizing releases of HFCs from equipment and ensuring the safety of technicians and consumers.

EPA views “reclaim,” “reclaiming,” and “reclamation” as interchangeable terms.

The identification of regulated substances is addressed under subsection (c) of the Act. The Act lists 18 saturated HFCs, and by reference any of their isomers not so listed, that are covered by the statute's provisions, referred to as “regulated substances”

under the Act (42 U.S.C. 7675(c)(1)). Congress also assigned an “exchange value”

9 10

to each regulated substance. EPA is also authorized to designate additional substances that meet certain criteria as regulated substances; for example, to be listed, the substance must be a saturated HFC that has an exchange value greater than 53 (which is also the lowest exchange value for a regulated substance listed in subsection (c)(1) of the Act) (42 U.S.C. 7675(c)(3)).

As noted previously in this action, “regulated substance” and “HFC” are used interchangeably in this action.

EPA has determined that the exchange values included in subsection (c) of the AIM Act are identical to the global warming potentials (GWPs) included in the Intergovernmental Panel on Climate Change (IPCC) (2007). EPA uses the terms “global warming potential” and “exchange value” interchangeably in this proposal.

IPCC (2007): Solomon, S., D. Qin, M. Manning, R.B. Alley, T. Berntsen, N.L. Bindoff, Z. Chen, A. Chidthaisong, J.M. Gregory, G.C. Hegerl, M. Heimann, B. Hewitson, B.J. Hoskins, F. Joos, J. Jouzel, V. Kattsov, U. Lohmann, T. Matsuno, M. Molina, N. Nicholls, J. Overpeck, G. Raga, V. Ramaswamy, J. Ren, M. Rusticucci, R. Somerville, T.F. Stocker, P. Whetton, R.A. Wood and D. Wratt, 2007: Technical Summary. In: Climate Change 2007: The Physical Science Basis. Contribution of Working Group I to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change [Solomon, S., D. Qin, M. Manning, Z. Chen, M. Marquis, K.B. Averyt, M. Tignor and H.L. Miller (eds.)]. Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA

https://www.ipcc.ch/report/ar4/wg1.

The regulated substances addressed in this proposal may be used neat (

i.e.,

as a single component substance) or in a blend with other substances, which may include other regulated substances and/or substitutes for regulated substances. The requirements proposed in this rulemaking for regulated substances would apply regardless of whether the regulated substance is used neat or in blend. In taking this approach, EPA is not proposing that a blend that uses one or more regulated substances is itself a regulated substance. Rather, the Agency is proposing to regulate the regulated substance(s) used within a “blend of substances” (42 U.S.C. 7675(c)(3)(B)(ii)), such that the proposed requirements would also affect equipment that uses regulated substances in blends. This is consistent with approaches that the Agency has taken under the Allocation Framework Rule (86 FR 55133, 55142, October 5, 2021) and proposed for the Technology Transitions Rule (87 FR 76744, 76753, December 15, 2022).

Furthermore, subsection (h)(1) requires EPA to promulgate regulations addressing certain practices, processes, or activities involving, among other things, a regulated substance or a substitute for a regulated substance (

see

42 U.S.C. 7675(h)(1)(A)-(B)). Consistent with those provisions, regulatory requirements under subsection (h) may also apply with respect to substitutes for regulated substances, regardless of whether the substitute is used neat or in a blend. In taking this approach for substitutes for a regulated substance, EPA is not proposing that a blend that uses one or more such substitutes that are so regulated would be designated a regulated substance under subsection (c) of the Act, nor that the substitute would be so designated. Rather, such substitutes would simply be addressed, as appropriate, under the regulations implementing subsection (h).

In affirming this aspect of the HFC Allocation Framework Rule, the D.C. Circuit held that “EPA has statutory authority to regulate HFCs within blends . . . because an HFC within a blend remains a regulated HFC under the Act.”

Heating, Air Conditioning & Refrigeration Distributors Int'l

EPA,

71 F.4th 59, 64 (D.C. Cir. 2023).

Subsection (h) of the AIM Act is entitled “Management of regulated substances.” For purposes of maximizing reclaiming and minimizing releases of HFCs from equipment and ensuring the safety of technicians and consumers, subsection (h)(1) directs EPA to promulgate regulations to control, where appropriate, any practice, process, or activity regarding the servicing, repair, disposal, or installation of equipment that involves: a regulated substance, a substitute for a regulated substance, the reclaiming of a regulated substance used as a refrigerant, or the reclaiming of a substitute for a regulated substance used as a refrigerant (42 U.S.C. 7675(h)(1)). Subsection (h)(1) further provides that this includes requiring, where appropriate, that any such servicing, repair, disposal, or installation be performed by a trained technician meeting minimum standards, as determined by EPA.

Under subsection (h)(2)(A) of the AIM Act, the Agency “shall consider the use of authority available . . . under this section to increase opportunities for the reclaiming of regulated substances used as refrigerants.” Subsection (h)(2)(B) of the Act further provides that a “regulated substance used as a refrigerant that is recovered shall be reclaimed before the regulated substance is sold or transferred to a new owner, except where the recovered regulated substance is sold or transferred to a new owner solely for the purposes of being reclaimed or destroyed.”

Further, subsection (h)(3) provides that in promulgating regulations to carry out subsection (h), EPA may coordinate those regulations with “any other regulations promulgated by the [EPA] that involve—(A) the same or a similar practice, process, or activity regarding the servicing, repair, disposal, or installation of equipment; or (B) reclaiming.” EPA interprets this provision of the AIM Act as leaving the Agency discretion as to whether or not to coordinate regulations under subsection (h) with other EPA regulations, as well as with discretion to consider the particular circumstances in which it is appropriate to undertake such coordination. Congress did not define the term “coordinate” in the AIM Act. EPA interprets the term, as used in this context, as encompassing a variety of forms of coordination that could potentially be used for the specified types of regulatory provisions, and interprets (h)(3) as conveying discretion

to EPA to select the form or forms of coordination that are appropriate for the particular circumstances and regulatory provisions under consideration in a given action.

In this proposal, EPA describes where and whether we are coordinating with regulations that involve the same or similar practices, processes, or activities regarding the servicing, repair, disposal, or installation of equipment or reclaiming, and our rationale on the appropriateness of coordinating with these regulations. For example, coordination could include establishing parallel requirements under subsection (h) as in another regulatory regime so that a similar practice, process, or activity in similar equipment is held to similar standards, where appropriate. It could also include deciding not to establish requirements under subsection (h) in certain situations, such as when an existing requirement already applies to a similar practice, process, or activity under another set of regulations that EPA views as adequate to also address the purposes of subsection (h). Coordination could also mean coordinating rulemaking schedules or timing for certain requirements under subsection (h) that cover a similar practice, process, or activity as covered in a previous regulation and would meet the purposes of subsection (h). Finally, coordination may also mean coordinating the requirements under subsection (h) with revisions to regulations under other statutory authorities that address related practices, processes, or activities, with the goal of developing independent regulatory regimes that operate well together to achieve their stated goals.

Subsection (h)(4) expressly states that any rulemaking under subsection (h) shall not apply to a regulated substance or a substitute for a regulated substance that is contained in a foam. Thus, the requirements proposed in this rulemaking would not apply to regulated substances or substitutes for regulated substances when those substances are contained in foams.

Finally, subsection (h)(5) provides that, subject to availability of appropriations, EPA shall establish a grant program to award small business grants for the purchase of new specialized equipment for the recycling, recovery, or reclamation of a substitute for a regulated substance, including the purchase of approved refrigerant recycling equipment for recycling, recovery, or reclamation in the service or repair of a motor vehicle air conditioner (MVAC) systems. Funds have not been appropriated for this grant program. The establishment of this program is outside the scope of this rulemaking and EPA intends to address it in a future action.

Through this rulemaking, EPA is proposing to establish an HFC management program that includes requirements for:

• Leak repair for certain equipment that contain HFC refrigerants or their substitutes, as applicable,

• ALD systems,

• Use of reclaimed HFCs in certain RACHP subsectors,

• The fire suppression sector,

• Recovery of HFCs from cylinders, and

• Container tracking.

Under subsection (h)(1), EPA is directed to promulgate certain regulations for “purposes of maximizing the reclaiming and minimizing the release of a regulated substance from equipment and ensuring the safety of technicians and consumers.” Subsection (h) further specifies that those regulations are to control, where appropriate, any practice, process, or activity regarding the servicing, repair, disposal, or installation of equipment that involves: a regulated substance, a substitute for a regulated substance, the reclaiming of a regulated substance used as a refrigerant, or the reclaiming of a substitute for a regulated substance used as a refrigerant. Together, the proposed provisions as outlined above in this section and explained in greater detail in the relevant sections of this NPRM are aimed at achieving those three purposes described in subsection (h)(1) (

i.e.,

(1) maximizing the reclaiming, (2) minimizing the release of a regulated substance from equipment, and (3) ensuring the safety of technicians and consumers), while also being consistent with the scope of regulatory authority under that provision. As EPA interprets the statutory text, the suite of regulations established under subsection (h)(1) of the Act, taken together, would be focused on serving these purposes, though the individual regulatory provisions under subsection (h)(1) need not each connect to all three purposes. This interpretation is integral to establishing an effective regulatory program, as some regulatory provisions that might be considered under (h)(1) may be highly efficacious at addressing one of the regulatory purposes but not address the other two, or alternatively, may be important to support the functioning of the regulatory program as a whole, but not be focused on any of the specific purposes. Accordingly, this understanding of the statutory text will support EPA's ability to develop regulations that work together to help achieve the statutory purposes.

Together the provisions proposed in this action would serve the purposes described in (h)(1), with certain provisions more geared towards one or two of the purposes identified in subsection (h)(1). For example, the provisions related to leak repair as proposed in this action are directed at the purpose of minimizing the release of a regulated substance, but also help serve the purpose of maximizing the reclaiming of a regulated substance. Those proposed provisions would set requirements for when and how equipment must be serviced and leaks in equipment must be repaired. Taking these actions would minimize the release of regulated substances through such leaks, as the sooner a leak is found and repaired, the less HFC will be released from that leak. Further, by limiting the amount of regulated substances released from leaks in equipment, the opportunity to recover and subsequently reclaim these regulated substances increases. Thus, the proposed provisions related to leak repair also help serve the purpose of maximizing the reclaiming of regulated substances.

Another example is the proposed provisions for the use of ALD systems which would help address the purposes articulated in subsection (h)(1) similarly. In general, ALD systems would alert an owner or operator of leaks in equipment sooner than discovering a leak due to decreased performance by the equipment. Identifying and repairing leaks sooner as a result of detecting the leak with an ALD system would further limit the amount of regulated substance released from the leak and maintain more of the regulated substance within the equipment, where it would be available for eventual recovery and reclamation.

In addition to proposing requirements for the management of HFCs and substitutes, this proposal includes provisions designed to support enforcement and compliance, including recordkeeping and reporting. As noted earlier in this section, subsection (k)(1)(C) of the AIM Act states that CAA section 114 applies to the AIM Act and rules promulgated under it as if the AIM Act were included in CAA Title VI. Thus, CAA section 114, which provides authority to the EPA Administrator to require recordkeeping and reporting in carrying out provisions of the CAA, also applies to and supports this rulemaking. These provisions may be examples of provisions that are integral to establishing an effective regulatory program, and thus are important to the overall efficacy of the HFC management program at achieving the purposes

articulated in subsection (h)(1), even if they may be less directly connected to those purposes if viewed in isolation.

In this action, we are also proposing alternative RCRA standards for spent ignitable refrigerants being recycled for reuse. These proposed standards would not be part of the regulations under subsection (h)(1) of the AIM Act. Rather, this would involve regulatory changes to 40 CFR parts 261-271, and those changes are proposed under the authority of sections 2002, 3001, 3002, 3003, 3004, 3006, and 3010 of the Solid Waste Disposal Act of 1965, as amended by the Resource Conservation and Recovery Act of 1976 (RCRA), as amended by the Hazardous and Solid Waste Amendments of 1984 (HSWA). This statute is commonly referred to as “RCRA.”

III. Background

A. What are HFCs?

HFCs are anthropogenic

fluorinated chemicals that have no known natural sources. HFCs are used in a variety of applications such as refrigeration and air conditioning, foam blowing agents, solvents, aerosols, and fire suppression. HFCs are potent greenhouse gases (GHGs) with 100-year GWPs (a measure of the relative climatic impact of a GHG) that can be hundreds to thousands of times more potent than CO

While the overwhelming majority of HFC production is intentional, EPA is aware that HFC-23 can be a byproduct associated with the production of other chemicals, including but not limited to hydrochlorofluorocarbon (HCFC)-22.

HFC use and emissions

have been growing worldwide due to the global phaseout of ozone-depleting substances (ODS) under the

Montreal Protocol on Substances that Deplete the Ozone Layer

(Montreal Protocol) and the increasing use of refrigeration and air-conditioning equipment globally. HFC emissions had previously been projected to increase substantially over the next several decades. In 2016, in Kigali, Rwanda, countries agreed to adopt an amendment to the Montreal Protocol, known as the Kigali Amendment, which provides for a global phasedown of the production and consumption of HFCs. The United States ratified the Kigali Amendment on October 31, 2022. Global adherence to the Kigali Amendment would substantially reduce future emissions, leading to a peaking of HFC emissions before 2040.

14 15

World Meteorological Organization (WMO), Scientific Assessment of Ozone Depletion: 2022, GAW Report No. 278, 509 pp., WMO, Geneva, Switzerland, 2022. Available at:

https://ozone.unep.org/system/files/documents/Scientific-Assessment-of-Ozone-Depletion-2022.pdf

Ibid.

A recent study estimated that global compliance with the Kigali Amendment is expected to lower 2050 annual emissions by 3.0-4.4 Million Metric Tons of Carbon Dioxide Equivalent (MMTCO

e). Guus J.M. Velders et al. Projections of hydrofluorocarbon (HFC) emissions and the resulting global warming based on recent trends in observed abundances and current policies. Atmos. Chem. Phys., 22, 6087-6101, 2022. Available at:

https://doi.org/10.5194/acp-22-6087-2022

Atmospheric observations of most currently measured HFCs confirm their abundances are increasing at accelerating rates. Total emissions of HFCs increased by 19 percent from 2016 to 2020 and the four most abundant HFCs in the atmosphere, in GWP-weighted terms, are HFC-134a, HFC-125, HFC-23, and HFC-143a.

WMO, 2022.

In 2020, HFCs excluding HFC-23 accounted for a radiative forcing

of 0.037 W/m

. This is an increase of nearly a third in total HFC forcing relative to 2016. This radiative forcing was projected to increase by an order of magnitude to 0.25 W/m

by 2050.

Full implementation of the Kigali Amendment is expected to reduce the future radiative forcing due to HFCs (excluding HFC-23) to 0.13 W/m

in 2050, which is a reduction of about 50 percent compared with the radiative forcing projected in the business-as-usual scenario of uncontrolled HFCs.

Radiative forcing is expressed in units of watts per square meter (W/m

) and is defined by the IPCC as “a measure of the influence a factor has in altering the balance of incoming and outgoing energy in the Earth-atmosphere system and is an index of the importance of the factor as a potential climate change mechanism.” IPCC, 2007: Climate Change 2007: Synthesis Report. Contribution of Working Groups I, II and III to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change [Core Writing Team, Pachauri, R.K and Reisinger, A. (eds.)]. IPCC, Geneva, Switzerland, 104 pp.

https://www.ipcc.ch/report/ar4/syr/

Guus J.M. Velders, David W. Fahey, John S. Daniel, Stephen O. Andersen, Mack McFarland, Future atmospheric abundances and climate forcings from scenarios of global and regional hydrofluorocarbon (HFCs) emissions, Atmospheric Environment, doi:10.1016/j.atmosenv.2015.10.071, 2015.

Ibid.

There are hundreds of possible HFC compounds. The 18 HFCs listed as regulated substances by the AIM Act are some of the most commonly used HFCs (neat and in blends) and have high impacts as measured by the quantity of each substance emitted multiplied by their respective GWPs. These 18 HFCs are all saturated, meaning they have only single bonds between their atoms and therefore have longer atmospheric lifetimes.

In the United States, HFCs are used primarily in refrigeration and air-conditioning equipment in homes, commercial buildings, and industrial operations (approximately 75 percent of total HFC use in 2018) and in air conditioning in vehicles and refrigerated transport (approximately 8 percent). Smaller amounts are used in foam products (approximately 11 percent), aerosols (approximately 4 percent), fire protection systems (approximately 1 percent), and solvents (approximately 1 percent).

Calculations based on EPA's Vintaging Model, which estimates the annual chemical emissions from industry sectors that historically used ODS, including refrigeration and air conditioning, foam blowing agents, solvents, aerosols, and fire suppression. The model uses information on the market size and growth for each end use, as well as a history and projections of the market transition from ODS to substitutes. The model tracks emissions of annual “vintages” of new equipment that enter into operation by incorporating information on estimates of the quantity of equipment or products sold, serviced, and retired or converted each year, and the quantity of the compound required to manufacture, charge, and/or maintain the equipment. Additional information on these estimates is available in U.S. EPA, April 2016. EPA Report EPA-430-R-16-002. Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2014. Available at:

https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks-1990-2014

EPA estimated in its final rule, Allocation Framework Rule (86 FR 55116, October 5, 2021) as updated under the final rule, Allowance Allocation Methodology for 2024 and Later Years (“2024 Allocation Rule”) (88 FR 46836; July 20, 2023), that phasing down HFC production and consumption according to the schedule provided in the AIM Act will avoid cumulative consumption of 3,156 million metric tons of exchange value equivalent (MMTEVe) of HFCs in the United States for the years 2022 through 2036. That estimate included both consumption as defined in 40 CFR 84.3—

i.e.,

with respect to a regulated substance, bulk production plus bulk imports minus bulk exports—and, although not requiring AIM Act allowances, the amount in imported products containing a regulated substance, less the amount in exported products containing a regulated substance. Annual avoided consumption was estimated at 42 MMTCO

e in 2022 and 282 MMTCO

e in 2036. In order to calculate the climate benefits associated with consumption abatement, the consumption changes were expressed in terms of emissions reductions. EPA estimated that for the years 2022-2050, the HFC phasedown will avoid emissions of 4,560 MMTCO

e of HFCs in the United States. The annual avoided emissions are estimated at 22 MMTCO

e in the year 2022 and 171 MMTCO

e in 2036. More information

regarding these estimates is provided in the Allocation Framework Rule RIA and the RIA addendum for the 2024 Allocation Rule, which can be found in the docket for this proposal.

B. How do HFCs affect public health and welfare?

Elevated concentrations of GHGs including HFCs are and have been warming the planet, leading to changes in the Earth's climate including changes in the frequency and intensity of heat waves, precipitation, and extreme weather events; rising seas; and retreating snow and ice. The changes taking place in the atmosphere as a result of the well-documented buildup of GHGs due to human activities are changing the climate at a pace and scale that threatens human health, society, and the natural environment. In this section, EPA is providing some scientific background on climate change to offer additional context for this rulemaking and to help the public understand the environmental impacts of GHGs such as HFCs.

Extensive additional information on climate change is available in the scientific assessments and the EPA documents that are briefly described in this section, as well as in the technical and scientific information supporting them.

One of those documents is EPA's 2009 Endangerment and Cause or Contribute Findings for Greenhouse Gases Under section 202(a) of the CAA (74 FR 66496, December 15, 2009).

In the 2009 Endangerment Finding, the Administrator found under CAA section 202(a) that elevated atmospheric concentrations of six key well-mixed GHGs—CO

, methane (CH

), nitrous oxide (N

O), HFCs, perfluorocarbons (PFCs), and sulfur hexafluoride (SF

)—“may reasonably be anticipated to endanger the public health and welfare of current and future generations” (74 FR 66523, December 15, 2009), and the science and observed changes have confirmed and strengthened the understanding and concerns regarding the climate risks considered in the Finding. The 2009 Endangerment Finding, together with the extensive scientific and technical evidence in the supporting record, documented that climate change caused by human emissions of GHGs (including HFCs) threatens the public health of the population of the United States. It explained that by raising average temperatures, climate change increases the likelihood of heat waves, which are associated with increased deaths and illnesses (74 FR 66497, December 15, 2009). While climate change also likely reduces cold-related mortality, evidence indicates that the increases in heat mortality will be larger than the decreases in cold mortality in the United States (74 FR 66525, December 15, 2009). The 2009 Endangerment Finding further explained that, compared with a future without climate change, climate change is expected to increase tropospheric ozone pollution over broad areas of the United States, including in the largest metropolitan areas with the worst tropospheric ozone problems, and thereby increase the risk of adverse effects on public health (74 FR 66525, December 15, 2009). Climate change is also expected to cause more intense hurricanes and more frequent and intense storms of other types and heavy precipitation, with impacts on other areas of public health, such as the potential for increased deaths, injuries, infectious and waterborne diseases, and stress-related disorders (74 FR 66525, December 15, 2009). Climate change is also expected to cause more intense hurricanes and more frequent and intense storms of other types and heavy precipitation, with impacts on other areas of public health, such as the potential for increased deaths, injuries, infectious and waterborne diseases, and stress-related disorders (74 FR 66525, December 15, 2009). Children, the elderly, and the poor are among the most vulnerable to these climate-related health effects (74 FR 66498, December 15, 2009).

In describing these 2009 Findings in this proposal, EPA is neither reopening nor revisiting them.

The 2009 Endangerment Finding also documented, together with the extensive scientific and technical evidence in the supporting record, that climate change touches nearly every aspect of public welfare

in the United States, including: changes in water supply and quality due to increased frequency of drought and extreme rainfall events; increased risk of storm surge and flooding in coastal areas and land loss due to inundation; increases in peak electricity demand and risks to electricity infrastructure; predominantly negative consequences for biodiversity and the provisioning of ecosystem goods and services; and the potential for significant agricultural disruptions and crop failures (though offset to some extent by carbon fertilization). These impacts are also global and may exacerbate problems outside the United States that raise humanitarian, trade, and national security issues for the United States (74 FR 66530, December 15, 2009).

The CAA states in section 302(h) that “[a]ll language referring to effects on welfare includes, but is not limited to, effects on soils, water, crops, vegetation, manmade materials, animals, wildlife, weather, visibility, and climate, damage to and deterioration of property, and hazards to transportation, as well as effects on economic values and on personal comfort and well-being, whether caused by transformation, conversion, or combination with other air pollutants.” 42 U.S.C. 7602(h).

In 2016, the Administrator similarly issued Endangerment and Cause or Contribute Findings for GHG emissions from aircraft under CAA section 231(a)(2)(A)(81 FR 54422, August 15, 2016).

In the 2016 Endangerment Finding, the Administrator found that the body of scientific evidence amassed in the record for the 2009 Endangerment Finding compellingly supported a similar endangerment finding under CAA section 231(a)(2)(A) and also found that the science assessments released between the 2009 and the 2016 Findings “strengthen and further support the judgment that GHGs in the atmosphere may reasonably be anticipated to endanger the public health and welfare of current and future generations” (81 FR 54424, August 15, 2016).

In describing these 2016 Findings in this proposal, EPA is neither reopening nor revisiting them.

Since the 2016 Endangerment Finding, the climate has continued to change, with new records being set for several climate indicators such as global average surface temperatures, GHG concentrations, and sea level rise. Moreover, heavy precipitation events have increased in the Eastern U.S. while agricultural and ecological drought has increased in the Western U.S. along with more intense and larger wildfires.

These and other trends are examples of the risks discussed in the 2009 and 2016 Endangerment Findings that have already been experienced. Additionally, major scientific assessments continue to demonstrate advances in our understanding of the climate system and the impacts that GHGs have on public health and welfare both for current and future generations. According to the Intergovernmental Panel on Climate Change's (IPCC) Sixth Assessment Report, “it is unequivocal that human influence has warmed the atmosphere, ocean and land. Widespread and rapid changes in the atmosphere, ocean, cryosphere and biosphere have occurred.”

These

updated observations and projections document the rapid rate of current and future climate change both globally and in the United States.

26 27 28 29

An additional resource for indicators can be found at

https://www.epa.gov/climate-indicators

IPCC, 2021: Summary for Policymakers. In:

Climate Change 2021: The Physical Science Basis. Contribution of Working Group I to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change

[Masson-Delmotte, V., P. Zhai, A. Pirani, S.L. Connors, C. Pe´an, S. Berger, N.

Caud, Y. Chen, L. Goldfarb, M.I. Gomis, M. Huang, K. Leitzell, E. Lonnoy, J.B.R. Matthews, T.K. Maycock, T. Waterfield, O. Yelekçi, R. Yu and B. Zhou (eds.)]. Cambridge University Press. In Press: 4.

USGCRP, 2018: Impacts, Risks, and Adaptation in the United States: Fourth National Climate Assessment, Volume II [Reidmiller, D.R., C.W. Avery, D.R. Easterling, K.E. Kunkel, K.L.M. Lewis, T.K. Maycock, and B.C. Stewart (eds.)]. U.S. Global Change Research Program, Washington, DC, USA, 1515 pp. doi: 10.7930/NCA4.2018. Available at:

https://nca2018.globalchange.gov

IPCC, 2021.

National Academies of Sciences, Engineering, and Medicine, 2019. Climate Change and Ecosystems. Washington, DC: The National Academies Press. Available at:

https://doi.org/10.17226/25504

NOAA National Centers for Environmental Information, Monthly Global Climate Report for Annual 2022, published online January 2023, retrieved on March 1, 2023 from

https://www.ncei.noaa.gov/access/monitoring/monthly-report/global/202213

C. What refrigerant management programs has EPA already established under the Clean Air Act?

EPA is developing regulations that are designed to establish a comprehensive HFC management program that maximizes the reclaiming and minimizes the release of HFCs while coordinating these efforts with other similar programs. EPA has an extensive history under CAA Title VI regulating the sectors in which HFCs and substitutes are typically used, including where they are used as refrigerants and for other purposes. For example, EPA has regulated stationary refrigeration applications under CAA section 608, MVACs under CAA section 609, and has evaluated alternative substances for refrigeration, air conditioning, and other uses under the Significant New Alternatives Policy (SNAP) program under CAA section 612.

1. National Recycling and Emission Reduction Program (CAA Section 608)

CAA section 608, titled “National Recycling and Emission Reduction Program,” has three main components. First, section 608(a) requires EPA to establish standards and requirements regarding the use and disposal of class I and class II substances.

The second component, section 608(b), requires that the regulations issued pursuant to subsection (a) contain requirements for the safe disposal of class I and class II substances. The third component, section 608(c), prohibits the knowing venting, release, or disposal of ODS refrigerants

and their substitutes

in the course of maintaining, servicing, repairing, or disposing of appliances or industrial process refrigeration (IPR). EPA refers to this third component as the “venting prohibition.” Section 608(c)(1) establishes the venting prohibition for ODS refrigerants effective July 1, 1992, and it includes an exemption from this prohibition for “[d]e minimis releases associated with good faith attempts to recapture and recycle or safely dispose” any such substance. Section 608(c)(2) extends 608(c)(1) to substitute refrigerants, effective November 15, 1995. Section 608(c)(2) also includes a provision that allows the Administrator to exempt a substitute refrigerant from the venting prohibition if he or she determines that such venting, release, or disposal of a substitute refrigerant “does not pose a threat to the environment.”

A class I or class II substance is an ozone-depleting substance (ODS) listed at 40 CFR part 82, subpart A, appendix A or appendix B, respectively. This document refers to class I and class II substances collectively as ozone-depleting substances, or ODS.

The term “ODS refrigerant” as used in this document refers to any refrigerant or refrigerant blend in which one or more of the components is a class I or class II substance.

The term “substitute” for the purposes of the regulations under section 608 of the CAA is defined at 40 CFR 82.152.

EPA first issued regulations under CAA section 608 on May 14, 1993 (58 FR 28660, “1993 Rule”), to establish the national refrigerant management program for ODS refrigerants recovered during the service, repair, or disposal of air conditioning and refrigeration appliances. Since then, EPA has revised these regulations, which are found at 40 CFR part 82, subpart F (“subpart F”), through subsequent rulemakings published between 1994 and 2020. Regulations issued under CAA section 608 include, among other things, the venting prohibition and sales restrictions for refrigerants (40 CFR 82.154); safe disposal of appliances (40 CFR 82.155); proper practices for the evacuation of refrigerant from appliances (40 CFR 82.156); required practices for appliance maintenance and leak repair (40 CFR 82.157); standards for recovery and/or recycling equipment (40 CFR 82.158); technician and reclaimer certification requirements (40 CFR 82.161 and 82.164, respectively); and reporting and recordkeeping requirements (40 CFR 82.166). Appendices A-E at 40 CFR part 82, subpart F provide, among other things, specifications for refrigerants, performance standards for refrigerant recovery, recycling, and/or reclaiming equipment, and standards for becoming a certifying program for technicians.

As it pertains to regulations under section 608 of the CAA, EPA is using the term “non-exempt substitute” in this document to refer to substitute refrigerants that have not been exempted from the venting prohibition under CAA section 608(c)(2) and § 82.154(a) in the relevant end-use. Similarly, the term “exempt substitute” refers to a substitute refrigerant that has been exempted from the venting prohibition under section 608(c)(2) and § 82.154(a) in the relevant end-use. A few exempt substitutes have been exempted from the venting prohibition in all applications. Notably, in 2016, EPA published a rule (81 FR 82272, November 18, 2016) updating existing refrigerant management requirements and extending the full set of the subpart F refrigerant management requirements, which prior to that rule applied only to ODS refrigerants,

to non-exempt substitute refrigerants, such as HFCs and hydrofluoroolefins (HFOs). Among the subpart F requirements extended to non-exempt substitute refrigerants in the 2016 CAA section 608 Rule were provisions that restrict the servicing of appliances and the sale of refrigerant to certified technicians, specify the proper evacuation levels before opening an appliance, require the use of certified refrigerant recovery and/or recycling equipment, require that refrigerant be recovered from appliances prior to disposal, require that appliances have a servicing aperture or process stub to facilitate refrigerant recovery, require that refrigerant reclaimers be certified to reclaim and sell used refrigerant, and establish standards for technician certification programs, recovery equipment, and established technical standards for the purity of reclaimed refrigerant. The 2016 CAA section 608 Rule also extended the appliance maintenance and leak repair provisions, currently codified at 40 CFR 82.157, to appliances that contain 50 or more pounds of non-exempt substitute refrigerant. The 2016 CAA section 608 Rule additionally made numerous revisions to improve the efficacy of the refrigerant management program as a whole, such as revisions of regulatory provisions for increased clarity and readability, and removal of provisions that had become obsolete.

The only 40 CFR part 82, subpart F requirements that applied to substitute refrigerants prior to the 2016 CAA section 608 Rule were the venting prohibition and certain exemptions from that prohibition, as set forth in § 82.154(a).

EPA reviewed the 2016 CAA section 608 Rule, focusing in particular on whether the Agency had the statutory authority to extend the full set of

subpart F refrigerant management regulations to non-exempt substitute refrigerants, such as HFCs and HFOs. In 2018, EPA proposed to withdraw the extension of the provisions of 40 CFR 82.157 to appliances using only non-exempt substitute refrigerants.

(83 FR 49332, October 1, 2018). In 2020, EPA published a final rule (85 FR 14150, March 11, 2020) withdrawing only the extension of the leak repair requirements—including requirements for repairing leaks, conducting leak inspections, and keeping applicable records—for appliances containing only such substitute refrigerants. Other subpart F provisions that were extended to substitute refrigerants in the 2016 CAA section 608 Rule, as mentioned above, were left in place for appliances containing only ODS substitute refrigerants. There were no changes to any of the regulatory requirements for ODS in the 2020 CAA section 608 Rule.

Ozone-depleting refrigerants and appliances that contain or use any amount of ODS continue to be subject to all applicable subpart F requirements, including those in 40 CFR 82.157.

Petitions for judicial review were filed on the 2016 CAA section 608 Rule and separately on the 2020 CAA section 608 Rule. Two industry coalitions, National Environmental Development Association's Clean Air Project (NEDA/CAP) and the Air Permitting Forum (APF), filed petitions for judicial review of the 2016 CAA section 608 Rule in the U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) in 2017. APF also filed an administrative petition for reconsideration before EPA regarding the 2016 CAA section 608 Rule.

In 2020, the Natural Resources Defense Council (NRDC) and a group of state and municipal petitioners

filed petitions for judicial review of the 2020 CAA section 608 Rule in the D.C. Circuit. NEDA/CAP also filed an administrative petition before EPA regarding the 2020 CAA section 608 Rule, which is styled as a petition for reconsideration or in the alternative a petition for rulemaking.

These four petitions for review were all consolidated under Case No. 20-1150 (D.C. Cir.) in July of 2020, and in August of 2020 the court severed four issues raised in NEDA/CAP and APF's administrative petitions for reconsideration and assigned them to a different case (Case No. 20-1309, D.C. Cir.). Both cases are now being held in abeyance.

APF Petition for Reconsideration, January 2017, available:

https://www.regulations.gov/document?D=EPA-HQ-OAR-2015-0453-0228.

The state and municipal petitioners are the State of New York, State of Connecticut, State of Illinois, State of Maine, State of Maryland, State of Minnesota, State of New Jersey, State of Oregon, Commonwealth of Virginia, State of Washington, District of Columbia, and City of New York.

NEDA/CAP Petitions for Reconsideration/Petition for Rulemaking, May 2020, available:

https://www.regulations.gov/document?D=EPA-HQ-OAR-2017-0629-0345.

On January 20, 2021, President Biden issued an “Executive Order on Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis,” which directed review of certain agency actions taken between January 20, 2017, and January 20, 2021. Exec. Order No. 13,990, 86 FR 7037 (Jan. 20, 2021). The 2020 CAA section 608 Rule was one of the actions subject to review under this Executive Order. In light of both EPA's review of the 2020 CAA section 608 Rule consistent with the Executive Order and the Agency's consideration of subsection (h) of the AIM Act, EPA has decided to initiate a rulemaking that, among other things, would involve evaluating the application of leak repair requirements to appliances using HFCs and substitute refrigerants under subsection (h). Because this proposed action is rooted in EPA's authority under the AIM Act, EPA is not reopening or otherwise addressing the question of its authority for such requirements under the CAA in this proposal.

2. Motor Vehicle Air Conditioning Servicing Program (CAA Section 609)

CAA section 609 directs EPA to issue regulations establishing standards and requirements for the servicing of MVACs. For purposes of the regulations implementing CAA section 609, “motor vehicle air conditioners”

is defined at 40 CFR 82.32(d) as mechanical vapor compression refrigeration equipment used to cool the driver's or passenger's compartment of any motor vehicle. This definition further states that it is not intended to encompass certain hermetically sealed refrigeration systems used on motor vehicles for refrigerated cargo and the air conditioning systems on passenger buses. For purposes of the section 609 regulations, motor vehicle is defined at 40 CFR 82.32(c) as any vehicle which is self-propelled and designed for transporting persons or property on a street or highway, including but not limited to passenger cars, light-duty vehicles, and heavy-duty (HD) vehicles. This definition further provides that it does not include a vehicle where final assembly of the vehicle has not been completed by the original equipment manufacturer (OEM).

A related definition for “MVAC-like appliance” is found at 40 CFR 82.152: MVAC-like appliance means a mechanical vapor compression, open-drive compressor appliance with a full charge of 20 pounds or less of refrigerant used to cool the driver's or passenger's compartment of off-road vehicles or equipment. This includes, but is not limited to, the air-conditioning equipment found on agricultural or construction vehicles. This definition is not intended to cover appliances using R-22 refrigerant.

Under CAA section 609 and regulations that implement it, no person repairing or servicing motor vehicles for consideration (

e.g.,

payment or bartering) may perform any service on an MVAC that involves the refrigerant

without properly using approved refrigerant recovery or recovery and recycling equipment, and no such person may perform such service for consideration unless such person has been properly trained and certified. Section 609 also contains restrictions on the sale or distribution, or offer for sale or distribution, of class I and class II substances suitable for use as a refrigerant in MVACs in containers of less than 20 pounds, except to a person performing service for consideration on MVAC systems.

Section 609(b)(1) defines the term “refrigerant,” “[a]s used in this section”, to mean “any class I or class II substance used in a motor vehicle air conditioner. Effective 5 years after November 15, 1990, the term `refrigerant' shall also include any substitute substance.” EPA's implementing regulations include a parallel definition of this term at 40 CFR 82.32(f).

Regulations issued under CAA section 609, codified at 40 CFR part 82, subpart B, include, among other things, prohibited and required practices for persons repairing and servicing MVACs for consideration (40 CFR 82.34); requirements for refrigerant handling equipment (40 CFR 82.36); approval processes for independent standards testing organizations (40 CFR 82.38); requirements for certifications that any person servicing or repairing MVACs for consideration must submit to EPA, and related recordkeeping requirements (40 CFR 82.42). Appendices A-F at 40 CFR part 82, subpart B, provide minimum operating requirements for equipment used for the recovery, recycling and/or recharging of refrigerant used in MVACs.

In 1992, EPA published a rule (57 FR 31242, July 14, 1992) under CAA section 609 establishing standards and requirements for servicing of MVACs and restricting the sale of small containers of ODS. The regulations, which appear in 40 CFR part 82, subpart B, require persons who repair or service MVACs for consideration to be certified in refrigerant recovery and recycling and to properly use approved equipment when performing service involving the refrigerant. Consistent with the definition in CAA section 609(b)(1), “refrigerant” is defined in

subpart B as any class I or class II substance used in MVACs, and to include any substitute substance effective November 15, 1995. The 1992 CAA section 609 Rule also defined approved refrigerant recycling equipment as equipment certified by the Administrator or an approved organization as meeting either one of the standards in 40 CFR 82.36. Such equipment extracts and recycles refrigerant or extracts but does not recycle refrigerant, allowing that refrigerant to be subsequently recycled on-site or to be sent off-site for reclamation.

EPA based the regulatory equipment standards in subpart B on those developed by SAE. They cover service procedures for dichlorodifluoromethane (CFC-12 or R-12) recover/recycle equipment (SAE J1989, issued in October 1989), test procedures to evaluate R-12 recover/recycle equipment (SAE J1990, issued in October 1989 and revised in 1991) and a purity standard for recycled R-12 refrigerant (SAE J1991, issued in October 1989). Only equipment certified to meet the standards set forth in appendix A at 40 CFR part 82, subpart B, or that meet the criteria for substantially identical equipment, was approved under CAA section 609 for use in the servicing of MVACs at that time.

Equipment that extracts and recycles refrigerant is referred to as recover/recycle equipment. Equipment that extracts but does not recycle refrigerant is referred to as equipment that recovers but does not recycle refrigerant, or as recover-only equipment.

EPA issued another rule under CAA section 609 in 1997 (62 FR 68026, December 30, 1997) in response to the increasing use of substitute refrigerants, particularly 1,1,1,2-tetrafluoroethane (HFC-134a or R-134a). The 1997 CAA section 609 Rule established standards and requirements for the servicing of MVACs that use any refrigerant other than R-12. The rule also stated that refrigerant (whether R-12 or a substitute) recovered from motor vehicles at motor vehicle disposal facilities may be re-used in the MVAC service sector only if it has been properly recovered and recycled by persons who are either employees, owners, or operators of the facilities, or technicians certified under CAA section 609, using approved equipment. This differs from the rules established under CAA section 608, in which no person may sell or distribute, or offer for sale or distribution, used refrigerant (including both ODS and non-exempt substitutes such as HFCs) unless it has first been reclaimed by a certified reclaimer (40 CFR 82.154(d)). The 1997 CAA section 609 Rule also established conditions under which owners and operators of motor vehicle disposal facilities may sell refrigerant recovered from such vehicles to technicians certified under CAA section 609.

3. Significant New Alternatives Policy Program (CAA Section 612)

EPA identifies and evaluates substitutes for ODS in certain industrial sectors, including RACHP; aerosols; and foams. To a very large extent, HFCs are used in the same sectors and subsectors as where ODS historically have been used. Under SNAP, EPA evaluates acceptability of substitutes for ODS based primarily on the potential human health and environmental risks, relative to other substances used for the same purpose. In so doing, EPA assesses atmospheric effects such as ozone depletion potential (ODP) and GWP, exposure assessments, toxicity data, flammability, and other environmental impacts. This assessment could take a wide range of forms, such as a theoretical evaluation of the properties of the substitute, a computer simulation of the substitute's performance in the sector or subsector, lab-scale (table-top) evaluations of the substitute, or equipment tests under various conditions.

IV. How is EPA proposing to regulate the management of HFCs and their substitutes?

As described in the following sections, EPA is proposing to establish a program for the management of HFCs under subsection (h) of the AIM Act that includes requirements regarding several topics, including leak repair requirements for certain refrigerant-containing appliances and use of ALD systems for certain equipment; use of reclaimed HFCs in certain sectors or subsectors for the initial charge or installation of equipment and for servicing and/or repair of existing equipment; the servicing, repair, disposal, or installation of fire suppression equipment that contains HFCs, as well as requirements related to technician training in the fire suppression sector; recovery of HFCs from cylinders; and container tracking for HFCs that could be used in the servicing, repair, and/or installation of equipment. EPA intends for the proposed provisions for these topics to be able to stand independently from one another and has designed them accordingly. For example, the proposed leak repair requirements for refrigerant-containing appliances are designed to operate independently from the proposed requirements for servicing, repair, disposal, or installation of fire suppression equipment.

A. What definitions is EPA proposing to implement under subsection (h)?

The Allocation Framework Rule (86 FR 55116, October 5, 2021) established regulatory definitions at 40 CFR part 84, subpart A (“subpart A”) to implement the framework for, and begin the regulatory phasedown of, HFCs under the AIM Act, and EPA has finalized certain revisions to the definitions section of subpart A at 40 CFR 84.3 (

see

88 FR at 46836, July 20, 2023).

The proposed Technology Transitions Rule (87 FR 76738, December 15, 2022) would establish additional regulatory definitions in 40 CFR part 84, subpart B (“subpart B”) as part of its first proposed rulemaking related to implementing subsection (i) of the AIM Act, entitled “Technology Transitions”. EPA anticipates that any final Technology Transitions rule under subsection (i) would be available in the docket for that action. To maintain consistency, except as otherwise explained in this proposal, EPA generally intends to use terms in this proposal, and in the new subpart C which is to be established by this rule, as they are defined in subpart A. Thus, for terms not defined in this subpart but that are defined in subpart A (40 CFR 84.3), the definitions in 40 CFR 84.3 would apply. Although EPA has not yet finalized the regulatory definitions that would apply under the Technology Transitions program, we also anticipate considering any regulatory definitions that may be finalized at subpart B as we are developing this rulemaking under subsection (h) of the AIM Act in an effort to promote consistency where appropriate. Accordingly, we anticipate that for terms that are not defined in subparts A or C, but that are defined in subpart B, the subpart B definitions would apply under the new subpart C.

The proposed revisions in 40 CFR 84.3 are described in EPA's proposed Allowance Allocation Methodology for 2024 and Later Years rule, which was published on October 21, 2022 (87 FR 66372). This rulemaking focuses on the second phase of the HFC phasedown and, among other things, proposes to establish the allocation methodology for the “general pool” of HFC production and consumption allowances for 2024 through 2028. Available at:

https://www.epa.gov/climate-hfcs-reduction/proposed-rule-allowance-allocation-methodology-2024-and-later-years.

EPA welcomes comment on all definitions proposed in this action and in particular, whether it should adopt different definitions for any of the terms defined in subpart A or proposed to be defined in subpart B for purposes of this rulemaking under subsection (h) of the AIM Act. While EPA is seeking

comment on the definitions as proposed for the new subpart C, in this rulemaking, the Agency is not reopening, taking comment, or proposing to modify the definitions as finalized in subpart A or those proposed under subpart B. The Agency also welcomes comment on the terms that are newly defined for this proposed rule under subsection (h) as well as if there are any additional definitions that are needed to ensure a common understanding of terminology.

1. Which definitions is EPA proposing to adopt that parallel definitions in 40 CFR 82.152?

EPA is proposing to adopt definitions for the following terms that are similar to the definitions for the same terms used in 40 CFR 82.152, which includes definitions implementing section 608 of the CAA, with only limited changes as are needed to conform with the AIM Act or this proposed action. EPA is proposing to use this approach for these previously defined terms because they are used in the same or substantially similar manner as in 40 CFR part 82, subpart F. Specifically, 40 CFR 82.152 includes definitions implementing section 608 in CAA Title VI, which is relevant to HFC management. As noted in section III.A. of this proposal, HFCs were intentionally developed to replace class I and class II ODS and are used in the same applications. The approach EPA is proposing to implement subsection (h) of the AIM Act is informed by the Agency's experience with CAA Title VI. For example, EPA's current regulations under section 608 of the CAA require certain refrigerant management practices by reclaimers, those who buy or sell refrigerant, technicians, owners and operators of refrigerant-containing appliances, and others. Because many in the regulated community are subject to both the AIM Act and CAA section 608, maintaining the same or similar definitions, where consistent with AIM Act requirements, would provide consistency to those that have been using and are familiar with these terms from CAA section 608 regulations. Because EPA's authority under the AIM Act extends beyond the sectors covered by the regulations at 40 CFR part 82, subpart F, where it is necessary for clarity, EPA is specifying where these definitions specifically apply to the terms as they refer to refrigerant-containing appliances.

Comfort cooling

means the refrigerant-containing appliances used for air conditioning to provide cooling in order to control heat and/or humidity in occupied facilities including but not limited to residential, office, and commercial buildings. Comfort cooling appliances include but are not limited to chillers, commercial split systems, and packaged roof-top units.

Commercial refrigeration

means the refrigerant-containing appliances used in the retail food and cold storage warehouse subsectors. Retail food appliances include the refrigeration equipment found in supermarkets, convenience stores, restaurants and other food service establishments. Cold storage includes the refrigeration equipment used to store meat, produce, dairy products, and other perishable goods.

Component,

as it relates to a refrigerant-containing appliance, means a part of the refrigerant circuit within an appliance including, but not limited to, compressors, condensers, evaporators, receivers, and all of its connections and subassemblies.

Custom-built

means that the industrial process refrigeration equipment or any of its components cannot be purchased and/or installed without being uniquely designed, fabricated and/or assembled to satisfy a specific set of industrial process conditions.

Disposal,

as it relates to a refrigerant-containing appliance, means the process leading to and including:

(1) The discharge, deposit, dumping or placing of any discarded refrigerant-containing appliance into or on any land or water;

(2) The disassembly of any refrigerant-containing appliance for discharge, deposit, dumping or placing of its discarded component parts into or on any land or water;

(3) The vandalism of any refrigerant-containing appliance such that the refrigerant is released into the environment or would be released into the environment if it had not been recovered prior to the destructive activity;

(4) The disassembly of any refrigerant-containing appliance for reuse of its component parts; or

(5) The recycling of any refrigerant-containing appliance for scrap.

As with all the proposed definitions, this proposed definition of “disposal,” as it relates to a refrigerant-containing appliance, is limited to how the term is would be used in 40 CFR part 84 subpart C.

Follow-up verification test,

as it relates to a refrigerant-containing appliance, means those tests that involve checking the repairs to an appliance after a successful initial verification test and after the appliance has returned to normal operating characteristics and conditions to verify that the repairs were successful. Potential methods for follow-up verification tests include, but are not limited to, the use of soap bubbles as appropriate, electronic or ultrasonic leak detectors, pressure or vacuum tests, fluorescent dye and black light, infrared or near infrared tests, and handheld gas detection devices.

Full charge,

as it relates to a refrigerant-containing appliance, means the amount of refrigerant required for normal operating characteristics and conditions of the appliance as determined by using one or a combination of the following four methods:

(1) Use of the equipment manufacturer's determination of the full charge;

(2) Use of appropriate calculations based on component sizes, density of refrigerant, volume of piping, and other relevant considerations;

(3) Use of actual measurements of the amount of refrigerant added to or evacuated from the appliance, including for seasonal variances; and/or

(4) Use of an established range based on the best available data regarding the normal operating characteristics and conditions for the appliance, where the midpoint of the range will serve as the full charge.

Industrial process refrigeration

means complex customized refrigerant-containing appliances that are directly linked to the processes used in, for example, the chemical, pharmaceutical, petrochemical, and manufacturing industries. This sector also includes industrial ice machines, appliances used directly in the generation of electricity, and ice rinks. Where one appliance is used for both industrial process refrigeration and other applications, it will be considered industrial process refrigeration equipment if 50 percent or more of its operating capacity is used for industrial process refrigeration.

Initial verification test,

as it relates to a refrigerant-containing appliance, means those leak tests that are conducted after the repair is finished to verify that a leak or leaks have been repaired before refrigerant is added back to the appliance.

Leak rate,

as it relates to a refrigerant-containing appliance, means the rate at which an appliance is losing refrigerant, measured between refrigerant charges. The leak rate is expressed in terms of the percentage of the appliance's full charge that would be lost over a 12-month period if the current rate of loss were to continue over that period. The rate must be calculated using one of the following methods. The same method

must be used for all appliances subject to the leak repair requirements located at an operating facility.

(1) Annualizing Method.

(i)

Step 1.

Take the number of pounds of refrigerant added to the appliance to return it to a full charge, whether in one addition or if multiple additions related to same leak, and divide it by the number of pounds of refrigerant the appliance normally contains at full charge;

(ii)

Step 2.

Take the shorter of the number of days that have passed since the last day refrigerant was added or 365 days and divide that number by 365 days;

(iii)

Step 3.

Take the number calculated in Step 1 and divide it by the number calculated in Step 2; and

(iv)

Step 4.

Multiply the number calculated in Step 3 by 100 to calculate a percentage. This method is summarized in the following formula:

EP19OC23.000

(2) Rolling Average Method.

(i)

Step 1.

Take the sum of the pounds of refrigerant added to the appliance over the previous 365-day period (or over the period that has passed since the last successful follow-up verification test showing all identified leaks in the appliance were repaired, if that period is less than one year);

(ii)

Step 2.

Divide the result of Step 1 by the pounds of refrigerant the appliance normally contains at full charge; and

(iii)

Step 3.

Multiply the result of Step 2 by 100 to obtain a percentage. This method is summarized in the following formula:

EP19OC23.001

As discussed in section IV.C.4. of this proposal, EPA is clarifying that owner/operators that wish to preemptively repair leaks and then run the leak rate calculation once refrigerant has been added to the repaired appliance for the follow-up verification test may do so, assuming all applicable time windows are adhered to. Additionally, owner/operators may use the amount of refrigerant lost in lieu of the amount of refrigerant added to run the leak rate calculation prior to adding refrigerant if they have a valid method of determining the amount of refrigerant lost (

e.g.,

evacuating the appliance and comparing the amount of refrigerant evacuated to the full charge).

Mothball,

as it relates to a refrigerant-containing appliance, means to evacuate refrigerant from an appliance, or the affected isolated section or component of an appliance, to at least atmospheric pressure, and to temporarily shut down that appliance.

MVAC-like appliance

means a mechanical vapor compression, open-drive compressor refrigerant-containing appliance with a full charge of 20 pounds or less of refrigerant used to cool the driver's or passenger's compartment of off-road vehicles or equipment. This includes, but is not limited to, the air-conditioning equipment found on agricultural or construction vehicles. This definition is intended to have the same meaning as defined in 40 CFR 82.152.

This proposed definition deviates slightly from the definition of “MVAC-like appliance” at 40 CFR 82.152 to conform to the AIM Act grant of authority. As noted, this definition is intended to have the same meaning as defined 40 CFR 82.152.

Normal operating characteristics and conditions,

as it relates to a refrigerant-containing appliance, means appliance operating temperatures, pressures, fluid flows, speeds, and other characteristics, including full charge of the appliance, that would be expected for a given process load and ambient condition during normal operation. Normal operating characteristics and conditions are marked by the absence of atypical conditions affecting the operation of the appliance.

Refrigerant circuit,

as it relates to a refrigerant-containing appliance, means the parts of an appliance that are normally connected to each other (or are separated only by internal valves) and are designed to contain refrigerant.

Retire,

as it relates to a refrigerant-containing appliance, means the removal of the refrigerant and the disassembly or impairment of the refrigerant circuit such that the appliance as a whole is rendered unusable by any person in the future.

Seasonal variance,

as it relates to a refrigerant-containing appliance, means the removal of refrigerant from an appliance due to a change in ambient conditions caused by a change in season, followed by the subsequent addition of an amount that is less than or equal to the amount of refrigerant removed in the prior change in season, where both the removal and addition of refrigerant occurs within one consecutive 12-month period.

Technician,

as it relates to any person who works with refrigerant-containing appliances, means any person who in the course of servicing, repair, or installation of a refrigerant-containing appliance (except MVACs) could be reasonably expected to violate the integrity of the refrigerant circuit and therefore release refrigerants into the environment. Technician also means any person who, in the course of disposal of a refrigerant-containing appliance (except small appliances as defined in 40 CFR 82.152, MVACs, and MVAC-like appliances), could be reasonably expected to violate the integrity of the refrigerant circuit and therefore release refrigerants from the appliances into the environment. Activities reasonably expected to violate

the integrity of the refrigerant circuit include but are not limited to: Attaching or detaching hoses and gauges to and from the appliance; adding or removing refrigerant; adding or removing components; and cutting the refrigerant line. Activities such as painting the appliance, rewiring an external electrical circuit, replacing insulation on a length of pipe, or tightening nuts and bolts are not reasonably expected to violate the integrity of the refrigerant circuit. Activities conducted on refrigerant-containing appliances that have been properly evacuated pursuant to § 82.156 are not reasonably expected to release refrigerants unless the activity includes adding refrigerant to the appliance. Technicians could include but are not limited to installers, contractor employees, in-house service personnel, and owners and/or operators of refrigerant-containing appliances. This proposed definition deviates slightly from the definition of “technician” at 40 CFR 82.152 to conform to the AIM Act grant of authority. EPA is also proposing a definition of “certified technician” to make it clear that persons certified per 40 CFR 82.161 are considered “certified technicians” for the purposes of these regulations. In section VIII. of this preamble, EPA is taking advanced comment on considerations for a future rulemaking on technician training.

2. Which definitions is EPA proposing to adopt that parallel definitions in 40 CFR 82.32?

EPA is proposing to adopt definitions for the following defined terms that are similar to the definitions used in 40 CFR 82.32 with limited changes as are needed to conform with the AIM Act or this proposal. EPA is proposing this approach for these defined terms because they are used in the same or substantially similar manner as in 40 CFR part 82, subpart B—Servicing of Motor Vehicle Air Conditioners under the CAA. Section 609 in Title VI of the CAA is relevant to refrigerant management, as it directs EPA to establish standards and requirements regarding the servicing of MVACs. For example, under CAA section 609 and regulations that implement it, no person repairing or servicing motor vehicles for consideration (

e.g.,

payment or bartering) may perform any service on an MVAC that involves the refrigerant without properly using approved refrigerant recovery or recovery and recycling equipment, and no such person may perform such service for consideration unless such person has been properly trained and certified. Because many within the regulated community are subject to both the AIM Act and CAA section 609, maintaining the same definitions, where consistent with AIM Act requirements, would provide consistency to those that have been using and are familiar with these terms from section 609. EPA welcomes comment on whether any of these terms should be further updated or modified for purposes of this rulemaking under subsection (h) of the AIM Act.

Motor vehicle

as used in this subpart means any vehicle which is self-propelled and designed for transporting persons or property on a street or highway, including but not limited to passenger cars, light-duty vehicles, and heavy-duty vehicles. This definition does not include a vehicle where final assembly of the vehicle has not been completed by the original equipment manufacturer.

Motor vehicle air conditioners (MVAC)

means mechanical vapor compression refrigerant-containing appliances used to cool the driver's or passenger's compartment of any motor vehicle. This definition is intended to have the same meaning as defined in 40 CFR 82.32.

3. What other definitions is EPA proposing to adopt?

EPA is also proposing to establish definitions for new terms that are applicable only under 40 CFR part 84, subpart C, and do not have a counterpart in the definitions under 40 CFR part 84, subpart A and that we do not anticipate will have a counterpart in any definitions that may be finalized in subpart B. The definitions that EPA is proposing to include in 40 CFR 84.102 for application to 40 CFR part 84, subpart C are as follows:

Certified technician

means a technician that has been certified per the provisions at 40 CFR 82.161.

Equipment

means any device that contains, uses, detects or is otherwise connected or associated with a regulated substance or substitute for a regulated substance, including any refrigerant-containing appliance, component, or system.

Fire suppression equipment

means any device that is connected to or associated with a regulated substance or substitute for a regulated substance, including blends and mixtures, consisting in part or whole of a regulated substance or a substitute for a regulated substance, and that is used for fire suppression purposes. This term includes any such equipment, component, or system. This term does not include mission-critical military end uses and systems used in deployable and expeditionary situations. This term also does not include space vehicles as defined in 40 CFR 84.3.

EPA is proposing to explicitly state that the definition of “fire suppression equipment” for purposes of subsection (h) does not include mission-critical military end uses and systems used in deployable and expeditionary applications, as well as space vehicles. This proposed exclusion is based on EPA's understanding that there are situations in which the unique design and use of mission-critical military end uses and systems used in deployable and expeditionary situations and space vehicles make it impossible to recover fire suppression agent during the service, repair, disposal, or installation of the equipment.

Fire suppression technician

means any person who in the course of servicing, repair, disposal, or installation of fire suppression equipment could be reasonably expected to violate the integrity of the fire suppression equipment and therefore release fire suppressants into the environment.

Installation

means the process of setting up equipment for use, which may include steps such as completing the refrigerant circuit, including charging equipment with a regulated substance or substitute for a regulated substance, or connecting cylinders containing a regulated substance or a substitute for a regulated substance to a total flooding fire suppression system, such that the equipment can function and is ready for use for its intended purpose.

This definition of “installation” for purposes of subsection (h) is different from how the term is used in the definitions in the proposed Technology Transitions Rule (87 FR 76738, December 15, 2022). Specifically, the definition for “manufacture” in that proposed rule covers the installation of certain appliances in certain subsectors (

e.g.,

commercial refrigeration and IPR). In discussing the definition for “manufacture” in that proposed rule, EPA described that for these types of appliances, complex installation processes may be required, and the appliance is typically manufactured and field-charged with refrigerant on-site. Further, appliances such as these that are field charged or have the refrigerant circuit completed on-site are considered manufactured at the point when installation of all the components and other parts are completed, and the appliance is fully charged with refrigerant and able to operate. For purposes of the proposed Technology Transitions Rule (87 FR 76738, December 15, 2022), the installation

date of such equipment is relevant to the proposed GWP limit-based restriction and compliance date for the applicable subsector(s).

The types of installations covered under the proposed definition of “manufacture” in the proposed Technology Transitions Rule (87 FR 76738, December 15, 2022) would be included in the proposed definition of “installation” in this proposal under subsection (h), and other types of installation would also be included in the definition included in this proposal. EPA is proposing a broad definition of “installation” under subsection (h) in order to ensure that the Agency's implementation of subsection (h)(1) encompasses the practices, processes or activities that are relevant to the installation of equipment that would be regulated under this proposal.

Leak inspection,

as it relates to a refrigerant-containing appliance, means the examination of an appliance to detect and determine the location of refrigerant leaks. Potential methods include, but are not limited to, ultrasonic tests, gas-imaging cameras, bubble tests as appropriate, or the use of a leak detection device operated and maintained according to manufacturer guidelines. Methods that determine whether the appliance is leaking refrigerant but not the location of a leak, such as standing pressure/vacuum decay tests, sight glass checks, viewing receiver levels, pressure checks, and charging charts, must be used in conjunction with methods that can determine the location of a leak.

This definition generally aligns with the corresponding definition at 40 CFR 82.152, except EPA is proposing to add the “detect and” language. In EPA's view, including “detect and” clarifies that a leak inspection is not just to determine the precise location of a known leak, but also to detect additional leaks that may be contributing to a leak rate exceedance.

Owner or operator

means any person who owns, leases, operates, or controls any equipment, or who controls or supervises any practice, process, or activity that is subject to any requirement pursuant to this subpart.

Recover

means the process by which a regulated substance, or where applicable, a substitute for a regulated substance, is removed, in any condition, from equipment; and stored in an external container, with or without testing or processing the regulated substance or substitute for a regulated substance.

In the regulations implementing under subsection (h), EPA is proposing to define the term “recover” as it is defined in subsection (b)(10) of the AIM Act for HFCs and to extend the regulatory definition to substitutes for HFCs. The term “recover” is defined in the AIM Act at subsection (b)(10) as “the process by which a regulated substance” is “removed, in any condition, from equipment” and “stored in an external container, with or without testing or processing the regulated substance.” EPA is proposing to include that the term recover also apply to substitutes for regulated substances in these regulations to support implementation of subsection (h)(1), which authorizes certain regulations involving substitutes for regulated substitutes. Substitutes for regulated substances are used in the same applications and often the same equipment as the regulated substances that they are being used in place of. Thus, recovering the substitute for a regulated substance would also occur, as appropriate, during the servicing, repair, or disposal of equipment and could be addressed by regulations under subsection (h)(1). Thus, including substitutes for regulated substances in the regulatory definition of “recover” provides clarity and supports application of these regulations to both regulated substances and their substitutes.

Recycling,

when referring to fire suppression or fire suppressants, means the testing and/or reprocessing of regulated substances used in the fire suppression sector to certain purity standards.

Refrigerant,

for purposes of this subpart, means any substance, including blends and mixtures, consisting in part or whole of a regulated substance or a substitute for a regulated substance that is used for heat transfer purposes, including those that provide a cooling effect.

Refrigerant-containing appliance

means any device that contains and uses a regulated substance or substitute for a regulated substance as a refrigerant including any air conditioner, motor vehicle air conditioner, refrigerator, chiller, or freezer. For a system with multiple circuits, each independent circuit is considered a separate appliance.

As the terms “appliance” and “refrigerant-containing appliance” are not defined terms under the AIM Act, the regulatory definition will provide clarity as to what types of equipment would be subject to certain proposed requirements. EPA intends this term to be a subset of the broader category of “equipment” subject to subsection (h) of the AIM Act. EPA notes that this proposed definition differs from the definition of “appliance” under section 608 of the CAA. Sections 601 and 608 of the CAA specified that an appliance “is used for household or commercial purposes,” and that phrase also appears in the definition of “appliance” in 40 CFR 82.152. The AIM Act has no analogous provision. Accordingly, EPA is not proposing to include that phrase in defining “refrigerant-containing appliance” for purposes of implementing subsection (h). In keeping with the application of Title VI of the CAA (

e.g.,

under sections 608 and 612), EPA is defining a “refrigerant-containing appliance” to consist of an independent circuit. The independent circuit provides the desired cooling or heating effect, typically consisting of a compressor, condenser, evaporator, and metering device in an enclosed refrigerant loop. EPA notes that a given piece of equipment could contain multiple independent circuits and thus be considered as multiple, separate “refrigerant-containing appliances.” For instance, some food retail cases have been made with multiple independent circuits, each one containing the maximum 150-gram charge limit of propane, thus allowing a single case to address a higher refrigeration load. Also, some household refrigerator-freezers have been produced with two independent circuits, one handling the refrigerator and another the freezer.

Refrigerant-containing equipment

means equipment as defined in this subpart that contains, uses, or is otherwise connected or associated with a regulated substance or substitute for a regulated substance that is used as a refrigerant. This definition includes refrigerant-containing components, refrigerant-containing appliances, and MVAC-like appliances. This term does not include mission-critical military end uses and systems used in deployable and expeditionary situations. This term also does not include space vehicles as defined in 40 CFR 84.3.

EPA is proposing to explicitly state that the definition of “refrigerant-containing equipment” under subsection (h) does not include mission-critical military end uses and systems used in deployable and expeditionary applications, as well as space vehicles. This proposed exclusion is based on EPA's understanding that there are situations in which the unique design and use of mission-critical military end uses and systems used in deployable and expeditionary situations and space vehicles make it impossible to recover refrigerant during the service, repair, disposal, or installation of the equipment. Likewise, requiring adherence to the leak repair and other

proposed provisions for refrigerant-containing equipment in this proposal in an active military zone of engagement, including systems used in deployable and expeditionary situations, could lessen the military effectiveness of the equipment. Likewise, requiring leak repair and other provisions in this proposal for such equipment in space vehicles could lessen their effectiveness.

Repackager

means an entity who transfers regulated substances, either alone or in a blend, from one container to another container prior to sale or distribution or offer for sale or distribution. An entity that services system cylinders for use in fire suppression equipment and returns the same regulated substances to the same system cylinder it was recovered from after the system cylinder is serviced is not a repackager.

Repair,

for purposes of this subpart and as it relates to a particular leak in a refrigerant-containing appliance, means making adjustments or other alterations to that refrigerant-containing appliance that have the effect of stopping leakage of refrigerant from that particular leak.

Reprocess

means using procedures, such as filtering, drying, distillation and other chemical procedures to remove impurities from a regulated substance or a substitute for a regulated substance.

Retrofit,

as it relates to a refrigerant-containing appliance, means to convert an appliance from one refrigerant to another refrigerant. Retrofitting includes the conversion of the appliance to achieve system compatibility with the new refrigerant and may include, but is not limited to, changes in lubricants, gaskets, filters, driers, valves, o-rings or appliance components. Retrofits required under this subpart shall be done to a refrigerant with a lower global warming potential. EPA is proposing this definition as similar to the parallel definition in 40 CFR 82.152, with an additional provision requiring that retrofits performed for compliance with this rulemaking must involve switching to a lower GWP refrigerant. EPA is proposing to include this provision as part of this definition for the purposes of this action so that if an owner or operator chooses to retrofit a refrigerant-containing appliance in lieu of repairing a leak, the retrofit must use a refrigerant that is a lower GWP in the original equipment. One implication of including this provision would be that if there are cases in which switching to a lower GWP refrigerant is not an option (

e.g.,

for reasons such as safety considerations or a refrigerant with a lower GWP is not suitable for use in a particular refrigerant-containing appliance), a retrofit would not be available as a compliance option for the particular refrigerant-containing appliance. Additional detail on the requirements of performing a retrofit and developing a retrofit plan can be found in section IV.C.3.f. of this preamble.

Stationary refrigerant-containing equipment

means refrigerant-containing equipment, as defined in this subpart, that is not a motor vehicle air conditioner or MVAC-like appliance, as defined in this subpart.

Substitute for a regulated substance

means a substance that can be used in equipment in the same or similar applications as a regulated substance, to serve the same or a similar purpose, including but not limited to a substance used as a refrigerant in a refrigerant-containing appliance or as a fire suppressant in fire suppression equipment, provided that the substance is not a regulated substance or an ozone-depleting substance.

EPA is proposing for the purposes of this action to define a substitute for a regulated substance to make clear that substitutes in this rulemaking would not include regulated substances or ozone-depleting substances. Examples of a substitute for a regulated substance include but are not limited to HFOs, hydrocarbons (

e.g.,

propane, isobutane), ammonia (NH

), and CO

. A substitute for a regulated substance may be used neat or in a blend. Subsection (h) includes authority for EPA to develop regulations involving regulated substances and substitutes for regulated substances. Specifically, subsection (h)(1) expressly provides that EPA is to promulgate certain regulations involving a regulated substance, a substitute for a regulated substance, the reclaiming of a regulated substance as a refrigerant, or the reclaiming of a substitute for a regulated substance as a refrigerant. EPA acknowledges that this definition of “substitute for a regulated substance” differs from the definition of the similar term, “substitute”

in the proposed Technology Transitions Rule (87 FR 76738, December 15, 2022). EPA is proposing this definition for purposes of implementing subsection (h), because specifying that substitutes for a regulated substance are only those substances that do not contain HFCs will draw a distinction that is helpful for certain provisions in this proposal, as EPA is proposing to control certain practices, processes, or activities as they relate to regulated substances differently from compared to how they relate to substitutes for regulated substances. As EPA has noted in the Executive Summary at section I.A., the terms “HFC” and “regulated substance” are used interchangeably in this preamble. Similarly, throughout this preamble, EPA notes that the term “substitute for an HFC” may be used interchangeably with “substitute for a regulated substance” in this preamble.

The proposed definition for

substitute

in the proposed Technology Transitions rule is: “any substance, product, or alternative manufacturing process, whether existing or new, that is used, or intended for use, in a sector or subsector with a lower global warming potential than the regulated substance, whether neat or used in a blend, to which a use restriction would apply.” (See 87 FR 76738, 76754, December 15, 2022). EPA further notes that it has not made final decisions for the Technology Transitions rule.

Virgin regulated substance

means any regulated substance that has not had any bona fide use in equipment except for those regulated substances contained in the heel or the residue of a container that has bona fide use in the servicing, repair, or installation of equipment.

EPA is proposing to add this definition of “virgin regulated substance” to make it clear that introduction of a regulated substance to equipment, such as a refrigerant-containing appliance or fire suppression equipment, solely to convert the regulated substance to “used” regulated substance in order to circumvent the intended requirements of this proposal is not permissible. This scenario, where regulated substance is charged to equipment, such as a refrigerant-containing appliance or fire suppression equipment, and recovered without any bona fide use, was brought to EPA's attention by stakeholders including during public stakeholder meetings as the agency developed this proposal.

A regulated substance that has had no bona fide use in equipment would be considered a virgin regulated substance unless it was from the heel or residue of a container that did have a bona fide use in the servicing, repair, or installation of equipment.

EPA held stakeholder meetings for public input on November 9, 2022 and March 16, 2023 as well as solicited feedback through a webinar for the EPA GreenChill Partnership program on April 12, 2023.

B. Which sectors and subsectors is EPA considering addressing under subsection (h)?

Subsection (h) of the AIM Act provides EPA authority to promulgate regulations to control, where appropriate, any practice, process, or activity related to the servicing, repair, disposal, or installation of equipment that involves HFCs or their substitutes, or the reclaiming of HFCs or their substitutes used as refrigerants. EPA

interprets this provision to include authority to regulate, as appropriate, practices, processes, or activities related to any sector, subsector, or application where a regulated substance or a substitute for a regulated substance is used in equipment. Regulated substances and their substitutes are typically used in the RACHP sector as a refrigerant in a vapor compression cycle to cool and/or dehumidify a substance or space, like a refrigerator cabinet, room, office building, or warehouse. Regulated substances and/or their substitutes may also be used in other sectors, subsectors, or applications, such as aerosols, fire suppression, solvent cleaning, foam blowing, and others. However, as noted in section II.B. of this proposal, subsection (h)(4) expressly provides that any rulemaking under subsection (h) shall not apply to a regulated substance or a substitute for a regulated substance that is contained in a foam. Thus, EPA is not proposing any requirements for regulated substances or their substitutes when they are contained in foams in this proposal. Accordingly, EPA interprets its authority under subsection (h) to include promulgating regulations that control the types of practices, processes, or activities identified in subsection (h)(1) in any of those sectors, subsectors, or applications, with the limitation that we do not interpret our regulatory authority under subsection (h) to extend to HFCs or substitutes for HFCs when they are contained in foams.

EPA is proposing requirements for equipment in certain sectors or subsectors as described in sections IV.C.-F. of this preamble. While EPA interprets subsection (h) to provide authority that could be applied to practices, processes, or activities related to equipment across a broad range of sectors, subsectors, or applications that involve regulated substances and/or their substitutes, at this time EPA is focusing on certain sectors and subsectors in the requirements proposed in the rulemaking. In future rulemakings, EPA may consider establishing requirements for equipment in other sectors, subsectors, or applications that involve regulated substances and/or their substitutes. The relevant sections of this preamble describe the requirements that EPA is proposing for equipment in certain sectors and subsectors and how EPA understands these sectors and subsectors as relevant for these proposed requirements.

Where EPA is proposing requirements for certain sectors or subsectors, we intend to be consistent with how those sectors or subsectors are understood under other provisions of the AIM Act and/or CAA Title VI that address the same sector or subsector, such as subsection (i) of the AIM Act, through the Technology Transitions program. EPA issued a proposed Technology Transition rulemaking on December 15, 2022 (87 FR 76738) which provides additional detail on many of the same sectors and subsectors for which we are proposing certain requirements under subsection (h). Although EPA has not yet made final decisions regarding those sectors or subsectors under subsection (i) of the AIM Act, we also anticipate considering how those sectors or subsectors are addressed in the final Technology Transitions rulemaking in developing this rulemaking under subsection (h) of the AIM Act.

EPA is proposing certain provisions, as described later in this preamble, for certain equipment in applicable subsectors within the RACHP sector in this action. Such subsectors within the RACHP sector include: residential and light commercial air conditioning and heat pumps; cold storage warehouses; IPR; stand-alone retail food refrigeration; supermarket systems; refrigerated transport; and automatic commercial ice makers. EPA is also proposing certain provisions for equipment in the fire suppression sector, as described later in this preamble. Not all provisions proposed in this rulemaking would apply to each of the sectors and subsectors identified here. For example, EPA is proposing certain requirements for the use of reclaimed HFCs in residential and light commercial AC and heat pumps. However, EPA is proposing to exempt residential and light commercial AC and heat pump equipment in the universe of refrigerant-containing appliances subject to proposed leak repair requirements. Additional detail can be found in section IV.C.2. of this preamble.

EPA is requesting comment on all aspects of this proposed rule. Where EPA is proposing requirements for equipment in certain sectors and subsectors, EPA is providing additional detail noting specific areas for which we are seeking comment.

C. How is EPA proposing to address leak repair?

1. Background

As noted above, subsection (h) of the AIM Act includes provisions focused on the management of regulated substances. Specifically, subsection (h)(1) directs EPA, for “purposes of maximizing reclaiming and minimizing the release of a regulated substance from equipment and ensuring the safety of technicians and consumers,” to “promulgate regulations to control, where appropriate, any practice, process, or activity regarding the servicing, repair, disposal, or installation of equipment (including requiring, where appropriate, that any such servicing, repair, disposal, or installation be performed by a trained technician meeting minimum standards, as determined by the Administrator) that involves”: “a regulated substance”; “a substitute for a regulated substance”; “the reclaiming of a regulated substance used as a refrigerant”; or “the reclaiming of a substitute for a regulated substance used as a refrigerant.”

Among other things, EPA interprets its regulatory authority under subsection (h)(1) to include authority to establish requirements related to the detection, prevention, and repair of leaks for equipment containing HFCs or substitutes for HFCs (whether the equipment uses the HFC or substitute for an HFC neat or in a blend with other substances). EPA understands the statutory phrase “regulations to control . . . any practice, process, or activity” as including authority for rules governing both the manner in which a practice, process, or activity occurs (

e.g.,

standards that must be met, timing of the process or activity, etc.), as well as rules requiring that a practice, process, or activity be undertaken. Regulations establishing requirements for leak prevention, detection, and repair would control practices, processes, and activities regarding the servicing, repair, disposal, or installation of equipment. For example, detecting and fixing leaks in equipment would be considered an activity regarding the servicing or repair of equipment. Similarly, leak prevention and/or inspection and repair practices, processes, or activities would be conducted regarding the servicing and/or repair of equipment.

The requirements proposed in this rulemaking also relate to the statutory purposes identified in subsection (h)(1). Requirements related to the detection, inspection, repair, and prevention of leaks for equipment containing HFCs (whether used neat or in a blend) or their substitutes would serve the statutory purpose of minimizing the release of regulated substances from equipment. For example, leak detection, inspection, and repair requirements help minimize such releases because the sooner a leak is found and repaired, the less HFC will be released. Further, leak prevention requirements would minimize HFC releases by avoiding potential leaks in the first place. Additionally, regulations establishing

requirements for leak prevention, detection, and repair would also further the statutory purpose of maximizing the reclamation of regulated substances by reducing the amount of HFC released from equipment and thus increasing the amount of HFC that is available to be recovered and reclaimed. Any regulated substance used in equipment that is released through leaks and escapes to the atmosphere reduces the amount of HFC remaining in the equipment that could otherwise be recovered and reclaimed for further use.

Further, as the phasedown of the production and consumption of HFCs as required by the AIM Act progresses, reclaimed HFCs will play a key role in the amount of available HFCs for equipment that will continue to use HFCs (

e.g.,

for servicing). Reclaimed HFCs will also be important in avoiding potential economic disruption that could be associated with the scarcity of virgin HFCs as well as avoid stranding existing equipment that will need to be serviced using HFCs. Generally, overall refrigerant management in appliances helps to maintain the health of the appliances. This can be crucial for refrigerant-containing appliances in the RACHP subsectors that are relevant to handling food products, such as supermarket systems, refrigerated transport, and other food retail subsectors where the intended function is to ensure food products are maintained at appropriate temperatures to avoid spoilage and food waste. In 2021, 344,000 tons of food were lost in the United States due to equipment issues in the retail and food service subsectors.

Successful repair of leaks and avoiding leaks are a few ways to help ensure that these appliances are operating efficiently and as intended and can help to avoid unnecessary food waste.

ReFED, Insights Engine Food Waste Monitor, May 2023, available at:

https://insights-engine.refed.org/food-waste-monitor?view=overview&year=2021.

In considering requirements related to leak prevention, detection, and repair under subsection (h) of the AIM Act, EPA further notes that subsection (h)(3) expressly provides that EPA may coordinate regulations promulgated to carry out subsection (h) with any other regulations promulgated by EPA that involve the same or a similar practice, process, or activity regarding the servicing, repair, disposal, or installation of equipment, or reclaiming. Accordingly, the Agency considered various potential approaches to coordinating the proposed regulations under subsection (h) related to leak prevention, detection, and repair with regulations previously promulgated under CAA section 608, given they relate to the same or similar practices, processes, or activities for refrigerant-containing appliances containing ODS. In particular, during the development of this NPRM, EPA considered the requirements at 40 CFR 82.157.

As noted in the background section of this preamble at section III.C.1., all provisions in 40 CFR part 82, subpart F except leak repair currently apply to appliances containing ODS substitutes including regulated HFCs used neatly or in blends. EPA is not proposing any requirements duplicative of those in this action. However, EPA is proposing to establish leak repair requirements for refrigerant-containing appliances using HFCs and/or substitutes for HFCs.

As described in the definitions section of this proposal at section IV.A.3., EPA is proposing to define “equipment” as including appliances. In the context of subsection (h), EPA considers that appliances would be a subset within the broader category of equipment. EPA has also proposed to define “refrigerant-containing appliance” in section IV.A.3. In this action, the Agency generally refers to the proposed leak repair requirements as applying to refrigerant-containing appliances. In the context of the proposed leak repair requirements, appliances are considered types of equipment that are used in subsectors within the RACHP sector. EPA is proposing leak repair provisions for certain refrigerant-containing appliances with a refrigerant that contains HFCs or certain substitutes for HFCs (whether the equipment uses the HFC or certain substitutes for an HFC neat or in a blend with other substances) under subsection (h) of the AIM Act. If finalized, these regulations would be codified at 40 CFR part 84.106.

2. Scope of the Proposed Leak Repair Requirements

EPA is proposing leak repair requirements for certain refrigerant-containing appliances containing HFC (whether used neat or in a blend) or certain HFC substitute refrigerants under subsection (h) of the AIM Act. These requirements are being proposed as part of implementing subsection (h)(1) of the AIM Act, as these provisions would control practices, processes, or activities regarding servicing or repair of appliances, which are a type of equipment, and would involve a regulated substance or a substitute for a regulated substance. The requirements proposed are similar to leak repair provisions for appliances containing an ODS refrigerant found at 40 CFR 82.157,

but are not identical. In particular, EPA is proposing to apply the leak repair requirements under subsection (h) of the AIM Act to appliances containing HFCs or certain substitutes for HFCs with lower charge sizes. Where EPA is proposing to require the same or similar practice, process or activity for applicable appliances containing HFC or substitutes for HFCs as is required under 40 CFR 82.157 for appliances containing an ODS refrigerant, EPA is proposing to adopt regulatory text under 40 CFR part 84, where appropriate, that is consistent with the parallel provision in 40 CFR 82.157. Where the proposed requirements are different, the regulatory text will differ.

In this proposed rulemaking, EPA is not reopening the leak repair requirements at 40 CFR 82.157 or proposing any changes to them.

a. Appliances containing which refrigerants would be subject to the proposed leak repair requirements?

EPA is proposing to include HFCs (including blends that contain HFCs) and certain substitutes for HFCs under the provisions related to leak repair under subsection (h) of the AIM Act. As noted previously, HFCs are potent GHGs with GWPs that can be hundreds to thousands of times more potent than CO

. As noted in the background section of this preamble (section III.A), global HFC use and emissions have been increasing since the ODS phaseout and their increasing use in RACHP equipment.

Provisions related to leak repair for equipment that use HFCs and their substitutes are critical to mitigating emissions of HFCs and meeting the purpose stated in subsection (h)(1) of the AIM Act to minimize releases of regulated substances from equipment. As mentioned, the AIM Act includes a list of 18 HFCs as regulated substances and provides authority for the Administrator to add additional HFCs if certain criteria are met, including that the GWP of the substance is above 53.

Certain substitutes for HFCs have GWPs that are below that of the lowest GWP of a substance that EPA could list as a regulated substance under subsection (c)(3)(A)(i)(II) of the AIM Act (

i.e.,

a GWP of greater than 53). EPA is proposing to apply the leak repair requirements to refrigerant-containing appliances containing an HFC

refrigerant or a substitute for HFC refrigerants that have a GWP above 53 (whether the HFC or substitute for an HFC is used neat or in a blend). EPA is proposing this cutoff for the leak repair provisions; however, other provisions in this proposal would apply to any substitute for an HFC without any GWP threshold, unless otherwise specified.

WMO, 2022.

Subsection (c)(3)(A) provides the criteria by which the Administrator may designate a substance not included in the list of regulated substances in subsection (c)(1); these criteria include that the substance must be a chemical substance that is a saturated hydrofluorocarbon and have an exchange value (

i.e.,

GWP) greater than 53.

In subsection (h) of the AIM Act, Congress directed EPA to control,

where appropriate,

any practice, process, or activity regarding the servicing, repair, disposal, or installation of equipment involving HFCs or their substitutes. EPA is proposing that for the leak repair provisions under subsection (h), it is appropriate at this time to only address substitutes for HFCs (whether used neat or in a blend) with GWPs that are greater than the cutoff Congress provided for listing new regulated substances (

i.e.,

a GWP of 53). The agency notes that currently the vast majority of HFC refrigerants and refrigerant blends containing HFCs in equipment have much higher GWPs, often 20 to 50, or even more than 75 times as high as this cutoff. EPA acknowledges that over time the refrigerant market is likely to shift, and that this proposal is based on the current and near-term anticipated market for equipment that contains HFCs and substitutes for HFCs. Thus, we view it as appropriate to focus the proposed leak repair requirements on HFCs and substitutes for HFCs with GWPs above 53 in this rulemaking, whether the HFC or substitute is used neat or in a refrigerant blend. We further note that EPA may in a future rulemaking consider establishing leak repair requirements for substitutes for HFCs and blends containing substitutes for HFCs with a GWP at or below 53. For example, if EPA becomes aware of concerns related to this limitation as the refrigerant market shifts to lower GWP substitutes for HFCs, EPA could consider revisiting this requirement.

To determine whether an appliance containing a substitute for a regulated substance is required to comply with the proposed leak repair provisions, EPA is proposing to adopt the similar process for determining the GWP of regulated substances and/or their substitutes as described in the proposed Technology Transitions Rule (87 FR 76738, 76750, December 15, 2022). The GWP of a regulated substance would use the GWP as related to the exchange value listed in subsection (c) of the AIM Act and codified as appendix A to 40 CFR part 84.

For the GWP of substitutes for regulated substances, EPA is proposing to use IPCC's Fourth Assessment Report (AR4) 100-year GWPs wherever possible given they are numerically the same as the exchange values in the AIM Act and because EPA considers such an approach to be less complicated. For hydrocarbons listed in Table 2-15 of AR4, EPA is proposing to use the net GWP value. For substances for which no GWP is provided in AR4, EPA is proposing to use the 100-year GWP listed in World Meteorological Organization (WMO) 2022.

For any substance not listed in either of these sources, EPA is proposing to use the GWP of the substance in Table A-1 to 40 CFR part 98, as it exists on a specified date, such as the date any final rule based on this proposal is published in the

Federal Register

, if such substance is specifically listed in that table. EPA is aware of two potential substitutes for regulated substances that might be addressed by the proposed requirements that are not listed in these three sources, trans-dichloroethylene (HCO-1130(E)) and HCFO-1224yd(Z) and is proposing to set these GWPs to be five

and one,

respectively, for the purposes of this proposal. For any other substance not listed in the above three source documents, EPA is proposing that the default GWPs as shown in Table A-1 to 40 CFR part 98, as it exists on a specified date, such as the date any final rule based on this proposal is published in the

Federal Register

, shall be used. In the event that the hierarchy outlined in this section does not provide a GWP (

i.e.,

the substance in question is not listed in the three documents, is not one of the two for which EPA is proposing GWPs, is not listed in Table A-1 to 40 CFR part 98 and does not fit within any of the default GWPs provided in Table A-1 to 40 CFR part 98), EPA is proposing to use a GWP of zero. In any case where a GWP value is preceded with a less than (<), very less than (<<), greater than (>), approximately (~), or similar symbol in the source document, which is used to determine the GWP, EPA is proposing that the value shown shall be used.

EPA noted in section III.A. of this preamble that the exchange values for the regulated HFCs listed in subsection (c) of the AIM Act are numerically identical to the 100-year GWPs of each substance, as given in the Errata to Table 2.14 of the IPCC's Fourth Assessment Report (AR4) and Annexes A, C, and F of the Montreal Protocol. Available at:

https://www.ipcc.ch/site/assets/uploads/2018/05/ar4-wg1-errata.pdf.

WMO, 2022.

81 FR 32244 (May 23, 2016).

84 FR 64766 (November 25, 2019).

Applying the proposed provisions related to leak repair under subsection (h) to HFC substitutes with a GWP greater than 53, but not those with a GWP at or below 53, would result in certain lower GWP refrigerants (

e.g.,

single component HFO refrigerants) that are covered by the venting prohibition at 40 CFR 82.154(a)(1) to be excluded from coverage under the proposed subsection (h) leak repair provisions, as they have a GWP lower than 53. The proposed leak repair requirements would still apply where any substitute for an HFC is a component in a refrigerant blend that contains an HFC or another substitute for an HFC with a GWP above 53. This would be true even if one or more of the components of the refrigerant blend is a substitute for an HFC that is exempted from the venting prohibition under 40 CFR 82.154(a)(1). In describing the practical effects of our proposed approach, we are not reopening, taking comment on, or proposing to modify any regulatory provisions in 40 CFR part 82 in this NPRM.

In the case that a refrigerant-containing appliance uses a refrigerant blend that contains an ODS and an HFC or a substitute for an HFC with a GWP above 53, EPA is proposing that the owner or operator of such appliance be required to simultaneously meet the leak repair provisions promulgated under CAA section 608 at 40 CFR 82.157 and the proposed provisions in this action, to the extent that they are applicable. EPA notes that many of the provisions in this proposed action are similar to those in 40 CFR 82.157, which should help alleviate any concerns about duplicative requirements. However, the provisions proposed in this NPRM (as described in the following section) would apply to refrigerant-containing appliances with a charge size of 15 pounds or more of a refrigerant that contains an HFC or a substitute for an HFC with a GWP above 53. The requirements at 40 CFR 82.157 apply to appliances containing an ODS with a charge size at or above 50 pounds. If such appliances use a refrigerant that also contains an HFC or an HFC substitute that has a GWP above 53, they would be required to meet the leak repair requirements proposed in this NPRM, to ensure that the requirements applicable to the HFCs and HFC substitutes are also met. An appliance with a charge size of 15 pounds or greater containing a refrigerant blend that was made up of ODS and an HFC or a substitute for an HFC with a GWP above 53 would also be required to meet the proposed provisions in this action, as a way of ensuring that the requirements that apply to the HFCs or certain substitutes for HFCs contained in the equipment

are met. However, because these appliances would not meet the charge size threshold under 40 CFR 82.157, those requirements would not apply even though they contain ODS refrigerants.

EPA intends for the leak repair requirements in this proposal to be sufficiently consistent with the requirements at 40 CFR 82.157 such that both sets of requirements could be met for refrigerant-containing appliances that use a refrigerant blend containing an ODS and an HFC or a substitute for an HFC with a GWP above 53 and that have full charge of 50 or more pounds of refrigerant. EPA requests comment on whether there is an impediment to a refrigerant containing-appliance simultaneously complying with both sets of requirements.

Leak repair provisions for appliances containing HFCs and certain substitutes for HFCs as refrigerants as proposed in this document should minimize emissions. EPA describes emission reductions in the draft TSD titled

Analysis of the Economic Impact and Benefits of the Proposed Rule

and in in section VI. of this proposal.

EPA is requesting comment on all aspects of this proposal. In particular, EPA is seeking comment on the use of a GWP cutoff to apply the proposed leak repair requirements to equipment containing an HFC or a substitute for an HFC as a refrigerant, used neat or in blends. EPA also seeks comment on using a GWP above 53 as the cutoff, including, for example, comments on whether EPA should consider a lower GWP cutoff.

b. Appliances with what charge size would be subject to the proposed leak repair requirements?

EPA is proposing to apply the leak repair requirements under subsection (h) of the AIM Act to refrigerant-containing appliances with a charge size of 15 pounds or more of a refrigerant that contains an HFC or a substitute for an HFC with a GWP above 53, with specific exemptions. This is a lower threshold than the threshold for the leak repair requirements established under CAA section 608, as the leak repair provisions at 40 CFR 82.157 apply to appliances containing 50 or more pounds of ODS refrigerant, a threshold that was established in 1993. EPA is aware of technological achievements that, in many cases, have resulted in smaller charge sizes for cooling loads. For example, microchannel heat exchangers are one such technology used to reduce refrigerant charge size in equipment. Equipment using different refrigerants may also have a lower charge size; for example, in air conditioning equipment, the refrigerant charge size for HFC-32 is approximately 10-20 percent less than that of R-410A.

As another example, EPA also understands that in certain cases, remodels or expansions of supermarket systems can increase capacity while not increasing the refrigerant charge size (

i.e.,

effectively using a lower refrigerant charge for a greater cooling capacity). Such a scenario could be achieved by remodeling with display cases that operate at a higher evaporator temperature to maintain product temperatures without changing the intended purpose of the refrigeration system.

Refrigeration, Air Conditioning, and Heat Pumps Technical Options Committee 2018 Assessment Report, Technical and Economic Assessment Panel, UNEP, February 2019. Available at:

https://ozone.unep.org/sites/default/files/2019-04/RTOC-assessment-report-2018_0.pdf.

See 80 FR 42903, July 20, 2015.

EPA is proposing a lower threshold because applying the requirements to more equipment is expected to reduce HFC releases from equipment and because avoided releases of HFCs from leaks would increase the amount of HFCs that would be available for recovery and reclamation. The AIM Act provides a schedule for a phasedown of HFCs, as opposed to the phaseout directed for ODS under the CAA. Therefore, there may be the continued introduction of HFC-containing equipment indefinitely which is a notable difference from the CAA. As described more fully in section II.B. of this proposal, subsection (h)(1) of the AIM Act tasks the Agency with promulgating certain regulations, where appropriate, for certain purposes, including minimizing the release of regulated substances from equipment and maximizing the reclamation of regulated substances. EPA interprets the phrase “where appropriate” in subsection (h)(1) to provide it discretion to reasonably determine how the regulations under subsection (h)(1) will apply, including by making determinations about the charge size threshold of equipment that would be subject to the leak repair requirements. Consistent with its statutory authority, EPA is proposing to use a lower threshold than the 50-pound threshold for ODS-containing appliances under 40 CFR 82.157 for the leak repair requirements to further serve these purposes.

By proposing that the applicable charge size for appliances with a refrigerant that contains an HFC or a substitute for an HFC with a GWP greater than 53 to be 15 pounds or more of refrigerant, with certain exemptions, the universe of affected appliances covered by the leak repair requirements under subsection (h) would be expanded as compared to the universe of appliances containing ODS refrigerants and subject to the leak repair requirements provisions at 40 CFR 82.157. For example, an applicable charge size of 15 pounds or more of a refrigerant that contains an HFC or substitute refrigerant with a GWP above 53 is expected to cover certain appliances in the following subsectors which are typically below the 50-pound threshold under 40 CFR 82.157 and thus not subject to those provisions:

• Train air conditioning;

• Passenger buses (

e.g.,

school, coach, transit, and trolley buses);

“Bus” is defined at 40 CFR 1037.801 and means “a heavy-duty vehicle designed to carry more than 15 passengers. Buses may include coach buses, school buses, and urban transit buses.”

• Refrigerated transport—rail;

• Large retail food remote condensing units (

e.g.,

cold rooms in supermarkets); and

• Large commercial unitary air conditioning (

e.g.,

a system for a mid-sized office building).

EPA is proposing a 15-pound or more refrigerant charge size for appliances subject to the subsection (h) leak repair requirements based in part on consideration of an analysis of equipment in applications where HFCs or their substitutes are currently being used as a refrigerant and where they are expected to be used in the coming years. EPA conducted an analysis using the Vintaging Model to estimate stocks of refrigerants used in equipment of varying charge sizes. The Vintaging Model tracks the transition from ODS to substitutes including HFCs by modeling the total pieces of equipment and average charge sizes—which could vary over time based on vintage

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