Regulatory Actions for Allowance Allocation and Reporting
The American Innovation and Manufacturing (AIM) Act authorizes EPA to phase down production and consumption of Hydrofluorocarbons (HFCs) in the United States by 85 percent by 2036. Below are rulemakings related to the HFC Allowance Allocation Program.
Rules
Final Rule - Review and Renewal of Eligibility for Application-specific Allowances
This final rule assesses the eligibility of the six applications currently receiving application-specific allowances (ASAs) to continue receiving priority access to allowances through calendar year 2030. EPA is renewing ASA eligibility for five of the six applications for another five years. EPA is also finalizing the framework for assessing this eligibility, revisions to the Technology Transitions regulations as relevant to the specific applications under review, a procedural process for submitting a petition to designate a new application as eligible for priority access to allowances, narrow revisions to the methodology used to allocate allowances to application-specific allowance holders for calendar years 2026 and beyond, and limited revisions to existing regulations. In addition, EPA is authorizing one specific company to produce an additional quantity of HFCs for export and use in semiconductor manufacturing through 2030.
Note: The EPA Administrator, Lee Zeldin, signed the following final rule on 8/22/25 and EPA is submitting it for publication in the Federal Register (FR). While we have taken steps to ensure the accuracy of this Internet version of the rule, it is not the official version of the rule for purposes of public comment. Please refer to the official version in a forthcoming FR publication, which will appear on the Government Printing Office's website (https://www.govinfo.gov) and on Regulations.gov (http://www.regulations.gov) in Docket Number EPA-HQ-OAR-2024-0196.
Additional information on the final rule can be found below:
- Federal Register link to the Application-Specific Allowances Review & Renewal Final Rule (8/26/2025)
- ASA Review and Renewal Final Rule Fact Sheet (pdf)
- Frequent Questions on the Phasedown of HFCs
Additional information on the proposed rule can be found below:
Good Cause Rule - Vacated Provisions
In June 2023, the U.S. Appeals Court for the District of Columbia Circuit found that the EPA had not cited adequate authority for the QR code container tracking and refillable cylinder regulations in the 2021 HFC Allocation Framework Rule and thus vacated and remanded certain provisions of the rule to the agency. As a result, this rule removes from 40 CFR Part 84 certain regulatory provisions that prohibit use of disposable cylinders, implement the cylinder tracking system, and create auditing obligations related to the cylinder tracking system.
Final Rule - Allowance Allocation Methodology for 2024 and Later Years
This final rule establishes the methodology for allocating HFC production and consumption allowances starting with calendar year 2024 allowances. Through this rulemaking, EPA will continue applying a similar methodology to allocate production and consumption allowances for calendar years 2024 through 2028 as the Agency did in the Framework Rule for calendar years 2022 and 2023. EPA also amended the consumption baseline to reflect corrected data submitted to the Agency and made other adjustments to the HFC phasedown implementation, compliance, and enforcement provisions. EPA will start using the approach established through this rulemaking to issue calendar year 2024 allowances by October 1, 2023.
Additional information on the final rule can be found below:
- Federal Register link to the HFC Allocation Rule for 2024 and Later Years
- Allowance Allocation Methodology for 2024 and Later Years Fact Sheet (pdf)
- Regulatory Impact Analysis Addendum
- Press Release
- Frequent Questions on the Phasedown of HFCs
Additional information on the proposed rule can be found below:
Good Cause Rule - Adjustment to the Hydrofluorocarbon Production Baseline
This rule amended the production baseline and associated phasedown schedule to reflect corrected data; specifically, EPA adjusted the baseline from 382,554,619 metric tons of exchange value equivalent (MTEVe) to 382,535,439 MTEVe to reflect additional destruction and transformation of HFCs that occurred during 2011–2013. This corrected production baseline begins applying to allowance allocations for calendar year 2024.
Final Rule - Phasedown of Hydrofluorocarbons: Establishing the Allowance Allocation and Trading Program under the AIM Act
This final rule is the first regulation under the AIM Act to address HFCs, which are potent greenhouse gases commonly used in refrigerators, air conditioners, and other applications. This final rule sets the HFC production and consumption baseline levels from which reductions will be made, establishes an initial methodology for allocating and trading HFC allowances for 2022 and 2023, and creates a robust, agile, and innovative compliance and enforcement system.
Additional information on the final rule and allowance allocations can be found below:
- Federal Register link to HFC Allocation Final Rule
- HFC Allocation Final Rule Fact Sheet (pdf)
- Press Release on HFC Allocation Final Rule
- Regulatory Impact Analysis for Phasing Down Production and Consumption of Hydrofluorocarbons (HFCs) (pdf) (7.4 MB)
- Market Characterizations (updated 9/23/2021)
- Overview of Application-Specific Program Fact Sheet (pdf) (198.05 KB)
- Overview of Allowances and Exchange Values (pdf) (171.22 KB)
- Overview of Requirements for Importers of Hydrofluorocarbons (HFCs) (pdf) (378.5 KB)
- Overview of Requirements for HFC Fire Suppressant Recyclers (pdf)
- Frequent Questions on the Phasedown of HFCs
Additional information on the proposed rule can be found below: