Technology Transitions under Subsection (i) of the AIM Act Frequently Asked Questions

Frequently Asked Questions

What are HFCs?

Hydrofluorocarbons (HFCs) are potent greenhouse gases (GHGs) developed and manufactured as replacements for ozone-depleting substances (ODS). These fluorinated chemicals have no known natural sources. They have global warming potentials (GWPs) (a measure of the relative climatic impact of a GHG) that can be hundreds to thousands of times greater than that of carbon dioxide (CO2). Unlike ODS, HFCs do not deplete the stratospheric ozone layer.

What are the impacts of HFCs on the environment?

HFCs are extremely powerful GHGs that accelerate climate change, which threatens society with costly health and environmental impacts such as floods, wildfires, drought, and increasingly severe weather events. More information on climate change can be found at: https://www.epa.gov/climate-change.

Where are HFCs used?

Climate-damaging HFCs are used in many of the same sectors where ODS have been used: primarily in air conditioning and refrigeration, and also in fire suppression, solvents, foam blowing, and aerosols.

Why are HFCs increasing in use?

Absent regulation addressing HFCs, the use of HFCs was expected to continue to increase, which would also increase emissions of these climate-damaging chemicals. The use of HFCs has been increasing due to the global demand for refrigeration and air conditioning, and because they are the primary substitutes for ODS, which are being phased out worldwide due to the global agreement the Montreal Protocol on Substances that Deplete the Ozone Layer (Montreal Protocol). More information on the Montreal Protocol can be found at: https://www.unep.org/ozonaction/who-we-are/aboutmontreal-protocol.

What is the AIM Act?

The American Innovation and Manufacturing (AIM) Act of 2020 provides EPA specific authority to address HFCs, including to: (1) phase down HFC production and consumption (the amount of HFCs newly added to the U.S. market through production and import, minus exports and destruction) of listed HFCs through an allowance allocation and trading program, (2) establish requirements for the management of HFCs and HFC substitutes in equipment (e.g., air conditioners); and (3) facilitate sector-based transitions away from HFCs.

What is a regulated substance?

Certain HFCs are listed as regulated substances under the AIM Act. More information is available at: https://www.epa.gov/climate-hfcs-reduction/aim-act.

How does the AIM Act support sector-based transitions away from HFCs?

Entitled “Technology Transitions,” subsection (i) of the AIM Act provides authority for EPA to promulgate rules restricting the use of HFCs in sectors or subsectors where they are used. EPA can either initiate a rulemaking on its own accord, or a person may petition EPA to promulgate a rule to restrict the use of HFCs in certain sectors or subsectors.

Once EPA receives a petition under subsection (i), the AIM Act directs the Agency to make the petition publicly available within 30 days of receipt and grant or deny the petition within 180 days of receipt. For petitions which are granted, EPA must complete a rulemaking within two years of the date the petition was granted.

How are petitions under subsection (i) evaluated?

The AIM Act identifies certain factors for the Agency to consider when evaluating a petition that has been submitted under subsection (i). Specifically, the Act requires EPA to consider, to the extent practicable:

1. the best available data;
2. the availability of substitutes for use of the regulated substance that is the subject of the petition, in a sector or subsector, taking into account technological achievability, commercial demands, affordability for residential and small business consumers, safety, consumer costs, building codes, appliance efficiency standards, contractor training costs, and other relevant factors, including the quantities of regulated substances available from reclaiming, prior production, or prior import;
3. overall economic costs and environmental impacts, as compared to historical trends; and
4. the remaining phase-down period for regulated substances under the final rule issued under subsection (e)(3) of the AIM Act, if applicable.

Furthermore, the AIM Act specifies that EPA shall consider these factors when carrying out subsection (i):

1. evaluate substitutes for regulated substances in a sector or subsector, taking into account technological achievability, commercial demands, safety, overall economic costs and environmental impacts, and other relevant factors; and
2. make the evaluation under subparagraph (A) available to the public, including the factors associated with the safety of those substitutes

What does it mean for EPA to grant or partially grant a petition?

Granting or partially granting a petition means that EPA intends to address the requests raised in the petition in a future rulemaking. Granting a petition does not mean the Agency will propose or finalize requirements identical to those requested in the petition.

Where can I find information on petitions received by the Agency?

EPA maintains a list of petitions received under subsection (i) of the AIM Act at: https://www.epa.gov/climate-hfcs-reduction/petitions-under-aim-act.

What is the status of EPA’s rulemaking to address granted petitions? 

On December 7th, 2022, former EPA Administrator Regan signed a proposed rule that addressed the petitions granted on October 7, 2021.