[Federal Register Volume 87, Number 240 (Thursday, December 15, 2022)]
[Proposed Rules]
[Pages 76738-76813]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-26981]



[[Page 76737]]

Vol. 87

Thursday,

No. 240

December 15, 2022

Part III





Environmental Protection Agency





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40 CFR Part 84





Phasedown of Hydrofluorocarbons: Restrictions on the Use of Certain 
Hydrofluorocarbons Under Subsection (i) the American Innovation and 
Manufacturing Act of 2020; Proposed Rule

  Federal Register / Vol. 87, No. 240 / Thursday, December 15, 2022 / 
Proposed Rules  

[[Page 76738]]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 84

[EPA-HQ-OAR-2021-0643; FRL-8831-01-OAR]


Phasedown of Hydrofluorocarbons: Restrictions on the Use of 
Certain Hydrofluorocarbons Under Subsection (i) the American Innovation 
and Manufacturing Act of 2020

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking and advance notice of proposed 
rulemaking.

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SUMMARY: The U.S. Environmental Protection Agency is proposing to issue 
regulations to implement certain provisions of the American Innovation 
and Manufacturing Act, as enacted on December 27, 2020. This rulemaking 
proposes to: restrict the use of hydrofluorocarbons in specific sectors 
or subsectors in which they are used; establish a process for 
submitting technology transitions petitions; establish recordkeeping 
and reporting requirements; and address certain other elements related 
to the effective implementation of the American Innovation and 
Manufacturing Act. The proposed restrictions on the use of 
hydrofluorocarbons would, in part, address petitions granted on October 
7, 2021, and September 19, 2022. The U.S. Environmental Protection 
Agency is also seeking advance information on certain topics that may 
be helpful to developing a future proposed rule including on 
restrictions on the use of hydrofluorocarbons for certain other sectors 
and subsectors and on a third-party auditing program to verify 
substances used in products.

DATES: Comments on this notice of proposed rulemaking must be received 
on or before January 30, 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 January 17, 2023. The U.S. 
Environmental Protection Agency (EPA) will hold a virtual public 
hearing on December 30, 2022. 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-2021-0643, 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. For information on EPA's Docket Center, 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: Allison Cain, Stratospheric Protection 
Division, Office of Atmospheric Programs (Mail Code 6205A), 
Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Washington, 
DC 20460; telephone number: 202-564-1566; email address: 
[email protected]. You may also visit EPA's website at https://www.epa.gov/climate-hfcs-reduction for further information.

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
AHAM--Association of Home Appliance Manufacturers
AHRI--Air-Conditioning, Heating, and Refrigeration Institute
AIM Act--American Innovation and Manufacturing Act of 2020
ANSI--American National Standards Institute
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
CAS Reg. No.--Chemical Abstracts Service Registry Identification 
Number
CBI--Confidential Business Information
CBP--U.S. Customs and Border Protection
CDR--Chemical Data Reporting
CDX--Central Data Exchange
CFC--Chlorofluorocarbon
CO2--Carbon Dioxide
DX--Direct Expansion
DOE--U.S. Department of Energy
EAV--Equivalent Annualized Value
ECHO--Enforcement and Compliance History Online
e-GGRT--Electronic Greenhouse Gas Reporting Tool
EIA--Environmental Investigation Agency
EPA--U.S. Environmental Protection Agency
EU--European Union
FR--Federal Register
GDP--Gross Domestic Product
GHG--Greenhouse Gas
GHGRP--Greenhouse Gas Reporting Program
GSHP--Ground-source Heat Pump
GVWR--Gross Vehicle Weight Rating
GWP--Global Warming Potential
HD--Heavy-duty
HC--Hydrocarbon
HCFC--Hydrochlorofluorocarbon
HCFO--Hydrochlorofluoroolefin
HCPA--Household and Commercial Products Association
HFC--Hydrofluorocarbon
HFO--Hydrofluoroolefin
HPWH--Heat Pump Water Heater
IAM--Integrated Assessment Model
IAPMO--International Association of Plumbing and Mechanical 
Officials
ICC--International Code Council
ICR--Information Collection Request
IPR--Industrial Process Refrigeration
IIAR--International Institute of Ammonia Refrigeration
IPCC--Intergovernmental Panel on Climate Change

[[Page 76739]]

IWG--Interagency Working Group on the Social Cost of Greenhouse 
Gases
LD--Light-duty
LFL--Lower Flammability Limit
MAC--Marginal Abatement Cost
MDPV--Medium-duty Passenger Vehicle
MMTCO2 e--Million Metric Tons of Carbon Dioxide 
Equivalent
MVAC--Motor Vehicle Air Conditioning
MY--Model Year
NAA--National Aerosol Association
NAICS--North American Industry Classification System
NATA--National Air Toxics Assessment
NFPA --National Fire Protection Association
NRDC--Natural Resources Defense Council
OEM--Original Equipment Manufacturer
ODS--Ozone-depleting Substance
OMB--U.S. Office of Management and Budget
PRA--Paperwork Reduction Act
PTAC--Packaged Terminal Air Conditioner
PTHP--Packaged Terminal Heat Pump
PV--Present Value
RACHP--Refrigeration, Air Conditioning, and Heat Pumps
RFA--Regulatory Flexibility Act
RIA--Regulatory Impact Analysis
RTOC--Refrigeration, Air Conditioning and Heat Pumps Technical 
Options Committee
SBREFA--Small Business Regulatory Enforcement Fairness Act
SC-HFCs--Social Costs of Hydrofluorocarbons
SNAP--Significant New Alternatives Policy
TEAP--Technology and Economic Assessment Panel
TLV-TWA--Threshold Limit Value-Time-Weighted Average
TRI--Toxics Release Inventory
TSD--Technical Support Document
UL--Underwriters Laboratories Inc
VRF--Variable Refrigerant Flow
WSHP--Water-source Heat Pump
WMO--World Meteorological Organization

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. How is EPA evaluating environmental justice?
IV. What factors will be considered for evaluating a petition?
V. What is the petition process under the technology transitions 
program?
    A. What is required to be included in a technology transitions 
petition?
    B. What happens after a petition is submitted?
    C. Can I revise or resubmit my petition?
VI. How is EPA considering negotiated rulemaking?
    A. Summary of the AIM Act's Directive on Negotiated Rulemaking
    B. How does EPA intend to consider negotiating with stakeholders 
under the AIM Act?
VII. What is EPA's proposed action concerning restrictions on the 
use of HFCs?
    A. What definitions is EPA proposing to implement subsection 
(i)?
    B. How is EPA proposing to restrict the use of HFCs in the 
sector or subsector in which the HFCs are used?
    C. Applicability
    1. Which uses is EPA proposing to restrict in this proposal?
    2. Would the proposed use restrictions also apply to products 
that are manufactured for export?
    3. Would restrictions apply to existing equipment?
    4. Effective and Compliance Dates of Rules Promulgated Under 
Subsection (i)
    D. How is EPA proposing to address restrictions on the use of 
HFCs requested in petitions granted?
    1. Petitions Granted on October 7, 2021
    2. How is EPA proposing to address additional petitions that 
cover similar sectors and subsectors?
    3. Petitions Granted on September 19, 2022
    E. Subsection (i)(4) Factors for Determination
    1. How is EPA considering best available data?
    2. How is EPA considering the availability of substitutes?
    3. How is EPA considering overall economic costs and 
environmental impacts, as compared to historical trends?
    4. How is EPA considering the remaining phase-down period for 
regulated substances under the final rule issued under subsection 
(e)(3) of the AIM Act?
    F. For which sectors and subsectors is EPA proposing to 
establish restrictions on the use of HFCs and blends containing 
HFCs?
    1. How did EPA determine the degree of the proposed restrictions 
for each sector and subsector?
    2. Summary of Proposed Restrictions on the Use of HFCs
    3. Refrigeration, Air conditioning, and Heat Pump
    4. Foam Blowing
    5. Aerosols
    G. For what additional sectors or subsectors is EPA requesting 
advance information on the use of HFCs?
VIII. What are the proposed enforcement and compliance provisions?
    A. What is EPA proposing for labeling requirements?
    B. What potential auditing and third-party testing programs is 
EPA seeking advance information on?
    1. Who should be subject to the independent third-party testing 
and audits?
    2. What elements and criteria should be included in the third-
party auditors and/or accreditation body requirements?
IX. What are the proposed recordkeeping and reporting requirements?
    A. What reporting is EPA proposing to require?
    B. What recordkeeping is EPA proposing?
X. What are the costs and benefits of this proposed action?
    A. Assessment of Costs and Additional Benefits Utilizing 
Transition Options
    B. Scoping Analysis of Imports of Regulated Products
XI. Statutory and Executive Order Review

I. Executive Summary

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

    The U.S. 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; \1\ 
promulgating certain regulations for purposes of maximizing reclamation 
and minimizing releases of HFCs and their substitutes from equipment; 
and facilitating sector-based transitions to next-generation 
technologies. This proposal focuses on the third area--facilitating the 
transition to next-generation technologies by restricting use of HFCs 
in the sectors or subsectors in which they are used.
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    \1\ EPA has issued regulations establishing and codifying a 
framework for phasing down HFC production and consumption through an 
allowance allocation program, ``Phasedown of Hydrofluorocarbons: 
Establishing the Allowance Allocation and Trading Program Under the 
American Innovation and Manufacturing Act'' (86 FR 55116, October 5, 
2021). That rule is referred to as the ``Allocation Framework Rule'' 
throughout this document. EPA is currently undertaking a separate 
rulemaking to update certain aspects of that regulatory framework.
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    Subsection (i) of the Act, entitled ``Technology Transitions,'' 
authorizes EPA, by rulemaking, to restrict the use of regulated 
substances (used interchangeably with ``HFCs'' in this document) in 
sectors or subsectors where the regulated substances are used.\2\ The 
Act also includes provisions for the public to petition EPA to initiate 
such a rulemaking. On October 7, 2021, and September 19, 2022, EPA 
granted 12 petitions and partially granted one petition (hereby 
referred to as ``granted petitions'') requesting restrictions on the 
use of HFCs in various sectors and subsectors (86 FR 57141, October 14, 
2021). The Act directs EPA to promulgate a final rule within two years 
after the date on which the Agency grants a petition. Thus, this 
proposed

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rulemaking, in part, addresses the granted petitions.
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    \2\ 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.
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    This proposed rulemaking further addresses the framework for how 
EPA intends to implement its authority to restrict the use of HFCs in 
sectors and subsectors where they are used. Additionally, it proposes 
provisions to support implementation of, compliance with, and 
enforcement of statutory and regulatory requirements under subsection 
(i) of the Act. To provide the public with additional information about 
this new program, this document also includes a description of how EPA 
intends to implement certain aspects of the program, such as the 
processing of petitions to restrict the use of HFCs in sectors and 
subsectors in which they are used under subsection (i) of the Act.
    Lastly, EPA is seeking advance information on certain topics that 
may be helpful for developing a future proposed rule. Specifically, EPA 
is seeking advance information on the application of restrictions on 
the use of HFCs to heat pump water heaters and to certain retrofitted 
equipment in the refrigeration, air conditioning, and heat pump (RACHP) 
sector. EPA is also seeking advance information on a third-party 
auditing program to verify substances used in products. EPA does not 
intend to finalize an auditing program or restrictions on the use of 
HFCs for those sectors and subsectors on which it is seeking advance 
information as part of this rulemaking process. Accordingly, EPA does 
not intend to respond to any advance information received on the 
options discussed in these sections in any final rulemaking for this 
proposal.

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

    Technology transitions petitions: EPA is proposing the process for 
petitions submitted under subsection (i) of the AIM Act and describes 
how the Agency intends to evaluate petitions. EPA is proposing that 
petitions be submitted electronically with required minimum 
information. Upon receiving a petition, the Agency will consider, to 
the extent practicable, the factors listed in subsection (i)(4) of the 
AIM Act in making a determination to grant or deny the petition. 
Consistent with the Act, EPA also considered these factors to the 
extent practicable in establishing the restrictions on the use of HFCs 
in this proposed rulemaking.
    Restrictions on the use of HFCs: EPA is proposing restrictions on 
the use of certain HFCs within new products in the following sectors 
and subsectors: refrigeration, air conditioning, and heat pumps; foam 
blowing; and aerosols. All proposed restrictions would occur in two 
stages; the manufacture or import of products would be prohibited by 
either 2025 or 2026, depending on the sector or subsector, followed a 
year later by a prohibition on the sale, distribution, offer for sale 
or distribution, export, and other activities pertaining to those 
products.
    Enforcement and compliance: To support compliance with the proposed 
prohibitions on the use of HFCs with high global warming potentials 
(GWPs) in specific sectors and subsectors, EPA is proposing labeling, 
reporting, and recordkeeping requirements for products imported or 
manufactured using an HFC. The Agency is proposing to use the same 
reporting platform used in prior AIM Act rules and the Greenhouse Gas 
Reporting Program (GHGRP).\3\
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    \3\ 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 (CO2) 
injection sites in the United States. The program generally requires 
reporting when emissions from covered sources are greater than 
25,000 metric tons of CO2e per year. Publicly available 
information includes facility names, addresses, and latitude/
longitude information.
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C. What is the summary of the costs and benefits?

    EPA is providing information on the costs and benefits of 
restricting use of HFCs consistent with this proposed rule. The 
analyses, presented in the Costs and Environmental Impacts technical 
support document (TSD) and in a regulatory impact analysis (RIA) 
addendum to the Allocation Framework RIA, are contained in the docket 
to this proposed rule. These analyses--as summarized below--highlight 
economic cost and benefits, including benefits from HFC consumption and 
emissions reductions. While significant, the benefits presented in this 
summary are considered incidental and secondary to the rule's statutory 
objective of facilitating the transition to next-generation 
technologies by restricting use of HFCs in the sectors or subsectors in 
which they are used.
    Given that the provisions EPA is proposing concern HFCs, which are 
subject to the overall phasedown of production and consumption under 
the AIM Act, EPA relied on previous analyses conducted for the 
Allocation Framework Rule (86 FR 55116, October 5, 2021) and the 
proposed 2024 Allocation Rule, ``Phasedown of Hydrofluorocarbons: 
Allowance Allocation Methodology for 2024 and Later Years'' 87 FR 
66372, November 3, 2022) as a starting point for the assessment of 
costs and benefits of this 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 RIA and proposed 2024 Allocation Rule RIA 
addendum (collectively referred to as ``Allocation Rules'' in this 
discussion).
    As detailed in the RIA addendum and the Costs and Environmental 
Impacts TSD, additional benefits of the proposed rule relative to the 
Allocation Rules may vary depending on the mix and timing of industry 
transitions made in order to achieve compliance in affected subsectors. 
In its analysis of the Allocation Rules, EPA estimated that regulated 
entities would adopt specific technology transition options to achieve 
compliance with the statutory allowance cap step-downs. Industry is 
already making many of these transitions, and we expect that achieving 
the allowance cap step-downs will require many of the same subsector-
specific technology transitions that would also be required by this 
proposed rule. However, the rule may in some cases require regulated 
entities to further accelerate transitions in specific subsectors, 
relative to what EPA previously assumed in its analysis of the 
Allocation Rules. Conversely, entities in a discrete set of subsectors 
not covered by this proposed rule could conceivably forgo or delay 
adopting abatement options that were assumed to be undertaken to comply 
with the Allocation Rules.
    Given this uncertainty, EPA analyzed two scenarios to represent the 
range of potential incremental impacts resulting from the proposed 
rule: a ``base case'' and ``high additionality case.'' Both scenarios 
use the results from the Allocation Rule as a starting point, and count 
benefits in terms of reductions of consumption and emissions only in 
cases where the proposed rule would result in additional reductions in 
HFC consumption. The ``base case'' represents a conservative assessment 
of benefits and assumes that any industry activity not necessary for 
compliance is excluded. In other words, the scenario excludes 
consumption reductions not covered by a GWP restriction in the proposed 
rule and not needed to reach the phasedown cap (so long as the 
phasedown caps are otherwise met through consumption reductions in 
subsectors that are covered by the proposed rule restrictions). By 
contrast, the ``high additionality case'' is a less conservative 
scenario and assumes that HFC consumption reduction activities not 
covered by the proposed rule would remain consistent with the 
Allocation

[[Page 76741]]

Rule reference scenario (i.e., neither increase nor decrease in 
response to this proposed rule). Based on the results of these two 
scenarios, which are detailed further in the Costs and Environmental 
Impacts TSD and the RIA addendum, EPA estimates that additional 
emission reductions through 2050 would be 5 to 35 million metric tons 
of carbon dioxide equivalent (MMTCO2e) annually.\4\ These 
emission reductions generally lag the anticipated incidental 
consumption reductions, which range from 735 to 1,121 
MMTCO2e for 2025-2050 at an annual average of 28 to 43 
MMTCO2e.
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    \4\ As noted in the Allocation Framework Rule, the exchange 
values provided in the AIM Act are numerically equivalent to the 
100-year integrated global warming potentials provided in IPCC 
(2007). EPA provides values in CO2e and notes here that 
the same values would be used if expressed in exchange value 
equivalents.
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    Table 1 summarizes the reductions in both consumption and emissions 
as described in the RIA addendum. The table shows the incremental 
annual reductions--that is, the difference in reductions compared to 
the Allocation Rule reference scenario--from the proposed rule for 
selected years in the time period 2025-2050. Both the base case and 
high additionality case results show a net reduction in consumption and 
emissions on a cumulative basis through 2050. Emissions under the 
proposed rule would decrease compared to the business-as-usual 
estimates shown in the RIA, however they would not decrease as much as 
under the Allocation Rule reference scenario for certain model years. 
For these years, incremental emission reductions are therefore shown as 
negative numbers in the table. This effect is due to assumptions about 
the technological solutions used to comply with each rule. 
Specifically, the base case excludes actions not required by this 
proposed rule, such as improved leak reduction and enhanced recovery of 
HFCs, which are assumed to otherwise yield relatively rapid emission 
reductions. Since the Allocation Rule reference scenario includes those 
actions, incremental emission reductions in the base case accrue more 
slowly (and therefore are shown as negative in certain years) while 
still yielding a net reduction on a cumulative basis.

 Table 1--Incremental Consumption and Emission Reductions in the Technology Transitions Rule Base Case and High
                                               Additionality Case
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                  Incremental consumption  reductions (MMTCO2e)                        Incremental emission
---------------------------------------------------------------------------------      reductions  (MMTCO2e)
                                                                                 -------------------------------
                                                    Technology      Technology                      Technology
                                                    transitions     transitions     Technology      transitions
                      Year                           rule base         high         transitions        high
                                                       case        additionality     rule base     additionality
                                                                       case            case            case
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2025............................................               9              42             -52               8
2029............................................              27              53             -13              34
2034............................................              35              49               2              43
2036............................................              34              42              -3              36
2040............................................              21              29              27              40
2045............................................              35              44              27              37
2050............................................              37              46              30              38
                                                 ---------------------------------------------------------------
    Total (cumulative)..........................             735            1121             134             903
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    As reflected in the RIA addendum, however, although the base case 
is a reasonable projection of the potential impacts of the proposed 
rule, there is reason to believe that it is a conservative one, and 
that the incremental emission reductions associated with this proposal 
could be far greater than reflected in the base case scenario. Previous 
regulatory programs to reduce chemical use in the affected industries 
show that regulated entities do not limit their response to the 
required compliance level; rather, regulated entities may take 
additional actions that transform industry practices for various 
reasons, including the anticipation of future restrictions, 
strengthening their competitive position, and supporting overall 
environmental goals. For example, U.S. production and consumption of 
ozone-depleting substances (ODS) during their phaseout was consistently 
below the limits established under the Montreal Protocol. For this 
reason, in the high additionality case we assumed certain abatement 
options not covered by the proposed rule--but which were assumed in the 
prior accounting of benefits for the Allocation Rules--continue to be 
undertaken. Based on the two scenarios, on a cumulative basis the rule 
is expected to yield incremental emission reductions ranging from 134 
to 903 MMTCO2e through 2050 (respectively, about 3 percent 
and 20 percent of the total emissions over that same time period in the 
Allocations Rules analyses). In the RIA addendum, we estimate the 
present value of these incremental benefits to be between $5 billion 
and $51 billion in 2020 dollars.
    EPA also estimates that the proposed rule would result in lower 
compliance costs relative to the Allocation Rules. These additional 
savings stem largely from assumed energy efficiency gains and lower 
cost refrigerants associated with the technological transitions 
necessary to meet the proposed requirements. The present value of these 
cumulative incremental savings from 2025-2050 is estimated to be 
between $2.2 billion and $4.2 billion, using a 7 percent discount rate, 
or between $5.1 billion and $8 billion, using a 3 percent discount rate 
(in 2020 dollars).
    Table 2 summarizes key findings from the RIA addendum, including 
the incremental annual climate benefits, costs, and net benefits of the 
rule for selected years in the time period 2025-2050, with the climate 
benefits discounted at 3 percent, for the base case and high 
additionality case. The table also provides the present value (PV) and 
equivalent annualized value (EAV) of the annual costs under a 3% and 7% 
discount rate. We note that the climate benefits and net benefits 
findings were not used for decisional purposes in this proposed rule 
and are

[[Page 76742]]

provided for informational and illustrative purposes only.

  Table 2--Summary of Annual Incremental Climate Benefits, Costs, and Net Benefits of the Technology Transitions Rule Base Case and High Additionality
                                                       Case Scenarios for the 2025-2050 Timeframe
                                                    [Millions of 2020$, discounted to 2022] a b c d e
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                Base case                                                             High additionality case
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           Annual costs    Net benefits                    Annual costs    Net benefits
                                                            Incremental      (negative     (3% benefits,    Incremental      (negative     (3% benefits,
                          Year                                climate       values are       3% or 7%         climate       values are       3% or 7%
                                                           benefits (3%)     savings)       costs) \e\     benefits (3%)     savings)       Costs) \e\
--------------------------------------------------------------------------------------------------------------------------------------------------------
2025....................................................         -$3,603           -$395         -$3,209            $546             $31            $515
2029....................................................          -1,043              50          -1,092           2,563             335           2,227
2034....................................................             141            -200             340           3,739             -77           3,816
2036....................................................            -404            -677             273           3,213            -635           3,848
2040....................................................           2,669            -848           3,516           3,928            -784           4,712
2045....................................................           2,946            -786           3,732           4,031            -717           4,748
2050....................................................           3,606            -817           4,422           4,677            -743           5,419
--------------------------------------------------------------------------------------------------------------------------------------------------------


 
                         Discount rate                               3%           3%           7%           3%           7%           3%           3%           7%           3%           7%
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
PV............................................................       $5,084      -$8,045      -$4,225      $13,130       $9,309      $51,145      -$5,140      -$2,190      $56,285      $53,335
EAV...........................................................         $311        -$492        -$438         $803         $748       $3,126        -$314        -$227       $3,440       $3,353
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a\ Benefits include only those related to climate. Climate benefits are based on changes in HFC emissions and are calculated using four different estimates of the SC-HFCs (model average at
  2.5 percent, 3 percent, and 5 percent discount rates; 95th percentile at 3 percent discount rate). For purposes of this table, we show the effects associated with the model average at a 3
  percent discount rate, but the Agency does not have a single central SC-HFC point estimate. We emphasize the importance and value of considering the benefits calculated using all four SC-HFC
  estimates. As discussed in Chapter 5 of the RIA addendum a consideration of climate effects calculated using discount rates below 3 percent, including 2 percent and lower, is also warranted
  when discounting intergenerational impacts.
\b\ Rows may not appear to add correctly due to rounding.
\c\ The annualized present value of costs and benefits are calculated as if they occur over a 26-year period from 2025 to 2050.
\d\ The costs presented in this table are annual estimates.
\e\ The PV for the 7% net benefits column is found by taking the difference between the PV of climate benefits at 3% and the PV of costs discounted at 7%. Due to the intergenerational nature
  of climate impacts the social rate of return to capital, estimated to be 7 percent in OMB's Circular A-4, is not appropriate for use in calculating PV of climate benefits.

    Some of the information regarding projected impacts of the rule, 
including cost estimates and anticipated environmental impacts, was 
considered by EPA in its assessment of certain factors listed in 
subsection (i)(4) of the AIM Act.\5\ The cost and benefit information 
relied upon by EPA in its consideration of the subsection (i)(4) 
factors is compiled in the Costs and Environmental Impacts TSD. As 
discussed in section VII.E, EPA chose to use certain cost and 
environmental benefit information that it had generated in conducting 
its RIA addendum in considering certain factors under subsection 
(i)(4), but we expect that in future rulemakings we may consider 
different types of information to address the (i)(4) factors. In 
assessing the (i)(4) factors for this proposed rule, as summarized in 
the Costs and Environmental Impacts TSD, EPA considered estimates of 
costs of the proposed action and estimates of cumulative consumption 
and emission reductions for 2025-2050 of 735 to 1,121 
MMTCO2e and 134 to 903 MMTCO2e, respectively, 
neither of which incorporate the social costs of HFCs (SC-HFCs).
---------------------------------------------------------------------------

    \5\ Subsection (i)(4) of the AIM Act contains a list of factors 
that the statute directs EPA to consider, to the extent practicable, 
when carrying out a rulemaking or making a determination to grant or 
deny a petition.
---------------------------------------------------------------------------

    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 this analysis can be found in section X 
of this preamble and in the Costs and Environmental Impacts TSD and RIA 
addendum contained in the docket.

II. General Information

A. Does this action apply to me?

    You may be potentially affected by this rule if you manufacture, 
import, export, package, sell or otherwise distribute products that use 
or are intended to use HFCs, such as refrigeration and air-conditioning 
(AC) systems, foams, and aerosols. You may also be potentially affected 
by this action if you produce, import, export, destroy, use as a 
feedstock, reclaim, package, or otherwise distribute HFCs. Potentially 
affected categories, by North American Industry Classification System 
(NAICS) code, are included in Table 3.

     Table 3--NAICS Classification of Potentially Affected Entities
------------------------------------------------------------------------
        NAICS code                   NAICS industry description
------------------------------------------------------------------------
238220...................  Plumbing, Heating, and Air[dash]Conditioning
                            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.

[[Page 76743]]

 
325412...................  Pharmaceutical Preparation Manufacturing.
325414...................  Biological Product (except Diagnostic)
                            Manufacturing.
325998...................  All Other Miscellaneous Chemical Product and
                            Preparation Manufacturing.
326150...................  Urethane and Other Foam Product.
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[dash]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.
334419...................  Other Electronic Component 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.
336992...................  Military Armored Vehicle, Tank, and Tank
                            Component Manufacturing.
337214...................  Office Furniture (Except Wood) Manufacturing.
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.
443142...................  Electronics Stores.
444190...................  Other Building Material Dealers.
445110...................  Supermarkets and Other Grocery (except
                            Convenience) Stores.
445131...................  Convenience Retailers.
445298...................  All Other Specialty Food Retailers.
449210...................  Appliance Stores, Household-Type.
453998...................  All Other Miscellaneous Store Retailers
                            (except Tobacco Stores).
45711....................  Gasoline Stations With Convenience Stores.
481111...................  Scheduled Passenger Air Transportation.
531120...................  Lessors of Nonresidential Buildings (except
                            Miniwarehouses).
541330...................  Engineering Services.
541380...................  Testing Laboratories.
541512...................  Computer Systems Design Services.
541519...................  Other Computer Related Services.
541620...................  Environmental Consulting 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).
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.
------------------------------------------------------------------------


[[Page 76744]]

    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 regulatory text at the end of this document. If you have questions 
regarding the applicability of this action to a particular entity, 
consult the person 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 (codified at 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. 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 title VI of the CAA. 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 HFCs by providing new 
authorities in three main areas: phasing down the production and 
consumption of listed HFCs; managing these HFCs and their substitutes; 
and facilitating the transition to next-generation technologies by 
restricting use of these HFCs in the sector or subsectors in which they 
are used. This rulemaking focuses on the third area: the transition to 
next-generation technologies by restricting use of these HFCs in the 
sector or subsectors in which they are used.
    Subsection (i) of the AIM Act, ``Technology Transitions,'' provides 
that ``the Administrator may by rule restrict, fully, partially, or on 
a graduated schedule, the use of a regulated substance in the sector or 
subsector in which the regulated substance is used.'' 42 U.S.C. 
7675(i)(1). 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.\6\ 
(42 U.S.C. 7675(c)(1)). EPA is also authorized to designate additional 
substances that meet certain criteria as regulated substances (42 
U.S.C. 7675(c)(3)). EPA has not so designated any additional 
substances, and the list of 18 regulated substances can also be found 
in appendix A of 40 CFR part 84. Through this rule, EPA is proposing to 
restrict the use of certain HFCs, whether neat or used in a blend, in 
specific sectors or subsectors, based on EPA's consideration of the 
factors listed in (i)(4) of the AIM Act.
---------------------------------------------------------------------------

    \6\ As noted previously in this document, ``regulated 
substance'' and ``HFC'' are used interchangeably in this document.
---------------------------------------------------------------------------

    A rulemaking restricting the use of regulated substances in sectors 
or subsectors can be initiated by EPA on its own accord, or a person 
may petition EPA to promulgate such a rule. Specifically, subsection 
(i)(3)(A) states, ``A person may petition the Administrator to 
promulgate a rule under subsection (i)(1) for the restriction on use of 
a regulated substance in a sector or subsector.'' Where the Agency 
grants such a petition submitted under subsection (i), the statute 
requires that ``the Administrator shall promulgate a final rule not 
later than 2 years after the date on which the Administrator grants the 
petition.'' (42 U.S.C. 7675(i)(3)(C)(ii)). Thus, EPA is addressing the 
granted petitions under subsection (i) in this proposed action.
    Furthermore, prior to proposing a rule, subsection (i)(2)(A) 
directs EPA to consider negotiating with stakeholders in the sector or 
subsector subject to the potential rule in accordance with negotiated 
rulemaking procedures established under subchapter III of chapter 5 of 
title 5, United States Code (commonly known as the ``Negotiated 
Rulemaking Act of 1990''). A brief discussion on EPA's consideration of 
using negotiated rulemaking procedures and its decision not to 
negotiate with stakeholders prior to this proposal can be found in 
section VI.B of this preamble.
    In addition to proposing HFC use restrictions, this proposal 
includes measures designed to assist with enforcement and to help 
ensure compliance with those use restrictions, including recordkeeping, 
reporting, and labeling requirements. The proposed reporting 
requirements are also intended to inform EPA of market dynamics and the 
transitions that are occurring in those sectors and subsectors 
addressed by this rulemaking. EPA notes that subsection (k)(1)(C) of 
the AIM Act states that section 114 of the CAA applies to the AIM Act 
and rules promulgated under it as if the AIM Act were included in title 
VI of the CAA. Thus, section 114 of the CAA, 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.

III. Background

A. What are HFCs?

    HFCs are anthropogenic \7\ 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 carbon 
dioxide (CO2).
---------------------------------------------------------------------------

    \7\ 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 \8\ have been growing worldwide due to the 
global phaseout of 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. Global adherence to the Kigali Amendment would substantially 
reduce future emissions, leading to a peaking of HFC emissions before 
2040.9 10
---------------------------------------------------------------------------

    \8\ World Meteorological Organization (WMO), Scientific 
Assessment of Ozone Depletion: 2018, World Meteorological 
Organization, Global Ozone Research and Monitoring Project--Report 
No. 58, 588 pp., Geneva, Switzerland, 2018. Available at: https://ozone.unep.org/sites/default/files/2019-05/SAP-2018-Assessment-report.pdf.
    \9\ Ibid.
    \10\ 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 
(MMTCO2e). 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

[[Page 76745]]

accelerating rates. Total emissions of HFCs increased by 23 percent 
from 2012 to 2016 and the four most abundant HFCs in the atmosphere, in 
GWP-weighted terms, are HFC-134a, HFC-125, HFC-23, and HFC-143a.\11\
---------------------------------------------------------------------------

    \11\ WMO, 2018.
---------------------------------------------------------------------------

    In 2016, HFCs excluding HFC-23 accounted for a radiative forcing of 
0.025 W/m\2\. This is a 36 percent increase in total radiative forcing 
due to HFCs relative to 2012. This radiative forcing was projected to 
increase by an order of magnitude to 0.25 W/m\2\ by 2050. If the Kigali 
Amendment were to be fully implemented, it would be expected to reduce 
the future radiative forcing due to HFCs (excluding HFC-23) to 0.13 W/
m\2\ in 2050 which is a reduction of about 50 percent compared to the 
radiative forcing projected in the business-as-usual scenario of 
uncontrolled HFCs.\12\
---------------------------------------------------------------------------

    \12\ Ibid.
---------------------------------------------------------------------------

    The 18 HFCs listed as regulated substances by the AIM Act are the 
most commonly used HFCs and have high impacts as measured by the 
quantity of each substance emitted multiplied by their respective 
GWPs.\13\ These 18 HFCs are all saturated, meaning they have only 
single bonds between their atoms and therefore have longer atmospheric 
lifetimes.
---------------------------------------------------------------------------

    \13\ The AIM Act uses exchange values which are numerically 
equivalent to the 100-year GWP of the chemical as given in the 
Errata to Table 2.14 of the IPCC's 2007 Fourth Assessment Report 
(AR4).
---------------------------------------------------------------------------

    In the United States, HFCs are used primarily in refrigeration and 
air-conditioning equipment in homes, commercial buildings, and 
industrial operations (~75 percent of total HFC use in 2018) and in air 
conditioning in vehicles and refrigerated transport (~8 percent). 
Smaller amounts are used in foam products (~11 percent), aerosols (~4 
percent), fire protection systems (~1 percent), and solvents (~1 
percent).\14\
---------------------------------------------------------------------------

    \14\ 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 the Allocation Framework Rule that phasing down 
HFC production and consumption according to the schedule provided in 
the AIM Act will avoid cumulative consumption of 3,152 million metric 
tons of exchange value equivalent (MMTEVe) of HFCs in the United States 
for the years 2022 through 2036 (86 FR 55116, October 5, 2021). That 
estimate included both consumption as defined in Sec.  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, for the 
abatement options necessary to meet the HFC cap. Annual avoided 
consumption was estimated at 42 MMTCO2e in 2022 and 282 
MMTCO2e 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 that action will avoid emissions of 4,560 
MMTCO2e of HFCs in the United States. The annual avoided 
emissions are estimated at 22 MMTCO2e in the year 2022 and 
171 MMTCO2e in 2036. More information regarding these 
estimates is provided in the Allocation Framework RIA in the docket.

B. How do HFCs affect public health and welfare?

    Elevated concentrations of GHGs including HFCs 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 are a result of the well-
documented buildup of GHGs due to human activities and are changing the 
climate at a pace and in a way 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 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 Clean Air Act (CAA) (74 FR 66496, December 15, 2009).\15\ In the 
2009 Endangerment Finding, the Administrator found under section 202(a) 
of the CAA that elevated atmospheric concentrations of six key well-
mixed GHGs--CO2, methane (CH4), nitrous oxide 
(N2O), HFCs, perfluorocarbons (PFCs), and sulfur 
hexafluoride (SF6)--``may reasonably be anticipated to 
endanger the public health and welfare of current and future 
generations'' (74 FR 66523, December 15, 2009). 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). It noted that while climate change also 
increases the likelihood of reductions in 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). Children, the elderly, and the poor are among the most 
vulnerable to these climate-related health effects (74 FR 66498, 
December 15, 2009).
---------------------------------------------------------------------------

    \15\ 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 \16\ 
in the United

[[Page 76746]]

States with resulting economic costs, including: changes in water 
supply and quality due to changes in 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; 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).
---------------------------------------------------------------------------

    \16\ 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 greenhouse gas emissions from aircraft under 
section 231(a)(2)(A) of the CAA (81 FR 54422, August 15, 2016).\17\ 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).
---------------------------------------------------------------------------

    \17\ 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, greenhouse gas concentrations, 
and sea level rise. Additionally, major scientific assessments continue 
to be released that further improve 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.'' \18\ These updated observations and 
projections document the rapid rate of current and future climate 
change both globally and in the United States.\19\ \20\ \21\ \22\
---------------------------------------------------------------------------

    \18\ 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[acute]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. Yelek[ccedil]i, R. Yu and B. Zhou 
(eds.)]. Cambridge University Press. In Press: 4.
    \19\ 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.
    \20\ IPCC, 2021.
    \21\ 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.
    \22\ NOAA National Centers for Environmental Information, State 
of the Climate: Global Climate Report for Annual 2020, published 
online January 2021. Available at: https://www.ncdc.noaa.gov/sotc/global/202013.
---------------------------------------------------------------------------

C. How is EPA evaluating environmental justice?

    EPA provides the following discussion of the Agency's assessment of 
environmental justice impacts in relationship to this proposal. This 
analysis is intended to provide the public with information on the 
potential environmental justice impacts of this action, if finalized as 
proposed, and to comply with executive orders. This analysis was not 
used for purposes of EPA's consideration of the statutory factors under 
AIM Act subsection (i)(4). Executive Order 12898 (59 FR 7629, February 
16, 1994) and Executive Order 14008 (86 FR 7619, January 27, 2021) 
establish federal executive policy on environmental justice. Executive 
Order 12898's main provision directs federal agencies, to the greatest 
extent practicable and permitted by law, to make environmental justice 
part of their mission by identifying and addressing, as appropriate, 
disproportionately high and adverse human health or environmental 
effects of their programs, policies, and activities on people of color 
and low-income populations in the United States. EPA defines 
environmental justice as the fair treatment and meaningful involvement 
of all people regardless of race, color, national origin, or income 
with respect to the development, implementation, and enforcement of 
environmental laws, regulations, and policies.\23\ Meaningful 
involvement means that: (1) potentially affected populations have an 
appropriate opportunity to participate in decisions about a proposed 
activity that will affect their environment and/or health; (2) the 
public's contribution can influence the regulatory Agency's decision; 
(3) the concerns of all participants involved will be considered in the 
decision-making process; and (4) the rule-writers and decision-makers 
seek out and facilitate the involvement of those potentially 
affected.\24\ The term ``disproportionate impacts'' refers to 
differences in impacts or risks that are extensive enough that they may 
merit Agency action. In general, the determination of whether there is 
a disproportionate impact that may merit Agency action is ultimately a 
policy judgment which, while informed by analysis, is the 
responsibility of the decision-maker. The terms ``difference'' or 
``differential'' indicate an analytically discernible distinction in 
impacts or risks across population groups. It is the role of the 
analyst to assess and present differences in anticipated impacts across 
population groups of concern for both the baseline and proposed 
regulatory options, using the best available information (both 
quantitative and qualitative) to inform the decision-maker and the 
public.\25\
---------------------------------------------------------------------------

    \23\ See, e.g., Environmental Protection Agency. ``Environmental 
Justice.'' Available at: https://www.epa.gov/environmentaljustice.
    \24\ The criteria for meaningful involvement are contained in 
EPA's May 2015 document ``Guidance on Considering Environmental 
Justice During the Development of an Action.'' Environmental 
Protection Agency, 17 Feb. 2017. Available at: https://www.epa.gov/environmentaljustice/guidance-considering-environmental-justice-during-development-action.
    \25\ The definitions and criteria for ``disproportionate 
impacts,'' ``difference,'' and ``differential'' are contained in 
EPA's June 2016 document ``Technical Guidance for Assessing 
Environmental Justice in Regulatory Analysis.'' Available at: 
https://www.epa.gov/environmentaljustice/technical-guidance-assessing-environmental-justice-regulatory-analysis.
---------------------------------------------------------------------------

    A regulatory action may involve potential environmental justice 
concerns if it could: (1) create new disproportionate impacts on people 
of color, low-income populations, and/or indigenous peoples; (2) 
exacerbate existing disproportionate impacts on people of color, low-
income populations, and/or indigenous peoples; or (3) present 
opportunities to address existing disproportionate impacts on people of 
color, low-income populations, and/or indigenous peoples through the 
action under development.
    Executive Order 14008 calls on agencies to make achieving 
environmental justice part of their missions ``by developing programs, 
policies, and activities to address the disproportionately high and 
adverse human health, environmental, climate-

[[Page 76747]]

related and other cumulative impacts on disadvantaged communities, as 
well as the accompanying economic challenges of such impacts.'' 
Executive Order 14008 further declares a policy ``to secure 
environmental justice and spur economic opportunity for disadvantaged 
communities that have been historically marginalized and overburdened 
by pollution and under-investment in housing, transportation, water and 
wastewater infrastructure, and health care.''
    In addition, the Presidential Memorandum on Modernizing Regulatory 
Review calls for procedures to ``take into account the distributional 
consequences of regulations, including as part of a quantitative or 
qualitative analysis of the costs and benefits of regulations, to 
ensure that regulatory initiatives appropriately benefit, and do not 
inappropriately burden disadvantaged, vulnerable, or marginalized 
communities.'' \26\ EPA also released its June 2016 ``Technical 
Guidance for Assessing Environmental Justice in Regulatory Analysis'' 
(2016 Technical Guidance) to provide recommendations that encourage 
analysts to conduct the highest quality analysis feasible, recognizing 
that data limitations, time and resource constraints, and analytic 
challenges will vary by media and circumstance.\27\
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    \26\ Presidential Memorandum on Modernizing Regulatory Review, 
January 20, 2021. Available at: https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/20/modernizing-regulatory-review/.
    \27\ Technical Guidance for Assessing Environmental Justice in 
Regulatory Analysis, June 2016. Available at: https://www.epa.gov/sites/default/files/2016-06/documents/ejtg_5_6_16_v5.1.pdf.
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    The Allocation Framework Rule, among other things, established the 
framework for the United States' phasedown of HFCs, which will achieve 
significant benefits by reducing production and consumption of certain 
chemicals with high GWPs. In that rulemaking, EPA described the 
environmental justice analysis conducted in support of the rule and 
summarized the public health and welfare effects of GHG emissions 
(including HFCs), including information that certain parts of the 
population may be especially vulnerable to climate change risks based 
on their characteristics or circumstances, including the poor, the 
elderly, the very young, those already in poor health, the disabled, 
those living alone, and/or indigenous populations dependent on one or 
limited resources due to factors including but not limited to 
geography, access, and mobility. Potential impacts of climate change 
raise environmental justice issues. Low-income communities, for 
example, can be especially vulnerable to climate change impacts because 
they tend to have more limited capacity to bear the costs of adaptation 
and are more dependent on climate-sensitive resources such as local 
water and food supplies. In corollary, some communities of color, 
specifically populations defined jointly by both ethnic/racial 
characteristics and geographic location, may be uniquely vulnerable to 
climate change health impacts in the United States.
    Many of the environmental justice implications of this proposed 
rule are similar to those addressed at length in the RIA \28\ developed 
for the Allocation Framework Rule. The analysis of potential 
environmental justice concerns for the Allocation Framework Rule 
focused mainly on characterizing baseline emissions of air toxics that 
are also associated with chemical feedstock use for HFC production. As 
detailed in the RIA for the Allocation Framework Rule, the phasedown of 
high-GWP HFCs in the United States will reduce GHG emissions, thereby 
reducing damages associated with climate change that would have been 
associated with those emissions. Similar to the Allocation Framework 
Rule, EPA expects that this proposed rule would reduce GHG emissions, 
which would benefit populations that may be especially vulnerable to 
damages associated with climate change. We also expect that the 
restriction on use of certain HFCs will increase the production of HFC 
substitutes. However, there continues to be significant uncertainty 
about how the transition to lower-GWP substitutes and market trends 
independent of this proposed rulemaking could affect production of 
predominant HFC substitutes, such as hydrocarbons, ammonia (R-717), and 
hydrofluoroolefins (HFOs), at individual facilities and how those 
changes in production could affect associated air pollutant emissions, 
particularly in communities that are disproportionately burdened by air 
pollution. Some predominant HFC substitutes, such as HFOs, use the same 
chemicals used in the manufacture of HFCs as feedstocks in their 
production or release the same chemicals as byproducts, potentially 
raising concerns about local exposure. Due to the limitations of the 
current data, we cannot make conclusions about the impact this proposed 
rule may have on individuals or specific communities near facilities 
producing HFC substitutes. For the purpose of environmental justice, 
however, it is important to understand the characteristics of the 
communities surrounding these facilities to better ensure that future 
actions, as more information becomes available, can improve outcomes.
---------------------------------------------------------------------------

    \28\ The RIA for the Allocation Framework Rule is available in 
the docket for that rulemaking at: https://www.regulations.gov/document/EPA-HQ-OAR-2021-0044-0227.
---------------------------------------------------------------------------

    EPA's 2016 Technical Guidance does not prescribe or recommend a 
specific approach or methodology for conducting an environmental 
justice analysis, though a key consideration is consistency with the 
assumptions underlying other parts of the regulatory analysis when 
evaluating the baseline and regulatory options. Therefore, for this 
proposed rule, EPA followed the format used for the Allocation 
Framework RIA to analyze the demographic characteristics and baseline 
exposure of the communities near facilities producing HFC substitutes. 
The complete analysis is described in the RIA addendum developed for 
this proposed rule, which is available in the docket. EPA relied on 
public data from the Toxics Release Inventory (TRI),\29\ GHGRP, 
Chemical Data Reporting (CDR) Program,\30\ EJScreen (an environmental 
justice mapping and screening tool developed by EPA), Enforcement and 
Compliance History Online (ECHO), Census data, and information provided 
by industry stakeholders to identify the facilities. In addition, Air 
Toxics Screening Assessment (AirToxScreen, formerly National Air Toxics 
Assessment (NATA)) data from 2017 (the most recent year available) for 
census tracts within and outside of a 1-, 3-, 5-, and 10-mile distance 
were used to approximate the cumulative baseline cancer and respiratory 
risk due to air toxics exposure for communities near the production 
facilities.
---------------------------------------------------------------------------

    \29\ TRI tracks the management of certain toxic chemicals that 
may pose a threat to human health and the environment. U.S. 
facilities in different industry sectors must report annually how 
much of each chemical is released to the environment and/or managed 
through recycling, energy recovery, and treatment. Facilities submit 
a TRI Form R for each TRI-listed chemical it manufactures, 
processes, or otherwise uses in quantities above the reporting 
threshold.
    \30\ The CDR program, under the Toxic Substances Control Act, 
requires manufacturers (including importers) to provide EPA with 
information on the production and use of chemicals in commerce. 
Under the CDR rule, EPA collects information on the types, 
quantities, and uses of chemical substances produced domestically 
and imported into the United States. The information is collected 
every four years from manufacturers of certain chemicals in commerce 
generally when production volumes are 25,000 pounds or greater for a 
specific reporting year.\30\

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[[Page 76748]]

    With the restriction on use of certain HFCs, EPA anticipates that 
the production of HFC substitutes will increase. Accordingly, for the 
environmental justice analysis for this proposed rule, EPA identified 
14 facilities producing predominant HFC substitutes that may be 
impacted by this proposed rule and where production changes may impact 
nearby communities. The relatively small number of facilities that may 
be affected by this rule enabled EPA to assemble a uniquely granular 
assessment of the characteristics of the facilities and the communities 
where they are located. Overall, this proposed rule would reduce GHG 
emissions, which would benefit populations that may be especially 
vulnerable to damages associated with climate change. However, the 
manner in which producers transition from high-GWP HFCs could drive 
changes in future risk for communities living near facilities that 
produce HFC substitutes, to the extent the use of toxic feedstocks, 
byproducts, or catalysts changes, and those chemicals are released into 
the environment with adverse local effects.
    The environmental justice analysis, which examines racial and 
economic demographic and health risk information, found heterogeneity 
in community characteristics around individual facilities. The analysis 
showed that individuals identified as African American or Black and as 
Hispanic with respect to race live in proximity to the identified 
facilities compared with the national average or the rural areas 
national average. Importantly, the comparison to the rural area 
national average is more striking, because so many of the facilities 
are rural. While median income is not significantly different for the 
communities near the facilities (slightly lower than the national 
average but slightly above or equal to the rural median income), there 
are more very low-income households in these communities. Additionally, 
total cancer risk and total respiratory risk is higher than either the 
rural national average or the overall national average in communities 
near the facilities. The analysis shows that the risks are higher for 
those within the 1-mile average radius and decrease at the 3-mile, 5-
mile, and 10-mile radii.
    EPA notes that the averages may obfuscate potentially large 
differences in the community characteristics surrounding individual 
production facilities. Analysis of the demographic characteristics and 
AirToxScreen data for the 14 facilities identified shows that there are 
significant differences in the communities near these facilities. The 
racial, ethnic, and income results are varied but, in almost all cases, 
total cancer risk and total respiratory risk are higher for the 
communities in proximity to the sites than to the appropriate (rural or 
overall) average when compared with the national or state results.
    Additionally, some facilities are in communities that are quite 
different from the aggregate results discussed in this section above. 
The aggregate results show that the communities near the facilities 
identified tend to have slightly fewer neighboring individuals 
identified as White, and more identified as African American or Black 
and as Hispanic with respect to race, in several cases. In several 
cases, however, the communities near specific facilities have higher 
percentages of White individuals than either the state or national 
averages. This is true for the facilities in San Dimas, CA; Sibley, LA; 
El Dorado, AR; Gregory, and Manvel, TX, along with those in Iowa, 
Illinois, and West Virginia.
    EPA is including a demonstration of a microsimulation approach in 
the RIA addendum to analyze the proximity of communities to potentially 
affected facilities. Microsimulation is a technique relying upon 
advanced statistics and data science to combine disparate survey and 
geospatial data. It has long been used in a variety of economic and 
social science research and has been used before by EPA (in the context 
of understanding the implications of underground storage tank impacts 
on groundwater). Recent advances in data science and computational 
power have increased the availability of microsimulation for 
applications such as environmental justice analysis. The demonstration 
analysis included in the RIA addendum contributes to understanding 
communities that may warrant further environmental justice analysis.
    EPA seeks comment and further discussion of the use of 
microsimulation approaches and techniques for regulatory impact 
analysis and other program activities. Among other things, EPA seeks 
information on what microsimulation tools are appropriate for better 
understanding the burdens faced by communities, and in what 
circumstances. The demonstration analysis presented in the RIA addendum 
uses a dataset of ``synthetic households'' based on geospatial data 
combined through microsimulation techniques with information from the 
U.S. Decennial Census and the American Communities Survey (ACS). EPA 
requests comment on other surveys or other geospatial datasets should 
be the focus of EPA efforts to combine with the ACS and/or Decennial 
Census data; how microsimulation tools supplement other EPA tools for 
understanding demographics, multiple burdens facing communities, and 
assessing the impact of EPA programs; and how microsimulation and other 
techniques to use current survey information can be used to identify 
data gaps which might be filled with refinements or improvements to 
existing survey tools.
    In considering potential additional analysis for a final rule based 
on this proposal, EPA is also considering assessing the estimated 
exposure of the communities near the identified facilities to toxics 
using the Risk Screening Environmental Index Geographic Microdata 
(RSEI-GM). The Agency seeks comment on whether this additional analysis 
would be useful and what additional insight it might provide for the 
environmental justice analysis.
    EPA noted in the Allocation Framework Rule, and reiterates here, 
that it is not clear the extent to which these baseline risks are 
directly related to potential future HFC substitute production, but 
some feedstocks, catalysts, and byproducts are toxic, particularly with 
respect to potential carcinogenicity (e.g., carbon tetrachloride). All 
HFC substitute production facilities are near other industrial 
facilities that could contribute to the cumulative AirToxScreen cancer 
and respiratory risk, and, at this time, it is not clear how emissions 
related to HFC substitute production compare to other chemical 
production at the same or nearby facilities. Because of the limited 
information regarding where substitutes will be produced and what other 
factors might affect production and emissions at those locations, it's 
unclear to what extent this rule may affect baseline risks from 
hazardous air toxics for communities living near HFC substitute 
production facilities.
    Additionally, as mentioned in this section above, emissions from 
facilities producing fluorinated and non-fluorinated substitutes may 
also be affected by the phasedown of HFCs. For the forthcoming proposed 
2024 Allocation Rule, EPA is updating the environmental justice 
analysis that was previously conducted for the Allocation Framework RIA 
to help determine how the implementation of the HFC phasedown may 
affect production and emissions at facilities that produce HFCs. EPA is 
following the analytical approach used in the Allocation Framework RIA 
to provide an update to the characterization of community demographics 
near HFC production facilities using updated data on the total

[[Page 76749]]

number of TRI facilities near HFC production facilities and the cancer 
and respiratory risks to surrounding communities. More information will 
be provided in conjunction with that proposed rule, which the Agency 
anticipates publishing later this year.
    EPA seeks input on the environmental justice analysis contained in 
the RIA addendum for this proposed rule, as well as broader input on 
other health and environmental risks the Agency should assess. To 
support the development of comments, EPA is seeking data or analysis to 
identify whether it is reasonable to expect net increases in emissions 
and, if so, how we might isolate the impacts of this program (i.e., 
effects resulting from the transition to lower-GWP substitutes or some 
other factor) in a manner that would enable the Agency to conduct a 
more nuanced analysis of changes in releases associated with chemical 
feedstocks and byproducts for HFC substitutes, given the inherent 
uncertainty regarding where, and in what quantities, substitutes will 
be produced.
    EPA is also taking comment on whether there are other authorities 
that would allow for the reporting of emissions tied to HFC substitute 
production. This could complement the emissions reporting and/or 
monitoring requirements in the proposed 2024 HFC Allocation Rule for 
HFC production facilities. Emissions monitoring and/or reporting 
provides communities with greater transparency and allows EPA to better 
evaluate potential environmental justice impacts over time. For more 
discussion of that proposal, see 87 FR 66372 (November 3, 2022). 
Finally, EPA is seeking comment in order to aid our efforts to 
understand further cumulative impacts and how they might be addressed. 
Since the updated environmental justice analysis and proposed reporting 
requirement are focused on chemical stressors, the Agency is requesting 
additional information on how both the chemical and non-chemical 
stressors associated with the HFC phasedown can alter the cumulative 
impacts experienced by communities surrounding HFC production 
facilities, how the Agency can share this information with the public, 
and whether and how the Agency can assess and measure cumulative 
impacts in the context of the HFC phasedown.

IV. What factors will be considered for evaluating a petition?

    In making a determination to grant or deny a petition, subsection 
(i)(4) of the AIM Act requires EPA to consider, to the extent 
practicable:
     The best available data;
     The availability of substitutes for use of the regulated 
substance that is the subject of the rulemaking or petition, as 
applicable, 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;
     Overall economic costs and environmental impacts, as 
compared to historical trends; and
     The remaining phase-down period for regulated substances 
under the final rule issued under subsection (e)(3) of the AIM Act, if 
applicable.
    These factors under subsection (i)(4) of the AIM Act were 
considered in the process of making a determination on the granted 
petitions, and will be the factors that EPA considers in evaluating 
future petitions. A discussion on how EPA interprets these factors and 
how they were considered in this proposed rulemaking is in section 
VII.E of the preamble.

V. What is the petition process under the technology transitions 
program?

    Subsection (i)(3) of the AIM Act states that a person may petition 
EPA to promulgate a rule to restrict the use of a regulated substance 
in a sector or subsector in accordance with the Agency's authority to 
issue such a rule under subsection (i)(1) of the AIM Act. If EPA 
receives a petition under subsection (i)(3), the AIM Act states that 
``[t]he Administrator shall grant or deny a petition . . . not later 
than 180 days after the date of receipt of the petition'' (42 U.S.C. 
7675(i)(3)(B)) and make the petition available to the public no later 
than 30 days after receiving the petition (42 U.S.C. 
7675(i)(3)(C)(iii)). For petitions that are denied, EPA must publish in 
the Federal Register an explanation of the denial (42 U.S.C. 
7675(i)(3)(C)(i)). If EPA grants a petition, the statute requires EPA 
to promulgate a final rule not later than two years from the date the 
Agency grants the petition (42 U.S.C. 7675(i)(3)(C)(ii)).
    This section describes the proposed process for submitting a 
petition under subsection (i) to the Agency, which includes direction 
on how technology transition provisions should be submitted to EPA; the 
necessary content of petitions; and how EPA will respond once petitions 
are received.
    Subsection (i)(3)(A) of the AIM Act explicitly states that ``a 
person may petition the Administrator to promulgate a rule under 
[subsection (i)(1) of the AIM Act] for the restriction on use of a 
regulated substance in a sector or subsector, which shall include a 
request that the Administrator negotiate with stakeholders. . .''. EPA 
views ``person'' for the purpose of a technology transitions petition 
submittal as having the same meaning as how the term is defined in 40 
CFR 84.3 (the definition established in the Allocation Framework Rule); 
that is, to mean ``any individual or legal entity, including an 
individual, corporation, partnership, association, state, municipality, 
political subdivision of a state, Indian tribe; any agency, department, 
or instrumentality of the United States; and any officer, agent, or 
employee thereof.'' Using this definition in 40 CFR 84.3 for purposes 
of petition submittal under subsection (i) would ensure consistency of 
how this term is used across these two regulatory programs developed 
under the AIM Act. This definition of ``person'' also captures the 
Agency's intended meaning of this term for purposes of the technology 
transitions program. Therefore, any person who fits the Allocation 
Framework Rule definition may submit a technology transitions petition 
to EPA. We further note that the plain text of subsection (i)(3)(A) 
also limits this provision to requests for restrictions on the use of a 
regulated substance in a sector or subsector. Other types of requests--
such as exemptions from existing or anticipated restrictions--are 
therefore not properly presented under the (i)(3)(A) petition process, 
although parties are always welcome to communicate to the Agency 
informally, to provide comments on a proposed rule that considers such 
restrictions on use, or to generally petition for rulemaking under the 
Administrative Procedures Act.
    All the petitions considered in this rulemaking were submitted to 
EPA electronically. EPA is proposing to require future petitions to 
also be submitted electronically. The Agency's preferred method is for 
petitions to be submitted to the email address: [email protected]. A 
link to this address is available on EPA's web page at: https://www.epa.gov/climate-hfcs-reduction/technology-transition-petitions-under-aim-act. Petitions can also be submitted electronically through 
an EPA electronic reporting system. For instructions on how to submit a 
petition through an EPA electronic reporting system, please contact the 
individual

[[Page 76750]]

listed in the FOR FURTHER INFORMATION CONTACT section of the preamble.

A. What is required to be included in a technology transitions 
petition?

    EPA is proposing to require standard content to be included in a 
technology transitions petition, which would assist petitioners in 
preparing their petitions and also enhance EPA's ability to review and 
respond to them promptly. Under this proposal, in order to qualify for 
a grant, a technology transitions petition would need to include the 
elements described in the following paragraphs. We are seeking comment 
on these proposed elements of a petition submission under AIM Act 
subsection (i).
    EPA is proposing that petitions must indicate either a GWP limit or 
the specific name(s) of the regulated substance(s) (including whether 
there are specific blend(s) that use the regulated substance(s), if the 
petition seeks a restriction on use of the regulated substance(s) in 
specific blends) to be restricted and their GWPs. Under this proposal, 
petitioners specifying specific regulated substances should use as the 
GWP the exchange values for the regulated HFCs listed in subsection (c) 
of the AIM Act and codified as appendix A to 40 CFR part 84.\31\ For 
blends containing regulated substances, petitioners should identify all 
components of the blend using the composition-identifying designation 
as listed in American National Standards Institute/American Society of 
Heating, Refrigerating and Air-Conditioning Engineers (ANSI/ASHRAE) 
Standard 34-2019 \32\ (e.g., HFC-134a, HFO-1234ze(E)). If blends are 
not listed in ASHRAE Standard 34, petitioners should provide the 
nominal composition of the blend, specifying all components with the 
ASHRAE Standard 34 designation for the components. If the components or 
substances are not listed in ASHRAE Standard 34, petitioners should 
provide the chemical name, the applicable CAS Registry Number, and the 
chemical formula and structure (e.g., CHF=C=CF2 rather than 
C3F3H) for the components not listed in ASHRAE 
Standard 34. EPA intends to maintain a list of commonly used blends 
containing HFCs and the GWPs of those blends at EPA's Technology 
Transitions web page. Nevertheless, EPA is also proposing a process to 
determine the GWP of blends containing regulated substances for 
purposes of this rulemaking, using the following hierarchy. For the 
regulated substances used in the blend, and as previously noted, the 
petitioner would use as the GWP the exchange value provided in 
subsection (c) of the AIM Act and codified as appendix A to 40 CFR part 
84. EPA is proposing to use the 100-year GWP values from the IPCC's 
Fourth Assessment Report (AR4) for all substances or components of 
blends, which for HFC regulated substances is numerically equal to the 
exchange values provided in subsection (c), which are listed in AR4. 
EPA is proposing to use AR4 100-year GWPs wherever possible given the 
exchange values are numerically the same and because EPA considers such 
an approach to be less complicated. For hydrocarbons (HCs) 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) 
2018.\33\ For any substance listed in neither 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 this rule is 
published in the Federal Register as a final rule, if such substance is 
specifically listed in that table. EPA is aware of two potential 
substances that might be included as components of blends containing 
regulated substances 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 \34\ and one,\35\ respectively, for purposes 
of this rulemaking. 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 this rule is published in the Federal Register as a final 
rule, 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. As such, petitioners should provide GWP 
values of the components of a blend based on the hierarchy proposed in 
this section. The GWP of a blend would then be calculated as the sum of 
the nominal composition (in mass proportions) of each component 
multiplied by the GWP of each component.
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    \31\ 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.
    \32\ Hereafter referred to as ASHRAE Standard 34.
    \33\ WMO, 2018.
    \34\ 81 FR 32244 (May 23, 2016).
    \35\ 84 FR 64766 (November 25, 2019).
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    EPA is proposing that petitioners must indicate the sector or 
subsector for which restrictions on use of the regulated substance 
would apply. EPA is proposing definitions for ``sectors'' and 
``subsectors'' in section VII.A of this preamble that generally reflect 
how these terms are historically used and EPA's understanding of 
sectors and subsectors where HFCs are currently or can be used. 
However, EPA is not limiting sectors or subsectors to a specific list, 
recognizing there may be additional uses of HFCs today or that may be 
developed in the future, and thus additional sectors or subsectors for 
which it could be appropriate to restrict use.
    EPA is proposing that petitions must include a date that the 
requested restrictions would go into effect and information concerning 
why the date or dates is appropriate. Petitioners should recognize that 
subsection (i)(6) of the AIM Act restricts the effective date of rules 
promulgated under subsection (i) to no earlier than one year after the 
date of the final rule.
    Before proposing a rule for the use of a regulated substance for a 
sector or subsector under subsection (i)(1), subsection (i)(2)(A) 
directs EPA to consider negotiating with stakeholders in accordance 
with the Negotiated Rulemaking Act of 1990 (i.e., negotiated rulemaking 
procedure). Subsection (i)(3)(A) requires petitioners to ``include a 
request that the Administrator negotiate with stakeholders in 
accordance with paragraph (2)(A)'' (42 U.S.C. 7675(i)(3)(A)). 
Therefore, EPA is proposing that petitioners include such a request in 
their petition. However, we are seeking comment on whether, in the 
alternative, it is reasonable for EPA to interpret the petition process 
under subsection (i)(3) as requiring petitioners to address whether EPA 
use the negotiated rulemaking procedure, rather than requiring them to 
affirmatively request that the Agency pursue negotiated rulemaking. 
Most petitions received to date by the Agency complied with the 
statute's requirement to request that EPA use negotiated

[[Page 76751]]

rulemaking; however, those petitioners unanimously expressed a 
preference that EPA not use this procedure in promulgating its 
restrictions. Allowing petitioners to express their views as to whether 
EPA should engage in negotiated rulemaking for a subsection (i) 
rulemaking, as opposed to requiring them to request something they may 
disagree with, provides more value to EPA as we consider, per 
subsection (i)(2)(A), whether to use the negotiated rulemaking 
procedure before proposing a restriction under subsection (i). 
Otherwise, EPA could be misled as to the petitioners' views and could 
elect to use the negotiated rulemaking procedure when no stakeholder 
sought that outcome. The unwarranted use of time and resources to 
undergo that procedure could be counterproductive to meeting the 
statutory deadlines to complete a final rule. Regardless of whether we 
finalize a requirement that petitioners affirmatively request 
negotiated rulemaking or whether we finalize a requirement that 
petitioners address negotiated rulemaking, EPA proposes that 
petitioners must provide an explanation of their position on the use of 
the negotiated rulemaking procedure and any considerations that would 
either support use of a negotiated rulemaking process or disfavor it. 
If a petition is granted, EPA intends to consider the petitioner's 
statement on negotiated rulemaking as it determines whether to use the 
procedure.
    Lastly, EPA is proposing to require petitioners to submit, to the 
extent practicable, information related to the ``Factors for 
Determination'' listed in subsection (i)(4) of the AIM Act to 
facilitate EPA's review of the petition.\36\ Given the relatively short 
180-day statutory timeframe for EPA to grant or deny a petition, this 
proposed requirement would ensure that information is available to EPA 
at the start of its review, to the extent the petitioner has relevant 
available information. This proposed requirement would clarify that EPA 
may deny a petition where no information had been provided that would 
allow the Agency to act on the petition.
---------------------------------------------------------------------------

    \36\ Section VII.E of this preamble provides information on 
EPA's interpretation of these factors for this proposed action.
---------------------------------------------------------------------------

    Petitioners must, to the extent practicable, provide best available 
data on substitutes that could be used in lieu of the petitioned 
substance(s), addressing the subfactors (e.g., technological 
achievability, safety, commercial demands, etc.) that may affect the 
availability of those substitutes. Other information submitted by 
petitioner could include estimates of the economic costs and 
environmental impacts. In particular, providing EPA with a sense of the 
scale of impacts (e.g., whether the suggested restriction would have a 
significant environmental impact, or whether the suggested restriction 
would be likely to impose costs or savings on regulated entities or 
consumers) using quantitative, accurate data to support that assessment 
will be more likely to result in a timely, well-reasoned response to 
the petitioner's request.

B. What happens after a petition is submitted?

    Subsection (i)(3)(C)(iii) instructs EPA to make petitions publicly 
available within 30 days after EPA receives the petition. As stated in 
another Agency action (see ``Notice of Data Availability Relevant to 
Petition Submissions Under the American Innovation and Manufacturing 
Act of 2020,'' 86 FR 28099 (May 25, 2021)), EPA intends to continue to 
post technology transitions petitions at www.regulations.gov, in Docket 
ID No. EPA-HQ-OAR-2021-0289, as well as on the Agency's website at 
https://www.epa.gov/climate-hfcs-reduction/technology-transition-petitions-under-aim-act. Making the petitions available allows the 
public to provide additional data and relevant material to aid in EPA's 
evaluation of petitions, based on the factors specified in subsection 
(i) of the AIM Act.
    In accordance with the statutory directive, EPA intends to act on 
petitions no later than 180 days after the date of receipt of the 
petition. EPA notes that a petition granted under subsection (i) of the 
AIM Act does not necessarily mean the Agency will propose or finalize 
requirements identical to a petition's request. Rather, granting a 
petition means that the requested restriction contained in a granted 
petition warrants further consideration through rulemaking. During the 
rulemaking process, EPA will determine what restrictions on the use of 
HFCs to propose and finalize based on multiple considerations, 
including its consideration of the ``Factors for Determination'' listed 
in subsection (i)(4) to the extent practicable. This approach provides 
interested stakeholders with the opportunity to review and comment on a 
regulatory proposal restricting the use of HFCs prior to restrictions 
going into effect.

C. Can I revise or resubmit my petition?

    As stated in section V.B of this preamble, receipt of a completed 
petition received by EPA triggers two statutory deadlines: the posting 
of the petition within 30 days of receipt and the granting or denying 
the of petition within 180 days of receipt. Because there is little 
purpose in EPA continuing to take action on the original petition when 
the petitioner has revised (i.e., makes edits to an original request) 
or resubmitted (i.e., makes edits to an original request and presents 
it as a new petition) it, EPA's view is that a petition revision or 
resubmittal made by petitioners is typically intended to supersede or 
replace the original petition and would thus restart these timelines. 
However, depending on the timing of the resubmission and the nature of 
the revision and the request, EPA may be able to act more quickly on a 
revised or resubmitted petition, for example, if the Agency had already 
developed familiarity with the request through its consideration of the 
original petition. Therefore, EPA intends to address petition revisions 
and resubmittals on a case-by-case basis. If petitioners do not intend 
for their submission to supersede or replace their original petition, 
rather revising or resubmitting their petition, they should instead 
submit supplemental or clarifying information regarding their petitions 
to the docket created for additional information and material related 
to petitions under consideration. In making a determination to grant or 
deny petitions, EPA plans to consider relevant and timely information 
provided in this docket, as the Agency did with the petitions in this 
rulemaking, including information provided by petitioners and from 
other stakeholders, for those petitions under review. Once a petition 
is granted or denied, any revised or resubmitted petitions will likely 
be treated as a new petition.

VI. How is EPA considering negotiated rulemaking?

    In this section, EPA is providing a summary of the AIM Act's 
directive to consider negotiating with stakeholders prior to proposing 
a rule under subsection (i) of the Act. This section also provides 
information regarding how EPA intends to consider negotiating with 
stakeholders for future rulemakings, based on EPA's consideration to 
use negotiating rulemaking procedures prior to this proposal.

A. Summary of the AIM Act's Directive on Negotiated Rulemaking

    Prior to proposing a rule, subsection (i)(2)(A) of the Act directs 
EPA to consider negotiating with stakeholders in the sector or 
subsector subject to the potential rule in accordance with

[[Page 76752]]

negotiated rulemaking procedures established under subchapter III of 
chapter 5 of title 5, United States Code (commonly known as the 
``Negotiated Rulemaking Act of 1990''). If EPA makes a determination to 
use the negotiated rulemaking procedures, subsection (i)(2)(B) requires 
that EPA, to the extent practicable, give priority to completing that 
rulemaking over completing rulemakings under subsection (i) that are 
not using that procedure. For additional information on negotiated 
rulemaking procedures, see subchapter III of chapter 5 of title 5, 
United States Code. If EPA does not use the negotiated rulemaking 
process, subsection (i)(2)(C) requires the Agency to publish an 
explanation of the decision to not use that procedure before 
commencement of the rulemaking process.

B. How does EPA intend to consider negotiating with stakeholders under 
the AIM Act?

    Prior to this proposed rulemaking, EPA issued a document informing 
the public of the Agency's consideration of using the negotiated 
rulemaking procedure and the Agency's decision to not use these 
procedures for this proposed rulemaking (86 FR 74080, December 29, 
2021). The Agency found that using negotiated rulemakings was not in 
the best interest of the public in the document and thus decided not to 
use negotiated rulemaking. In making this decision, EPA considered 
information provided by the petitions, including statements made by 
petitioners on the use of negotiated rulemaking procedures, and 
information provided by other stakeholders on the petitions. Further, 
the Negotiated Rulemaking Act of 1990, 5 U.S.C. 563, provides seven 
criteria that the head of an agency should consider when determining 
whether a negotiated rulemaking is in the public interest. EPA believes 
these criteria are informative for purposes of making a determination 
under AIM Act subsection (i) of whether to use the procedures set out 
in the Negotiated Rulemaking Act for proposed rulemakings and, 
therefore, also considered these criteria in its decision.
    Going forward, EPA intends to use a similar process in making its 
determination on whether to use negotiated rulemaking procedures for 
any rulemaking being considered under subsection (i) in response to 
granted petitions. This includes reviewing the petitions themselves and 
statements from petitioners on the use of negotiated rulemaking 
procedures, considering information provided by stakeholders commenting 
on petitions, and considering the seven criteria listed in the 
Negotiated Rulemaking Act of 1990, 5 U.S.C. 563, that the head of an 
agency should consider when determining whether a negotiated rulemaking 
is in the public's interest. For rulemakings initiated by EPA (i.e., 
not in response to granted petitions), EPA anticipates that our review 
would focus on just these seven criteria.
    Furthermore, where appropriate, EPA will also take into account 
recent Agency actions and decisions related to restrictions on the use 
of HFCs in sectors and subsectors for its consideration on using 
negotiated rulemaking procedures. For example, EPA received four 
petitions that were not included in the Agency's consideration of using 
negotiated rulemaking procedures for petitions granted on October 7, 
2021.\37\ However, these petitions requested restrictions on the use of 
HFCs in the same sectors and subsectors covered by petitions granted on 
October 7, 2021, for which EPA made a determination not to use 
negotiated rulemaking. Subsection (i)(2)(A) states that, ``[b]efore 
proposing a rule for a sector or subsector under paragraph (1), the 
Administrator shall consider negotiating with stakeholders in the 
sector or subsector subject to the potential rule. . .'' EPA will not 
issue a separate notice to consider using negotiated rulemaking for 
these four petitions because these petitions were received well ahead 
of this proposed action, and the requested restrictions are in the same 
sectors and subsectors contained in petitions granted on October 7, 
2021, for which the Agency considered using negotiated rulemaking 
procedures and decided not to use them. Nothing in these four petitions 
caused EPA to reconsider that decision. Therefore, it is unnecessary 
for the Agency to reconsider whether to use negotiated rulemaking 
procedures for this rulemaking. EPA encourages future petitioners to 
consider petitions under review or recently granted before submitting a 
new petition and to consider submitting information to the docket for 
an existing petition in lieu of submitting a new petition on the same 
uses of HFCs that are already under consideration by the Agency.
---------------------------------------------------------------------------

    \37\ These petitions were received from AHRI and IIAR and are 
discussed in section VII.D.2 of this preamble. Copies of these 
petitions are located at www.regulations.gov, under Docket ID No. 
EPA-HQ-OAR-2021-0289, or at https://www.epa.gov/climate-hfcs-reduction/technology-transition-petitions-under-aim-act.
---------------------------------------------------------------------------

VII. What is EPA's proposed action concerning restrictions on the use 
of HFCs?

    This section details the Agency's proposal for restricting HFCs in 
accordance with the granted petitions, including: defining terms that 
are new to 40 CFR part 84; presenting two approaches for the form that 
prohibitions could take; describing the proposed applicability of the 
prohibitions; providing EPA's interpretation and application of the 
``Factors for Determination'' contained in subsection (i)(4) of the AIM 
Act; and listing the specific restrictions on the use of HFCs by sector 
and subsector.

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

    The Allocation Framework Rule established regulatory definitions at 
40 CFR part 84, subpart A to implement the framework and begin the 
regulatory phasedown of HFCs under the AIM Act. To maintain 
consistency, except as otherwise explained in this rulemaking, EPA 
intends to use terms in this rulemaking, and in the new subpart B which 
is to be established by this rule, as they were defined in the 
Allocation Framework Rule. Thus, for terms not defined in this subpart 
but that are defined in 40 CFR 84.3, the definitions in 40 CFR 84.3 
shall apply. A few terms (export, exporter, and importer) currently 
exist in 40 CFR 84.3 in the context of bulk regulated substances. EPA 
is proposing subpart B definitions for those terms that would clarify 
how those terms apply to regulated substances that are used by or 
contained in products under subpart B. Other than that proposed change, 
these proposed definitions would mirror the text in the 40 CFR 84.3 
definitions of export, exporter, and importer. As EPA explained in the 
Allocation Framework Rule, whether products using or containing HFCs 
are admitted into or exiting from a foreign-trade zone or other duty 
deferral program under U.S. Customs and Border Protection (CBP) 
regulations does not affect whether they are being imported or exported 
for purposes of part 84. See 86 FR 55133 (October 5, 2021) (discussing 
definitions of export and import under 40 CFR 84.3).
    EPA is also proposing to establish definitions for new terms that 
are applicable only under 40 CFR part 84, subpart B and do not have a 
counterpart in the definitions under 40 CFR part 84, subpart A. These 
terms are: blend containing a regulated substance, manufacture, 
product, regulated product, retrofit, sector, subsector,

[[Page 76753]]

substitute, and use. The definitions that EPA is proposing to include 
in 84.52 for application to 40 CFR part 84, subpart B are as follows:
    Blend containing a regulated substance. EPA is proposing to 
establish restrictions on the use of HFCs, whether neat or used in a 
blend. Blends containing a regulated substance are used in multiple 
sectors and subsectors including refrigeration, air conditioning and 
heat pump, foam blowing, and fire suppression. EPA is proposing to 
define this term as ``any mixture that contains one or more regulated 
substances used in a sector or subsector.'' EPA would consider any 
quantity of a regulated substance within a mixture to qualify the 
mixture as a ``blend containing a regulated substance.''
    EPA is not proposing that a blend that uses one or more regulated 
substances is itself a regulated substance. Rather, the Agency is 
proposing use restrictions on the regulated substance(s) used in 
certain blends, such that the use restriction on the regulated 
substance(s) would also affect use of that blend. Most HFCs used in the 
sectors and subsectors addressed by this proposed rule are components 
of blends that contain other HFCs, HFOs, and hydrocarbons. As discussed 
in section V.A of this preamble, where the proportion of a regulated 
substance multiplied by its GWP, along with the proportion of the other 
components multiplied by their respective GWPs, causes the blend to 
exceed the GWP limit, the use of that HFC in that blend would be 
prohibited.
    Export. For purposes of subpart B, EPA is proposing to define this 
term to mean the transport of a regulated product from inside the 
United States or its territories to persons outside the United States 
or its territories, excluding United States military bases and ships 
for onboard use.
    Exporter. For purposes of subpart B, EPA is proposing to define 
this term to mean the person who contracts to sell any regulated 
product for export or transfers a regulated product to an affiliate in 
another country.
    Importer. For purposes of subpart B, EPA is proposing to define 
this term to mean any person who imports any regulated product into the 
United States. Importer includes the person primarily liable for the 
payment of any duties on the merchandise or an authorized agent acting 
on his or her behalf. The term also includes:
    (1) The consignee;
    (2) The importer of record;
    (3) The actual owner; or
    (4) The transferee, if the right to withdraw merchandise from a 
bonded warehouse has been transferred.
    This proposed definition of importer, specifically paragraphs (3) 
and (4), would more closely align with the definition of ``importer'' 
at 19 CFR 101.1. Though the definition would vary in non-substantive 
ways from that in subpart A of 40 CFR part 84, no difference in 
interpretation between subparts is intended.
    Manufacture. EPA is proposing to define this term as to complete a 
product's manufacturing and assembly processes such that it is ready 
for initial sale, distribution, or operation. For equipment that is 
assembled and charged in the field, manufacture means to complete the 
circuit holding the regulated substance, charge with a full charge, and 
otherwise make functional for use for its intended purpose.
    This proposed definition is intended to apply similarly to how this 
term is applied in certain other use restrictions under title VI of the 
CAA and 40 CFR part 82. Because those restrictions bear certain 
similarities to restrictions proposed in this document, EPA is drawing 
on its past experience in implementing those provisions in this 
proposal, including for the definition of ``manufacture.'' EPA 
established restrictions on products, including appliances, foams, and 
aerosols under section 610 of the CAA (Nonessential Products Bans). EPA 
also established use prohibitions under section 605(a) of the CAA that 
addressed the use of certain ODS as a refrigerant in the manufacture of 
new appliances, including field charged appliances. See e.g., 40 CFR 
82.15(g)(4)(i), 40 CFR 82.15(g)(5)(i); see also 85 FR 15267 (March 17, 
2020) (describing the use restriction and when a field charged 
appliance is manufactured). The proposed definition of manufacture in 
this rulemaking is intended to address both products that are 
manufactured at a factory, including factory-charged appliances, and 
the assembly of field charged appliances. It is also intended to 
address field-charged equipment beyond appliances in the RACHP sector 
to include fire suppression equipment or other equipment that is 
assembled and charged on-site.
    Appliances used in commercial refrigeration, such as large chillers 
and industrial process refrigeration (IPR), typically involve more 
complex installation processes, which may require custom built parts, 
and typically are manufactured on-site (or field charged). Consistent 
with EPA's view of the term ``manufacture'' in its prior experience 
under title VI of the CAA and its implementing regulations, appliances 
such as these that are field charged or have the refrigerant circuit 
completed on-site are 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 (see, e.g., 85 FR 
15267, (March 17, 2020)).
    EPA is seeking comment on whether it should expand the definition 
for ``manufacture'' to include the manufacturing process, prior to the 
completion of the product containing or manufactured with a regulated 
substance or blend using a regulated substance.
    Product. EPA is proposing to define this term as ``an item or 
category of items manufactured from raw or recycled materials which is 
used to perform a function or task. The term product includes, but is 
not limited to: equipment, appliances, components, subcomponents, 
foams, foam blowing systems (e.g., pre-blended polyols), fire 
suppression systems or devices, aerosols, pressurized dispensers, and 
wipes.'' This definition is based on the definition of the term 
``product'' in regulations established under title VI of the CAA in 40 
CFR part 82 subparts C and E. EPA's view of what constitutes a product 
for purposes of use restrictions under subsection (i) mirrors its view 
under those provisions. Maintaining the same definition will provide 
clarity for the regulated community, as many are already familiar with 
the existing definitions in part 82. One difference from the part 82 
definition is the proposed addition of two examples: fire suppression 
systems and foam blowing systems. There had been confusion during the 
ODS phaseout whether these systems were a product or a bulk substance. 
For example, some aircraft lavatory fire suppression systems consist of 
trash containers equipped with a fire extinguisher, a discrete product 
that automatically discharges the extinguishant in the event of a fire, 
whereas more integrated fire suppression systems use a reservoir of gas 
in a detachable cylinder and piping to discharge into the protected 
space. EPA is proposing to clarify that the self-contained systems 
would be considered products, while system cylinders independent of the 
system would continue to be considered bulk. Polyol foam blowing 
systems consist of two cylinders, one of which contains the foam 
material and the other containing a blowing agent such as an HFC. The 
cylinder containing an HFC is not considered a bulk gas as the two are 
sold together and used as a single system.

[[Page 76754]]

    Regulated product. EPA is proposing to define this term as ``any 
product in the sectors or subsectors identified in Sec.  84.56 that 
contains or was manufactured with a regulated substance or a blend that 
contains a regulated substance, including products intended to be used 
with a regulated substance, or that is otherwise subject to the 
prohibitions of this subpart.'' EPA intends for this definition to 
broadly cover all products that use HFCs, whether they are high-GWP 
HFCs that are prohibited or lower-GWP HFCs that are subject to labeling 
and reporting provisions.
    Retrofit. The AIM Act defines ``retrofit'' as ``to upgrade existing 
equipment where the regulated substance is changed, which--(i) includes 
the conversion of equipment to achieve system compatibility; and (ii) 
may include changes in lubricants, gaskets, filters, driers, valves, o-
rings, or equipment components for that purpose.'' EPA is proposing to 
adopt the definition contained in subsection (i)(7)(A) of the AIM Act 
with the addition of examples of equipment. The definition in the AIM 
Act is similar to, but broader than EPA's definition of retrofit that 
was codified in 40 CFR part 82, subpart F. The AIM Act definition 
refers to ``regulated substance'' and ``equipment'' whereas the 
regulatory definition in Part 82 refers to ``refrigerant'' and 
``appliances.'' As such, in this context, EPA finds it reasonable to 
interpret this term as applying not just to refrigeration and air-
conditioning appliances, but all equipment that uses a regulated 
substance. EPA is proposing to add a non-inclusive list of examples--
such as air conditioning and refrigeration, fire suppression, and foam 
blowing equipment--recognizing that petitioners may seek, or EPA may 
establish, restrictions on other types of equipment using HFCs in the 
future.
    Sector. EPA is proposing to define this term as ``a broad category 
of applications including but not limited to: refrigeration, air 
conditioning and heat pumps; foam blowing; aerosols; chemical 
manufacturing; cleaning solvents; fire suppression and explosion 
protection; and semiconductor manufacturing.'' These categorizations 
and groupings would be similar to how the term ``sector'' is used in 
other contexts, such as EPA's Significant New Alternatives Policy 
(SNAP) Program, the Montreal Protocol Parties' Technology and Economic 
Assessment Panel (TEAP), the statutory language, and EPA's Vintaging 
Model. Entities potentially subject to rulemakings proposed under 
subsection (i) of the AIM Act are often the same entities affected by 
CAA title VI, including the CAA section 612 SNAP program, and may be 
familiar with the way EPA traditionally categorizes and groups sectors 
in that context. Moreover, TEAP is a globally recognized advisory body 
to the Montreal Protocol Parties, which provides technical information 
related to alternative technologies that use HFCs in sectors and 
subsectors. Entities with a global market presence and other 
stakeholders may be familiar with how TEAP defines sectors, and EPA's 
proposed definition of sector would be relatable to their understanding 
of the term.
    Subsector. EPA is proposing to define this term as ``processes, 
classes of applications, or specific uses that are related to one 
another within a single sector or subsector.'' Where appropriate, each 
sector can be subdivided into different subsectors which more narrowly 
highlights how the HFC is used. Entities potentially subject to 
rulemakings proposed under subsection (i) of the AIM Act are often the 
same entities affected by CAA title VI, including the CAA section 612 
SNAP program and may be familiar with the way EPA categorizes and 
groups sectors and subsectors, in that context. Therefore, EPA is 
proposing that the term ``subsectors'' include the concepts of ``end-
uses'' and ``applications'' under the SNAP Program (40 CFR 82.172). An 
example subsector is cold storage warehouses under the refrigeration, 
air conditioning and heat pump sector. Another example is the integral 
skin polyurethane subsector under foams.
    Substitute. EPA is proposing to define this term as ``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.'' Under this proposed definition, substitutes would 
include regulated substances (e.g., HFC-32 used in lieu of R-410A in 
commercial unitary AC), blends containing regulated substances (e.g., 
R-454B used in lieu of R-410A in residential unitary AC), blends that 
do not use a regulated substance (e.g., R-441A used in lieu of R-410A 
in window ACs), alternative substances (e.g., HFOs, hydrocarbons, R-
717, and R-744 (CO2)), and not-in-kind technologies (e.g., 
finger-pump bottles in lieu of aerosol cans, or vacuum panels in lieu 
of foam insulation).
    Use. EPA is proposing to define this term as ``for any person to 
take any action with or to a regulated substance, regardless of whether 
the regulated substance is in bulk, contained within a product, or 
otherwise, except for the destruction of a regulated substance. Actions 
include, but are not limited to, the utilization, deployment, sale, 
distribution, discharge, incorporation, transformation, or other 
manipulation.''
    EPA welcomes comment on these proposed definitions. EPA 
acknowledges that historical contexts may not fully capture all the 
ways that regulated substances are being used and is seeking comment on 
additional sectors and subsectors where regulated substances are used 
that would fit under this regulatory program.

B. How is EPA proposing to restrict the use of HFCs in the sector or 
subsector in which the HFCs are used?

    Subsection (i) authorizes EPA to by rule restrict, fully, 
partially, or on a graduated schedule, the use of a regulated substance 
in the sector or subsector in which the regulated substance is used. 
The provision grants EPA authority to fashion restrictions on the use 
of regulated substances in the sectors that use those substances and 
does not specify a particular approach as to how restrictions must be 
structured but lists a number of considerations EPA is to factor in, to 
the extent practicable, when promulgating restrictions. EPA is 
considering two possible approaches to structuring those restrictions 
in this proposal but recognizes that other approaches could be 
considered in the future that would also fit within the authority 
granted by this statutory provision.
    In considering the two approaches, we have taken into account the 
statutory text, feasibility, consistency with similar programs being 
implemented in the states and internationally, impacts on the regulated 
community and on innovation, efficiency of implementation, and other 
factors. Subsection (i)(4)'s ``Factors for Determination'' provides 
factors that EPA is to consider ``[i]n carrying out a rulemaking'' 
under subsection (i)(1). As a general matter, we interpret subsection 
(i)(1) to apply where EPA is deciding whether to impose a restriction 
on the use of a regulated substance in a sector or subsector and what 
that restriction should be (e.g., a full restriction or a partial 
restriction and on what timeframe). However, we also think the factors 
listed in subsection (i)(4) are informative in our consideration of how 
to structure restrictions, as some approaches may provide advantages 
with respect to some of the factors listed in subsection (i)(4) over 
others.

[[Page 76755]]

    We also note that while subsection (i)(1) identifies that EPA may 
restrict the use of a regulated substance ``in the sector or subsector 
in which the regulated substance is used,'' we think that, given EPA's 
authority to issue partial restrictions, the provision allows EPA to 
establish restrictions for particular uses of HFCs, such as products or 
applications, and that such restrictions do not need to apply uniformly 
across entire sectors or subsectors. Interpreting EPA's authority in 
this manner allows the Agency to tailor restrictions in accordance with 
the best available data and to consider relevant differences in, for 
example, the availability of substitutes with respect to technological 
achievability or affordability. For example, EPA is proposing 
restrictions for HFCs used in chillers for comfort cooling. However, 
chillers for comfort cooling with evaporating temperatures less than -
58 [deg]F are not included in this proposal due to limits in lower-GWP 
technology to meet the proposed restriction at this time.
    The two approaches to structuring subsection (i) restrictions that 
we are considering at this time were identified in the subsection (i) 
petitions granted by the Agency to date. They are: (1) to set GWP 
limits for HFCs used within a sector or one or more subsectors; and (2) 
to restrict specific HFCs, whether neat or used in a blend, by sector 
or one or more subsectors.\38\ For purposes of the restrictions 
proposed in this document, which largely respond to the subsection (i) 
petitions granted to date by the Administrator, we propose to primarily 
employ the GWP limit approach, with some exceptions where we think the 
specific-listing approach is more appropriate. We seek comment on both 
approaches and have provided sufficient information in this proposal 
and the docket to allow the Agency to finalize restrictions using 
either approach.\39\
---------------------------------------------------------------------------

    \38\ The restrictions on the use of an HFC under subsection (i) 
of the AIM Act proposed in this rulemaking are intended to 
complement and not conflict with existing restrictions established 
through other authorities. Other authorities would still apply.
    \39\ EPA provides a summary of sectors and subsectors affected 
by the proposed action, along with the proposed restriction in the 
form of GWP limits for most subsectors in section VII.F.2 of this 
preamble. The docket contains a list of specific substances that EPA 
is proposing to restrict should EPA finalize a specific listing 
approach to establish use restrictions rather than a GWP limit 
approach.
---------------------------------------------------------------------------

GWP Limit Approach
    This proposed approach would restrict the use of HFCs by 
establishing GWP limits for HFCs used in each sector or subsector, 
whether neat or used in a blend. By establishing GWP limits, only HFCs 
with GWPs below the proposed limit or HFCs used in blends with GWPs 
below the proposed limit for a particular sector or subsector could be 
used in that sector or subsector. If used neat, HFCs with GWPs at or 
above the GWP limit would be prohibited from use in that sector or 
subsector. If the HFC is used in a blend in the sector or subsector, 
compliance with the GWP limit would be determined based on the GWP of 
the blend. Blends containing an HFC with GWPs at or above the GWP limit 
would be prohibited from use in that sector or subsector.
    For HFCs used in a blend, EPA is proposing that the GWP of the 
blend would be calculated to incorporate all components of the blend, 
whether an HFC, HFO, HC or other constituent, using the 100-year 
integrated AR4 values. We note that the 100-year integrated GWP values 
in Table 2.15 of AR4 for the HFCs are equivalent to the exchange values 
listed in the AIM Act and thus what we plan to use here without change. 
For further details about determining the GWP of compounds that are not 
listed in AR4, see section V.A of this preamble.
    In most cases it is the specific HFC and the proportion of that HFC 
within the blend that determines the GWP of the blend as a whole. Under 
this proposal, EPA is not restricting the use of all HFC blends. For 
instance, if a GWP limit of 150 is established for regulated substances 
used in a particular sector or subsector, HFC-134a, which has a GWP of 
1,430, could not be used. However, R-451A, which is a blend of HFC-134a 
and HFO-1234yf, has a GWP of 146 and could be used in a sector or 
subsector with a GWP limit of 150. This approach would allow for the 
continued use of an HFC with a GWP above the limit EPA establishes when 
it is used in a blend with a GWP below the limit. There may be certain 
characteristics associated with a higher-GWP HFC that makes use of that 
substance in a blend particularly advantageous, such as reducing 
flammability. Making available substitutes that would not otherwise be 
available under an approach that did not permit the use of higher-GWP 
HFCs, even when in a lower-GWP blend, would achieve beneficial 
environmental impacts sooner, smooth the transition, and support 
innovation. This approach is consistent with the approach used by other 
governments including the European Union (EU). EPA notes that this 
approach would not change in any way the calculation established under 
40 CFR part 84, subpart A for determining the quantity of production 
and consumption allowances required for regulated substances used in 
blends.
    Even where petitions have asked EPA to restrict specific regulated 
substances or blends containing an HFC in various sectors and 
subsectors, EPA can translate those requests into restrictions using 
the GWP limit approach. EPA would select GWP limits that would, in 
effect, prohibit the use of named HFCs (neat) and named blends in the 
specified sector. For example, in its granted petition, Natural 
Resources Defense Council et. al. (NRDC) requested that the Agency 
restrict the use of R-507A (GWP 3,990), R-404A (GWP 3,920), R-428A (GWP 
3,610), R-422C (GWP 3,390), R-434A (GWP 3,250), HFC-227ea (GWP 3,220), 
R-421B (GWP 3,190), R-422A (GWP 3,140), R-407B (GWP 2,800), and R-422D 
(GWP 2,730) for new remote condensing units. In this example, EPA's 
starting point for considering a GWP limit for new remote condensing 
units would be 2,730, to include within the prohibition the blend with 
the lowest GWP among those in the petition. EPA then would use the 
considerations laid out in subsection (i)(4) to determine the 
appropriate GWP limit restriction that would also account for available 
substitutes in the remote condensing unit subsector; by definition, 
that proposed GWP limit would prohibit (or fully restrict) the specific 
named HFCs and blends containing HFCs requested by the petitioner.
    One benefit of the GWP limit approach is that the regulatory 
certainty it would provide would encourage the continued development 
and implementation of HFC substitutes with lower GWPs. Under this 
approach, companies would be free to innovate so long as the substitute 
did not exceed the GWP limit. Where EPA has established a GWP limit for 
a particular sector or subsector, based on available and 
technologically achievable substitutes, new HFCs or blends containing 
an HFC used in that sector or subsector would need to meet that 
threshold. This approach would also provide a more efficient and 
streamlined process for companies to employ these lower-GWP substitutes 
for new uses, because the existing restrictions would make clear 
permissible uses. A substance-specific listing approach could create 
hesitancy to innovate because it would be less clear whether EPA might 
restrict a particular blend containing an HFC after a company had 
already invested resources in developing it for a particular use. By 
establishing GWP limits, this program would foster

[[Page 76756]]

innovation to next-generation substitutes.
    Perhaps recognizing these same advantages, other governments 
undertaking programs to restrict HFCs have embraced this approach, 
including the state of California, Canada, and EU member countries. 
Many of the granted petitions including those submitted by 
environmental advocates, industry trade associations, and state 
governments, demonstrated broad support for using GWP limits. 
Furthermore, many of the businesses in the potentially affected sectors 
or subsectors are familiar with this approach already and may already 
comply with GWP limits in certain markets. Therefore, EPA's use of the 
GWP limit approach, which is familiar to companies operating in other 
jurisdictions, could potentially support innovation, transition, and 
compliance.
Specific Listing Approach
    The second approach EPA is considering would be to list 
specifically restricted HFCs and blends containing HFCs by sector or 
subsector. Using the NRDC petition example described previously, under 
this approach EPA would prohibit the use of the ten blends contained in 
the petition (R-507A, R-404A, R-428A, R-422C, R-434A, HFC-227ea, R-
421B, R-422A, R-407B, and R-422D) in new remote condensing units. The 
NRDC petition appears to be based on the SNAP Program's use of 
acceptable, acceptable subject to use conditions, and unacceptable 
lists and requests restrictions that would be equivalent to the changes 
of status in SNAP Rules 20 and 21 which were partially vacated and 
remanded to the Agency (80 FR 42870, July 20, 2015 and 81 FR 86778, 
December 1, 2016, respectively).\40\
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    \40\ After a court challenge, the D.C. Circuit partially vacated 
the SNAP 2015 Rule ``to the extent it requires manufacturers to 
replace HFCs with a substitute substance,'' and remanded to EPA for 
further proceedings. Mexichem Fluor, Inc. v. EPA, 866 F.3d 451, 464 
(D.C. Cir. 2017) (``Mexichem I''). However, the court upheld EPA's 
decisions in that rule to change the listings for certain HFCs in 
certain SNAP end-uses from acceptable to unacceptable as being 
reasonable and not arbitrary and capricious. Id. at 462-64. The same 
court later issued a similar partial vacatur for portions of the 
SNAP 2016 Rule. See Mexichem Fluor, Inc. v. EPA, 760 Fed. Appx. 6 
(Mem) (per curiam) (D.C. Cir. 2019) (``Mexichem II'').
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    While EPA's experience implementing the SNAP program under section 
612 of the CAA provides some insight into the advisability of using a 
substance specific listing approach to structure restrictions under 
subsection (i), EPA recognizes that Congress provided separate 
authority under subsection (i) of the AIM Act. Section 612(c) of the 
CAA requires EPA to promulgate rules making it unlawful to replace ODS 
with any substitute that it determines may present adverse effects to 
human health or the environment where it has identified an alternative 
that (1) reduces the overall risk to human health and the environment 
and (2) is currently or potentially available. Section 612(c) further 
requires EPA to ``publish a list of (A) the substitutes prohibited 
under this subsection for specific uses and (B) the safe alternatives 
identified under this subsection for particular specific uses.'' Under 
SNAP, EPA evaluates substances that can be used as alternatives based 
on a number of criteria and accordingly lists them as acceptable, 
unacceptable, acceptable subject to use conditions, acceptable subject 
to narrowed use limits, or pending. See 40 CFR 82.180(a)(7) (listing 
criteria for review) and 40 CFR 82.180(b) (describing types of listing 
decisions). EPA has considered more than 450 alternatives for eight 
industry sectors and more than 40 end-uses since 1994.\41\
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    \41\ As noted in section VII.A of this preamble, there is 
significant overlap between the sectors and subsectors identified in 
this proposal and how sectors and ``end-uses'' are categorized under 
the SNAP program.
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    Based on EPA's experience with using the substance-specific lists 
to establish use conditions or narrowed use limits under SNAP, we 
anticipate that using substance-specific lists to communicate the 
restrictions established under subsection (i) could be unwieldy and 
less advantageous. We note that in contrast to section 612(c) of the 
CAA, subsection (i)(1) does not expressly mention publication of a list 
for substances that are restricted. Moreover, the substance-specific 
approach could present the challenge of needing to continually update 
the list of HFCs and blends containing an HFC as they are introduced. 
For example, if EPA has already restricted one particular use of an HFC 
in a blend for a given use, a company could reformulate the blend 
slightly, even increasing the high-GWP HFC component, and start using 
it for that same use. EPA would then need to initiate a rulemaking to 
restrict that new HFC formulation for that use, even though it was 
clear from the outset that lower-GWP alternatives already existed.
    However, we acknowledge that the substance-specific listing 
approach may be simpler to implement in some instances, particularly 
when there are only one or a few regulated substances used or 
restricted in a specific sector or subsector. Listing these restricted 
substances explicitly would provide specificity to the regulated 
community as to exactly what is prohibited. It also allows anyone to 
compare the regulated substance used to the list of restricted 
substances and know whether the product is in compliance, avoiding the 
intermediate step of determining the GWP of the HFC or blend containing 
an HFC before knowing whether that particular substance meets the 
established limit.
    This approach may also be preferable when substitutes continue to 
be in development. It may be beneficial to allow additional time before 
establishing a GWP limit while still restricting those substances that 
have the highest environmental impact. This approach would allow for 
the adoption of multiple transitional substitutes and allow for the 
development of additional substitutes.
    We think both approaches could also be used in combination, with 
some subsectors having a GWP limit and others where specific substances 
are restricted. We note that petitions granted under subsection (i) 
requested restrictions using both of these approaches, and one possible 
approach for the final rule would be to establish, if appropriate, the 
type of restriction (GWP limit or substance-specific) requested in the 
petitions for that particular subsector. For example, most petitions 
regarding the RACHP subsectors requested GWP limit restrictions. EPA 
suspects that this may be due to the number of HFCs and blends 
containing an HFC used in those subsectors. However, in some cases not 
all petitioners were in agreement on the structure of the restriction. 
For example, some petitions regarding the cold storage warehouse 
subsector requested that EPA establish a GWP limit of 150 while others 
requested EPA to prohibit the use of listed HFCs and blends containing 
an HFC.
    The Agency is proposing to establish restrictions on the use of 
HFCs by establishing GWP limits by sector or subsector in most 
instances. As discussed further in section VII.F.3.e of this preamble, 
EPA is proposing to restrict specific HFCs, whether neat or used in a 
blend, in some instances where the situation making the substance 
specific listing approach is advantageous. EPA is seeking comment on 
the GWP limit approach, the specific listing approach, other possible 
regulatory models that the Agency should consider, and a combination of 
approaches either for this proposed rule or for future rulemakings 
under subsection (i) of the AIM Act.

C. Applicability

    The AIM Act provides that the Administrator may by rule restrict,

[[Page 76757]]

fully, partially, or on a graduated schedule, the use of a regulated 
substance in the sector or subsector in which the regulated substance 
is used. HFCs are used in a wide variety of applications, including 
refrigeration and air conditioning, foam blowing agents, solvents, 
aerosols, and fire suppression. In these applications, HFCs are often 
used as a refrigerant, foam blowing agent, and fire suppression agent 
or may be contained and used within a product. HFCs can also be used in 
processes such as solvent cleaning, blowing open cell foam, 
semiconductor manufacturing, or chemical usage.
    The AIM Act does not define ``use.'' The dictionary definitions for 
that term include ``to put into action or service'' \42\ and ``to take, 
hold, or deploy (something) as a means of accomplishing a purpose or 
achieving a result; employ.'' \43\ For several reasons, we think 
``use,'' in the context of subsection (i)(1), was intended to include 
actions taken with respect to regulated substances that occur at the 
market or industry level, such as manufacture, distribution, sale, 
offer for sale--i.e., to cover the presence of HFCs in products and 
processes in the U.S. market as a way of addressing their use in 
sectors and subsectors.
---------------------------------------------------------------------------

    \42\ Merriam-Webster. Available at: https://www.merriam-webster.com/dictionary/use.
    \43\ Lexico.com. Available at: https://www.lexico.com/en/definition/use.
---------------------------------------------------------------------------

    First, subsection (i) grants EPA authority to restrict the use of a 
regulated substance ``in the sector or subsector in which the regulated 
substance is used.'' While sectors and subsectors are not defined in 
the AIM Act, those terms suggest groupings or categories of related 
activity at an industry level, and as discussed in section VII.A of 
this preamble, EPA is proposing definitions for ``sectors'' and 
``subsectors'' that are consistent with historical usage of those terms 
in other programs--grouping together similar or related industrial or 
market uses in distinct sectors, for example, refrigeration and air 
conditioning, or foam blowing, or aerosols. ``Use of a regulated 
substance in the sector or subsector in which the regulated substance 
is used'' indicates that the grant of authority under subsection (i) 
was intended to cover a sector or subsector's use of a regulated 
substance, and that use certainly covers the inclusion of a regulated 
substance in a product \44\ to achieve a particular purpose or the 
employment of a regulated substance in a process, as those are 
prototypical uses for sectors that are most likely to be using 
regulated substances, such as the inclusion of an HFC as a refrigerant 
in a refrigerator or air conditioner for cooling purposes.
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    \44\ Similarly, subsection (i)'s authority extends to regulated 
substances contained in a blend and the use of that regulated 
substance within a blend by the sector or subsector in a product or 
process to achieve a particular purpose. In order to address the 
regulated substance within a blend, it may be appropriate to 
establish requirements that apply to use of the blend, although the 
blend itself is not a regulated substance.
---------------------------------------------------------------------------

    Second, because subsection (i) and the subsection (i)(4) factors 
are focused on broad, sector-level information, it is reasonable to 
interpret ``use'' broadly, in a way that would reach uses on a sector-
level basis. The subsection is titled ``Technology Transitions,'' and 
in subsection (i)(4), the Act directs EPA to consider certain factors, 
to the extent practicable, in issuing a rulemaking or making a 
determination to grant or deny a petition regarding use restrictions. 
The factors listed under subsection (i)(4) task the Agency with 
examining information relevant to industry-level sectors or subsectors 
that would inform consideration of the feasibility and advisability of 
a transition away from the use of a regulated substance in that sector 
or subsector, as well as consideration of whether that transition 
should be full, partial, or on a graduated schedule. For example, in 
subsection (i)(4)(B), the Act directs EPA to factor in ``the 
availability of substitutes for use of the regulated substance that is 
the subject of the rulemaking or petition, as applicable, in a sector 
or subsector, taking into account technological achievability, 
commercial demands, safety, consumer costs, building codes, appliance 
efficiency standards, contractor training costs, and other relevant 
factors, including quantities of regulated substances available from 
reclaiming, prior production, or prior import.'' The various subfactors 
in (i)(4)(B) help EPA to determine whether there are adequate available 
substitutes for a regulated substance that a sector or subsector could 
use, indicating feasibility, readiness, advisability, and degree of a 
sector or subsector transition away from the regulated substances in 
use. Similarly, the other factors in (i)(4)--to use best available 
data, to consider overall economic costs and environmental impacts, as 
compared to historical trends, and to consider the remaining phasedown 
period for regulated substances under the phasedown rule issued under 
subsection (e), if applicable--also fit with this understanding of 
EPA's task: to determine whether, when, and to what degree it is 
appropriate to establish a use restriction to facilitate the transition 
away from the use of regulated substances in a sector or subsector.
    Third, Congress provided EPA authority to issue restrictions that 
are full, partial, or on a graduated schedule. Fully restricting the 
use of a regulated substance in the sector or subsector in which it is 
used, by its terms, implies a full transition away from the use of that 
regulated substance in the given sector or subsector. We therefore 
understand the term ``use'' to be broad enough to achieve a full 
transition. In order to effectuate a full transition, we would have to 
be able to address all the aspects where the regulated substance is 
present in that sector or subsector of the market. There may be 
situations where a restriction is best targeted at points in the life 
cycle or market chain of the regulated substance that are subsequent to 
the incorporation of the regulated substance in a product or process, 
as well as points in the chain that are proximate to ultimate use. 
Thus, we interpret the term ``use'' as being broad enough to reach 
points such as transport or offer for sale.
    EPA therefore proposes to interpret use of a regulated substance in 
the sector or subsector for purposes of subsection (i) as ``for any 
person to take any action with or to a regulated substance, regardless 
of whether the regulated substance is in bulk, contained within a 
product, or otherwise, except for the destruction of a regulated 
substance. Actions include, but are not limited to, the utilization, 
deployment, sale, distribution, discharge, incorporation, 
transformation, or other manipulation.'' EPA's proposed definition of 
``use'' covers all of the links on the chain representing how regulated 
substances would be introduced, incorporated into products or 
processes, circulated, and made available in the U.S. market. To the 
extent EPA has determined, considering the (i)(4) factors, such as the 
availability of substitutes, that it is appropriate and possible to 
fully restrict the use of an HFC in a particular sector or subsector, 
we think that restriction must be able to extend across all the points 
in the chain. For example, if stakeholders submit a petition to EPA 
asserting that the Agency should fully restrict use of a certain HFC or 
HFCs over a certain GWP in motor vehicle air conditioning (MVAC), and 
EPA agrees such restriction is appropriate, based on consideration of 
the (i)(4) factors to the extent practicable, we interpret subsection 
(i) to authorize the restriction of such use of HFCs in every part of 
the market chain. A narrower interpretation could hamper EPA's ability 
to

[[Page 76758]]

effectively implement a full restriction on HFC use in a sector or 
subsector. For example, if EPA were to define ``use'' as only the 
manufacture of a product containing an HFC but not sale of that 
product, then the manufacture of a MVAC system with the restricted HFC 
would be prohibited, because the air conditioning sector would be 
restricted from that ``use'' of the HFC. Sale of MVAC systems 
manufactured with the restricted HFC would not be considered part of 
the sector's ``use'' of an HFC and would therefore be permissible, 
either because the unit had been imported or because it had made it to 
store shelves, despite a restriction on its manufacture. This would 
circumvent the intended full transition of the MVAC subsector away from 
use of HFC. Covering all points in the chain of ``use in the sector or 
subsector'' ensures that the use restrictions we establish achieve 
their intended purpose. However, even though EPA's proposed definition 
of ``use'' is broad in order to facilitate a full transition to HFC 
substitutes where appropriate, that does not mean that in every 
instance the restrictions promulgated under subsection (i) will 
exercise that full authority. In many cases, including in this proposed 
action, EPA may issue partial restrictions that target only certain 
uses.
    The AIM Act also provides EPA other authorities to issue certain 
regulations for the purpose of maximizing reclamation and minimizing 
release of regulated substances from equipment and to ensure the safety 
of technicians and consumers.\45\ We have not yet established 
regulations under those provisions and therefore do not intend to apply 
our authority under (i) to actions associated with steps in the 
disposal or reclamation chain such as recovery, recycling, and 
reclamation of a regulated substance at this point.
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    \45\ As explained in the Allocation Framework Rule that in the 
context of allocating and expending allowances, EPA interprets the 
word ``consume'' as the verb form of the defined term 
``consumption.'' See 86 FR 55122, n. 7 Oct. 5, 2021); see also 
definition of ``consumption'' in subsection (b)(3) of the AIM Act 
and 40 CFR 84.3. The distinct term ``consumer'' is not defined in 
the AIM Act. In the context of subsection (i) of the AIM Act, we 
understand and are using the term ``consumer'' in a more general 
way, consistent with its everyday dictionary meaning, for example to 
refer to a person who purchases goods or services for personal use 
or the ultimate consumer of a product.
---------------------------------------------------------------------------

    We also do not intend that this rule apply to the ordinary 
utilization or operation of a regulated product by an ultimate 
consumer. Given that this is the outset of the phasedown of HFCs, there 
is an opportunity to efficiently achieve significant emission 
reductions by limiting the introduction of new products to the U.S. 
market and restricting the circulation of those products (e.g., sale 
and distribution) before they reach the ultimate consumer. We therefore 
are proposing restrictions on the manufacture, import, export, sale, 
and distribution of products, rather than on restricting ongoing, 
ordinary operation and utilization by ultimate consumers.\46\
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    \46\ We note, however, that in some cases the ultimate consumer 
may have purchased a product where the first incorporation of the 
regulated substance occurs when the product is in the ultimate 
consumer's ownership, and in those cases that incorporation would be 
covered by the proposed requirements.
---------------------------------------------------------------------------

    Further, in this rule, EPA is not proposing to apply the 
requirements established through this rulemaking to certain 
applications of HFCs eligible for application-specific allowances under 
40 CFR 84.13. Under subsection (i)(7)(B)(i) of the AIM Act, a rule 
promulgated under subsection (i) ``shall not apply to . . . an 
essential use under clause (i) or (iv) of subsection (e)(4)(B)'' of the 
AIM Act, ``including any use for which the production or consumption of 
the regulated substance is extended under clause (v)(II) of that 
subsection'' of the Act. Subsection (e)(4)(B)(iv) lists six 
applications which are to ``receive the full quantity of allowances 
necessary, based on projected, current, and historical trends'' for the 
five-year period after enactment of the AIM Act. EPA has codified these 
six applications at 40 CFR 84.13 and established a framework for 
allocation of allowances for these application-specific needs. Under 
the implementing regulations at 40 CFR 84.13, the following 
applications are currently eligible to receive application-specific 
allowances for calendar years through 2025: (1) as a propellant in 
metered dose inhalers; (2) in the manufacture of defense sprays; (3) in 
the manufacture of structural composite preformed polyurethane foam for 
marine use and trailer use; (4) in the etching of semiconductor 
material or wafers and the cleaning of chemical vapor deposition 
chambers within the semiconductor manufacturing sector; (5) for 
mission-critical military end uses; and (6) for onboard aerospace fire 
suppression. Therefore, EPA is not proposing to apply the requirements 
under this rulemaking to these uses of HFCs in these six specific 
applications at this time, since they are currently receiving 
application-specific allowances under 40 CFR 84.13. This aspect of the 
proposal is reflected in the proposed exemption in section 84.58. 
Further, EPA has not at this point designated any essential uses under 
subsection (e)(4)(B)(i). If EPA makes such a designation in the future, 
EPA would consider at that point how to ensure consistency with 
subsection (i)(7)(B)(i).
1. Which uses is EPA proposing to restrict in this proposal?
    Under the proposed definition of ``use'' EPA would be exercising 
its authority under subsection (i) to cover a broad chain of activities 
associated with regulated products. In this rule, EPA's proposed 
restrictions on that broad chain of activities are designed to apply 
only at certain points in this chain, consistent with the direction 
that EPA ``may by rule restrict, fully, partially, or on a graduated 
schedule.'' With respect to the specific sector and subsector 
restrictions proposed in this document, EPA proposes to adopt a uniform 
understanding of when the restrictions would begin to apply and 
explains in this section how the commencement of EPA's restrictions 
would apply to both regulated products manufactured in the United 
States and imported regulated products.
    For purposes of this rule, EPA is proposing restrictions on newly 
manufactured products (and the subsequent sale, distribution, export, 
and offer for sale or distribution of those products) and is not 
proposing to apply the specific use restrictions that are the subject 
of this action to existing products or equipment and used products or 
equipment, except as to the import of existing or used products or 
equipment. For additional discussion regarding products for export, see 
section VII.C.2 of this preamble. For additional discussion regarding 
existing products or equipment, see section VII.C.3 of this preamble.
    We think the most efficient and effective way to encourage 
transition from the use of these HFCs is to restrict the incorporation 
of HFCs into products entering the U.S. market for the first time. This 
restriction would primarily be borne by original equipment 
manufacturers (OEMs) and importers of products, as these are the 
entities that introduce products into the U.S. market. Given that this 
is the first rulemaking under subsection (i), and there are many 
products that are currently being manufactured or imported using HFCs 
and blends containing HFCs (or are intended to use HFCs and blends 
containing HFCs) in the sectors and subsectors for which EPA is 
proposing restrictions, the use restrictions in this proposed rule are 
intended to only apply to the manufacture and import of regulated 
products and the subsequent sale, distribution, export, and offer for 
sale or distribution of those products.

[[Page 76759]]

    EPA is proposing that the compliance date for the restrictions on 
the sale, distribution, or export of a regulated product be one year 
after the compliance date for the prohibition on production and import. 
Most of the proposed restrictions on the manufacture and import of 
products using HFCs have a proposed compliance date of January 1, 2025. 
As such, restrictions on the sale and distribution of those products 
would be January 1, 2026. Providing one year to sell existing inventory 
should be sufficient given that compliance date would be more than two 
years from the date of the final rule and many manufacturers are 
anticipating this action. EPA prefers a time-limited period during 
which products can continue to be sold over an approach that 
indefinitely exempts the sale of existing inventory. Having a date 
certain for the sale and distribution of regulated products facilitates 
enforcement of the manufacturing and import restriction. Manufacturers, 
importers, and distributors can avoid stranding inventory by promptly 
beginning their transitions. EPA welcomes comment on the effect of a 
one-year sell through, including the potential for stranding inventory 
or disadvantaging entities that have completed their transitions.
    As noted, for the most part, EPA is designing its restrictions to 
apply to newly manufactured products and equipment rather than existing 
or used products and equipment (both addressed below). However, EPA is 
proposing to restrict the import of existing and used products that do 
not meet the proposed GWP limits or other restrictions. EPA does not 
interpret the AIM Act's restriction on EPA's authority to regulate 
equipment in existence in the sector or subsector prior to December 27, 
2020, as applying to imports of equipment that was manufactured prior 
to that date but was not imported until after that date (see section 
VII.C.3 of this preamble for additional discussion). EPA is electing to 
apply its GWP limit restrictions or other restrictions to imports of 
existing and used products and equipment because failing to prohibit 
the import of these products could have the effect of undermining the 
transition from higher-GWP HFCs in the sectors and subsectors that are 
the subject of this proposal. Permitting the import of existing and 
used products that did not meet the proposed restrictions could shift 
market share away from domestically manufactured products that use 
conforming lower-GWP HFCs or substitutes, towards imported products 
that continue to use higher-GWP HFCs. The goal of restricting the use 
of regulated substances (i.e., higher-GWP HFCs) in the named sectors 
and subsectors would be undermined if those sectors and subsectors 
simply shifted use to imported existing or used products containing 
higher-GWP HFCs. EPA is seeking comment on its proposal to apply 
restrictions on the use of HFCs to the import of existing and used 
products.
    The AIM Act defines ``import'' as ``to land on, bring into, or 
introduce into, or attempt to land on, bring into, or introduce into, 
any place subject to the jurisdiction of the United States, regardless 
of whether that landing, bringing, or introduction constitutes an 
importation within the meaning of the customs laws of the United 
States,'' and we have proposed to codify that definition into our 
subpart B regulations. We note that this statutory definition contains 
no threshold volume of business an entity would need to undertake in 
order to qualify as an importer. As such, EPA intends its proposed 
restrictions to cover any importation of regulated products. The 
Agency's intention is to cover the activities of importers bringing 
large shipments of products or equipment into the country, as well as 
activities of entities bringing smaller groups of regulated products 
into the country (e.g., driving a truckload of air conditioning units 
across the Canadian or Mexican border for sale in the United States).
    As discussed above, because EPA proposes to interpret ``use'' to 
include activities in the market chain involving regulated products 
that occur subsequent to manufacture or import, the proposed use 
restrictions would also apply to any person who sells, distributes, 
offers for sale or distribution, makes available for sale or 
distribution, or exports any regulated product in the sectors or 
subsectors controlled under subsection (i). Applying the restriction in 
this way ensures that the goal of restricting the use of regulated 
substances in the sectors or subsectors in which the regulated 
substances are used can be achieved, because the sector and subsector's 
use of the regulated substance is present in all these aspects of the 
market chain, and EPA's intention in this proposal is to restrict use 
across that chain. Therefore, even if a manufacturer or importer 
improperly introduces a regulated product that does not meet the 
proposed restriction into the U.S. market, distributors and retailers 
offering that product for sale, including online retailers, are also 
restricted from covered activities related to that product. The intent 
of the proposed restriction is to remove products that do not meet the 
proposed limits from circulation in the U.S. market.
    However, EPA is proposing not to apply its GWP limit restrictions 
or other restrictions to the sale or distribution, or offer for sale or 
distribution, of used products. By used products, we mean products that 
have been in the ownership of an ultimate consumer and have experienced 
ordinary operation or utilization by an ultimate consumer. Some 
regulated products, such as air-conditioning and refrigerated 
appliances, are often conveyed with the sale of a building and could 
not reasonably be excluded from that conveyance. Other regulated 
products may be incorporated into a larger good, such as an MVAC in a 
motor vehicle, which may be sold multiple times during the useful life 
of the good. Restricting the sale of used products or equipment that 
use HFCs likely would significantly decrease the value of those goods 
and impact the market for used products (e.g., trading in a used motor 
vehicle during the purchase of a new one). Extending the proposed 
restriction to the sale of used products could have overall detrimental 
environmental effects, by requiring consumers to discard products or 
equipment before the end of the product's useful life, and could 
negatively impact affordability for consumers by eliminating options to 
purchase used products. EPA typically has not restricted the sale of 
used products containing ODS and proposes to maintain a similar 
approach for this rule. We note that our proposed exemption for the 
sale or distribution, or offer for sale or distribution, of used 
products is intended to cover both individuals selling products they 
have used (e.g., an appliance they have owned and used for a period of 
time) as well as entities that do volume business in used products 
(e.g., stores selling second-hand goods or car-dealerships selling pre-
owned vehicles). However, this used products exemption is not intended 
to cover entities that purchase products that are subject to the 
proposed restrictions on manufacture and import, hold those products 
for a period of time, and then re-sell the products. We have 
accordingly specified that products must have experienced ordinary 
operation or utilization by an ultimate consumer for a period of time 
in order to qualify for the proposed used product exemption.

[[Page 76760]]

2. Would the proposed use restrictions also apply to products that are 
manufactured for export?
    As discussed above, EPA interprets a sector or subsector's ``use'' 
to cover not only manufacture and import of a regulated product, but 
also the subsequent activities in the market chain related to regulated 
products. Specifically, we interpret export to be included in the 
meaning of ``use.'' Where EPA has determined, consistent with 
consideration of the factors listed in subsection (i)(4), that it is 
appropriate to restrict the use of HFCs, we believe it would be 
reasonable for restrictions on domestically manufactured products 
intended for the U.S. market to apply equally to domestically 
manufactured products intended for export. Applying the proposed 
restrictions to all domestically manufactured regulated products treats 
materially similar uses of HFCs in the same manner. Including exports 
as one of the activities subject to the proposed rule's prohibitions 
would prevent the limited supply of HFCs in the United States from 
being exported in products that could use substitutes. A company cannot 
file for a request for additional consumption allowances based on the 
export of a product containing regulated substances; requests for 
additional consumption allowances are limited to the export of bulk 
HFCs. 40 CFR 84.17. As with products manufactured for domestic use, one 
intent of this regulation is to ensure that sectors and subsectors that 
are currently using HFCs and that are well-positioned, per EPA's 
determination under the (i)(4) factors, to transition to substitutes, 
actually make that transition, leaving more of the limited supply of 
HFCs for those sectors and subsectors that currently cannot use 
substitutes. In addition, including exports as a prohibited activity 
also supports global efforts to address HFC uses in light of the Kigali 
Amendment, and could be welcomed by countries that have or intend to 
also restrict the use of HFCs in a similar manner.
3. Would restrictions apply to existing equipment?
    Under subsection (i)(7)(B)(ii) of the Act, ``a rule promulgated 
under this subsection shall not apply to, . . . except for a retrofit 
application, equipment in existence in a sector or subsector before the 
date of enactment of this Act.'' 42 U.S.C. 7675(i)(7)(B)(ii). As such, 
EPA's proposed restrictions would not apply to the sale or 
distribution, or offer for sale or distribution, or export of any 
equipment that was in existence in the sector or subsector prior to 
December 27, 2020, the date on which the AIM Act was enacted.
    EPA is codifying the statutory exemption for equipment in existence 
in a sector or subsector prior to December 27, 2020, into the proposed 
regulations. We propose that modifications, servicing, or repairs to 
equipment in existence prior to December 27, 2020, would not be 
considered ``manufacture'' under this proposed rule, and that these 
actions with respect to existing equipment would therefore not change 
the status of whether this equipment ``existed'' prior to December 27, 
2020, and render such equipment subject to the proposed restrictions. 
Subsection (i)(7)(B)(ii) of the Act refers to equipment in existence 
before December 27, 2020. ``Equipment'' could encompass not just a 
product or appliance, but also components or parts of that product or 
appliance. Even if a person were to service, repair, or replace parts 
of a product or appliance, other parts of that equipment would still 
have been in existence prior to December 27, 2020, and would arguably 
be outside the scope of EPA's regulatory authority under subsection 
(i)(7)(B)(ii). In limited cases, where every part of a piece of 
equipment had been altered or replaced after December 27, 2020, such 
equipment would fall outside the statutory and regulatory exemption. In 
addition, under the AIM Act subsection (i)(7)(B)(ii), EPA retains 
authority to apply its restrictions to ``retrofit applications,'' where 
existing equipment is upgraded by changing the regulated substance 
used. See AIM Act subsection (i)(7)(A). The Act specifies that 
``retrofit'' is where upgrades are made to existing equipment where the 
regulated substance is changed and which ``(i) include the conversion 
of equipment to achieve system compatibility and (ii) may include 
changes in lubricants, gaskets, filters, driers, valves, o-rings, or 
equipment components for that purpose.'' EPA is not at this time 
proposing provisions addressing retrofits.
    EPA interprets subsection (i)(7)(B)(ii)'s limit on authority to 
regulate existing equipment to be applicable to equipment that existed 
before December 27, 2020, but is proposing that equipment be in the 
United States to qualify for that exception. Subsection (i)(7)(B)(ii) 
provides an exception for ``equipment in existence in a sector or 
subsector before December 27, 2020,'' (emphasis added) which EPA is 
proposing to interpret as a sector or subsector in the United States. 
In general, where those terms appear in the AIM Act, EPA understands 
them to mean the domestic sector or subsector, not the sector or 
subsector as it exists, operates, and functions in another country. For 
example, in assessing the availability of substitutes in a sector or 
subsector under subsection (i)(4)(B), EPA is proposing to, in general, 
analyze the various subfactors--consumer costs, building codes, 
appliance efficiency standards, contractor training costs--vis a vis 
the domestic impacted sector or subsector.\47\ Therefore, EPA is 
proposing that a product that was manufactured in another country and 
existed prior to December 27, 2020, but was not imported to the United 
States until after that date is not subject to subsection (i)(7)(B)'s 
limitation, because until it is imported into the United States, it is 
not ``in existence in the sector or subsector.'' EPA therefore proposes 
that its prohibitions on import would apply to all regulated products 
imported after the effective date of the rule, even if those products 
existed in another country prior to December 27, 2020.
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    \47\ EPA is examining international information for some of the 
analyses, such as research from international organizations about 
technological achievability, because such information has relevance 
for the sector or subsector in the United States.
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4. Effective and Compliance Dates of Rules Promulgated Under Subsection 
(i)
    Subsection (i)(6) of the AIM Act states that ``[n]o rule under this 
subsection may take effect before the date that is 1 year after the 
date on which the Administrator promulgates the applicable rule under 
this subsection.'' EPA interprets this provision as applying to the 
establishment of restrictions on use of HFCs under subsection (i)(1) of 
the Act. Therefore, EPA is proposing compliance dates for the proposed 
restrictions on the manufacture and import of regulated products that 
are at least one year from the date the rule is promulgated, in 
accordance with this statutory provision. Factors that may affect these 
compliance dates include the timing for availability of substitutes, 
the HFC phasedown schedule, and other factors such as building code 
updates.
    The proposed provisions that are focused on program administration 
and petitions processing (i.e., Sec.  84.64), do not include a delayed 
compliance date, so EPA proposes that those provisions come into effect 
30 days after publication of the final rule in the Federal Register. 
This approach is based on an interpretation that (i)(6) does not apply 
to those provisions because ``applicable rules'' in (i)(6) are

[[Page 76761]]

limited to rules that apply use restrictions under (i)(1). As a 
practical matter, the regulated industry to which a use restriction 
rule is being applied may need a full year to come into compliance with 
that restriction. While a petitioner may need some amount of time to 
collect the information this action proposes to impose, we think 30 
days is a reasonable timeframe in which to do so. EPA is soliciting 
comment on this interpretation and is also soliciting comment on 
whether it should instead interpret subsection (i)(6) to apply to the 
other provisions under subsection (i) and provide at least a year to 
come into compliance with those provisions as well.

D. How is EPA proposing to address restrictions on the use of HFCs 
requested in petitions granted?

    EPA is addressing three sets of petitions in this proposed action: 
the 11 petitions granted or partially granted on October 7, 2021; 
additional petitions submitted by the Air-Conditioning, Heating and 
Refrigeration Institute (AHRI) which updated previously submitted 
petitions; and two petitions granted by EPA on September 19, 2022. EPA 
is addressing these granted petitions in a single rulemaking rather 
than through separate proposals. In some instances, particularly where 
the petitioned sectors and subsectors overlap, responding through a 
single rulemaking allows for a complete analysis in a single location. 
Consistent with EPA's authority under subsection (i)(1) of the AIM Act, 
EPA is also proposing restrictions on the use of HFCs in certain 
sectors and subsectors that were not included in petitions received by 
the Agency to date.
1. Petitions Granted on October 7, 2021
    On October 7, 2021, EPA granted ten petitions and partially granted 
one petition under subsection (i) of the AIM Act (86 FR 57141, October 
14, 2021). Copies of petitions granted (including the full list of 
petitioners and co-petitioners), a detailed summary of each petition, 
and EPA's rationale for granting these petitions are available under 
Docket ID EPA-OAR-2021-0643. Five of the granted petitions specifically 
requested that EPA replicate, in varying degrees, certain restrictions 
on use of HFCs based on the changes of status contained in EPA's SNAP 
Rules 20 and 21. These five petitions were received from the Natural 
Resources Defense Council et al. (hereby, ``NRDC''); DuPont (two 
petitions); American Chemistry Council's Center for the Polyurethanes 
Industry (hereby, ``CPI''); and the Household & Consumer Product 
Association and National Aerosol Association (hereby, ``HCPA''). These 
petitions requested restrictions on the use of specific HFCs or blends 
containing HFCs in refrigeration, air conditioning, and heat pump, 
foams, and aerosols sectors.\48\ Another five petitions requested that 
EPA establish GWP limits for HFCs used in certain stationary AC and/or 
refrigeration subsectors. These petitions were received from the 
Environmental Investigation Agency et al. (hereby, ``EIA''), AHRI (two 
petitions), Association of Home Appliance Manufacturers (hereby, 
``AHAM''), and International Institute of Ammonia Refrigeration et al. 
(hereby, ``IIAR''). The one partially granted petition, submitted by 
California Air Resources Board et al. (hereby, ``CARB''), requested two 
types of restrictions: (1) certain restrictions on the use of HFCs 
contained in EPA's SNAP Rules 20 and 21 in the RACHP, foams, and 
aerosols sectors and (2) restrictions on the use of HFCs based on GWP 
limits in certain stationary AC and refrigeration subsectors. CARB also 
requested EPA regulations should not limit states' ability to further 
limit or phase out the use of HFCs in their jurisdictions.
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    \48\ EPA notes that while these petitioners requested that EPA 
establish restrictions on the use of HFCs by restricting specific 
HFCs or blends containing HFCs, it does not necessarily mean that 
these petitioners preferred this restriction format over 
establishing restrictions on the use of HFCs by establishing GWP 
limits. EPA believes that these petitioners requested restrictions 
on the use of specific HFCs and blends containing HFCs in this way 
to replicate the format presented in SNAP Rules 20 and 21.
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2. How is EPA proposing to address additional petitions that cover 
similar sectors and subsectors?
    EPA received two additional petitions from AHRI on August 19, 2021, 
and October 12, 2021. The first petition requested that EPA establish 
transition dates for ``New Refrigeration Equipment'' \49\ for certain 
commercial refrigeration subsectors listed, along with the associated 
maximum GWP. AHRI requested that the transition dates be at least two 
years after the adoption of safety standards and building codes.\50\ 
AHRI's second petition in this category requested that EPA establish 
transition dates for ``New Refrigeration Equipment'' for specific 
chiller applications listed, along with the associated maximum GWP.
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    \49\ AHRI suggests a definition for ``New Refrigeration 
Equipment'' as follows: equipment built with new components and 
equates to a nominal compressor capacity increase across the 
refrigeration appliance or an increase of the CO2 
equivalent of the refrigerant in the refrigeration appliance. Under 
this suggested definition, the replacement of components in Existing 
Refrigeration Systems would be permissible if the nominal compressor 
capacity is not increased across the refrigeration appliance or the 
CO2 equivalent of the refrigerant in the refrigeration 
appliance is not increased.
    \50\ A discussion on the status of safety standards and building 
codes that may impact compliance dates is in section VII.E of this 
preamble.
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    EPA is treating these two AHRI petitions as addenda to their 
October 7, 2021, granted petitions, and not as separate petitions, 
since the subsectors listed in these petitions are contained in the 
granted AHRI petitions and AHRI refers to these as further steps in the 
transition for these uses. The main difference between the requested 
action in these two petitions and the granted petitions is the lower 
GWP limits with later compliance dates. Since EPA is considers these 
two petitions as addenda to petitions granted on October 7, 2021, this 
proposed rulemaking addresses these requests.
3. Petitions Granted on September 19, 2022
    On September 19, 2022, EPA granted two additional petitions that 
requested EPA establish restrictions on the use of HFCs in certain 
commercial refrigeration subsectors based on GWP limits. These 
petitions were received from AHRI and IIAR and covered similar 
commercial refrigeration subsectors contained in petitions granted on 
October 7, 2021. One difference to note is that both the AHRI and IIAR 
petitions requested restrictions on the use of HFCs for equipment types 
beyond what was covered in many of the petitions granted on October 7, 
2021 (i.e., all equipment with refrigerant charge capacities less than 
200 pounds) in listed subsectors. EPA granted these petitions based on 
its consideration of the (i)(4) factors in light of the information 
then available. Given the Agency was already developing this proposed 
rulemaking which addresses restrictions the use of HFCs in the sector 
and subsectors contained in these newer petitions, recognizing the 
extensive overlap with the petitions granted on October 7, 2021, and in 
an effort streamline rulemakings, EPA is addressing these newer 
petitions in this proposal, as well. Copies of the AHRI and IIAR 
petitions can be found in the docket for this proposal.

E. Subsection (i)(4) Factors for Determination

    Subsection (i)(4) of the AIM Act directs EPA to factor in, to the 
extent practicable, a number of considerations in evaluating petitions 
and in carrying

[[Page 76762]]

out a rulemaking. EPA is not proposing regulatory text regarding these 
factors at this point; however, this section provides a summary of how 
the Agency interprets the (i)(4) factors and how EPA considered them 
for the current proposal. EPA's consideration of the (i)(4) factors 
served as the basis for the restrictions the Agency is proposing for 
each sector and subsector covered by this proposal (for additional 
discussion see section VII.F.1 of this preamble).
1. How is EPA considering best available data?
    Subsection (i)(4)(A) of the AIM Act directs the Agency to use, to 
the extent practicable, the best available data in making a 
determination to grant or deny a petition or when carrying out a 
rulemaking under subsection (i). In this context, EPA interprets the 
reference to best available data as an instruction with respect to the 
other factors under (i)(4) rather than as an independent factor. EPA 
notes best available data may not always mean the latest data. For 
example, the latest data may benefit from peer review. This should not 
be interpreted as meaning EPA would only consider best available data 
to be peer-reviewed data, but that peer review is one consideration 
that could inform our understanding of what is the best available data 
in particular situations.
    The best available data that the Agency is considering for this 
proposal includes, but is not limited to, the following: SNAP program 
listing decisions; Montreal Protocol reports by TEAP and its Technical 
Options Committees, and Temporary Subsidiary Bodies (e.g., Task 
Forces); \51\ TSDs from states with HFC restrictions; \52\ information 
from other federal agencies and departments (e.g., Department of 
Energy); proceedings from technical conferences; and journal articles. 
For some of the factors and subfactors, EPA developed TSDs that provide 
information from these sources and others that EPA believes to be the 
best available data. Furthermore, EPA is considering information 
provided to the Agency from industry, trade associations, environmental 
non-governmental organizations, academia, standard-setting bodies, 
petitioners, stakeholder meetings that the Agency hosted, and other 
sources in response to EPA making the petitions publicly available 
through Docket ID No. EPA-HQ-OAR-2021-0289, to the extent that we think 
such information represented best available data. EPA welcomes comment 
on these and other sources that the Agency should consider concerning 
the (i)(4) factors.
---------------------------------------------------------------------------

    \51\ The Technical Economic Assessment Panel is an advisory body 
to the parties to the Montreal Protocol and is recognized as a 
premier global technical body; reports available at: https://ozone.unep.org/science/assessment/teap.
    \52\ An example is CARB's Initial Statement of Reasons and 
Standardized Regulatory Impact Assessment (SRIA) report. Available 
at: https://ww2.arb.ca.gov/rulemaking/2020/hfc2020.
---------------------------------------------------------------------------

2. How is EPA considering the availability of substitutes?
    Subsection (i)(4)(B) of the AIM Act directs EPA to factor in, to 
the extent practicable, the availability of substitutes for use of the 
regulated substance that is the subject of the rulemaking or petition, 
as applicable, in a sector or subsector. Several factors inform the 
availability of substitutes for use in sectors and subsectors, based on 
the statutory language in subsection (i)(4)(B). As part of EPA's 
consideration of availability of substitutes, the AIM Act directs us to 
take into account, to the extent practicable, the following subfactors: 
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.
    EPA is not proposing definitions for each of these subfactors but 
is providing an interpretation of how consideration of the subfactors 
relates to the consideration of the availability of substitutes. EPA is 
considering the (i)(4)(B) subfactors collectively, with no one 
subfactor solely governing the restrictions proposed for any sector or 
subsector. EPA is not required to weigh all subfactors equally when 
considering the availability of substitutes. Subsection (i)(4) directs 
the Agency to consider the factors listed in (i)(4), including 
availability of substitutes, ``to the extent practicable.'' EPA 
interprets this phrase to extend to its consideration of the subfactors 
in (i)(4)(B), given that these subfactors are to be taken into account 
in considering the availability of substitutes ``to the extent 
practicable.'' Furthermore, not all the subfactors in (i)(4)(B) may be 
applicable to each sector or subsector. For example, appliance 
efficiency standards would not be applicable to aerosols. Similarly, it 
may not be practicable to consider some subfactors in some situations; 
for example, there may not be sufficient available data regarding a 
specific subfactor. Likewise, EPA anticipates that in most situations, 
no single subfactor will be dispositive of its consideration of the 
availability of substitutes under subsection (i)(4)(B). For this 
proposal, the Agency's consideration of the availability of substitutes 
took into account, to the extent practicable, the relevant subfactors 
using the best available data. Additional information on some of these 
subfactors is available in the docket.
    Lower-GWP HFCs and substitute substances and technologies that can 
be used in place of higher-GWP HFCs have been the subject of evaluation 
for decades. EPA, state and foreign governments, industry standards 
organizations, and international advisory panels have long been 
identifying and assessing substances that can be used in lieu of 
higher-GWP HFCs and their predecessors, often for uses within the 
sectors and subsectors subject to this proposal. EPA has therefore 
drawn upon information generated by these efforts in considering the 
subsection (i)(4) factors in the context of this proposal, and in 
particular, in considering the availability of substitutes under 
subsection (i)(4)(B). While these entities have evaluated substitutes 
for HFCs in other contexts, the information generated by these efforts 
provides a useful starting point. For example, in the SNAP program 
under section 612 of the Clean Air Act, EPA identifies and evaluates 
substitutes for ODS in certain industrial sectors, including 
refrigeration, air conditioning, and heat pumps (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 and global 
warming potential, 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. These 
assessments under SNAP are relevant to some of the subsection (i)(4) 
factors, particularly with respect to safety (and the resultant impact 
on availability of a substitute under (i)(4)(B)) and environmental 
impacts. We have therefore considered SNAP assessments and listings of 
acceptable substances in our

[[Page 76763]]

consideration of the (i)(4) factors and establishment of use 
restrictions under subsection (i).
    Further, manufacturers and formulators submit substitutes to EPA 
for evaluation under SNAP which can lead to the substitute being added 
to the list of acceptable substances. EPA believes that if a 
manufacturer has submitted a substance for evaluation under SNAP, it 
would be reasonable to consider that as a possible indication that the 
substitute is technologically achievable for a given sector and that 
there is commercial demand for it. In addition, a substitute listed by 
EPA as acceptable for a given end-use under SNAP would most likely have 
been submitted by industry only if the submitter felt that the 
substitute was possibly technologically achievable and that there could 
be a market for such substitute.
    In this proposal, EPA has also considered the work undertaken by 
the TEAP. The TEAP analyzes and presents technical information and 
recommendations when specifically requested by parties to the Montreal 
Protocol. It does not evaluate policy issues and does not recommend 
policy. Such information is related to, among other things, substitutes 
that may replace the substances controlled under the Protocol and 
alternative technologies that may be used without adverse impact on the 
ozone layer and climate. The TEAP assesses the technical and economic 
feasibility of substitutes for sectors and subsectors that use HFCs and 
publishes various technical reports through different technical 
committees, such as the Refrigeration, Air Conditioning, and Heat Pumps 
Technical Options Committee.\53\ In TEAP's evaluation of HFC 
substitutes, subfactors such as technological achievability and 
affordability have been considered to some extent. For this proposal, 
EPA considered technical and economic information from the TEAP's 2018 
Quadrennial Assessment Report and the recent 2022 Progress Report, 
including the response to ``Decision XXXIII/5--Continued provision of 
information on energy-efficient and low-global-warming-potential 
technologies'' found in Volume 3 of the Progress Report.\54\ \55\ \56\
---------------------------------------------------------------------------

    \53\ The TEAP 2018 Quadrennial Assessment Report includes 
sections for each of the Technical Options Committees (TOC): 
Flexible and Rigid Foams TOC, Halons TOC, Methyl Bromide TOC, 
Medical and Chemicals TOC, and Refrigeration, Air Conditioning and 
Heat Pumps TOC. Available at: https://ozone.unep.org/science/assessment/teap.
    \54\ In accordance with Article 6 of the Montreal Protocol, 
every four years the parties request assessments from various 
advisory bodies, including the TEAP's quadrennial assessment of the 
sectors and subsectors covered by the petitions. Under Decision 
XXVIII/2 the TEAP is also instructed to review HFC substitutes every 
five years. The parties also routinely request reports considering 
transitions and/or related topics (e.g., commercial fisheries, 
energy efficiency for the refrigeration and air conditioning 
sector).
    \55\ TEAP 2022 Progress Report (May 2022) and 2018 Quadrennial 
Assessment Report. Available at: https://ozone.unep.org/science/assessment/teap.
    \56\ Volume 3: Decision XXXIII/5--Continued provision of 
information on energy-efficient and low-global-warming-potential 
technologies, Technological and Economic Assessment Panel, United 
Nations Environment Programme (UNEP), May 2022. Available at: 
https://ozone.unep.org/system/files/documents/TEAP-EETF-report-may-2022.pdf.
---------------------------------------------------------------------------

    EPA also considered materials developed by or submitted to state 
and foreign governments with requirements that restrict the use of 
HFCs. Many of these jurisdictions highlight available substitutes that 
can be used for regulated substances that are the subject of this 
proposed rulemaking. This is not an exhaustive list of sources that EPA 
could use in the future to consider the availability of substitutes. 
Section VII.E.1 of this preamble describes additional sources of 
information that the Agency considers to be best available data. For 
future Agency actions under the technology transitions program, EPA 
would likely again consider information from these sources to assess 
availability of substitutes but notes that the Agency may augment or 
omit sources where appropriate to be consistent with the Agency's 
interpretation of subsection (i)(4)(A).
    In this proposal, EPA is identifying substitutes \57\ for use of 
regulated substances in specific sectors or subsectors by reviewing 
information from several of these sources, which the Agency considers 
to be best available data. EPA compiled a non-exhaustive list of 
substitutes available that informed the GWP limit or restriction that 
EPA is proposing. See American Innovation and Manufacturing Act of 
2020--Subsection (i)(4) Factors for Determination: List of Substitutes, 
referred to in this preamble as the ``List of Substitutes TSD.'' That 
TSD and list were developed after considering, to the extent 
practicable, the (i)(4)(B) subfactors, as discussed below and in the 
other TSDs available in the docket. Substitutes for regulated 
substances have been identified in this list as available for the 
sectors and subsectors for which EPA is proposing restrictions.
---------------------------------------------------------------------------

    \57\ Inclusion of a substitute, either in the preamble or the 
docket, is for informative purposes only and is not intended as an 
EPA endorsement or recommendation.
---------------------------------------------------------------------------

    EPA notes that some of the substitutes EPA lists as available for a 
sector or subsector may not be available uniformly throughout the 
United States and/or be subject to state or local regulations, 
including building codes (see section VII.E.2.d of this preamble). The 
AIM Act directs EPA to factor in, to the extent practicable, the 
availability of substitutes but does not limit our consideration to 
only those substitutes that can be used without restrictions, including 
state or local regulations. EPA is also considering research and 
development both in the United States and in other countries, which may 
indicate the availability of substitutes for use in the near or long 
term. EPA notes that the list of substitutes in the docket, in 
isolation, does not represent EPA's complete analysis of the 
availability of substitutes.
    The rest of this section provides information on EPA's 
interpretation of the subfactors that subsection (i)(4)(B) directs EPA 
to take into account, to the extent practicable, in assessing the 
availability of substitutes.
a. Commercial Demands and Technological Achievability
    Two of the separate subfactors that subsection (i)(4)(B) directs 
EPA, to the extent practicable, to take into account in its 
consideration of availability of substitutes are commercial demands and 
technological achievability. This section provides information on how 
the Agency views each term on its own, their potential impact on 
availability of substitutes, and their interconnectedness.
    EPA views commercial demands as interest from OEMs and product 
manufacturers to use substitutes in products for ultimate sale or 
distribution. An OEM's interest in using a substitute is tied to their 
ability to meet consumer needs. One method to determine commercial 
demands is to assess what types of products in a sector or subsector 
are for sale and what regulated substances or substitutes are being 
used. Another means for assessing commercial demands is to review the 
information companies provide including but not limited to information 
concerning planned releases of products or equipment using substitutes.
    EPA views technological achievability as the ability for a 
substitute to perform its intended function in a sector or subsector. 
For example, technological achievability can be demonstrated through a 
substitute's compliance with or listing by standard setting bodies such 
as ASHRAE or the Underwriters Laboratories (UL) or use through testing 
and demonstration labs and projects.
    EPA is providing additional information in the TSD American

[[Page 76764]]

Innovation and Manufacturing Act of 2020--Subsection (i)(4) Factors for 
Determination: Technological Achievability and Commercial Demands, 
referred to in this preamble as the ``Commercial Demands and 
Technological Achievability TSD''; this TSD supports the Agency's 
consideration of the commercial demands and technological achievability 
subfactors and is available in the docket. The Commercial Demands and 
Technological Achievability TSD identifies information on products 
using substitutes that are commercially available (i.e., products for 
sale), or where manufacturers indicate they soon will be available, by 
sector and subsector. EPA views commercial availability of products 
using substitutes as an indication of both commercial demand and 
technological achievability. In other words, a product using an 
available substitute in a market means that the particular substitute 
is technologically achievable and that there is a commercial demand for 
that substitute. The Agency relied on a range of sources and considered 
where products are already available as well as where products are 
expected to be available given their use in other countries and/or 
manufacturer announcements. These sources include, but are not limited 
to, publicly available data such as information on ENERGY STAR 
products, company websites, SNAP listings, news articles, market 
reports, and communication with industry experts. EPA also considers 
information that was provided to relevant state bodies as informative 
when considering whether a technology is achievable or in commercial 
demand for the purposes of evaluating available substitutes in their 
respective rulemakings. Another source for considering technological 
achievability and commercial demand is the information provided by 
petitioners.\58\ EPA notes that the Agency did not attempt to consider 
all versions and models of all products or equipment in every sector or 
subsector.
    EPA is not limiting its consideration of commercial demands and 
technological achievability to a specific geographic region since 
products may be introduced in a few markets first. The information 
provided in this proposed rule and the Commercial Demands and 
Technological Achievability TSD available in the docket are based on 
the best available data and were considered to the extent practicable.
    EPA is seeking comment on the Agency's interpretation of commercial 
demand and technological achievability and their potential impact on 
availability of substitutes.
b. Consumer Costs and Affordability for Residential and Small Business 
Consumers
    Subsection (i)(4)(B) directs EPA, to the extent practicable, to 
take into account consumer costs and affordability for residential and 
small business consumers, among other subfactors, in its consideration 
of availability of substitutes. For this proposed action, which is 
targeted at restricting the use of HFCs in products by certain sectors 
and subsectors, EPA is considering these two subfactors together. EPA 
views residential and small business consumers as a subset of consumers 
at large, and any estimated costs to consumers because of proposed use 
restrictions includes costs to these groups. Most small businesses and 
most consumers, including residential consumers, would be downstream of 
the actions that would be taken in response to the proposed 
restrictions. Upstream users would include manufacturers who could be 
introducing new products that conform with the proposed restrictions, 
while most small businesses, such as installers and service 
technicians, would be further downstream of such actions, as would most 
consumers, including residential customers.
    EPA evaluated the impacts of the rule on small business consumers 
in affected sectors and found that the vast majority of affected small 
businesses will experience zero or positive net impacts due to the 
reduced costs of substitute chemicals as compared to HFCs. EPA also 
expects the impacts on service technicians to be minimal because the 
transitions to different refrigerants required by this proposed rule 
are already occurring in many of the subsectors addressed due to 
compliance with other regulations being implemented in some states. 
Although not affecting the entire United States, the advantages of 
having products that can be sold nationally and comply with regulations 
in export markets has led many manufacturers to begin the transition to 
HFC alternatives. Further, several corporations have established 
internal sustainability goals and as part of those efforts they are 
addressing the HFC used in their businesses and products. Additional 
information on potential impacts of the proposed rule on small 
businesses can be found in the Small Business Regulatory Enforcement 
Fairness Act (SBREFA) \59\ screening analysis located in the docket for 
this rulemaking.
---------------------------------------------------------------------------

    \59\ Economic Impact Screening Analysis for Restrictions on the 
Use of Hydrofluorocarbons under Subsection (i) of the American 
Innovation and Manufacturing Act, available in the docket.
---------------------------------------------------------------------------

    One factor that affects affordability for residential and small 
business consumers is up-front capital costs for new equipment. 
Compared to large businesses, both groups may be less likely to be able 
to afford high up-front capital costs that, for some subsectors, may 
ease the transitions. Such costs, however, do not have to be borne 
immediately by either residential or small business consumers. This 
rule does not propose that equipment be retired by any specific date, 
nor are estimates of emission reductions associated with these proposed 
restrictions predicated on the assumption that equipment would be 
retired prematurely. Additionally, HVAC services generally comprise 
only a small fraction of income for residential consumers.
    We expect that under the HFC phasedown, access to HFCs, both newly 
manufactured and reclaimed, will continue far into the future 
particularly given that the AIM Act directs EPA to phase down and not 
to phase out HFC production and consumption. There already exists a 
network of reclaimers who offer reclaimed HFCs that can be used to 
service existing equipment for its full useful life. EPA notes that 
reclaimed chlorofluorocarbons (CFCs) and hydrofluorocarbons (HCFCs) 
remain available in the United States for servicing equipment that was 
designed, sold, installed, and may today still be operated by 
residential consumers and small businesses throughout the United 
States. Furthermore, as explained in this section below, we find that 
overall, the proposed rule is expected to provide net savings to the 
economy, which may in turn be passed on to small businesses and 
residential consumers.
    For this proposal, which covers a wide range of sectors and 
subsectors, EPA has prepared a Costs and Environmental Impacts TSD 
summarizing some analytical results--including the expected costs and 
negative costs (i.e., savings) to industry associated with 
transitions--that we factored in, in our consideration of these 
subfactors. Specifically, the Costs and Environmental Impacts TSD 
summarizes the increase in costs, or the savings, to industry 
associated with transitioning from a regulated substance to a 
substitute. EPA believes that the best way to analyze consumer costs 
and affordability is to look not at the cost of a product using a 
substitute, but rather at expected changes in costs resulting

[[Page 76765]]

from the transition. Hence, this discussion (and the Costs and 
Environmental Impacts TSD) refers to the cost of a regulated product 
with a substance that complies with the proposed restriction compared 
to that same product using a prohibited substance. For example, for the 
residential and light commercial air conditioning and heat pump 
subsector, the costs of manufacturing units that use lower-GWP 
substances or blends (e.g., R-454B), and maintaining the operation of 
that equipment, compared to those costs for a baseline unit (e.g., one 
that uses R-410A including the operation and maintenance of that unit), 
are used to generate an approximate accounting of the full cost (or 
potential savings) of the transition. To the extent available, energy 
efficiency changes, which can result in savings to, or costs borne by, 
the consumer, were factored into the transition scenarios analyzed. EPA 
notes that the Costs and Environmental Impacts TSD analysis indicates 
that the substitute used could be more or less expensive than the 
regulated substance currently or recently used. However, we note that 
the cost of using a regulated substance or substitute generally 
represents only a small fraction of the total cost of the product.\60\ 
Even a large change in the cost of the substance that is realized as a 
result of the transition (i.e., from using a regulated substance to 
using a substitute) would therefore not usually have a significant 
impact on the overall cost of the product. Further, given that many 
substitutes are engineered to perform in a similar manner as the 
regulated substance (e.g., R-513A, R-452B, and R-454B are designed to 
perform like HFC-134a, R-404A, and R-410A, respectively), the equipment 
to use them would typically not need extensive redesign and would be 
expected to have a similar cost and similar performance with either the 
regulated substance or the substitute.
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    \60\ U.S. Department of Energy (DOE), Technical Support 
Document: Energy Efficiency Program for Consumer Products: 
Residential Central Air Conditioners and Heat Pumps, December 2016. 
Available at: https://www.regulations.gov/document?D=EERE-2014-BT-STD-0048-0098.
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    Data to develop the cost estimates summarized in the Costs and 
Environmental Impacts TSD were derived from a variety of information 
sources including technical literature and experts, and EPA also 
provides additional details regarding the data used in the RIA addendum 
and its accompanying appendices and references cited. The cost factors 
were applied to develop transition scenarios, consistent with this 
proposed rule, using EPA's Vintaging Model and, the resulting costs and 
abatement were used in a similar manner as the Marginal Abatement Cost 
(MAC) analysis explained in the Allocation Framework RIA.
    It is likely the costs for HFCs will increase given the phasedown 
of HFC production and consumption mandated in the AIM Act and the 
global HFC phasedown under the Kigali Amendment to the Montreal 
Protocol. The Agency is aware of some price increases to date. However, 
EPA notes that for the RACHP sector, the cost of refrigerant is less 
than one percent of the entire cost of the system, and the highest 
costs come from raw materials such as copper, steel, and aluminum that 
are used to make the equipment.\61\ In most cases, with newer, more 
efficient refrigerants, less refrigerant is necessary in the finished 
product. This can decrease the amount of copper, steel, and aluminum 
necessary for the product since it decreases the amount of raw material 
needed to create heat transfer elements in the equipment. The most 
recent increases in the price of HFCs are not included in this 
analysis, and the savings from using less raw materials and improved 
energy efficiency are only applied where literature supporting such 
claims was found. Thus, estimated costs of these proposed restrictions 
(as presented in the Costs and Environmental Impacts TSD) are 
conservative, and the net savings would likely be higher than 
estimated. Further, the costs of substitutes are likewise not modeled 
as changing over time. Although some substitutes are modeled as being 
more costly than HFCs today, the experience with the ODS phaseout has 
been that prices generally decline as production increases, as more 
producers negotiate licensing agreements for certain chemicals, and as 
patents expire. For example, EPA compiled a memo in the docket which 
provides a non-exhaustive list of several announcements that have been 
made regarding the initiation or updating of production plants for 
various substitutes.\62\ Here again, estimated costs, as presented in 
the Costs and Environmental Impacts TSD, are conservative. EPA will 
continue to monitor these markets to determine whether updates to our 
analysis are appropriate. As such, we request comment on information 
regarding up-to-date costs of HFCs and substitutes, and the energy-
efficiency implications when applied to equipment in the subsectors 
addressed in this proposed rule, to help inform our analysis of costs.
---------------------------------------------------------------------------

    \61\ Consumer Cost Impacts of the U.S. Ratification of the 
Kigali Amendment, JMS Consulting in partnership with INFORUM, 
November 2018. Available in the docket.
    \62\ See memo in the docket that presents company announcements 
of increased production of lower-GWP substitutes. This memo is for 
informational purposes and does not represent endorsement by the 
Agency. EPA further notes that this memo is a non-exhaustive 
sampling of announcements; there may be other companies announcing 
increased production of lower-GWP substitutes.
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    EPA has previously analyzed ``consumer costs'' in relation to 
``compliance costs'' and found very little difference in these.\63\ EPA 
performed this analysis, placed in the docket, as Congress was 
considering the AIM Act in 2019. Part of the reason for this is that 
energy efficiency changes of equipment when switching from a regulated 
substance to a substitute, where available, are included in our 
estimates of compliance costs. These costs (or savings) would likely 
not affect the installer or service technician, but would be considered 
a consumer cost, as it is the consumer who would be affected by this 
change in energy efficiency through a higher or lower electric bill. 
The consumer could be a residential consumer or a small business 
consumer, for instance a restaurant buying a new air conditioning unit.
---------------------------------------------------------------------------

    \63\ See ``American Innovation and Manufacturing Act of 2019: 
Compliance and Consumer Cost Estimates'' document in the docket.
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    Another cost that can be assumed to be a cost to consumers is the 
possible mark-up costs of chemicals sold to the consumer, for example 
as part of a bill for servicing or repairing an air conditioner where 
additional refrigerant was needed. Compared to the regulated substance, 
the substitute could be more or less expensive, and hence the mark-up 
costs could be more or less than that of the regulated substance. EPA 
incorporated this cost to consumers in a previous analysis of the HFC 
phasedown as stipulated in the AIM Act that Congress was considering in 
2019. In that analysis, the costs to consumers were approximately $0 to 
$200 million less than the compliance costs, depending on the 
compliance step-down year (2020, 2024, 2029, and 2034 were analyzed). 
Compared to the total cumulative costs or savings estimated, these 
differences represented no more than a 20 percent difference, and in 
all cases were decreases in total costs or increases in total savings. 
Therefore, our cost estimates take into account consumer costs and 
affordability for residential and small business consumers insomuch as 
the estimated costs are likely conservative, and the savings to 
consumers would be greater.
    EPA also analyzed whether the proposed action could have a 
significant

[[Page 76766]]

economic impact on a substantial number of small business consumers. 
The analysis found that approximately 162 of the 51,047 potentially 
affected small businesses could incur costs in excess of one percent of 
annual sales and that approximately 110 small businesses could incur 
costs in excess of three percent of annual sales. Based on this 
analysis, we do not anticipate a broad, significant economic impact on 
small businesses as a result of this proposal.
    EPA is seeking comment on the Agency's interpretation of consumer 
costs and affordability for small business and residential consumers 
and their potential impact on availability of substitutes.
c. Safety
    Subsection (i)(4)(B) directs EPA, to the extent practicable, to 
take into account safety in its consideration of availability of 
substitutes. As part of EPA's consideration of safety, EPA is providing 
additional information in the TSD American Innovation and Manufacturing 
Act of 2020--Subsection (i)(4) Factors for Determination: Safety, 
referred to in this preamble as the ``Safety TSD''; this TSD supports 
the Agency's consideration of the safety subfactor and is available in 
the docket. EPA is reviewing information on flammability and toxicity 
as well as the ability of substitutes to meet relevant industry safety 
standards. In our interpretation of best available data, we are 
evaluating information from recognized industrial sources, including 
standard-setting bodies, the SNAP program, international technical 
committees, and information from petitions. Safety information on 
substitutes may impact the availability of substitutes for use in a 
particular sector or subsector, for example, if there are restrictions 
on the use of a substance in local building codes and/or regulatory 
requirements. Industry acceptance of substitutes that are compliant 
with safety standards may also be an indication of safety and, 
therefore, impact the use of a particular substitute.
    EPA does not believe that taking into account safety in its 
consideration of the availability of substitutes is intended to limit 
substitutes to only those that are risk free. EPA has noted under the 
SNAP program that the Agency does not require substitutes to be risk 
free (59 FR 13044, March 18, 1994). Many industry standards are 
designed to mitigate risk and allow for the safe use of flammable, 
toxic, or high-pressure substitutes. EPA therefore understands the 
direction to take into account safety, to the extent practicable, as 
encompassing consideration of information on the risks associated with 
the substitute as well as other information that concerns risk 
mitigation.
    EPA has considered the listings under the SNAP program in its 
assessment of the availability of substitutes in this proposed rule. 
The SNAP program, in making decisions to list a substitute as 
acceptable or unacceptable, considers whether a substitute presents 
human health and environmental risks that are lower than or comparable 
to overall risks from other substitutes that are currently or 
potentially available. Under this comparative risk evaluation, the 
human health risks analyzed include safety, and in particular, 
flammability, toxicity, exposure to workers, consumers, and the general 
population of chemicals with direct toxicity; and exposure of the 
general population to increased ground-level ozone. Under the SNAP 
program, EPA makes decisions that are informed by its overall 
understanding of the environmental and human health impacts. EPA can 
list substitutes as ``acceptable subject to use conditions,'' 
indicating that a substitute is acceptable only if used in a certain 
way. Use conditions can include, but are not limited to, warning 
labels, charge limits, unique fittings for servicing of equipment, and 
restrictions on where a substitute is used (e.g., normally unoccupied 
spaces). EPA can also list substitutes as ``acceptable subject to 
narrowed use limits,'' indicating that a substitute may be used only 
within certain specialized applications within a sector and end-use and 
may not be used for other applications within an end-use or sector. EPA 
lists a substitute as acceptable subject to narrowed use limits because 
of a lack of available substitutes within the specialized application. 
Under the acceptable for narrowed use limits category, users of a 
restricted substitute within the narrowed use limits category must make 
a reasonable effort to ascertain that other substitutes or alternatives 
are not technically feasible for reasons of performance or safety. 
Users are expected to undertake a thorough technical investigation of 
alternatives to the otherwise restricted substitute. Although users are 
not required to report the results of their investigations to EPA, 
users must document these results and retain them in their files for 
the purpose of demonstrating compliance.
    In its evaluation of the safety subfactor under subsection 
(i)(4)(B), EPA is also considering the safety group classification of 
refrigerants as designated by the ASHRAE Standard 34. This standard 
assigns to a refrigerant, including those that could be used under 
EPA's proposed restrictions, a safety group classification consisting 
of two to three alphanumeric characters (e.g., A2L or B1). The initial 
capital letter indicates the toxicity, and the numeral and trailing 
letter, if any, denotes the flammability. Under this standard, Class A 
refrigerants are those for which toxicity has not been identified at 
concentrations less than or equal to 400 parts per million (ppm) by 
volume, based on data used to determine threshold limit value-time-
weighted average (TLV-TWA) or consistent indices. Class B signifies 
refrigerants for which there is evidence of toxicity at concentrations 
below 400 ppm by volume, based on data used to determine TLV-TWA or 
consistent indices. However, some refrigerants that are listed under 
the B (higher toxicity) classification of ASHRAE 34 have been used 
safely and effectively for many years. For example, after the CFC 
phaseout, several companies offered comfort cooling chillers using 
HCFC-123, and at least one has since transitioned to R-514A in part of 
its product line. These systems generally have low leak rates, are 
located away from building occupants in limited-access areas (e.g., 
mechanical rooms) with secured entrances, and utilize refrigerant 
sensors and alarms to alert operators of leaks. Building codes further 
reduce risks for example by requiring mechanical ventilation to the 
outdoor space where such systems are placed.
    The standard also assigns refrigerants a flammability 
classification of 1, 2, 2L, or 3. Tests for flammability are conducted 
in accordance with American Society for Testing and Materials (ASTM) 
E681 using a spark ignition source at 140 [deg]F (60 [deg]C) and 14.7 
psia (101.3 kPa) \64\. The flammability classification ``1'' is given 
to refrigerants that, when tested, show no flame propagation. The 
flammability classification ``2'' is given to refrigerants that, when 
tested, exhibit flame propagation, have a heat of combustion less than 
19,000 kJ/kg (8,169 Btu/lb), and have a lower flammability limit (LFL) 
greater than 0.10 kg/m\3\. The flammability classification ``2L'' is 
given to refrigerants that, when tested, exhibit flame propagation, 
have a heat of combustion less than 19,000 kJ/kg (8,169 BTU/lb), have 
an LFL greater than 0.10 kg/m\3\, and have a maximum

[[Page 76767]]

burning velocity of 10 cm/s or lower when tested in dry air at 73.4 
[deg]F (23.0 [deg]C) and 14.7 psi (101.3 kPa). The flammability 
classification ``3'' is given to refrigerants that, when tested, 
exhibit flame propagation and that either have a heat of combustion of 
19,000 kJ/kg (8,169 BTU/lb) or greater or have an LFL of 0.10 kg/m\3\ 
or lower.
---------------------------------------------------------------------------

    \64\ ASHRAE, 2019. ANSI/ASHRAE Standard 34-2019: Designation and 
Safety Classification of Refrigerants.
---------------------------------------------------------------------------

    For flammability classifications, refrigerant blends are designated 
based on the worst case of formulation for flammability and the worst 
case of fractionation for flammability determined for the blend.

Figure 1. Refrigerant Safety Group Classification
[GRAPHIC] [TIFF OMITTED] TP15DE22.028

    Information on the ASHRAE classification of each substitute 
identified by EPA for this proposal and additional information on EPA's 
consideration of safety are available in the Safety TSD in the docket. 
EPA is seeking comment on the Agency's interpretation of safety and its 
potential impact on availability of substitutes and the effect of 
switching to substitutes on worker and consumer safety in the 
subsectors affected by this proposed action.
d. Building Codes
    Subsection (i)(4)(B) directs EPA, to the extent practicable, to 
take into account building codes in its consideration of availability 
of substitutes. For certain types of equipment, especially in the RACHP 
sector, building codes may inform which substances can be used or may 
prescribe additional requirements before a specific substance can be 
used, thereby impacting availability of substitutes for particular 
sectors and subsectors. This section summarizes EPA's understanding of 
building code development across the nation generally and how model 
building codes are developed and adopted into local building codes. EPA 
is considering this information, to the extent practicable, to evaluate 
how building codes may affect the availability of substitutes to 
regulated substances. EPA is providing additional information in the 
TSD American Innovation and Manufacturing Act of 2020--Subsection 
(i)(4) Factors for Determination: Building Codes, referred to in this 
preamble as the ``Building Codes TSD''; this TSD supports the Agency's 
consideration of the building codes subfactor and is available in the 
docket.
    Building codes are established at the subnational level and can 
differ greatly across jurisdictions. Some states develop their own 
building codes and determine the frequency with which they are updated. 
Other states adopt (and sometimes amend) ``model'' building codes that 
are written by code-setting organizations. Code-setting organizations 
include the International Association of Plumbing and Mechanical 
Officials (IAPMO), the International Code Council (ICC), and the 
National Fire Protection Association (NFPA). Many states allow local 
governments to set their own building codes, provided they comply with 
the minimum standards established under state building codes. Both 
state and local building codes are periodically reevaluated and 
updated. The Agency did not review changes to every jurisdiction's 
building codes as EPA does not view that as practicable.
    Model building codes, which serve as the basis for many state and 
local building codes, incorporate a range of industry standards that 
establish specific requirements for building performance or design. 
Several of these standards are directly relevant to the availability of 
substitutes in the RACHP sector. For this proposed action, EPA is 
considering, to the extent practicable, updates to industry standards 
and if those updates may be incorporated into model building codes that 
will allow the future use of products that use substitutes. EPA also is 
considering whether current building codes permit the installation and 
use of products using substitutes.
    Model codes are typically updated on a three-year cycle, and most 
model building codes were last updated in 2021; the next scheduled 
updates are for 2024. Several proposed changes in the current code 
development cycle (i.e., for the 2024 codes) could enhance the 
availability of HFC substitutes under model building codes in future 
years. For example, ICC, an international developer of model codes, 
standards, and building safety solutions, approved fourteen code 
changes that affect the availability of A2L refrigerants for the RACHP 
sector. These code changes, which will go into effect in 2024, are 
consistent with updated industry standards that allow the use of 
substitutes identified in this proposed rulemaking; however, state and 
local building code agencies do not automatically adopt updates to the 
model codes. As a result, there may be delays between when the model 
codes are updated and when the updated codes are adopted by state and 
local agencies.
    Information from stakeholders, including petitioners, indicates 
that building codes are being updated both as part of the cyclical 
review and off cycle that would allow for the use of additional HFC 
substitutes. For example, several states such as Oregon, California, 
and Colorado have recently made, or are considering making, changes to 
their codes that would effectively incorporate updated industry 
standards as reflected in the model code changes that occurred in 2021. 
Updated codes may require automatic refrigerant leak detection systems, 
circulating fans, and labeling and handling instructions

[[Page 76768]]

for flammable refrigerants in certain applications and installations.
    Given that building codes can vary greatly throughout the United 
States and that many of the most relevant building codes have either 
been updated recently or are likely to be updated in the near future, 
EPA's consideration of building codes is limited to model building 
codes. Additional information on EPA's consideration of building codes 
can be found in the Building Codes TSD in the docket. EPA is seeking 
comment on to what extent EPA can take into account building codes 
recognizing that they vary based on local circumstance.
e. Appliance Efficiency Standards
    As part of the Agency's consideration of the availability of 
substitutes as directed by subsection (i)(4)(B), EPA is taking into 
account, to the extent practicable, the appliance efficiency standards 
that are applicable to products in the affected sectors and subsectors. 
The Agency consulted with U.S. Department of Energy (DOE) regarding 
relevant minimum energy efficiency standards and the timing for any 
planned changes to the current standards.\65\ DOE, through its Building 
Technologies Office and Appliance and Equipment Standards Program, sets 
minimum energy efficiency standards for more than 60 different 
products, including appliances and equipment used in homes, businesses, 
and elsewhere. Several of these categories are within the RACHP sector 
and may use HFCs that are covered in this proposed action. Among 
product categories relevant to this action are consumer products (e.g., 
refrigerators, freezers, and room air conditioners) and commercial and 
industrial products (e.g., automatic commercial ice machines, vending 
machines, walk-in coolers, and walk-in freezers).\66\ EPA is providing 
additional information in the memo American Innovation and 
Manufacturing Act of 2020--Subsection (i)(4) Factors for Determination: 
Appliance Efficiency Standards, referred to in this preamble as the 
``Appliance Efficiency Standards memo''; this memo supports the 
Agency's consideration of the appliance efficiency standards subfactor 
and is available in the docket.
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    \65\ For additional information, please refer to the U.S. 
Department of Energy's Appliance and Equipment Standards Program 
available at: www.energy.gov/eere/buildings/appliance-and-equipment-standards-program.
    \66\ For additional information and a complete list of products, 
please refer to the U.S. Department of Energy's website available 
at: www.energy.gov/eere/buildings/standards-and-test-procedures.
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    The DOE Appliance and Equipment Standards Program regularly 
develops and updates test procedures and appliance efficiency 
standards. Future revisions to existing appliance efficiency standards 
could impact what substitutes can be used in regulated products in 
specific sectors and subsectors. Therefore, EPA is consulting with DOE 
so both agencies are aware of the schedules for these separate but 
related actions. EPA has identified a list of applicable standards in 
relevant sectors and subsectors and which standards may be undergoing 
current revision in the Appliance Efficiency Standards memo. We 
understand that for redesign and testing of equipment, industry prefers 
that DOE and EPA regulations are synchronized where possible. Given DOE 
and EPA operate under separate mandates, that may not always be 
possible, but sharing information early can reduce inconsistencies such 
that, to the extent possible, the refrigerants used to set performance 
standards will be available under the technology transitions program. 
EPA also recognizes the potential to greatly increase climate 
protection by both reducing the GWP of substances used in the relevant 
applications (e.g., construction foams, appliances foams, and 
refrigerants) covered by this action in the sectors and subsectors we 
are addressing and supporting energy efficiency in such applications.
    EPA is seeking comment on to what extent the Agency should consider 
current and future minimum energy efficiency standards in taking into 
account appliance efficiency standards in the context of subsection 
(i)(4)(B). EPA further solicits information on the opportunities to 
further climate protection by supporting energy efficiency at the same 
time we are restricting the use of HFCs.
f. Contractor Training Costs
    As part of the Agency's consideration of the availability of 
substitutes as directed by subsection (i)(4)(B), EPA is taking into 
account, to the extent practicable, available information on contractor 
training costs, including training related to substitutes for relevant 
sectors and subsectors (e.g., certain RACHP, foam blowing, and fire 
suppression subsectors). EPA obtained some contractor training and exam 
cost data through a review of publicly available literature and from 
industry trade and training associations in these sectors as well as 
information submitted to EPA in petitions under subsection (i). EPA 
notes that it would not be feasible to obtain information and data on 
all available training programs and exams and our review represents an 
assessment to the extent practicable of information in relevant sectors 
and subsectors for contractor training costs. Some substitutes, 
including but not limited to flammable (A3 or B3), lower flammability 
(A2L or B2L), higher toxicity (B1, B2L, B2, or B3) refrigerants, and 
other substitutes with unique or different issues such as those 
operating at higher pressures than HFCs, may require specialized or 
additional training, knowledge, or expertise to ensure their safe 
handling and use. To the extent practicable, the Agency is considering 
the cost of trainings to contractors for handling products and 
equipment containing substitutes for HFCs or blends containing HFCs 
substitutes.
    Manufacturers and trade organizations often provide training and 
certification beyond what is required under the regulations 
implementing sections 608 and 609 of the CAA for installing and 
servicing equipment in conjunction with the release of new equipment. 
This is not a new practice; however, as the transition to lower-GWP 
refrigerants continues, more technicians are expected to work with A2L 
and A3 refrigerants, and a variety of training and education resources 
are anticipated to include the incorporation of A2L and A3 refrigerants 
into existing curriculum. There are already courses, trainings, and 
conferences that focus on lower-GWP refrigerants available among 
product categories and across the country. Costs of trainings may be 
dependent on several factors, such as the organization providing the 
study materials, how the exam is administered, and the location.\67\
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    \67\ In some cases, continued RACHP education may be required at 
the state level as a part of a state licensing requirement; training 
on using flammable refrigerants may be incorporated to fulfill this 
requirement.
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    In the foam blowing and aerosols sectors, certain applications may 
require safety training. In particular, the Occupational Safety and 
Health Administration (OSHA) requires that contractors providing in 
situ installation of spray foams, foam insulation, and aerosols receive 
health and safety training regarding the hazards of working in confined 
spaces and procedures to avoid injury from fall hazards. OSHA issued a 
standard reflected in 29 CFR 1926 Subpart AA--Confined Spaces in 
Construction, which requires that employers provide employees free 
training to ensure that the employee understands the hazards of working 
in a confined space. Additional trainings and exams are

[[Page 76769]]

available beyond the basic required safety training and may vary in 
costs depending on the level and amount of training a contractor 
obtains.
    EPA is seeking comment on our consideration of contractor training 
costs in the context of subsection (i)(4)(B) in the sectors and 
subsectors covered in this proposed action.
g. Quantities of Regulated Substances Available From Reclaiming, Prior 
Production, or Prior Import
    As part of the Agency's consideration of the availability of 
substitutes as directed by subsection (i)(4)(B), EPA is taking into 
account, to the extent practicable, information on quantities of HFCs 
from reclamation and stockpiles of previously produced or imported 
HFCs. EPA is providing additional information in the TSD American 
Innovation and Manufacturing Act of 2020--Subsection (i)(4) Factors for 
Determination: Quantities Available from Reclaiming, Prior Production, 
or Prior Import; this TSD supports the Agency's consideration of the 
quantities available from reclaiming, prior production, or prior import 
subfactor and is available in the docket HFCs available from stockpiles 
or reclamation can smooth transitions to alternative technologies and 
ensure that existing equipment can continue to be serviced. The Agency 
knows from its experience under the ODS phaseout the important role 
reclamation in particular plays by providing an ongoing supply of 
material. This is true not only for the RACHP sector but a similar 
approach is also used for the fire suppression sector. Some companies 
choose to stockpile substances and use them to smooth transition. EPA 
cannot estimate how much material will be stockpiled for a particular 
sector or subsector or by a particular company; however, the Agency can 
consider this approach as a general matter.
    Information that EPA is considering includes HFC reclamation data 
submitted annually in accordance with the Clean Air Act section 608 
reclamation program, codified at 40 CFR part 82, subpart F; 
reclamation, production, and import data reported under 40 CFR part 84, 
subpart A; \68\ data gathered to support development of the AIM Act 
subsection (e) regulations contained in the docket for the 40 CFR part 
84, subpart A rules; \69\ and data reported to the GHGRP under subparts 
OO and QQ.
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    \68\ In addition to quarterly data, under 40 CFR 84.31, HFC 
producers, importers, exporters, application-specific allowance 
holders, reclaimers, and fire suppressant recyclers must annually 
report the quantity of each regulated substance held in inventory as 
of December 31 of each year. As this information becomes available 
in future, it can inform EPA's consideration of this factor.
    \69\ Available at www.regulations.gov, in Docket ID No. EPA-HQ-
OAR-2021-0044.
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    EPA is seeking comment on the likely quantities of regulated 
substances available from reclaiming and stockpiling and how that may 
be factored into the availability of substitutes in the sectors and 
subsectors covered in this proposed action. In addition, EPA is 
interested in information on stockpiles of used HFCs that do not 
require reclamation (e.g., same ownership) that may also be stored by 
companies and how those stockpiles may be used.
3. How is EPA considering overall economic costs and environmental 
impacts, as compared to historical trends?
    Subsection (i)(4)(C) directs the Agency to factor in, to the extent 
practicable, overall economic costs and environmental impacts, as 
compared to historical trends. The Act does not prescribe how EPA 
should carry out its consideration of this factor, nor does the statute 
clearly delineate what is meant by the phrase ``as compared to 
historical trends.'' In light of the ambiguity, we interpret the 
language of (i)(4)(C) as purposefully accommodating of many different 
types and degrees of analysis of economic costs and environmental 
impacts (including costs and impacts that may be difficult to quantify) 
in part because the nature of EPA's action when applying this provision 
can differ greatly depending on the circumstances.
    Subsection (i)(4)(C) applies both to EPA's action on subsection (i) 
petitions and to EPA's rulemakings under subsection (i). Subsection (i) 
requires EPA to grant or deny petitions within 180 days of receipt, a 
time period that inherently limits the scope and depth of any potential 
analysis under subsection (i)(4)(C). EPA's timeframe for promulgating a 
rule subject to a granted petition is two years from the date of a 
petition grant, and in undertaking a rulemaking, whether by negotiated 
rulemaking or not, EPA will undoubtedly perform more in-depth analysis 
of economic costs and environmental impacts than we would in the more 
abbreviated statutory period allotted for petition decisions. As 
worded, particularly read in light of subsection (i)(4)'s 
acknowledgement that consideration of some factors will be limited by 
practicability (i.e., ``to the extent practicable''), the provision has 
flexibility to permit EPA to tailor its consideration of this factor 
accordingly.
    We note also that subsection (i)(4)(C) would apply to cases where 
EPA is considering a broad swath of restrictions--such as this proposed 
action, which if finalized would cover more than 40 sectors and 
subsectors--as well as cases where EPA is contemplating a much more 
limited set of restrictions--potentially for only one sector or 
subsector. There may be instances, then, where it is appropriate for 
EPA to prepare detailed analyses such those in the Costs and 
Environmental Impacts TSD, but also times when new analyses of similar 
detail would be unnecessary or inappropriate. As discussed in this 
section, EPA considered several different sources of information when 
factoring in subsection (i)(4)(C) to EPA's consideration of potential 
use restrictions. This information included but was not limited to the 
Costs and Environmental Impacts TSD, information previously developed 
by EPA concerning HFCs and transitions, our experience with the ODS 
program, industry reports, information developed by the TEAP, the 
Montreal Protocol's Science Assessments, and other research.
    It is also not clear from the plain language of the statute what 
information EPA should consider when thinking about ``historical 
trends,'' and how EPA should ``compare'' ``overall'' economic cost and 
environmental impact information about newly contemplated restrictions 
to those trends. Here too we think the ambiguity of these phrases 
accommodates consideration of a variety of information and comparisons 
depending on the circumstances and the available information.
    In undertaking this proposed action, EPA does not yet have 
historical overall economic cost and environmental impact trends for 
previous use restrictions, or transitions from HFCs to substitutes, 
under subsection (i) to compare with the overall economic costs and 
environmental impacts of the contemplated restrictions. However, we 
think it is practicable and reasonable to in part interpret our 
obligation to factor in the considerations under subsection (i)(4)(C) 
for this proposal by looking at the overall economic costs and the 
anticipated environmental impacts of our proposed restrictions as 
compared to a scenario where historical trends had continued into the 
future, that is, a projection of ``business as usual'' conditions. For 
purposes of this proposal, we think a reasonable reading of that 
scenario is conditions that would occur if only the Allocation 
Framework Rule and the proposed 2024 Allocation Rule were in effect, 
and the analysis in

[[Page 76770]]

the Costs and Environmental Impacts TSD therefore uses as a baseline 
what would occur absent these proposed restrictions. As noted, we do 
not think subsection (i)(4)(C) requires a specific type of analysis, 
like the one EPA has conducted for purposes of this Costs and 
Environmental Impacts TSD, and we anticipate that the Agency could 
consider this (i)(4) factor using a different type of analysis in the 
future.
    Additionally, as this is the first set of proposed restrictions 
under subsection (i) and, if finalized, would result in the first 
requirements under the AIM Act to transition away from certain 
regulated substances in certain sectors and subsectors, we also think 
information about impacts to costs from historical comparable 
technology transitions in similar contexts is appropriate. As noted 
elsewhere, HFCs are used mainly in the same sectors and subsectors 
where ODS were used. EPA therefore has considered the overall economic 
costs and environmental impacts of actions taken under the CAA title VI 
regulations on ODS in a memo \70\ available in the docket.
---------------------------------------------------------------------------

    \70\ See ``Overview of CFC and HCFC Phaseout'' document in the 
docket.
---------------------------------------------------------------------------

    EPA acknowledges that the ODS phaseout and transitions away from 
HFCs as a result of use restrictions each have their own unique 
regulatory features and technological transitions at play, potentially 
leading to different overall economic impacts and environmental 
benefits. The memo discussing the costs and environmental impacts of 
the ODS phaseout is included as supplemental information and as a 
relevant benchmark, as the transition to HFC substitutes will impact 
many of the same industries and entail--in some cases--similar 
technological shifts. This same information has been made available by 
EPA previously.
    One key historical trend observed during the ODS phaseout, and that 
may be relevant to similar technology transitions for HFCs during the 
HFC phasedown, is that technology transitions did not necessarily drive 
up the cost of products to the consumer or hurt the performance of 
products. A clear example of this was discussed in a 2018 report of the 
TEAP.\71\ From 1972 through 2015, household refrigerators sold in the 
United States underwent several design changes in response to 
regulations requiring transition away from ODS refrigerant, ODS-
containing insulation foam, and increases in energy efficiency. Over 
that time, the average capacity of refrigerators sold in the United 
States also grew to accommodate consumer preferences. Even as 
refrigerators became larger, more energy efficient, and transitioned 
away from use of ODS, the average price fell in real dollars. Consumers 
not only benefitted from the lower initial purchase price, but the 
greater energy efficiency also reduced consumers' electricity costs. 
This example, and a similar trend seen in household unitary AC units, 
are discussed in more detail in the EPA report American Innovation and 
Manufacturing Act of 2019: Compliance and Consumer Cost Estimates, 
which can be found in the docket.
---------------------------------------------------------------------------

    \71\ Decision XXIX/10 Task Force Report on Issues Related to 
Energy Efficiency while Phasing Down Hydrofluorocarbons, Technical 
and Economic Assessment Panel, UNEP, May 2018. Available at: https://ozone.unep.org/sites/default/files/2019-04/TEAP_DecisionXXIX-10_Task_Force_EE_May2018.pdf.
---------------------------------------------------------------------------

    As described in the memo that summarizes the costs of the ODS 
phaseout,\72\ the most comprehensive analysis was in a 1999 peer-
reviewed report to Congress. In that report, we summarized the costs of 
the allowance allocation and reductions for CFCs, HCFCs, halons, and 
methyl chloroform to be $18 billion (7 percent discount rate) to $56 
billion (2 percent discount rate) in 1990 dollars.\73\ It was also 
noted that the transition to more energy efficient air conditioning 
using alternatives to HCFC-22 could lower this cost by $16.8 billion in 
1990 dollars.\74\ As opposed to this net cost, the Costs and 
Environmental Impacts TSD indicates that the transitions envisioned 
would yield a net savings through 2050 of $4.2 billion (7 percent 
discount rate) to $8 billion (3 percent discount rate) in compliance 
costs.
---------------------------------------------------------------------------

    \72\ Consumer Cost Impacts of the U.S. Ratification of the 
Kigali Amendment, JMS Consulting in partnership with INFORUM, 
November 2018. Available in the docket.
    \73\ Approximately $36 billion and $111 billion, respectively, 
in 2020 dollars.
    \74\ Approximately $33.3 billion in 2020 dollars.
---------------------------------------------------------------------------

    The primary goal of the ODS phaseout was to protect the ozone layer 
in accordance with title VI of the CAA and the Montreal Protocol, 
whereas the primary purpose of this proposed rule is to restrict the 
use of high-GWP HFCs, making the benefits difficult to compare. 
However, the phaseout of ODS also provided global warming benefits, as 
most ODS are also high-GWP greenhouse gases, as indicated by the 
exchange values for the ODS that are listed in subsection (e)(1)(D) of 
the AIM Act.\75\ Although such benefits have not been calculated 
specifically for the United States (though as one of the largest 
producers and consumers of ODS it is possible to make certain 
assumptions), the benefits can be significant given the high GWPs of 
the most common ODS.
---------------------------------------------------------------------------

    \75\ Velders, Guus JM, et al. ``The importance of the Montreal 
Protocol in protecting climate.'' Proceedings of the National 
Academy of Sciences 104.12 (2007): 4814-4819.
---------------------------------------------------------------------------

    Other sources of information the Agency has available for our 
consideration include industry commissioned studies (see for example 
JMS Consulting in partnership with INFORUM),\76\ journal articles, and 
reports provided to the Montreal Protocol from the SAP and the TEAP.
---------------------------------------------------------------------------

    \76\ Consumer Cost Impacts of the U.S. Ratification of the 
Kigali Amendment, JMS Consulting in partnership with INFORUM, 
November 2018. Available in the docket.
---------------------------------------------------------------------------

    EPA is soliciting comment on its interpretations of subsection 
(i)(4)(C) and its consideration of economic costs and environmental 
impacts, as compared to historical trends, in the context of this 
proposed rulemaking.
4. How is EPA considering the remaining phase-down period for regulated 
substances under the final rule issued under subsection (e)(3) of the 
AIM Act?
    Subsection (i)(4)(D) directs the Agency to factor in, to the extent 
practicable, the remaining phasedown period for regulated substances 
under the final rule issued under subsection (e)(3) of the AIM Act, if 
applicable. Accordingly, for this proposal, EPA notes that we are at 
the beginning stages of the overall HFC phasedown, having promulgated 
the Allocation Framework Rule (86 FR 55116, October 5, 2021) in 2021. 
In that rule, EPA established the allocation program under subsection 
(e) of the AIM Act, which is codified at 40 CFR part 84, subpart A. One 
of the key provisions under subsection (e) requires EPA to phase down 
the consumption and production of the statutorily listed HFCs on an 
exchange value-weighted basis according to the schedule listed in the 
table in subsection (e)(2)(C) of the AIM Act. The quantity of 
allowances available for allocation for each calendar year decreases 
over time according to the statutory phasedown schedule.
    EPA views this proposed action on restricting the use of HFCs in 
specific sectors and subsectors as supportive of the overall phasedown 
schedule. While this rule is being promulgated under a separate 
statutory provision under the AIM Act, the proposed restrictions on the 
use of HFCs in sectors and subsectors is expected to have a 
complementary effect on meeting the HFC phasedown schedule by 
facilitating necessary transitions to lower-GWP substitutes.

[[Page 76771]]

    Imposing restrictions on the use of HFCs, and considering the 
timing of those restrictions, is expected to play a role in reducing 
the demand for HFCs as well as support innovation. The production and 
consumption caps established by the AIM Act follow a stepwise reduction 
schedule, and EPA anticipates new substitutes and technologies will 
continue to emerge as the reductions in the production and consumption 
caps continue. If EPA is aware of information indicating that certain 
sectors and subsectors are well positioned to transition to new 
substitutes and technologies, then proposing restrictions on the use of 
HFCs in those sectors and subsectors would be consistent with 
subsection (i) and, if finalized, such restrictions could also support 
the overall production and consumption phasedown. Similarly, the Agency 
notes that title VI of the CAA provided for prohibitions on the sale or 
distribution in interstate commerce of certain products under section 
610 and for additional restrictions on use of certain ODS under section 
605(a). These restrictions were supportive of the ODS phaseout. For 
example, most of the nonessential products bans under section 610 were 
established at the very beginning of the ODS phaseout program--ahead of 
the overall CFC phaseout by a few years and ahead of the HCFC final 
phaseout by a few decades. By banning the use of certain ODS where 
substitutes were available, early transitions accrued additional 
environmental benefits and supported the overall economy-wide 
transition by removing uses of controlled substances that were no 
longer necessary. At the time, in discussing some of the statutory 
criteria to be considered in determining whether a product was 
nonessential, EPA noted that ``where substitutes are readily available, 
the use of controlled substances could be considered nonessential even 
in a product that is extremely important.'' (58 FR 4768, January 15, 
1993).
    EPA seeks comment on the relationship between the overall HFC 
phasedown and this action being proposed under subsection (i).

F. For which sectors and subsectors is EPA proposing to establish 
restrictions on the use of HFCs and blends containing HFCs?

1. How did EPA determine the degree of the proposed restrictions for 
each sector and subsector?
    AIM Act subsection (i)(1) grants EPA authority to restrict by rule 
the use of a regulated substance in the sector or subsector in which 
the regulated substance is used, and these restrictions may be 
exercised ``fully, partially, or on a graduated schedule.'' In 
determining the degree of the proposed restrictions--e.g., level, how 
partially or fully to restrict the use, and on what schedule--EPA 
looked to the factors in subsection (i)(4). Specifically, we interpret 
subsection (i)(4) as directing EPA to balance a number of factors in 
establishing the level of the contemplated use restriction, and we 
describe in this section the guiding principles and methodology EPA 
employed in our consideration of those factors in developing the 
restrictions proposed in this action. In short, EPA selected the degree 
of restriction for each sector or subsector by weighing the following 
considerations: maximizing environmental benefit while ensuring 
adequate availability of substitutes (as informed by the (i)(4)(B) 
subfactors) and with consideration of how this proposal comports with 
the overall economic costs and environmental benefits compared to 
historical trends. With respect to all of our information and analysis 
we strive to use best available data. We are also mindful of the HFC 
phasedown schedule in ensuring that the proposed use restrictions would 
not interfere with, and instead would support, that schedule.
    As noted in section VII.B of this preamble, EPA is proposing 
restrictions on the use of HFCs by, for the most part, setting GWP 
limits. In that section, EPA highlights the benefits of using GWP 
limits, including achieving environmental benefits, smoothing the 
transition from higher-GWP substances, supporting innovation, providing 
regulatory certainty, and harmonizing with approaches taken by other 
governments in establishing similar requirements. However, we note that 
if EPA were to finalize use restrictions under a substance-specific 
approach, the same principles and methodology employed here would apply 
equally, as the GWP limits for each sector and subsector can be 
translated to restrict specific regulated substances and blends used in 
the named sectors and subsectors.
    Because this proposed rulemaking was requested by numerous 
stakeholders, representing a broad range of interests (regulated 
industry, environmental and public health organizations, and state and 
local governments), EPA considered the requested use restrictions in 
the petitions--either in the form of GWP limits or specific substances 
to be restricted--as a starting point for the level of our proposed 
restrictions. In some cases, petitioners provided information about 
substitutes that are already in use or would soon be ready to be in use 
in the affected sectors and subsectors and attested to the 
achievability (technologically, regulatory, economic, and otherwise) of 
certain substitutes. The substitutes discussed in the petitions and 
supporting information typically had lower GWPs, and thus reduced 
adverse impacts on climate, compared to the regulated substances for 
which a use restriction was requested. Many of the petitioners are the 
entities (or trade associations representing those entities) developing 
substitutes or manufacturing products using substitutes. As such, they 
are in many instances well-positioned and incentivized to gather and 
have access to information regarding many of the factors in subsection 
(i)(4), including the best available data on many if not most of the 
subfactors in subsection (i)(4)(B).
    In addition, the impetus for this proposed rulemaking, in part, is 
to address the granted petitions requesting restrictions on the use of 
HFCs in certain sectors and subsectors. Therefore, the requested 
restrictions, including specific substances or GWP limits and the 
available substitutes, are a natural starting point for the Agency's 
inquiry.
    Subsection (i)(4) requires that EPA take into account, to the 
extent practicable, the factors described in section VII.E of this 
preamble. In following this statutory directive, EPA is considering the 
(i)(4) factors collectively, with no single (i)(4) factor (or 
subfactor) driving the proposed restrictions for any sector or 
subsector. Collective consideration of the (i)(4) factors is consistent 
with the statutory text, which directs EPA to account for all the 
factors, to the extent practicable, in carrying out a rulemaking under 
subsection (i), and which does not state that one factor should carry 
more weight than the others. Further, accounting for the (i)(4) factors 
together enables EPA to take a holistic approach in facilitating 
transition to substitute technology, one that considers the 
availability of substitutes, overall economic costs and environmental 
impacts, as compared to historical trends, and the HFC phasedown 
schedule codified by the Allocation Framework Rule.
    To that end, our approach to selecting the level and timing of each 
proposed use restriction for the sectors and subsectors in this 
proposed action was to balance the factors provided in (i)(4): again, 
to maximize environmental benefit while ensuring adequate availability 
of substitutes (as informed by the (i)(4)(B) subfactors) and with

[[Page 76772]]

consideration of how this proposal comports with the overall economic 
costs and environmental benefits compared to historical trends. With 
respect to all of our information and analysis we strive to use best 
available data. We are also mindful of the HFC phasedown schedule in 
ensuring that the proposed use restrictions would not interfere with, 
and instead would support, that schedule. We are cognizant that the 
phasedown schedule could carry more significance as a factor in future 
rulemakings under subsection (i) when EPA is further along in the HFC 
phasedown.
    The direction in subsection (i)(4)(C) to factor in overall economic 
costs and environmental impacts as compared to historical trends does 
not have a clear meaning in the context of selecting the degree of a 
restriction for a given sector or subsector. The provision's focus on 
an ``overall'' comparison makes direct application of this factor in 
setting a level of restriction for a specific sector or subsector less 
practicable. However, we think subsection (i)(4)(C)'s focus on 
``economic costs'' and ``environmental impacts'' still provides 
direction to the Agency that cost and environmental considerations are 
relevant factors for EPA to consider in setting the level of a use 
restriction under subsection (i), and we address how EPA did so in the 
following paragraphs.
    For this proposal, in factoring in environmental impacts, our aim 
was to propose GWP limits for each sector or subsector at a level that 
was as low as we thought supportable while considering the other 
primary considerations under subsection (i), specifically, availability 
of substitutes and cost. We think it is reasonable to prioritize 
maximizing the climate change benefits of restricting the regulated 
substances that are the focus of this proposed rule, given that these 
impacts are and have been one of the central concerns with the use of 
HFCs. We also note that much of the information relied upon in our 
analysis of available substitutes comes from EPA's SNAP program, which 
evaluates and identifies as ``acceptable'' those substances that reduce 
overall risk to human health and the environment, as well as the TEAP 
reports which speak to human health and environmental considerations, 
the granted petitions, and information from state and foreign 
government regulations. Therefore, in selecting the proposed levels of 
restrictions for each sector and subsector, we attempted to set the GWP 
limit at the lowest level that will provide a sufficient range of 
substitutes for applications within a subsector. In addition, EPA is 
proposing four GWP limits across all the sectors and subsectors--i.e., 
0 GWP, 150 GWP, 300 GWP, and 700 GWP. This approach has a number of 
advantages over a methodology that tightly tailors the GWP limit for 
each subsector to the specific GWPs of the currently identified 
available substitutes for a particular sector or subsector. 
Establishing limits at these regular intervals (e.g., applying a 300 
GWP limit for multiple subsectors, rather than GWP limits of 237, 258, 
and 290 based on the particular substitutes currently available in 
specific subsectors) avoids minor discrepancies in calculating GWP, 
promotes development of new variations on substitutes that are still 
within the permissible range, and enhances ease of implementation of 
the restrictions for regulated parties, consumers, and enforcement.
    As noted in section VII.E.2 of this preamble, EPA developed a non-
exhaustive list of substitutes that can be used in lieu of the 
regulated substances that EPA is proposing to restrict for each sector 
and subsector subject to this proposal. We also note that, relevant to 
the direction in (i)(4)(C)'s direction to factor in, to the extent 
practicable, overall environmental impacts as compared to historical 
trends, we anticipate that the proposed use restrictions would achieve 
an average annual additional \77\ emission reduction of 5 to 54 
MMTCO2e, and an average annual additional consumption 
reduction of 28 to 49 MMTCO2e, from 2025 through 2050. See 
Costs and Environmental Impacts TSD.
---------------------------------------------------------------------------

    \77\ These reductions would be in addition to the consumption 
reductions from the Allocation Framework Rules.
---------------------------------------------------------------------------

    To ensure adequate availability of substitutes, we looked at a 
range of information relevant to the subfactors provided in subsection 
(i)(4)(B) from a variety of sources (see section VII.E.1 of this 
preamble). In general, where we were able to identify multiple 
substitutes that could be used in a sector or subsector (taking into 
consideration the various (i)(4)(B) subfactors to the extent 
practicable), that weighed in favor of prohibiting the use of certain 
HFCs and blends that use HFCs that had GWPs above the level of the 
available substitutes in a sector or subsector. In the following 
sections, we provide detailed information regarding the availability of 
substitutes for each sector and subsector.
    Our methodology for setting the levels of the proposed use 
restrictions also factored in considerations of cost, both in 
identifying availability of substitutes and in assessing overall costs 
of the levels of the proposed restrictions. First, some of the 
subfactors in subsection (i)(4)(B) for the Agency to take into account 
when determining ``availability'' are explicitly or implicitly related 
to cost (e.g., consumer costs). Subfactors that explicitly relate to 
cost include commercial demands (there would be no demand for a 
substitute that caused a product to be so costly as to be 
unmarketable), consumer costs, affordability for residential and small 
business consumers, and contractor training costs. Other subfactors 
that are not explicitly related to cost contain implicit considerations 
of cost. For example, a company generally would not invest in 
demonstrating that use of a substitute is technologically achievable in 
a sector or subsector if the use of that substitute was so cost 
prohibitive that it would never actually be adopted. The Agency 
factored in these cost subfactors to the extent practicable when 
considering availability of substitutes.
    Second, subsection (i)(4)(C) also specifically directs EPA to 
factor in, to the extent practicable, overall economic costs as 
compared to historical trends, and as discussed above, the Agency has 
considered numerous sources of information as we developed this 
proposal. With respect to the proposed restrictions in this action, to 
inform our consideration of overall economic costs as compared to 
historical trends, we propose to look to our findings in the Costs and 
Environmental Impacts TSD summarizing the economic cost of the proposed 
restrictions. As discussed in that TSD, we anticipate that the 
incremental economic cost of the proposed restrictions would result in 
a savings to the regulated industry, i.e., that complying with the 
proposed use restrictions and transitioning from higher-GWP regulated 
substances to lower GWP substitutes would, on the whole, reduce costs 
for industry. For additional information, see the Costs and 
Environmental Impacts TSD provided in the docket.
    We take comment on these guiding principles and methodology to 
establishing use restrictions under subsection (i) and on our 
application of this methodology in the proposed restrictions for each 
sector and subsector in this action.
2. Summary of Proposed Restrictions on the Use of HFCs
    Table 4 lists the sectors and subsectors for which EPA is proposing 
to establish restrictions, the type of restriction, and the proposed 
compliance date. For each sector and

[[Page 76773]]

subsector, sections VII.F.3 through VII.F.5 of this preamble provide a 
description of the sector or subsector, a summary of information from 
granted petitions, and discussion on EPA's proposed use restriction.

                       Table 4-Proposed HFC Restrictions and Compliance Dates by Subsector
----------------------------------------------------------------------------------------------------------------
                                               Proposed GWP limit or
         Sectors and subsectors                 prohibited substance                  Compliance date
----------------------------------------------------------------------------------------------------------------
                                 Refrigeration, Air Conditioning, and Heat Pump
----------------------------------------------------------------------------------------------------------------
Industrial process refrigeration systems  150............................  January 1, 2025.
 with refrigerant charge capacities of
 200 pounds or greater.
Industrial process refrigeration systems  300............................  January 1, 2025.
 with refrigerant charge capacities less
 than 200 pounds.
Industrial process refrigeration, high    300............................  January 1, 2025.
 temperature side of cascade systems.
Retail food refrigeration--stand-alone    150............................  January 1, 2025.
 units.
Retail food refrigeration--refrigerated   150............................  January 1, 2025.
 food processing and dispensing
 equipment.
Retail food refrigeration--supermarket    150............................  January 1, 2025.
 systems with refrigerant charge
 capacities of 200 pounds or greater.
Retail food refrigeration--supermarket    300............................  January 1, 2025.
 systems with refrigerant charge
 capacities less than 200 pounds charge.
Retail food refrigeration--supermarket    300............................  January 1, 2025.
 systems, high temperature side of
 cascade system.
Retail food refrigeration--remote         150............................  January 1, 2025.
 condensing units with refrigerant
 charge capacities of 200 pounds or
 greater.
Retail food refrigeration--remote         300............................  January 1, 2025.
 condensing units with refrigerant
 charge capacities less than 200 pounds.
Vending machines........................  150............................  January 1, 2025.
Cold storage warehouse systems with       150............................  January 1, 2025.
 refrigerant charge capacities of 200
 pounds or greater.
Cold storage warehouse systems with       300............................  January 1, 2025.
 refrigerant charge capacities less than
 200 pounds.
Cold storage warehouse--high temperature  300............................  January 1, 2025.
 side of cascade system.
Ice rinks...............................  150............................  January 1, 2025.
Automatic commercial ice machines--self-  150............................  January 1, 2025.
 contained with refrigerant charge
 capacities of 500 grams or lower.
Automatic commercial ice machines--self-  R-404A, R-507, R-507A, R-428A,   January 1, 2025.
 contained with refrigerant charge         R-422C, R-434A, R-421B, R-
 capacities more than 500 grams.           408A, R-422A, R-407B, R-402A,
                                           R-422D, R-421A, R-125/R-290/R-
                                           134a/R-600a (55/1/42.5/1.5), R-
                                           422B, R-424A, R-402B, GHG-X5,
                                           R-417A, R-438A, R-410B, R-
                                           407A, R-410A, R-442A, R-417C,
                                           R-407F, R-437A, R-407C, RS-24
                                           (2004 formulation), HFC-134a.
Automatic commercial ice machines--       R-404A, R-507, R-507A, R-428A,   January 1, 2025.
 remote.                                   R-422C, R-434A, R-421B, R-
                                           408A, R-422A, R-407B, R-402A,
                                           R-422D, R-421A, R-125/R-290/R-
                                           134a/R-600a (55/1/42.5/1.5), R-
                                           422B, R-424A, R-402B, GHG-X5,
                                           R-417A, R-438A, R-410B.
Transport refrigeration--intermodal       700............................  January 1, 2025.
 containers.
Transport refrigeration--road systems...  R-404A, R-507, R-507A, R-428A,   January 1, 2025.
                                           R-422C, R-434A, R-421B, R-
                                           408A, R-422A, R-407B, R-402A,
                                           R-422D, R-421A, R-125/R-290/R-
                                           134a/R-600a (55/1/42.5/1.5), R-
                                           422B, R-424A, R-402B, GHG-X5,
                                           R-417A, R-438A, R-410B.
Transport refrigeration--marine systems.  R-404A, R-507, R-507A, R-428A,   January 1, 2025.
                                           R-422C, R-434A, R-421B, R-
                                           408A, R-422A, R-407B, R-402A,
                                           R-422D, R-421A, R-125/R-290/R-
                                           134a/R-600a (55/1/42.5/1.5), R-
                                           422B, R-424A, R-402B, GHG-X5,
                                           R-417A, R-438A, R-410B.
Residential refrigeration systems.......  150............................  January 1, 2025.
Chillers--industrial process              700............................  January 1, 2025.
 refrigeration.
Chillers--comfort cooling...............  700............................  January 1, 2025.
Residential and light commercial air      700............................  January 1, 2025.
 conditioning and heat pump systems.
Residential and light commercial air      700............................  January 1, 2026.
 conditioning--variable refrigerant flow
 systems.
Residential dehumidifiers...............  700............................  January 1, 2025.
Motor vehicle air conditioning--light-    150............................  Model year 2025.
 duty Passenger Vehicles.
Motor vehicle air conditioning--medium-   150............................  Model year 2026.
 duty passenger vehicles.
Motor vehicle air conditioning--heavy-    150............................  Model year 2026.
 duty pick-up trucks.
Motor vehicle air conditioning--Complete  150............................  Model year 2026.
 heavy-duty vans.

[[Page 76774]]

 
Motor vehicle air conditioning--Nonroad   150............................  Model year 2026.
 vehicles.
----------------------------------------------------------------------------------------------------------------
                                                  Foam blowing
----------------------------------------------------------------------------------------------------------------
Polystyrene--extruded boardstock and      150............................  January 1, 2025.
 billet.
Rigid polyurethane and polyisocyanurate   0..............................  January 1, 2025.
 laminated boardstock.
Rigid polyurethane--slabstock and other.  150............................  January 1, 2025.
Rigid polyurethane--appliance foam......  150............................  January 1, 2025.
Rigid polyurethane--commercial            150............................  January 1, 2025.
 refrigeration and sandwich panels.
Rigid polyurethane--marine flotation      150............................  January 1, 2025.
 foam*.
Rigid polyurethane--low pressure, two-    150............................  January 1, 2025.
 component spray foam.
Rigid polyurethane--high-pressure two-    150............................  January 1, 2025.
 component spray foam.
Rigid polyurethane--one-component foam    150............................  January 1, 2025.
 sealants.
Flexible polyurethane...................  0..............................  January 1, 2025.
Integral skin polyurethane..............  0..............................  January 1, 2025.
Polystyrene--extruded sheet.............  0..............................  January 1, 2025.
Polyolefin..............................  0..............................  January 1, 2025.
Phenolic insulation board and bunstock..  150............................  January 1, 2025.
----------------------------------------------------------------------------------------------------------------
                                                    Aerosols
----------------------------------------------------------------------------------------------------------------
Aerosol products *......................  150............................  January 1, 2025.
----------------------------------------------------------------------------------------------------------------
 * As described in greater detail in section VII.C of this preamble, EPA is proposing an exemption for certain
  applications as long as they are receiving application-specific allowances under subsection (e)(4)(B) of the
  Act, including: as a propellant in metered dose inhalers; in the manufacture of defense sprays; and in the
  manufacture of structural composite preformed polyurethane foam for marine use and trailer use.

3. Refrigeration, Air Conditioning, and Heat Pump
    Subsectors in the RACHP sector typically use 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. Based 
on EPA's consideration of the factors listed in subsection (i)(4) of 
the AIM Act, as discussed in section VII.E of this preamble, EPA is 
proposing the restrictions on the use of HFCs in the following 
subsectors:
a. Industrial Process Refrigeration (IPR)
Background on Industrial Process Refrigeration
    ``Industrial process refrigeration'' systems are used to cool 
process streams at a specific location in manufacturing and other forms 
of industrial processes and applications used in, for example, the 
chemical production, pharmaceutical, petrochemical, and manufacturing 
industries. This also includes appliances used directly in the 
generation of electricity and for large scale cooling of heat sources 
such as data centers and data servers. Specialized refrigerated 
laboratory equipment, such as that used in the pharmaceutical industry, 
may fall under this subsector if it operates at temperatures above -62 
[deg]C (-80 [deg]F)--that is, it is not very low temperature 
refrigeration equipment.
    IPR systems are complex, customized systems that are directly 
linked to the industrial process, meaning the refrigerant leaving the 
condenser and metering device is delivered directly to the heat source 
before returning to the compressor. Where one appliance is used for 
both IPR and other applications, it is considered an IPR system if 50 
percent or more of its operating capacity is used for IPR. Such IPR 
appliances could be cooling a room or building in which the industrial 
process is located, for instance if 50 percent or more of its capacity 
is to cool manufacturing or other processing lines within the room or 
building. Cooling or IPR that involves using a chiller, i.e., to 
circulate a secondary fluid to the point at which heat is removed from 
the process, or to cool a room or building as explained in this 
section, is regulated as a chiller (see section VII.F.3.h of this 
preamble below). IPR not using a chiller is regulated as IPR equipment 
and is discussed here.
    Many food products require refrigeration during the production 
process. EPA is considering the application of refrigerating equipment 
used during the production of food and beverages to fall under 
``industrial process refrigeration'' except where using a chiller. In 
other words, if the food production process requires cooling and that 
cooling is done directly by a refrigerant, either at the point where 
cooling is required or to cool a room or building in which the cooling 
is required, for purposes of this proposed rule we consider the 
equipment to fall under the IPR subsector; whereas if a chiller is used 
to cool a secondary fluid (e.g., water) which is used to provide the 
required cooling, we consider the appliance as part of the chiller 
subsector. The IPR subsector would include all equipment and operations 
that use a refrigerant to make and prepare food that is not immediately 
available for sale (or supply, if the product is not ``sold'') to the 
ultimate consumer and would require shipping or delivering it, possibly 
through intermediate points, to the point where such sale would occur. 
The IPR subsector could include facilities where food is processed and 
packaged by the food producer. An example could be a meat processor 
that prepares and packages individual cuts of meat within a single 
facility or building while maintaining the required temperatures within 
that facility or building. Although such facilities may be designed in 
a fashion similar to a cold storage warehouse, the fact that items are 
being processed by the food producer indicates that the application 
falls in the IPR subsector. However, if a

[[Page 76775]]

food producer operates a refrigerated storage area solely for the 
holding of already packaged products, and possibly packing such 
products in larger containers or bundles for shipment, that application 
would fall under the cold storage warehouse subsector.
    Another example of an IPR system is a ``blast cooler'' or ``blast 
freezer.'' In this context ``blast cooler'' or ``blast freezer'' refers 
to a type of equipment in which cold air is supplied and circulated 
rapidly to a food product, generally to quickly cool or freeze a 
product before damage or spoilage can occur. This is the same 
description as the Agency has previously used for this equipment. (See 
80 FR 42901, July 20, 2015). Such equipment might be used as part of a 
food production line in an industrial setting. They also can be placed 
separately at public facilities including hospitals, schools, 
restaurants, and supermarkets. These public facilities might use the 
blast chiller on products that they will store for later use after they 
receive products from a vendor or that they cook or prepare as part of 
their operations. Such units might also be placed near entranceways to 
cold storage warehouses, for instance to receive food shipped 
refrigerated at one temperature and bring it down to a lower 
temperature for storage.
    IPR systems typically have large refrigerant charge to satisfy the 
significant cooling demands throughout the facility. Historically, 
facilities have commonly used R-717, hydrocarbons, CFCs, HCFCs and HFCs 
including but not limited to R-12, R-22, R-404A, R-507, and R-134a.
Information Contained in the Granted Petitions Concerning the Use of 
HFCs for Industrial Process Refrigeration
    EPA granted six petitions that requested restrictions on the use of 
HFCs and blends containing HFCs for IPR equipment excluding chillers, 
which were submitted by EIA, CARB, IIAR (two petitions), and AHRI (two 
petitions). All petitioners separated chillers used for IPR into a 
different category.
    EIA's and CARB's petitions requested that EPA establish a GWP limit 
of 150 for HFCs used in new IPR equipment by January 1, 2025. CARB 
requested that the GWP limit apply to IPR equipment containing more 
than 50 pounds of refrigerant.
    IIAR submitted two petitions regarding new IPR equipment. One of 
IIAR's petitions requested that EPA establish a GWP limit of 150 for 
HFCs used in new IPR equipment with refrigerant charge capacities 
greater than 50 pounds by January 1, 2022. In a subsequent petition, 
IIAR requested a GWP limit of 150 for new IPR equipment with 
refrigerant charge capacities greater than 200 pounds, by January 1, 
2026. In this second petition, IIAR also requested that EPA establishes 
a GWP limit of 300 for new IPR equipment with refrigerant charge 
capacities less than 200 pounds and for the high temperature side of 
cascade systems by January 1, 2026.
    AHRI also submitted two petitions regarding IPR equipment. One of 
AHRI's petitions requested that EPA establish a GWP limit of 300 for 
HFCs used in new IPR equipment by January 1, 2026,\78\ but requested 
that medical, scientific, and research applications be exempted. 
Another AHRI petition requested that EPA establish a GWP limit of 150 
for new equipment in IPR with refrigerant charge capacities greater 
than 200 pounds by January 1, 2026. For new IPR equipment with 
refrigerant charge capacities less than 200 pounds and for the high 
temperature side of cascade systems, AHRI requested a GWP limit of 300 
by January 1, 2026.
---------------------------------------------------------------------------

    \78\ The AHRI petition submitted on April 13, 2021, available at 
www.regulations.gov in Docket ID No, EPA-HQ-OAR-2021-0289, requested 
a 1,500 GWP limit with a compliance date of January 1, 2024, for new 
IPR equipment. The AHRI petition received by EPA on August 19, 2021, 
requested a 300 GWP limit with a compliance date of January 1, 2026. 
As EPA explains in section VII.D.2 of this preamble, EPA is treating 
AHRI's August 19, 2021, petition as an addendum to their April 13, 
2021, petition.
---------------------------------------------------------------------------

    Additional information, including the relevant petitions, is 
available in the docket.
    What restrictions on the use of HFCs is EPA proposing for 
industrial process refrigeration?
    EPA is proposing to prohibit the use of HFCs and blends containing 
HFCs with a GWP of 150 or greater in IPR systems with refrigerant 
charge capacities greater than 200 pounds beginning January 1, 2025. 
For IPR systems with refrigerant charge capacities less than 200 pounds 
and for the high temperature side of cascade systems, EPA is proposing 
to prohibit the use of HFCs and blends containing HFCs with a GWP of 
300 or greater, beginning January 1, 2025. These proposed GWP limits 
would apply to new equipment used in IPR other than chillers used for 
IPR. Chillers used for IPR are discussed in section VII.F.3.h of this 
preamble.
    A cascade system is a design option which consists of two 
independent refrigeration systems that share a common cascade heat 
exchanger. They are often employed in applications when the required 
temperature is very low. Each system of a cascade system uses a 
different refrigerant that is most suitable for the given temperature 
range. High temperature systems, or the ``high temperature side,'' have 
typically used HFCs as a refrigerant; however, it is technologically 
achievable and has become more common to use R-717 in the high 
temperature side. For low temperature systems, or the ``low temperature 
side,'' low boiling refrigerants such as R-744 and R-508B can be used. 
Considerations for the choice of refrigerant on the high or low 
temperature side of the cascade systems are influenced by many factors 
including, but not limited to, a refrigerant's toxicity and 
flammability, its temperature glide, and its suitability to lower 
temperature applications. In our consideration of safety and building 
codes under subsection (i)(4)(B), EPA understands that use of flammable 
or toxic refrigerants, such as R-717, on the high temperature side of a 
cascade may be limited in certain circumstances (e.g., in areas that 
are heavily populated based on building codes and/or standards). 
Therefore, EPA is proposing a higher GWP limit of 300 for HFCs used in 
the high temperature side of cascade systems to expand the refrigerant 
options that can comply with local building codes and industry safety 
standards. EPA is proposing a GWP limit of 150 for HFCs used in the low 
temperature side of cascade systems based on its consideration of the 
(i)(4) factors, noting in particular that there are a number of 
substitutes available that can meet this proposed limit for this part 
of the cascade system.
    Similarly, EPA is proposing to establish two different GWP limits 
for equipment used in IPR, based on the refrigerant charge capacity of 
the system. This distinction is consistent with information provided by 
certain petitioners and EPA's understanding of technical challenges 
that these smaller capacity systems currently face. Specifically, for 
smaller-footprint applications, the use of A2Ls (lower flammability 
refrigerants) is limited due to safety standards ANSI/ASHRAE Standard 
15-2019 and UL 60335-2-89.79 80 The two standards, which are 
used to update building codes, set charge limits to under 200 pounds 
for

[[Page 76776]]

applications in smaller floor areas.\81\ For example, if an application 
subject to these standards required 100 pounds charge in a 1,000 square 
foot area, A2L refrigerants would not be permitted. The proposed higher 
GWP limit of 300 GWP for smaller refrigerant charge systems would 
enable the use of a wider set of available substitutes to manage safety 
(in particular, flammability and toxicity), efficiency, capacity, 
temperature glide, and other performance factors. Systems with larger 
refrigerant charge capacities i.e. greater than 200 pounds charge) are 
expected to be less space-constrained, so system designers can 
accommodate a narrower set of lower-GWP substitutes below 150 GWP, as 
demonstrated by the widespread use and commercial demands of lower-GWP 
substitutes in these systems. Therefore, EPA is proposing a lower GWP 
limit of 150 for HFCs used in new equipment with refrigerant charge 
greater than 200 pounds.
---------------------------------------------------------------------------

    \79\ ASHRAE. (2019). ANSI/ASHRAE Standard 15-2019: Safety 
Standard for Refrigeration Systems.
    \80\ UL Standard. (2021). Household and Similar Electrical 
Appliances--Safety--Part 2-89: Particular Requirements for 
Commercial Refrigerating Appliances and Ice-Makers with an 
Incorporated or Remote Refrigerant Unit or Motor-Compressor 
(Standard 60335-2-89, Edition 2).
    \81\ The specific charge size limit depends on flammability 
characteristics of each A2L refrigerant, the volume of the room 
housing the system, the system design, and other parameters.
---------------------------------------------------------------------------

    For its consideration of availability of substitutes under 
subsection (i)(4)(B), EPA identified several substitutes \82\ which are 
available in place of the higher-GWP substances that EPA is proposing 
to prohibit. These available substitutes include HCFO-1224yd(Z) (GWP 
1), R-717 (GWP 0), R-1270 (GWP 2), R-290 (GWP 3), R-600 (GWP 4), HCFO-
1233zd(E) (GWP 3.7), R-471A (GWP 139), R-454C (GWP 146), and, for 
smaller capacity systems, and R-454A (GWP 237). EPA is aware of a 
statement by one stakeholder that R-717 and hydrocarbons (R-600, R-
1270, R-290) are 90-95 percent of the market share for IPR systems in 
2019, indicating the technological achievability and commercial demands 
of systems using available substitutes.\83\
---------------------------------------------------------------------------

    \82\ EPA notes for all substitutes identified in section VII.F 
of this preamble, not every substitute listed is necessarily 
available across all U.S. markets. For example, in some cases, 
substitutes may be technologically and economically viable and may 
be in use in international markets but may be unavailable in 
specific U.S. market for other reasons such as building code 
restrictions. The lists of ``available'' substitutes therefore 
includes some substances which may only be ``potentially available'' 
in some areas. EPA also notes that not all of the identified 
substitutes are listed as acceptable under the SNAP program. See 
section VII.E.2 of this preamble for a discussion on availability of 
substitutes.
    \83\ Air-Conditioning, Heating, & Refrigeration Institute 
(AHRI). 2019. AHRI Letter Responding to CARB's Request for Input and 
Clarifications Following the August 6, 2019, Public Meeting for 
Industrial Process Refrigeration and Transport Refrigeration 
Equipment. Available in the docket.
---------------------------------------------------------------------------

    On which topics is EPA specifically requesting comment?
    EPA is requesting comment on proposing to establish a GWP limit of 
150 or greater for HFCs and blends containing HFCs used in IPR systems 
with refrigerant charge capacities greater than 200 pounds, and a GWP 
limit of 300 or greater for HFCs and blends containing HFCs used in IPR 
systems with refrigerant charge capacities less than 200 pounds and for 
the high temperature side of cascade systems. EPA is considering 
whether a GWP limit lower than the proposed limit of 300 would be 
appropriate for systems with smaller refrigerant charge capacities 
(i.e., less than 200 pounds). Accordingly, EPA seeks comment on other 
technical and design challenges that exist for such systems to use 
refrigerants with GWPs less than 150, and strategies that can be 
employed to mitigate these challenges.
b. Retail Food Refrigeration and Vending Machines
Background on Retail Food Refrigeration and Vending Machines
    Retail food refrigeration is characterized by storing and 
displaying, generally for sale, food and beverages at different 
temperatures for different products (e.g., chilled and frozen food). 
The designs and refrigerating capacities of such equipment vary widely.
    Vending machines are a type of self-contained system used to sell a 
variety of products, including cold drinks in cans or bottles, ice 
cream, milk, cold drinks in cups, and perishable food items (e.g., 
fruit, prepared sandwiches). Hot beverages may also be provided via a 
heat-pump or through recycled waste heat from the refrigeration cycle, 
particularly for dual hot/cold beverage vending machines. Vending 
machines are a subset of commercial refrigeration that EPA is 
considering as a separate subsector due to differences in where such 
equipment is placed and the additional mechanical and electronic 
components required to accept payment, provide the selected product, 
and prevent theft or damage from vandalism.
    Retail food refrigeration is composed of four main categories of 
equipment, and EPA is treating these categories as separate subsectors 
under the technology transitions program: stand-alone equipment; 
refrigerated food processing and dispensing equipment; remote 
condensing units; and supermarket systems, the latter often in designs 
referred to as multiplex or centralized refrigeration systems. Stand-
alone units in retail food refrigeration (hereafter, ``stand-alone 
units'') consist of refrigerators, freezers, and reach-in coolers 
(either open or with doors) where all refrigeration components are 
integrated and, for the smallest types, the refrigeration circuit is 
entirely brazed or welded. These systems are charged with refrigerant 
at the factory and typically require only an electricity supply to 
begin operation. Under the technology transitions program, EPA intends 
to distinguish medium-temperature stand-alone units from low-
temperature stand-alone units. Medium-temperature stand-alone units 
maintain a temperature above 32 [deg]F (0 [deg]C). Most are typically 
designed to maintain products at temperatures roughly between 32 [deg]F 
(0 [deg]C) and 41 [deg]F (5 [deg]C). Low-temperature stand-alone units 
designed to maintain products at temperatures roughly between -40 
[deg]F (-40 [deg]C) and 32 [deg]F (0 [deg]C) (i.e., freezers). Today, 
HFC-134a is the most commonly used refrigerant in self-contained 
systems, with R-404A also commonly used in low temperature applications 
(e.g., freezers, ice machines) and some high-capacity systems.
    With respect to the second category of equipment to be included 
under retail food refrigeration, refrigerated food processing and 
dispensing equipment, the Agency considers equipment designed to make 
or process cold food and beverages that are dispensed via a nozzle, 
including soft-serve ice cream machines, ``slushy'' iced beverage 
dispensers, and soft-drink dispensers, to be a separate subsector from 
stand-alone units. Refrigerated food processing and dispensing 
equipment dispenses and often processes a variety of food and beverage 
products. For instance, some such equipment processes the product by 
combining ingredients, mixing, and preparing the food at the proper 
temperature, while others function mainly as a holding tank to deliver 
the product at the desired temperature or to deliver chilled 
ingredients for the processing, mixing, and preparation. Some may use a 
refrigerant in a heat pump or utilize waste heat from the cooling 
system to provide hot beverages. Some may also provide heating 
functions to melt or dislodge ice or for sanitation purposes. This 
equipment can be self-contained or can be connected via piping to a 
dedicated condensing unit located elsewhere. Equipment within this 
subsector category include but are not limited to equipment used to 
make: chilled and frozen beverages (carbonated and uncarbonated, 
alcoholic and nonalcoholic); frozen custards, gelato, ice cream, 
Italian ice, sorbets and yogurts; milkshakes, ``slushies'' and 
smoothies; and whipped cream.

[[Page 76777]]

Historically, refrigerated food processing and dispensing equipment 
relied on ODS refrigerants, including CFC-12 and HCFC-22. In response 
to the phaseout of ODS under the Clean Air Act and the Montreal 
Protocol, refrigerated food processing and dispensing equipment adopted 
HFC-134a and R-404A in medium- and low-temperature applications, 
respectively. Both HFC-134a and R-404A are potent GHGs with GWPs of 
1,430 and 3,920, respectively.
    With respect to the third category of equipment to be included 
under retail food refrigeration, remote condensing units exhibit 
refrigerating capacities ranging typically from 1 kW to 20 kW (0.3 to 
5.7 refrigeration tons). They are composed of one (and sometimes two) 
compressor(s), one condenser, and one receiver assembled into a single 
unit, which is normally located external to the sales area. This 
equipment is connected to one or more nearby evaporator(s) used to cool 
food and beverages stored in display cases and/or walk-in storage 
rooms. Remote condensing units are commonly installed in convenience 
stores and specialty shops such as bakeries and butcher shops. Remote 
condensing units historically used the ODS HCFC-22. While many HCFC-22 
systems remain in use today, newly manufactured systems primarily use 
R-404A or HFC-134a. Other blends that use HFCs--including R-407A, R-
407C, R-407F, and R-507A--are also in use.
    With respect to the fourth category of equipment to be included 
under retail food refrigeration, typical supermarket systems are known 
as multiplex or centralized systems. They operate with racks of 
compressors installed in a machinery room; different compressors turn 
on to match the refrigeration load necessary to maintain temperatures. 
Two main design classifications are used: direct and indirect systems. 
In a direct system, the refrigerant circulates from the machinery room 
to the sales area, where it evaporates in display-case heat exchangers, 
and then returns in vapor phase to the suction headers of the 
compressor racks. The supermarket walk-in cold rooms are often 
integrated into the system and cooled similarly, but another option is 
to provide a dedicated condensing unit for a given storage room.
    Indirect supermarket designs include secondary loop systems and 
cascade refrigeration.\84\ Indirect systems use a chiller or other 
refrigeration system to cool a secondary fluid that is then circulated 
throughout the store to the cases. Compact chiller versions of an 
indirect system rely on a lineup of 10- 20 units, each using small 
charge sizes. As the refrigeration load changes, more or fewer of the 
chillers are active. Compact chillers are used in a secondary loop 
system whereby the chillers cool a secondary fluid that is then 
circulated throughout the store to the display cases. Each compact 
chiller is an independent unit with its own refrigerant charge, 
reducing the potential volume of refrigerant that could be released 
from leaks or catastrophic failures. Despite the term ``chiller'' used 
in the above examples, these systems would be regulated as supermarket 
systems under this proposed rule.
---------------------------------------------------------------------------

    \84\ See section VII.F.3.a of this preamble for a description of 
cascade systems.
---------------------------------------------------------------------------

    Another type of supermarket design, often referred to as a 
distributed refrigeration system, uses an array of separate compressor 
racks located near the display cases rather than having a central 
compressor rack system. Each of these smaller racks handles a portion 
of the supermarket load, with 5-10 such systems in a store.
    Supermarket rack systems historically used CFC-12, R-502, HCFC-22, 
and other blends containing HCFCs in a centralized design. While many 
of these systems remain in use, some have been retrofitted to replace 
the ODS refrigerant with a blend that uses an HFC (e.g., R-404A, R-
422A, R-422B, R-422D, R-427A, R-438A, and R-507A). For newly 
manufactured systems, refrigerant blends containing HFCs (e.g., R-404A, 
R-507A, R-407A, R-407C, and R-407F) dominate the market.
Information Contained in the Granted Petitions Concerning the Use of 
HFCs for Retail Food Refrigeration and Vending Machines
    EPA granted seven petitions that requested restrictions on the use 
of HFCs for retail food refrigeration and/or vending machines. These 
petitions were submitted by NRDC, CARB, IIAR (two petitions), EIA, and 
AHRI (two petitions).
    NRDC and CARB individually petitioned EPA to restrict specific 
substances for new equipment used in the following subsectors (specific 
substances are in parenthesis):

 ``Stand-alone low-temperature units'' (HFC-227ea, KDD6, R-125/
290/134a/600a (55.0/1.0/42.5/1.5), R-404A, R-407A, R-407B, R-407C, R-
407F, R-410A, R-410B, R-417A, R-421A, R-421B, R-422A, R-422B, R-422C, 
R-422D, R-424A, R-428A, R-434A, R-437A, R-438A, R-507A, RS-44 (2003 
formulation))
 ``Stand-alone medium-temperature units with a compressor 
capacity equal to or greater than 2,200 btu/hour and stand-alone 
medium-temperature units containing a flooded evaporator'' (FOR12A, 
FOR12B, HFC-134a, HFC-227ea, KDD6, R-125/290/134a/600a (55.0/1.0/42.5/
1.5), R-404A, R-407A, R-407B, R-407C, R-407F, R-410A, R-410B, R-417A, 
R-421A, R-421B, R-422A, R-422B, R-422C, R-422D, R-424A, R-426A, R-428A, 
R-434A, R-437A, R-438A, R-507A, RS-24 (2002 formulation), RS-44 (2003 
formulation), SP34E, THR-03))
 ``Stand-alone medium-temperature units with a compressor 
capacity below 2,200 btu/hour and not containing a flooded evaporator'' 
(FOR12A, FOR12B, HFC-134a, HFC-227ea, KDD6, R-125/290/134a/600a (55.0/
1.0/42.5/1.5), R-404A, R-407A, R-407B, R-407C, R-407F, R-410A, R-410B, 
R-417A, R-421A, R-421B, R-422A, R-422B, R-422C, R-422D, R-424A, R-426A, 
R-428A, R-434A, R-437A, R-438A, R-507A, RS-24 (2002 formulation), RS-44 
(2003 formulation), SP34E, THR-03))
 ``Remote condensing units'' (HFC-227ea, R-404A, R-407B, R-
421B, R-422A, R-422C, R-422D, R-428A, R-434A, R-507A)
 ``Retail food refrigeration--refrigerated food processing and 
dispensing equipment'' (HFC-227ea, KDD6, R-125/290/134a/600a (55.0/1.0/
42.5/1.5), R-404A, R-407A, R-407B, R-407C, R-407F, R-410A, R-410B, R-
417A, R-421A, R-421B, R-422A, R-422B, R-422C, R-422D, R-424A, R-428A, 
R-434A, R-437A, R-438A, R-507A, RS-44 (2003 formulation),
 ``Supermarket systems'' (HFC-227ea, R-404A, R-407B, R-421B, R-
422A, R-422C, R-422D, R-428A, R-434A, R-507A) and
 ``Vending machines'' (FOR12A, FOR12B, HFC-134a, KDD6, R-125/
290/134a/600a (55.0/1.0/42.5/1.5), R-404A, R-407C, R-410A, R-410B, R-
417A, R-421A, R-422B, R-422C, R-422D, R-426A, R-437A, R-438A, R-507A, 
RS-24 (2002 formulation), SP34E).

    Both petitioners also requested that EPA restrict the use of 
specific substances used for retrofitted equipment in:

 ``Supermarket systems'' (R-404A, R-407B, R-421B, R-422A, R-
422C, R-422D, R-428A, R-434A, R-507A)
 ``Remote condensing units'' (R-404A, R-407B, R-421B, R-422A, 
R-422C, R-422D, R-428A, R-434A, R-507A)

[[Page 76778]]

 ``Stand-alone units'' (R-404A, R-507A)
 ``Vending machines'' (R-404A, R-507A)

    NRDC requested that EPA establish a January 1, 2023, compliance 
date for restrictions in all of these subsectors. CARB's petition 
further included a request to establish a GWP limit of 150 for HFCs 
used in new retail food refrigeration equipment \85\ with charge sizes 
greater than 50 pounds but did not specify a compliance date.
---------------------------------------------------------------------------

    \85\ Under CARB's HFC regulation, retail food refrigeration 
includes stand-alone units (equipment), refrigerated food processing 
and dispensing units (equipment), remote condensing units, and 
supermarket systems. Available in the docket and at: https://ww2.arb.ca.gov/sites/default/files/barcu/regact/2020/hfc2020/frorevised.pdf.
---------------------------------------------------------------------------

    IIAR submitted two petitions for certain applications with ``retail 
food refrigeration.'' One petition requested that EPA establish a GWP 
limit of 150 for retail food refrigeration by January 1, 2022. In 
another granted petition, IIAR requested that EPA establish a GWP limit 
of 150 for new retail food refrigeration equipment with refrigerant 
charge capacities greater than 200 pounds and a GWP limit of 300 for 
new retail food refrigeration equipment with refrigerant charge 
capacities less than or equal to 200 pounds, by January 1, 2026. IIAR 
also requested that a GWP limit of 300 be established for the high 
temperature side of cascade systems by January 1, 2026.
    EIA's petition requested that EPA establish a GWP limit of 150 for 
HFCs used in new supermarket systems with refrigerant charge sizes 
greater than 50 pounds by January 1, 2023, or one year following 
finalization of rulemaking.
    Lastly, EPA granted two petitions from AHRI. One petition asked for 
restrictions on the use of HFCs used in ``standalone/self-contained 
refrigeration systems'' and ``remote refrigeration systems.'' \86\ 
Specifically, AHRI requested that EPA establish a GWP limit of 300 for 
new ``standalone/self-contained refrigeration systems'' and a GWP limit 
of 300 for new ``remote refrigeration systems'' by January 1, 2026. 
AHRI's petition also requested that ``medical, scientific and research 
applications'' be exempted. AHRI's second granted petition requested 
that EPA establish a GWP limit of 150 for new supermarket systems and 
remote condensing units with refrigerant charge capacities greater than 
200 pounds, and a GWP limit of 300 for the same equipment with 
refrigerant charge capacities less than or equal to 200 pounds by 
January 1, 2026. AHRI also requested a GWP limit of 300 for the high 
temperature side of cascade systems. This petition also requested that 
EPA establish a GWP limit of 150 for new stand-alone and refrigerated 
food processing and dispensing equipment by January 1, 2026.
---------------------------------------------------------------------------

    \86\ Another petition submitted by AHRI on April 13, 2021, 
available at www.regulations.gov in Docket ID No. EPA-HQ-OAR-2021-
0289, requested different restrictions for the same subsectors. As 
discussed in section VII.D.2 of this preamble, EPA is treating 
AHRI's later petition as an addendum to AHRI's earlier petitions.
---------------------------------------------------------------------------

    Additional information, including the relevant petitions, is 
available in the docket. What restrictions on the use of HFCs is EPA 
proposing for new retail food refrigeration--stand-alone units?
    EPA is proposing to prohibit the use of HFCs and blends containing 
HFCs that have a GWP of 150 or greater beginning January 1, 2025, in 
retail food refrigeration--stand-alone units. This proposed GWP limit 
would apply to new equipment used in retail food refrigeration--stand-
alone units, irrespective of compressor capacity or evaporator design.
    For new equipment, several substitutes are available in place of 
the HFCs and blends containing HFCs that EPA is proposing to restrict, 
which informed EPA's consideration of the availability of substitutes. 
These include R-744 (GWP 1), R-290 (GWP 3), R-600a (GWP <1), and R-441A 
(GWP 3). In addition to these substitutes' lower GWP, some of these 
substitutes also offer additional environmental benefits via increased 
energy efficiency. For example, several sources show that R-290 offers 
significant efficiency benefits as compared to traditional higher-GWP 
refrigerants used for commercial refrigeration. Studies have shown that 
energy use can be reduced between 21 and 34 percent, depending on 
operating conditions, for commercial refrigeration systems utilizing R-
290 instead of R-404A.87 88 89 One company claimed that 
equipment using R-290 as the refrigerant consumed between 11 and 63 
percent, depending on the model, when compared to an equivalent model 
using HFC-134a \90\ ``without sacrificing quality.'' \91\
---------------------------------------------------------------------------

    \87\ Emerson, October 2016. The Case for R-290. E360 Outlook. 
Available at: https://e360hub.emerson.com/emersons-r-290-product-offerings/the-case-for-r-290-5.
    \88\ Carel, March 2020. Six Reasons to Use Propane as 
Refrigerant. Available at: https://www.carel.com/blog/-/blogs/six-reasons-to-use-propane-as-refrigerant.
    \89\ Mastrullo, Rita & Mauro, Alfonso & Menna, Laura & Vanoli, 
G.P. (2014). Replacement of R404A with propane in a light commercial 
vertical freezer: A parametric study of performances for different 
system architectures. Energy Conversion and Management. 82. 54-60. 
10.1016/j.enconman.2014.02.069.
    \90\ True Manufacturing, 2019, Hydrocarbon (Natural Refrigerant) 
Brochure. Available at: https://www.truemfg.com/Media-Center/Marketing-Collateral.
    \91\ True Manufacturing, Company Profile. Video. Available at: 
https://truemfg.com/Media-Center/Videos.
---------------------------------------------------------------------------

    Furthermore, use of R-290 and other lower-GWP refrigerants has 
increased over the past seven years in various stand-alone equipment 
types, indicating that use of substitutes is technologically achievable 
and that there is commercial demand for equipment that use substitutes. 
EPA is also aware of several available low and medium temperature units 
using substitutes such as R-290 and R-600a. Commercial demands for 
equipment types that use R-290, based on EPA's research,\92\ include 
reach-in refrigerators and freezers, beverage coolers, and food service 
equipment and types of equipment that use R-744 include beverage 
coolers and vending machines.
---------------------------------------------------------------------------

    \92\ See Commercial Demands and Technological Achievability TSD 
in the docket for a list of products in the affected sectors and 
subsectors using substitutes.
---------------------------------------------------------------------------

    EPA also notes that several states have banned the use of higher-
GWP refrigerants in stand-alone units. The states/commonwealths of 
California, Colorado, Delaware, Maine, Maryland, Massachusetts, New 
Jersey, New York, Rhode Island, Virginia, Vermont, and Washington all 
have legal restrictions on the use of HFCs and HFC blends in stand-
alone equipment, and, depending on the state, these restrictions went 
into effect at various times between the years 2020 through 2022. 
Stand-alone equipment using lower-GWP substitutes are being sold in 
these markets to comply with regulatory requirements, clearly 
indicating that these types of equipment using available substitutes 
are available, which informs our consideration of the availability of 
substitutes under subsection (i)(4)(B), including our consideration of 
subfactors such as technological achievability and commercial demands.
    What restrictions on the use of HFCs is EPA proposing for 
retrofitted retail food refrigeration--stand-alone units?
    EPA is not proposing any restrictions on the use of HFCs in 
retrofitted stand-alone units. For future consideration in a potential 
subsequent rulemaking, the Agency is taking comment on and seeking data 
and information regarding the prevalence of retrofitting in stand-alone 
units. EPA is also seeking comment on what refrigerants are commonly 
used in retrofitted stand-alone units. EPA is also seeking comment on a 
GWP limit to set for these

[[Page 76779]]

units. As noted earlier in the preamble, EPA does not intend to respond 
to any advance comments or information received regarding retrofitted 
retail food refrigeration--stand-alone units.
    What restrictions on the use of HFCs is EPA proposing for new 
retail food refrigeration--refrigerated food processing and dispensing 
equipment?
    EPA is proposing to prohibit the use of HFCs and blends containing 
HFCs that have a GWP of 150 or greater beginning January 1, 2025, in 
retail food refrigeration--refrigerated food processing and dispensing 
equipment. This proposed GWP limit would apply to new equipment used in 
retail food refrigeration-- refrigerated food processing and dispensing 
equipment.
    For its consideration of availability of substitutes under 
subsection (i)(4)(B), EPA identified substitutes such as R-744 and R-
717 which are available for use in this subsector in place of the HFCs 
and blends containing HFCs that EPA is proposing to restrict. 
Additionally, EPA is aware that companies have expressed interest in 
using other substitutes such as R-290 for this subsector.
    Based on the Agency's review of available information as well as 
state regulatory activities, EPA is proposing a compliance date of 
January 1, 2025. EPA is aware of actions being taken in various states 
and local jurisdictions that have or will amend building codes that 
will increase the availability of substitutes by permitting additional 
substitutes, including certain flammable substitutes, with GWPs below 
the proposed GWP limit.\93\
---------------------------------------------------------------------------

    \93\ See the TSD on building codes in the docket for additional 
information on building codes and list of substitutes.
---------------------------------------------------------------------------

    What restrictions on the use of HFCs is EPA proposing for new 
retail food refrigeration--supermarket systems?
    EPA is proposing to prohibit the use of HFCs and blends containing 
HFCs with a GWP of 150 or greater in supermarket systems with 
refrigerant charge capacities equal to or greater than 200 pounds 
beginning January 1, 2025. For supermarket systems with refrigerant 
charge capacities less than 200 pounds and for the high temperature 
side of cascade systems, EPA is proposing to prohibit the use of HFCs 
and blends containing HFCs with a GWP of 300 or greater, beginning 
January 1, 2025. These proposed GWP limits would apply to new retail 
food refrigeration--supermarket systems.
    As with IPR systems, EPA is proposing to distinguish between larger 
supermarket systems (i.e., those with refrigerant charge capacities 
equal to or greater than 200 pounds) and smaller systems (i.e., those 
with refrigerant charge capacities less than 200 pounds). EPA is also 
proposing different GWP limits for refrigerants used in cascade 
systems. See section VII.F.3.a in the preamble for a discussion on 
EPA's rationale for making these distinctions.
    For its consideration of availability of substitutes under 
subsection (i)(4)(B), EPA identified substitutes that are available in 
place of the proposed restricted substances that EPA is proposing to 
restrict for larger refrigerant charge capacities (i.e., those with 
refrigerant charge capacities less than 200 pounds). These include R-
717, which can be used in a secondary loop (indirect) supermarket 
refrigeration system, and R-744, which can be used for centralized 
direct and indirect supermarket refrigeration systems. For systems with 
smaller refrigerant charge capacities, substitute refrigerants R-454C 
(GWP 146), R-471A (GWP 139), and R-516A (GWP 140) can serve as other 
potential candidates for use in place of the HFCs and blends containing 
HFCs that EPA is proposing to restrict.
    EPA notes that the proposed GWP limits would support the transition 
to lower-GWP substitutes and innovative technologies including those 
that have been used widely in other parts of the world, such as Europe 
and Canada, and have seen increased use in the United States. For 
example, the global market of transcritical R-744 systems, which are 
manufactured by a number of U.S. companies, is expected to grow 
significantly, at a compound annual growth rate of 12.69 percent, 
between 2018 and 2025.\94\ R-744 systems may also provide additional 
beneficial environmental impacts via increased energy efficiency in 
some cases; however, R-744 systems can experience declining 
efficiencies in high ambient temperature (e.g., Bahrain) although 
technologies continue to be under development.
---------------------------------------------------------------------------

    \94\ Global Transcritical CO2 Systems Market by Function 
(Refrigeration, Air Conditioning, Heating), Application (Heat Pumps, 
Food Processing, Others), Region, Global Industry Analysis, Market 
Size, Share, Growth, Trends, and Forecast 2018 to 2025, FiorMarkets, 
March 2019. Report description available at: https://www.fiormarkets.com/report/global-transcritical-co2-systems-market-by-function-refrigeration-376006.html.
---------------------------------------------------------------------------

    What restrictions on the use of HFCs is EPA proposing for 
retrofitted retail food refrigeration--supermarket systems?
    EPA is not proposing restrictions on the use of HFCs in retrofitted 
retail food refrigeration--supermarket systems. EPA acknowledges that 
two granted petitions contained requests for EPA to restrict the use of 
specific substances in retrofitted supermarkets systems (as described 
in this section above). However, the Agency did not find specific 
information on substitutes used in retrofitted supermarkets, though the 
Agency is aware of possible substitutes (e.g., R-450A, R-513A, R-448A, 
and R-449A). EPA, therefore, is seeking comment on what substitutes are 
commonly used in retrofitted supermarket systems. As noted earlier in 
the preamble, EPA does not intend to respond to any advance comments or 
information received regarding retrofitted retail food refrigeration--
supermarket systems.
    What restrictions on the use of HFCs is EPA proposing for new 
retail food refrigeration--remote condensing units?
    EPA is proposing to prohibit the use of HFCs and blends containing 
HFCs with a GWP of 150 or greater for remote condensing units with 
refrigerant charge capacities greater than 200 pounds beginning January 
1, 2025. For remote condensing units with refrigerant charge capacities 
less than 200 pounds, and for the high temperature side of cascade 
systems, EPA is proposing to prohibit the use of HFCs and blends 
containing HFCs with a GWP of 300 or greater, beginning January 1, 
2025. These proposed GWP limits would apply to new equipment used in 
remote condensing units.
    EPA is proposing to distinguish between larger remote condensing 
units (i.e., those with refrigerant charge capacities equal to or 
greater than 200 pounds) and smaller systems (i.e., those with 
refrigerant charge capacities less than 200 pounds) and is proposing a 
different GWP limit for the high temperature side of a cascade system, 
based on the rationale stated in section VII.F.3.a in the preamble.
    For its consideration of availability of substitutes under 
subsection (i)(4)(B), EPA identified available substitutes in place of 
the proposed restricted substances, including R-744 (GWP 1) and R-717 
(GWP 0). Additional refrigerants that could potentially be available 
substitutes include R-454C (GWP 146), R-471A (GWP 139), and R-455A (GWP 
146). R-744 remote condensing units are now commercially available in 
several markets, including in the United States. Although market 
penetration is low at present globally, it is expected to increase in 
the near future.\95\
---------------------------------------------------------------------------

    \95\ 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.

---------------------------------------------------------------------------

[[Page 76780]]

    What restrictions on the use of HFCs is EPA proposing for 
retrofitted retail food refrigeration--remote condensing units?
    EPA is not proposing restrictions on the use of HFCs in retrofitted 
remote condensing units. EPA acknowledges that two granted petitions 
contained requests for EPA to restrict the use of specific substances 
in retrofitted remote condensing units. However, the Agency did not 
find sufficient information demonstrating that there would be available 
substitutes for use in remote condensing units undergoing retrofits. 
However, the Agency is aware of substances that could potentially be 
available substitutes (e.g., R-450A, R-513A, and R-448A) and is 
therefore seeking comment on whether there are substitutes to HFCs that 
are commonly used in retrofitted remote condensing units. As noted 
earlier in the preamble, EPA does not intend to respond to any advance 
comments or information received regarding retrofitted retail food 
refrigeration--remote condensing units.
    What restrictions on the use of HFCs is EPA proposing for new 
vending machines?
    EPA is proposing to prohibit the use of HFCs and blends containing 
HFCs that have a GWP of 150 or greater in vending machines beginning 
January 1, 2025. This proposed GWP limit would apply to new vending 
machines.
    For its consideration of availability of substitutes under 
subsection (i)(4)(B), EPA identified available substitutes in place of 
the proposed restricted substances including, R-290 (GWP 3), R-600a 
(GWP <1), R-744 (GWP 1), and R-441A (GWP 3).
    Vending machines using lower-GWP refrigerants, primarily R-290 and 
R-744, are technologically achievable and the use of these substitutes 
is increasing, indicating commercial demands. Two of the largest 
vending machine customers in the U.S. market, Coca-Cola and PepsiCo, 
have been using R-744 over the past decade.96 97 Recently, 
industry safety standards and building codes have been revised to allow 
the use of lower-GWP substitutes. ASHRAE amended the safety standard 
ASHRAE 15 to allow vending machines with up to 114 grams of R-290 to be 
used in those locations where they were not previously allowed prior to 
the modification of industry standards. UL also modified their standard 
covering this equipment ``for the unrestricted placement of vending 
machines refrigerated with advanced, environmentally-friendly 
coolants.'' \98\ Beginning January 1, 2020, the NAMA Foundation 
partnered with DOE in a two-year, $400,000 cooperative research and 
development agreement on energy efficient vending machines utilizing 
refrigerants such as R-290.\99\
---------------------------------------------------------------------------

    \96\ Coca-cola, January 2014, Coca-cola Installs 1 Millionth 
HFC-Free Cooler Globally, Preventing 5.25MM Metric Tons of 
CO2. Available at: https://www.coca-colacompany.com/press-releases/coca-cola-installs-1-millionth-hfc-free-cooler.
    \97\ PepsiCo, 2020. Sustainability Focus Area: Climate. 
Available at: https://www.pepsico.com/our-impact/sustainability/focus-area/climate.
    \98\ Karnes, B, March 2021, Revisions to UL 541, the Standard 
for Refrigerated Vending Machines. Available at: https://www.ul.com/news/revisions-ul-541-standard-refrigerated-vending-machines.
    \99\ NAMA, 2019. NAMA Foundation Annual Report 2019. Available 
at: https://namanow.org/wp-content/uploads/2019-NAMA-Foundation-Annual-Report.pdf.
---------------------------------------------------------------------------

    On which topics is EPA specifically requesting comment?
    EPA is requesting comment on the proposed GWP limits for subsectors 
in retail food refrigeration and vending machines described in this 
section. EPA is also specifically requesting comment for new 
supermarket systems and remote condensing units and its proposal to 
establish a GWP limit of 150 or greater for HFCs and blends used in new 
systems with refrigerant charge capacities greater than 200 pounds, and 
a GWP limit of 300 or greater for HFCs and blends containing HFCs used 
in new systems with refrigerant charge capacities less than 200 pounds 
and for the high temperature side of cascade systems. EPA is 
considering whether a GWP limit lower than the proposed limit of 300 
would be appropriate for systems with smaller refrigerant charge 
capacities (i.e., less than 200 pounds). Accordingly, EPA seeks comment 
on technical and design challenges that exist for such systems to use 
refrigerants with GWPs less than 150, and strategies that can be 
employed to mitigate these challenges.
c. Cold Storage Warehouses
Background on Cold Storage Warehouses
    Cold storage warehouses are refrigerated facilities used for the 
storage of temperature-controlled substances. Cold storage warehouses 
can be divided into two categories: central plant systems and packaged 
systems. Central plants are custom-built refrigeration systems that are 
typically used in large refrigerated warehouses with cooling capacities 
that range from 20 to 5,000 kW. Central plant systems deliver cool air 
to the refrigerated space through evaporators, which are typically 
suspended from the ceiling in the refrigerated space. The evaporators 
are connected through a piping network to multiple compressors located 
in a central machine room, and a condenser, which is typically mounted 
outside near the compressor. Central plant systems may have a direct or 
indirect (secondary loop) design. Direct systems circulate a primary 
refrigerant throughout the refrigerated space. In an indirect system, a 
primary refrigerant cools a secondary refrigerant in the machine room, 
and the secondary refrigerant is then circulated throughout the 
refrigerated space.
    Packaged systems (also known as unitary systems) are self-contained 
systems that combine an evaporator, compressor, and condenser in one 
frame. Packaged systems are commonly installed on the roof of a 
refrigerated warehouse above the air cooling units that are within the 
refrigerated space. The evaporator is located inside the refrigerated 
space of a walk-in facility while the condensing unit, which is usually 
protected by weather resistant housing, is located outside. Packaged 
systems are most commonly used in small refrigerated warehouses that 
have a capacity of 20 to 750 kW.
    In response to the phaseout of ODS under the Clean Air Act and the 
Montreal Protocol, in the 1990s many manufactures began the transition 
from CFCs to HCFC-22, and then later from HCFC-22 to HFCs--primarily R-
404A and R-507, which have GWPs of 3,922 and 3,985, respectively.\100\ 
Some ODS users transitioned to R-717, as well.
---------------------------------------------------------------------------

    \100\ 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.
---------------------------------------------------------------------------

Information Contained in the Granted Petitions Concerning the Use of 
HFCs for Cold Storage Warehouses
    EPA granted six petitions that requested restrictions on the use of 
HFCs in cold storage warehouses, which were submitted by EIA, IIAR (two 
petitions), CARB, AHRI, and NRDC. Three petitions--submitted by EIA, 
IIAR, and CARB--requested that EPA establish a GWP limit of 150 for 
HFCs used in new cold storage warehouses that contain more than 50 
pounds of refrigerant. EIA requested a compliance date of January 1, 
2023, or one year following the finalization of rulemaking. IIAR 
requested a compliance date of January 1, 2022. CARB did not specify a 
compliance date.
    Two petitions--AHRI and IIAR's second petition--requested that EPA 
establish a GWP limit of 150 for HFCs used in new cold storage 
warehouses with refrigerant charge capacities greater

[[Page 76781]]

than 200 pounds and a GWP limit of 300 for HFCs used in new cold 
storage warehouses with refrigerant charge capacities less than or 
equal to 200 pounds. Both petitions also requested a GWP limit of 300 
for the HFCs used in the high temperature side of cascade systems. 
These petitions requested a January 1, 2026, compliance date for these 
restrictions.
    NRDC's petition requested that EPA specifically restrict the use of 
the following substances in new cold storage warehouses: HFC-227ea, R-
125/290/134a/600a (55.0/1.0/42.5/1.5), R-404A, R-407A, R-407B, R-410A, 
R-410B, R-417A, R-421A, R-421B, R-422A, R-422B, R-422C, R-422D, R-423A, 
R-424A, R-428A, R-434A, R-438A, R-507A, and RS-44 (2003 composition).
    Additional information, including the relevant petitions, is 
available in the docket. What restrictions on the use of HFCs is EPA 
proposing for cold storage warehouses?
    EPA is proposing to prohibit the use of HFCs and blends containing 
HFCs with a GWP of 150 or greater in cold storage warehouse systems 
with refrigerant charge capacities equal to or greater than 200 pounds 
beginning January 1, 2025. For cold storage warehouse equipment with 
refrigerant charge capacities less than 200 pounds and for the high 
temperature side of cascade systems, EPA is proposing to prohibit the 
use of HFCs and blends containing HFCs with a GWP of 300 or greater, 
beginning January 1, 2025. These proposed GWP limits would apply to new 
equipment used in cold storage warehouses.
    EPA is proposing to distinguish between larger equipment in new 
cold storage warehouses (i.e., those with refrigerant charge capacities 
equal to or greater than 200 pounds) and smaller systems (i.e., those 
with refrigerant charge capacities less than 200 pounds) and is 
proposing a different GWP limit for the high temperature side of a 
cascade system, based on the rationale stated in section VII.F.3.a in 
the preamble.
    For its consideration of availability of substitutes under 
(i)(4)(B), EPA identified several substitutes that are available in 
place of the substances that EPA is proposing to restrict. For systems 
with refrigerant charge capacities equal to or greater than 200 pounds, 
these include R-717 vapor compression, R-744 (GWP 1), HCFO-1233zd(E) 
(GWP 3.7), R-454C (GWP 146), and R-471A (GWP 139); for smaller systems, 
R-454A (GWP 237) is an available substitute, in addition to those 
listed for larger systems. In addition to traditional vapor-compression 
cycle systems, several other types of systems that operate using 
thermodynamic cycles other than vapor compression such as R-717 
absorption, evaporative cooling, desiccant cooling, and Stirling cycle 
systems can be used in this subsector. These systems could also be used 
to comply with the GWP limit proposed.
    Market trends show that a significant portion of cold storage 
warehouses have transitioned from, or completely avoided, using higher-
GWP substances. Most cold storage warehouses in the United States use 
R-717 due to its long-standing use, lower cost per kilogram, and energy 
savings.\101\ While R-717 is not used extensively in many other 
subsectors of the RACHP sector, certain characteristics of cold storage 
warehouses reduce their typical proximity to people and have 
facilitated the widespread use of that refrigerant in this application, 
even though R-717 is listed as a lower flammability, higher toxicity 
(B2L) refrigerant in ASHRAE Standard 34. For example, because cold 
storage warehouses are often large to achieve economies of scale and 
require a large amount of land use--as opposed to other systems that 
might be located on a building roof or a small slab next to the 
building--they are typically located away from population centers where 
land costs and taxes may be higher. In addition, the transportation of 
goods is typically done in large volumes--by truck or train--to reduce 
costs, which in turn reduces the workforce needed and the number of 
people at the warehouse and, in particular, near the refrigeration 
equipment. These factors reduce the risk of using R-717, compared with 
other applications where more people might be present such as an office 
building. Additionally, R-717 is considered by many users to be a cost-
effective option for use in cold storage warehouses despite a higher 
capital cost for the equipment compared to HFC systems.
---------------------------------------------------------------------------

    \101\ Ibid.
---------------------------------------------------------------------------

    On which topics is EPA specifically requesting comment?
    EPA is requesting comment on proposing to establish a GWP limit of 
150 or greater for HFCs and blends containing HFCs used in new cold 
storage warehouse systems with refrigerant charge capacities greater 
than 200 pounds, and a GWP limit of 300 or greater for HFCs and blends 
containing HFCs used in new cold storage warehouses with refrigerant 
charge capacities less than 200 pounds and for the high temperature 
side of cascade systems. EPA is considering whether a GWP limit lower 
than the proposed limit of 300 would be appropriate for systems with 
smaller refrigerant charge capacities (i.e., less than 200 pounds). 
Accordingly, EPA seeks comment on technical and design challenges that 
exist for such systems to use refrigerants with GWPs less than 150 and 
strategies that can be employed to mitigate these challenges.
d. Ice Rinks
Background on Ice Rinks
    Ice rinks use equipment that move a fluid through pipes embedded in 
the concrete flooring of the facility to freeze layers of water. Ice 
rinks may be used by the public for recreational purposes as well as by 
professionals. These systems frequently use secondary loop 
refrigeration systems, in some cases consisting of a chiller along with 
associated pumps that move the chilled water or glycol working fluid. 
Another configuration sometimes used is a direct expansion system 
wherein the refrigerant flows under the ice and directly back to a 
compressor and condenser. System capacities vary based on the size of 
the ice rink and the required cooling load. Typical sizes for ice rink 
chillers are 50-, 100-, 150-, or 200-ton units. The ice surface is 
ideally maintained between 24 to 28 [deg]F (-4.4 to -2.2 [deg]C) 
depending on the application and users of the ice rink (e.g., figure 
skating versus hockey).
    Where local codes may not allow the use of ammonia in ice rinks, 
ice rinks first used ozone depleting CFC/HCFC refrigerants, such as R-
22, before transitioning to high-GWP HFCs such as R-404A and R-507A.
Information Contained in the Granted Petitions Concerning the Use of 
HFCs for Ice Rinks
    EPA granted three petitions, submitted by EIA, CARB, and IIAR, 
which requested restrictions on the use of HFCs and blends containing 
HFCs for ice rinks. All three petitions requested that EPA establish a 
GWP limit of 150 for HFCs and blends containing HFCs used in new ice 
rinks with more than 50 pounds of refrigerant by January 1, 2024. EIA 
also requested that EPA establish a GWP limit of 750 for HFCs and 
blends containing HFCs used in retrofitted ice rinks with more than 50 
pounds of refrigerant by January 1, 2024. Additional information, 
including the relevant petitions, is available in the docket.
    What restrictions on the use of HFCs is EPA proposing for new ice 
rinks?
    EPA is proposing to restrict the use of HFCs or blends containing 
HFCs that have a GWP of 150 or greater in new ice

[[Page 76782]]

rink systems beginning January 1, 2025. These proposed GWP limits would 
apply to HFCs used in new ice rinks.
    For its consideration of availability of substitutes under 
(i)(4)(B), EPA identified substitutes that are available in place of 
the substances that the Agency is proposing to restrict. These include 
R-717 (GWP 0), R-744 (GWP 1), and HCFO-1233zd(E) (GWP 3.7). R-471A (GWP 
139) also meets the proposed GWP limit and can serve as a potential 
candidate for use in place of the substances that EPA is proposing to 
restrict.
    Most new ice rinks use R-717 as a refrigerant due to its energy 
efficiency, while others are being designed to use R-744 and other 
lower-GWP substitutes.\102\ Although R-717 is a B2L (higher toxicity, 
lower flammability) refrigerant, risks to the general public are 
addressed by confining the R-717 to separate equipment (i.e., the high-
side chiller) in locations with access limited to trained service 
personnel only. In TSDs submitted with their petition, CARB estimated 
that more than 80 percent of ice rinks in California use R-717.\103\ 
According to EIA's petition, a majority of National Hockey League ice 
arenas also employ R-717, and the use of R-744 is becoming an 
increasingly popular option for ice rinks. This information indicates 
the technical achievability and commercial demand of substitutes.
---------------------------------------------------------------------------

    \102\ Packages--Design and Build, Toromont[verbar]CIMCO 
Refrigeration. Available at: https://www.cimcorefrigeration.com/packages-design-build.
    \103\ Staff Report: Initial Statement of Reasons, CARB, October 
2020. Available at: https://ww2.arb.ca.gov/rulemaking/2020/hfc2020.
---------------------------------------------------------------------------

    As noted in this section above, other refrigerant options exist for 
new ice rinks that meet the proposed GWP limit. HCFO-1233zd(E) has been 
recently listed as acceptable through the SNAP program for use in new 
ice rinks. In areas where safety or toxicity reasons prevent the use of 
R-717, lower-GWP (hydrochlorofluoroolefin) HCFO or HFO chillers and 
lower-GWP transcritical R-744 systems are options available for use in 
ice rink systems. Further, EPA identified commercially available 
products containing some of these substitutes.\104\
---------------------------------------------------------------------------

    \104\ See the Commercial Demands and Technological Achievability 
TSD in the docket for additional information.
---------------------------------------------------------------------------

    What restrictions on the use of HFCs is EPA proposing for 
retrofitted ice rinks?
    One granted petition contained a request for EPA to restrict the 
use of specific substances in retrofitted remote condensing (as 
described previously in this section). However, the Agency did not find 
specific information on available substitutes for retrofitted ice 
rinks, although the Agency is aware of possible substitutes (e.g., R-
450A and R-513A). EPA is therefore not proposing restrictions on the 
use of HFCs in retrofitted ice rinks. As noted earlier in the preamble, 
EPA does not intend to respond to any advance comments or information 
received regarding retrofitted ice rinks.
    On which topics is EPA specifically requesting comment?
    EPA is requesting comment on proposing to establish a GWP limit of 
150 or greater for HFCs and blends containing HFCs used in new ice 
rinks.
e. Automatic Commercial Ice Machines
Background on Automatic Commercial Ice Machines
    Automatic commercial ice machines (ACIM) are used in commercial 
establishments such as hotels, restaurants, and convenience stores to 
produce ice for consumer use. Many ACIM can be self-contained units, 
while some have the condenser separated from the portion of the machine 
making the ice and have refrigerant lines running between the two 
(referred to as remote-condensing ACIM). Self-contained or stand-alone 
units are a type of ACIM in which the ice-making mechanism and storage 
compartment are in an integral cabinet. Stand-alone ACIM contain both 
evaporator and condenser, have no external refrigerant connections, and 
are entirely factory-charged and factory-sealed with refrigerants. 
These types of systems are analogous to other types of stand-alone 
equipment like vending machines or refrigerated display cases. These 
types of systems generally have lower refrigerant charge sizes.
    Like other types of remote-condensing RACHP equipment, remote-
condensing ACIM utilize a split-system design where the evaporator 
(which freezes water into ice) is located indoors, while the condensing 
unit (which rejects heat to surrounding air) is located outdoors. In 
remote-compressor systems, the heat is still rejected in the indoor 
room but the compressor is located outdoors via interconnected 
refrigerant piping. These designs require field-assembled refrigerant 
piping to connect the indoor unit with the remote condensing unit, 
which significantly increases the overall refrigerant charge size 
required as compared to a self-contained system.
    R-404A and R-410A are the most common HFC refrigerants used 
currently for ACIM and replaced the use of ozone depleting HCFCs such 
as R-22.
Information Contained in the Granted Petitions Concerning the Use of 
HFCs for Automatic Commercial Ice Machines
    EPA granted one petition which requested restrictions on the use of 
HFCs and blends containing HFCs for ACIM, which was submitted by AHRI. 
AHRI specifically requested that EPA establishes a GWP limit of 2,200 
for HFCs and blends containing HFCs used in new ``ACIM'' \105\ with 
charge sizes greater than 50 pounds excluding medical, scientific, and 
research applications by January 1, 2022. Additional information 
regarding this petition is available in the docket.
---------------------------------------------------------------------------

    \105\ EPA believes AHRI used ``ACIM'' to refer to automatic 
commercial ice machines and for the purposes of this proposed 
action, the Agency will be using that acronym.
---------------------------------------------------------------------------

    What restrictions on the use of HFCs is EPA proposing for automatic 
commercial ice machines?
    EPA is proposing to restrict the use of HFCs and blends containing 
HFCs that have a GWP of 150 or greater for self-contained ACIM with 
charge sizes less than or equal to 500 grams beginning January 1, 2025. 
EPA is proposing to restrict the use of the following HFCs and blends 
containing HFCs in new self-contained ACIM with refrigerant charge 
capacities exceeding 500 grams beginning January 1, 2025: R-404A, R-
507, R-507A, R-428A, R-422C, R-434A, R-421B, R-408A, R-422A, R-407B, R-
402A, R-422D, R-421A, R-125/R-290/R-134a/R-600a (55/1/42.5/1.5), R-
422B, R-424A, R-402B, GHG-X5, R-417A, R-438A, R-410B, R-407A, R-410A, 
R-442A, R-417C, R-407F, R-437A, R-407C, RS-24 (2004 formulation), and 
HFC-134a. EPA is proposing to restrict the use of the following HFCs 
and blends containing HFCs in new remote condensing ACIM beginning 
January 1, 2025: R-404A, R-507, R-507A, R-428A, R-422C, R-434A, R-421B, 
R-408A, R-422A, R-407B, R-402A, R-422D, R-421A, R-125/R-290/R-134a/R-
600a (55/1/42.5/1.5), R-422B, R-424A, R-402B, GHG-X5, R-417A, R-438A, 
and R-410B. These proposed restrictions would apply on the use of HFCs 
and blends containing HFCs used in new ACIM.
    EPA is proposing three different sets of restrictions on the use of 
HFCs and blends containing HFCs in ACIM, depending on the type of ACIM. 
This distinction is based on EPA's current understanding of refrigerant 
options available for each type of ACIM due to revised industry safety 
standards. All categories of ACIM are covered by UL Standard 60335-2-89 
Standard for Safety for Household and Similar Electrical Appliances--
Safety--Part 2-

[[Page 76783]]

89: Particular Requirements for Commercial Refrigerating Appliances and 
Ice-Makers with an Incorporated or Remote Refrigerant Unit or Motor-
Compressor. UL 60335-2-89 2nd edition recently increased the allowable 
charge limits for flammable refrigerants in commercial refrigeration 
equipment, including both flammable (i.e., ``A3'') refrigerants and 
lower-flammability (i.e., ``A2L'') refrigerants. UL 60335-2-89 2nd 
edition increases the current charge limit for stand-alone systems 
using propane (R-290, A3) from a maximum of 150 grams per refrigerant 
circuit to a maximum of either 300 grams or 500 grams per refrigerant 
circuit, depending on construction. For stand-alone ACIM, the UL safety 
standard dictates a 300 gram limit for propane for ``packaged 
refrigerating units and appliances with doors and/or drawers enclosing 
one or more refrigerated compartments.'' (22.110 DV.2). This limit 
applies to ``unprotected'' designs where the refrigerant can leak into 
the ice storage bin. For protected units, in which the refrigerant 
cannot leak into the bin, then a 500 gram limit is allowed when using 
propane and a similar amount for other A3 refrigerants. Further, the UL 
standard restricts the allowable charge size of flammable refrigerant 
in these appliances for ``self-contained appliances used in a public 
corridor or lobby.'' (22.110 DV.2) Certain flammable refrigerants 
(i.e., ``A3'' or ``A2'') are not allowed in any quantities in split-
systems with field-constructed refrigerant piping. (22.110 DV.3)
    Based on this reading of the industry safety standard, and other 
information related to the (i)(4)(B) factors contained in the docket, 
available substitutes for self-contained ACIM include R-290 (GWP 3) 
where the charge size is no more than 500 grams, and R-450A (GWP 601), 
and R-513A (GWP 630) where the charge size is above that amount. 
Substitute refrigerants R-455A (GWP 146), R-454C (GWP 146), and R-454A 
(GWP 237) also meet the proposed GWP limit and can serve as other 
potential candidates for use in place of the HFCs and blends containing 
HFCs that EPA is proposing to restrict in self-contained units, except 
that R-454A would not be allowed if the charge size was less than or 
equal to 500 grams. Refrigerants such as R-454B (GWP 465) and HFC-32 
(GWP 675), which are being pursued for other R-410A applications, and 
R-448A (GWP 1386) and R-449A (GWP 1396), which are being pursued for 
other R-404A applications, are potential candidates for self-contained 
ACIM with charge sizes exceeding 500 grams. Available substitutes for 
remote condensing ACIM include R-448A, R-449A, R-449B, and HFC-134a.
    EPA is not proposing a GWP limit for remote condensing ACIM and 
stand-alone ACIM with refrigerant charge capacities exceeding 500 grams 
in this action and instead is proposing to restrict the use of specific 
HFCs and blends containing HFCs. EPA believes a GWP limit of 2,200, as 
requested in a granted petition, is high compared to the GWP limits 
that the Agency is proposing in other commercial refrigeration 
applications. For remote condensing ACIM, the Agency intends to propose 
a GWP limit at a later time. Likewise, if EPA finalizes a restriction 
of specific HFCs and blends containing HFCs for standalone ACIM with 
charge sizes exceeding 500 grams, we intend to propose a GWP limit at a 
later time. In this action, EPA is proposing to restrict specific 
substances used in new remote condensing ACIM, and a separate set of 
specific substances used in new self-contained ACIM with refrigerant 
charge capacities exceeding 500 grams. As stated in section VII.B of 
this preamble, this approach--restricting specific substances instead 
of setting a GWP limit for a given subsector--gives EPA time to 
identify a GWP limit for this subsector while still restricting those 
substances that have the highest environmental impact.
    On which topics is EPA specifically requesting comment?
    EPA is requesting comment on: proposing to establish a GWP limit of 
150 or greater for HFCs and blends containing HFCs used in new self-
contained ACIM with charge sizes less than or equal to 500 grams; 
proposing to restrict the use of R-404A, R-507, R-507A, R-428A, R-422C, 
R-434A, R-421B, R-408A, R-422A, R-407B, R-402A, R-422D, R-421A, R-125/
R-290/R-134a/R-600a (55/1/42.5/1.5), R-422B, R-424A, R-402B, GHG-X5, R-
417A, R-438A, R-410B, R-407A, R-410A, R-442A, R-417C, R-407F, R-437A, 
R-407C, RS-24 (2004 formulation), and HFC-134a in new self-contained 
ACIM with charge sizes greater than 500 grams; and proposing to 
restrict the use of R-404A, R-507, R-507A, R-428A, R-422C, R-434A, R-
421B, R-408A, R-422A, R-407B, R-402A, R-422D, R-421A, R-125/R-290/R-
134a/R-600a (55/1/42.5/1.5), R-422B, R-424A, R-402B, GHG-X5, R-417A, R-
438A, and R-410B in remote condensing ACIM. EPA is seeking comment on 
the types of ACIM and substitutes (i.e., refrigerants) that may be used 
in each type of ACIM and whether certain aspects of the ACIM (e.g., 
charge size, harvest rate) or refrigerant (e.g., flammability 
classification, glide, discharge temperature) affect the alternatives 
that may be used. EPA is requesting comment on the charge size of 500 
grams as the differentiation between the proposed 150 GWP limit and the 
proposed restricted substances for new standalone ACIM. EPA also 
requests comment on the proposed transition dates and the potential 
environmental benefits of finalizing a later transition date for one or 
more of these types of ACIM. For new standalone ACIM with a charge size 
greater than 500 grams, EPA is also considering a restriction based on 
a GWP limit, possibly higher than the 150 GWP limit proposed for other 
standalone ACIMs. We request comment on the advantages or disadvantages 
of both possible approaches as compared to the proposed restriction. 
For consideration in a subsequent rulemaking, EPA further seeks 
information on a GWP limit for new remote condensing ACIM.
f. Refrigerated Transport
Background on Refrigerated Transport
    The refrigerated transport subsector primarily moves perishable 
goods (e.g., food) and pharmaceuticals at temperatures between -22 
[deg]F (-30 [deg]C) and 61 [deg]F (16 [deg]C) by various modes of 
transportation, including roads, vessels, and intermodal containers. 
For this action, EPA is proposing three distinct subsectors: 
refrigerated transport--road, refrigerated transport--marine, and 
refrigerated transport--intermodal containers.
    Refrigerated transport--road consists of refrigeration for 
perishable goods in refrigerated vans, trucks, or trailer-mounted 
systems and is the most common mode of refrigerated transport. This 
mode includes refrigerated trucks and trailers with a separate 
autonomous refrigeration unit with the condenser typically located at 
the front of a refrigerated trailer. This subsector also covers 
domestic trailer refrigeration units that contain an integrated motor 
(i.e., does not require a separate electrical power system or separate 
generator set to operate) that are transported as part of a truck, on 
truck trailers, and on railway flat cars. Other types of containers, 
such as seagoing ones that are connected to a vessel's electrical 
system or require a separate generator that is not an integral part of 
the refrigeration unit to operate, are not included. This subsector 
also does not include: (i) refrigerated vans or other vehicles where a 
single system also supplies passenger comfort cooling, (ii) 
refrigerated containers that are less than 8 feet 4 inches in width, 
(iii)

[[Page 76784]]

refrigeration units used on containers that require a separate 
generator to power the refrigeration unit, or (iv) ship holds.
    Refrigerated transport--marine consists of refrigeration for 
perishable goods on refrigerated vessels and various modes of 
transportation via water, including merchant, naval, fishing, and 
cruise-shipping. And lastly, refrigerated transport--intermodal 
containers are refrigerated containers that allow uninterrupted storage 
during transport on different mobile platforms, including railways, 
road trucks, and vessels.
    Refrigerated transport equipment manufacturers have used HFC 
refrigerants, mainly R-404A and HFC-134a, after phasing out ozone 
depleting CFC and HCFC refrigerants such as R-12 and R-22.
Information Contained in the Granted Petitions Concerning the Use of 
HFCs for Refrigerated Transport
    EPA granted one petition which requested restrictions on the use of 
HFCs and blends containing HFCs for refrigerated transport, which was 
submitted by AHRI. AHRI specifically requested that EPA establish a GWP 
limit of 2,200 for HFCs and blends containing HFCs used in new 
``transport refrigeration'' by January 1, 2023. Additional information 
from this petition available in the docket.
    What restrictions on the use of HFCs is EPA proposing for 
refrigerated transport--road?
    EPA is proposing to restrict the use of the following HFCs and 
blends containing HFCs in new refrigerated transport--road systems 
beginning January 1, 2025: R-404A, R-507, R-507A, R-428A, R-422C, R-
434A, R-421B, R-408A, R-422A, R-407B, R-402A, R-422D, R-421A, R-125/R-
290/R-134a/R-600a (55/1/42.5/1.5), R-422B, R-424A, R-402B, GHG-X5, R-
417A, R-438A, and R-410B.
    Similar to EPA's approach in addressing use of HFCs and blends 
containing HFCs in remote condensing ACIM, EPA is not proposing a GWP 
limit for refrigerated transport--road in this action and instead is 
proposing to restrict the use of specific HFCs and blends containing 
HFCs. EPA believes a GWP limit of 2,200, as requested in a granted 
petition, is high compared to the GWP limit that the Agency is 
proposing in other commercial refrigeration applications, and the 
Agency intends to propose a GWP limit at a later time. In this action, 
EPA is proposing to restrict specific substances used in new 
refrigerated transport--road. As stated in section VII.B of this 
preamble, this approach--restricting specific substances instead of 
setting a GWP limit for a given subsector--gives EPA time to identify a 
GWP limit while still restricting those substances that have the 
highest environmental impact (e.g., R-404A, with a GWP of 3,920, is a 
commonly used refrigerant in this subsector that EPA is proposing to 
restrict).
    For its considerations of availability of substitutes under 
subsection (i)(4)(B), EPA identified substitutes that are available in 
place of the substances that EPA is proposing to restrict. These 
include R-744 (GWP 1), R-450A (GWP 601), R-513A (GWP 630), and R-452A 
(GWP 2,140). Cryogenic transport refrigeration systems and direct 
nitrogen expansion are other existing technologically achievable 
options. Cryogenic systems, in particular, cool cargo by injection of 
stored liquid R-744 or nitrogen (R-728) to the cargo space or an 
evaporator. These systems are used in small and large trucks, primarily 
in Northern Europe. In recent years manufacturers have also developed 
products containing the lower-GWP alternative R-452A. R-452A has 
similar properties to R-404A, including cooling capacity, reliability, 
refrigerant charge, non-flammability, and low compressor discharge 
temperatures, supporting its use as a lower-GWP and technologically 
achievable substitute. The two major U.S.-based manufacturers of 
refrigeration systems for refrigerated transport--road offer systems 
using R-452A, 106 107 an indication of the commercial 
demands and technological achievability of units using one of the 
available substitutes.
---------------------------------------------------------------------------

    \106\ Thermo King to Reduce Global Warming Potential of 
Transport Refrigeration by Nearly Fifty Percent, Thermo King, 
January 2022. Available at: https://www.thermoking.com/na/en/newsroom/2022/01-jan/thermo-king-to-reduce-global-warming-potential-of-transport-refr.html.
    \107\ Carrier Transicold Strengthens Sustainability Initiatives 
with Lower GWP Refrigerant for North America Truck and Trailer 
Systems, Carrier Transicold, December 2020. Available at: https://www.carrier.com/truck-trailer/en/north-america/news/news-article/carrier_transicold_strengthens_sustainability_initiatives_with_lower_gwp_refrigerant_for_north_america_truck_and_trailer_systems.html.
---------------------------------------------------------------------------

    What restrictions on the use of HFCs is EPA proposing for 
refrigerated transport--marine?
    EPA is proposing to restrict the use of the following HFCs and 
blends containing HFCs in new refrigerated transport--marine systems 
beginning January 1, 2025: R-404A, R-507, R-507A, R-428A, R-422C, R-
434A, R-421B, R-408A, R-422A, R-407B, R-402A, R-422D, R-421A, R-125/R-
290/R-134a/R-600a (55/1/42.5/1.5), R-422B, R-424A, R-402B, GHG-X5, R-
417A, R-438A, and R-410B. Similar to refrigerated transport--road, EPA 
is not proposing a GWP limit at this time.\108\ EPA's rationale for 
restricting specific substances in this subsector and not proposing a 
GWP limit can be found in section VII.B of this preamble, with 
additional information in section VII.F.3.e (under the proposed 
restrictions on the use of HFCs in ACIM).
---------------------------------------------------------------------------

    \108\ See discussion in refrigerated transport--road for EPA's 
rationale for not proposing a GWP limit for this subsector.
---------------------------------------------------------------------------

    Available substitutes that can be used in refrigerated transport--
marine in place of the substances that EPA is proposing to restrict 
include R-744, R-450A, R-513A, and R-452A. Marine transport 
refrigeration systems cover a wide range of merchant, naval, fishing, 
and cruise-shipping applications and often require specialized and 
custom refrigeration solutions. Historically, this sector used R-22, R-
404A, R-507, R-407C, and R-134a. Today, manufacturers market lower-GWP 
substitutes for marine applications such as R-717, R-744, and R-290. 
According to TEAP, HFC/HFO blends with lower GWPs may also be suitable 
for some applications and system designs.\109\
---------------------------------------------------------------------------

    \109\ 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.
---------------------------------------------------------------------------

    What restrictions on the use of HFCs is EPA proposing for 
refrigerated transport--intermodal containers?
    EPA is proposing to restrict the use of HFCs and blends containing 
HFCs that have a GWP of 700 or greater for new refrigerated transport--
intermodal containers beginning January 1, 2025.
    For its considerations of availability of substitutes under 
subsection (i)(4)(B), EPA identified substitutes that are available in 
place of the substances that EPA is proposing to restrict. These 
include R-744 and R-450A. R-513A, R-513B, and R-456A are also potential 
candidates. According to one TEAP report, thousands of intermodal 
containers operating with R-744 were purchased or leased in 2016 and 
2017.\110\ Further, several manufacturers now offer intermodal 
containers using R-513A for new and retrofit 
applications.111 112 113 Additionally, EPA

[[Page 76785]]

identified one manufacturer that offers an intermodal container using 
R-744.\114\
---------------------------------------------------------------------------

    \110\ Ibid.
    \111\ Maersk Container Industry, Star Cool--Refrigerants. 
Available at: https://www.mcicontainers.com/products/star-cool/refrigerants.
    \112\ Carrier Transicold Offers Lower GWP Refrigerant Option for 
PrimeLINE[supreg] Container Units, Carrier Transicold, February 
2018. Available at: https://www.carrier.com/container-refrigeration/en/worldwide/news/news-article/carrier_transicold_offers_lower_gwp_refrigerant_option_for_primeline_container_units.html.
    \113\ Thermo King, Container Fresh and Frozen. Available at: 
https://www.thermoking.com/na/en/marine/refrigeration-units/container-fresh-and-frozen.html.
    \114\ Carrier Transicold ``NaturaLINE'' products. Additional 
information available at: https://www.carrier.com/container-refrigeration/en/worldwide/products/Container-Units/naturaline/.
---------------------------------------------------------------------------

    On which topics is EPA specifically requesting comment?
    EPA is requesting comment on proposing to establish a GWP limit of 
700 or greater for HFCs and blends containing HFCs used in new 
refrigerated transport--intermodal containers and proposing to restrict 
the use of R-404A, R-507, R-507A, R-428A, R-422C, R-434A, R-421B, R-
408A, R-422A, R-407B, R-402A, R-422D, R-421A, R-125/R-290/R-134a/R-600a 
(55/1/42.5/1.5), R-422B, R-424A, R-402B, GHG-X5, R-417A, R-438A, and R-
410B in marine and road applications. EPA is seeking comment on its 
subdivision of the refrigerant transport subsector and substitutes that 
may be used in each application. For consideration in a subsequent 
Agency action, EPA further seeks information on a GWP limit for marine 
and road applications in refrigerated transport.
g. Residential Refrigeration Systems
Background on Residential Refrigeration Systems
    Household refrigerators, freezers, and combination refrigerator/
freezers, grouped together in this preamble as ``residential 
refrigeration systems,'' are appliances intended primarily for 
residential use, although they may be used outside the home. The 
designs and refrigeration capacities of equipment vary widely. 
Household freezers only offer storage space at freezing temperatures, 
while household refrigerators only offer storage space at non-freezing 
temperatures. Products with both a refrigerator and freezer in a single 
unit are most common. For purposes of this proposed rule, other small 
refrigerated household appliances such as chilled kitchen drawers, wine 
coolers, and minifridges also fall within this subsector. Household 
refrigerators and freezers have all refrigeration components 
integrated, and for the smallest types, the refrigeration circuit is 
entirely brazed or welded. These systems are charged with refrigerant 
at the factory and typically require only an electricity supply to 
begin operation.
    CFC-12 was a commonly used refrigerant in household refrigerators 
and freezers prior to the Montreal Protocol and CAA restrictions on 
CFCs. The household refrigeration industry transitioned to HFC-134a and 
HCs. According to the TEAP's 2022 progress report, R-600a (isobutane) 
is used in 75 percent of all new units globally with HFC-134a used in 
the remaining 25 percent.
Information Contained in the Granted Petitions Concerning the Use of 
HFCs for Residential Refrigeration
    EPA granted two petitions, submitted by NRDC and CARB, that 
requested restrictions on the use of HFCs and blends containing HFCs 
for household refrigerators and freezers. NRDC and CARB requested that 
EPA restrict specific HFCs and blends containing HFCs used in new 
household refrigerators and freezers applications, replicated from SNAP 
Rule 21. The petitions subdivided household refrigerators and freezers 
into ``household refrigerators and freezers--non-compact or built-in 
appliances,'' ``household refrigerators and freezers--compact,'' and 
``household refrigerators and freezers--built in appliances'' but 
requested the same set of restrictions for each group. Specifically, 
the petitions requested that EPA restrict FOR12A, FOR12B, HFC-134a, 
KDD6, R-125/290/134a/600a (55.0/1.0/42.5/1.5), R-404A, R-407C, R-407F, 
R-410A, R-410B, R-417A, R-421A, R-421B, R-422A, R-422B, R-422C, R-422D, 
R-424A, R-426A, R-428A, R-434A, R-437A, R-438A, R-507A, RS-24 (2002 
formulation), RS-44 (2003 formulation), SP34E, and THR-03. NRDC's 
petition requested that these restrictions take effect on January 1, 
2023, for all subsectors; CARB did not request a specific compliance 
date. Additional information, including the relevant petitions, is 
available in the docket.
    What restrictions on the use of HFCs is EPA proposing for household 
refrigerators and freezers?
    EPA is proposing to restrict the use of HFCs and blends containing 
HFCs that have a GWP of 150 or greater for residential refrigeration 
systems beginning January 1, 2025. EPA is proposing this same date for 
the entire subsector, including all subdivisions differentiated in the 
petitions. This GWP limit would apply to new residential refrigeration 
systems.
    For its consideration of the availability of substitutes under 
subsection (i)(4)(B), EPA identified substitutes that are available in 
place of the substances that EPA is proposing to restrict. These 
include R-290 (GWP 3), R-600a (GWP <1), R-441A (GWP 3), and HFC-152a 
(GWP 124).
    According to the TEAP and its Refrigeration, Air Conditioning and 
Heat Pumps Technical Options Committee (RTOC), R-600a is the main 
energy-efficient and cost-competitive alternative used in domestic 
refrigeration as it is ``. . . the ideal refrigerant for domestic 
refrigeration products, giving roughly 5 percent higher efficiency than 
HFC-134a while at the same time reducing the noise level of the unit.'' 
\115\ This report also indicated that globally domestic refrigerators 
are predominantly using R-600a. For the U.S. market, RTOC reports 
``substantial progress is being made to convert from HFC-134a to R-600a 
with the market introduction of small refrigerators and freezer[s] that 
typically do not use electric defrost. During recent years, this 
conversion has progressed'' and noted ``[a] major U.S. manufacturer 
introduced auto-defrost refrigerators using R-600a refrigerant to the 
U.S. market as early as in 2010.''
---------------------------------------------------------------------------

    \115\ TEAP 2022 Progress Report (May 2022) and 2018 Quadrennial 
Assessment Report are available at: https://ozone.unep.org/science/assessment/teap; the 2018 Quadrennial Assessment Report includes 
sections for each of the TOCs: Flexible and Rigid Foams TOC, Halons 
TOC, Methyl Bromide TOC, Medical and Chemicals TOC, and 
Refrigeration, Air Conditioning and Heat Pumps TOC.
---------------------------------------------------------------------------

    Several states and other countries have banned the use of HFC-134a 
refrigerant in household refrigerator-freezers. The states/
commonwealths of California, Colorado, Delaware, Maine, Maryland, 
Massachusetts, New Jersey, New York, Rhode Island, Virginia, Vermont, 
and Washington all have legal restrictions on refrigerator-freezers 
beginning 2021 through 2023. The EU has prohibited refrigerants that 
contain HFCs with a GWP greater than 150 in household refrigerator-
freezers since January 1, 2015.\116\ Commercially available and 
technologically achievable lower-GWP technologies are already being 
sold in these markets to comply with regulatory requirements.
---------------------------------------------------------------------------

    \116\ For additional information, please refer to the EU 
legislation to control F-gases web page available at: https://ec.europa.eu/clima/eu-action/fluorinated-greenhouse-gases/eu-legislation-control-f-gases_en.
---------------------------------------------------------------------------

    On which topics is EPA specifically requesting comment?
    EPA is requesting comment on proposing to establish a GWP limit of 
150 or greater for HFCs and blends containing HFCs used in new 
residential refrigeration systems.
h. Chillers
Background on Chillers
    A chiller is a type of equipment using refrigerant to typically 
cool water or a brine solution that is then pumped to fan coil units or 
other air handlers to

[[Page 76786]]

cool the air that is supplied to the occupied spaces. The heat absorbed 
by the water or brine can then be used for heating purposes and/or can 
be transferred directly to the air (``air-cooled''), to a cooling tower 
or body of water (``water-cooled''), or through evaporative coolers 
(``evaporative-cooled''). A chiller or group of chillers are similarly 
used for district cooling where a chiller plant cools water or another 
fluid that is then pumped to multiple locations being served, such as 
several buildings within the same complex. Chillers may also be used to 
maintain operating temperatures in various types of buildings, for 
example, in data centers, server farms, and agricultural/food 
operations.
    Chillers are also used to cool process streams in industrial 
applications; in such instances, these are regulated as ``chillers for 
industrial process refrigeration'' as discussed here and not as 
``industrial process refrigeration'' as discussed in section VII.F.3.a 
of this preamble. Chillers are also used for comfort cooling of 
operators or climate control and protecting process equipment in 
industrial buildings, for example, in industrial processes when ambient 
temperatures could approach 200 [deg]F (93 [deg]C) and corrosive 
conditions could exist.
    There are several different types of mechanical, commercial comfort 
cooling AC systems known as chillers, which use refrigerants in a vapor 
compression cycle or by alternative technologies. Vapor compression 
chillers can be categorized by the type of compressor, including 
centrifugal, rotary, screw, scroll, and reciprocating compressors. The 
last four compressor types are also called positive displacement 
chillers.
    Centrifugal chillers utilize a centrifugal compressor in a vapor-
compression refrigeration cycle. They are typically used for commercial 
comfort AC although other uses exist. Centrifugal chillers tend to be 
used in larger buildings and can be found in office buildings, hotels, 
arenas, convention halls, airport terminals, and other occupied 
buildings.
    Positive displacement chillers utilize positive displacement 
compressors such as reciprocating, screw, scroll, or rotary types. 
Positive displacement chillers are applied in similar situations as 
centrifugal chillers, again primarily for commercial comfort AC, except 
that positive displacement chillers tend to be used for smaller 
capacity needs such as in mid- and low-rise buildings.
Information Contained in the Granted Petitions Concerning the Use of 
HFCs for Chillers
    EPA granted four petitions, submitted by CARB, EIA, NRDC, and IIAR, 
which requested restrictions on the use of HFCs for applications 
related to chillers for comfort cooling. EPA also granted five 
petitions which requested restrictions on the use of HFCs for chillers 
for IPR; these were submitted by AHRI, CARB, EIA, and IIAR (two 
petitions).
    For chillers used for comfort cooling, CARB and NRDC individually 
petitioned EPA to restrict specific substances in new centrifugal 
chillers and in new positive displacement chillers.\117\ In new 
centrifugal chillers, these substances are FOR12A, FOR12B, HFC-134a, 
HFC-227ea, HFC-236fa, HFC-245fa, R-125/134a/600a (28.1/70/1.9), R-125/
290/134a/600a (55.0/1.0/42.5/1.5), R-404A, R-407C, R-410A, R-410B, R-
417A, R-421A, R-422B, R-422C, R-422D, R-423A, R-424A, R-434A, R-438A, 
R-507A, RS-44 (2003 composition), and THR-03. In new positive 
displacement chillers, these are: FOR12A, FOR12B, HFC-134a, HFC-227ea, 
KDD6, R-125/134a/600a (28.1/70/1.9), R-125/290/134a/600a (55.0/1.0/
42.5/1.5), R-404A, R-407C, R-410A, R-410B, R-417A, R-421A, R-422B, R-
422C, R-422D, R-424A, R-434A, R-437A, R-438A, R-507A, RS-44 (2003 
composition), SP34E, and THR-03. NRDC's petition requested a compliance 
date of January 1, 2024.
---------------------------------------------------------------------------

    \117\ NRDC's petition, available in Docket ID No. EPA-HQ-OAR-
2021-0289, excludes those substances subject to narrowed use limits 
in the previously vacated SNAP Rule 21.
---------------------------------------------------------------------------

    EIA and IIAR separately requested that EPA establish a GWP limit of 
750 for new chillers used in the air conditioning sector with a 
compliance date of January 1, 2024.
    For new chillers used for IPR, AHRI, CARB, EIA, and IIAR (two 
petitions) requested that EPA establish GWP limits. AHRI requested for 
a GWP limit of 750 for all chillers but requested a compliance date of 
January 1, 2024, for ``chillers (designed for chilled fluid leaving 
temperature >+35 [deg]F)'' and a January 1, 2026, compliance date for 
other types of chillers.\118\ CARB and EIA separately petitioned EPA to 
establish a GWP limit of 750 for ``chillers for industrial process 
refrigeration (new, minimum evaporator temp designed for >35 [deg]F)''; 
a GWP limit of 1,500 for ``chillers for industrial process 
refrigeration (new, minimum evaporator temp designed for -10 [deg]F to 
35 [deg]F)''; and a GWP limit of 2,200 for ``chillers for industrial 
process refrigeration (new, minimum evaporator temp designed for -58 
[deg]F to -10 [deg]F).'' EIA's petition specifies a compliance date of 
January 1, 2024, for these chillers.
---------------------------------------------------------------------------

    \118\ See AHRI's petition received by EPA on August 19, 2021, 
available at www.regulations.gov, under Docket ID No. EPA-HQ-OAR-
2021-0289, for other chiller types identified in their petition.
---------------------------------------------------------------------------

    IIAR's first petition requested that EPA establish a GWP limit of 
150 for ``chillers for industrial process refrigeration (>50 lbs)'' 
with a compliance date of January 1, 2026. In a second petition, IIAR 
requested that EPA establish the same limit for ``chillers for 
industrial process refrigeration (>200 lbs),'' but a GWP limit of 300 
for ``chillers for industrial process refrigeration (<200 lbs).'' \119\
---------------------------------------------------------------------------

    \119\ EPA assumes that the ``50 lbs'' and ``200 lbs'' weight 
denoted in IIAR's petition refers to the refrigerant charge capacity 
of the system.
---------------------------------------------------------------------------

    Additional information, including the relevant petitions, is 
available in the docket.
    What restrictions on the use of HFCs is EPA proposing for 
chillers--comfort cooling?
    EPA is proposing to restrict the use of HFCs and blends containing 
HFCs that have a GWP of 700 or greater for chillers--comfort cooling 
beginning January 1, 2025. This proposed GWP limit would apply to new 
equipment for all compressor types of chillers--comfort cooling, i.e., 
centrifugal and positive displacement (including reciprocating, screw, 
scroll and rotary) chillers.
    For its consideration of the availability of substitutes under 
subsection (i)(4)(B), EPA identified several substitutes that are 
available in place of the substances that EPA is proposing to restrict. 
These include HCFO-1224yd(Z) (GWP 1), HCFO-1233zd(E) (GWP 3.7), HFO-
1234yf (GWP <1), HFO-1234ze(E) (GWP <1), R-514A (GWP 3), R-454C (GWP 
146), R-515B (GWP 287), R-454B (GWP 465), R-450A (GWP 601), R-513A (GWP 
630), and HFC-32 (GWP 675). Chillers for comfort cooling that use 
lower-GWP substitutes are currently available in both U.S. and 
international markets. Specifically, in the United States, scroll, 
other positive displacement, and centrifugal chillers using HCFO-
1233zd(E), HFO-1234ze(E), HFC-32, R-454B, R-513A, R-514A, and R-515B 
are commercially available. Under the SNAP program, EPA recently 
proposed to expand the list of substitutes listed as acceptable for 
chillers, and EPA anticipates these substitutes could be used as 
substitutes to higher-GWP HFCs and blends containing HFCs.\120\
---------------------------------------------------------------------------

    \120\ See proposed SNAP Rule 25. EPA has proposed listing R-454A 
(GWP 237), R-454B (GWP 465), R-452B (GWP 698), and HFC-32 (GWP 675) 
as acceptable for chillers--comfort cooling (87 FR 45508, July 28, 
2022).

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[[Page 76787]]

    What restrictions on the use of HFCs is EPA proposing for 
chillers--industrial process refrigeration?
    EPA is proposing to restrict the use of HFCs and blends containing 
HFCs that have a GWP of 700 or greater for chillers--industrial process 
refrigeration beginning January 1, 2025. This proposed GWP limit would 
apply to new equipment, except for new equipment where the temperature 
of the chilled fluid leaving the chiller (i.e., the supply temperature 
to the facility) is less than -58 [deg]F (-50 [deg]C). These lower 
temperature units are excluded from this proposal.
    For its consideration of the availability of substitutes under 
subsection (i)(4)(B), EPA identified substitutes that are available in 
place of the substances that EPA is proposing to restrict. These 
include R-717 (GWP 0), R-744 (GWP 1), R-1270 (GWP 2), R-290 (GWP 3), R-
600 (GWP 4), R-450A (GWP 601), and R-513A (GWP 630). Chillers for IPR 
that use lower-GWP substitutes are currently available in both U.S. and 
international markets. In the United States, chillers for IPR using R-
717, R-290, R-744, and R-513A are all available on the market. 
Internationally, equipment using R-1270 is available as well.
    The proposed GWP limit of 700 for chillers for IPR would enable the 
use of available substitutes to manage safety (in particular, 
flammability and toxicity), efficiency, capacity, temperature glide, 
and other performance factors. In evaluating safety in terms of 
availability of substitutes for chillers for IPR, EPA notes there may 
be situations in which the use of hydrocarbons or R-717 may be limited 
due to safety concerns around flammability and toxicity risks and 
therefore is proposing a GWP limit that expands the number of 
refrigerant options for this subsector.
    On which topics is EPA specifically requesting comment?
    EPA is requesting comment on proposing to establish a GWP limit of 
700 or greater for HFCs and blends containing HFCs used in new 
chillers--comfort cooling and chillers--IPR. For consideration in a 
subsequent rulemaking, EPA is seeking comment on a lower GWP limit to 
propose for both subsectors. EPA is also seeking comment on its 
subdivision of the chiller subsector.
i. Residential and Light Commercial Air Conditioning and Heat Pumps
Background on Residential and Light Commercial Air Conditioning and 
Heat Pumps
    The residential and light commercial air conditioning and heat 
pumps subsector includes equipment for cooling air in individual rooms, 
single-family homes, and small commercial buildings. Heat pumps are 
equipment types that heat, or have the option to either cool or heat, 
air for such locations. This subsector differs from commercial comfort 
air conditioning, which uses chillers that cool water that is then used 
to cool air throughout a large commercial building, such as an office 
building or hotel. The residential and light commercial air 
conditioning and heat pumps subsector includes both self-contained and 
split systems. Self-contained systems include some rooftop AC units 
(e.g., those ducted to supply conditioned air to multiple spaces) and 
many types of room ACs, including packaged terminal air conditioners 
(PTACs), packaged terminal heat pumps (PTHPs), some rooftop AC units, 
window AC units, portable room AC units, and wall-mounted self-
contained ACs, designed for use in a single room. Split systems include 
ducted and non-ducted mini-splits (which might also be designed for use 
in a single room), multi-splits and variable refrigerant flow (VRF) 
systems, and ducted unitary splits. Water-source and ground-source heat 
pumps often are packaged systems similar to the self-contained 
equipment described in this section above but could be applied with the 
condenser separated from the other components, similar to split 
systems. Examples of equipment for residential and light commercial AC 
and heat pumps include the following:
     Central air conditioners, also called unitary AC or 
unitary split systems. These systems include an outdoor unit with a 
condenser and a compressor, refrigerant lines, an indoor unit with an 
evaporator, and ducts to carry cooled air throughout a building. 
Central heat pumps are similar but offer the choice to either heat or 
cool the indoor space;
     Multi-split air conditioners and heat pumps. These systems 
include one or more outdoor unit(s) with a condenser and a compressor 
and multiple indoor units, each of which is connected to the outdoor 
unit by refrigerant lines. Non-ducted multi-splits provide cooled or 
heated air directly from the indoor unit rather than providing the air 
through ducts;
     Mini-split air conditioners and heat pumps. These systems 
include an outdoor unit with a condenser and a compressor and a single 
indoor unit that is connected to the outdoor unit by refrigerant lines. 
Non-ducted mini-splits provide cooled or heated air directly from the 
indoor unit rather than being carried through ducts;
     Rooftop AC units. These are units that combine the 
compressor, condenser, evaporator, and a fan for ventilation in a 
single package and may contain additional components for filtration and 
dehumidification. Most units also include dampers to control air 
intake. Rooftop AC units cool or heat outside air that is then 
delivered to the space directly through the ceiling or through a duct 
network. Rooftop AC units are common in small commercial buildings such 
as a single store in a mall with no indoor passageways between stores. 
They can also be set up in an array to provide cooling or heating 
throughout a larger commercial establishment such as a department store 
or supermarket;
     Window air conditioners. These are self-contained units 
that fit in a window with the condenser extending outside the window;
     PTACs and PTHPs. These are self-contained units that 
consist of a separate, un-encased combination of heating and cooling 
assemblies mounted through a wall. PTACs and PTHPs are intended for use 
in a single room and do not use ducts to carry cooled air or have 
external refrigerant lines. Typical applications include motel or 
dormitory air conditioners;
     Portable room air conditioners. These are self-contained 
units that are designed to be moved easily from room to room, usually 
having wheels. They may contain an exhaust hose that can be placed 
through a window or door to eject heat to the outside;
     Water-source heat pumps (WSHPs) and ground-source heat 
pumps (GSHPs). These are similar to unitary split systems except that 
heat is ejected (when in cooling mode) from the condenser through a 
second circuit rather than directly with outside air. The second 
circuit transfers the heat to the ground, groundwater, or another body 
of water such as a lake using water, or a brine if temperatures would 
risk freezing. Some systems can perform heating in a similar matter 
with the refrigerant circuit running in reverse; regardless, the term 
``heat pump'' is most often used; and
     Variable refrigerant flow/variable refrigerant volume 
systems. These are engineered direct expansion (DX) multi-split systems 
incorporating the following: a split system air-conditioner or heat 
pump incorporating a single

[[Page 76788]]

refrigerant circuit that is a common piping network to two or more 
indoor evaporators each capable of independent control, or compressor 
units. VRF systems contain a single module outdoor unit or combined 
module outdoor units with at least one variable capacity compressor 
that has three or more stages, with air or water as the heat source.
    All of these types of air-conditioning equipment would be subject 
to the restrictions on the use of HFCs under this proposal, if 
finalized.
    Common HFCs and blends containing HFCs used in mini-splits, multi-
splits, unitary splits, and VRF are R-410A and to a lesser extent, R-
407C, with GWPs of 2,090 and 1,770, respectively. Residential split 
systems are commonly shipped with a refrigerant charge that is then 
``balanced'' by the technician once the equipment is installed in its 
place of use. Larger commercial sized units often are not pre-charged 
with refrigerant but may contain a nitrogen ``holding charge'' for 
shipping.
    Other types of equipment, such as window air conditioners, PTACs, 
PTHPs, rooftop AC units, portable room air conditioners, and often 
GSHPs and WSHPs, are self-contained equipment with the condenser, 
compressor, evaporator, and tubing all within casing in a single unit. 
Such self-contained equipment is generally charged with refrigerant in 
a factory and later installed in its place of use. Common HFCs and 
blends containing HFCs used in such equipment include R-410A and R-
134a.
Information Contained in the Granted Petitions Concerning the Use of 
HFCs for Residential and Light Commercial Air Conditioning and Heat 
Pumps
    EPA granted petitions submitted by EIA, AHRI, CARB, and AHAM which 
requested restrictions on the use of HFCs in the residential and light 
commercial air conditioning and heat pump subsector. EIA's petition 
refers to this category as ``residential and non-residential''; AHRI 
refers to this category as ``residential and light commercial''; and 
CARB, in its recently finalized regulation, refers to the ``specific 
end-uses'' of ``room/wall/window air-conditioning equipment, PTACs, 
PTHPs, portable air-conditioning equipment,'' and ``other air-
conditioning (new) equipment, residential and nonresidential.'' \121\ 
AHAM did not refer to this category in general but rather specifically 
requested restrictions on the use of HFCs for room ACs with and without 
electric heat and a capacity of 25,000 Btu/hr or less and for portable 
ACs. For the purposes of this action, EPA is considering this equipment 
under the subsector ``residential and light commercial air conditioning 
and heat pumps.''
---------------------------------------------------------------------------

    \121\ California Code of Regulations, Prohibitions on Use of 
Certain Hydrofluorocarbons in Stationary Refrigeration, Stationary 
Air-conditioning, and Other End-uses. Available at: https://ww2.arb.ca.gov/sites/default/files/barcu/regact/2020/hfc2020/frorevised.pdf.
---------------------------------------------------------------------------

    The EIA, CARB, and AHRI petitions requested a GWP limit of 750 for 
HFCs used in this subsector with a compliance date of January 1, 2025, 
for most types of equipment and January 1, 2026, for VRF systems. CARB 
also requested a 750 GWP and compliance date of January 1, 2023, for 
window, room and portable ACs.
    AHAM requested a GWP limit of 750 for substances used in portable 
ACs and in the two types of room ACs included in their petition, with 
two separate compliance deadlines--January 1, 2023, for portable ACs 
and for room ACs without electric heat and a capacity of 25,000 Btu/hr 
or less and January 1, 2024, for room ACs with electric heat and a 
capacity of 25,000 Btu/hr or less. AHAM requested that room AC products 
with a capacity over 25,000 Btu/hr be excluded from restrictions, since 
these products require charge sizes that for flammable refrigerants 
would exceed the limits allowed in UL Standard 60335-2-40, are 
hermetically sealed, and comprise less than 2 percent of total 
shipments. Additional information, including the relevant petitions, is 
available in the docket.
    What restrictions on the use of HFCs is EPA proposing for 
residential and light commercial air-conditioning and heat pumps?
    EPA is proposing to restrict the use of HFCs and blends containing 
HFCs that have a GWP of 700 or greater for new residential and light 
commercial air-conditioning units and heat pumps beginning January 1, 
2025. For new VRF systems, EPA is proposing to restrict the use of HFCs 
and blends containing HFCs that have a GWP of 700 or greater beginning 
January 1, 2026.
    EPA is proposing to prohibit the use of regulated substances that 
have a GWP of 700 or greater, in part, because there are multiple 
lower-GWP substitutes available for use or will soon be available for 
use in residential and light commercial air-conditioning and heat pump 
applications. For example, R-452B, HFC-32, and R-454B have respective 
GWPs of approximately 698, 675, and 465, respectively, and are 
acceptable for use under the SNAP program. Considering the lack of 
refrigerants with a GWP between 700 and 750, EPA is proposing to base 
its GWP cutoff at 700 rather than at 750.
    EPA is proposing to prohibit HFCs and blends containing an HFC in 
new residential and light commercial AC and heat pumps by January 1, 
2025, and in new VRF systems by January 1, 2026, depending on the 
specific application. January 1, 2025, is roughly three and a half 
years after EPA's SNAP program issued listings allowing use of five 
lower-GWP refrigerants for residential and light commercial AC and heat 
pumps. Further, EPA anticipates that states will adopt the 2021 revised 
versions of the International Building Code and the Residential 
Building Code that allows for use of several lower-GWP refrigerants 
that exhibit lower flammability (2L flammability classification). EPA 
understands that by 2025 building codes may be updated or updates will 
be under consideration which is relevant for some but not all of the 
potential lower-GWP HFC refrigerants and other non-HFC substitutes. 
Several OEMs have also indicated that they intend to switch to using 
A2L refrigerants (e.g., R-454B, HFC-32) once relevant codes have been 
updated to allow their use.122 123
---------------------------------------------------------------------------

    \122\ Turpin, J., R-454B Emerges as a Replacement for R-410A, 
ACHR News, August 2020. Available at: https://www.achrnews.com/articles/143548-r-454b-emerges-as-a-replacement-for-r-410a.
    \123\ Turpin, J., Manufacturers Eye R-32 to Replace R-410A, ACHR 
News, August 2020. Available at: https://www.achrnews.com/articles/143422-manufacturers-eye-r-32-to-replace-r-410a.
---------------------------------------------------------------------------

    In the case of VRF systems, the petitioner AHRI suggested a later 
date of January 1, 2026. EPA agrees that more time is required for this 
subsector as these AC systems are larger and more complicated--this 
additional time is needed for designing, testing, and implementing the 
use of substitutes in these systems. EPA notes that California has 
already adopted these dates for a transition to lower-GWP refrigerants; 
thus, if EPA adopts the same dates for this subsector, this would allow 
for consistency nationwide.
    On which topics is EPA specifically requesting comment?
    EPA is requesting comment on proposing to establish a GWP limit of 
700 or greater for HFCs and blends containing HFCs used in residential 
and light commercial air-conditioning units and heat pumps and 
proposing a GWP limit of 700 for VRF systems. EPA is also seeking 
comment on the additional year proposed for VRF systems. Further, EPA 
is seeking comment on whether the Agency should provide an exception 
for room AC products with a capacity over 25,000 Btu/hr, or some other 
threshold, and any issues that these products may

[[Page 76789]]

face in using substitutes with GWPs less than 700.
j. Residential Dehumidifiers
Background on Residential Dehumidifiers
    Residential dehumidifiers are primarily used to remove water vapor 
from ambient air or directly from indoor air for comfort or material 
preservation purposes in the context of the home. While AC systems 
often combine cooling and dehumidification, residential dehumidifiers 
only serve the latter purpose and are often used in homes for comfort 
purposes. This equipment is self-contained and circulates air from a 
room, passes it through a cooling coil, and collects condensed water 
for disposal.
    Some dehumidifiers for residential or light commercial use are 
integrated with the space air-conditioning equipment, for instance via 
a separate bypass in the duct through which air is dehumidified, a 
dehumidifying heat pipe across the indoor coil, or other types of 
energy recovery devices that move sensible and/or latent heat between 
air streams (e.g., between incoming air and air vented to the outside). 
EPA includes this subsector under residential or light commercial AC 
system or heat pump.
    Similar to other subsectors under residential and light commercial 
AC and heat pumps, the majority of residential dehumidifiers introduced 
previously used R-410A to originally replace R-22.
Information Contained in the Granted Petitions Concerning the Use of 
HFCs for Residential Dehumidifiers
    EPA granted petitions submitted by CARB and AHAM which requested 
restrictions on the use of HFCs for residential dehumidifiers. The CARB 
petition requested a GWP limit of 750 as of January 1, 2023, for HFCs 
used in this subsector. The AHAM petition also requested a GWP limit of 
750 and requested a compliance date of two years after EPA approval of 
HFC-32 refrigerant for dehumidifiers. EPA understands this latter 
request as referring to the two years after the date that EPA finalizes 
an acceptable listing for HFC-32 in residential dehumidifiers under the 
SNAP program. Additional information, including the relevant petitions, 
is available in the docket.
    What restrictions on the use of HFCs is EPA proposing for 
residential dehumidifiers?
    EPA is proposing to restrict the use of HFCs and blends containing 
HFCs that have a GWP of 700 or greater for residential dehumidifiers 
beginning January 1, 2025. This proposed GWP limit would apply to new 
residential dehumidifiers.
    EPA is proposing to restrict the use of regulated substances that 
have a GWP greater than 700 because there are refrigerants listed as 
acceptable under the SNAP program, or refrigerants that have been 
proposed to be listed as acceptable, that have GWPs of 700 or lower. 
For example, R-513A with a GWP of 630 is listed as acceptable. Through 
a separate rulemaking under the SNAP program, EPA has also proposed to 
list as acceptable, subject to use conditions, refrigerants such as R-
452B, HFC-32, and R-454B, with respective GWPs of approximately 698, 
675, and 465 (87 FR 45508, July 28, 2022).
    EPA is proposing to restrict the use of regulated substances in 
residential dehumidifiers as of January 1, 2025. CARB petitioned EPA 
for January 1, 2023, as the date for restrictions of HFCs for this 
subsector; however, that date would not be allowable under subsection 
(i)(6) of the AIM Act. AHAM's petition requested that EPA establish a 
compliance date that is two years after the date that EPA would 
finalize an acceptable listing for HFC-32. As noted, EPA has issued the 
proposed rule and intends to finalize a rule in 2023. EPA is not tying 
the proposed date for compliance with a restriction under this 
subsection of the AIM Act for dehumidifiers to the timing for the 
issuance of a final rule under the SNAP program. However, EPA is 
proposing a date that is consistent with most other dates for 
restrictions in this proposed rule; EPA is proposing restrictions on 
HFCs in this subsector that would apply beginning January 1, 2025. That 
said, the Agency will keep abreast of the relevant SNAP rulemakings.
    On which topics is EPA specifically requesting comment?
    EPA is requesting comment on proposing to establish a GWP limit of 
700 or greater for HFCs and blends containing HFCs used in residential 
dehumidifiers.
k. Motor Vehicle Air Conditioning (MVAC)
Background on MVAC
    MVAC systems cool the passenger compartment of light-duty (LD) 
vehicles, heavy-duty (HD) vehicles (e.g., large pick-ups, delivery 
trucks, and semi-trucks), nonroad (also called off-road) vehicles, 
buses, and passenger rail vehicles. Systems used to cool passenger 
compartments in LD, HD, and nonroad vehicles are typically charged 
during vehicle manufacture and the main components are connected by 
flexible refrigerant lines. The vehicle types that are addressed in 
this action include passenger cars (including electric and hybrid 
passenger cars) and light-duty trucks,\124\ referred to jointly in this 
action as LD vehicles, limited types of HD vehicles (i.e., medium-duty 
passenger vehicles (MDPVs),\125\ HD pickup trucks, and complete HD 
vans), and certain nonroad vehicles (i.e., agricultural tractors 
greater than 40 HP; self-propelled agricultural machinery; compact 
equipment; construction, forestry, and mining equipment; and commercial 
utility vehicles (UTVs)).
---------------------------------------------------------------------------

    \124\ Defined at 40 CFR 86.1803-01.
    \125\ Ibid.
---------------------------------------------------------------------------

    The vehicle types covered in this proposed rule include LD, MD, and 
HD hybrids, plug-in hybrid electric vehicles (PHEVs), electric vehicles 
(EVs), and fuel cell vehicles (FCVs).\126\ Hybrids, PHEVs and EVs are 
currently a small portion of the fleet but are expected to grow 
rapidly, as most manufacturers have made recent public announcements 
committing to billions of dollars in research towards electrification, 
and in some cases, manufacturers have announced specific targets for 
entirely phasing out internal combustion 
engines.127 128 129 130 For example, more than 300,000 EVs, 
PHEVs, and FCVs were produced in the 2020 model year (MY).\131\ Of 
those vehicles, about 78 percent were EVs, 22 percent were PHEVs, less 
than 1 percent were FCVs. As more EVs are introduced into the market, 
use of heat pumps will

[[Page 76790]]

increase to redirect heat into vehicle cabins and control temperatures. 
This may lead to the development of more energy efficient, alternative 
refrigerants and technologies (e.g., dual-loop systems) for EV MVAC 
systems and heat pumps in electrified vehicles, similar to SAE 
International's current, industry-led Cooperative Research Program 
assessing alternative refrigerants for heat pumps.132 133
---------------------------------------------------------------------------

    \126\ Hybrid vehicles store some propulsion energy in a battery, 
and often recapture braking energy, allowing for a smaller, more 
efficiently operated engine. Plug-in hybrids operate similarly to 
hybrids but their batteries can be charged from an external source 
of electricity, and generally have a longer electric only operating 
range. Electric vehicles operate only on energy stored in a battery 
that is charged from an external source of electricity, and rely 
exclusively on electric motors for propulsion instead of an internal 
combustion engine. Fuel cell vehicles use a fuel cell stack to 
create electricity from an onboard fuel source (usually hydrogen), 
which then powers an electric motor or motors to propel the vehicle.
    \127\ EPA, 2021. The 2021 EPA Automotive Trends Report. 
Available at: https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=P1013L1O.pdf.
    \128\ U.S. Department of Energy. Model Year 2022 Alternative 
Fuel and Advanced Technology Vehicles. Available at: https://afdc.energy.gov/vehicles/search/download.pdf?year=2022.
    \129\ U.S. Department of Energy. Electric Vehicle Basics. 
Available at: https://afdc.energy.gov/files/u/publication/electric_vehicles.pdf.
    \130\ Preston, B., Bartlett, J. ``Automakers Are Adding Electric 
Vehicles to Their Lineups. Here's What's Coming.'' Consumer Reports. 
Available at: https://www.consumerreports.org/hybrids-evs/why-electric-cars-may-soon-flood-the-usmarket-a9006292675/.
    \131\ EPA, 2021. The 2021 EPA Automotive Trends Report. 
Available at: https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=P1013L1O.pdf.
    \132\ Volume 1: Progress Report, Technology and Economic 
Assessment Panel, UNEP, September 2021. Available at: https://ozone.unep.org/system/files/documents/TEAP-2021-Progress-report.pdf.
    \133\ SAE International, 2022. Thermal Management Refrigerant 
Cooperative Research Program.
---------------------------------------------------------------------------

Vehicle Weight Classification

                                                                             Table 5--Vehicle Weight Classification
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     Light-duty                                                          Heavy-duty vehicles
                                                      vehicles     -----------------------------------------------------------------------------------------------------------------------------
                      Class                      ------------------
                                                        1-2a            2b & MDPV             3                 4                 5                 6                 7                 8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
GVWR (lb).......................................           <8,500      8,501-10,000     10,001-14,000     14,001-16,000     16,001-19,500     19,501-26,000     26,001-33,000           >33,000
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    Vehicle weight classes and categories are used by the Federal 
Highway Administration, the U.S. Census Bureau, and EPA. The vehicle 
weight classes are defined by the Federal Highway Administration and 
are used consistently throughout the industry. These classes, 1 through 
8, are based on gross vehicle weight rating (GVWR), the maximum weight 
of the vehicle, as specified by the manufacturer. GVWR includes total 
vehicle weight plus fluids, passengers, and cargo. EPA defines vehicle 
categories, also by GVWR, for the purposes of emissions and fuel 
economy certification. As illustrated in Table 5, EPA classifies 
vehicles as LD (GVWR <8,500 pounds) or HD (GVWR >8,501 pounds). MDPVs, 
HD pickup trucks, and complete HD vans are Class 2b and 3 vehicles with 
GVWRs between 8,501 and 14,000 pounds. MDPVs are classified as HD 
vehicles based on their GVWR, but due to their similarities to LD 
vehicles they are subject to the GHG emissions standards established 
for LD trucks.
    The HD vehicle types addressed in this action (i.e., MDPVs, HD 
pickup trucks, and HD vans) are technologically similar to LD vehicles 
and most are manufactured by companies with major LD markets in the 
United States and in a similar manner to LD vehicles.\134\ Ford, 
General Motors, and Stellantis (formerly Fiat Chrysler Automobiles) 
produce approximately 100 percent of HD pickup trucks and approximately 
95 percent of HD vans, with Mercedes-Benz (formerly Daimler) and Nissan 
producing the remaining approximately five percent of HD vans.\135\ In 
many cases, these types of HD vehicles are versions of their LD 
counterparts.136 137 The primary difference between HD 
pickup trucks and vans and their LD counterpart vehicles is that HD 
pickups and vans are occupational or work vehicles that are designed 
for much higher towing and payload capabilities than are LD pickups and 
vans.
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    \134\ This is more broadly true for HD pickup trucks than vans 
because every manufacturer of HD pickup trucks also makes LD pickup 
trucks, while only some HD van manufacturers also make LD vans. (80 
FR 40148, July 13, 2015).
    \135\ EPA, 2016. Regulatory Impact Analysis: Proposed Rulemaking 
for Greenhouse Gas Emissions and Fuel Efficiency Standards for 
Medium- and Heavy-Duty Engines and Vehicles-Phase 2. August 2016. 
Available at: https://nepis.epa.gov/Exe/ZyPDF.cgi/P100P7NS.PDF?Dockey=P100P7NS.PDF.
    \136\ ICCT, 2015. International Council on Clean Transportation: 
Regulatory Considerations for Advancing Commercial Pickup and Van 
Efficiency Technology in the United States. Available at: https://theicct.org/publication/regulatory-considerations-for-advancing-commercial-pickup-and-van-efficiency-technology-in-the-united-states/.
    \137\ U.S. News, 2022. What Makes a Pickup Truck Heavy Duty? 
Available at: https://cars.usnews.com/cars-trucks/what-makes-trucks-heavy-duty.
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    Complete vehicles are sold by vehicle manufacturers to end-users 
with no secondary manufacturer making substantial modifications prior 
to registration and use. Incomplete vehicles are sold by vehicle 
manufacturers to secondary manufacturers without the primary load-
carrying device or container attached. With regard to HD pickup trucks 
and vans, 90 percent are sold as complete vehicles while only 10 
percent are sold as incomplete (80 FR 40331, July 13, 2015). Of the 10 
percent of HD pickups and vans that are sold as incomplete vehicles to 
secondary manufacturers, about half are HD pickup trucks and half are 
HD vans.
    Examples of modifications by secondary manufacturers to HD pickup 
trucks are installing a flatbed platform or tool storage bins. EPA is 
not aware of any equipment added by a secondary manufacturer to an 
incomplete HD pickup truck that would result in a secondary 
manufacturer modifying or adjusting the already installed MVAC system 
to provide cooling capacity.
Nonroad Vehicles
    Nonroad vehicles can be grouped into several categories (e.g., 
agriculture, construction, recreation, and many other purposes).\138\ 
The nonroad vehicles addressed in this action are:
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    \138\ EPA, 2021. Basic Information about the Emission Standards 
Reference Guide for On-road and Nonroad Vehicles and Engines. 
Available online at https://www.epa.gov/emission-standards-reference-guide/basic-information-about-emission-standards-reference-guide-road and at https://nepis.epa.gov/Exe/ZyPDF.cgi/P100K5U2.PDF?Dockey=P100K5U2.PDF.
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     Agricultural tractors greater than 40 HP (including two-
wheel drive, mechanical front-wheel drive, four-wheel drive, and track 
tractors) that are used for various agricultural applications such as 
farm work, planting, landscaping, and loading; 139 140
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    \139\ Wagner, 2021. May 24, 2021, email from John Wagner of the 
Association of Equipment Manufacturers to EPA. Available in the 
docket.
    \140\ AEM, 2021. Appendix A: Machine Forms as Classified by AEM 
Membership. Available in the docket.
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     Self-propelled agricultural machinery (including combines, 
grain and corn harvesters, sprayers, windrowers, and floaters) that are 
primarily used for harvesting, fertilizer, and herbicide operations; 
\141\
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    \141\ Ibid.
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     Compact equipment (including mini excavators, turf mowers, 
skid-steer loaders, and tractors less than 40 HP) that are primarily 
used for agricultural operations and residential, commercial, and 
agricultural landscaping; \142\
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    \142\ Ibid.
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     Construction, forestry, and mining equipment (including 
excavators, bulldozers, wheel loaders, feller bunchers, log skidders, 
road graders, articulated trucks, sub-surface machines, horizontal 
directional drill, trenchers, and tracked crawlers) that are primarily 
used to excavate surface and subsurface materials during construction, 
landscaping, and road maintenance and building; \143\ and
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    \143\ Ibid.
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     Commercial UTVs that are primarily used for ranching, 
farming, hunting/fishing, construction,

[[Page 76791]]

landscaping, property maintenance, railroad maintenance, forestry, and 
mining.\144\
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    \144\ Ibid.
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    These nonroad vehicles are almost exclusively used and operated by 
professionals (e.g., agricultural owners or skilled employees/
operators) and vary by size, weight, use, and/or horsepower.\145\ For 
example, commercial UTVs typically weigh between 1,200 and 2,400 
pounds, while agricultural tractors >40 HP typically weigh between 
39,000 and 50,000 pounds.146 147 MVAC systems in these 
nonroad vehicles can have charge sizes ranging from 650 grams (23 
ounces) to 3,400 grams (120 ounces) depending on the manufacturer and 
cab size, compared to a range of 390 grams (14 ounces) to 1,600 grams 
(56 ounces) for MVAC systems in light and medium duty passenger 
vehicles, HD pickups, and complete HD vans.\148\ Additionally, unlike 
onroad passenger vehicles, for example, nonroad vehicles are limited to 
non-highway terrain (e.g., fields, construction sites, forests, and 
mines), have more robust components, are operated at low working 
speeds, and there are typically a limited number of vehicles in the 
same location.
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    \145\ EPA, 2021. Basic Information about the Emission Standards 
Reference Guide for On-road and Nonroad Vehicles and Engines. 
Available online at https://www.epa.gov/emission-standards-reference-guide/basic-information-about-emission-standards-reference-guide-road and in the docket.
    \146\ Heavy-duty vehicles are often subdivided by vehicle weight 
classifications, as defined by the vehicle's gross vehicle weight 
rating (GVWR), which is a measure of the combined curb (empty) 
weight and cargo carrying capacity of the truck. Heavy-duty vehicles 
have GVWRs above 8,500. See https://www.epa.gov/emission-standards-reference-guide/vehicle-weight-classifications-emission-standards-reference-guide.
    \147\ Wagner, 2021. May 24, 2021, email from John Wagner of the 
Association of Equipment Manufacturers to EPA. Available in the 
docket.
    \148\ ICF, 2016. Technical Support Document for Acceptability 
Listing of HFO-1234yf for Motor Vehicle Air Conditioning in Limited 
Heavy-Duty Applications. Available in the public docket.
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Information Contained in the Granted Petitions Concerning the Use of 
HFCs for MVAC
    EPA granted two petitions which requested restrictions on the use 
of HFCs for applications related to MVAC. The first was submitted by 
NRDC, the Colorado Department of Public Health & Environment, and the 
Institute for Governance and Sustainable Development and requested that 
EPA restrict the use of HFC-134a in LD vehicles beginning January 1, 
2023. The second petition was submitted by CARB requesting that EPA 
restrict the use of HFC-134a in new LD vehicles in MY2021. Additional 
information, including the relevant petitions, is available in the 
docket.
    What restrictions on the use of HFCs is EPA proposing for MVAC?
    EPA is proposing to restrict the use of HFCs and blends containing 
HFCs that have a GWP of 150 or greater for MVAC systems in newly 
manufactured LD vehicles starting in MY 2025, as of one year after 
publication of a final rule, including vehicles manufactured 
exclusively for export. EPA is also proposing to restrict the use of 
HFCs and blends containing HFCs that have a GWP of 150 or greater for 
MVAC systems in limited types of HD vehicles in Class 2b-3 (i.e., newly 
manufactured MDPVs, HD pickup trucks, and complete HD vans), and 
certain nonroad vehicles (i.e., agricultural tractors greater than 40 
HP; self-propelled agricultural machinery; compact equipment; 
construction, forestry, and mining equipment; and commercial UTVs) 
starting in MY 2026, including vehicles manufactured exclusively for 
export.
    For LD vehicles, EPA is proposing to restrict the use of HFCs and 
blends containing HFCs starting in MY 2025, as of one year after 
publication of a final rule, because three technologically achievable 
substitutes, R-744, HFO-1234yf, and HFC-152a, meet the proposed GWP 
limit of 150. HFO-1234yf is a chemical substance identified as 2,3,3,3-
tetrafluoroprop-1-ene (CAS Reg. No. 754-12-1) and has a GWP of 
<1.149 150 HFC-152a and R-744 have GWPs of 124 and 1, 
respectively. Under SNAP, HFO-1234yf is listed as acceptable, subject 
to use conditions, for new LD vehicles, MDPV, HD pick-up trucks, 
complete HD vans, and certain types on nonroad vehicles.\151\ R-744 and 
HFC-152a are listed under SNAP as acceptable, subject to use 
conditions, in new LD and HD vehicles in the United States; 
152 153 however, EPA is not aware of the use or development 
of HFC-152a or R-744, in any LD or HD vehicle in the United States. Use 
conditions for these refrigerants under the SNAP program require 
labeling and the use of unique fittings. The use conditions also 
mitigate flammability and toxicity risks.
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    \149\ Nielsen et al., 2007. Atmospheric chemistry of CF3CF=CH2: 
Kinetics and mechanisms of gas-phase reactions with Cl atoms, OH 
radicals, and O3. Chemical Physics Letters 439, 18-22. Available at: 
www.lexissecuritiesmosaic.com/gateway/FedReg/network_OJN_174_CF3CF=CH2.pdf.
    \150\ Papadimitriou et al., 2007. CF3CF=CH2 and (Z)-CF3CF=CHF: 
temperature dependent OH rate coefficients and global warming 
potentials. Phys. Chem. Chem. Phys., 2007, Vol. 9, p. 1-13. 
Available at: http://pubs.rsc.org/en/Content/ArticleLanding/2008/CP/b714382f.
    \151\ HFO-1234yf is listed as acceptable, subject to use 
conditions, for new LD passenger cars and trucks (76 FR 17488, March 
29, 2011), new MDPVs, HD pickup trucks, and complete HD vans (81 FR 
86778, December 1, 2016), and new nonroad vehicles (86 FR 26276, May 
4, 2022) at 40 CFR part 82, subpart G.
    \152\ CO2 is listed as acceptable, subject to use 
conditions, for new vehicles only at 40 CFR part 82, subpart G; 
final rule published June 6, 2012 (77 FR 33315).
    \153\ HFC-152a is listed as acceptable, subject to use 
conditions, for new vehicles only at 40 CFR part 82, subpart G; 
final rule published June 12, 2008 (73 FR 33304).
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    HFO-1234yf has gained significant market share in LD vehicles in 
the United States since its introduction in MY 2013.\154\ According to 
the 2021 EPA Automotive Trends Report, approximately 85 percent of MY 
2020 LD vehicles sold used HFO-1234yf and some manufacturers have 
implemented HFO-1234yf across their entire vehicle brands.\155\ EPA 
considers MY 2025 the date by which automobile manufacturers would be 
able to redesign the MVAC system of the remaining 15 percent of LD 
vehicle models for use with a lower-GWP refrigerant, consistent with 
the use conditions.
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    \154\ ``Model year'' is defined at 40 CFR 85.2302 and ``means 
the manufacturer's annual production period (as determined under 40 
CFR 85.2304) which includes January 1 of such calendar year, 
provided, that if the manufacturer has no annual production period, 
the term ``model year'' shall mean the calendar year.''
    \155\ EPA, 2021. The 2021 EPA Automotive Trends Report. 
Available at: https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=P1013L1O.pdf.
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    Additionally, lower-GWP refrigerants, such as HFO-1234yf, are 
predominantly being used in new LD vehicles in Europe and Japan.\156\ 
For example, the proposed GWP limit of 150 for LD vehicles harmonizes 
with the EU's Mobile AC Directive 2006/40/EC,\157\ which is aimed at 
reducing emissions of HFC-134a from LD MVAC systems. The directive sets 
a GWP limit of 150 for refrigerants used in MVAC systems installed in 
any LD vehicle sold in the European market after 2017, regardless of 
its model year. This proposed rule would harmonize with the Directive 
and allow adequate lead time for manufacturers to transition to lower 
GWP refrigerants. Similar to the Directive, EPA is proposing to limit 
the GWP of refrigerants used in LD MVACs rather than specifying the use 
of a particular refrigerant or system.
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    \156\ Volume 1: Progress Report, Technology and Economic 
Assessment Panel, UNEP, September 2021. Available at: https://ozone.unep.org/system/files/documents/TEAP-2021-Progress-report.pdf.
    \157\ European Commission, 2006. Directive 2006/40/EC of the 
European Parliament and of the Council of 17 May 2006 relating to 
emissions from air-conditioning systems in motor vehicles and 
amending. Available at: https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32006L0040.
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    EPA previously considered the MY by which manufacturers of LD 
vehicles would be able to transition from use of

[[Page 76792]]

HFC-134a for LD vehicles in support of the July 2015 SNAP final rule 
(80 FR 42870, July 20, 2015) and greenhouse gas and fuel economy 
standards for MY 2017-2025 LD vehicles issued jointly by EPA and 
National Highway Traffic Safety Administration on August 28, 2012.\158\ 
For this action, EPA is proposing that restrictions on the use of HFCs 
and blends containing HFCs that have a GWP of 150 or greater for LD 
vehicles, including vehicles manufactured exclusively for export, start 
in MY 2025 and become effective one year after publication of a final 
rule. This is because a manufacturer's annual production period or 
model year could be as early as January 1 of the previous calendar 
year. Therefore, MY 2025 vehicles could be manufactured as early as 
January 1, 2024, which may be earlier than the effective date of a 
final rule. EPA is seeking comment on whether the Agency should propose 
restrictions for LD vehicles with a calendar year compliance date 
(e.g., January 1, 2025) rather than a model year.
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    \158\ 77 FR 62624, 62807-810 (October 15, 2012); see also 75 FR 
25325, 25431-32 (May 7, 2010) (discussing the same issue for MY 
2012-2016 light-duty vehicles).
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    For MDPVs, HD pickup trucks, complete HD vans, and certain nonroad 
vehicles addressed in this action, EPA is proposing to restrict the use 
of HFCs and blends containing HFCs starting MY 2026, because at least 
three technologically achievable substitutes, R-744, HFO-1234yf, and 
HFC-152a, meet the proposed GWP limit of 150. EPA is also seeking 
comment on whether the Agency should propose restrictions for MDPVs, HD 
trucks, complete HD vans, and certain nonroad vehicles with a calendar 
year compliance date (e.g., January 1, 2026) rather than a model year.
    HFO-1234yf was listed as acceptable, subject to use conditions, in 
2016 under SNAP for new MDPVs, HD pickup trucks, complete HD vans and 
is in use or under various stages of development for these vehicle 
types. Because of the similarities in the MVAC systems used for these 
vehicles and LD vehicles, EPA considers January 1, 2026, the date by 
which it will be feasible for manufacturers to safely, but 
expeditiously, transition MVAC systems for these vehicle types.
    EPA is proposing that the GWP limit of 150 or greater for MVAC 
systems apply to vehicles covered in this proposed rule that are 
manufactured exclusively for export. In the July 2015 SNAP final rule 
(80 FR 42870, July 20, 2015), based on comments received on the 
proposed rule (79 FR 46126, August 6, 2014), EPA established a narrowed 
use limit for MVAC systems in LD vehicles exported to countries that 
did not have infrastructure to service vehicles containing the 
alternatives found to pose less overall risk. The narrowed use limit 
allows for the use of HFC-134 in MVACs until MY 2026. EPA understands 
that certain countries to which vehicles are exported do not, and may 
not for some period of time, have in place the infrastructure for 
servicing MVAC systems with lower-GWP, flammable refrigerants (e.g., 
HFO-1234yf and HFC-152a). EPA seeks comment regarding the technical 
feasibility of servicing MY 2027 and later model vehicles manufactured 
for export with lower-GWP refrigerants (e.g., HFO-1234yf).
    On which topics is EPA specifically requesting comment?
    EPA is requesting comment on proposing to establish a GWP limit of 
150 or greater for HFCs and blends containing HFCs used in MVAC systems 
in newly manufactured LD vehicles starting in MY 2025, as of one year 
after publication of a final rule, including vehicles manufactured 
exclusively for export. EPA is also requesting comment on the proposal 
to restrict the use of HFCs and blends containing HFCs that have a GWP 
of 150 or greater for MVAC systems in limited types of HD vehicles in 
Class 2b-3 and certain nonroad vehicles starting in MY 2026, including 
vehicles manufactured exclusively for export. Additionally, EPA is 
requesting comment on the proposal to establish GWP limit restrictions 
for MVAC based on calendar year rather than model year.
4. Foam Blowing
Background
    Foams are plastics (such as phenolic, polyisocyanurate, polyolefin, 
polyurethane, or polystyrene) that are manufactured using blowing 
agents to create bubbles or cells in the material's structure. The foam 
plastics manufacturing industries, the markets they serve, and the 
blowing agents used are extremely varied. The range of uses includes 
building materials, appliance insulation, cushioning, furniture, 
packaging materials, containers, flotation devices, filler, sound 
proofing, and shoe soles. Some foams are rigid with closed cells that 
still contain the foam blowing agent, which can contribute to the 
foam's ability to insulate. Other foams are open-celled, with the foam 
blowing agent escaping at the time the foam is blown, as for flexible 
foams.
    Historically, a variety of foam blowing agents have been used for 
these applications. CFCs and HCFCs were typically used. In the early 
1990s, ahead of the CAA and Montreal Protocol CFC phaseout, regulations 
implementing section 610 of the CAA included bans on the sale or 
distribution of foam products blown with CFCs and HCFCs, with an 
exception only for HCFCs used for foam insulation products as defined 
at 40 CFR 82.62. Blowing agents which remain in a liquid state at room 
temperature have been used more commonly in polyisocyanurate, 
polyurethane and phenolic foams, such as CFC-11, CFC-113, HCFC-141b, 
HFC-245fa, and HFC-365mfc. Blowing agents that are gases at room 
temperature have more commonly been used in polyolefin and polystyrene 
foams, such as CFC-12, HCFC-22, HCFC-142b, HFC-134a, and HFC-152a.
    The foam blowing subsectors addressed in this action include:
     Flexible polyurethane includes open-cell foam in 
furniture, bedding, chair cushions, and shoe soles;
     Integral skin polyurethane includes open-cell foam used in 
car steering wheels, dashboards, upholstery, and shoe soles;
     Phenolic insulation board and bunstock includes insulation 
for roofing and walls;
     Polyolefin (e.g., polyethylene, polypropylene) includes 
foam sheets and tubes;
     Polystyrene--extruded boardstock and billet includes 
closed cell insulation for roofing, walls, floors, and pipes;
     Polystyrene--extruded sheet includes closed cell foam for 
packaging and buoyancy or flotation;
     Rigid polyurethane--appliance foam includes insulation 
foam in domestic refrigerators and freezers and hot water heaters;
     Rigid polyurethane--slabstock and other includes 
insulation for panels and pipes, taxidermy foam, and miscellaneous uses 
of rigid polyurethane foam;
     Rigid polyurethane--commercial refrigeration includes 
insulation for vending machines, coolers, commercial refrigeration 
equipment, pipes, shipping containers for perishable goods, and 
refrigerated transport vehicles; \159\
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    \159\ As described in greater detail in section VII.C of this 
preamble above, EPA is proposing an exemption for certain 
applications as long as they are receiving application-specific 
allowances under subsection (e)(4)(B) of the Act, including 
structural composite preformed polyurethane foam for trailer use.
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     Rigid polyurethane--sandwich panels include insulation 
panels for walls and metal doors;
     Rigid polyurethane and polyisocyanurate laminated 
boardstock

[[Page 76793]]

includes laminated board insulation for roofing and walls;
     Rigid polyurethane--marine flotation foam includes 
buoyancy or flotation foams; \160\ and
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    \160\ As described in greater detail in section VII.C above, EPA 
is proposing an exemption for certain applications as long as they 
are receiving application-specific allowances under subsection 
(e)(4)(B) of the Act, including structural composite preformed 
polyurethane foam for marine use.
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     Spray foam is applied in situ and includes insulation for 
building envelopes, roofing, walls, doors, and other construction uses, 
as well as foam for building breakers for pipelines. Spray foam is 
broken down further into rigid polyurethane high-pressure two-
component, rigid polyurethane low-pressure two-component, and rigid 
polyurethane one-component foam sealants. These three applications vary 
in the types of systems used to apply them (one component or two-
component, high pressure or low pressure), who uses such systems 
(contractors using personal protective equipment, or consumers), and 
how much is applied (large-scale applications within walls or on roofs 
of a residence or filling in cracks, leaks and gaps in a residence). 
For further information on those three applications, see the preamble 
to SNAP Rule 21 (81 FR 86778 at 86846-86847, December 1, 2016).
Information Contained in the Granted Petitions Concerning the Use of 
HFCs for Foam Blowing
    EPA granted five petitions which requested restrictions on the use 
of HFCs for foam blowing. Petitions were submitted separately by NRDC 
and by CARB, both requesting that EPA restrict certain HFCs in:
     Rigid Polyurethane (PU) and Polyisocyanurate Laminated 
Boardstock. Specifically, HFC-134a, HFC-245fa, HFC-365mfc and blends 
thereof;
     Rigid Polyurethane--Slabstock and Other. Specifically, 
HFC-134a, HFC-245fa, HFC-365mfc and blends thereof; Formacel TI, and 
Formacel Z-6;
     Rigid Polyurethane--Appliance Foam. Specifically, HFC-
134a, HFC-245fa, HFC-365mfc and blends thereof; Formacel TI, and 
Formacel Z-6;
     Rigid Polyurethane--Commercial Refrigeration and Sandwich 
Panels. Specifically, HFC-134a, HFC-245fa, HFC-365mfc, and blends 
thereof; Formacel TI, and Formacel Z-6;
     Rigid Polyurethane--Marine Flotation Foam. Specifically, 
HFC-134a, HFC-245fa, HFC-365mfc and blends thereof; Formacel TI, and 
Formacel Z-6;
     Rigid PU--high-pressure two-component spray foam. 
Specifically, HFC-134a, HFC-245fa, and blends thereof; blends of HFC-
365mfc with at least four percent HFC-245fa, and commercial blends of 
HFC-365mfc with 7 to 13 percent HFC-227ea and the remainder HFC-365mfc; 
and Formacel TI.
     Rigid PU--one-component foam sealants. Specifically, HFC-
134a, HFC-245fa, and blends thereof; blends of HFC-365mfc with at least 
four percent HFC-245fa, and commercial blends of HFC-365mfc with 7 to 
13 percent HFC-227ea and the remainder HFC-365mfc; and Formacel TI;
     Flexible Polyurethane. Specifically, HFC-134a, HFC-245fa, 
HFC-365mfc, and blends thereof;
     Integral Skin Polyurethane. Specifically, HFC-134a, HFC-
245fa, HFC-365mfc, and blends thereof; Formacel TI, and Formacel Z-6;
     Polystyrene--Extruded Sheet. Specifically, HFC-134a, HFC-
245fa, HFC-365mfc, and blends thereof; Formacel TI, and Formacel Z-6;
     Polystyrene--Extruded Boardstock and Billet. Specifically, 
HFC-134a, HFC-245fa, HFC-365mfc, and blends thereof; Formacel TI, 
Formacel B, and Formacel Z-6;
     Polyolefin. Specifically, HFC-134a, HFC-245fa, HFC-365mfc, 
and blends thereof; Formacel TI, Formacel Z-6;
     Phenolic Insulation Board and Bunstock. Specifically, HFC-
143a, HFC-134a, HFC-245fa, HFC-365mfc, and blends thereof; and
     Rigid PU--low-pressure two-component spray foam. 
Specifically, HFC-134a, HFC-245fa, and blends thereof; blends of HFC-
365mfc with at least four percent HFC-245fa, and commercial blends of 
HFC-365mfc with 7 to 13 percent HFC-227ea and the remainder HFC-365mfc; 
and Formacel TI.
    NRDC requested a January 1, 2023, compliance date for most foam 
blowing subsectors listed, except for ``military or space- and 
aeronautics-related applications'' in rigid PU--high-pressure two-
component spray foam and rigid PU--low-pressure two-component spray 
foam. For military or space- and aeronautics-related applications in 
these two subsectors, NRDC requested a January 1, 2025, compliance 
date. For all foam blowing subsectors, CARB requested that EPA ``not 
select later compliance dates than those provided in [SNAP] Rules 20 
and 21.''
    DuPont Performance Building Solutions submitted two petitions, one 
requesting that EPA restrict the use of HFC-134a in polystyrene--
extruded boardstock and billet by January 1, 2023, and the second 
requesting that EPA restrict the use of HFCs \161\ in rigid 
polyurethane--low-pressure two-component spray foam by January 1, 2022. 
The final petition for foams was submitted by the American Chemistry 
Council's Center for the Polyurethanes Industry (CPI), requesting that 
EPA restrict HFC use for the polyurethane industry.\162\
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    \161\ DuPont's second petition requests EPA to ``. . . reinstate 
SNAP Rule 21 with regard to Rigid Polyurethane Low-pressure Two-
component Spray Foam (2K-LP SPF) end-use. . .''.
    \162\ CPI requested that to reinstate the restrictions on the 
use of HFC foam blowing agents in the polyurethanes industry that 
were originally promulgated in EPA's Significant New Alternatives 
Policy (SNAP) Rules 20 and 21 effective January 1, 2023.
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    Additional information, including the relevant petitions, is 
available in the docket.
    What restrictions on the use of HFCs is EPA proposing for foam 
blowing?
    EPA is proposing to restrict the use of HFCs and blends containing 
HFCs with a GWP of 150 or greater for new phenolic insulation board and 
bunstock; polystyrene--extruded boardstock and billet; rigid 
polyurethane--appliance foam; rigid polyurethane--slabstock and other; 
rigid polyurethane--commercial refrigeration; rigid polyurethane--
sandwich panels; rigid polyurethane--marine flotation foam; and spray 
foam (rigid polyurethane high-pressure two-component, rigid 
polyurethane low-pressure two component, rigid polyurethane one-
component foam sealants) beginning January 1, 2025. For new flexible 
polyurethane; integral skin polyurethane; polyolefin; polystyrene--
extruded sheet; and rigid polyurethane and polyisocyanurate laminated 
boardstock, EPA is proposing to fully restrict the use of HFCs and 
blends containing HFCs beginning January 1, 2025. This proposal would 
in effect prohibit the use of regulated substances for these foam 
subsectors.
    HFCs have been widely used as blowing agents in rigid polyurethane 
insulation foam (e.g., appliance, commercial refrigeration, sandwich 
panels, and spray) and polystyrene--extruded boardstock and billet in 
the United States since the phaseout of ODS blowing agents such as 
HCFC-141b and HCFC-142b, particularly where insulation value and 
flammability have been of greater concern. Over the past ten years, the 
number of available substitutes, both fluorinated and non-fluorinated, 
has increased, and the variety of uses for acceptable blowing agents 
has also expanded. These include carbon dioxide (GWP 0), light 
saturated

[[Page 76794]]

hydrocarbons with three to six carbons (GWP <1), methyl formate (GWP 
11), HCFO-1233zd(E) (GWP 3.7), and HFO-1336mzz(Z) (GWP 2).
    The opportunity to use HCs, CO2, and water in the 1990s 
for a range of foam blowing applications in the United States has 
allowed many foam blowing subsectors and applications to transition 
directly from ODS to available substitutes, thus reducing the 
subsectors that rely on HCFCs or HFCs. HCs have been a lower-GWP and 
cost-effective substitute available for large parts of the foam sector, 
particularly in polystyrene--extruded sheet, rigid polyurethane--
slabstock, rigid polyurethane and polyisocyanurate laminated 
boardstock, phenolic insulation board and bunstock, and polyolefin. HCs 
also are used in most of the other subsectors, but less extensively 
than in these five subsectors. In EPA's consideration of safety of 
available substitutes, flammability of foam blowing agents, including 
HCs, can be a concern, particularly for rigid polyurethane--two-
component spray foam applications. Water is used broadly as a blowing 
agent in flexible polyurethane foam. In addition, other non-fluorinated 
compounds such as methyl formate and methylal are being used as blowing 
agents, alone or in combination with other compounds, particularly for 
use as a blowing agent in polyurethane foams.
    EPA is proposing to exclude space vehicles, as defined in 40 CFR 
84.3, from the proposed use restriction for spray foams. Such equipment 
faces unparalleled and highly demanding operating conditions and 
requires long lead times for their operation to be certified. This 
approach is consistent with EPA's CAA regulations where space vehicles 
were either exempted or given additional time to transition to 
substitute foam blowing agents.
    A number of new fluorinated chemicals with lower GWPs have been 
introduced as foam blowing agents during the past several years. Many 
end users have indicated interest in these newer foam blowing agents, 
often to improve energy efficiency of the foam products manufactured 
with the foam blowing agent. For example, EPA's SNAP program has listed 
HCFO-1233zd(E), HFO-1234ze(E), HFO-1336mzz(E), and HFO-1336mzz(Z) as 
acceptable. These newer substitutes, which do not raise the 
flammability concerns of HCs, may prove appropriate for subsectors 
where highly flammable blowing agents raise safety concerns. The 
process and timing for retooling facilities that use the blowing agents 
or that incorporate the foam product into another product will vary 
depending on the substitute selected. Manufacturing facilities such as 
household refrigerator manufacturers have already been transitioning to 
lower-GWP substitutes for foam blowing. Production volumes for some of 
these newer substitutes are expanding rapidly to keep pace with growing 
commercial demands.
    For some types of foam that have historically used gaseous blowing 
agents, HFC-152a or blends containing HFC-152a may be useful foam 
blowing agents with lower GWP than other HFCs. For example, the GWP of 
HFC-152a is 124, compared to 794 for HFC-365mfc, 1,030 for HFC-245fa, 
1,430 for HFC-134a, and 4,470 for HFC-143a. Some manufacturers of 
polystyrene--extruded boardstock and billet have recently starting 
using blowing agents that are blends of HFC-152a and non-HFCs such as 
CO2, HFO-1234ze(E), and/or HFO-1336mzz(Z), in order to 
transition away from using HFC-134a.
    For the flexible polyurethane; integral skin polyurethane; 
polyolefin; polystyrene--extruded sheet; and rigid polyurethane and 
polyisocyanurate laminated boardstock subsectors, EPA understands that 
there is little or no use of HFCs. As noted, water and HCs are commonly 
used available substitutes used as blowing agents for flexible 
polyurethane, polyolefin, polystyrene--extruded sheet, and rigid 
polyurethane and polyisocyanurate laminated boardstock.
    On which topics is EPA specifically requesting comment?
    EPA is requesting comment on proposing to establish a GWP limit of 
150 or greater for HFCs and blends containing HFCs for new phenolic 
insulation board and bunstock; polystyrene--extruded boardstock and 
billet; rigid polyurethane--appliance foam; rigid polyurethane--
slabstock and other; rigid polyurethane--commercial refrigeration; 
rigid polyurethane--sandwich panels; rigid polyurethane--marine 
flotation foam; and spray foam (rigid polyurethane high-pressure two-
component, rigid polyurethane low-pressure two component, rigid 
polyurethane one-component foam sealants). EPA is also requesting 
comment on proposing to fully restrict HFCs and blends containing HFCs 
for new flexible polyurethane; integral skin polyurethane; polyolefin; 
polystyrene--extruded sheet; and rigid polyurethane and 
polyisocyanurate laminated boardstock.
5. Aerosols
Background on Aerosols
    Aerosols use liquefied or compressed gas to propel active 
ingredients in liquid, paste, or powder form in precise spray patterns 
with controlled droplet sizes and amounts and many also contain a 
solvent. The propellant, typically a gas at atmospheric pressure but a 
pressurized liquid in the product canister, is emitted during use. In 
addition to propellants, some aerosols also contain a solvent. In some 
cleaning applications, the propellant disperses the solvent; in other 
applications, the solvent product and propellant solution are evenly 
mixed to improve shelf-life and product performance, such as by 
preventing dripping and ensuring uniform film thickness for spray 
paints. Consumer aerosols include products for personal and household 
use, such as hairspray, household cleaning products, and keyboard 
dusters. Technical aerosols are specialized products used solely in 
commercial and industrial applications, such as industrial spray paints 
and document preservation sprays.
    In this proposed rule and as discussed previously in section VII.C 
of this preamble, EPA is proposing an exemption for certain 
applications as long as they are receiving application-specific 
allowances under subsection (e)(4)(B) of the Act, including for certain 
aerosol applications. Subsection (e)(4)(B)(iv) of the AIM Act lists six 
applications which are to ``receive the full quantity of allowances 
necessary, based on projected, current, and historical trends'' for the 
five-year period after enactment of the AIM Act. Under the implementing 
regulations at 40 CFR 84.13, the following applications which typically 
use aerosols are currently eligible to receive application-specific 
allowances for calendar years through 2025: (1) for a propellant in 
metered-dose inhalers, (2) in the manufacture of defense sprays, and 
(3) for mission-critical military end uses. Therefore, EPA is not 
proposing to apply the requirements under this rulemaking to these uses 
of HFCs in these applications at this time, since they are currently 
receiving application-specific allowances under 40 CFR 84.13.
Information Contained in the Granted Petitions Concerning the Use of 
HFCs for Aerosols
    EPA granted three petitions, submitted by NRDC, CARB, and HCPA with 
the National Aerosol Association (HCPA/NAA), which requested 
restrictions on the use of HFCs for applications related to aerosol

[[Page 76795]]

propellants. NRDC submitted a petition under subsection (i) of the AIM 
Act that requested EPA to replicate the provisions contained in SNAP 
Rules 20 and 21. Petitioners requested a start date for the 
restrictions of January 1, 2023.
    HCPA/NAA submitted a petition that requested EPA prohibit the use 
of specific HFCs as aerosol propellants starting January 1, 2023; 
however, the petitioners also requested that EPA except the use of HFCs 
in certain types of aerosols (e.g., cleaning products for removal of 
grease, flux and other soils from electrical equipment).
    CARB submitted a petition that requested EPA regulations should not 
limit States' ability to further limit or phase out the use of HFCs in 
their jurisdictions.
    Additional information, including the relevant petitions, is 
available in the docket.
    What restrictions on the use of HFCs is EPA proposing for aerosols?
    EPA is proposing to restrict the use of HFCs and blends containing 
HFCs in new aerosols that have a GWP of 150 or greater beginning 
January 1, 2025. Available aerosol propellants that meet this proposed 
GWP limit include HFC-152a (GWP 124), HFO-1234ze(E) (GWP <1), dimethyl 
ether (GWP 1), saturated light hydrocarbons (GWP 3-10), and 
CO2 (GWP 1). Manufacturers have transitioned to HFC-152a, 
saturated light hydrocarbons, HFOs, compressed gases, and oxygenated 
organic compounds (e.g., dimethyl ether).\163\ Available aerosol 
solvents that meet this GWP include HCFO-1233yd(Z) (GWP<1), HFO-
1336mzz(Z) (GWP 2), methoxytridecafluoroheptene isomers (MPHE) (GWP 
2.5), HCFO-1233zd(E) (GWP 3.7), HFE-569sf2 (GWP 59), and petroleum 
hydrocarbons.
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    \163\ Transitioning to Low-GWP Alternatives in Aerosols, EPA, 
December 2016. Available at: https://www.epa.gov/sites/default/files/2016-12/documents/transitioning_to_low-gwp_alternatives_in_aerosols.pdf.
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    On which topics is EPA specifically requesting comment?
    EPA is requesting comment on proposing to establish a GWP limit of 
150 for HFCs and blends containing HFCs used in aerosol products.
    In SNAP Rule 20, EPA allowed the use of HFC-134a for certain 
aerosol propellant applications because of technical limitations, such 
as a requirement for non-flammability and/or a specific vapor pressure. 
EPA has received information that indicates some of these applications 
may still require use of HFC-134a as a propellant; however, from our 
own research, we are aware of possible substitutes with lower 
GWPs.\164\ \165\ Nevertheless, in this proposal, EPA is not explicitly 
proposing exceptions. We are taking comment on whether and why we 
should include a list of exceptions for propellants in this rulemaking 
that matches some or all of those included in SNAP Rule 20, namely:
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    \164\ See email from HCPA to EPA, dated August 8, 2022.
    \165\ See Evaluation of Continued Need for HFC-134a in Specific 
Aerosol Propellant Applications memo in the docket.
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     Cleaning products for removal of grease, flux and other 
soils from electrical equipment or electronics;
     Refrigerant flushes;
     Products for sensitivity testing of smoke detectors;
     Lubricants and freeze sprays for electrical equipment or 
electronics;
     Sprays for aircraft maintenance;
     Sprays containing corrosion preventive compounds used in 
the maintenance of aircraft, electrical equipment or electronics, or 
military equipment;
     Pesticides for use near electrical wires or in aircraft, 
in total release insecticide foggers, or in certified organic use 
pesticides for which EPA has specifically disallowed all other lower-
GWP propellants;
     Mold release agents and mold cleaners;
     Lubricants and cleaners for spinnerettes for synthetic 
fabrics;
     Duster sprays specifically for removal of dust from 
photographic negatives, semiconductor chips, specimens under electron 
microscopes, and energized electrical equipment;
     Adhesives and sealants in large canisters;
     Document preservation sprays;
     Wound care sprays;
     Topical coolant sprays for pain relief; and
     Products for removing bandage adhesives from skin.
    We also are interested in comments related to whether these uses 
that were excepted under SNAP Rule 20 have transitioned or can 
transition to a lower GWP propellant. If a commenter suggests including 
an exception for use of HFC-134a in an aerosol application, we would 
also be interested in any supporting data and information to explain 
why the exception is needed.
    EPA is aware that HFC-43-10mee (GWP 1,640) and HFC-245fa (GWP 
1,030) may still be in use as aerosol solvents, particularly in niche 
applications. We are taking comment on whether this or other HFCs are 
currently being used as aerosol solvents. If so, we ask that commenters 
include specific information on the application and what would be 
needed to transition to a lower GWP solvent.

G. For what additional sectors or subsectors is EPA requesting advance 
information on the use of HFCs?

Heat Pump Water Heaters
    Heat pump water heaters (HPWH) are an energy-efficient alternative 
to electric-resistance and combustion water heaters. Instead of heating 
water by running electrical current through heating elements, or via 
fossil fuel combustion, HPWHs use a vapor-compression refrigerant cycle 
(the same basic mechanism used by standard heat pumps, air 
conditioners, and refrigerators) to transfer heat from the surrounding 
air to heat water.\166\
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    \166\ Heat Pump Water Heaters, U.S. Department of Energy. 
Information available at: https://www.energy.gov/energysaver/heat-pump-water-heaters.
---------------------------------------------------------------------------

    HPWHs are sold in the residential and commercial markets. The 
integral design comprises a condenser combined with the storage tank in 
one unit, where the heating components are installed at the top of the 
storage tank. A split-system design differs from the integral design in 
that it has a separate heat pump and storage tank, which can be 
connected via refrigerant lines or water lines. Most HPWHs historically 
and today contain the refrigerant HFC-134a. Some larger, commercial 
models use R-410A for the low temperature cycle and HFC-134a at the 
high temperature cycle.\167\
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    \167\ Kleefkens, Onno M.Sc., Heat Pump Centre, Refrigerants for 
Heat Pump Water Heaters, December 2019. Available at: https://heatpumpingtechnologies.org/annex46/wp-content/uploads/sites/53/2020/10/hpt-an46-04-task-1-refrigerants-for-heat-pump-water-heaters-1.pdf.
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    The Agency is seeking information on current uses of HFCs in HPWHs 
to inform potential future regulatory decisions. EPA is not proposing 
any regulatory requirements with respect to HPWHs in this rulemaking. 
EPA is specifically requesting information in response to the following 
questions:
    1. What are the main reasons for the continued use of HFCs in HPWHs 
and for which applications?
    2. What work is underway to identify suitable lower-GWP 
alternatives?
    3. What would be the timeline for use of alternatives?

VIII. What are the proposed enforcement and compliance provisions?

    EPA seeks to deter, identify, and penalize the import, manufacture, 
sale, purchase, or distribution of products and other activities that 
would be prohibited under the proposed

[[Page 76796]]

restrictions on the use of HFCs. Consistent with EPA's explanation in 
the Allocation Framework Rule, based on prior experience with the ODS 
phaseout in the United States, and global experiences transitioning 
from ODS and HFCs, EPA anticipates there will be attempts to introduce 
prohibited products in the United States.
    Proposed tools for encouraging compliance and aiding enforcement 
include requirements to label regulated products, to report the import 
or manufacture of products using HFCs, a prohibition on import or 
manufacture of regulated products above the allowable GWP level or 
using a proposed restricted substance, and recordkeeping in support of 
the reporting requirement. EPA seeks to ensure a level playing field 
for the regulated community and discourage the illegal manufacture, 
import, distribution, purchase, or sale of prohibited products.

A. What is EPA proposing for labeling requirements?

    EPA is proposing to require information on labels for regulated 
products in the sectors and subsectors covered by this proposed rule. 
Knowing what HFC or blend containing an HFC is used in a product is a 
necessary step to ensuring that the use of HFCs complies with the 
restrictions to be established through this rulemaking for the 
respective sectors and subsectors.
    EPA is proposing on-product labeling for all regulated products in 
the covered sectors and subsectors of this proposed rule. For products 
that use HFCs or blends containing an HFC, EPA is proposing that the 
label include (1) the HFC or blend containing an HFC used in the 
product; (2) the GWP of that HFC or blend containing an HFC, labeled as 
``global warming potential''; and (3) the date of manufacture, or at a 
minimum, the four-digit year.
    For products that are intended for use with HFCs or blends 
containing an HFC, EPA is proposing that the unfilled products be 
labeled to indicate (1) the HFC(s) or blend(s) containing an HFC 
intended for use in the product; and (2) the GWP of the HFC(s) or 
blend(s) containing an HFC, labeled as ``global warming potential.'' 
EPA further proposes that at the time of first charge the label must be 
marked or a new label must be added to indicate: (1) the HFC or blend 
containing an HFC used in the product, (2) the GWP of that HFC or blend 
containing an HFC, labeled as ``global warming potential;'' and (3) the 
date of first charge, or at a minimum, the four-digit year. The new 
label would only need to include (1) and (2) if they are different from 
what is listed on the first label or if the first label indicates that 
the product is intended for use with multiple HFCs or blends containing 
HFCs. If a new label is added, it must be affixed near but not covering 
the original label. EPA proposes this structure as it would allow 
purchasers to determine whether the product is compliant and discourage 
the manufacture, import, distribution, purchase, or sale of products 
that are intended for use with prohibited HFCs and would allow the 
Agency to assess compliance of the products both before and after they 
are charged. EPA requests comment on whether field-charged products 
should be required to be labeled prior to being filled with an HFC or 
if the label should only be required once the product contains an HFC 
or blend containing an HFC. EPA also requests comment on how to best 
structure labeling requirements for products that are intended for use 
with multiple regulated substances and if requiring that each regulated 
substance that could be used be included on the label is useful.
    Additionally, EPA is proposing that labels for products in the 
following subsectors indicate whether the full charge is greater than, 
equal to, or less than 200 pounds: (1) IPR, (2) retail food 
refrigeration--supermarket systems, (3) retail food refrigeration--
remote condensing units, and (4) cold storage warehouses. The GWP limit 
varies based on that charge size threshold in these subsectors, thus 
EPA is proposing a statement about the charge size be included in the 
label for the purposes of ensuring compliance.
    EPA notes that other markets including the EU and United Kingdom 
require labels with similar information requirements for many products 
containing HFCs.\168\ \169\ These labeling requirements that are 
already in place in other markets indicate that the requirements are 
feasible for the regulated entities.
---------------------------------------------------------------------------

    \168\ European Union Law. 2014. Regulation (EU) No 517/2014 of 
the European Parliament and of the Council of 16 April 2014 on 
fluorinated greenhouse gases and repealing Regulation (EC) No 842/
2006 Text with EEA relevance. Available at: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2014.150.01.0195.01.ENG.
    \169\ Labelling F-gas equipment you produce, import or install, 
UK Environment Agency, August 2019. Available at: https://www.gov.uk/guidance/labelling-f-gas-equipment-you-produce-import-or-install.
---------------------------------------------------------------------------

    EPA is proposing that the permanent label must be formatted as 
follows: (1) in English; (2) durable and printed or otherwise labeled 
on, or affixed to, the external surface of the product; (3) readily 
visible and legible; (4) able to withstand open weather exposure 
without a substantial reduction in visibility or legibility; and (5) 
displayed on a background of contrasting color. Additionally, EPA is 
proposing to require that labels or a description of the required 
information be clearly included in product information, either in the 
text description or photo of the product, for products being sold 
electronically through eCommerce platforms. Regulated products would 
need to have the required information clearly visible in either the 
photos of the product or the description of the item. If a regulated 
product is contained within a box or other overpack that reaches the 
ultimate consumer, EPA is proposing that the exterior packaging must 
also contain a label consistent with the formatting requirements 
described previously. For imported products, labels must be visible and 
readily available for inspection.
    EPA requests comment regarding whether on-product labels may not be 
practicable for certain products. If such products are identified, 
commenters should provide information on alternative labeling methods 
that EPA should consider in those instances. One such alternative could 
be including the required information on packaging materials with the 
product (e.g., tag, pamphlet, or box containing the product). This 
associated packaging would need to be present with the product at the 
point of sale and import to fulfill the labeling requirement.
    Another alternative could be to allow the information to be 
accessed by an on-product QR code instead of a traditional label. In 
order to fulfill the labeling requirement, the QR code would need to 
direct the consumer to a website that readily shows the required 
information and meets the requirements of the on-product label. EPA 
believes that products using a QR code also include adjacent text to 
indicate the purpose of the QR code, stating that the QR code contains 
HFC information. A QR code may be useful for products where there is 
limited space for on-product labels or the accompanying packaging. A 
nonfunctional or unreadable QR code would not fulfill the labeling 
requirement and would be treated as a missing QR code. For products 
being sold through eCommerce, the QR code would not be sufficient on 
its own and the product description on the eCommerce site would also 
have to contain the required information. The QR codes would not be 
issued by EPA and are separate from the QR codes required under the 
Allocation Framework Rule at Sec.  84.23. EPA requests comment on if QR 
codes should be allowed to fulfill the labeling

[[Page 76797]]

requirement for all products, only products where traditional labels 
are not practicable, or not at all and what benefits or challenges 
allowing QR codes may pose. EPA also requests comment on alternative 
methods that may be used to mark or otherwise label the product itself 
that would be sufficient to convey the required information (for 
example, color coding to identify the use of a regulated substance or 
date codes to identify date of manufacture).
    EPA is proposing that as of the applicable compliance date, no 
person may sell or distribute, offer for sale or distribution, make 
available to sell or distribute, or import in the sectors and 
subsectors of the proposed rule a regulated product that contains, was 
manufactured with, or is intended for use with HFCs that lacks a label 
consistent with the requirements of this section. EPA proposes that 
regulated products lacking a label are presumed to use a regulated 
substance or a blend containing a regulated substance with a global 
warming potential equal to or greater than the limit proposed in this 
rule.
    EPA is requesting comment on whether there should be a standardized 
process to correct missing or inaccurate labels on products, and if so, 
what that should be. A potential option EPA is considering would be to 
allow any entity within the distribution chain to label or re-label a 
product within their possession if they find it to be missing a label 
or mislabeled. EPA is also seeking comment on whether entities seeking 
to correct a labeling error should be required to report the initial 
labeling violation to the Agency. A corrected label would need to 
comply with all relevant labeling requirements. Further, EPA would 
anticipate that the entity doing the relabeling would conduct due 
diligence to ensure that the new label is accurate and meets the 
proposed labeling requirements in this rule. Allowing relabeling could 
reduce the number of products that may be discarded due to missing or 
incorrect labels, as they would not need to be returned to the importer 
or manufacturer. However, it may not be a cost that a distributor of a 
product is willing to bear, given the responsibility to correctly label 
products is with the manufacturer or importer.
    The proposed labeling provisions are intended to support compliance 
with the prohibitions on the use of high-GWP HFCs in certain sectors 
and subsectors. Requiring a manufacturer or importer to affirmatively 
and publicly state through the label that the HFC being used and its 
GWP reinforces their compliance with the limits to be established 
through this rulemaking. Accurate labeling information would also 
support compliance with the limits by allowing distributers, as well as 
competitors and the general public, to assess whether a product uses a 
compliant HFC. The proposed labeling and packaging requirements may 
also ease inspection by EPA and U.S. Customs and Border Protection 
(CBP) as appropriate, and facilitate efforts to prevent the import or 
manufacture of noncompliant products. Clearly and visibly identifying 
the HFC or blend containing an HFC used in the product would provide 
one mechanism for inspectors to quickly identify noncompliant products 
and/or identify products for further inspection.
    As a secondary consideration, the information on the labels and 
packaging materials could provide consumers with information about 
whether a product uses an HFC or blend containing an HFC and its GWP. 
This information may alter consumer purchasing choices and could 
increase market pressure for the transition away from products that use 
HFCs.
    EPA recognizes that in this rulemaking the proposed definition of 
``products'' includes components. EPA is considering how to best 
address components that are intended for use with HFCs but do not 
contain a regulated substance when shipped--i.e., is not a regulated 
product when shipped--and whether instead of requiring each individual 
component be labeled, the Agency should allow labeling of a subset of 
the components of a single system to fulfill the requirement once the 
full and proper amount of HFC or blend containing an HFC is added. For 
example, for a supermarket refrigeration system, EPA requests comment 
on whether each individual case within the same subsector and using the 
same regulated substance in that system should be labeled or if 
labeling a subset of the cases and/or other components of the system in 
accordance with the proposed requirements would be sufficient. EPA 
seeks comment on the benefits and challenges of allowing labeling a 
subset of components to fulfill the requirement, along with specific 
sectors or subsectors where this option should be considered. EPA also 
seeks comment on how it can provide clarity on which components are 
covered and which are not.
    EPA seeks to design this proposal in a way that would minimize 
compliance burden on the regulated community while maintaining the 
necessary components for identifying and deterring noncompliance. 
First, EPA recognizes that there may be products for which on-product 
labels are not practicable and is requesting comment on alternative 
labeling methods EPA should consider that would provide similar 
enforceability. For products that are identified with a valid rationale 
for why on-products labels cannot be used, EPA is considering whether 
to allow the required information to be included in packaging materials 
or available through an on-product QR code.
    Second, existing labels that meet the proposed requirements and 
include the required information would be sufficient. EPA recognizes 
that certain information is already provided on products through 
existing UL labels, nameplates, or other labels on the product or 
packaging with the product at the time of import and sale. For 
instance, a nameplate or certification sticker on a pre-charged air 
conditioner might already contain the date of manufacture, the 
refrigerant, and the charge size, and could be modified by including 
the GWP of the refrigerant. Likewise, the label on a household 
refrigerator-freezer could be modified to include the additional 
information needed for the refrigerant and also the information 
regarding the foam insulation. EPA requests comment on the proposal to 
allow existing labels that contain required information to satisfy the 
labeling requirements or if EPA should instead consider requiring a 
separate standardized label containing all the required information.
    EPA recognizes that products exist within the sectors and 
subsectors covered by this proposed rule that do not contain or use any 
regulated substance. EPA is considering developing a standardized 
voluntary label for these products that would clearly state that the 
product does not use HFCs. This voluntary label could assist compliance 
with the proposed prohibitions by indicating that the product does not 
use an HFC or blend containing an HFC. This would eliminate the 
ambiguity associated with an unlabeled product in a controlled sector 
or subsector (i.e., the product does not use an HFC and does not need 
to be labeled; or the product uses an HFC and is mislabeled). This 
voluntary label would also provide consumers with additional 
information regarding HFCs and allow them to more easily differentiate 
between products based on whether they use HFCs. Similar voluntary 
labeling continues to be included on aerosol products to indicate they 
do not use CFCs despite a prohibition on such use since 1994. (See 
82.64(c)). EPA requests comment on the value of a voluntary label that

[[Page 76798]]

affirmatively states that the product does not use HFCs and any 
benefits or challenges that such a label may pose.
    EPA is considering whether to establish an administrative process 
to address products that have been found to be mislabeled or lacking a 
proper label. In the Allocation Framework Rule, EPA included a system 
of administrative consequences as one method to deter illegal 
production or import of HFCs. Under that program, EPA may adjust an 
entity's production or consumption allowances by retiring, revoking, or 
withholding them depending on the circumstances. EPA provides notice to 
a company of an impending administrative consequence, and then the 
company has an opportunity to respond prior to the Agency taking any 
final action. The administrative consequences do not supplant or 
replace any enforcement action that may be available for violations of 
EPA's regulations or the AIM Act. Instead, such consequences are in 
addition to any applicable enforcement action.
    EPA's intent in the proposed rule for establishing labeling 
provisions is to support the enforcement of prohibitions on the use of 
certain HFCs and blends containing HFCs that exceed the proposed GWP 
limits or are otherwise prohibited. Not providing a label or 
mislabeling a product hampers EPA's ability to enforce those 
prohibitions. The administrative process considered here would have the 
purpose of quickly correcting mislabeled or unlabeled products. EPA is 
considering the option of creating a website that would provide a list 
of entities that manufacture, import, export, sell, distribute, or 
offer for sale or distribution products that have been found to be 
mislabeled or lacking a proper label. Transparency is a significant 
means of ensuring compliance, as discussed in detail in the Allocation 
Framework Rule (see 86 FR 55191, October 5, 2021). In this scenario, 
EPA would employ similar processes for notification and response 
finalized in 40 CFR subpart A. This would include notifying the entity 
of the Agency's finding that a regulated product or products is 
mislabeled or lacking a label, and of our intent to list them as not 
meeting the subsection (i) labeling provisions. The Agency would 
provide thirty days from the initial notification for the entity to 
respond, after which the entity would be publicly listed on the EPA's 
website. The entity could be listed on the EPA website for a minimum 
set time frame, such as a year. To be removed from the website, EPA is 
considering whether the entity would be required to submit a 
demonstration that the labeling issue has been resolved along with 
measures that the entity has put in place to reduce the likelihood of 
future labeling problems.
    EPA requests comment on whether an administrative process as 
described above would support compliance with these provisions. Also, 
the Agency is interested in whether there are additional or alternative 
actions that the Agency could consider to aid compliance with the 
subsection (i) labeling provisions, including whether entities that are 
listed on EPA's website as lacking proper labels could be fully 
restricted from using (e.g., manufacture, import, sale, export, offer 
for sale or distribution) any regulated substance for a set period of 
time. Additionally, if the listed entity receives production or 
consumption allowances, the Agency requests comment on whether EPA 
could use its authority under subsection (e) to revoke or reduce the 
entity's next allocation as a consequence for mislabeling products 
under subsection (i).

B. What potential auditing and third-party testing programs is EPA 
seeking advance information on?

    EPA is asking for advance information on a variety of options for 
third-party testing and auditing that it is considering pursuing in a 
future rulemaking to strengthen compliance with requirements that may 
be established in this rulemaking and potential future rulemakings 
under subsection (i). Such auditing and third-party testing programs 
would facilitate the verification that products and equipment imported, 
manufactured, sold, or distributed within the United States contain 
allowable HFCs. Audits would also serve the important function of 
testing to ensure that products and equipment use allowable HFCs and 
that labels identifying the HFCs are accurate. Audits would assist with 
finding illegal products and removing them from the United States 
market and help deter noncompliance, incentivize future compliance, and 
ensure that companies that are complying with statutory and regulatory 
obligations are not put at a competitive disadvantage. EPA is 
considering a multifaceted approach for auditing and is soliciting 
advance information on the aspects of auditing programs discussed in 
the following sections, including the merits of the options discussed.
    Numerous economic studies have found that third-party auditing 
improves company and individual compliance with the 
law.170 171 172  EPA has used third-party auditing to 
improve regulatory compliance in rules, including the Renewable Fuel 
Standard program.\173\ As noted in a Renewable Fuel Standard 
rulemaking, there is expert consensus that well-implemented third-party 
auditing is a good use of limited enforcement and oversight 
resources.\174\ Independent and objective audits are a valuable tool to 
improve compliance among all companies, not just those with covert 
malicious intent to be inaccurate or unfair in their auditing or 
reporting. EPA is seeking advance information on the advantages and 
disadvantages of developing an auditing program to ensure compliance 
and input on how to structure such a program. EPA does not intend to 
finalize an auditing program as part of this proposed rule but seeks to 
gather information that the Agency believes will be useful to inform a 
potential future proposal. Accordingly, EPA does not intend to respond 
to any advance information received on the options discussed in this 
section in any final rulemaking for this proposal.
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    \170\ Esther Duflo, Michael Greenstone, Rohini Pande, and 
Nicholas Ryan, ``Truth-Telling by Third-Party Auditors and the 
Response of Polluting Firms: Experimental Evidence from India,'' 
Journal of Economics (2013), 1499-1545. doi:10.1093/qje/qjt024.
    \171\ Henrik Kleven, Martin Knudsen, Claus Kreiner, S[oslash]ren 
Pedersen, and Emmanuel Saez, ``Unwilling or Unable to Cheat? 
Evidence From a Tax Audit Experiment in Denmark.'' Econometrica, 79: 
651-692. (2011) https://doi.org/10.3982/ECTA9113.
    \172\ Marcelo B[eacute]rgolo, Rodrigo Ceni, Guillermo Cruces, 
Matias Giaccobasso, and Ricardo Perez-Truglia, ``Tax Audits as 
Scarecrows: Evidence from a Large-Scale Field Experiment,'' NBER 
Working Paper No. 23631 July 2017, Revised January 2020 JEL No. C93, 
H26, K42.
    \173\ More information on the Renewable Fuel Standard program 
available at: https://www.epa.gov/renewable-fuel-standard-program.
    \174\ 79 FR 42080, July 18, 2014.
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1. Who should be subject to the independent third-party testing and 
audits?
    EPA is seeking advance information on the framework for a third-
party testing program and is considering several different options for 
this framework. The first option would be to require manufacturers of 
regulated products to receive a third-party certification that the 
products are compliant with this proposed rule. Under this option, any 
manufacturer or importer of regulated products would be required to 
show that the product is certified compliant with subsection (i) use 
restrictions before that product could be imported, offered for sale, 
sold, or otherwise distributed. It would be prohibited to import into 
the United

[[Page 76799]]

States or domestically manufacture any uncertified regulated product. 
The certification process would include registering the manufacturer or 
importer into a third-party certification system that would have the 
authority to test and verify products and report their findings 
directly to EPA. Accordingly, EPA anticipates that this option could 
involve use of foreign third-party certifiers.
    An alternative to product certification for regulated products 
would be to require a representative sample of all domestically 
manufactured and imported regulated products to be tested for 
compliance by a third-party at the point of manufacture (in the case of 
domestically manufactured products), or on import (i.e., at the ports 
in the case of importers). For imported products, EPA could consider 
options that would allow for samples to be provided prior to arrival in 
the U.S. or be tested following release. Another option EPA is 
considering would require that all retailers that sell, offer for sale, 
distribute, or make available for sale or distribution regulated 
products to register and participate in a third-party auditing program. 
Under this structure, third-party auditors would select a certain 
number of products to test for compliance per year and report the 
results to EPA.
    EPA is seeking specific comment on the relative strengths and 
weaknesses of these approaches to testing and auditing, and whether 
they are optimally used singly or in combination. To facilitate such 
comment, EPA notes that it believes a strength of the manufacturer and 
importer-focused third-party certification for all products that may 
contain HFCs is that it would reduce the likelihood that noncompliant 
products will be manufactured or imported because it would signal the 
need for compliance with subsection (i) restrictions early in the 
market chain. We have particular concern about noncompliant imports 
into the United States by retailers and through online eCommerce and 
establishing auditing that would occur at the point of import may 
minimize noncompliance. It would also reduce the burden on retailers to 
identify whether they sell products that may contain HFCs and thus need 
to register with the third-party certification program. This would be 
especially beneficial for small businesses that may be less familiar 
with environmental regulations and less familiar with what types of 
products may contain HFCs.
    Potential weaknesses of the third-party certification system 
include difficulty in identifying which products would need to be 
certified in order to be sold or distributed in the United States and 
the degree to which EPA or an accreditation board would be able to 
provide adequate oversight to foreign third-party certifiers. 
Additionally, given that all products would need to be certified 
compliant prior to import, EPA is concerned that accrediting enough 
certifiers to conduct the required testing would be challenging. A 
related challenge may concern how auditing results are shared with the 
Agency including the format in which they are presented. EPA is seeking 
input on ways to mitigate these potential challenges.
    Alternatively, a potential strength of a retailer-focused third-
party auditing program is that products will consistently be tested for 
compliance by various third-party auditors. This could provide a 
continuous stream of data to understand how many tested products are 
compliant and assist EPA in knowing which products to focus on for 
enforcement. A potential weakness is that more noncompliant products 
may be made available in the U.S. market, especially from foreign 
distributors through eCommerce. Furthermore, it may be challenging to 
assess compliance of products sold by foreign businesses through online 
eCommerce as these entities would not be participants of the auditing 
program. In order to reduce potential rates of noncompliance, EPA is 
seeking input on the frequency with which third-party audits should be 
conducted and methods of addressing potential noncompliance by foreign 
eCommerce businesses.
    In addition to either of these proposed structures, EPA is also 
considering an auditing program for non-residential equipment that is 
field charged with regulated substances. Two options EPA is considering 
include either a periodic audit of the owners of the existing equipment 
to review whether this field-charged equipment is being charged with a 
compliant substance or to audit the field chargers when equipment is 
charged to determine that it is being charged with a compliant 
substance. EPA is seeking comment on the relative strengths or 
weaknesses of either approach and whether the field chargers or 
equipment owners should maintain sufficient documentation to support 
such an audit. EPA believes a potential strength of auditing the owners 
of the non-residential field-charged equipment is that it will narrow 
the universe of audited parties to only those owners of the equipment 
that is being periodically field-charged with regulated substances and 
could encourage this industry to provide its own oversight of field 
charging entities to ensure that its equipment is compliant.
    In addition to seeking input on the relative strengths and 
weaknesses of these two possible structures for a third-party testing 
and auditing program, EPA is also seeking advance information on any 
other structures that could be effective in ensuring noncompliant 
products are unavailable in the U.S. market. As discussed in the Lesley 
K. McAllister law review article, Third Party Programs to Assess 
Regulatory Compliance,\175\ one of the metrics of success for such a 
program is the rate of compliance that the program enhances.\176\ 
Common drivers of the rate of compliance includes the frequency with 
which testing is carried out and the regularity that testing will be 
conducted on a given regulated entity.\177\ For example, even if 
testing will only be conducted on a regulated entity once every few 
years, if the entity knows to anticipate testing with regularity, the 
entity is more likely to change its processes to be compliant. EPA is 
especially interested in any comments that address how the third-party 
program can be structured to enhance rates of compliance.
---------------------------------------------------------------------------

    \175\ 53 B.C. L. Rev. 1 (Jan. 2012).
    \176\ Id. at 44-45.
    \177\ Id. at 44-45.
---------------------------------------------------------------------------

2. What elements and criteria should be included in the third-party 
auditors and/or accreditation body requirements?
    EPA is seeking advance information on how the accreditation process 
should be structured for third-party auditors or certifiers and what 
criteria should be included in the accreditation process. First, EPA is 
seeking input on how accreditation of third-party auditors or 
certifiers should be structured. The above-cited McAllister law review 
article notes that different agencies have structured third-party 
programs in a variety of ways. That article notes that the most common 
structure is for the government agency to recognize a third-party 
accreditation body that in turn accredits conformity assessment bodies, 
i.e., third-party auditors or certifiers.\178\ However, the article 
recognizes that this structure varies under different regulatory 
programs, noting that in some instances the regulatory agency may 
accredit the third-party auditors or certifiers directly, and that 
other programs accredit a combination of third-party auditors and 
testing bodies (e.g., laboratories).\179\
---------------------------------------------------------------------------

    \178\ Id. at 7.
    \179\ Id.
---------------------------------------------------------------------------

    EPA is seeking feedback on how the accreditation system could be 
structured

[[Page 76800]]

for third-party auditors or certifiers, and whether that accreditation 
system should be headed by accreditation bodies recognized by EPA. EPA 
is seeking input on the relative strengths and weaknesses of 
recognizing accreditation bodies to conduct the accreditation process 
of third-party auditors or certifiers and the strengths and weaknesses 
of EPA directly accrediting third-party auditors or certifiers.
    If a comment recommends that EPA recognize accreditation bodies to 
accredit third-party auditors or certifiers, EPA is also interested in 
input on what criteria should be used to assess EPA's recognition of 
these bodies. Such criteria could include, for example: how the 
accreditation body must demonstrate legal authority (e.g., governmental 
or contractual) to perform assessment of third-party auditors necessary 
to assess the applicant's capability to conduct audits; criteria for 
competency and capacity to adequately assess applicants' capabilities 
as an auditor; criteria to reduce conflicts of interest and promote 
independence in the assessment body; and what recordkeeping 
requirements should exist to qualify for accreditation.
    EPA is also seeking input on what criteria should be used, either 
by EPA or by the accreditation body, to accredit third-party auditors. 
Such criteria could include, for example: laboratory testing 
capabilities the applicant must have, and requirements to ensure the 
capabilities are adequate for testing for compliant HFCs; expertise the 
applicant must have in order to adequately assess compliance beyond 
testing capabilities; recordkeeping requirements that should be 
required; criteria to reduce conflicts of interest and promote 
independence in the third-party auditor; frequency that the applicant 
should be re-assessed for accreditation; and how the reports should be 
provided to EPA and/or the accreditation body.
    Of particular interest to EPA is advance information on how the 
third-party auditing program should be paid for. EPA is considering 
implementing a fee-based system paid by all registered entities that 
distribute products that may contain HFCs in the U.S. market. If using 
a fee-based structure, EPA is seeking input on whether to provide a 
fee-structure that is proportionate to the size of business in order to 
mitigate impacts on small businesses. Although EPA is considering a 
fee-based approach, EPA also welcomes comments on alternative payment 
structures that could foster the greatest level of independence between 
registered regulated entities and the third-party accreditation body 
and/or third-party auditors.
    The above-cited McAllister law review article notes that one of the 
metrics of success for third-party auditing programs is the extent to 
which the program produces reliable results. Primarily this metric is 
driven by the extent to which the program requirements foster third-
party auditors' competency and independence.\180\ In order to foster 
competency, EPA believes the testing capabilities to determine that any 
HFCs in a product are compliant will be paramount. EPA is especially 
interested in any comments regarding recommended requirements to ensure 
that third-party auditors are capable of this type of testing and any 
additional requirements that should be added to enhance the likelihood 
that third-party auditors will be competent to assess products' 
compliance.
---------------------------------------------------------------------------

    \180\ Id. at 40.
---------------------------------------------------------------------------

    Likewise, EPA is interested in advance information on enhancing the 
independence of third-party auditors. EPA believes a fee-based system 
will foster independence in auditors as they would not be paid directly 
by the entity being audited. However, EPA is interested in comments on 
additional criteria that would foster independence. Such criteria could 
include a required amount of time that the auditor would not work for 
the audited entity both before and after the audit. EPA believes such 
criteria could help reduce commercial and financial pressures on the 
auditor that could potentially compromise the audit.
    Another metric of success discussed in the McAllister article is 
the agency's capacity to administer the third-party program.\181\ 
Depending on how the third-party program is designed, implementing the 
program may require a large investment of agency time and resources. In 
particular, if EPA is directly accrediting third-party auditors rather 
than delegating that to accreditation bodies, EPA will need enough 
resources to adequately assess each of the third-party auditor 
applicants. It would also require EPA personnel to develop the 
necessary expertise to consistently evaluate capabilities of 
applicants. EPA directly accrediting third-party auditors could present 
additional challenges when assessing potential foreign third-party 
auditor applicants.
---------------------------------------------------------------------------

    \181\ Id. at 45-48.
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IX. What are the proposed recordkeeping and reporting requirements?

    EPA is proposing recordkeeping and reporting requirements for any 
entity that domestically manufactures or imports products that use or 
are intended to use regulated substances or blends containing a 
regulated substance and is subject to the restrictions in this proposed 
rulemaking.
    A subset of the entities that would be subject to these proposed 
reporting requirements is currently subject to reporting requirements 
under subpart QQ of the GHGRP.\182\ The GHGRP, 40 CFR part 98, covers 
the mandatory reporting of greenhouse gas emissions and supplies from 
certain facilities and suppliers. To decrease the administrative 
burden, particularly to those entities that would be subject to both 
subpart QQ of 40 CFR part 98 and this proposed rulemaking, EPA is 
proposing reporting requirements similar to the data elements required 
by the GHGRP. The data elements in subpart QQ of the GHGRP form the 
starting point for the proposed recordkeeping and reporting 
requirements further outlined in this section.\183\ EPA is taking this 
proposed approach because many of the data elements in subpart QQ 
provide information necessary for EPA to assess compliance with this 
proposed rule.
---------------------------------------------------------------------------

    \182\ 40 CFR part 98, subpart QQ, ``Importers and Exporters of 
Fluorinated Greenhouse Gases Contained in Pre-Charged Equipment or 
Closed-Cell Foams.''
    \183\ EPA is not proposing any changes to 40 CFR part 98 in this 
rulemaking.
---------------------------------------------------------------------------

    While some of the proposed requirements overlap with those of the 
GHGRP, this proposal would require all manufacturers and importers of 
products that use or are intended to use regulated substances or blends 
containing a regulated substance subject to these proposed restrictions 
to electronically report certain information to EPA. This is in 
contrast to the GHGRP where reporting is not required for entities that 
import and export less than the equivalent of 25,000 MTCO2e 
per year and are not otherwise required to report under 40 CFR part 98. 
Under subpart QQ, entities that import or export an annual quantity of 
fluorinated greenhouse gases (as defined in 40 CFR part 98) contained 
in pre-charged equipment or closed-cell foams that is equivalent to 
25,000 metric tons CO2e \184\ or more are required to 
provide annual reports detailing certain

[[Page 76801]]

information regarding their imports or exports of such products.
---------------------------------------------------------------------------

    \184\ Calculated as specified in 40 CFR 98.2.
---------------------------------------------------------------------------

    Instead, for this rule EPA is proposing to apply the provisions to 
all entities that domestically manufacture or import products that use 
or are intended to use regulated substances or blends containing a 
regulated substance subject to this proposed rulemaking regardless of 
the amount of regulated substances in those products. EPA believes 
requiring these entities to report will be important for understanding 
how HFCs are being used or are intended for use in products and would 
provide important information for verifying compliance and allowing for 
oversight.
    EPA is proposing that reports be submitted electronically using 
EPA's Central Data Exchange (CDX) \185\ through EPA's electronic 
Greenhouse Gas Reporting Tool (e-GGRT).\186\ EPA intends to avoid 
duplicative burden between the AIM Act and the GHGRP and reporting 
through e-GGRT will aid in the synchronization of these systems. 
Entities already subject to reporting under 40 CFR part 98, subpart QQ 
may need to augment their reporting in order to comply with reporting 
requirements under this proposal but would not need to duplicate their 
efforts. Where there is overlap in requested data, EPA intends to 
provide the ability to populate a draft annual GHGRP report with data 
submitted under the AIM Act, which the GHGRP reporter could then revise 
or augment as necessary, certify, and submit as required under 40 CFR 
part 98. EPA seeks comment on additional ways the Agency can utilize 
existing data collection to ensure compliance with the proposed 
restrictions.
---------------------------------------------------------------------------

    \185\ Central Data Exchange is EPA's electronic reporting site 
(https://cdx.epa.gov/).
    \186\ E-GGRT is EPA's electronic Greenhouse Gas Reporting Tool 
for certain sources and suppliers of GHGs in the United States to 
report GHG emissions (https://ghgreporting.epa.gov/ghg/login.do).
---------------------------------------------------------------------------

A. What reporting is EPA proposing to require?

    EPA is proposing that covered entities provide reports to EPA that 
include: (1) the sector and subsector of the product based on the 
categorization in this rulemaking; (2) for each type of pre-charged 
equipment with a unique combination of charge size and regulated 
substance or blend containing a regulated substance, the identity of 
the HFC or HFC blend used and its GWP, charge size (including holding 
charge, if applicable), and number of each product type domestically 
manufactured or imported; (3) for each element in (2) in this list, the 
total mass in metric tons of each HFC or blend containing an HFC used 
in the product type, and the mass of the regulated substance or blend 
containing a regulated substance per unit of equipment type; and (4) 
the dates on which the products were imported or domestically 
manufactured.
    For the proposed requirement to report the total mass in metric 
tons of each HFC or blend containing an HFC used in the regulated 
products, including those in the RACHP and aerosols sectors, but 
excluding those in the foam blowing sector, reporters shall use the 
following equation:

I = [Sigma]t St * Nt * 0.001

where:

I = Total mass of the regulated substance or blend containing a 
regulated substance (metric tons) in all regulated products the 
reporter imports and/or domestically manufacturers quarterly.
t = Equipment/product type using a regulated substance or blend 
containing a regulated substance.
St = Mass of the regulated substance or blend containing 
a regulated substance per unit of equipment type t (charge per piece 
of equipment, kg).
Nt = Number of units of equipment type t imported or 
domestically manufactured quarterly (pieces of equipment).
0.001 = Factor converting kg to metric tons.

    For the foam blowing sector, for those foams that are an integrated 
part of a product (e.g., the foam in a household refrigerator or 
freezer), St shall be the mass of the regulated substance or 
blend containing a regulated substance in the foam used as part of the 
product), and all other factors in the equation above shall remain the 
same.
    For the foam blowing sector, for those foams that are considered 
the product itself (e.g., extruded polystyrene boardstock), 
St shall be the density of the regulated substance or blend 
containing a regulated substance in foam (charge per cubic foot of 
foam, kg of regulated substance per cubic foot), Nt shall be 
the total volume of foam imported or domestically manufactured 
quarterly (cubic feet of foam), and all other factors in the equation 
above shall remain the same.
    This equation is used in 40 CFR part 98 subpart QQ for imports and 
exports of pre-charged equipment and closed-cell foams that contain a 
fluorinated GHG, as defined under 40 CFR part 98, and is already in use 
and familiar to those currently subject to reporting under subpart QQ.
    EPA is requesting comment on the proposed reporting requirements 
and whether specific data should additionally be required for other 
sectors or subsectors such as: a list of each specific product model 
using regulated substances that falls within each type and unique 
combination of charge size and regulated substance or blend containing 
a regulated substance as reported per above; a differentiation by model 
number of the products as reported per above; an estimation of future 
imports over some period of time such as the next quarter or next year; 
information on the source of the HFC or HFC blend such as company name 
and address; or other information that would prove useful for the 
purposes of this proposed regulation.
    For equipment that is shipped without an HFC but is intended to use 
an HFC (e.g., field-charged equipment), EPA is proposing that the 
manufacturer or importer of the dry shipped equipment report on the 
number of products, the HFC or HFC blend the products are intended for 
use with, and the expected quantity of HFC or HFC blend that the 
product would contain when fully charged. EPA requests comment on 
requiring additional data elements such as whether the product is also 
intended for use with substances other than HFCs or HFC blends, the 
sector(s) and subsector(s) the product is used in, and whether the 
product is a component or subassembly. The Agency also requests comment 
on other data points that may be useful in determining the number of 
HFC products that are manufactured or imported without a charge. 
Alternatively, EPA could require entities who manufacture or import 
products that are designed for but do not contain an HFC or HFC blend 
to affirm they are a covered entity on an annual basis and list the 
types of products they manufacture or import, the quantity they 
manufactured or imported last year, and the regulated substances their 
equipment is designed to work with.
    EPA notes that the definition of manufacture for this proposed rule 
includes the entity responsible for charging a field charged product. 
EPA proposes for the reporting and recordkeeping section, technicians 
are not included as manufacturers and would therefore not be subject to 
the proposed reporting and recordkeeping requirements.
    Requiring reporting from entities that are manufacturing products 
that are intended for but do not contain HFCs and HFC blends would 
ensure EPA knows the full universe of relevant products that likely 
will contain HFCs or HFC blends in the covered sectors and subsectors 
and know the full universe of entities that manufacture and import 
these products. These proposed data requirements would provide 
information regarding the quantity and type of HFCs used in the

[[Page 76802]]

three sectors (i.e., RACHP, foam blowing, and aerosols) covered in this 
proposed rulemaking. This information will support EPA's efforts to 
assess the compliance of the regulated industries and will assist with 
efforts to enforce requirements established in this rulemaking. EPA is 
proposing that importers and manufacturers of products using regulated 
substances or blends containing a regulated substance who fail to 
report required information or provide inaccurate information would be 
considered a violation. EPA does not believe that reporting the 
information listed in this section above will be overly burdensome for 
the regulated community. Much of the information is already required 
for a portion of those impacted by this proposed rulemaking. The 
required data is limited to the information needed to ensure compliance 
and monitor the import and manufacture of the use of HFCs in products.
    EPA seeks to ensure a level playing field for the regulated 
community and views regular reporting as a central mechanism for 
ensuring compliant companies are not placed at a competitive 
disadvantage. EPA requests comment on the proposed reporting 
requirements, including comments related to whether additional data 
should be collected or if complying with the proposed requirements will 
be overly burdensome.
    EPA is proposing that reports described in this section be 
submitted to EPA within 45 days of the end of the applicable reporting 
period, unless otherwise specified. The report would need to be signed 
and attested by a responsible officer. EPA is proposing that importers 
and domestic manufacturers of products subject to the proposed 
reporting requirements provide a statement of certification that the 
data they provide is accurate. EPA is also proposing that reporters be 
required to certify that their products use only allowed HFCs, do not 
exceed any applicable GWP limit, and are properly labeled. EPA requests 
comment on the proposed certification requirements.
    What is the proposed frequency of reporting?
    EPA is proposing to require quarterly reporting from domestic 
manufacturers and importers subject to the proposed reporting 
requirement. The proposed frequency would allow for the Agency to 
review data throughout the year, identify trends, and identify 
noncompliance with the GWP limits and inaccurate reporting on an 
ongoing basis. Quarterly reporting is consistent with other reporting 
under the Allocation Framework Rule. Quarterly reporting may allow the 
Agency to more quickly identify trends and enforce against any 
production or import of a regulated product that uses or is intended to 
use a regulated substance or blend containing a regulated substance 
that is above the GWP limit or otherwise restricted as proposed in this 
rule. Doing so may limit the amount of such noncompliant product that 
enters commerce compared to an annual report. This frequency of 
reporting may likewise provide manufacturers and importers the ability 
to more quickly stop production or import of such noncompliant product 
and return to compliance with the provisions of this proposed rule. 
Quarterly reporting may also allow EPA to identify and correct 
inaccurate reporting more quickly so that the errors can be corrected. 
Quarterly reporting would also provide more information for 
understanding where HFCs and blends containing HFCs continue to be used 
in the sectors and subsectors covered by this rule, which would allow 
the Agency to understand market dynamics and the transitions that are 
occurring in those sectors and subsectors more quickly than semi-annual 
or annual reporting. The reports could also inform potential future 
rulemakings under subsection (i) of the AIM Act or potentially under 
other subsections of the Act. In light of these considerations, EPA is 
proposing the collection of quarterly reporting as the most appropriate 
frequency. EPA is taking comment on whether semi-annual, annual 
reporting, or another reporting frequency would adequately provide the 
same level of information and enforcement potential.
    EPA is also taking comment on whether it would be appropriate to 
require notification to EPA prior to importing products that use or are 
intended to use HFCs. This would be analogous to the requirements at 40 
CFR 84.31(c)(7) that require importers of bulk HFCs to report to EPA 
what they are importing early enough that EPA and CBP can determine if 
there are sufficient allowances for the imported HFCs or blends 
containing HFCs. In this case the notice would certify to EPA that the 
products using HFCs are in compliance with these standards and would 
provide the data required in the quarterly reporting program described 
in this section above for the products in the shipment. This 
information could be used to assist CBP as well as EPA personnel that 
may need to assess if a given product is consistent with requirements 
established in this rulemaking. While EPA notes that providing 
information regarding regulated products prior to their import may have 
compliance related advantages, such as enabling noncompliant products 
to be stopped before entering the market, such a system would require 
significant EPA resources to administer. EPA seeks comments on 
potential advantages or disadvantages of importers reporting prior to 
import in addition to quarterly, semi-annual, or annual reporting, 
including whether reporting prior to import would be useful for 
assessing compliance.

B. What recordkeeping is EPA proposing?

    EPA is proposing that entities that import or domestically 
manufacture regulated products in the sectors and subsectors covered by 
this rule maintain records that form the basis of the reports outlined 
in section IX.A of this preamble above for a minimum of three years and 
make them available to EPA upon request. EPA also proposes that the 
importer or domestic manufacturer retain records of the company or 
retailer to whom the regulated product was sold, distributed, or in any 
way conveyed to. Information regarding where products have been 
distributed, sold, or conveyed to after import or manufacture may be 
necessary for tracking noncompliant products when they are identified 
and removing them from the market.
    In addition, EPA is proposing that importers retain the following 
records substantiating each of the imports that they report: (1) a copy 
of the bill of lading for the import, (2) the invoice for the import, 
(3) the CBP entry documentation if applicable, (4) ports of arrival and 
entry though which the products passed, and (5) country of origin and 
if different the country of shipment to the United States. These 
requirements are consistent with the recordkeeping already required for 
the subset of importers subject to subpart QQ of the GHGRP and will 
allow EPA to enforce the proposed restrictions by tracking the movement 
and sources of noncompliant products when they are identified.
    EPA requests comment on the proposed recordkeeping requirements and 
whether additional recordkeeping should be required. EPA also requests 
comment on whether the Agency should consider a retention period for 
records of five years in alignment with the HFC Framework rule.

[[Page 76803]]

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

    EPA estimated the costs and benefits of restricting HFCs consistent 
with this proposal. This analysis, presented in the RIA addendum 
contained in the docket, is 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. To the 
extent that EPA has relied upon costs and benefits estimates for 
purposes of analyzing factors under subsection (i)(4), as discussed in 
sections VII.E and VII.F of this preamble, EPA has summarized those 
estimates in the Costs and Environmental Impacts TSD.
    In the RIA addendum, EPA also included estimates of the social cost 
of HFCs in order to quantify climate benefits, chiefly for the purpose 
of providing useful information to the public and to comply with E.O. 
12866. Although EPA is using the social costs of HFCs for purposes of 
that assessment, this proposed action does not rely on the 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.

A. Assessment of Costs and Additional Benefits Utilizing Transition 
Options

    The RIA addendum conducted for this proposed rule follows a 
methodology that is consistent with the costs and benefits analysis 
detailed in the Allocation Framework RIA, released in 2021, as well as 
the Addendum to that RIA accompanying the proposed 2024 Allocation 
Rule. In the Allocation Framework RIA and that Addendum, costs and 
benefits are calculated for the entire compliance period of the HFC 
phasedown (2022-2036), using a marginal abatement cost (MAC) curve to 
evaluate the availability and cost of abatement required to meet the 
AIM Act phasedown caps for production and consumption. Similarly, for 
this proposed rule, EPA quantifies the costs associated with the 
transitions necessary for compliance, but does so based on the sector- 
and subsector-specific restrictions proposed by this rule as opposed to 
an overall production and consumption cap. Both approaches, as 
discussed in the respective RIAs, also quantify the monetized climate 
benefits associated with the reduction in emissions over time as a 
result of decreased consumption of regulated substances.\187\
---------------------------------------------------------------------------

    \187\ For the sake of comparison, results from both sets of 
analyses are included in the RIA addendum contained in the docket.
---------------------------------------------------------------------------

    Because the phasedown in HFC consumption and production has already 
been codified under the Allocation Framework Rule, with further changes 
proposed under the 2024 Allocation Rule, the full extent of the 
reductions that would result from this proposed rule are not considered 
additional. Therefore, in calculating the impacts from this proposed 
rule, we calculate the ``incremental'' costs and environmental impacts 
(either increased or decreased) that this proposed rule would achieve 
compared to what the Allocation Framework Rule as updated by the 
proposed 2024 Allocation Rule achieves. This difference is considered 
the additional costs and environmental impacts realized by this 
proposed rule, should it be finalized as proposed.
    EPA estimates that the proposed rule would have incremental 
benefits relative to those assessed for the Allocation Rules, 
although--as discussed in the RIA addendum and the Costs and 
Environmental Impacts TSD--the extent of these benefits varies 
depending on the mix and timing of industry transitions made in order 
to achieve compliance in affected subsectors. In its analysis of the 
Allocation Rules, EPA estimated that regulated entities would adopt 
specific technology transition options to achieve compliance with the 
statutory allowance cap step-downs. Industry is already making many of 
these transitions, and we expect that achieving the allowance cap step-
downs will require many of the same subsector-specific technology 
transitions that would also be required by this proposed rule. However, 
the rule may in some cases require regulated entities to further 
accelerate transitions in specific subsectors, relative to what EPA 
previously assumed in its analysis of the Allocation Rules. Conversely, 
entities in a discrete set of subsectors not covered by this proposed 
rule could conceivably forgo or delay adopting abatement options that 
were assumed to be undertaken to comply with the Allocation Rules.
    Given this uncertainty, EPA analyzed two scenarios to represent the 
range of potential incremental impacts resulting from the proposed 
rule: a ``base case'' and ``high additionality case.'' Under the 
proposed rule, EPA estimates that HFC emissions and consumption from 
2025-2050 would be further reduced by an annual average of 
approximately 5 to 35 MMTCO2e and 28 to 43 
MMTCO2e, respectively. The annual incremental consumption 
and emissions avoided are shown in Table 6 for select years as well as 
on a cumulative basis.

           Table 6--Incremental Consumption and Emission Reductions From the Proposed Rule, 2025-2050
                                                    [MMTCO2e]
----------------------------------------------------------------------------------------------------------------
                                                      Consumption reductions            Emission reductions
                                                 ---------------------------------------------------------------
                      Year                                             High                            High
                                                     Base case     additionality     Base case     additionality
                                                                       case                            case
----------------------------------------------------------------------------------------------------------------
2025............................................               9              42             -52               8
2030............................................              26              51             -12              35
2035............................................              41              51               6              45
2040............................................              21              29              27              40
2045............................................              35              44              27              37
2050............................................              37              46              30              38
                                                 ---------------------------------------------------------------
Total (cumulative)..............................             735            1121             134             903
----------------------------------------------------------------------------------------------------------------


[[Page 76804]]

    In order to calculate the climate benefits associated with 
consumption abatement, the consumption changes were expressed in terms 
of emissions reductions. Emissions avoided in each year can also be 
less than the consumption avoided in the same year because of the delay 
between when an HFC is produced or imported and when it is emitted to 
the atmosphere.
    As noted above, the base case scenario of incremental benefits 
shows that this proposed rule would achieve overall emission reductions 
over the full time horizon for implementation. However, the incremental 
emissions reductions under the transition pathway evaluated for the 
proposed rule are in some cases assumed to be more gradual than those 
EPA previously estimated to occur with implementation of the Allocation 
Rules. This is primarily because a) the base case does not include 
certain actions to reduce consumption (and, consequently, reduce 
emissions) previously assumed in the Allocation Rule reference case, 
including increased leak reduction and enhanced recovery of HFCs, and 
b) the assumed timing of emission reductions achieved or forgone 
differs depending on assumed equipment lifetime and the subsector and 
technology being modeled. Overall, the abatement options analyzed for 
compliance with this proposed rule result in more consumption 
reductions on a cumulative basis; however, some of the consequent 
emission reductions in this proposal would come at a later time than 
the emission reductions from the Allocation Rule reference case. As a 
result, when compared to the analysis of the Allocation Rules, the base 
case scenario results in slightly higher emissions in earlier model 
years while yielding greater emission reductions in later years and 
overall.
    Although the base case scenario is a reasonable projection of the 
potential impacts of this proposed rule, there is reason to believe 
that it is a conservative one, and that the incremental emission 
reduction benefits associated with this proposed rule could be 
substantially greater than reflected in the base case scenario. 
Previous regulatory programs to reduce chemical use in the affected 
industries show that regulated entities do not limit their response to 
the required compliance level; rather, regulated entities may take 
additional actions that transform industry practices for various 
reasons, including the anticipation of future restrictions, 
strengthening their competitive position, and supporting overall 
environmental goals. For this reason, in the high additionality case we 
assumed certain abatement options not covered by the proposed rule--but 
which were assumed in the prior accounting of benefits for the 
Allocation Rules--are also included to illustrate the potential for 
incremental benefits. In both scenarios, on a cumulative basis the rule 
is expected to yield incremental emission reductions, ranging from 134 
to 903 MMTCO2e through 2050 (respectively, about 3 percent 
and 20 percent of the total emissions over that same time period in the 
Allocations Rules analyses). In the RIA addendum, we estimate the 
present value of these incremental benefits to be between $5 billion 
and $51 billion in 2020 dollars.

  Table 7--Summary of Annual Incremental Climate Benefits, Costs, and Net Benefits of the Technology Transitions Rule Base Case and High Additionality
                                                       Case Scenarios for the 2025-2050 Timeframe
                                                     [Millions of 2020$, discounted to 2022] a b c d
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               Year                                   High additionality case
                                                         -----------------------------------------------------------------------------------------------
                                                                           Annual costs    Net benefits                    Annual costs    Net benefits
                        Base case                           Incremental      (negative     (3% benefits,    Incremental      (negative     (3% benefits,
                                                              climate       values are       3% or 7%         climate       values are       3% or 7%
                                                           benefits (3%)     savings)        costs) e      benefits (3%)     savings)        costs) e
--------------------------------------------------------------------------------------------------------------------------------------------------------
2025....................................................         -$3,603           -$395         -$3,209            $546             $31            $515
2029....................................................          -1,043              50          -1,092           2,563             335           2,227
2034....................................................             141            -200             340           3,739             -77           3,816
2036....................................................            -404            -677             273           3,213            -635           3,848
2040....................................................           2,669            -848           3,516           3,928            -784           4,712
2045....................................................           2,946            -786           3,732           4,031            -717           4,748
2050....................................................           3,606            -817           4,422           4,677            -743           5,419
--------------------------------------------------------------------------------------------------------------------------------------------------------


 
                 Discount rate                      3%         3%         7%        3%        7%         3%         3%         7%        3%        7%
--------------------------------------------------------------------------------------------------------------------------------------------------------
PV............................................     $5,084    -$8,045    -$4,225   $13,130    $9,309    $51,145    -$5,140    -$2,190   $56,285   $53,335
EAV...........................................        311       -492       -438       803       748      3,126       -314       -227     3,440     3,353
--------------------------------------------------------------------------------------------------------------------------------------------------------
a Benefits include only those related to climate. Climate benefits are based on changes in HFC emissions and are calculated using four different
  estimates of the SC-HFCs (model average at 2.5 percent, 3 percent, and 5 percent discount rates; 95th percentile at 3 percent discount rate). For
  purposes of this table, we show the effects associated with the model average at a 3 percent discount rate, but the Agency does not have a single
  central SC-HFC point estimate. We emphasize the importance and value of considering the benefits calculated using all four SC-HFC estimates. As
  discussed in Chapter 5 of the RIA addendum a consideration of climate effects calculated using discount rates below 3 percent, including 2 percent and
  lower, is also warranted when discounting intergenerational impacts.
b Rows may not appear to add correctly due to rounding.
c The annualized present value of costs and benefits are calculated as if they occur over a 26-year period from 2025 to 2050.
d The costs presented in this table are annual estimates.
e The PV for the 7% net benefits column is found by taking the difference between the PV of climate benefits at 3% and the PV of costs discounted at 7%.
  Due to the intergenerational nature of climate impacts the social rate of return to capital, estimated to be 7 percent in OMB's Circular A-4, is not
  appropriate for use in calculating PV of climate benefits.

    Climate benefits presented in Tables 7, 8, and 9 are based on 
changes (increases or reductions) in HFC emissions compared to the 
Allocation Framework Rule compliance case (i.e., after consideration of 
the Allocation Framework Rule and proposed 2024 Allocation Rule) and 
are calculated using four different global estimates of the social cost 
of HFCs (SC-HFCs): the model average at 2.5 percent, 3 percent, and 5 
percent discount rates and the 95th percentile at 3 percent discount 
rate. For the presentational purposes of Table 7, we show the 
incremental benefits associated with the average SC-HFCs at a 3 percent 
discount rate, but

[[Page 76805]]

the Agency does not have a single central SC-HFCs point estimate.
    EPA estimates the climate benefits for this rule using a measure of 
the social cost of each HFC (collectively referred to as SC-HFCs) that 
is affected by the rule. The SC-HFCs is the monetary value of the net 
harm to society associated with a marginal increase in HFC emissions in 
a given year, or the benefit of avoiding that increase. In principle, 
SC-HFCs includes the value of all climate change impacts, including 
(but not limited to) changes in net agricultural productivity, human 
health effects, property damage from increased flood risk and natural 
disasters, disruption of energy systems, risk of conflict, 
environmental migration, and the value of ecosystem services. As with 
the estimates of the social cost of other GHGs, the SC-HFC estimates 
are found to increase over time within the models--i.e., the societal 
harm from one metric ton emitted in 2030 is higher than the harm caused 
by one metric ton emitted in 2025--because future emissions produce 
larger incremental damages as physical and economic systems become more 
stressed in response to greater climatic change, and because gross 
domestic product (GDP) is growing over time and many damage categories 
are modeled as proportional to GDP. The SC-HFCs, therefore, reflects 
the societal value of reducing emissions of the gas in question by one 
metric ton. The SC-HFCs is the theoretically appropriate value to use 
in conducting benefit-cost analyses of policies that affect HFC 
emissions.
    The gas specific SC-HFC estimates used in this analysis were 
developed using methodologies that are consistent with the methodology 
underlying estimates of the social cost of other GHGs (carbon dioxide 
[SC-CO2], methane [SC-CH4], and nitrous oxide 
[SC-N2O]), collectively referred to as SC-GHG, presented in 
the Technical Support Document: Social Cost of Carbon, Methane, and 
Nitrous Oxide Interim Estimates under Executive Order 13990 published 
in February 2021 by the Interagency Working Group on the Social Cost of 
Greenhouse Gases (IWG) (IWG 2021). As a member of the IWG involved in 
the development of the February 2021 SC-GHG TSD, the EPA agrees that 
the TSD represents the most appropriate methodology for estimating the 
social cost of greenhouse gases until revised estimates have been 
developed reflecting the latest, peer-reviewed science. Therefore, EPA 
views the SC-HFC estimates used in analysis to be appropriate for use 
in benefit-cost analysis until improved estimates of the social cost of 
other GHGs are developed.
    As discussed in the February 2021 TSD, the IWG emphasized the 
importance and value of considering the benefits calculated using all 
four estimates (model average at 2.5, 3, and 5 percent discount rates, 
and 95th percentile at 3 percent discount rate). In addition, the TSD 
explained that a consideration of climate benefits calculated using 
discount rates below 3 percent, including 2 percent and lower, is also 
warranted when discounting intergenerational impacts. As a member of 
the IWG involved in the development of the February 2021 TSD, EPA 
agrees with this assessment for the purpose of estimating climate 
benefits from HFC reductions as well, and will continue to follow 
developments in the literature pertaining to this issue.
    Table 8 presents the sum of incremental climate benefits across all 
HFCs reduced for the proposed Technology Transitions Rule for 2025, 
2029, 2034, 2036, 2040, 2045, and 2050 in the base case scenario.

Table 8--Incremental Climate Benefits for the Proposed Rule for Select Years From 2025-2050 (Base Case Scenario)
                                                       a b
                                               [Billions of 2020$]
----------------------------------------------------------------------------------------------------------------
                                            Incremental climate benefits by discount rate and statistic
                                 -------------------------------------------------------------------------------
              Year                                                                                 3% (95th
                                     5% (average)        3% (average)       2.5% (average)        percentile)
----------------------------------------------------------------------------------------------------------------
2025............................                -1.5                -3.6                -4.8                -9.5
2029............................                -0.5                -1.0                -1.4                -2.8
2034............................                 0.1                 0.1                 0.2                 0.4
2036............................                 1.1                -0.4                -0.4                -1.2
2040............................                 1.3                 2.7                 3.5                 7.1
2045............................                 1.3                 2.9                 3.8                 7.8
2050............................                 1.7                 3.6                 4.6                 9.5
----------------------------------------------------------------------------------------------------------------
\a\ Benefits include only those related to climate. See Table 6-3 in the RIA addendum for the full time series
  of climate benefits using the SC-HFC.
\b\ Climate benefits are based on changes in HFC emissions and are calculated using four different estimates of
  the SC-HFCs (model average at 2.5 percent, 3 percent, and 5 percent discount rates; and 95th percentile at 3
  percent discount rate). The IWG emphasized, and EPA agrees with, the importance and value of considering the
  benefits calculated using all four estimates. As discussed in the Technical Support Document: Social Cost of
  Carbon, Methane, and Nitrous Oxide Interim Estimates under Executive Order 13990 (IWG 2021), a consideration
  of climate benefits calculated using discount rates below 3 percent, including 2 percent and lower, are also
  warranted when discounting intergenerational impacts.

    EPA estimates that the present value of cumulative net incremental 
benefits evaluated from 2025 through 2050 would range from $13.1 
billion to $56.2 billion at a 3 percent discount rate, or $9.3 billion 
to $53.3 billion at a 7 percent discount rate. These comprise 
cumulative incremental climate benefits due to reducing HFC emissions 
(with a present value ranging from $5 billion to $51.1 billion) as well 
as cumulative incremental compliance savings (with a present value 
ranging from $5.1 billion to $8 billion at a 3 percent discount rate or 
$2.1 billion to $4.2 billion at a 7 percent discount rate).
    The estimation of incremental benefits due to reductions in HFC 
emissions resulting from the proposed restrictions involved three 
steps. First, the difference between the consumption of HFCs realized 
under this proposed rule and the consumption that would have been 
expected based on the analysis in the Allocation Framework RIA as 
adjusted by the Addendum for the proposed 2024 Allocation Rule was 
calculated for each year of the restrictions in metric tons of carbon 
dioxide equivalent (MTCO2e). Although the Allocation 
Framework Rule only required allowances for domestic bulk consumption 
(i.e., in that rule, EPA defines consumption, with respect to a 
regulated substance, to mean bulk production plus bulk imports minus

[[Page 76806]]

bulk exports), the consumption reduction estimates in the Allocation 
Framework RIA included reductions in imported products containing HFCs. 
Second, using EPA's Vintaging Model, the changes in consumption were 
used to estimate changes in HFC emissions, which generally lag 
consumption by some time as HFCs incorporated into equipment and 
products are eventually released to the environment. Finally, the 
climate benefits were calculated by multiplying the HFC emission 
reductions for each year by the appropriate social cost of HFC to 
arrive at the monetary value of HFC emission reductions.
    The incremental climate benefits of this rule derive mostly from 
preventing the emissions of HFCs with high GWPs, thus reducing the 
damage from climate change that would have been induced by those 
emissions. The emission reductions attributed to this proposed rule are 
only those beyond the reductions expected based on the Allocation 
Framework Rule as updated by the proposed 2024 Allocation Rule, due to 
more rapid and/or comprehensive transitions to HFC substitutes in 
certain sectors or subsectors than would otherwise occur in the 
Allocation Framework Rule compliance case. The reduction in emissions 
follows from a reduction in the production and consumption of HFCs 
measured in millions of MTCO2e, or MMTCO2e, that 
would occur as a result of the restrictions proposed in this rule. It 
is assumed that all HFCs produced or consumed would be emitted 
eventually, either in their initial use (e.g., as propellants), during 
the lifetime of HFC-containing products (e.g., off-gassing from closed-
cell foams or leaks from refrigeration systems), or during servicing--
including the reuse of HFC recovered and possibly reclaimed--or 
disposal of HFC-containing products.
    EPA recognizes the shortcomings and limitations associated with the 
current interim IWG estimates and underlying methodology. Since the SC-
HFC estimates are based on the same methodology underlying the SC-GHG 
estimates presented in the IWG February 2021 TSD, they share a number 
of limitations that are common to those SC-GHG estimates. The 
limitations were outlined in the February 2021 TSD and include that the 
current scientific and economic understanding of discounting approaches 
suggests discount rates appropriate for intergenerational analysis in 
the context of climate change are likely to be less than 3 percent, 
near 2 percent or lower. Additionally, the Integrated Assessment Models 
(IAMs) used to produce these estimates do not include all of the 
important physical, ecological, and economic impacts of climate change 
recognized in the climate change literature, and the science underlying 
their ``damage functions''--i.e., the core parts of the IAMs that map 
global mean temperature changes and other physical impacts of climate 
change into economic (both market and nonmarket) damages--lags behind 
the most recent research.
    The modeling limitations do not all work in the same direction in 
terms of their influence on the SC-HFC estimates. However, as discussed 
in the February 2021 TSD, the IWG has recommended that, taken together, 
the limitations suggest that the SC-GHG estimates likely underestimate 
the damages from GHG emissions. Therefore, as a member of the IWG 
involved in the development of the February 2021 TSD, EPA agrees that 
the interim SC-GHG estimates represent the most appropriate estimate of 
the SC-GHG until revised estimates have been developed reflecting the 
latest, peer reviewed science.

B. Scoping Analysis of Imports of Regulated Products

    In the Technology Transitions Rule RIA addendum, EPA examined the 
scope of HFCs supplied in and emitted from equipment and products that 
are imported to the United States containing HFCs. We explained that 
the Allocation Framework Rule program does not require the expenditure 
of allowances when importing products with HFCs to the United States. 
We also indicated in the Allocation Framework Rule that subsection (i) 
of the AIM Act provided authority that would be appropriate to address 
such imports. In this proposed rule, under subsection (i) of the AIM 
Act, restrictions are proposed to apply equally to imported and 
domestically manufactured products and equipment that contain regulated 
substances or blends containing a regulated substance.
    In the RIA addendum, we reiterate that while the Allocation 
Framework Rule did not restrict imports of products containing HFCs, 
the analysis performed for that rule as well as the proposed 2024 
Allocation Rule assumed a whole-market approach. In other words, 
transitions that were selected by the models to meet HFC consumption 
reductions were assumed to apply equally to imported products and 
domestically manufactured products. We were not at the time able to 
distinguish the two because the models used (i.e., the Vintaging Model 
and the MAC model) are agnostic as to the location of product 
manufacture. The models are used to project demand for and emissions 
from products containing HFCs in the United States or HFC emitting 
processes carried out in the United States.
    To understand the historical and potential future scope of imports 
in products, and the effects that the proposed restrictions could have, 
EPA evaluated additional information to analyze eight scenarios as 
explained in Annex D to the RIA addendum. The scenarios derived from 
two approaches at estimates of what HFCs or substitutes are contained 
in the imported products, two scenarios for how future imports would 
grow, and two methods of evaluating the substitutes that would be used 
in imported products to comply with the proposed restrictions. From 
these calculations of reductions in the supply of HFCs inside products, 
we applied a simplified emission model to estimate the time-dependent 
emission reductions, which due to the multi-year use of some products 
lag the initial supply. We used these emission reduction estimates, by 
gas over time, and the same SC-HFCs factors from the Allocation 
Framework RIA, to derive climate benefits. As described in the RIA 
addendum, these estimates are provided as a scoping analysis and are 
considered in whole just a subset of the climate benefits achieved from 
other actions taken under the AIM Act.
    As detailed in Annex D to the RIA addendum, annual reductions in 
the supply of HFCs in imported products ranged from 30.0 to 46.6 
MMTCO2e in 2029, from 31.0 to 54.1 MMTCO2e in 
2034, and from 31.0 to 57.1 MMTCO2e in 2036, depending on 
the scenario. The cumulative reductions for the years 2025 through 2050 
ranged from 829 to 1,540 MMTCO2e, equal to about 12 to 23 
percent of the projected reductions in the Allocation Rules analysis 
and about 11 to 20 percent of the combined projected reductions due to 
the Allocation Rules plus the incremental reductions due to this 
proposed Technology Transitions Rule.
    The emission reductions lag the reductions in supply as explained 
in this section above but increase significantly as products expend 
their lifecycle and HFCs are emitted. Annual emission reductions ranged 
from 0 to 0.8 MMTCO2e in 2029, from 0 to 1.0 
MMTCO2e in 2034, and from 0.9 to 2.8 MMTCO2e in 
2036, depending on the scenario. The cumulative emissions reductions 
for the years 2025 through 2050 ranged from 318 to 459 
MMTCO2e, equal to about 7 to 10 percent of the projected 
reductions in the Allocation

[[Page 76807]]

Rules analysis and essentially the same percentages for the combined 
projected reductions in the Allocation Rules analysis plus the 
incremental reductions due to this proposed Technology Transition Rule.
    Climate benefits of the emission reductions are shown in Table 9. 
As noted in this section above, these benefits are not considered 
additional to the Allocation Framework Rule or to this proposed rule 
and are shown to inform the reader of the potential scope of the 
benefits from restricting imported products using HFCs.

Table 9--Climate Benefits From Restricting Imports of Regulated Products
                              for 2025-2050
                 [Billions of 2020$, discounted to 2022]
------------------------------------------------------------------------
                                          Net climate benefits  at 3%
                                           (average)  discount rate
                Year                 -----------------------------------
                                           Range of eight  scenarios
------------------------------------------------------------------------
2025................................  0.
2029................................  0.
2034................................  0 to 0.1.
2036................................  0.1 to 0.2.
2040................................  2.2 to 2.7.
2045................................  3.0 to 4.1.
2050................................  4.0 to 6.6.
------------------------------------------------------------------------

XI. Statutory and Executive Order Review

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    This action is an economically significant regulatory action that 
was submitted to OMB for review. Any changes made in response to OMB 
recommendations have been documented in the docket. A summary of the 
potential costs and benefits associated with this action is included in 
section X of this preamble, and EPA prepared an analysis of the 
potential costs and benefits associated with this action, which is 
available in Docket Number EPA-HQ-OAR-2021-0643.

B. Paperwork Reduction Act (PRA)

    The information collection activities in this proposed rule have 
been submitted for approval to OMB under the PRA. The Information 
Collection Request (ICR) document that EPA prepared has been assigned 
EPA ICR number [2742.01]. You can find a copy of the ICR in the docket, 
and it is briefly summarized here.
    Subsection (k)(1)(C) of the AIM Act states that section 114 of the 
CAA applies to the AIM Act and rules promulgated under it as if the AIM 
Act were included in title VI of the CAA. Thus, section 114 of the 
Clean Air Act, 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.
    EPA is proposing to apply labeling and packaging requirements to 
products using either an HFC or a blend containing an HFC, in the 
sectors and subsectors covered by this proposed rule, in order to 
encourage compliance and aid enforcement. EPA is also proposing 
recordkeeping and reporting requirements for any entity that 
domestically manufactures or imports regulated products to allow the 
Agency to review data and identify noncompliance with GWP restrictions 
and inaccurate reporting.
    Respondents/affected entities: Respondents and affected entities 
will be individuals or companies that manufacture, import, export, 
package, sell or otherwise distribute a product within the sectors or 
subsectors addressed by this proposed rule that uses or is intended to 
use certain HFCs that are defined as a regulated substance under the 
AIM Act, or blends that contain a regulated substance.
    Respondent's obligation to respond: Mandatory (AIM Act and section 
114 of the CAA).
    Estimated number of respondents: 199,086,175.
    Frequency of response: Quarterly, annually, and as needed depending 
on the nature of the report.
    Total estimated burden: 69,355 hours (per year) in the first year; 
56,520 hours per year in all following years. Burden is defined at 5 
CFR 1320.3(b).
    Total estimated cost \188\: $27,107,658 (per year) in the first 
year, $25,475,817 per year thereafter, includes $19,955,215 annualized 
capital or operation & maintenance costs.
---------------------------------------------------------------------------

    \188\ Costs are provided in 2022 dollars.
---------------------------------------------------------------------------

    An agency may not conduct or sponsor, and a person is not required 
to respond to a collection of information unless it displays a 
currently valid OMB control number. The OMB control numbers for EPA's 
regulations in 40 CFR are listed in 40 CFR part 9.
    Submit your comments on the Agency's need for this information, the 
accuracy of the provided burden estimates and any suggested methods for 
minimizing respondent burden to EPA using the docket identified at the 
beginning of this rule. EPA will respond to any ICR-related comments in 
the final rule. You may also send your ICR-related comments to OMB's 
Office of Information and Regulatory Affairs using the interface at 
www.reginfo.gov/public/do/PRAMain. Find this particular information 
collection by selecting ``Currently under Review--Open for Public 
Comments'' or by using the search function. Since OMB is required to 
make a decision concerning the ICR between 30 and 60 days after 
receipt, OMB must receive comments no later than January 17, 2023.

C. Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the RFA. The 
small entities subject to the requirements of this action include 
manufacturers of equipment or products within the affected subsectors 
(e.g., manufacturers of stand-alone/self-contained refrigeration 
systems, manufacturers of aerosol products, manufacturers of foam 
products and appliances containing foam) or end-users of equipment 
within affected subsectors (e.g., supermarkets, warehouse clubs/
superstores, convenience stores). EPA estimates that approximately 162 
of the 51,047 potentially affected small businesses could incur costs 
in excess of one percent of annual sales and that approximately 110 
small businesses could incur costs in excess of three percent of annual 
sales. Because there is not a significant percentage of small 
businesses that may experience a significant impact, it can be presumed 
that this action will have no SISNOSE. Details of this analysis are 
presented in Economic Impact Screening Analysis for Restrictions on the 
Use of Hydrofluorocarbons under Subsection (i) of the American 
Innovation and Manufacturing Act, which is available in Docket Number 
EPA-HQ-OAR-2021-0643.

D. Unfunded Mandates Reform Act (UMRA)

    This action does not contain any unfunded mandate as described in 
UMRA, 2 U.S.C. 1531-1538, and does not significantly or uniquely affect 
small governments. The action imposes no enforceable duty on any state, 
local or tribal governments or the private sector.

E. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have 
substantial direct effects on the states, on the relationship between 
the national government and the states, or on the distribution of power 
and responsibilities among the various levels of government.

[[Page 76808]]

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

    This action does not have tribal implications as specified in 
Executive Order 13175. It will not have substantial direct effects on 
tribal governments, on the relationship between the Federal government 
and Indian tribes, or on the distribution of power and responsibilities 
between the Federal government and Indian tribes, as specified in 
Executive Order 13175. Thus, Executive Order 13175 does not apply to 
this action. EPA periodically updates tribal officials on air 
regulations through the monthly meetings of the National Tribal Air 
Association and will share information on this rulemaking through this 
and other fora.

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

    This action is subject to Executive Order 13045 because it is an 
economically significant regulatory action as defined by Executive 
Order 12866, and EPA believes that the environmental health or safety 
risk addressed by this action has a disproportionate effect on 
children. Accordingly, we have evaluated the environmental health or 
safety effects of climate change on children.
    GHGs, including HFCs, contribute to climate change. The GHG 
emissions reductions resulting from implementation of this rule will 
further improve children's health. The assessment literature cited in 
EPA's 2009 and 2016 Endangerment Findings concluded that certain 
populations and life stages, including children, the elderly, and the 
poor, are most vulnerable to climate-related health effects. The 
assessment literature since 2016 strengthens these conclusions by 
providing more detailed findings regarding these groups' 
vulnerabilities and the projected impacts they may experience.
    These assessments describe how children's unique physiological and 
developmental factors contribute to making them particularly vulnerable 
to climate change. Impacts to children are expected from heat waves, 
air pollution, infectious and waterborne illnesses, and mental health 
effects resulting from extreme weather events. In addition, children 
are among those especially susceptible to most allergic diseases, as 
well as health effects associated with heat waves, storms, and floods. 
Additional health concerns may arise in low-income households, 
especially those with children, if climate change reduces food 
availability and increases prices, leading to food insecurity within 
households. More detailed information on the impacts of climate change 
to human health and welfare is provided in section III.B of this 
preamble.

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

    This action is not a ``significant energy action'' because it is 
not likely to have a significant adverse effect on the supply, 
distribution or use of energy. This action applies to certain regulated 
substances and certain applications containing regulated substances, 
none of which are used to supply or distribute energy.

I. National Technology Transfer and Advancement Act (NTTAA)

    This rulemaking does not involve technical standards.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    Executive Order 12898 (59 FR 7629, February 16, 1994) directs 
federal agencies, to the greatest extent practicable and permitted by 
law, to make environmental justice part of their mission by identifying 
and addressing, as appropriate, disproportionately high and adverse 
human health or environmental effects of their programs, policies, and 
activities on minority populations (people of color and/or indigenous 
peoples) and low-income populations.
    The EPA believes that the human health or environmental conditions 
that exist prior to this action result in or have the potential to 
result in disproportionate and adverse human health or environmental 
effects on people of color, low-income populations and/or indigenous 
peoples. EPA carefully evaluated available information on HFC 
substitute production facilities and the characteristics of nearby 
communities to evaluate these impacts in the context of this proposed 
rulemaking. Based on this analysis, EPA finds evidence of environmental 
justice concerns near HFC production facilities from cumulative 
exposure to existing environmental hazards in these communities. 
However, the Agency recognizes that restricting HFC use under the 
Allocation Framework Rule may cause significant changes in the location 
and quantity of production of both HFCs and their substitutes, and that 
these changes may in turn affect emissions of hazardous air pollutants 
at chemical production facilities. Thus, given uncertainties about 
where and in what quantities HFC substitutes will be produced, EPA 
cannot determine the extent to which this rule will exacerbate or 
reduce existing disproportionate adverse effects on communities of 
color and low-income people as specified in Executive Order 12898 (59 
FR 7629, February 16, 1994).
    The EPA believes that it is practicable to assess whether this 
action is likely to result in new disproportionately high and adverse 
effects on people of color, low-income populations and/or indigenous 
peoples. A summary of the Agency's approach for considering potential 
environmental justice concerns as a result of this rulemaking can be 
found in section III.C of the preamble, and our environmental justice 
analysis can be found in the RIA addendum, available in the docket. 
Based on the analysis, EPA determined that this rule will reduce 
emissions of potent GHGs, which will reduce the effects of climate 
change, including the public health and welfare effects on people of 
color, low-income populations and/or indigenous peoples. As noted in 
section III.C of this preamble, the Agency will continue to evaluate 
the impacts of this program on communities with environmental justice 
concerns and consider further action, as appropriate, to protect health 
in communities affected by HFC substitute production.

List of Subjects in 40 CFR Part 84

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Chemicals, Climate change, Emissions, Imports, 
Reporting and recordkeeping requirements.

Michael S. Regan,
Administrator.

    For the reasons stated in the preamble, EPA proposes to amend 40 
CFR part 84 as follows:

PART 84--PHASEDOWN OF HYDROFLUOROCARBONS

0
1. The authority citation for part 84 continues to read as follows:

    Authority: Pub. L. 116-260, Division S, Sec. 103.

0
2. Add subpart B consisting of Sec. Sec.  84.50 through 84.66 to part 
84 to read as follows:

Subpart B--Restrictions on the Use of Hydrofluorocarbons

Sec.
84.50 Purpose.

[[Page 76809]]

84.52 Definitions.
84.54 Prohibitions on use of hydrofluorocarbons.
84.56 Sectors and subsectors subject to use restrictions.
84.58 Exemptions.
84.60 Labeling.
84.62 Recordkeeping and reporting.
84.64 Technology transitions petition requirements.
84.66 Global warming potentials.


Sec.  84.50  Purpose.

    The purpose of the regulations in this subpart is to implement 
subsection (i) of 42 U.S.C. 7675, with respect to establishing 
restrictions on the use of a regulated substance in the sector or 
subsector in which the regulated substance is used, and to provide 
requirements associated with the submission of petitions seeking such 
restrictions.


Sec.  84.52  Definitions.

    For the terms not defined in this subpart but that are defined in 
Sec.  84.3, the definitions in Sec.  84.3 shall apply. For the purposes 
of this subpart B:
    Blend containing a regulated substance means any mixture that 
contains one or more regulated substances used in a sector or 
subsector.
    Export means the transport of a regulated product from inside the 
United States or its territories to persons outside the United States 
or its territories, excluding United States military bases and ships 
for onboard use.
    Exporter means the person who contracts to sell any regulated 
product for export or transfers a regulated product to an affiliate in 
another country.
    Importer means any person who imports any regulated product into 
the United States. Importer includes the person primarily liable for 
the payment of any duties on the merchandise or an authorized agent 
acting on his or her behalf. The term also includes:
    (i) The consignee;
    (ii) The importer of record;
    (iii) The actual owner; or
    (iv) The transferee, if the right to withdraw merchandise from a 
bonded warehouse has been transferred.
    Manufacture means to complete a product's manufacturing and 
assembly processes such that it is ready for initial sale, 
distribution, or operation. For equipment that is assembled and charged 
in the field, manufacture means to complete the circuit holding the 
regulated substance, charge with a full charge, and otherwise make 
functional for use for its intended purpose.
    Product means an item or category of items manufactured from raw or 
recycled materials which is used to perform a function or task. The 
term product includes, but is not limited to: equipment, appliances, 
components, subcomponents, foams, foam blowing systems (e.g., pre-
blended polyols), fire suppression systems or devices, aerosols, 
pressurized dispensers, and wipes.
    Regulated product means any product in the sectors or subsectors 
identified in Sec.  84.56 that contains or was manufactured with a 
regulated substance or a blend that contains a regulated substance, 
including products intended to be used with a regulated substance, or 
that is otherwise subject to the prohibitions of this subpart.
    Retrofit means to upgrade existing equipment where the regulated 
substance is changed, which--
    (i) Includes the conversion of equipment to achieve system 
compatibility; and
    (ii) May include changes in lubricants, gaskets, filters, driers, 
valves, o-rings, or equipment components for that purpose. Examples of 
equipment subject to retrofit include air-conditioning and 
refrigeration appliances, fire suppression systems, and foam blowing 
equipment.
    Sector means a broad category of applications including but not 
limited to: refrigeration, air conditioning and heat pumps; foam 
blowing; aerosols; chemical manufacturing; cleaning solvents; fire 
suppression and explosion protection; and semiconductor manufacturing.
    Subsector means processes, classes of applications, or specific 
uses that are related to one another within a single sector or 
subsector.
    Substitute means 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.
    Use means for any person to take any action with or to a regulated 
substance, regardless of whether the regulated substance is in bulk, 
contained within a product, or otherwise, except for the destruction of 
a regulated substance. Actions include, but are not limited to, the 
utilization, deployment, sale, distribution, discharge, incorporation, 
transformation, or other manipulation.


Sec.  84.54  Prohibitions on use of hydrofluorocarbons.

    (a) Effective January 1, 2025, no person may manufacture or import 
any product that uses or is intended to use a regulated substance or 
blend containing a regulated substance as listed in Sec.  84.56(a), 
(c), (d), and (e).
    (b) Effective January 1, 2026, no person may sell or distribute, 
offer to sell or distribute, make available to sell or distribute, 
purchase or receive, attempt to purchase or receive, or export any 
product that uses or is intended to use a regulated substance or blend 
containing a regulated substance as listed in Sec.  84.56(a), (c), (d), 
and (e), except after a period of ordinary utilization or operation of 
the product by an ultimate consumer.
    (c) Effective [DATE ONE YEAR AFTER DATE OF PUBLICATION OF THE FINAL 
RULE IN THE FEDERAL REGISTER], beginning model year 2025, no person may 
manufacture or import any mobile vehicle air-conditioning system for 
light-duty passenger cars and trucks that uses or is intended to use a 
regulated substance or a blend containing a regulated substance as 
listed in Sec.  84.56(b).
    (d) Effective January 1, 2026, no person may sell or distribute, 
offer to sell or distribute, make available to sell or distribute, 
purchase or receive, attempt to purchase or receive, or export any 
mobile vehicle air-conditioning system for light-duty passenger cars 
and trucks that uses or is intended to use a regulated substance or a 
blend containing a regulated substance as listed in Sec.  84.56(b), 
except after a period of ordinary utilization or operation of the 
product by an ultimate consumer.
    (e) Effective [DATE ONE YEAR AFTER DATE OF PUBLICATION OF THE FINAL 
RULE IN THE FEDERAL REGISTER], beginning model year 2026, no person may 
manufacture or import any mobile vehicle air-conditioning system for 
medium-duty passenger vehicles, heavy-duty pick-up trucks, complete 
heavy-duty vans, and certain nonroad vehicles that uses or is intended 
to use a regulated substance or a blend containing a regulated 
substance as listed in Sec.  84.56(b).
    (f) Effective January 1, 2027, no person may sell or distribute, 
offer to sell or distribute, make available to sell or distribute, 
purchase or receive, attempt to purchase or receive, or export any 
mobile vehicle air-conditioning system for medium-duty passenger 
vehicles, heavy-duty pick-up trucks, complete heavy-duty vans, and 
certain nonroad vehicles that uses or is intended to use a regulated 
substance or a blend containing a regulated substance as listed in 
Sec.  84.56(b), except after a period of ordinary utilization or 
operation of the product by an ultimate consumer.
    (g) Effective January 1, 2026, no person may manufacture or import 
any

[[Page 76810]]

residential and light commercial air conditioning and heat pump--
variable refrigerant flow system, that uses or is intended to use a 
regulated substance or a blend containing a regulated substance with a 
global warming potential of 700 or greater.
    (h) Effective January 1, 2027, no person may sell or distribute, 
offer to sell or distribute, make available to sell or distribute, 
purchase or receive, attempt to purchase or receive, or export any 
residential and light commercial air conditioning and heat pump--
variable refrigerant flow system, that uses or is intended to use a 
regulated substance or a blend containing a regulated substance with a 
global warming potential of 700 or greater, except after a period of 
ordinary utilization or operation of the product by an ultimate 
consumer.
    (i) Effective January 1, 2025, no person may import, sell, 
distribute, offer for sale or distribution, or make available for sale 
or distribution, any regulated product that is not labeled in 
accordance with Sec.  84.60.
    (j) No person may sell, distribute, offer for sale or distribution, 
or make available for sale or distribution, any product within a sector 
or subsector containing, using, or intended to use a regulated 
substance or blend containing a regulated substance that is in 
violation of paragraphs (a) through (i) of this section, except for 
such actions needed to re-export or recover the regulated substance and 
destroy the product. Every kilogram of a regulated substance or blend 
containing a regulated substance contained in or used in a product in 
contravention of this paragraph constitutes a separate violation of 
this subpart. Every kilogram of a regulated substance or blend 
containing a regulated substance intended for use in a product in 
contravention of this paragraph constitutes a separate violation of 
this subpart. Sale or distribution, or offer for sale or distribution, 
of products containing, using, or intended to use less than one 
kilogram of a regulated substance or blend containing a regulated 
substance in contravention of this paragraph constitutes a violation of 
this subpart.
    (k) (1) No person may provide false, inaccurate, or misleading 
information to EPA when reporting or providing any communication 
required under this subpart.
    (2) No person may falsely indicate through marketing, packaging, 
labeling, or other means that a product sold or distributed, or offered 
for sale or distribution, uses a regulated substance, blend containing 
a regulated substance, or substitute that differs from the regulated 
substance, blend containing a regulated substance, or substitute that 
is actually used.
    (l) Section (k) of the AIM Act states that sections 113, 114, 304, 
and 307 of the Clean Air Act (42 U.S.C. 7413, 7414, 7604, 7607) shall 
apply to this section and any rule, rulemaking, or regulation 
promulgated by the Administrator pursuant to this section as though 
this section were expressly included in title VI of that Act (42 U.S.C. 
7671 et seq.). Violation of this part is subject to Federal enforcement 
and the penalties laid out in section 113 of the Clean Air Act.


Sec.  84.56  Sectors and subsectors subject to use restrictions.

    (a) Refrigeration, air conditioning, and heat pump. Products in the 
following subsectors within the refrigeration, air conditioning, and 
heat pump sector are subject to the prohibitions in Sec.  84.54(a) and 
(b):
    (1) Industrial process refrigeration systems with refrigerant 
charge capacities of 200 pounds or greater, when using or intended to 
use a regulated substance or a blend containing a regulated substance 
with a global warming potential of 150 or greater, except as noted in 
Sec.  84.56(a)(3);
    (2) Industrial process refrigeration systems with refrigerant 
charge capacities less than 200 pounds, when using or intended to use a 
regulated substance or a blend containing a regulated substance with a 
global warming potential of 300 or greater, except as noted in Sec.  
84.56(a)(3);
    (3) Industrial process refrigeration, specifically the high 
temperature side of cascade systems used in industrial process 
refrigeration applications, when using or intended to use a regulated 
substance or a blend containing a regulated substance with a global 
warming potential of 300 or greater;
    (4) Retail food refrigeration--stand-alone units, when using or 
intended to use a regulated substance, or a blend containing a 
regulated substance with a global warming potential of 150 or greater;
    (5) Retail food refrigeration--refrigerated food processing and 
dispensing equipment, when using or intended to use a regulated 
substance or a blend containing a regulated substance with a global 
warming potential of 150 or greater;
    (6) Retail food refrigeration--supermarket systems with refrigerant 
charge capacities of 200 pounds or greater, when using or intended to 
use a regulated substance, or a blend containing a regulated substance 
with a global warming potential of 150 or greater, except as noted in 
Sec.  84.56(a)(8);
    (7) Retail food refrigeration--supermarket systems with refrigerant 
charge capacities less than 200 pounds, when using or intended to use a 
regulated substance or a blend containing a regulated substance with a 
global warming potential of 300 or greater, except as noted in Sec.  
84.56(a)(8);
    (8) Retail food refrigeration--supermarket, specifically the high 
temperature side of cascade systems used in retail food refrigeration--
supermarket applications, when using or intended to use a regulated 
substance or a blend containing a regulated substance with a global 
warming potential of 300 or greater;
    (9) Retail food refrigeration--remote condensing units with 
refrigerant charge capacities of 200 pounds or greater, when using or 
intended to use a regulated substance or a blend containing a regulated 
substance with a global warming potential of 150 or greater;
    (10) Retail food refrigeration--remote condensing units with 
refrigerant charge capacities less than 200 pounds, when using or 
intended to use a regulated substance or a blend containing a regulated 
substance with a global warming potential of 300 or greater;
    (11) Cold storage warehouse systems with refrigerant charge 
capacities of 200 pounds or greater, when using or intended to use a 
regulated substance or a blend containing a regulated substance with a 
global warming potential of 150 or greater, except as noted in Sec.  
84.56(a)(13);
    (12) Cold storage warehouse systems with refrigerant charge 
capacities less than 200 pounds, when using or intended to use a 
regulated substance, or a blend containing a regulated substance with a 
global warming potential of 300 or greater, except as noted in Sec.  
84.56(a)(13);
    (13) Cold storage warehouse, specifically the high temperature side 
of cascade systems used in cold storage facility applications, when 
using or intended to use a regulated substance or a blend containing a 
regulated substance with a global warming potential of 300 or greater;
    (14) Ice rink systems, when using or intended to use a regulated 
substance or a blend containing a regulated substance with a global 
warming potential of 150 or greater;
    (15) Automatic commercial ice machines--standalone, with 
refrigerant charge capacities of 500 grams or lower, when using or 
intended to use a regulated substance or a blend containing a regulated 
substance with a

[[Page 76811]]

global warming potential of 150 or greater;
    (16) Automatic commercial ice machines--standalone, with 
refrigerant charge capacities of more than 500 grams, when using or 
intended to use any of the following: R-404A, R-507, R-507A, R-428A, R-
422C, R-434A, R-421B, R-408A, R-422A, R-407B, R-402A, R-422D, R-421A, 
R-125/R-290/R-134a/R-600a (55/1/42.5/1.5), R-422B, R-424A, R-402B, GHG-
X5, R-417A, R-438A, R-410B, R-407A, R-410A, R-442A, R-417C, R-407F, R-
437A, R-407C, RS-24 (2004 formulation), and HFC-134a;
    (17) Automatic commercial ice machines--remote, when using or 
intended to use any of the following: R-404A, R-507, R-507A, R-428A, R-
422C, R-434A, R-421B, R-408A, R-422A, R-407B, R-402A, R-422D, R-421A, 
R-125/R-290/R-134a/R-600a (55/1/42.5/1.5), R-422B, R-424A, R-402B, GHG-
X5, R-417A, R-438A, and R-410B;
    (18) Transport refrigeration--intermodal containers, when using or 
intended to use a regulated substance or a blend containing a regulated 
substance with a global warming potential of 700 or greater;
    (19) Transport refrigeration--road systems, when using or intended 
to use any of the following: R-404A, R-507, R-507A, R-428A, R-422C, R-
434A, R-421B, R-408A, R-422A, R-407B, R-402A, R-422D, R-421A, R-125/R-
290/R-134a/R-600a (55/1/42.5/1.5), R-422B, R-424A, R-402B, GHG-X5, R-
417A, R-438A, and R-410B;
    (20) Transport refrigeration--marine systems, when using or 
intended to use any of the following: R-404A, R-507, R-507A, R-428A, R-
422C, R-434A, R-421B, R-408A, R-422A, R-407B, R-402A, R-422D, R-421A, 
R-125/R-290/R-134a/R-600a (55/1/42.5/1.5), R-422B, R-424A, R-402B, GHG-
X5, R-417A, R-438A, and R-410B;
    (21) Residential refrigeration systems, when using or intended to 
use a regulated substance or a blend containing a regulated substance 
with a global warming potential of 150 or greater;
    (22) Chillers--industrial process refrigeration, when using or 
intended to use a regulated substance or a blend containing a regulated 
substance with a global warming potential of 700 or greater, except 
where the temperature of the chilled fluid leaving the chiller is less 
than -58 [deg]F (-50 [deg]C);
    (23) Chillers--comfort cooling, when using or intended to use a 
regulated substance or a blend containing a regulated substance with a 
global warming potential of 700 or greater;
    (24) Residential and light commercial air-conditioning and heat 
pump systems, when using or intended to use a regulated substance or a 
blend containing a regulated substance with a global warming potential 
of 700 or greater, except for variable refrigerant flow air-
conditioning systems;
    (25) Residential dehumidifiers, when using or intended to use a 
regulated substance or a blend containing a regulated substance with a 
global warming potential of 700 or greater; and
    (26) Vending machines, when using or intended to use a regulated 
substance or a blend containing a regulated substance with a global 
warming potential of 150 or greater.
    (b) Motor vehicle air conditioning. Products in the following 
subsectors within the motor vehicle air conditioning subsector are 
subject to the prohibitions in Sec.  84.54(c), (d), (e), and (f), when 
using a regulated substance or a blend containing a regulated substance 
with a global warming potential of 150 or greater:
    (1) Light-duty passenger cars;
    (2) Light-duty trucks;
    (3) Medium-duty passenger vehicles;
    (4) Heavy-duty pickup trucks;
    (5) Complete heavy-duty vans; and
    (6) Certain nonroad vehicles (i.e., agricultural tractors greater 
than 40 horsepower; self-propelled agricultural machinery; compact 
equipment; construction, forestry, and mining equipment; and commercial 
utility vehicles only).
    (c) Foam blowing. Products in the following subsectors within the 
foam blowing sector are subject to the prohibitions in Sec.  84.54(a) 
and (b), when using a regulated substance or a blend containing a 
regulated substance with a global warming potential of 150 or greater:
    (1) Phenolic insulation board and bunstock;
    (2) Polystyrene--extruded boardstock and billet;
    (3) Rigid polyurethane--appliance foam;
    (4) Rigid polyurethane--slabstock and other;
    (5) Rigid polyurethane--commercial refrigeration;
    (6) Rigid polyurethane--sandwich panels;
    (7) Rigid polyurethane--marine flotation foam; and
    (8) Spray foam (i.e., rigid polyurethane high-pressure two-
component, rigid polyurethane low-pressure two-component, and rigid 
polyurethane one-component foam sealants).
    (i) Spray foam when used for space vehicles as defined in Sec.  
84.3 is excluded from this prohibition.
    (ii) [Reserved]
    (d) Aerosols. Products in the aerosol sector are subject to the 
prohibitions in Sec.  84.54(a) and (b), when using a regulated 
substance or a blend containing a regulated substance with a global 
warming potential of 150 or greater.
    (e) Full restrictions on the use of regulated substances. Products 
in the following subsectors within the foam blowing sector are subject 
to the prohibitions in Sec.  84.54(a) and (b), when using a regulated 
substance or a blend containing a regulated substance:
    (1) Flexible polyurethane;
    (2) Integral skin polyurethane;
    (3) Polyolefin;
    (4) Polystyrene--extruded sheet; and
    (5) Rigid polyurethane and polyisocyanurate laminated boardstock.


Sec.  84.58   Exemptions.

    The regulations under this subpart do not apply to:
    (a) Equipment in existence prior to December 27, 2020; and
    (b) Any product using a regulated substance or a blend containing a 
regulated substance, or intended to use a regulated substance or a 
blend containing a regulated substance, in an application listed at 
Sec.  84.13(a), for a year or years for which that application receives 
an application-specific allowance as defined at Sec.  84.3.


Sec.  84.60  Labeling.

    (a) Any regulated product within a sector or subsector listed in 
Sec.  84.56 that is imported, sold, distributed, offered for sale or 
distribution, or made available for sale must have a permanent label 
compliant with paragraph (b) stating:
    (1) The chemical name(s) or American Society of Heating, 
Refrigerating and Air-Conditioning Engineers designation of the 
regulated substance(s) or blend containing a regulated substance;
    (2) The global warming potential of the regulated substance or 
blend containing a regulated substance according to Sec.  84.66, 
labeled as ``global warming potential'';
    (3) The full date, or at minimum the four-digit year, of 
manufacture. For field charged equipment, this shall be the date of 
first charge and be completed at first charge.
    (4) An indication that the full refrigerant charge is either 
greater than two hundred pounds or less than two hundred pounds for 
products in the following subsectors:
    (i) Industrial process refrigeration;
    (ii) Retail food refrigeration--supermarket systems;
    (iii) Retail food refrigeration--remote condensing units; and

[[Page 76812]]

    (iv) Cold storage warehouses.
    (5) An indication that the full refrigerant charge is either 
greater than 500 grams or is equal to or less than 500 grams for 
products in the following subsector:
    (i) Automatic commercial ice machines--standalone.
    (ii) [Reserved]
    (b) The permanent label must be:
    (1) In English;
    (2) Durable and printed or otherwise labeled on, or affixed to, an 
external surface of the product;
    (3) Readily visible and legible;
    (4) Able to withstand open weather exposure without a substantial 
reduction in visibility or legibility; and
    (5) Displayed on a background of contrasting color.
    (c) For products sold or distributed, offered for sale or 
distribution, or made available electronically through online commerce, 
the label must be readily visible and legible in either photographs of 
the products, photographs of packaging materials that contain the 
required information, or an item description that contains the required 
information.
    (d) Any regulated product lacking a label will be presumed to use a 
regulated substance with a global warming potential that exceeds the 
limit in Sec.  84.56.


Sec.  84.62  Recordkeeping and reporting.

    (a) Reporting. (1) Any person, with the exception of persons in 
(a)(3), who imports or manufactures a product that uses or is intended 
to use a regulated substance or blend containing a regulated substance, 
must comply with the following recordkeeping and reporting 
requirements:
    (i) Reports must be submitted quarterly to EPA within 45 days of 
the end of the applicable reporting period;
    (ii) Reports, petitions, and any related supporting documents must 
be submitted electronically in a format specified by EPA;
    (iii) Each report shall be signed and attested by a responsible 
officer;
    (iv) Each report must provide a statement of certification that the 
data are accurate, the products use only allowed regulated substances 
and are properly labeled.
    (2) Reports provided to EPA must include the following information:
    (i) The sector and subsector of the product based on the 
categorization in Sec.  84.56;
    (ii) For each type of factory-charged equipment with a unique 
combination of charge size and regulated substance or blend containing 
a regulated substance, the identity of the regulated substance or blend 
containing a regulated substance and its global warming potential 
according to Sec.  84.66, charge size (holding charge, if applicable), 
and number of units imported or domestically manufactured;
    (iii) For each type of dry shipped equipment with a unique 
combination of intended charge size and intended regulated substance or 
blend containing a regulated substance, the identity of the intended 
regulated substance or blend containing a regulated substance and its 
global warming potential according to Sec.  84.66, charge size, and 
number of units imported or domestically manufactured;
    (iv) Total mass in metric tons of each regulated substance or blend 
containing a regulated substance imported or domestically manufactured 
in factory-charged equipment pursuant to this paragraph (a)(2); and the 
mass of the regulated substance or blend containing a regulated 
substance per unit of equipment type.
    (v) Dates on which the products were imported or domestically 
manufactured.
    (3) Persons that field-charge equipment in order to complete the 
manufacture of a product are not subject to the reporting provision in 
paragraph (a)(1) of this section.
    (4) Any failure by an importer or domestic manufacturer of a 
product that uses or is intended to use a regulated substance or a 
blend containing a regulated substance to report required information 
or provide accurate information pursuant to this section shall be 
considered a violation of this section.
    (b) Recordkeeping. (1) Each importer or domestic manufacturer of a 
product that uses or is intended to use a regulated substance or blend 
containing a regulated substance must retain the following records for 
a minimum of three years and make them available to EPA upon request:
    (i) Records that form the basis of the reports outlined in 
paragraph (a)(2) of this section; and
    (ii) The company or retailer to whom the regulated products were 
sold, distributed, or in any way conveyed to.
    (2) In addition to the records in paragraph (b)(1) of this section, 
importers of products containing a regulated substance or a blend 
containing a regulated substance must retain the following records for 
each import:
    (i) A copy of the bill of lading;
    (ii) The invoice;
    (iii) The U.S. Customs and Border Protection entry documentation;
    (iv) Port of entry through which the products passed;
    (v) Country of origin and if different the country of shipment to 
the United States.
    (3) Persons that field charge equipment in order to complete the 
manufacture of a product are not subject to the recordkeeping provision 
in paragraph (b)(1) of this section.


Sec.  84.64  Technology transitions petition requirements.

    (a) Required elements. Each petition sent to the Administrator 
under subsection (i) of the AIM Act shall include the following 
elements:
    (1) Identification of the sector or subsector. Petitioners must 
identify the sector(s) or subsector(s) for which restrictions on use of 
the regulated substance would apply.
    (2) Identification of restriction on the use of a regulated 
substance. For each sector or subsector identified in a petition, 
petitioners must identify the restriction on the use of a regulated 
substance through either of the following:
    (i) A global warming potential limit that will apply to regulated 
substances or blends containing regulated substances with global 
warming potentials at or above that limit.
    (ii) Identification of the regulated substance or blend containing 
regulated substance to be restricted and its global warming potential 
according to Sec.  84.66.
    (3) Identification of effective date. For each restriction on the 
use of a regulated substance contained in petitions, petitioners must 
include an effective date on which the regulated substance use 
restriction would commence, or state that the effective date should be 
one year after promulgation of the rule. Petitioners should provide 
information supporting the identified effective date.
    (4) Statement on the use of negotiated rulemaking. Petitioners must 
include a request that the Administrator negotiate with stakeholders in 
accordance with the negotiated rulemaking procedure provided for under 
subchapter III of chapter 5 of title 5, United States Code. Petitioners 
must include an explanation of their position to support or oppose the 
use of the negotiated rulemaking procedure.
    (5) Information supporting the requested restriction. For each 
requested restriction, to the extent practicable, petitioners must 
provide information related to the considerations provided in AIM Act 
subsection (i)(4) to facilitate the Agency's review of the petition.
    (b) Submission of petitions. Any petition submitted to the 
Administrator must be submitted electronically using the designated 
email address listed on

[[Page 76813]]

the EPA Technology Transitions website.


Sec.  84.66  Global warming potentials.

    (a) Regulated substances. The global warming potential of a 
regulated substance is the exchange value for the regulated substance 
listed in subsection (c) of the AIM Act and in appendix A to this part 
84.
    (b) Blends containing a regulated substance. For blends containing 
a regulated substance, the global warming potential of the blend is the 
sum of the global warming potentials of each constituent of the blend 
multiplied by that constituent's nominal mass fraction within the 
blend. The global warming potential of each constituent shall be as 
follows:
    (1) For each constituent within the blend that is a regulated 
substance, the global warming potential shall be as provided in Sec.  
84.66(a);
    (2) Where trans-dichloroethylene, also referred to as HCO-1130(E), 
is a constituent of the blend, the global warming potential of this 
constituent shall be one;
    (3) Where cis-1-chloro-2,3,3,3-tetrafluoropropene, also referred to 
as HCFO-1224yd(Z), is a constituent of the blend, the global warming 
potential of this constituent shall be five;
    (4) For each constituent that is not a regulated substance, is not 
HCO-1130(E), is not HCFO-1224yd(Z), but does have a global warming 
potential listed in the Fourth Assessment Report of the 
Intergovernmental Panel on Climate Change, the global warming potential 
of the constituent shall be that listed as the 100-year integrated 
global warming potential and shall be the net global warming potential;
    (5) For each constituent that is not a regulated substance, is not 
HCO-1130(E), is not HCFO-1224yd(Z), and is not listed in the Fourth 
Assessment Report of the Intergovernmental Panel on Climate Change, the 
global warming potential of the constituent shall be that listed as the 
100-year integrated global warming potential in the 2018 report by the 
World Meteorological Organization, titled ``Scientific Assessment of 
Ozone Depletion: 2018'';
    (6) For each constituent that is not a regulated substance, is not 
HCO-1130(E), is not HCFO-1224yd(Z), is not listed in the Fourth 
Assessment Report of the Intergovernmental Panel on Climate Change, and 
is not listed in the 2018 report by the World Meteorological 
Organization, the global warming potential of the constituent shall be 
that listed in Table A-1 to 40 CFR part 98, as it existed on December 
15, 2022, including the use of default global warming potential values 
for constituents that are not specifically listed in that table;
    (7) For cases in (4) through (6) above where a qualifier, including 
but not limited to approximately, ~, less than, <, much less than, <<, 
greater than, and >, is provided with a global warming potential value, 
the value shown shall be the global warming potential of the 
constituent without consideration of the qualifier; (8) For 
constituents that do not have a global warming potential as provided in 
paragraphs (b)(1) through (b)(7) of this section, the global warming 
potential of the constituent shall be zero.

[FR Doc. 2022-26981 Filed 12-12-22; 8:45 am]
BILLING CODE 6560-50-P