[Federal Register Volume 89, Number 205 (Wednesday, October 23, 2024)]
[Notices]
[Pages 84583-84592]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-24444]
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ENVIRONMENTAL PROTECTION AGENCY
[EPA-HQ-OAR-2021-0669; FRL-9116-06-OAR]
Phasedown of Hydrofluorocarbons: Notice of 2025 Allowance
Allocations for Production and Consumption of Regulated Substances
Under the American Innovation and Manufacturing Act of 2020, and Notice
of Final Actions Establishing Administrative Consequences
AGENCY: Environmental Protection Agency (EPA).
ACTION: Notice.
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SUMMARY: The Environmental Protection Agency (EPA) has issued calendar
year 2025 allowances for the production and consumption of
hydrofluorocarbons in accordance with the Agency's regulations. This
issuance of allowances is undertaken pursuant to the American
Innovation and Manufacturing Act, which directs the Environmental
Protection Agency by October 1 of each calendar year to determine the
quantity of production and consumption allowances for the following
calendar year. In this notice, the Agency is also providing notice of
separate Agency actions previously taken to establish administrative
consequences for specific entities. These previously finalized actions
withheld, retired, or revoked the identified entities' newly-issued
calendar year 2025 allowances in accordance with the administrative
consequence regulatory provisions.
FOR FURTHER INFORMATION CONTACT: Andy Chang, U.S. Environmental
Protection Agency, Stratospheric Protection Division, telephone number:
202-564-6658; email address: [email protected]. You may also visit
EPA's website at https://www.epa.gov/climate-hfcs-reduction for further
information.
SUPPLEMENTARY INFORMATION: Subsection (e)(2)(D)(i) of the American
Innovation and Manufacturing Act of 2020 (AIM Act) directs the
Environmental Protection Agency (EPA) to determine, by October 1 of
each calendar year, the quantity of allowances for the production and
consumption of regulated substances that may be used for the following
calendar year. EPA has codified the production and consumption
baselines and phasedown schedules for regulated substances in 40 CFR
84.7. Under the phasedown schedule, for 2025, total production
allowances may not exceed 229,521,263 metric tons of exchange value
equivalent (MTEVe) and total consumption allowances may not exceed
181,522,990 MTEVe.
EPA regulations at 40 CFR part 84, subpart A, outline the process
by which the Agency determines the number of allowances each entity is
allocated. EPA allocated allowances consistent with the regulatory
requirements, and has posted entity-specific allowance allocations on
its website at https://www.epa.gov/climate-hfcs-reduction. An allowance
allocated under the AIM Act does not constitute a property right and is
a limited authorization for the production or consumption of a
regulated substance.
Note that while allowances may be transferred or conferred once
they are allocated, they can only be expended to cover imports and
production in the calendar year for which they are allocated. In other
words, calendar year 2025 allowances may only be expended for
production and import of bulk HFCs between January 1, 2025, and
December 31, 2025.
Application-Specific Allowances
EPA established the methodology for issuing application-specific
allowances in the 2021 final rule titled Phasedown of
Hydrofluorocarbons: Establishing the Allowance Allocation and Trading
Program Under the American Innovation and Manufacturing Act (86 FR
55116, Oct. 5, 2021) and codified the methodology for allocations in 40
CFR 84.13. Because application-specific allowances can be expended to
either produce or import HFCs, and application-specific allowances must
be provided from within the overall annual production and consumption
caps, EPA subtracts the amount of application-specific allowances
allocated from both the production and consumption general allowance
pools. EPA issues application-specific allowances to end users in five
applications established by the AIM Act: propellants in metered dose
inhalers (MDIs), defense sprays, structural composite preformed
polyurethane foam for marine use and trailer use, etching of
semiconductor material or wafers and the cleaning of
[[Page 84584]]
chemical vapor deposition chambers within the semiconductor
manufacturing sector, and onboard aerospace fire suppression.
Additionally, EPA issues application-specific allowances to the U.S.
Department of Defense for mission-critical military end uses.
Applying the methodology codified in 40 CFR 84.13, EPA allocated
the number of application-specific allowances shown in Table 1.
Table 1--Number of Calendar Year 2025 Application-Specific Allowances Allocated Per Entity
----------------------------------------------------------------------------------------------------------------
Application-specific
Entity Application allowances (MTEVe)
allocated
----------------------------------------------------------------------------------------------------------------
Analog Devices................................. Semiconductors........................ 15,998.9
Applied Materials.............................. Semiconductors........................ 2,290.4
Armstrong Pharmaceuticals...................... Propellants in MDIs................... 237,054.0
ASML US........................................ Semiconductors........................ 1,033.8
AstraZeneca Pharmaceuticals.................... Propellants in MDIs................... 2,677.0
Aurobindo Pharma USA........................... Propellants in MDIs................... 23,196.2
Compsys........................................ Structural Composite Preformed 16,066.0
Polyurethane Foam.
Defense Technology............................. Defense Sprays........................ 5,297.2
Diodes Incorporated............................ Semiconductors........................ 1,410.2
General Electric............................... Semiconductors........................ 147.7
GlaxoSmithKline................................ Propellants in MDIs................... 507,289.7
GlobalFoundries................................ Semiconductors........................ 117,767.1
Hitachi High-Tech America...................... Semiconductors........................ 113.0
IBM Corporation................................ Semiconductors........................ 613.0
Intel Corporation.............................. Semiconductors........................ 528,200.3
Invagen Pharmaceuticals........................ Propellants in MDIs................... 59,385.2
Jireh Semiconductor............................ Semiconductors........................ 2,315.5
Keysight Technologies.......................... Semiconductors........................ 538.8
Kindeva Drug Delivery.......................... Propellants in MDIs................... 492,000.0
LA Semiconductor............................... Semiconductors........................ 2,067.3
Lam Research Corp.............................. Semiconductors........................ 45,436.9
Lupin.......................................... Propellants in MDIs................... 19,031.0
Magic Leap..................................... Semiconductors........................ 516.9
Medtronic Tempe Campus......................... Semiconductors........................ 455.1
Microchip Technology........................... Semiconductors........................ 7,387.2
Micron Technology.............................. Semiconductors........................ 21,068.2
Newport Fab DBA TowerJazz...................... Semiconductors........................ 4,250.5
Northrop Grumman Corporation................... Semiconductors........................ 2,793.6
NXP Semiconductor.............................. Semiconductors........................ 34,081.1
Polar Semiconductor............................ Semiconductors........................ 9,151.7
Proteng Distribution........................... Onboard Aerospace Fire Suppression.... 6,723.4
Qorvo Texas.................................... Semiconductors........................ 470.0
Renesas Electronics America.................... Semiconductors........................ 940.1
Samsung Austin Semiconductor................... Semiconductors........................ 235,624.8
Security Equipment Corporation................. Defense Sprays........................ 93,229.5
Semiconductor Components Industries DBA ON Semiconductors........................ 35,794.8
Semiconductor.
SkyWater Technology............................ Semiconductors........................ 10,463.5
Skyworks Solutions............................. Semiconductors........................ 2,067.6
Taiwan Semiconductor Manufacturing Company Semiconductors........................ 120,485.4
Arizona Corporation (TSMC Arizona Corporation).
Texas Instruments.............................. Semiconductors........................ 214,219.4
The Research Foundation for The State Semiconductors........................ 11,678.4
University of New York at NY CREATES.
Tokyo Electron U.S. Holdings................... Semiconductors........................ 5,123.9
Tower Semiconductor San Antonio................ Semiconductors........................ 3,290.4
TSMC Washington (formerly WaferTech)........... Semiconductors........................ 10,384.5
UC San Diego................................... Semiconductors........................ 940.1
UDAP Industries................................ Defense Sprays........................ 110,727.8
Wabash National Corporation.................... Structural Composite Preformed 49,299.5
Polyurethane Foam.
Wolfspeed...................................... Semiconductors........................ 15,779.7
X-FAB Texas.................................... Semiconductors........................ 1,262.5
Department of Defense.......................... Mission-critical Military End Uses.... 6,238,033.5
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Total Issued............................... All................................... 9,326,172.3
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General Pool Allowances
EPA's 2023 final rule titled Phasedown of Hydrofluorocarbons:
Allowance Allocation Methodology for 2024 and Later Years (88 FR 46836,
July 20, 2023) updated the methodology for how the Agency would issue
production and consumption allowances for 2024 through 2028. These
updates are codified in 40 CFR 84.9 (production) and 40 CFR 84.11
(consumption), and EPA is issuing allowances to entities who meet the
criteria in the regulations, including those who were previously issued
consumption allowances as new market entrants pursuant to 40 CFR 84.15.
[[Page 84585]]
Applying the methodology codified in 40 CFR 84.9, EPA allocated the
number of production allowances shown in Table 2.
Table 2--Number of Calendar Year 2025 Production Allowances Allocated
per Entity
------------------------------------------------------------------------
Production
Entity allowances allocated
(MTEVe)
------------------------------------------------------------------------
Application-specific allowances................... \a\ 9,326,172.3
Arkema............................................ 26,569,642.0
Chemours.......................................... 49,257,821.8
Honeywell International........................... 111,508,876.7
Iofina Chemical................................... 1,142.5
Mexichem Fluor DBA Koura.......................... 32,857,607.7
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Total Issued.................................. 229,521,263.0
------------------------------------------------------------------------
\a\ See Table 1; this value corresponds to the total number of
application-specific allowances allocated.
Applying the methodology codified in 40 CFR 84.11, EPA allocated
the number of consumption allowances shown in Table 3.
Table 3--Number of Calendar Year 2025 Consumption Allowances Allocated
per Entity
------------------------------------------------------------------------
Consumption allowances
Entity allocated (MTEVe)
------------------------------------------------------------------------
Application-specific allowances................ \a\ 9,326,172.3
A.C.S. Reclamation & Recovery (Absolute Chiller 126,446.8
Services).....................................
Ability Refrigerants........................... 126,446.8
ACT Commodities................................ 49.2
Advance Auto Parts............................. 452,130.1
Advanced Specialty Gases....................... 180,476.2
AFK & Co....................................... 122,233.6
AFS Cooling.................................... 126,446.8
A-Gas.......................................... 2,156,453.7
Air Liquide USA................................ 315,346.4
American Air Components........................ 126,446.8
Arkema......................................... 19,656,867.3
Artsen......................................... 649,992.4
Automart Distributors DBA Refrigerant Plus..... 126,446.8
AutoZone Parts................................. 1,278,314.6
AW Product Sales & Marketing................... 76,455.4
Bluon.......................................... 21,165.2
CC Packaging................................... 122,653.4
Chemours....................................... 21,679,708.6
Chemp Technology............................... 126,446.8
ChemPenn....................................... 14,060.4
ComStar International.......................... 227,930.8
Creative Solution.............................. 126,446.8
Cross World Group.............................. 126,446.8
Daikin America................................. 1,974,152.3
EDX Industry................................... 363,578.9
Electronic Fluorocarbons....................... 65,968.2
Fireside Holdings DBA American Refrigerants.... 126,433.2
First Continental International................ 486,962.7
FluoroFusion Specialty Chemicals............... 1,614,609.9
Freskoa USA.................................... 126,446.8
GlaxoSmithKline................................ 340,497.3
Golden Refrigerant............................. 126,446.8
Harp USA....................................... 484,265.5
Honeywell International........................ 52,089,837.5
Hudson Technologies............................ 2,129,502.6
Hungry Bear.................................... 126,446.8
ICool USA...................................... 2,155,102.6
IGas Holdings.................................. 16,514,965.1
Iofina Chemical................................ 800.3
Kidde-Fenwal................................... 126,446.8
Lenz Sales & Distribution...................... 702,334.8
Lina Trade..................................... 126,446.8
Linde.......................................... 336,839.5
Matheson Tri-Gas............................... 21,582.0
MEK Chemical Corporation....................... 52,517.1
Meraki Group................................... 126,446.8
[[Page 84586]]
Metalcraft..................................... 101,789.7
Mexichem Fluor DBA Koura....................... 16,117,355.6
Mondy Global................................... 201,598.7
National Refrigerants.......................... 12,528,840.8
Nature Gas Import and Export................... 518,455.3
North American Refrigerants.................... 126,446.8
O23 Energy Plus................................ 126,446.8
Perfect Score Too DBA Perfect Cycle............ 23,946.5
Reclamation Technologies....................... 378,076.0
Resonac America................................ 42,007.0
RGAS........................................... 2,893,842.3
RMS of Georgia................................. 1,042,507.0
Sciarra Laboratories........................... 5,500.4
SDS Refrigerant Services....................... 126,446.8
Solvay Fluorides............................... 697,362.9
Summit Refrigerants............................ 126,446.8
SynAgile Corporation........................... 711.3
Technical Chemical............................. 2,160,215.3
TradeQuim...................................... 126,446.8
Transocean Offshore Deepwater Drilling......... 10.6
Tulstar Products............................... 464,363.5
Tyco Fire Products............................. 126,446.8
USSC Acquisition Corp.......................... 83,107.8
Walmart........................................ 1,442,587.7
Waysmos USA.................................... 354,712.2
Wego Chemical Group............................ 35,773.6
Weitron........................................ 4,009,333.5
Wesco HMB...................................... 126,446.8
Wilhelmsen Ships Service....................... 25,550.4
------------------------
Total Issued............................... 181,522,990.0
------------------------------------------------------------------------
\a\ See Table 1; this value corresponds to the total number of
application-specific allowances allocated.
Administrative Consequences
Separate from the allocation of calendar year 2025 allowances, EPA
hereby provides notice that it also took final actions establishing
administrative consequences for specific entities. Each action, which
EPA took through a letter issued to the relevant entity, is a separate
final action informing the recipient entity of an administrative
consequence. The requirements pertaining to administrative consequences
are codified in 40 CFR 84.35. Under this provision, EPA can retire,
revoke, or withhold the allocation of allowances, or ban an entity from
receiving, transferring, or conferring allowances. A retired allowance
is one that must go unused and expire at the end of the year; a revoked
allowance is one that EPA takes back from an allowance holder and
redistributes to all the other eligible allowance holders; and a
withheld allowance is one that is retained by the Agency until an
allowance holder that has failed to meet a regulatory requirement comes
back into compliance, at which point EPA allocates it to the allowance
holder. More information on EPA's approach to administrative
consequences can be found at 86 FR 55168.
EPA finalized administrative consequences for certain entities that
were allocated application-specific allowances, listed in Table 1 for
calendar year 2025. These entities failed to submit auditing reports as
required in 40 CFR 84.33 and therefore EPA has withheld a portion of
their allowances until the missing reports are submitted and
subsequently verified by EPA: ASML US,\1\ Proteng Distribution, and
Wolfspeed. These final actions became effective on September 30, 2024,
and are summarized below in Table 4.
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\1\ ASML US submitted an auditing report on September 27, 2024,
and the Agency is reviewing that submission.
Table 4--Summary of Administrative Consequences Taken Pursuant to 40 CFR 84.35 for Calendar Year 2025
Application-Specific Allowances, Effective September 30, 2024
----------------------------------------------------------------------------------------------------------------
Number of affected Administrative
Entity allowances (MTEVe) consequence action Reasoning
----------------------------------------------------------------------------------------------------------------
ASML US \a\......................... 206.8 Withhold............... Failure to submit auditing
report as required in 40
CFR 84.33.
Proteng Distribution................ 1,344.7 Withhold............... Failure to submit auditing
report as required in 40
CFR 84.33.
[[Page 84587]]
Wolfspeed........................... 3,155.9 Withhold............... Failure to submit auditing
report as required in 40
CFR 84.33.
----------------------------------------------------------------------------------------------------------------
\a\ ASML US submitted an auditing report on September 27, 2024, and the Agency is reviewing that submission.
EPA finalized additional administrative consequences for certain
entities that were allocated consumption allowances, as listed in Table
3 for calendar year 2025. These final actions affecting calendar year
2025 allowances became effective on September 30, 2024. Specifically,
the following entities failed to submit auditing reports as required in
40 CFR 84.33 and therefore EPA has withheld a portion of their
consumption allowances until the missing reports are filed and verified
by EPA: Solvay Fluorides and Wilhelmsen Ships Service. The following
entities imported regulated HFCs without expending the requisite number
of consumption allowances at the time of import and therefore EPA has
retired and/or revoked consumption allowances commensurate with the
quantities of regulated substances imported without allowances: AFK &
Co. and AutoZone Parts. Lastly, Wesco HMB sold, distributed, or offered
for sale or distribution, regulated HFCs that had previously been
imported in violation of EPA's import requirements contained in 40 CFR
84.5(b). A summary of these administrative consequences is included in
Table 5.
Table 5--Summary of Administrative Consequences Pursuant to 40 CFR 84.35 for Calendar Year 2025 Consumption
Allowances, Effective September 30, 2024
----------------------------------------------------------------------------------------------------------------
Number of affected Administrative
Entity allowances (MTEVe) consequence action Reasoning
----------------------------------------------------------------------------------------------------------------
AFK & Co............................ 941.4 Retire Imported regulated HFCs
\a\ 706.1 Revoke without expending
requisite number of
allowances.
AutoZone Parts...................... 21,763.1 Retire Imported regulated HFCs
\b\ 10,881.6 Revoke without expending
requisite number of
allowances.
Wesco HMB........................... 5,432.1 Retire Sold, distributed, or
\c\ 2,716.1 Revoke offered for sale or
distribution regulated
HFCs that were imported
without the requisite
expenditure of allowances.
Solvay Fluorides.................... 139,472.6 Withhold Failure to submit auditing
report as required in 40
CFR 84.33.
Wilhelmsen Ships Service............ 5,110.1 Withhold Failure to submit auditing
report as required in 40
CFR 84.33.
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\a\ This value corresponds to 75% of the full amount of consumption without requisite allowances at the time of
import. As stated in the HFC Allocation Framework Rule (86 FR 55116, Oct. 5, 2021), EPA explained it would
take a 50% premium in first instances of administrative consequences. However, EPA has previously finalized
administrative consequences for AFK & Co. for the same reasoning.
\b\ As stated in the HFC Allocation Framework Rule (86 FR 55116, Oct. 5, 2021), EPA explained it would take a
50% premium in first instances of administrative consequences. This value corresponds to 50% of the full
amount of consumption without requisite allowances at the time of import.
\c\ As stated in the HFC Allocation Framework Rule (86 FR 55116, Oct. 5, 2021), EPA explained it would take a
50% premium in first instances of administrative consequences. This value corresponds to 50% of the full
amount of regulated HFCs on a MTEVe-weighted basis that were sold, distributed, or offered for sale or
distribution.
The Agency also finalized administrative consequences for Fike
Corporation and Firetrace USA. These entities have historically
submitted requests for additional consumption allowances (RACAs) under
EPA's regulations contained in 40 CFR 84.17, and failed to submit
auditing reports as required in 40 CFR 84.33. Therefore, EPA will
withhold a portion of any calendar year 2025 consumption allowances
issued to these entities until the missing reports are submitted and
subsequently verified by EPA. A summary is reflected below in Table 6.
Table 6--Summary of Administrative Consequences Pursuant to 40 CFR 84.35 for RACA Submitters, Effective
September 30, 2024
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Administrative
Entity Number of affected allowances Applicable consequence Reasoning
(MTEVe) year(s) action
----------------------------------------------------------------------------------------------------------------
Fike Corporation.............. 20% of granted RACAs........... 2025 Withhold Failure to
submit auditing
report as
required in 40
CFR 84.33.
[[Page 84588]]
Firetrace USA................. 20% of granted RACAs........... 2025 Withhold Failure to
submit auditing
report as
required in 40
CFR 84.33.
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A comprehensive summary of all finalized administrative
consequences with an effective date of September 30, 2024, that affect
calendar year 2025 HFC allowances is contained in Table 7.
Table 7--Calendar Year 2025 Allowances Adjusted Through Finalized Administrative Consequences Pursuant to 40 CFR
84.35
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Administrative Number of affected
Entity Allowance type consequence action allowances (MTEVe)
----------------------------------------------------------------------------------------------------------------
AFK & Co............................. Consumption............ Retire................. 941.4
Revoke................. 706.1
ASML US \a\.......................... Application-specific... Withhold............... 206.8
AutoZone Parts....................... Consumption............ Retire................. 21,763.1
Revoke................. 10,881.6
Fike Corporation..................... Consumption............ Withhold............... 20% of granted RACAs
Firetrace USA........................ Consumption............ Withhold............... 20% of granted RACAs
Proteng Distribution................. Application-specific... Withhold............... 1,344.7
Solvay Fluorides..................... Consumption............ Withhold............... 139,472.6
Wesco HMB............................ Consumption............ Retire................. 5,432.1
Revoke................. 2,716.1
Wilhelmsen Ships Service............. Consumption............ Withhold............... 5,110.1
Wolfspeed............................ Application-specific... Withhold............... 3,155.9
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\a\ ASML US submitted an auditing report on September 27, 2024, and the Agency is reviewing that submission.
In addition to the administrative consequences listed in Table 7,
142,694.8 MTEVe of consumption allowances were retired and 509,608.2
MTEVe were revoked, consistent with previously finalized administrative
consequences described in Phasedown of Hydrofluorocarbons: Notice of
2024 Allowance Allocations for Production and Consumption of Regulated
Substances Under the American Innovation and Manufacturing Act of 2020,
and Notice of Final Administrative Consequences (88 FR 72060, Oct. 19,
2023). The entities subject to those prior actions include American Air
Components, Bluon, Honeywell International, and Resonac America.
Adjustments to Application-Specific Allowances
As described above, certain entities listed in Table 1 have had a
portion of their calendar year 2025 allowances withheld for not
submitting the auditing report required in 40 CFR 84.33. These
allowances will be withheld until the missing reports are submitted and
subsequently verified by EPA. Accordingly, Table 8 shows the number of
application-specific allowances available to each entity as a result of
finalized administrative consequences.
Table 8--Number of Calendar Year 2025 Application-Specific Allowances
Available to Each Entity as of October 1, 2024, Adjusted for
Administrative Consequences
------------------------------------------------------------------------
Available application-
specific allowances
Entity Application (MTEVe), adjusting for
administrative
consequences
------------------------------------------------------------------------
Analog Devices............... Semiconductors.. 15,998.9
Applied Materials............ Semiconductors.. 2,290.4
Armstrong Pharmaceuticals.... Propellants in 237,054.0
MDIs.
ASML US \a\.................. Semiconductors.. 827.0
AstraZeneca Pharmaceuticals.. Propellants in 2,677.0
MDIs.
Aurobindo Pharma USA......... Propellants in 23,196.2
MDIs.
Compsys...................... Structural 16,066.0
Composite
Preformed
Polyurethane
Foam.
Defense Technology........... Defense Sprays.. 5,297.2
Diodes Incorporated.......... Semiconductors.. 1,410.2
General Electric............. Semiconductors.. 147.7
GlaxoSmithKline.............. Propellants in 507,289.7
MDIs.
[[Page 84589]]
GlobalFoundries.............. Semiconductors.. 117,767.1
Hitachi High-Tech America.... Semiconductors.. 113.0
IBM Corporation.............. Semiconductors.. 613.0
Intel Corporation............ Semiconductors.. 528,200.3
Invagen Pharmaceuticals...... Propellants in 59,385.2
MDIs.
Jireh Semiconductor.......... Semiconductors.. 2,315.5
Keysight Technologies........ Semiconductors.. 538.8
Kindeva Drug Delivery........ Propellants in 492,000.0
MDIs.
LA Semiconductor............. Semiconductors.. 2,067.3
Lam Research Corp............ Semiconductors.. 45,436.9
Lupin........................ Propellants in 19,031.0
MDIs.
Magic Leap................... Semiconductors.. 516.9
Medtronic Tempe Campus....... Semiconductors.. 455.1
Microchip Technology......... Semiconductors.. 7,387.2
Micron Technology............ Semiconductors.. 21,068.2
Newport Fab DBA TowerJazz.... Semiconductors.. 4,250.5
Northrop Grumman Corporation. Semiconductors.. 2,793.6
NXP Semiconductor............ Semiconductors.. 34,081.1
Polar Semiconductor.......... Semiconductors.. 9,151.7
Proteng Distribution......... Onboard 5,378.7
Aerospace Fire
Suppression.
Qorvo Texas.................. Semiconductors.. 470.0
Renesas Electronics America.. Semiconductors.. 940.1
Samsung Austin Semiconductor. Semiconductors.. 235,624.8
Security Equipment Defense Sprays.. 93,229.5
Corporation.
Semiconductor Components Semiconductors.. 35,794.8
Industries DBA ON
Semiconductor.
SkyWater Technology.......... Semiconductors.. 10,463.5
Skyworks Solutions........... Semiconductors.. 2,067.6
Taiwan Semiconductor Semiconductors.. 120,485.4
Manufacturing Company
Arizona Corporation (TSMC
Arizona Corporation).
Texas Instruments............ Semiconductors.. 214,219.4
The Research Foundation for Semiconductors.. 11,678.4
The State University of New
York at NY CREATES.
Tokyo Electron U.S. Holdings, Semiconductors.. 5,123.9
Inc..
Tower Semiconductor San Semiconductors.. 3,290.4
Antonio.
TSMC Washington (formerly Semiconductors.. 10,384.5
WaferTech).
UC San Diego................. Semiconductors.. 940.1
UDAP Industries.............. Defense Sprays.. 110,727.8
Wabash National Corporation.. Structural 49,299.5
Composite
Preformed
Polyurethane
Foam.
Wolfspeed.................... Semiconductors.. 12,623.8
X-FAB Texas.................. Semiconductors.. 1,262.5
Department of Defense........ Mission-critical 6,238,033.5
Military End
Uses.
------------------------
Total Available.......... All............. 9,321,464.9
------------------------------------------------------------------------
\a\ ASML US submitted an auditing report on September 27, 2024, and the
Agency is reviewing that submission.
Adjustments to Consumption Allowances
An entity is eligible to receive redistributed allowances if they
were not subject to administrative consequences that took effect on the
same day (except entities that had allowances withheld). For example,
if EPA revoked 50 MTEVe allowances from company A and 50 MTEVe
allowances from company B, effective on the same day, EPA's
redistribution of that single pool of 100 MTEVe allowances would go to
all general pool allowances holders except company A and company B.
This applies regardless of whether the revocation happens in one year
or over multiple years. However, entities who only had allowances
withheld by the Agency as a result of failure to comply with the
auditing requirements as contained in 40 CFR 84.33 were eligible to
receive allowances that were redistributed.
For 2025, the total number of revoked and redistributed allowances
is 523,912.0 MTEVe, which are being apportioned to eligible consumption
allowance holders based on their relative market share, and the total
number of retired allowances in 2025 is 170,831.4 MTEVe. These amounts
are the result of administrative consequences with two distinct
effective dates. For more information on the administrative
consequences finalized in 2023 that impact calendar year 2025
consumption allowances, see Phasedown of Hydrofluorocarbons: Notice of
2024 Allowance Allocations for Production and Consumption of Regulated
Substances Under the American Innovation and Manufacturing Act of 2020,
and Notice of Final Administrative Consequences (88 FR 72060, Oct. 19,
2023).
Table 9 reflects consumption allowance totals available to each
entity as of October 1, 2024, after taking into account the
administrative
[[Page 84590]]
consequences and eligibility described elsewhere in this notice.
Table 9--Total Number of Calendar Year 2025 Consumption Allowances
Available to Each Entity as of October 1, 2024, Adjusted for
Administrative Consequences
------------------------------------------------------------------------
Available consumption
allowances, adjusted
Entity for all administrative
consequences (MTEVe)
------------------------------------------------------------------------
Application-specific allowances.............. \a\ 9,321,464.9
A.C.S. Reclamation & Recovery (Absolute 127,006.0
Chiller Services)...........................
Ability Refrigerants......................... 127,006.0
ACT Commodities.............................. 49.4
Advance Auto Parts........................... 454,129.5
Advanced Specialty Gases..................... 181,274.3
AFK & Co..................................... 120,586.1
AFS Cooling.................................. 127,006.0
A-Gas........................................ 2,165,990.0
Air Liquide USA.............................. 316,740.9
American Air Components \b\.................. 0.0
Arkema....................................... 19,743,794.0
Artsen....................................... 650,046.9
Automart Distributors DBA Refrigerant Plus... 127,006.0
AutoZone Parts............................... 1,251,215.7
AW Product Sales & Marketing................. 76,793.5
Bluon \b\.................................... 0.0
CC Packaging................................. 123,195.8
Chemours..................................... 21,775,580.8
Chemp Technology............................. 127,006.0
ChemPenn..................................... 14,122.6
ComStar International........................ 228,938.8
Creative Solution............................ 127,006.0
Cross World Group............................ 127,006.0
Daikin America............................... 1,982,882.5
EDX Industry................................. 365,186.7
Electronic Fluorocarbons..................... 65,973.7
Fireside Holdings DBA American Refrigerants.. 126,992.3
First Continental International.............. 489,116.1
FluoroFusion Specialty Chemicals............. 1,614,745.2
Freskoa USA.................................. 127,006.0
GlaxoSmithKline.............................. 342,003.0
Golden Refrigerant........................... 127,006.0
Harp USA..................................... 486,407.0
Honeywell International...................... 51,631,535.0
Hudson Technologies.......................... 2,138,919.7
Hungry Bear.................................. 127,006.0
ICool USA.................................... 2,164,632.9
IGas Holdings................................ 16,587,997.7
Iofina Chemical.............................. 803.9
Kidde-Fenwal................................. 127,006.0
Lenz Sales & Distribution.................... 705,440.7
Lina Trade................................... 127,006.0
Linde........................................ 338,329.0
Matheson Tri-Gas............................. 21,677.4
MEK Chemical Corporation..................... 52,749.3
Meraki Group................................. 127,006.0
Metalcraft................................... 102,239.8
Mexichem Fluor DBA Koura..................... 16,188,629.9
Mondy Global................................. 202,490.2
National Refrigerants........................ 12,584,245.9
Nature Gas Import and Export................. 520,748.2
North American Refrigerants.................. 127,006.0
O23 Energy Plus.............................. 127,006.0
Perfect Score Too DBA Perfect Cycle.......... 24,052.4
Reclamation Technologies..................... 379,747.9
Resonac America \b\.......................... 0.0
RGAS......................................... 2,906,639.4
RMS of Georgia............................... 1,047,117.2
Sciarra Laboratories......................... 5,524.8
SDS Refrigerant Services..................... 127,006.0
Solvay Fluorides............................. 560,974.1
Summit Refrigerants.......................... 127,006.0
[[Page 84591]]
SynAgile Corporation......................... 714.5
Technical Chemical........................... 2,169,768.2
TradeQuim.................................... 127,006.0
Transocean Offshore Deepwater Drilling....... 10.6
Tulstar Products............................. 466,417.0
Tyco Fire Products........................... 127,006.0
USSC Acquisition Corp........................ 83,475.4
Walmart...................................... 1,448,967.1
Waysmos USA.................................. 356,280.8
Wego Chemical Group.......................... 35,931.8
Weitron...................................... 4,027,063.6
Wesco HMB.................................... 118,847.2
Wilhelmsen Ships Service..................... 20,553.2
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\a\ See Table 8; this value corresponds to the total number of
application-specific allowances available on October 1, 2024, after
adjusting for administrative consequences.
\b\ While these entities were eligible for revoked and redistributed
consumption allowances with an effective date of September 30, 2024,
the Agency has previously finalized administrative consequences for
them stating that ``[EPA] [w]ill retire and revoke allowances until
the full administrative consequence is covered'' (88 FR 72060, Oct.
19, 2023).
Judicial Review
The AIM Act provides that certain sections of the Clean Air Act
(CAA) ``shall apply to'' the AIM Act and actions ``promulgated by the
Administrator of [EPA] pursuant to [the AIM Act] as though [the AIM
Act] were expressly included in title VI of [the CAA].'' 42 U.S.C.
7675(k)(1)(C). Among the applicable sections of the CAA is section 307,
which includes provisions governing judicial review. 42 U.S.C.
7607(b)(1). Section 307(b)(1) provides, in part, that petitions for
review must only be filed in the United States Court of Appeals for the
District of Columbia Circuit: (i) When the agency action consists of
``nationally applicable regulations promulgated, or final actions
taken, by the Administrator,'' or (ii) when such action is locally or
regionally applicable, but ``such action is based on a determination of
nationwide scope or effect and if in taking such action the
Administrator finds and publishes that such action is based on such a
determination.'' For locally or regionally applicable final actions,
the CAA reserves to the EPA complete discretion whether to invoke the
exception in (ii).
The issuance of calendar year 2025 allowances for the production
and consumption of hydrofluorocarbons herein noticed is ``nationally
applicable'' within the meaning of CAA section 307(b)(1). The AIM Act
imposes a national cap on the total number of allowances available for
each year for all entities nationwide. 42 U.S.C. 7675(e)(2)(B)-(D). For
2025, there was a national pool of 229,521,263 production allowances
and 181,522,990 consumption allowances available to distribute. The
allocation action noticed herein distributed that finite set of
allowances consistent with the methodology EPA established in the
nationally applicable framework rule. As such, the allowance allocation
is the division and assignment of a single, nationwide pool of HFC
allowances to entities across the country according to the uniform,
national methodology established in EPA's regulations. Each entity's
allowance allocation is a relative share of that pool; thus, any
additional allowances awarded to one entity directly affects the
allocations to others.
In the alternative, to the extent a court finds the final action to
be locally or regionally applicable, the Administrator is exercising
the complete discretion afforded to him under the CAA to make and
publish a finding that the allocation action is based on a
determination of ``nationwide scope or effect'' within the meaning of
CAA section 307(b)(1).\2\ In deciding to invoke this exception, the
Administrator has taken into account a number of policy considerations,
including his judgment regarding the benefit of obtaining the D.C.
Circuit's authoritative centralized review, rather than allowing
development of the issue in other contexts, in order to ensure
consistency in the Agency's approach to allocation of allowances in
accordance with EPA's national regulations in 40 CFR part 84. The final
action treats all affected entities consistently in how the 40 CFR part
84 regulations are applied. The allowance allocation is the division
and assignment of a single, nationwide pool of HFC allowances to
entities across the country according to the uniform, national
methodology established in EPA's regulations, and each entity's
allowance allocation is a relative share of that pool; thus, any
additional allowances awarded to one entity directly affect the
allocations to others. The Administrator finds that this is a matter on
which national uniformity is desirable to take advantage of the D.C.
Circuit's administrative law expertise and facilitate the orderly
development of the basic law under the AIM Act and EPA's implementing
regulations. The Administrator also finds that consolidated review of
the action in the D.C. Circuit will avoid piecemeal litigation in the
regional circuits, further judicial economy, and eliminate the risk of
inconsistent results for different regulated entities. The
Administrator also finds that a nationally consistent approach to the
allocation of allowances constitutes the best use of agency resources.
The Administrator is publishing his finding that the allocation action
is based on a determination of nationwide scope or effect in the
Federal Register as part of this notice.
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\2\ In the report on the 1977 Amendments that revised section
307(b)(1) of the CAA, Congress noted that the Administrator's
determination that the ``nationwide scope or effect'' exception
applies would be appropriate for any action that has a scope or
effect beyond a single judicial circuit. See H.R. Rep. No. 95-294 at
323, 324, reprinted in 1977 U.S.C.C.A.N. 1402-03.
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[[Page 84592]]
For these reasons, the final action of the Agency allocating
hydrofluorocarbon allowances to entities located throughout the country
is nationally applicable or, alternatively, the Administrator is
exercising the complete discretion afforded to him by the CAA and finds
that the final action is based on a determination of nationwide scope
or effect for purposes of CAA section 307(b)(1) and is hereby
publishing that finding in the Federal Register.
Under section 307(b)(1) of the CAA, petitions for judicial review
of this allocation action must be filed in the United States Court of
Appeals for the District of Columbia Circuit by December 23, 2024.
Each adjudicatory action establishing an administrative consequence
as described in this notice is a final action previously taken by EPA.
Under section 307(b)(1) of the CAA, any petition for judicial review of
such a final action must be filed in the United States Court of Appeals
for the appropriate circuit by December 23, 2024.
Filing a petition for reconsideration by the Administrator does not
affect the finality of any action noticed herein for purposes of
judicial review nor does it extend the time within which a petition for
judicial review may be filed and shall not postpone the effectiveness
of such action. The final actions described herein may not be
challenged later in proceedings to enforce their requirements. 42
U.S.C. 7607(b)(2).
Paul M. Gunning,
Director, Office of Atmospheric Protection.
[FR Doc. 2024-24444 Filed 10-22-24; 8:45 am]
BILLING CODE 6560-50-P