89 FR 205 pgs. 84583-84592 - 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

Type: NOTICEVolume: 89Number: 205Pages: 84583 - 84592
Docket number: [EPA-HQ-OAR-2021-0669; FRL-9116-06-OAR]
FR document: [FR Doc. 2024-24444 Filed 10-22-24; 8:45 am]
Agency: Environmental Protection Agency
Official PDF Version:  PDF Version
Pages: 84583, 84584, 84585, 84586, 84587, 84588, 84589, 84590, 84591, 84592

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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.

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: chang.andy@epa.gov. 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


[top] 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.

Entity Application Application-specific 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 Polyurethane Foam 16,066.0
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 Semiconductor Semiconductors 35,794.8
SkyWater Technology Semiconductors 10,463.5
Skyworks Solutions Semiconductors 2,067.6
Taiwan Semiconductor Manufacturing Company Arizona Corporation (TSMC Arizona Corporation) Semiconductors 120,485.4
Texas Instruments Semiconductors 214,219.4
The Research Foundation for The State University of New York at NY CREATES Semiconductors 11,678.4
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 Polyurethane Foam 49,299.5
Wolfspeed Semiconductors 15,779.7
X-FAB Texas Semiconductors 1,262.5
Department of Defense Mission-critical Military End Uses 6,238,033.5
Total Issued All 9,326,172.3

General Pool Allowances


[top] 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.

Entity Production 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
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.

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[top] 
Entity Consumption allowances allocated (MTEVe)
Application-specific allowances a ?9,326,172.3
A.C.S. Reclamation & Recovery (Absolute Chiller Services) 126,446.8
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
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.

Footnotes:

1 ?ASML US submitted an auditing report on September 27, 2024, and the Agency is reviewing that submission.

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Entity Number of affected allowances (MTEVe) Administrative 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.
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.

Entity Number of affected allowances (MTEVe) Administrative consequence action Reasoning
AFK & Co. 941.4 a ?706.1 Retire Revoke Imported regulated HFCs without expending requisite number of allowances.
AutoZone Parts 21,763.1 b ?10,881.6 Retire Revoke Imported regulated HFCs without expending requisite number of allowances.
Wesco HMB 5,432.1 c ?2,716.1 Retire Revoke Sold, distributed, or 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.
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.

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Entity Number of affected allowances (MTEVe) Applicable year(s) Administrative consequence action Reasoning
Fike Corporation 20% of granted RACAs 2025 Withhold Failure to submit auditing report as required in 40 CFR 84.33.
Firetrace USA 20% of granted RACAs 2025 Withhold Failure to submit auditing report as required in 40 CFR 84.33.


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.

Entity Allowance type Administrative consequence action Number of affected 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
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.

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Entity Application Available application- specific allowances (MTEVe), adjusting for administrative consequences
Analog Devices Semiconductors 15,998.9
Applied Materials Semiconductors 2,290.4
Armstrong Pharmaceuticals Propellants in MDIs 237,054.0
ASML US? a Semiconductors 827.0
AstraZeneca Pharmaceuticals Propellants in MDIs 2,677.0
Aurobindo Pharma USA Propellants in MDIs 23,196.2
Compsys Structural Composite Preformed Polyurethane Foam 16,066.0
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 5,378.7
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 Semiconductor Semiconductors 35,794.8
SkyWater Technology Semiconductors 10,463.5
Skyworks Solutions Semiconductors 2,067.6
Taiwan Semiconductor Manufacturing Company Arizona Corporation (TSMC Arizona Corporation) Semiconductors 120,485.4
Texas Instruments Semiconductors 214,219.4
The Research Foundation for The State University of New York at NY CREATES Semiconductors 11,678.4
Tokyo Electron U.S. Holdings, Inc. 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 Polyurethane Foam 49,299.5
Wolfspeed Semiconductors 12,623.8
X-FAB Texas Semiconductors 1,262.5
Department of Defense Mission-critical Military End Uses 6,238,033.5
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).


[top] 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.

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[top] 
Entity Available consumption allowances, adjusted for all administrative consequences (MTEVe)
Application-specific allowances a ?9,321,464.9
A.C.S. Reclamation & Recovery (Absolute Chiller Services) 127,006.0
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
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
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.

Footnotes:

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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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]

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