The AIM Act Allocation Rule FAQs
The American Innovation and Manufacturing (AIM) Act was signed into law December 7, 2020. The law provides new authority for the U.S. Environmental Protection Agency (EPA) to address hydrofluorocarbons (HFCs) in three ways: (1) phasing down production and consumption, (2) facilitating the transition to next-generation technologies through sector-based restrictions, and (3) refrigerant management, including maximizing reclamation and minimizing releases from equipment. This final rule focuses on the first area – the phasedown of HFC production and consumption.[1]
Arkema fully supports the AIM Act and offers these brief answers to the FAQs below.
Who is affected by this Final Rule?
Companies that produce, import, export, destroy, reclaim, package, or otherwise distribute HFCs. Also affected are companies that use HFCs to manufacture refrigeration and air-conditioning equipment, foams, aerosols, and fire suppressants, or use HFCs in one of the six applications specified in the AIM Act.[2]
This rule applies to Arkema’s Forane® 410A.
Will Forane® 410A still be available?
The EPA has begun phasing out R-410A from specific applications. Most notably, no new residential and commercial a/c equipment can be built after 1/1/2025, with an extra year for VRF EPA has finalized the Technology Transition Rule, but as of the date of this writing is expected to adjust the sell-through period to allow one year for systems and 3 years for self contained products and components (dates to be confirmed). R-410A will continue to be available to service existing equipment, but quantities will be decreased over time.
What is Arkema’s allowance?
EPA issues allowances annually to companies that historically produced and/or imported HFCs, based on the three highest non-consecutive years of production or import between 2011-2019. EPA is also issuing “application-specific allowances” directly to entities, including the U.S. Department of Defense, that operate within the six special applications listed in the AIM Act. These entities can confer their allowances to producers or importers to acquire needed HFCs.[3]
It is illegal to produce or import HFCs controlled by the AIM Act, including blends containing them, without expending EPA-granted allowances. EPA publishes the quantities of production, consumption, and special use allowances by October 1 of the year preceding the year for which these allowances are allocated.
Will there be penalties for non-compliance?
Yes. For non-compliance, EPA can draw upon the enforcement mechanisms of the Clean Air Act, which include imprisonment, criminal fines, administrative orders, court injunctions, and civil fines of up to $102,638 per day for each violation [5]. And every kilogram distributed in violation of the Aim Act would constitute a separate violation.
Does the AIM Act affect imported products containing HFCs?
Products containing HFCs are subject to the AIM Act Technology Transition Rule and the SNAP Program requirements regardless of whether they are produced domestically or imported.
Are the AIM Act Rules applicable to every state?
The AIM Act is a federal law and is applicable in all U.S. states. However, several US states have developed their own HFC phase down requirements that may be more stringent than the AIM Act.
Forane® is a registered trademark of Arkema
[1] EPA, Fact Sheet: Final Rule – Phasedown of Hydrofluorocarbons: Establishing the Allowance Allocation and Trading Program under the American Innovation and Manufacturing (AIM) Act (Washington, D.C., EPA, 2021), Page 1, https://www.epa.gov/system/files/documents/2021-09/hfc-allocation-rule-nprm-fact-sheet-finalrule.pdf
[2] EPA, Fact Sheet: Final Rule – Phasedown of Hydrofluorocarbons: Establishing the Allowance Allocation and Trading Program under the American Innovation and Manufacturing (AIM) Act (Washington, D.C., EPA, 2021), Page 3, https://www.epa.gov/system/files/documents/2021-09/hfc-allocation-rule-nprm-fact-sheet-finalrule.pdf
[3] EPA, Phasedown of Hydrofluorocarbons (HFCs): Issuing Allowance Allocations (Washington, D.C., EPA, 2021), https://www.epa.gov/climate-hfcs-reduction/phasedown-hydrofluorocarbons-hfcs-issuing-allowance-allocations
[4] FACT SHEET: Biden Administration Combats Super-Pollutants and Bolsters Domestic Manufacturing with New Programs and Historic Commitments (Washington, D.C., White House, 2021) https://www.whitehouse.gov/briefing-room/statements-releases/2021/09/23/fact-sheet-biden-administration-combats-super-pollutants-and-bolsters-domestic-manufacturing-with-new-programs-and-historic-commitments/