EPA Finalizes Rule to Advance HFC Management and Recycling Under AIM Act

On September 23, the U.S. Environmental Protection Agency (EPA) announced a significant final rule establishing the Emissions Reduction and Reclamation (ER&R) program, a key element of the American Innovation and Manufacturing (AIM) Act. This new rule aims to manage, recycle, and reduce leaks of climate-damaging hydrofluorocarbons (HFCs), widely used in refrigeration and air conditioning systems, supporting a more sustainable and efficient approach to handling these powerful greenhouse gases.

The ER&R program addresses the third core component of the bipartisan AIM Act and builds on the U.S. ratification of the Kigali Amendment to the Montreal Protocol, an international effort to phase down HFCs and curb global warming. By promoting leak prevention and encouraging the reuse of HFCs, the program is expected to help reduce HFC emissions by 85% by 2036. EPA Administrator Michael S. Regan emphasized that this initiative showcases American leadership in developing clean technologies that combat climate change while boosting economic opportunities in the refrigeration and air conditioning sectors.

Program Highlights:

• Leak Prevention: The ER&R program mandates repairs to leaking refrigeration and air conditioning systems, requiring the installation of automatic leak detection systems in large equipment.
• Reuse of HFCs: It promotes the reclamation and reuse of existing HFCs, supporting the growth of American industries focused on sustainable refrigerant recovery and recycling.
• Technician Safety and Training: The program includes training for fire suppression technicians and minimizes HFC leaks from equipment, such as air conditioners and fire suppression systems.

The program is estimated to cut an additional 120 million metric tons of carbon dioxide equivalent between 2026 and 2050, with an economic benefit of over $6.9 billion. By tackling leaks and supporting the transition to alternative refrigerants, the ER&R program will play a crucial role in reducing HFC-related emissions, a significant step toward achieving global climate goals.

This announcement follows ongoing efforts by the Biden-Harris Administration to phase down HFCs, with reductions of 40% already in effect this year. Additionally, EPA has launched consultations to extend priority HFC allowances for industries like semiconductors and metered dose inhalers beyond 2025.

Through this comprehensive strategy, the EPA is ensuring a sustainable path forward for the refrigeration and air conditioning industries while addressing the challenges of climate change.