Phasedown of Hydrofluorocarbons: Notice of 2022 Allowance Allocations for Production and Consumption of Regulated Substances Under the American Innovation and Manufacturing Act of 2020
The Environmental Protection Agency has issued calendar year 2022 allowances for the production and consumption of hydrofluorocarbons in accordance with the Agency's regulations...
The Environmental Protection Agency has issued calendar year 2022 allowances for the production and consumption of hydrofluorocarbons in accordance with the Agency's regulations established under the American Innovation and Manufacturing Act of 2020. The American Innovation and Manufacturing Act 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.
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 2022, total production allowances may not exceed 344,299,157 metric tons of exchange value equivalent (MTEVe) and total consumption allowances may not exceed 273,498,315 MTEVe.
EPA's rulemaking titled
Phasedown of Hydrofluorocarbons: Establishing the Allowance Allocation and Trading Program under the American Innovation and Manufacturing Act,
signed September 23, 2021, describes the process by which EPA determines the number of allowances each entity is allocated. EPA has posted allowance allocations consistent with this process for calendar year 2022 allowances 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. For 2022, EPA has set aside 2.5 million MTEVe (MMTEVe) of allowances for production and 7.5 MMTEVe of allowances for consumption that it intends to allocate no later than March 31, 2022.
EPA has codified the procedure for calculating the application-specific allowance allocation in 40 CFR 84.13. These allowances are drawn from both the production and consumption allowance pools. EPA is issuing “application-specific allowances” to end users in six applications established by the AIM Act: Propellants in metered dose inhalers, defense sprays, structural composite preformed polyurethane foam for marine use and trailer use, etching of semiconductor material or wafers and the cleaning of chemical vapor deposition chambers within the semiconductor manufacturing sector, mission-critical military end uses, and onboard aerospace fire suppression. EPA has allocated 2022 application-specific allowances as shown in Table 1.
( printed page 55842)
Table 1—Application-Specific Allowances for Calendar Year 2022
Entity
Application
Number of
application-specific
allowances issued
(MTEVe) 1
Boehringer Ingelheim
Metered Dose Inhalers
27,789.0
GlaxoSmithKline
Metered Dose Inhalers
414,448.2
Kindeva Drug Delivery
Metered Dose Inhalers
541,146.0
Lupin
Metered Dose Inhalers
30,224.8
Guardian Protective Devices
Defense Sprays
66,639.5
Safariland
Defense Sprays
19,404.6
Security Equipment Corporation
Defense Sprays
262,946.7
Shamrock Filling
Defense Sprays
138,559.0
UDAP Industries
Defense Sprays
116,029.3
Compsys
Structural Composite Foam
35,931.9
Wabash National Corporation
Structural Composite Foam
11,316.7
Analog Devices
Semiconductors
19,652.6
Applied Materials
Semiconductors
65,378.3
Broadcom
Semiconductors
4,232.3
Cree
Semiconductors
36,956.0
GE Global Research Center
Semiconductors
184.6
GlobalFoundries
Semiconductors
216,735.8
Intel Corporation
Semiconductors
679,471.5
Jireh Semiconductor
Semiconductors
5,628.6
Micron Technology
Semiconductors
54,598.3
Newport Fab DBA TowerJazz
Semiconductors
9,190.9
NXP Semiconductor
Semiconductors
56,910.6
Polar Semiconductor
Semiconductors
13,192.0
Qorvo Texas
Semiconductors
9,706.4
Samsung Austin Semiconductor
Semiconductors
260,269.0
Semiconductor Components Industries DBA ON Semiconductor
Semiconductors
11,502.5
Texas Instruments
Semiconductors
73,345.6
Tower Semiconductor San Antonio
Semiconductors
9,836.6
WaferTech
Semiconductors
21,733.9
X-FAB Texas
Semiconductors
1,757.7
U.S. Department of Defense
Mission-critical Military
2,300,000.0
Raytheon Technologies
Onboard Aerospace Fire Suppression
44,105.4
1
Numbers may not sum due to rounding.
EPA has codified the procedure for calculating the production allowance allocation in 40 CFR 84.9. EPA has allocated calendar year 2022 production allowances as shown in Table 2.
Table 2—Production Allowances for Calendar Year 2022
Entity
Number of
production
allowances issued
(MTEVe) 1
Application-specific allowances 2
5,558,824.3
Set-aside 3
2,500,000.0
Arkema
40,555,947.3
Chemours
75,115,321.8
Honeywell International
170,413,409.6
Iofina Chemical
1,744.9
Mexichem Fluor DBA Koura
50,153,909.1
1
Numbers may not sum due to rounding.
2
See Table 1.
3
EPA intends to allocate set-aside allowances by March 31, 2022.
EPA has codified the procedure for calculating the consumption allowance allocation in 40 CFR 84.11. EPA has allocated calendar year 2022 consumption allowances as shown in Table 3.
( printed page 55843)
Table 3—Consumption Allowances for Calendar Year 2022
Entity
Number of
consumption
allowances issued
(MTEVe) 1
Application-specific allowances 2
5,558,824.3
Set-aside 3
7,500,000.0
A-Gas
3,197,981.6
Advanced Specialty Gases
284,314.2
Air Liquide USA
496,782.6
Altair Partners
2,908,497.9
Arkema
30,966,544.3
Artsen
1,023,968.7
AutoZone Parts
2,477,946.6
AW Product Sales & Marketing
193,823.8
Bluon
33,342.5
Chemours
33,265,653.1
Combs Gas
1,283,403.1
ComStar International
372,752.5
Daikin America
3,109,990.8
Electronic Fluorocarbons
103,923.4
First Continental International
767,139.1
FluoroFusion Specialty Chemicals
2,543,583.9
GlaxoSmithKline
534,487.5
Harp USA
762,890.0
Honeywell International
82,208,205.2
Hudson Technologies
2,977,582.0
ICool USA
3,395,051.7
IGas Holdings
25,853,657.7
Iofina Chemical
1,260.5
Lenz Sales & Distribution
1,106,426.7
Linde
530,636.4
Mexichem Fluor DBA Koura
25,390,556.9
Mondy Global
317,589.6
National Refrigerants
19,737,372.2
Nature Gas Import and Export
816,751.0
Refrigerants, Inc.
26,457.8
RMS of Georgia
1,615,592.9
Showa Chemicals of America
73,209.0
Solvay Fluorides
1,098,594.2
Technical Chemical
970,724.9
Transocean Offshore Deepwater Drilling
16.7
Tulstar Products
731,537.3
Walmart
2,272,587.7
Waysmos USA
632,280.2
Weitron
6,316,123.6
Wilhelmsen Ships Service
40,250.9
1
Numbers may not sum due to rounding.
2
See Table 1.
3
EPA intends to allocate set-aside allowances by March 31, 2022.
Use this for formal legal and research references to the published document.
86 FR 55841
Web Citation
Suggested Web Citation
Use this when citing the archival web version of the document.
“Phasedown of Hydrofluorocarbons: Notice of 2022 Allowance Allocations for Production and Consumption of Regulated Substances Under the American Innovation and Manufacturing Act of 2020,” thefederalregister.org (October 7, 2021), https://thefederalregister.org/documents/2021-21951/phasedown-of-hydrofluorocarbons-notice-of-2022-allowance-allocations-for-production-and-consumption-of-regulated-substan.