SUPPLEMENTARY INFORMATION:

The EPA first established the regulations for issuing allowances in the 2021 final rule titled Phasedown of Hydrofluorocarbons: Establishing the Allowance Allocation and Trading Program Under the American Innovation and Manufacturing Act  ^[1] and updated previously established methodology in the final rule titled Phasedown of Hydrofluorocarbons: Allowance Allocation Methodology for 2024 and Later Years  ^[2] (2024 Allocation Framework Rule) and the final rule titled Phasedown of Hydrofluorocarbons: Review and Renewal of Eligibility for Application-Specific Allowances  ^[3] (2025 Application-specific Allowance Review and Renewal Rule). The 2025 Application-specific Allowance Review and Renewal Rule established an annual set-aside of 1,000,000 metric tons exchange value equivalent (MTEVe) of allowances to be available for the use of hydrofluorocarbons (HFCs) as a propellent in metered dose inhalers (“MDI set-aside”) if the requester meets the criteria for the unique circumstances established in 40 CFR 84.13(b)(1)(iii). These allowances were withheld by the EPA from the October 1, 2025, allocation of 2026 HFC general pool allowances in order to accommodate unforeseen HFC needs, related to use as a propellant in MDIs, resulting from a global pandemic, other public health emergencies, or other healthcare system needs. Entities that use HFCs as a ( printed page 31451) propellant in MDIs had until April 30, 2026, to apply for these allowances. Having received no applications for MDI set-aside allowances by the April 30, 2026, deadline, the EPA has distributed the entire 1,000,000.0 MTEVe pro-rata to general pool allowance holders. The distributed allowances were allocated in a manner that is proportionate to how many allowances the entity was allocated in the calendar year 2026 allocation.

Note that allowances can only be expended to cover imports and production in the calendar year for which they are allocated. In other words, the allowances referenced in this notice may only be expended through the end of this year, December 31, 2026.

The EPA distributed the 1,000,000.0 MTEVe MDI set-aside allowances pro rata amongst the general pool of production allowance holders as shown in Table 1.

The EPA distributed the 1,000,000.0 MTEVe MDI set-aside allowances pro rata amongst the general pool of consumption allowance holders as shown in Table 2.

Table 3 reflects the distributed MDI set-aside allowances pro rata amongst the general pool of consumption allowance holders, after taking into account previously finalized administrative consequences.^[4]

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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 [the 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) of the CAA 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.”

The distribution of MDI set-aside allowances for HFCs to the general pool of production and consumption allowance holders 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) through (D). For 2026, there was a set-aside amount of 1,000,000.0 MTEVe of allowances that were withheld by the EPA from the general pool allowance holders pending applications for these allowances from entities that use HFCs as propellants in MDIs. After the April 30, 2026, deadline to apply, for which the EPA received no applications, the Agency allocated the allowances pro rata to general pool allowance holders as 2026 production and consumption allowances. As such, the set-aside allowance allocation is the division and assignment of a single, nationwide pool of set-aside allowances to entities across the country according to the national methodology established in the EPA's regulations. Each entity's set-aside allowance allocation can be a relative share of that pool; thus, any additional allowances awarded to one entity can directly affect the allocations to others. For these reasons, the final action of the EPA allocating set-aside allowances to entities located throughout the country is nationally applicable.

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 July 27, 2026.

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).

91 FR 31450