Frequent Questions on the Phasedown of Hydrofluorocarbons

* Includes consumption allowances allocated to GlaxoSmithKline

Option 3: Build inventory (i.e., stockpile) in advance of when you’ll need the HFCs. This is particularly relevant for application-specific allowance holders. If you are concerned that your allocation for next year may not be high enough, consider using your unused allowances this year to build an inventory. Application-specific allowance holders can also try to acquire additional allowances from other entities who received allowances for the same application and work with suppliers to produce or import the HFCs on their behalf. Keep in mind that allowances expire on December 31 of each year and cannot be expended, transferred, or conferred after December 31 of the year for which they were issued. So, to produce or import HFCs, allowances must be used in the same calendar year for which they were allocated.

How are allowances used?

When do I expend allowances?

Allowances must be expended during the calendar year for which they were issued. To produce bulk HFCs, production and consumption allowances, or application-specific allowances, must be expended at the time of production.

To import bulk HFCs, consumption or application-specific allowances must be expended by the importer of record at the time of:

• Ship berthing for vessel arrivals
• Border crossing for land arrivals such as trucks, rail, and autos
• First point of terminus in U.S. jurisdiction for arrivals via air

These points in time may be reflected as the “Conveyance Arrival” date for shipments, which importers or their brokers with access to the Automated Broker Interface may find through an Automated Commercial Environment Cargo Manifest/In-Bond/Entry Status Query. However, regardless of the date identified in Automated Broker Interface as the “Conveyance Arrival,” it is the importer of record’s obligation to ensure that it has expended the appropriate calendar year allowances in the appropriate quantity and at the appropriate time to align with regulatory requirements.

For example, the importer of record would be required to expend calendar year 2024 allowances for imports of HFCs if the vessel with the HFCs berthed at a port in the United States in 2024. The requirement to expend calendar year 2024 allowances applies even if the vessel was waiting off the coast of the United States in December 2023.

When do I need to have the allowances and file an advance notice of import?

The importer of record for the shipment needs to possess sufficient allowances at the time of filing their advance report for the amount of bulk HFCs that will be imported. The advance notice of import is due five days in advance of a border crossing for land arrivals such as trucks, rail, and autos and the first point of terminus in U.S. jurisdiction for arrivals via air. For sea arrivals, notification is due 10 days in advance of the ship berthing. The advance notice of import must be provided via a U.S. Customs and Border Protection-authorized electronic data interchange system, such as the Automated Broker Interface. A tip sheet is available for filing for HFC imports.

If an importer intends to use allowances obtained through a transfer, conferral, or Request for Additional Consumption Allowances (RACA), make sure to allow sufficient time for EPA to review and process these requests. The importer must be in possession of those allowances at the time of filing their advance report, which is either five or 10 days in advance, depending on the mode of transit for the import.

General reporting instructions can be found at HFC Allocation Rule Reporting Resources.

How do transfers and conferrals work?

When can I transfer or confer allowances?

You may transfer production or consumption allowances or confer application-specific allowances at any point after they are allocated until the allowance expires at the end of the calendar year for which it was allocated. For example, if calendar 2025 allowances are allocated on October 1, 2024, they could be transferred or conferred (for application-specific allowances only) from October 1, 2024, until December 31, 2025. Note that allowances can only be expended for production and import during the calendar year for which they are issued (i.e., 2025 allowances can only be used in 2025, even though they are allocated in the prior year). EPA encourages allowance holders, including application-specific allowance holders, to undertake transfers and conferrals early in the year and, where possible, well in advance of when bulk regulated substances would need to be produced or imported. The entity producing or importing bulk regulated HFCs must have sufficient allowances in their possession at the time of production or five days in advance for truck, rail, air, and other non-sea arrivals and 10 days in advance for sea arrivals. Failure to transfer or confer allowances early enough could result in delays in receiving HFCs.

How do I confer application-specific allowances to suppliers?

Application-specific allowance holders that are planning to confer application-specific allowances to a supplier must submit an “HFC Conferral of Allowances Report” prior to conferring allowances, as described in 40 CFR 84.31(h)(4). This report must be submitted through HAWK in the Electronic Greenhouse Gas Reporting Tool (e-GGRT). Reporting instructions can be found on the HFC Reporting Resources webpage. Both the conferrer and conferee will need to provide certification, signed by both parties, as part of this report stating that the HFCs being acquired, produced, or imported are solely for one of the six applications listed in the AIM Act and will not be resold for use in a different application or used in any other manufacturing process.

The Agency will issue a confirmation notice that the allowances were conferred, as described in page 55189 and page 55220 in the HFC Allocation Framework Rule. EPA will reduce the conferrer’s balance of unexpended allowances by the quantity conferred. If EPA ultimately finds that the conferrer did not have sufficient unexpended allowances to cover the conferral or that the regulated bulk substances produced or imported with conferred allowances are used for anything other than the specific application identified in the conferee’s submittal and for the application those allowances were allocated for, the conferrer and conferee may be liable for any violations of the regulations of this subpart that occur as a result of, or in conjunction with, the improper conferral.

If one company was allocated allowances and a different company under the same ownership wants to import or produce HFCs, would the companies need to transfer allowances?

Allowances can be expended by parents, subsidiaries, sister, or commonly owned companies without a transfer. The 2024 Allocation rule established requirements that entities submit an importer of record form, which was previously voluntary. If an entity receiving allowances (either allocated directly by EPA or via inter-company transfer) includes a subsidiary, entity majority owned and/or controlled by the same individual(s), and/or a “Doing Business As” (DBAs as part of the importer of record form, the corporate structure of the entity receiving allowances must be provided, and the description of the corporate structure must, at a minimum, explicitly show the relationship between the allowance holder and each subsidiary, entity majority-owned and/or controlled by the same individual(s), or DBA. An entity also would need to provide the owners, and their respective percentage of ownership, of each subsidiary, entity that is majority owned and/or controlled by the same individual(s), and DBA on the submitted form.

Will allowance transfers in one year result in a change in a company’s allowance allocation in a subsequent year?

As established in the 2024 Allocation rule, allowance transfers will not affect the number of allowances an entity is allocated each year through 2028.

How is EPA ensuring compliance?

How will EPA enforce these regulations and avoid illegal imports?

EPA has developed a robust and agile compliance and enforcement system with strong measures that prevent and identify illegal activity in the United States and ensure compliance with the obligations under the AIM Act. These measures draw from experience globally and in the United States. To prevent illegal trade in climate-damaging HFCs, EPA is coordinating with other federal agencies, in particular, U.S. Customs and Border Protection. The strong compliance and enforcement provisions in this program will help preserve the environmental and economic benefits of the HFC phasedown. The main components include:

• Administrative consequences to deter noncompliance and create pathways to address the impacts of noncompliance
• Requiring the use of container labeling
• Real-time check to confirm allowances are available at the time of import
• Prior EPA approval to import HFCs that do not require allowances (e.g., feedstocks)
• Requiring third-party auditing of companies’ recordkeeping and reporting
• Transparency of HFC production and consumption data for the general public and participants in the market, and to support enforcement and compliance efforts

What are administrative consequences?

Administrative consequences are allowance adjustments issued when EPA identifies certain activities including, but not limited to, submitting false, inaccurate, or misleading information or data, importing HFCs without expending the required number of allowances, not disclosing financial conflicts of interest or familial relationships in certain circumstances, and failing to provide required reports consistent with the regulatory requirements. The types of administrative consequences EPA can issue include retiring, revoking, or withholding the allocation of allowances, or banning an entity from receiving future allowances. More information is available on EPA’s Administrative Consequences webpage.

Can an entity expend or transfer allowances if they are subject to an administrative consequence?

Under the HFC Phasedown requirements at 40 CFR 84.35(b)(1), once EPA issues the notice of intent to take administrative consequences, that entity cannot expend the quantity of allowances subject to the administrative consequence, nor transfer or confer any of their allowances while the administrative consequence is pending.

See the Allocation Framework Rule, in particular sections VIII, IX, and X, for more information.

How is EPA addressing emissions of HFC-23?

HFC-23 is a regulated substance under the AIM Act and has the highest exchange value of any regulated substance at 14,800. HFC-23 is used in applications such as semiconductor etching and very low temperature refrigeration. HFC-23 is also unintentionally created and vented to the atmosphere during the manufacture of other fluorinated compounds. EPA has set a specific standard to which HFC-23 created on a facility line must be captured and controlled before the HFC-23 is subsequently either destroyed or captured, refined, and sold for consumptive uses.

Attestation Engagements (Audits) under the HFC Allocation Program

What type of attestation engagement is required to satisfy the auditing requirement?

The type of audit your certified public accountant (CPA) will undertake is called an “attestation engagement using agreed-upon procedures (AUP).” The CPA does their work and reports the findings without providing an opinion or conclusion. The CPA will prepare a report verifying that reporting and recordkeeping requirements were followed, consistent with regulatory requirements. The CPA’s report is provided to the EPA, which then conducts its own review to determine compliance.

When is the report due?

The report is due to the EPA by May 31 of each year.

What must be in the report?

CPAs will prepare a report identifying the applicable procedures specified in the regulations along with the corresponding findings for each procedure. The CPA’s findings must identify any instances where compared values do not agree or where specified values do not meet applicable requirements under the regulations. This is done by comparing information reported to the EPA with the entity’s data maintained consistent with the recordkeeping and reporting requirements in 40 CFR 84.31); reviewing all other reports submitted to the EPA under 40 CFR Part 84 Subpart A ); documenting procedures; and noting all variances. This must be done for all activity that occurred during the period January 1 – December 31, including any activities that impacted allowances. The final report should consist of (1) a summary of findings (i.e., a list of exceptions) and (2) a description of findings for each agreed upon procedure, including a list of all records reviewed.

Who is subject to the attestation requirements?

Any person producing, importing, exporting, recycling for fire suppression, and reclaiming regulated HFCs, as well as any person receiving application-specific allowances, except for persons receiving application-specific allowances for mission-critical military end uses.

Are there CPA firms that provide this service?

Regulated entities are responsible for finding a CPA to conduct the attestation engagement. Entities can ask their financial CPA for a recommendation. We are working with the national auditing association AICPA-CIMA https://www.aicpa-cima.com/home, which has informed their 350,000 members about the EPA’s attestation requirement. The EPA has also been communicating with AICPA-CIMA on the attestation requirement and expects that more CPAs will be interested now that the guidance is available and AICPA-CIMA is developing additional resources. Entities that are having difficulty identifying a CPA can contact the EPA at [email protected] to receive a list of CPAs that have indicated interest in providing this service. Please note, the EPA does not endorse, recommend, or certify any specific CPA or their services. Rather, this list is provided as a convenience to the regulated community.

Where is the guidance on this requirement?

The EPA developed guidance on the attestation engagement, along with instructions on how to do an attestation engagement, in a document called “Phasedown of Hydrofluorocarbons: Auditing of Recordkeeping and Reporting,” found on our Reporting and Recordkeeping Resources webpage in the HFC Third-Party Audit Guidance section.

What will the EPA do with the completed attestation engagement?

The EPA will review the attestation engagement and contact entities as necessary, dependent on the results of the review. If errors are identified, the EPA may request that entities confirm and correct reporting and recordkeeping data entry errors/minor mistakes. If noncompliance with the requirements is identified, the EPA will consider the appropriate next steps, which could include administrative consequences and/or enforcement actions. Finally, the attestation engagement may identify areas for improvement in how entities internally track HFC activity and develop required reports that are submitted to the EPA.

Is there an email box for questions?

All questions on attestation engagements and submittal of reports should be sent to the HFC Allocation Program help desk at [email protected]. 

Why is the EPA requiring attestation engagements?

The EPA is requiring attestation engagements to ensure the integrity of the HFC allocation program and to improve compliance with EPA regulations, as well as increase program accuracy. They will assist the EPA in understanding where there may be common areas of confusion among industry participants that the Agency can improve upon in subsequent rulemakings. Attestation engagements will also identify potential non-compliance with regulations, and situations that need referral for potential enforcement and/or the application of administrative consequences.

Must CPAs be certified by the EPA?

The EPA does not require additional certification and will not be providing any certification for CPAs. Because CPAs follow a code of professional conduct which requires that they act with integrity, objectivity, due care, and competence, that they fully disclose any conflicts of interest and maintain client confidentiality, and that failure to act according to this code can result in loss of license and other punishment, the Agency believes there is no need to establish its own regulations for the industry. Also, CPAs are trained to work across varied industries and understand accounting frameworks and recordkeeping obligations across sectors and have conducted thousands of attestation engagements under the Clean Air Act fuels regulations over the last 25 years.

Are there additional documents or materials that must be audited, other than what is in the guidance document?

The document offers guidance for developing attestation engagements that align with the regulatory requirements; it remains the responsibility of each third-party CPA and each regulated entity to address all applicable requirements of 40 CFR 84.33. The particular records subject to AUP engagements will differ depending on the activities the entity undertakes (e.g., records reviewed for HFC production will differ from those reviewed for HFC imports), but to ensure consistency amongst engagements and compliance with the regulatory requirements, the EPA recommends that CPAs should, at a minimum, follow the guidance. 

Do reports and records for all containers need to be provided to the CPA, or just a representative sample?

The EPA does not allow representative sampling for containers. Further, representative sampling of records and reports, where allowed for in the regulations at 40 CFR 84.33 (LINK to https://www.ecfr.gov/current/title-40/chapter-I/subchapter-C/part-84/subpart-A/section-84.33#p-84.33(a) is done by the CPA after receiving the complete inventory of relevant records.

Can an attestation engagement be done remotely or must it be done on-site?

Attestation engagements can be conducted on-site or remotely.

For entities that export HFCs, is there a minimum threshold or de minimus level of activity before an entity must complete an attestation engagement?

There is no de minimus level of activity before entities have to complete an attestation engagement. If you are a producer, importer, exporter, reclaimer, fire suppressant recycler, or application-specific allowance holder, an attestation engagement is required.

What is the definition of a responsible corporate officer and responsible official?

A responsible corporate officer and responsible official mean a person who is authorized by the regulated party to make representations on behalf of, or obligate the entity as ultimately responsible for, any activity regulated under 40 CFR part 84, subpart A.

Does my inventory need to be physically audited?

All producers, importers, and exporters are required to report on end-of-year inventory of regulated HFCs. Reclaimers, fire suppressant recyclers, and application-specific allowance holders also have inventory reporting requirements. Your inventory does not need to be physically audited. The regulated entity’s records can be used instead of a physical audit.

Can the audited entity review the CPA’s report before it is submitted to the EPA?

As per common practice in agreed-upon procedures, the auditee may review the CPA’s draft report prior to the final report’s submittal to the EPA. However, the entity should not ask for procedures or findings to be changed or removed (except for factual inaccuracies which the CPA can assess if corrections to the findings are warranted). Consistent with AICPA standard AT-C 215 (https://www.aicpa-cima.com/resources/download/aicpa-statement-on-standards-for-attestation-engagements-no-19), once a procedure has been executed, the procedure and related findings are required to be reported. 

What can an auditee do if the CPA identifies an error? Can the auditee revise its reports with the EPA?

If the CPA identifies an error in a previously submitted report to the EPA during review of the auditee’s documents (e.g., a quarterly report that was previously submitted to the EPA includes an erroneous value), the entity may revise and resubmit that report to the EPA (e.g., the quarterly report with an error). However, the final AUP report submitted to the EPA by the CPA may not be revised by the auditee.

What if the CPA identifies what they believe is an inconsistency, but the auditee believes is not an inconsistency?

If the auditee believes this situation has occurred and disagrees with the CPA’s draft findings (consistent with AICPA standard AT-C 215, https://www.aicpa-cima.com/resources/download/aicpa-statement-on-standards-for-attestation-engagements-no-19), the auditee can ask the CPA to add a note to the final report on their behalf that explains additional information associated with the finding (e.g., provide a reason for a discrepancy and why the auditee disagrees with the finding). Agreed-upon procedures engagements also allow for adding additional procedures (e.g., to review additional records) to confirm information reported to the EPA. The EPA will consider these notes during its review of the CPA’s final report.

How have the HFC Allocation Program requirements changed since the Allocation Framework Rule?

Revisions to the HFC Allocation Program due to the 2024 Allocation Rule were generally effective September 18, 2023, except as listed below for the laboratory testing accreditation or certification requirement.

Allowance Allocation Methodology

For calendar years 2024 through 2028 EPA is maintaining a similar methodology to the methodology previously used to calculate general pool production and consumption allowances.

• General pool allocations for historic producers and importers are based on entities’ market shares derived from the average of the three highest years of production and consumption, respectively, of bulk regulated substances between 2011 and 2019.
• To be eligible to receive general pool allowances for 2024 through 2028 based on historic production and import activity, an entity must have produced or imported bulk regulated substances in 2021 or 2022 (to demonstrate activity in 2022, allowances must have been expended at the time of production or import).
• EPA will determine for each former new market entrant a stand-in high three-year average based on the number of allowances allocated in 2023.

Baselines and Annual Limits

• The consumption baseline was revised from 303,887,017 MTEVe to 302,538,316 metric tons of exchange value equivalent (MTEVe), a decrease of 1,348,701 MTEVe (about 0.4%).
• The production baseline was revised from 382,554,619 MTEVe to 382,535,439 MTEVe, a decrease of 19,180 MTEVe (about 0.005%).
• Associated changes to annual limits apply to allocations for calendar year 2024 and later years.

Imports and allowance expenditures

• The point in time that an allowance must be expended to import regulated bulk HFCs
  • EPA revised language to clarify that an allowance must be expended at the time of ship berthing for vessel arrivals, border crossing for land arrivals such as trucks, rail, and autos, and first point of terminus in U.S. jurisdiction for arrivals via air.
• Advance notification of import
  • The Agency shortened the advance notification reporting requirements to 5 days in advance for truck, rail, air, and other non-sea arrivals and 10 days in advance for sea arrivals.
• Who must expend allowances for import?
  • EPA specified that only the importer of record can expend allowances for an import of bulk regulated substances.
  • The importer of record must be in possession of allowances in the amount that will need to be expended at the time of filing their advance report.
  • Any person who meets the definition of an importer will be liable unless they can demonstrate that the importer of record possessed and expended the appropriate allowances.
• Imports of blended HFCs
  • EPA clarified the previously existing requirement that allowances must be expended to import bulk regulated substances, including as part of a multicomponent substance.

HFC Allocation Program Recordkeeping and Reporting

EPA revised and added requirements to a variety of recordkeeping and reporting provisions under the HFC Allocation Program.

• Specify that the importer of record must file the advance notification and quarterly reports (the advance notification may be filed by the authorized agent instead)
• Require the net and gross weight, as well as unit of mass (i.e., kilogram), for each container in the shipment in the advance notification report
• Shorten the advance notification reporting requirements from 14 days in advance to 5 days in advance for truck, rail, air, and other non-sea arrivals and 10 days in advance for sea arrivals
• Reiterate that the harmonized tariff schedule (HTS) code for the regulated substance must be used for the import of any bulk HFC, regardless of amount, i.e., whether a residual “heel” or full container (the HTS code for U.S. goods returned or containers may not be used)
• Require that certain information must be submitted by any entity anticipating being the importer of record for a shipment of bulk regulated substances by November 15 of the year prior to importing HFCs, with additional required data elements if there are subsidiaries, entities majority owned or controlled by the same individual(s), and/or Doing Business As (DBAs)
• Require reporting of the name, quantity, and recipient facility for regulated HFCs produced at one facility for transformation, destruction, or use as a process agent at another facility owned by the same entity
• Add the Internal Transaction Numbers (ITN) and Electronic Export Information (EEI) documents as required data elements for all Request for Additional Consumption Allowances (RACAs)

Sampling and Testing

EPA amended requirements related to verifying composition and specifications of bulk regulated substances offered for sale or distribution:

• Specify that previously required sampling and testing of bulk HFCs must follow certain methodologies to verify the label composition for all applications, and apply these requirements to exporters
• Require sampling and testing under specified methodology to ensure compliance with previously existing requirements concerning specifications
• Define the necessary recordkeeping requirements associated with sampling and testing, and apply these requirements to fire suppression recyclers, repackagers, and exporters
• Define “batch” and “representative sample” and clarify the relationship between these terms
• Define “laboratory testing” such that laboratories must be certified, accredited, or recognized (this provision is effective October 1, 2024)
• Require that certificates of analysis accompany all imports of bulk HFCs.

Other Revisions

EPA made the following regulatory changes based on lessons learned and current practices that have proved useful in implementing the HFC phasedown.

• Define “expend” to mean to subtract the number of allowances required for the production or import of bulk regulated substances under 40 CFR part 84 from a person’s unexpended allowances
• Add more detail and specificity concerning features on all labels or marking
• Specify that no one other than the importer of record may repackage or relabel bulk regulated substances which were initially unlabeled or mislabeled (previously these requirements applied to importers repackaging initially unlabeled or mislabeled bulk regulated substances)
• Codify that allowances can be expended by parents, subsidiaries, sister, or commonly owned companies without a transfer.

What is the status of the EPA requirement to stop using single use, disposable cylinders for HFCs?

In June 2023, the U.S. Appeals Court for the District of Columbia Circuit found that the EPA had not cited adequate authority and as a result vacated the requirement. The Agency is acting consistent with the decision and is not implementing or enforcing the prohibition on filling and selling disposable cylinders from the regulatory requirements at 40 CFR 84.5(h). EPA intends to undertake a rulemaking to formally remove this requirement from the Code of Federal Regulations. Separately, EPA has proposed requirements related to disposal of single use cylinders in the recent Emissions Reduction and Reclamation rule proposed under subsection (h) of the AIM Act.

What is the status of the EPA requirement to place quick response (QR) codes on and track all cylinders containing HFCs?

In June 2023, the U.S. Appeals Court for the District of Columbia Circuit found that the EPA had not cited adequate authority and as a result vacated the requirements. As a result, the EPA issued a rule to remove from 40 CFR Part 84 certain regulatory provisions that prohibit use of disposable cylinders, implement the cylinder tracking system, and create auditing obligations related to the cylinder tracking system.

The HFC Data Hub

Why are allowances expressed in MTEVe, but calculated production and consumption numbers are expressed in MTCO₂e?

EPA allocates allowances in metric tons of exchange value equivalent, or MTEVe, based on the manner in which the program is established through the AIM Act. However, the exchange value and the 2007 IPCC Fourth Assessment Report 100-year GWP for each HFC are numerically equal, so the Agency is providing calculated production and consumption in MTCO₂e for stakeholder awareness. The number provided for calculated production and consumption is numerically equal in MTEVe or MTCO₂e.

Why was calculated consumption higher than calculated production in 2022?

Calculated production is equal to the amount of a regulated substance manufactured from a raw material or feedstock chemical (excluding the amount produced for transformation) minus destruction. Calculated consumption is equal to calculated production plus imports minus exports. Calculated consumption was higher than calculated production in 2022 because imports exceeded exports.

Why is the production of HFC-143a negative in the table “HFC Calculated Production and Consumption for 2022”?

Calculated production is equal to the amount of a regulated substance manufactured from a raw material or feedstock chemical (excluding the amount produced for transformation) minus destruction. More HFC-143a was destroyed than was produced in 2022 after factoring in amounts produced for transformation, resulting in the calculated production of HFC-143a being a negative value. Note that the amount destroyed in a given year can include HFCs produced or imported in that year and prior years.

Why are there negative values in the “Unused Allowances (MTEVe)” column in the HFC Consumption Allowances for 2022 table?

Negative values in the “Unused Allowances (MTEVe)” column occur when an entity has reported HFC consumption that exceeds the number of allowances available to the entity as of December 31, 2022, after factoring in amounts allocated, allowances expended, and transactions throughout the year, such as requests for additional consumption allowances and transfers. Such negative values could result in EPA pursuing administrative consequences under 40 CFR Part 84 and enforcement action.

Can companies carry over their unused allowances to the next year?

No. Allowances are valid between January 1 and December 31 of a given year. They cannot be expended, transferred, or conferred after December 31 of the year for which they were issued.

Why are application-specific allowances in their own row instead of presented by company?

At this time, EPA is not presenting individual company data on application-specific allowances expended or conferred. The Agency is evaluating options to present the data in more disaggregated forms while adequately protecting data that has been claimed or deemed to warrant confidential treatment. EPA has posted allowance use data by application for 2022 in another FAQ.

Why is EPA using the IPCC Fourth Assessment Report instead of the most recent version?

The U.S. HFC phasedown measures consumption and production weighted by exchange values assigned to each HFC in the AIM Act. These exchange values are numerically equal to the 100-year GWPs in the 2007 IPCC Fourth Assessment Report.

Why is the net supply for 2021 much higher than the net supply for 2019 and 2020?

Prior to the restriction on production and import of HFCs that started in 2022, it is likely that some entities imported and stockpiled HFCs.

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3. Technology Transitions Program

General Questions on the Technology Transitions Program

What Is the Technology Transitions Program?

EPA’s Technology Transitions Program, under the authority of the American Innovation and Manufacturing (AIM) Act enacted on December 27, 2020, restricts the use of hydrofluorocarbons (HFCs) in sectors and subsectors where lower-global warming potential (GWP) technologies are available, or will be available in the near term.

Is EPA restricting use of HFCs in certain technologies and when do those restrictions begin?

Yes. HFCs are potent greenhouse gases with GWPs that can be hundreds to thousands of times higher than carbon dioxide. Under the AIM Act, the supply of newly produced HFCs in the United States is being phased down. The Technology Transitions Program restricts the use of certain higher-GWP HFCs in sectors and subsectors where lower-GWP alternatives are available or will soon be available. The first restrictions begin January 1, 2025.

Do the Technology Transitions Program restrictions apply to systems or products that are currently installed or in use?

The restrictions in the Technology Transition Program apply only to new products and systems manufactured, imported, or installed after the compliance date for each subsector listed in the rule. The 2023 Technology Transitions Rule does not restrict HFC use in products and systems installed and in use, or in the possession of an end-user prior to the compliance date for the relevant subsector. See the question “What is the difference between refrigeration, air conditioning, and heat pump (RACHP) products versus RACHP systems?” for more information.

Are any technologies exempt from the Technology Transitions Program restrictions?

The applications eligible for application-specific HFC allowances are exempted from restrictions under the Technology Transitions Program. In addition, the Technology Transitions restrictions on use of HFCs or blends in foam do not apply to spray and pour foams used in space vehicles, as defined in 40 CFR 84.3.

Will EPA look at other end-uses or revisit existing end-uses in the future?

Yes, EPA has the authority to develop additional restrictions on HFC use. EPA can develop restrictions in response to petitions submitted to EPA, or the Agency can initiate a rulemaking on its own.

Are other countries or states taking actions to phasedown HFCs?

A number of countries have established restrictions on the use of fluorinated greenhouse gases (F-gases) and HFCs that exceed a certain GWP limit for use in certain products and equipment, in order to reduce the global warming impact of these products. Canada, the European Union (EU), Japan, and the United Kingdom have GWP limits for F-gases and/or HFCs used in specified sectors and subsectors. Currently, twelve states – California, Colorado, Delaware, Maine, Maryland, Massachusetts, New Jersey, New York, Rhode Island, Virginia, Vermont, and Washington – have laws or regulations restricting the use of HFCs for specific applications. In general, restrictions for products containing F-gases and/or HFCs affect refrigeration, air-conditioning, and heat pumps; aerosols; and foams sectors. EPA examined these restrictions as background in developing the GWP limit-based restrictions under the Technology Transitions Program.

Do the Technology Transitions restrictions promulgated under the AIM Act subsection (i) apply in Puerto Rico, Guam, U.S. Virgin Islands, and other U.S. territories? 

Yes.

If state regulations differ from the Technology Transitions Program restrictions, which rules apply?

The AIM Act does not preempt states from adopting different restrictions that are in addition to the EPA regulations under the Technology Transition Program. In these instances, both restrictions would apply.

How do I determine what the GWP is for an HFC, HFC blend, or substitute for the purposes of this rule?

The final rule provides a methodology that outlines the process by which GWPs are calculated for the purposes of compliance with the GWP thresholds under this rule. A list of all the relevant GWP values for HFCs, HFC blends, and other substitutes referenced in the final rule can be found on the Technology Transitions GWP Reference Table. 

Questions on Restrictions of HFCs in Technologies

How do I learn about restrictions by technology, application, or sector?

Several resources are available to help stakeholders identify relevant sectors, subsectors, compliance dates, and allowable substitutes.

• Technology Transitions HFC Restrictions by Sector (Online) - These online tables allow users to filter to find compliance information by sector, subsector, and date. It also lists GWP limits and/or prohibited substances.
• Technology Transitions HFC Restrictions by Sector (PDF) - This fact sheet provides an overview of the rule as well as HFC restrictions and compliance date by sector, subsector, and date.

Who is subject to the restrictions in the Technology Transitions Program?

The 2023 Technology Transitions Rule prohibits the 1) manufacture, 2) import, 3) sale (or offer for sale), 4) distribution (or offer for distribution), and 5) export of specific products. Any company engaged in those activities could be subject to the restrictions and reporting and labeling requirements of this rule. The rule also prohibits the installation of certain refrigeration, air conditioning, and heat pump systems. Any company that installs or directs the installation of such systems (e.g., the designer, or owner/operator) may be subject to the restrictions of this rule.

If an application or end-use is not specifically mentioned in the 2023 Technology Transitions Rule, is it subject to the requirements of that rule?

Applications that meet the descriptions for the sectors and subsectors of this rule are covered, even if the specific application is not included as an example in the rule. It is the responsibility of companies to read and interpret EPA regulations based on their knowledge of their own equipment. See the 2023 Technology Transitions Rule, fact sheet, and other material available on the Technology Transitions Program website for details of the requirements. If you need additional information or have questions that are not covered on this frequently asked questions (FAQ) page or the other listed resources, please reach out to EPA via our contact us page.

Can EPA explain the terminology used in the Technology Transitions Program?

There are many commonly used words (“product” for example) that have particular meaning in the Technology Transitions Program. Knowing the terminology is useful for understanding how the rule works. Certain terms, as they apply under the Technology Transitions Program, are briefly summarized here. Please consult the Code of Federal Regulations (CFR) for the full regulatory definitions.

• “Product” means an item which performs a function or task and is functional upon completion of manufacturing. This includes: appliances, foams, fully formulated polyols, self-contained fire suppression devices, aerosols, pressurized dispensers, and wipes. Note: this does not include components that must be assembled into a larger system in order to function.
  • Manufacture of a product means to complete the manufacturing and assembly processes such that the product is ready for initial sale, distribution, or operation.
• “System” means an assemblage of separate components that typically are connected and charged on site to perform a function or task. Systems are not “manufactured” under the terminology of this rule. Rather, due to their size, complexity, or building/site design, they are “installed.” For example, a supermarket system with display cases in one area that are connected by refrigerant tubing to a compressor rack in a separate area is a system.
  • Installation of a system means to complete a field-assembled system’s circuit, including charging with a full charge, such that the system can function and is ready for use for its intended purpose.
• “Specified component” means condensing units, condensers, compressors, evaporator units, and evaporators. Specified components are subject to labeling, reporting, and recordkeeping requirements.
• “Equipment” is not a defined term in the rule. For the purposes of the Technology Transitions Program, equipment is used as a catch-all to refer to products, components, and/or systems more generally.

When do the restrictions take effect?

Manufacture and import compliance dates vary depending on the subsector, ranging from January 1, 2025, to January 1, 2028. The restriction on sale, distribution, and export of products applies three years after the sector/subsector manufacture and import compliance dates, to allow for a sell-through period of previously manufactured or imported products.

Manufacturers and importers of products and refrigeration, air conditioning, and heat pump components that use HFCs are subject to requirements for labeling, annual reporting, and recordkeeping. The labeling requirements take effect on the same date as the manufacture and import compliance date for each subsector. The reporting and recordkeeping requirements for all subsectors covered by this rule begin with 2025 data which must be reported by March 31, 2026, and annually thereafter. Reference the Technology Transitions HFC Restrictions by Sector and/or final rule for more detailed information.

What is the difference between RACHP products versus RACHP systems?

The Technology Transitions Program restricts the manufacture and import of certain refrigeration, air conditioning, and heat pump (RACHP) products and the installation of certain RACHP systems.

• An RACHP product is a piece of equipment that is functional upon completion of manufacturing in a factory. Functional means that the equipment’s refrigerant circuit is complete, it is charged with refrigerant, and it is ready for use for its intended purpose. EPA considers an RACHP product to be functional upon leaving the factory even if it must still be connected to water lines, electrical circuits, or requires additional adjustments that do not interact with or open the HFC refrigerant loop. Examples of products include window air conditioning units, refrigerators, residential dehumidifiers, packaged terminal air conditioners, and self-contained ice machines.
• An RACHP system is equipment that is functional upon installation in the field when it is assembled from multiple components or charged with refrigerant. Functional means that the equipment’s refrigerant circuit is complete, it is charged with refrigerant, and it is ready for use for its intended purpose. Examples of systems include supermarkets with a centralized compressor room, retail food cases with remote condensing units, and mini-split air conditioners. Components include equipment such as compressors, condensers, and display cabinets. EPA is restricting the installation of new systems using HFCs with global warming potentials above the relevant regulatory thresholds; EPA is not restricting the manufacture, import, sale, distribution, or export of components.

Can I continue to use my air conditioner?

Yes, you can continue to use your air conditioner (or aerosol, or foam, or any existing products or systems covered by this rule). The 2023 Technology Transitions Rule does not limit the use of any existing product or system. This rule is forward looking and restricts new products and systems from being placed on the market or entering operation. This rule was designed specifically so that owners of refrigeration and air conditioning systems and products can continue to use and repair legacy systems throughout their useful life.

Can I repair my existing residential air conditioning, supermarket, ice rink, etc. that uses higher-GWP HFCs?

Yes, you can continue to repair your existing refrigeration, air conditioning, and heat pump system. This includes replacing a major component like a condensing unit or compressor. New components may also continue to be manufactured and imported to allow existing systems to be maintained for the length of their useful life. However, the availability of HFCs and components may lessen over time as HFCs are phased down.

Where can I get information on substitute refrigerants?

Sources of information on substitute refrigerants include the EPA’s Significant New Alternatives Policy Program, as well as the United Nations Environment Programme Ozone Secretariat’s Technology and Economic Assessment Panel (TEAP) reports.

What are the labeling requirements established by the Technology Transitions Program?

For regulated sectors and subsectors, certain information is required on labels for products, specified components, and systems that contain HFCs. The timeline for labeling products aligns with the sector-based restrictions, with requirements for certain sectors beginning January 1, 2025.

Specific labeling requirements vary based on the type of equipment, but typically include the date of manufacture, the intended HFC(s) or blend(s), the charge size, the date of charge, and/or other details. Physical labels must be in English, affixed to the outside of the product, visible and legible, displayed in a contrasting color, and able to withstand outdoor exposure, where applicable.

See the final rule for detailed information on the labeling requirements.

Do all aerosols, foams, and RACHP equipment have to be labeled?

No. Only products and equipment that contain an HFC must be labeled in accordance with this rule. Many products in these sectors do not use HFCs and do not need to be labeled. Companies may voluntarily choose to indicate on a label that it does not use HFCs.

How do I label my pesticide product so that it complies with the 2023 Technology Transitions Rule requirements and the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) requirements?

In October 2023, EPA published a final rule that restricts the use of Global Warming Potential (GWP) hydrofluorocarbons (HFCs) in specific sectors or subsectors (88 FR 73098). The rule also establishes labeling, recordkeeping, and reporting requirements and addresses certain other elements related to the effective implementation of the American Innovation and Manufacturing (AIM) Act.

To meet Technology Transitions labeling requirements, manufacturers and importers must include the following:

(1) The chemical name(s) or American Society of Heating, Refrigerating and Air-Conditioning Engineers designation of any regulated substance(s) or blend containing a regulated substance used;

(2) If an HFC with a GWP higher than the limit is used or if multiple HFCs are used, either the weights of the HFC(s) relative to the other blowing agents, propellants, solvents, or to the other HFCs must be on the label, or the label must state “GWP<150.”

(3) The full date, or at minimum the four-digit year, of manufacture.

Additional labeling requirements are described in the Technology Transitions final rule (88 FR 73098).

Pesticide Registration Notice 98-10 discusses the revision, addition or deletion of non-Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) related label elements through non-notification. EPA considers the information described above to be non-FIFRA related. As such, the Agency does not require notification or approval of such changes to the label before product is distributed or sold. Please note that the additional information added to a pesticide label through non-notification must not be false or misleading or detract from the information required by FIFRA.

Questions regarding Technology Transitions Program labeling requirements should be directed to EPA’s Office of Atmospheric Protection, Stratospheric Protection Division, Technology Transitions Branch via our contact us page. 

What are the reporting requirements for the Technology Transitions Program?

For regulated sectors and subsectors, any entity that manufactures or imports products or components that use HFCs is subject to recordkeeping and reporting requirements. Covered entities will register and report electronically. Reporting requirements for all subsectors begin with 2025 data. Manufacturers and importers must report 2025 data by March 31, 2026, and annually thereafter. Reporting is not required of entities that only sell or distribute equipment or install or operate new refrigeration, air conditioning, and heat pump systems. See the final rule for detailed information on the reporting and recordkeeping requirements.

The 2023 Technology Transitions Rule references the fire suppression sector. Did EPA establish any restrictions for this sector?

The use of HFCs in the fire suppression sector is not restricted in the 2023 Technology Transitions Rule. The Agency may consider additional HFC use restrictions in the future, but at this time there are no restrictions or requirements on the fire suppression sector under the Technology Transitions Program.

Are heat pump water heaters and heat pump pool heaters subject to restrictions in the 2023 Technology Transitions Rule?

Heat pump water heaters use a vapor-compression refrigerant cycle to transfer heat from the surrounding air to heat water in a storage tank. Heat pump water heaters and heat pump pool heaters are not subject to the 2023 Technology Transitions Rule.

Are compressed air dryers subject to restrictions in this rule?

Compressed air dryers remove water vapor from air that has been compressed, often before it enters an industrial process. Such equipment is outside the scope of the subsectors covered by the 2023 Technology Transitions Rule and is not subject to the rule.  

Are battery cooling systems used in electric vehicles subject to restrictions in this rule?

A battery cooling system used in an electric vehicle that uses the same refrigerant circuit (i.e., same condenser(s) or compressor) as the motor vehicle air conditioner that cools the passenger compartment is subject to the motor vehicle air conditioning subsector restrictions of the 2023 Technology Transitions Rule. Battery cooling that is independent of the motor vehicle air conditioner is not subject to the rule.

How are stand-alone freezers that are used in laboratories and bio-medical settings classified under the Technology Transitions Program?

Specialized refrigerated laboratory equipment, including freezers, are considered part of the industrial process refrigeration subsector under the 2023 Technology Transitions Rule. For more information about the industrial process refrigeration restrictions, see “Can you clarify the restrictions under the industrial process refrigeration subsector and explain how the two sides of a cascade refrigeration system are considered under the Technology Transitions Program?”

Does the 2023 Technology Transitions Rule apply to refrigeration and air-conditioning equipment for aircraft?

EPA did not propose or finalize restrictions for onboard aircraft cabin air conditioning; therefore, such equipment is not subject to the 2023 Technology Transitions Rule. However, ground-based supplemental cooling units are subject to restrictions under the residential and light commercial air conditioning and heat pump subsector. EPA notes that galley refrigeration equipment falls within the retail food – stand-alone unit subsector, but given galley refrigeration units operate under specific conditions, such as in occupied, pressurized aircraft cabin at altitude, EPA elected not to apply restrictions to that use. EPA may revisit this application through a notice-and-comment rulemaking for retail food refrigeration—stand-alone units no later than five years after the compliance date for this subsector (i.e., January 1, 2030).

Is friction testing equipment, such as rotation traction measuring equipment, which uses refrigerants to produce ice to determine the friction coefficients of a compound, subject to restrictions in this rule?

Such equipment is outside the scope of the subsectors covered by the 2023 Technology Transitions Rule and is not subject to the rule.

Are residential or household stand-alone ice makers covered by the residential refrigeration sector restrictions?

The 2023 Technology Transitions Rule inadvertently included "household ice makers" as an example of a product within the residential refrigeration subsector. EPA corrected this reference in an interim final rule that states that stand-alone residential or household ice makers are not subject to the Technology Transitions restrictions. For more information, please reference the interim final rule.

Are semiconductor manufacturers exempt from this final rule?

HFC uses that are receiving application-specific allowances consistent with 40 CFR 84.13(a), including the etching of semiconductor material or wafers and the cleaning of chemical vapor deposition chambers within the semiconductor manufacturing sector, are not covered by this rule. Other HFC-containing equipment (such as chillers or industrial process refrigeration systems) used in semiconductor manufacturing outside of processes for which application-specific allowances are provided may be subject to this rule. 

Can I re-import equipment such as self-contained chillers or heavy-duty vehicles that are sent overseas for use or repair?

Yes. Privately-owned equipment (whether owned by an individual or a company) that is sent abroad can return to the United States and is not subject to the restrictions that apply to the import of used products. EPA’s restriction covers the activities of entities bringing shipments of used products into the country for subsequent sale or distribution.

Can you clarify the restrictions under the industrial process refrigeration subsector and explain how the two sides of a cascade refrigeration system are considered under the Technology Transitions Program?

The 2023 Technology Transitions Rule considers the high and low temperature sides of a cascade refrigeration system separately. The restrictions for single stage and cascade equipment in the industrial process refrigeration subsector are as follows:

Temperature of Refrigerant Entering the Evaporator	Charge Size	Single Stage (No Cascade)	Cascade - Low Temperature Side	Cascade - High Temperature Side
Below -50 °C	Any	No restrictions
Between -50 °C and -30 °C	Any	GWP limit: 700 Compliance date: January 1, 2028
-30 °C or above	Below 200 pounds	GWP limit: 300 Compliance date: January 1, 2026
	200 pounds or more	GWP limit: 150 Compliance date: January 1, 2026	GWP limit: 150 Compliance date: January 1, 2026	GWP limit: 300 Compliance date: January 1, 2026

Which temperature category applies to industrial process refrigeration equipment that operates at multiple temperatures and therefore could be subject to different restrictions?

For equipment that operates at temperatures that span more than one of the industrial process refrigeration temperature categories (e.g., between -50°C and -30°C, and above -30°C), the coldest temperature that the equipment is designed to achieve is the basis for categorization. For equipment using a cascade refrigeration system, the high and low temperature sides are categorized separately.

Questions on Products and Systems

Note: The terms “Products” and “Systems” have specific meaning under the Technology Transitions Program. For more information on these definitions go to “Can EPA explain the terminology used in the Technology Transitions Program?”

Is a condensing unit a product? What if it is charged at the factory?

A condensing unit is not a product for purposes of the Technology Transitions Program. It is a component. Whether it is pre-charged or field charged, it must be connected to an evaporator to serve its intended purpose.

Is a thermal expansion valve a product? Is it considered under the Technology Transitions Program?

No, a thermal expansion valve is not considered a product or specified component under the Technology Transitions Program. Thermal expansion valves are not subject to the restrictions in this rule.

Is a chiller a product or a system?

EPA considers a chiller to be a product if it is functional upon completion of manufacturing in a factory. EPA considers a chiller to be a system if it is assembled from multiple components in the field or charged with refrigerant in the field. For further clarification, see “What is the difference between RACHP products versus RACHP systems?”

Is an ice machine a product or a system?

EPA considers an ice machine to be a product if it is functional upon completion of manufacturing in a factory such as is the case with self-contained ice machines. EPA considers an ice machine to be a system if it is assembled from multiple components in the field or charged with refrigerant in the field. For further clarification, see “What is the difference between RACHP products versus RACHP systems?”

Is a car air conditioner a product? Is a passenger car a product?

The motor vehicle air conditioner (MVAC) is a product subject to the rule. Because the MVAC is incorporated into the car, the car is subject to the same restrictions on manufacture, import, sale, and export as the MVAC itself.

Is a self-contained kitchen wine cooler a product?

Yes.

Can the owner of a product that is subject to the Technology Transitions Program move that equipment within or between facilities after the manufacture or import compliance date?

The Technology Transitions Program does not restrict owners’ actions with respect to a product after it has been purchased by the owner or after the product has experienced ordinary operation or utilization by a consumer. Owners may sell or move used products.

What are the main parts of a system?

The design of systems vary widely but all operate under the principle of using a circuit of refrigerant to transfer heat from one side of the system to another. For purposes of the Technology Transitions Program, five components are specifically identified: compressors, condensing units or condensers, and evaporator units or evaporators. Refrigerant tubing and thermal expansion valves are excluded from the requirements of the rule. Electronics, fan motors, ducts, and other parts outside the refrigerant loop are also excluded from the requirements of the rule.

Homeowner Questions on Residential Air Conditioner Split Systems

My R-410A unitary air conditioner condensing unit broke. Do I need to buy a whole new system with the lower-GWP refrigerant or can I replace the faulty component?

Homeowners can maintain and repair their systems throughout the useful life of the equipment. A homeowner can replace a faulty component (e.g., condensing unit, indoor coil, other smaller parts) with a similar R-410A component. After January 1, 2026, if a whole new system is installed it must use lower-GWP refrigerant.

What is a new system?

For residential air conditioner split systems, a new system would be installed in a newly constructed home. A new system would also be installed if both the condensing unit and indoor coil are replaced together. The condensing unit contains the condenser coil and compressor, and the indoor coil is the evaporator.

If I leave the existing refrigerant lines but replace the condensing unit and indoor coil, is it a new system?

Yes. Refrigerant lines are generally not removed when replacing the other mechanical components of a system. Therefore, even if refrigerant lines are unchanged, replacing all the other components would result in a new system for purposes of the Technology Transitions Program.

Can I replace the condensing unit and replace the indoor coil at a later time?

Yes. Systems may be repaired over time. Factors for homeowners to consider when deciding to repair or transition to a new system using a lower-GWP refrigerant include availability of components, energy efficiency, and total maintenance costs.

I am designing a new house/addition to an existing house - what system can I install?

Any new split system installed after January 1, 2026, must use refrigerant with a GWP less than 700. The GWP limits do not apply to systems installed before January 1, 2026.

Which subsector applies to heating, ventilation, and air conditioning (HVAC) systems used in new construction projects of multi-family housing?

This equipment may be covered under one of a few different subsectors depending on the specific technology used and the size of the system. Subsectors include the residential and light commercial air conditioning and heat pump subsector, the variable refrigerant flow systems subsector, and the chillers for comfort cooling subsector.

Examples of multi-family housing applications that fall under the residential and light commercial air conditioning and heat pump subsector include individual unitary split systems provided to each dwelling, multi-split systems with separate registers in each dwelling connected to a common condensing unit, and pre-charged products such as a window air conditioner. The variable refrigerant flow systems subsector covers water-source variable refrigerant flow systems of any capacity and air-source variable refrigerant flow systems with capacity of 65,000 British Thermal Units per hour (BTU/hr) (19 kW) or more. An example of a multi-family housing application that falls under the chillers for comfort cooling subsector includes a building that utilizes a central chiller to distribute cooled water through radiators or fan coil units in each residence or to duct work that provides cooled air to each residence.

Does EPA intend to make changes to the ban on installing new residential heat pump and air conditioning systems using refrigerants with GWPs higher than 700 as of January 1, 2025, and variable refrigerant flow (VRF) systems using refrigerants with GWPs higher than 700 as of January 1, 2026? 

EPA understands that for new residential construction, including both single-family and multi-family dwellings, where builders order heating and cooling equipment well in advance of knowing the exact date of installation, the imminent compliance date has raised concerns about system components that may already be in the distribution chain. On December 26, 2023, EPA published an interim final rule to address concerns regarding the January 1, 2025, installation compliance date for residential heat pump and air conditioning systems by amending the final regulation to allow for installation of higher-GWP HFC equipment manufactured or imported before January 1, 2025, to be installed until January 1, 2026.

Separately, EPA published a proposed rule on June 26, 2024, to address concerns regarding the January 1, 2026, installation compliance date for variable refrigerant flow systems. The proposed rule would allow new VRF systems using HFCs with a GWP above 700 to be installed until January 1, 2027, so long as all components are manufactured or imported prior to Jan 1, 2026. For more information on both of these actions, please reference the Regulatory Actions for Technology Transitions webpage.

Original Equipment Manufacturer Questions on Residential Air Conditioner Split Systems

Note: Many questions in this section use R-410A residential air conditioner split systems as an example. The concepts presented are also applicable to commercial refrigeration systems or other refrigeration, air conditioning, and heat pump subsectors, though the dates may be different.

Can I manufacture residential air conditioner condensing units designed to use R-410A after January 1, 2025?

Yes. All parts of an R-410A residential air conditioning unit (e.g., inside unit, outside unit, line-sets) can continue to be manufactured. Specified components (i.e., condensing units, condensers, compressors, evaporator units, and evaporators) manufactured with R-410A after January 1, 2025, must be clearly labeled noting that the component may be used “for servicing existing equipment only”.

Can I import residential air conditioner condensing units designed to use R-410A after January 1, 2025?

Yes.

Is there a date when I can no longer sell condensing units designed to use R-410A?

No. Components are not subject to the prohibitions on sale, distribution, and export.

Do condensing units manufactured or imported for servicing need to be dry-shipped or can they be charged with R-410A at the factory?

Components can be dry-shipped, fully charged, or partially charged.

What restrictions apply to an original equipment manufacturer or importer of residential air conditioning condensing units using R-410A?

Original equipment manufacturers and importers of components are subject to reporting and labeling requirements. Original equipment manufacturers and importers of products (discussed below) are subject to restrictions on manufacture, import, export, and sale, in addition to the reporting and labeling requirements.

Do I need to label equipment that was manufactured before January 1, 2025, and placed in inventory?

No. Labels are required for components and products that are manufactured or imported after January 1, 2025. Existing inventory either imported or manufactured prior to January 1, 2025, does not need to be relabeled.

What are examples of air-conditioning and heat pump equipment categorized as “residential and light commercial” under the Technology Transitions Program?

The residential and light commercial air conditioning and heat pump subsector includes equipment for cooling air in individual rooms, single-family homes, and small commercial buildings.  Note that chillers and certain variable refrigerant flow systems are covered under their own subsectors and not the residential and light commercial air conditioning subsector.

Original Equipment Manufacturer Questions on Products

Note: These questions use packaged terminal air conditioners as an example of how a product is treated under the rule. The concepts presented are also applicable to products in other refrigeration, air conditioning, and heat pump subsectors such as stand-alone retail food refrigerators or self-contained refrigerated transport equipment, as well as foams and aerosols though the dates may be different.

I import R-410A packaged terminal air conditioners that are manufactured outside of the United States. When must I stop importing them?

The import of R-410A residential and light commercial air conditioning products is prohibited starting January 1, 2025. Refrigerants with GWPs below the relevant regulatory thresholds are required for air conditioners and packaged terminal air conditioners after that date.

Can I sell packaged terminal air conditioners manufactured overseas using R-410A that have been imported before January 1, 2025?

Yes. Products not meeting the new GWP limits can continue to be sold for three years after the import restriction date. Thus, packaged terminal air conditioners using R-410A may be sold, distributed, or exported until January 1, 2028.

Can I tranship products through the United States to other countries in North America?

Yes. As with bulk HFCs, products or components can be transhipped from a foreign country of origin through the United States or its territories to a second foreign country of final destination as long as the shipment does not enter U.S. commerce. A transhipment as it moves through the United States or its territories cannot be repackaged, sorted, or otherwise changed in condition.

I make packaged terminal air conditioner products in the United States using R-410A. When must I stop manufacturing them?

The manufacture of R-410A residential and light commercial air conditioning products is prohibited starting January 1, 2025.

Can I continue to make packaged terminal air conditioner products in the United States using R-410A provided they are exported?

No. The manufacture of packaged terminal air conditioner products using R-410A is prohibited starting January 1, 2025, regardless of whether they are for the domestic or export market. Packaged terminal air conditioners using R-410A manufactured before January 1, 2025, may be sold, distributed, or exported until January 1, 2028. New packaged terminal air conditioners manufactured after January 1, 2025, must use a lower-GWP refrigerant.

I make packaged terminal air conditioner products in the United States using reclaimed R-410A. May I continue to make them provided I only use reclaimed refrigerant?

No. The manufacture of packaged terminal air conditioners using R-410A is prohibited January 1, 2025, regardless of whether they are charged with virgin or reclaimed refrigerant.

I make packaged terminal air conditioner products in the United States using R-32. How does the rule apply to me?

The GWP of R-32 is below the GWP limit of 700 for the residential and light commercial air conditioner subsector and thus such products can continue to be manufactured, sold, distributed, and exported. Starting January 1, 2025, manufacturers and importers must keep records and report certain manufacturing data to EPA by March 31, 2026. Also starting January 1, 2025, manufacturers must affix a label indicating the use of an HFC.

I make refrigerators in the United States using isobutane as a refrigerant but with HFC polyurethane insulation foam. How does the rule apply to me?

Isobutane is not an HFC and thus is not subject to the restrictions of this rule. Starting January 1, 2025, an HFC blowing agent for appliance insulation foam must have a GWP less than 150. If an HFC is used as a blowing agent, starting January 1, 2025, manufacturers must keep records and report certain manufacturing data to EPA by March 31, 2026. Also starting January 1, 2025, manufacturers must affix a label indicating the use of an HFC.

I manufacture a product that uses HFCs but not as a refrigerant, propellant, or foam blowing agent. How does the rule apply to me?

Your product would not be subject to the rule. This rule prohibits the use of HFCs in specific sectors and subsectors. Products used for a purpose not covered by the rule are still allowed. For example, products using HFCs as a fire-suppression agent may continue to be manufactured, imported, exported, or sold. None of the recordkeeping, reporting, or labeling requirements of this rule would apply. Thermal expansion valves are similar products that are not subject to the rule.

Original Equipment Manufacturer Questions on Motor Vehicle Air Conditioning

What is the compliance date for the restrictions for using HFCs with a GWP above the 150 GWP threshold use in light-duty Motor Vehicle Air Conditioning (MVAC)?

Effective October 24, 2024, a regulated substance, or a blend containing a regulated substance, with a global warming potential of 150 or greater can no longer be used for Model Year 2025 and subsequent model year light-duty passenger cars and trucks (vehicles with a gross vehicle weight rating less than 8,500 lbs) that are manufactured or imported into the United States. 

How does the 2023 Technology Transitions Rule impact selling, purchasing, importing, or exporting used motor vehicles?  

This rule does not restrict sale, purchasing, import, or export of used motor vehicles.  

We understand that for the U.S. market, currently the vast majority of light-duty motor vehicle manufacturers are using hydrofluoroolefin (HFO)-1234yf as a refrigerant in their MVACs. Will manufacturers of light-duty vehicles that use non-HFC refrigerants including HFO-1234yf for MVAC be subject to reporting and labeling requirements established under the 2023 Technology Transitions Rule? 

No, only MVACs using HFCs are subject to these new reporting and labeling requirements. However, other requirements, including the labeling requirements established under the Significant New Alternatives Policy (SNAP) program, continue to apply to MVACs using both HFC and non-HFC refrigerants.  

Distributor Questions

Note: Many questions in this section use R-410A residential air conditioner split systems as an example. The concepts presented are also applicable to commercial refrigeration systems or other refrigeration, air conditioning, and heat pump systems, though the dates may be different.

Can I sell residential air conditioner components using R-410A after the January 1, 2026 installation deadline?

Yes. The Technology Transitions Program allows for the continued sale and distribution of condensing units, indoor coils, indoor air handling units, and other parts that use R-410A so long as they are used to service legacy R-410A systems. Components using R-410A cannot be used to install a new R-410A system beginning January 1, 2026. Specified components (i.e., condensing units, condensers, compressors, evaporator units, and evaporators) manufactured with R-410A after January 1, 2025, must be clearly labeled noting that the component may be used “for servicing existing equipment only.”

How do I know whether the R-410A components I distribute are going to be installed into a new system (not allowed) or to service a legacy system (allowed)?

Original equipment manufacturers and distributors of components are typically not responsible for the installation of the equipment that they sell. Generally speaking, the responsible party would be the company that installs or directs the installation of the system. This may be different for complex and custom-designed refrigeration, air conditioning, and heat pump systems such as supermarkets and industrial process refrigeration if the distributor or original equipment manufacturer is involved in the design of the system.

Do I need to label equipment that was manufactured before January 1, 2025, but held in our inventory?

No. The labeling requirements apply to original equipment manufacturers for components and products that are manufactured or imported after January 1, 2025.

Do I need to maintain records or provide reports to EPA about the equipment I sell?

The recordkeeping and reporting requirements apply to manufacturers and importers of products and the following five components: condensing units, condensers, compressors, evaporator units, and evaporators. Distributors that are not importers do not need to keep records of sales or provide reports to EPA.

Do I need allowances to import products or components containing HFCs?

No. Allowances are required for the import of bulk HFCs, not products containing HFCs.

Do I need prior authorization from EPA to import products or components containing HFCs?

No.

Technician Questions

Note: Many questions in this section use R-410A residential air conditioner split systems as an example. The concepts presented are also applicable to commercial refrigeration systems or other refrigeration, air conditioning, and heat pump subsectors, though the dates may be different.

Can I use existing R-410A components (either used or held in inventory) to build a new R-410A system after January 1, 2025?

No. No new system may be installed using HFC refrigerants about the GWP limit after the compliance date, even if the components were manufactured prior to that date.

Can I replace a broken R-410A outdoor condensing unit with one that uses a lower GWP refrigerant?

The 2023 Technology Transitions Rule does not address this issue, but it may be possible depending on the circumstances. EPA’s Significant New Alternatives Policy (SNAP) Program and industry standards prohibit the use of flammable or mildly flammable refrigerants such as HFC-32 or R-454B in systems that were not designed to use them. There may also be engineering and design considerations that could prevent the use of non-flammable refrigerants (e.g., pressures).

Can I replace a broken R-22 outdoor condensing unit with an R-410A condensing unit?

No. In this situation the R-22 indoor coil would not be compatible with R-410A due to the difference in pressures. R-410A is also not listed as acceptable by the SNAP Program as a retrofit for R-22 systems. Therefore, the whole system would need to be replaced, and under the 2023 Technology Transitions Rule, replacement of the system triggers the GWP limit.

Questions on Supermarket Systems

Note: These questions use R-404A or R-407A supermarket systems as an example. The concepts presented are also applicable to other commercial refrigeration systems, industrial process refrigeration, or other refrigeration, air conditioning, and heat pump subsectors, though the dates may be different.

Can I replace a part or component on my R-404A or R-407A supermarket system in my store after January 1, 2027?

Yes. Stores can maintain and repair legacy systems throughout the useful life of the equipment.

Can replacement components manufactured prior to the GWP limit effective date be used for maintenance?

Replacement components, regardless of manufacture date, can be used for maintenance.

Can display cases be replaced with like product in 2028 with cases that were built in 2027 (or 2020)?

Display cases are components and can be replaced regardless of manufacture date.

Can display cases be replaced with different cases in 2028, removing three open cases and installing six cases with doors to reduce energy consumption.

More energy efficient display cases may be installed so long as the cooling capacity of the system in BTU/hr is not increased. Increasing the cooling capacity of the system triggers the requirements of a new system.

Can compressors be replaced in 2028 with compressors that were built in 2027 (or 2020) as a repair?

Replacement components, regardless of manufacture date, can be used for maintenance.

Is there a point at which replacing components triggers the GWP limits for new systems?

Yes. Replacing 75% or more of the evaporators (by number) and 100 percent of the compressor racks, condensers, and connected evaporator loads of an existing system would trigger the requirements of new systems.

Can I use compressors, condensers, evaporators, and cases with a date of manufacture prior to Dec 31, 2026, to install a new system that is subsequently charged with R-448?

The rule does not allow for the installation of new systems after the effective date that exceeds the GWP limit, regardless of the manufacture date of the components.

Can I retrofit my R-404A or R-407A supermarket system to use R-448A or R-449A after January 1, 2027?

Yes. The rule does not address the retrofit of legacy systems.

Questions on Petitions to Restrict HFCs in Technologies

What are petitions?

Any person may petition EPA to restrict the use of HFCs in sectors or subsectors. Once EPA receives a petition under subsection (i), the AIM Act directs the Agency to evaluate the petition and to grant or deny the petition within 180 days of receipt. Find more information about the petition process on the Overview of the Petitions Process page.

How does EPA evaluate petitions?

EPA must make the evaluation of a petition available to the public. Petitions may be found on EPA’s Technology Transitions web site. Under subsection (i) of the AIM Act, EPA must evaluate petitions using the following factors:

• The best available data.
• The availability of substitutes for use of the HFC that is the subject of the petition, in a sector or subsector, taking into account technological achievability, commercial demands, affordability for residential and small business consumers, safety, consumer costs, building codes, appliance efficiency standards, contractor training costs, and other relevant factors, including the quantities of HFCs available from reclaiming, prior production, or prior import.
• Overall economic costs and environmental impacts, as compared to historical trends.
• The remaining phase-down period for HFCs under the allowance allocation program, if applicable.