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Proposed Rule2023-22526

Phasedown of Hydrofluorocarbons: Management of Certain Hydrofluorocarbons and Substitutes Under Subsection (h) of the American Innovation and Manufacturing Act of 2020

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Published

October 19, 2023

Issuing agencies

Environmental Protection Agency

Abstract

The U.S. Environmental Protection Agency is proposing to issue regulations to implement certain provisions of the American Innovation and Manufacturing Act of 2020. This rulemaking proposes to establish a program for the management of hydrofluorocarbons that includes requirements for leak repair and use of automatic leak detection systems for certain equipment using refrigerants containing hydrofluorocarbons and certain substitutes; requirements for the use of reclaimed hydrofluorocarbons in certain sectors or subsectors; the use of recycled hydrofluorocarbons in fire suppression equipment; recovery of hydrofluorocarbons from cylinders; container tracking; and certain recordkeeping, reporting, and labeling requirements. The Environmental Protection Agency is also proposing alternative Resource Conservation and Recovery Act standards for spent ignitable refrigerants being recycled for reuse. Finally, EPA requests advance comment on approaches for establishing requirements for technician training and/or certification.

Full Text

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[Federal Register Volume 88, Number 201 (Thursday, October 19, 2023)]
[Proposed Rules]
[Pages 72216-72312]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-22526]

[[Page 72215]]

Vol. 88

Thursday,

No. 201

October 19, 2023

Part II

Environmental Protection Agency

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40 CFR Parts 84, 261, 262, et al.

Phasedown of Hydrofluorocarbons: Management of Certain
Hydrofluorocarbons and Substitutes Under Subsection (h) of the American
Innovation and Manufacturing Act of 2020; Proposed Rule

Federal Register / Vol. 88, No. 201 / Thursday, October 19, 2023 /
Proposed Rules

[[Page 72216]]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 84, 261, 262, 266, 270, and 271

[EPA-HQ-OAR-2022-0606; FRL-10105-01-OAR]

Phasedown of Hydrofluorocarbons: Management of Certain
Hydrofluorocarbons and Substitutes Under Subsection (h) of the American
Innovation and Manufacturing Act of 2020

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking and advance notice of proposed
rulemaking.

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SUMMARY: The U.S. Environmental Protection Agency is proposing to issue
regulations to implement certain provisions of the American Innovation
and Manufacturing Act of 2020. This rulemaking proposes to establish a
program for the management of hydrofluorocarbons that includes
requirements for leak repair and use of automatic leak detection
systems for certain equipment using refrigerants containing
hydrofluorocarbons and certain substitutes; requirements for the use of
reclaimed hydrofluorocarbons in certain sectors or subsectors; the use
of recycled hydrofluorocarbons in fire suppression equipment; recovery
of hydrofluorocarbons from cylinders; container tracking; and certain
recordkeeping, reporting, and labeling requirements. The Environmental
Protection Agency is also proposing alternative Resource Conservation
and Recovery Act standards for spent ignitable refrigerants being
recycled for reuse. Finally, EPA requests advance comment on approaches
for establishing requirements for technician training and/or
certification.

DATES: Comments on this notice of proposed rulemaking must be received
on or before December 18, 2023. Under the Paperwork Reduction Act
(PRA), comments on the information collection provisions are best
ensured of consideration if the Office of Management and Budget (OMB)
receives a copy of your comments on or before November 20, 2023. The
Environmental Protection Agency (EPA) will hold a virtual public
hearing on or about November 3, 2023. The date, time, and other
relevant information for the virtual public hearing will be available
at <a href="https://www.epa.gov/climate-hfcs-reduction">https://www.epa.gov/climate-hfcs-reduction</a>.

ADDRESSES: You may send comments, identified by docket identification
number EPA-HQ-OAR-2022-0606, by any of the following methods:
<bullet> Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>
(our preferred method). Follow the online instructions for submitting
comments.
<bullet> Mail: U.S. Environmental Protection Agency, EPA Docket
Center, Air and Radiation Docket, Mail Code 28221T, 1200 Pennsylvania
Avenue NW, Washington, DC 20460.
<bullet> Hand Delivery or Courier (by scheduled appointment only):
EPA Docket Center, WJC West Building, Room 3334, 1301 Constitution
Avenue NW, Washington, DC 20004. The Docket Center's hours of
operations are 8:30 a.m.-4:30 p.m., Monday-Friday (except Federal
Holidays).
Instructions: All submissions received must include the Docket ID
No. for this rulemaking. Comments received may be posted without change
to <a href="https://www.regulations.gov">https://www.regulations.gov</a>, including any personal information
provided. The EPA Docket Center and Reading Room are open to the public
by appointment only. Our Docket Center staff also continue to provide
remote customer service via email, phone, and webform. We encourage the
public to submit comments via <a href="https://www.regulations.gov">https://www.regulations.gov</a> as there may
be a delay in processing mail. Hand deliveries and couriers may be
received by scheduled appointment only. For further information on EPA
Docket Center services and the current status, please visit us online
at <a href="https://www.epa.gov/dockets">https://www.epa.gov/dockets</a>.
You may find the following suggestions helpful for preparing your
comments: Direct your comments to specific sections of this proposed
rulemaking and note where your comments may apply to future separate
actions where possible; explain your views as clearly as possible;
describe any assumptions that you used; provide any technical
information or data you used that support your views; provide specific
examples to illustrate your concerns; offer alternatives; and, make
sure to submit your comments by the comment period deadline. Please
provide any published studies or raw data supporting your position.
Multimedia submissions (audio, video, etc.) must be accompanied by a
written comment. The written comment is considered the official comment
and should include discussion of all points you wish to make. EPA will
generally not consider comments or comment contents located outside of
the primary submission (e.g., on the web, cloud, or other file sharing
system).
Do not submit any information you consider to be Confidential
Business Information (CBI) through <a href="https://www.regulations.gov">https://www.regulations.gov</a>. For
submission of confidential comments, please work with the person listed
in the FOR FURTHER INFORMATION CONTACT section. For additional
submission methods, the full EPA public comment policy, information
about CBI or multimedia submissions, and general guidance on making
effective comments, please visit <a href="https://www.epa.gov/dockets/commenting-epa-dockets">https://www.epa.gov/dockets/commenting-epa-dockets</a>.

FOR FURTHER INFORMATION CONTACT: Christian Wisniewski, Stratospheric
Protection Division, Office of Atmospheric Protection (Mail Code
6205A), Environmental Protection Agency, 1200 Pennsylvania Ave. NW,
Washington, DC 20460; telephone number: 202-564-0417; email address:
<a href="/cdn-cgi/l/email-protection#02756b716c6b677571696b2c616a706b71766b636c426772632c656d74">[email&#160;protected]</a>. You may also visit EPA's website at
<a href="https://www.epa.gov/climate-hfcs-reduction">https://www.epa.gov/climate-hfcs-reduction</a> for further information.
For information related to the proposed alternative standards for
certain ignitable spent refrigerants under the Resource Conservation
and Recovery Act (RCRA), please contact Tracy Atagi, Materials Recovery
and Waste Management Division, Office of Resource Conservation and
Recovery (5304T), Environmental Protection Agency, 1200 Pennsylvania
Ave. NW, Washington, DC 20460; telephone number: (202) 566-0511; email
address: <a href="/cdn-cgi/l/email-protection#a6c7d2c7c1cf88d2d4c7c5dfe6c3d6c788c1c9d0">[email&#160;protected]</a>.

SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,''
``us,'' ``the Agency,'' or ``our'' is used, we mean EPA. Acronyms that
are used in this rulemaking that may be helpful include:

AC--Air Conditioning
AHRI--Air-Conditioning, Heating, and Refrigeration Institute
ALD--Automatic Leak Detection
AIM Act--American Innovation and Manufacturing Act of 2020
APF--Air Permitting Forum
ASHRAE--American Society of Heating, Refrigerating and Air-
Conditioning Engineers
ASTM--American Society for Testing and Materials
CAA--Clean Air Act
CARB--California Air Resources Board
CBI--Confidential Business Information
CBP--U.S. Customs and Border Protection
CFC--Chlorofluorocarbon
CFR--Code of Federal Regulations
CO<INF>2</INF>e--Carbon Dioxide Equivalent
DOT--Department of Transportation
ECHO--Enforcement and Compliance History Online
e-GGRT--Electronic Greenhouse Gas Reporting Tool
ENGO--Environmental Non-governmental Organization
E.O.--Executive Order
EPA--Environmental Protection Agency

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EVe--Exchange Value Equivalent
FEMA--Fire Equipment Manufacturers Association
FOIA--Freedom of Information Act
FR--Federal Register
FSSA--Fire Suppression Systems Association
FSTOC--Fire Suppression Technical Options Committee
GHG--Greenhouse gas
GHGRP--Greenhouse Gas Reporting Program
GWP--Global Warming Potential
HAP--Hazardous Air Pollutant
HARC--Halon Alternatives Research Corporation
HCFC--Hydrochlorofluorocarbon
HD--Heavy-duty
HEEP--HFC Emissions Estimating Program
HFC--Hydrofluorocarbon
HFO--Hydrofluoroolefin
HSWA--Hazardous and Solid Waste Amendments of 1984
HTOC--Halons Technical Options Committee
ICR--Information Collection Request
IPCC--Intergovernmental Panel on Climate Change
IPR--Industrial Process Refrigeration
IWG--Interagency Working Group on the Social Cost of Greenhouse
Gases
ISO--International Organization for Standardization
MACS--Mobile Air Climate Systems Association
MMTCO<INF>2</INF>e--Million Metric Tons of Carbon Dioxide Equivalent
MMTEVe--Million Metric Tons of Exchange Value Equivalent
MTEVe--Metric Tons of Exchange Value Equivalent
MVAC--Motor vehicle air conditioner
NAAQS--National Ambient Air Quality Standards
NAICS--North American Industrial Classification System
NAFED--National Association of Fire Equipment Distributors
NATA--National Air Toxics Assessment
NEDA/CAP--National Environmental Development Association's Clean Air
Project
NEI--National Emissions Inventory
NFPA--National Fire Protection Association
NODA--Notice of Data Availability
NRDC--Natural Resources Defense Council
ODP--Ozone Depletion Potential
ODS--Ozone depleting substances
OEM--Original Equipment Manufacturer
OLEM--Office of Land and Emergency Management
OMB--Office of Management and Budget
ppm--Parts Per Million
PRA--Paperwork Reduction Act
R4 Program--Refrigerant Recovery, Reclaim, and Reuse Requirements
(CARB Program)
RACHP--Refrigeration, Air Conditioning, and Heat Pumps
RCOP--Recycling Code of Practice
RCRA--Resource Conservation and Recovery Act
RFA--Regulatory Flexibility Act
RIA--Regulatory Impact Analysis
RRA--Refrigerant Reclaim Australia
SC-HFC--Social Cost of Hydrofluorocarbons
SISNOSE--Significant Economic Impact on a Substantial Number of
Small Entities
SNAP--Significant New Alternatives Policy
VCOP--Voluntary Code of Practice
TRI--Toxics Release Inventory
VRF--Variable Refrigerant Flow
VSQG--Very Small Quantity Generator

Table of Contents

I. Executive Summary
A. What is the purpose of this proposed regulatory action?
B. What is the summary of this proposed regulatory action?
C. What is the summary of the costs and benefits?
II. General Information
A. Does this action apply to me?
B. What is EPA's authority for taking this action?
III. Background
A. What are HFCs?
B. How do HFCs affect public health and welfare?
C. What refrigerant management programs has EPA already
established under the Clean Air Act?
1. National Recycling and Emission Reduction Program (CAA
Section 608)
2. Motor Vehicle Air Conditioning Servicing Program (CAA Section
609)
3. Significant New Alternatives Policy Program (CAA Section 612)
IV. How is EPA proposing to regulate the management of HFCs and
their substitutes?
A. What definitions is EPA proposing to implement under
subsection (h)?
1. Which definitions is EPA proposing to adopt that parallel
definitions in 40 CFR 82.152?
2. Which definitions is EPA proposing to adopt that parallel
definitions in 40 CFR 82.32?
3. What other definitions is EPA proposing to adopt?
B. Which sectors and subsectors is EPA considering addressing
under subsection (h)?
C. How is EPA proposing to address leak repair?
1. Background
2. Scope of the Proposed Leak Repair Requirements
a. Appliances containing which refrigerants would be subject to
the proposed leak repair requirements?
b. Appliances with what charge size would be subject to the
proposed leak repair requirements?
3. What leak repair provisions is EPA proposing?
a. Leak Rate Calculations
b. Requirement To Repair Leaks, Timing and Applicable Leak Rates
c. Verification Testing
d. Leak Inspections
e. Chronically Leaking Appliances
f. Retrofit and Retirement Plans
g. Recordkeeping and Reporting
4. Automatic Leak Detection Systems
a. Proposed Automatic Leak Detection Requirements
b. Recordkeeping and Reporting
D. How is EPA proposing to establish requirements for the use of
recovered and reclaimed HFCs?
1. Background
2. Proposed Reclamation Standard
3. Proposed Requirements for Initial Charge of Equipment for
Subsectors in the RACHP Sector Subsectors in the RACHP Sector
4. Proposed Requirements for Servicing and/or Repair of Existing
Equipment in the RACHP Sector Subsectors in the RACHP Sector
E. How is EPA proposing to establish an HFC emissions reduction
program for the fire suppression sector?
1. Background
2. Nomenclature Used in This Section
3. Fire Suppression Background
4. Minimizing Releases of HFCs
a. Proposed Uquirements for Initial Charge of Equipment for Fire
Suppression
b. Proposed Requirements for Servicing and/or Repair of Existing
Equipment for Fire Suppression
c. Technician Training
d. Recycling of HFCs Prior to Disposal of Fire Suppression
Equipment Containing HFCs
e. Recordkeeping and Reporting
F. What is EPA proposing for cylinder requirements and for
container tracking requirements?
1. Background
2. Requirements for Disposable Cylinders
3. Container Tracking
a. Container Tracking of Regulated Substances
b. Container Tracking of Used Cylinders
4. Small Cans of Refrigerant
G. How is EPA proposing to establish RCRA refrigerant recycling
alternative standards?
1. Nomenclature Used in This Section
2. Background
3. Proposed Alternative RCRA Standards for Spent Ignitable
Refrigerants Being Recycled for Reuse
a. Scope of the Proposed RCRA Alternative Standards
b. Proposed Requirements for the RCRA Alternative Standards
4. Very Small Quantity Generator Wastes
5. RCRA Regulation of Exports and Imports of Ignitable Spent
Refrigerants
6. Applicability of Proposed Alternative Standard in RCRA-
Authorized States
7. Effect on State Authorization
H. MVAC Servicing and Reprocessed Material
V. How is EPA proposing to treat data reported under this rule?
A. Background on Determinations of Whether Information Is
Entitled To Treatment as Confidential Information
1. Confidential Treatment of Reported Information
2. Emissions Data Under Section 114 of the Clean Air Act
B. Data Elements Reported to EPA Under the Leak Repair
Provisions
C. Data Elements Related to the Generation of Machine-Readable
Tracking Identifiers and the Tracking of HFCs
D. Data Elements Related to Fire Suppression
VI. What are the costs and benefits of this proposed action?
A. Background
B. Estimated Costs and Benefits of Leak Repair and ALD
Provisions

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C. Summary of Estimated Costs and Benefits of All Rule
Provisions
VII. How is EPA considering environmental justice?
VIII. Request for Advance Comment on Approaches for Establishing
Requirements for Technician Training
IX. Statutory and Executive Order Review
A. Executive Order 12866: Regulatory Planning and Review and
Executive Order 14094: Modernizing Regulatory Review
B. Paperwork Reduction Act (PRA)
C. Regulatory Flexibility Act (RFA)
D. Unfunded Mandates Reform Act (UMRA)
E. Executive Order 13132: Federalism
F. Executive Order 13175: Consultation and Coordination With
Indian Tribal Governments
G. Executive Order 13045: Protection of Children From
Environmental Health and Safety Risks
H. Executive Order 13211: Actions That Significantly Affect
Energy Supply, Distribution, or Use
I. National Technology Transfer and Advancement Act (NTTAA)
J. Executive Order 12898: Federal Actions To Address
Environmental Justice in Minority Populations and Low-Income
Populations and Executive Order 14096: Revitalizing our Nation's
Commitment to Environmental Justice for All

I. Executive Summary

A. What is the purpose of this proposed regulatory action?

The Environmental Protection Agency (EPA) is proposing regulations
that would implement certain provisions of the American Innovation and
Manufacturing Act of 2020, codified at 42 U.S.C. 7675 (AIM Act or the
Act). The AIM Act authorizes EPA to address hydrofluorocarbons (HFCs)
in three main ways: phasing down HFC production and consumption through
an allowance allocation program; facilitating the transition to next-
generation technologies by restricting use of these HFCs in the sector
or subsectors in which they are used; and promulgating certain
regulations for purposes of maximizing reclaiming and minimizing
releases of HFCs from equipment and ensuring the safety of technicians
and consumers. This proposal focuses on the third area--establishing
certain regulations for HFCs and their substitutes for the purposes of
maximizing reclaiming and minimizing releases of HFCs from equipment
and ensuring the safety of technicians and consumers.
More specifically, subsection (h) of the AIM Act, entitled
``Management of regulated substances,'' directs EPA to promulgate
regulations to control, where appropriate, any practice, process, or
activity regarding the servicing, repair, disposal, or installation of
equipment that involves: a regulated substance (used interchangeably
with ``HFCs'' in this proposed rulemaking), a substitute for a
regulated substance, the reclaiming of a regulated substance used as a
refrigerant, or the reclaiming of a substitute for a regulated
substance used as a refrigerant.
This proposed rulemaking addresses how EPA intends to start
implementing the provisions of subsection (h), including its authority
to issue regulations to control such practices, processes, and
activities, particularly as related to the management, use, and reuse
of HFCs and substitutes in equipment. Further, this action proposes
provisions to support implementation of, compliance with, and
enforcement of requirements under subsection (h) of the AIM Act.
Additionally, EPA is proposing alternative Resource Conservation and
Recovery Act (RCRA) standards for certain spent ignitable refrigerants
being recycled for reuse, as that term is proposed to be used under
RCRA.\1\ These proposed standards would involve regulatory changes to
40 CFR parts 261-271 and not be part of the regulations under
subsection (h)(1) of the AIM Act.
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\1\ The terms ``reclaim'' and ``recycle'' have different
regulatory purposes and definitions under RCRA than under the CAA
and the AIM Act. Under RCRA, a material is ``reclaimed'' if it is
processed to recover a usable product, or if it is regenerated.
Examples are recovery of lead values from spent batteries and
regeneration of spent solvents (See 40 CFR 261.1(c)(4)). Reclamation
is one of the four types of ``recycling'' identified in 40 CFR
261.2(c) that can involve management of a solid waste under RCRA.
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B. What is the summary of this proposed regulatory action?

This section of the preamble describes a summary of the proposed
provisions of this rulemaking, which are described in more detail in
the relevant sections of this proposal.
Management of regulated substances. EPA is proposing to establish a
program for the management of HFCs that includes requirements with
compliance dates ranging between 60 days after publication of the final
rule to January 1, 2028, for:
<bullet> Leak repair of appliances containing HFCs and/or certain
substitutes for HFCs (whether the appliance uses the HFC or substitute
for an HFC neat or in a blend with other substances). The leak repair
requirements would apply to appliances containing 15 pounds or more of
a refrigerant that contains an HFC or contains a substitute for an HFC
with a global warming potential (GWP) above 53 with specific
exceptions;
<bullet> Use of automatic leak detection (ALD) systems for certain
new and existing appliances containing 1,500 pounds or more of a
refrigerant that contains an HFC or a substitute for an HFC with a GWP
above 53;
<bullet> A proposed reclamation standard;
<bullet> The use of reclaimed HFCs in certain refrigeration, air
conditioning, and heat pump (RACHP) sectors or subsectors and
applications for the initial charge or installation of equipment and
servicing and/or repair of existing equipment and the use of recycled
HFCs in the initial charge or servicing and/or repair of fire
suppression equipment;
<bullet> The servicing, repair, disposal, or installation of fire
suppression equipment that contains HFCs, with the purpose of
minimizing the release of HFCs from that equipment, as well as
requirements related to technician training in the fire suppression
sector;
<bullet> Recovery of HFCs from disposable cylinders prior to
disposal;
<bullet> Container tracking for HFCs that could be used in the
servicing, repair, and/or installation of refrigerant-containing or
fire suppression equipment; and
<bullet> Recordkeeping, reporting, and labeling.
Amendments to Resource Conservation and Recovery Act (RCRA)
hazardous waste regulations. EPA is proposing alternative standards for
spent ignitable refrigerants when recycled for reuse, as that term is
proposed to be used under RCRA. EPA is proposing that the 40 CFR part
266 Subpart Q RCRA alternative standards would apply to HFCs and other
substitutes that do not belong to flammability Class 3 as classified by
the American Society of Heating, Refrigerating and Air-Conditioning
Engineers (ASHRAE) Standard 34-2022.\2\ EPA is proposing to limit the
alternative standards to lower flammability substitutes (Class 1, 2,
and

[[Page 72219]]

2L) because of the lower risk of fire from the collection and recycling
for reuse of these refrigerants, and the greater market value of these
refrigerants, which supports the conclusion that these spent
refrigerants will be recycled for reuse and not stockpiled, mismanaged,
or abandoned.
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\2\ ASHRAE Standard 34-2022 assigns a safety group
classification for each refrigerant which consists of two
alphanumeric characters (e.g., A2 or B1). The capital letter
indicates the toxicity class (``A'' for lower toxicity) and the
numeral denotes the flammability. ASHRAE recognizes three
classifications and one subclass for refrigerant flammability. The
three main flammability classifications are Class 1, for
refrigerants that do not propagate a flame when tested as per the
ASHRAE 34 standard, ``Designation and Safety Classification of
Refrigerants;'' Class 2, for refrigerants of lower flammability; and
Class 3, for highly flammable refrigerants, such as the hydrocarbon
refrigerants. ASHRAE recently updated the safety classification
matrix to include a new flammability subclass 2L, for flammability
Class 2 refrigerants that burn very slowly.
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Enforcement and compliance. To support compliance with the proposed
requirements, EPA is proposing labeling, reporting, and recordkeeping
requirements as described in this action. EPA is also requiring
reporting and recordkeeping for the reduction of HFC emissions for the
fire suppression sector. The Agency is proposing to use the same
reporting platform used in prior AIM Act rules and the Greenhouse Gas
Reporting Program (GHGRP).\3\
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\3\ The GHGRP requires reporting of greenhouse gas (GHG) data
and other relevant information from large GHG emission sources, fuel
and industrial gas suppliers, and carbon dioxide (CO<INF>2</INF>)
injection sites in the United States. The program generally requires
reporting when emissions from covered sources are greater than
25,000 metric tons of CO<INF>2</INF>e per year. Publicly available
information includes facility names, addresses, and latitude/
longitude information.
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Additionally, EPA requests advance comment on approaches for
establishing requirements for RACHP technician training and/or
certification. Specifically, EPA is seeking advance comment on whether,
through a separate rulemaking, EPA should propose to establish training
and/or service requirements for technicians under subsection (h), in
particular, for flammable refrigerants. And, if so, how such a training
program might be managed.
The Agency is not proposing any regulatory requirements under
subsection (h) for HFCs and substitutes for HFCs used in applications
besides RACHP and fire suppression sectors at this time. However, the
Agency will continue to monitor the use and emissions of HFCs more
generally and such information may inform future rulemakings under
subsection (h).

C. What is the summary of the costs and benefits?

EPA is providing information on the costs and benefits for the
provisions related to managing regulated substances and their
substitutes in this proposed rule. The analyses, presented in the
Analysis of the Economic Impact and Benefits of the Proposed Rule
technical support document (TSD) and in a regulatory impact analysis
(RIA) addendum to the Allocation Framework Rule RIA, are contained in
the docket to this proposed rule and are intended to provide the public
with information on the relevant costs and benefits of this action, if
finalized as proposed, and to comply with executive orders. EPA notes
that the costs and benefits associated with the management of regulated
substances and their substitutes under the AIM Act are described and
calculated separately from those associated with the proposed
amendments to the RCRA hazardous waste regulations. These analyses--as
summarized below--highlight economic cost and benefits, including
benefits from leak repair and emissions reductions.
Given that the provisions EPA is proposing concern HFCs, which are
subject to the phasedown of production and consumption under the AIM
Act, EPA relied on its previous estimates of the impacts of already
finalized AIM Act rules as a starting point for the assessment of costs
and benefits of this rule. Specifically, the Allocation Framework Rule,
``Phasedown of Hydrofluorocarbons: Establishing the Allowance
Allocation and Trading Program Under the American Innovation and
Manufacturing Act'' (86 FR 55116, October 5, 2021) and the 2024
Allocation Rule, ``Phasedown of Hydrofluorocarbons: Allowance
Allocation Methodology for 2024 and Later Years'' (88 FR 46836, July
20, 2023) \4\ are assumed as a baseline for this proposed rule. In this
way, EPA analyzed the potential incremental impacts of the proposed
rule, attributing benefits only insofar as they are additional to those
already assessed in the Allocation Framework Rule RIA and the 2024
Allocation Rule RIA addendum (collectively referred to as ``Allocation
Rules'' in this discussion). For example, a mitigation option in the
marginal abatement cost (MAC) analysis for the Allocation Rules assumed
a reduction in refrigerant leaks; all costs and benefits calculated for
this rule are for leak reductions over and above those assumed in the
previous analysis.
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\4\ EPA recently finalized two separate rulemakings to update
the regulations established in the HFC Allocation Framework Rule.
The first rule, ``Phasedown of Hydrofluorocarbons: Allowance
Allocation Methodology for 2024 and Later Years,'' established the
methodology for allocating HFC production and consumption allowances
starting with calendar year 2024 allowances and adjusted the
consumption baseline downward by less than 0.5% to reflect corrected
data, among other changes (88 FR 46836, July 20, 2023). The second,
``Phasedown of Hydrofluorocarbons: Adjustment to the
Hydrofluorocarbon Baseline,'' amended the production baseline
downward by 0.005% to reflect corrected data (88 FR 44220, July 12,
2023).
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As detailed in the RIA addendum, the number, charge sizes, leak
rates, and other characteristics of potentially affected RACHP
equipment were estimated using EPA's Vintaging Model.\5\ The leak
repair and ALD system provisions proposed are assumed to lead leaking
systems to be repaired earlier than they otherwise would have, leading
to reduced emissions of HFCs. Provisions requiring the use of reclaimed
refrigerant, requirements for the fire suppression sector, and
provisions related to the handling of disposable cylinders are further
estimated to result in incremental reductions in HFC emissions. These
reductions in HFC emissions result in climate benefits due to reduced
climate forcing as calculated by multiplying avoided emissions by the
social cost of each HFC (SC-HFCs).
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\5\ U.S. Environmental Protection Agency (EPA). 2023. EPA's
Vintaging Model representing the Allocation Framework Rule as
modified by the 2024 Allocation Rule RIA addendum. VM IO
file_v4.4_02.04.16_2024 Allocation Rule.
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In the years 2025-2050, the proposed rule provisions would prevent
an estimated 142 million metric tons of CO<INF>2</INF> equivalent
(MMTCO<INF>2</INF>e) in HFC emissions, and the present value of
economic benefit of avoiding the damages associated with those
emissions is estimated at $9.8 billion (in 2022 dollars, discounted to
2024 using a three percent discount rate). The annual benefits are
estimated to decrease over time due to the HFC phasedown and the
transition out of the higher-GWP HFCs, lowering the average GWP of
later emissions. For example, it is estimated that the leak repair and
ALD system provisions would prevent 3.8 MMTCO<INF>2</INF>e of HFC
emissions in 2030 and 2.8 MMTCO<INF>2</INF>e in the year 2040.
Reducing HFC emissions due to fixing leaks earlier would also be
anticipated to lead to savings for some system owner/operators, as less
new refrigerant would need to be purchased to replace leaked
refrigerant. In 2025, it is estimated that the proposed leak repair and
ALD provisions would lead to savings of $13 million (2022$). EPA
acknowledges that these savings would not completely offset leak repair
compliance costs and may not accrue uniformly to all regulated
entities, and EPA requests comment on this estimate. Further, while
these provisions have been estimated to result in savings, EPA
understands that entities that would be affected by these proposed
regulations might not perform the practices, processes, or activities
that would result in cost savings absent regulation. When entities are
reviewing their own economic analyses, some factors may be pertinent
that make new technologies or economically favorable best practices
less attractive than existing practices, or some market failure may
exist that acts as a barrier to businesses' adoption of

[[Page 72220]]

the most profitable course.\6\ For example, market failures may exist
where there are imperfect information or split incentives; such as
decision-makers not knowing the percentage of energy use associated
with refrigeration or the costs of replacing refrigerant lost from
leaking appliances.
---------------------------------------------------------------------------

\6\ Klemick, Heather & Kopits, Elizabeth & Wolverton, Ann.
``Potential Barriers to Improving Energy Efficiency in Commercial
Buildings: The Case of Supermarket Refrigeration.'' Journal of
Benefit-Cost Analysis. 8, 2017, pp. 1-31.
---------------------------------------------------------------------------

The compliance costs of the proposed rule include recordkeeping and
reporting costs, the costs of purchasing and operating ALD systems,
costs of required inspections, the cost of repairing leaks earlier than
would have been necessary without the proposed provisions, and the cost
of proposed disposable cylinder management requirements. In the years
2025-2050, these provisions would result in compliance costs (inclusive
of refrigerant savings) with a present value estimated at $3.7 billion
in 2022 dollars at a 3 percent discount rate or $2.4 billion at a 7
percent discount rate.
Taking into account both benefits and compliance costs over the
2025-2050 time period, it is estimated that the proposed rule would
result in present value net benefit (benefits minus compliance costs),
of $6.1 billion (with compliance costs discounted at three percent) to
$7.4 billion (with compliance costs discounted at seven percent).
As detailed in the draft RIA addendum, these values represent a
conservative estimate of potential incremental benefits and assume
potential HFC consumption- and emissions-reducing activities required
by some of the proposed rule's provisions could be offset to the extent
that available consumption and production allowances are shifted to
meet demand in subsectors not covered by the proposed rule. Given the
inherent uncertainty of future industry behavior, in the draft RIA
addendum EPA has also provided estimates under an additional scenario
in which these offsetting effects to not occur and additional
incremental benefits accrue.
Some of the information regarding projected impacts of certain
aspects of the proposal was considered by EPA as it developed this
proposed rule. To the extent that EPA has considered such information
it is compiled in the Analysis of the Economic Impact and Benefits of
the Proposed Rule draft TSD, which is in the docket for this
rulemaking.
Although EPA is using SC-HFCs for purposes of some of the analysis
in the RIA addendum, this proposed action does not rely on those
estimates of these costs as a record basis for the Agency action, and
EPA would reach the proposed conclusions even in the absence of the
social costs of HFCs. Additional information on these analyses can be
found in section VI. of this document, as well as the RIA addendum and
the Analysis of the Economic Impact and Benefits of the Proposed Rule
draft TSD, which is in the docket for this rulemaking.

II. General Information

A. Does this action apply to me?

You may be potentially affected by this rule if you own, operate,
service, repair, recycle, dispose, or install equipment containing HFCs
or their substitutes, as well as if you recover, recycle, or reclaim
HFCs or their substitutes. You may also be potentially affected if you
manufacture or sell equipment containing HFCs or their substitutes.
Potentially affected categories, by North American Industry
Classification System (NAICS) code, are included in Table 1.

Table 1--NAICS Classification of Potentially Affected Entities
------------------------------------------------------------------------
NAICS code NAICS industry description
------------------------------------------------------------------------
236118................... Residential Remodelers.
236220................... Commercial and Institutional Building
Construction.
238220................... Plumbing, Heating, and Air-Conditioning
Contractors.
238990................... All Other Specialty Trade Contractors.
311812................... Commercial Bakeries.
321999................... All Other Miscellaneous Wood Product
Manufacturing.
322299................... All Other Converted Paper Product
Manufacturing.
324191................... Petroleum Lubricating Oil and Grease
Manufacturing.
324199................... All Other Petroleum and Coal Products
Manufacturing.
325199................... All Other Basic Organic Chemical
Manufacturing.
325211................... Plastics Material and Resin Manufacturing.
325412................... Pharmaceutical Preparation Manufacturing.
325414................... Biological Product (except Diagnostic)
Manufacturing.
325998................... All Other Miscellaneous Chemical Product and
Preparation Manufacturing.
326299................... All Other Rubber Product Manufacturing.
327999................... All Other Miscellaneous Nonmetallic Mineral
Product Manufacturing.
332812................... Metal Coating, Engraving (except Jewelry and
Silverware), and Allied Services to
Manufacturers.
332999................... All Other Miscellaneous Fabricated Metal
Product Manufacturing.
333415................... Air-Conditioning and Warm Air Heating
Equipment and Commercial and Industrial
Refrigeration Equipment Manufacturing.
333511................... Industrial Mold Manufacturing.
333912................... Air and Gas Compressor Manufacturing.
333999................... All Other Miscellaneous General Purpose
Machinery Manufacturing.
334413................... Semiconductor and Related Device
Manufacturing.
334419................... Other Electronic Component Manufacturing.
334516................... Analytical Laboratory Instrument
Manufacturing.
335220................... Major Household Appliance Manufacturing.
336120................... Heavy Duty Truck Manufacturing.
336212................... Truck Trailer Manufacturing.
336214................... Travel Trailer and Camper Manufacturing.
3363..................... Motor Vehicle Parts Manufacturing.
3364..................... Aerospace Product and Parts Manufacturing.
336411................... Aircraft Manufacturing.
336611................... Ship Building and Repairing.

[[Page 72221]]

336612................... Boat Building.
339112................... Surgical and Medical Instrument
Manufacturing.
339113................... Surgical Appliance and Supplies
Manufacturing.
339999................... All Other Miscellaneous Manufacturing.
423120................... Motor Vehicle Supplies and New Parts Merchant
Wholesalers.
423450................... Medical, Dental, and Hospital Equipment and
Supplies Merchant Wholesalers.
423610................... Electrical Apparatus and Equipment, Wiring
Supplies, and Related Equipment Merchant
Wholesalers.
423620................... Household Appliances, Electric Housewares,
and Consumer Electronics Merchant
Wholesalers.
423690................... Other Electronic Parts and Equipment Merchant
Wholesalers.
423720................... Plumbing and Heating Equipment and Supplies
(Hydronics) Merchant Wholesalers.
423730................... Warm Air Heating and Air-Conditioning
Equipment and Supplies Merchant Wholesalers.
423740................... Refrigeration Equipment and Supplies Merchant
Wholesalers.
423830................... Industrial Machinery and Equipment Merchant
Wholesalers.
423840................... Industrial Supplies Merchant Wholesalers.
423850................... Service Establishment Equipment and Supplies
Merchant Wholesalers.
423860................... Transportation Equipment and Supplies (except
Motor Vehicle) Merchant Wholesalers.
423990................... Other Miscellaneous Durable Goods Merchant
Wholesalers.
424690................... Other Chemical and Allied Products Merchant
Wholesalers.
424820................... Wine and Distilled Alcoholic Beverage
Merchant Wholesalers.
441310................... Automotive Parts and Accessories Stores.
443141................... Household Appliance Stores.
444190................... Other Building Material Dealers.
445110................... Supermarkets and Other Grocery (except
Convenience) Stores.
445131................... Convenience Retailers.
445298................... All Other Specialty Food Retailers.
446191................... Food (Health) Supplement Stores.
449210................... Electronics and Appliance Retailers.
452311................... Warehouse Clubs and Supercenters.
453998................... All Other Miscellaneous Store Retailers
(except Tobacco Stores).
45711.................... Gasoline Stations With Convenience Stores.
481111................... Scheduled Passenger Air Transportation.
488510................... Freight Transportation Arrangement.
493110................... General Warehousing and Storage.
531120................... Lessors of Nonresidential Buildings (except
Mini warehouses).
541330................... Engineering Services.
541380................... Testing Laboratories.
541512................... Computer Systems Design Services.
541519................... Other Computer Related Services.
541620................... Environmental Consulting Services.
561210................... Facilities Support Services.
561910................... Packaging and Labeling Services.
561990................... All Other Support Services.
562111................... Solid Waste Collection.
562211................... Hazardous Waste Treatment and Disposal.
562920................... Materials Recovery Facilities.
621498................... All Other Outpatient Care Centers.
621999................... All Other Miscellaneous Ambulatory Health
Care Services.
72111.................... Hotels (Except Casino Hotels) and Motels.
72112.................... Casino Hotels.
72241.................... Drinking Places (Alcoholic Beverages).
722511................... Full-service Restaurants.
722513................... Limited-Service Restaurants.
722514................... Cafeterias, Grill Buffets, and Buffets.
722515................... Snack and Nonalcoholic Beverage Bars.
81119.................... Other Automotive Repair and Maintenance.
811219................... Other Electronic and Precision Equipment
Repair and Maintenance.
811412................... Appliance Repair and Maintenance.
922160................... Fire Protection.
------------------------------------------------------------------------

This table is not intended to be exhaustive, but rather provides a
guide for readers regarding entities likely to be regulated by this
action. This table lists the types of entities that EPA expects could
potentially be regulated by this action. Other types of entities not
listed in the table could also be regulated. To determine whether your
entity may be regulated by this action, you should carefully examine
the proposed regulatory text at the end of this document. If you have
questions regarding the applicability of this action to a particular
entity, consult the people listed in the FOR FURTHER INFORMATION
CONTACT section.

B. What is EPA's authority for taking this action?

On December 27, 2020, the AIM Act was enacted as section 103 in
Division S, Innovation for the Environment, of the Consolidated
Appropriations Act, 2021 (42 U.S.C. 7675). In subsection (k)(1)(A), the
AIM Act provides EPA with the authority to promulgate

[[Page 72222]]

necessary regulations to carry out EPA's functions under the Act,
including its obligations to ensure that the Act's requirements are
satisfied (42 U.S.C. 7675(k)(1)(A)). Subsection (k)(1)(C) of the Act
also provides that Clean Air Act (CAA) sections 113, 114, 304, and 307
apply to the AIM Act and any regulations EPA promulgates under the AIM
Act as though the AIM Act were part of CAA Title VI (42 U.S.C.
7675(k)(1)(C)). Accordingly, this rulemaking is subject to CAA section
307(d) (see 42 U.S.C. 7607(d)(1)(I)) (CAA section 307(d) applies to
``promulgation or revision of regulations under subchapter VI of this
chapter (relating to stratosphere and ozone protection)'').
The AIM Act authorizes EPA to address hydrofluorocarbons (HFCs) in
three main ways: phasing down HFC production and consumption through an
allowance allocation program; facilitating the transition to next-
generation technologies by restricting use of these HFCs in the sector
or subsectors in which they are used; and promulgating certain
regulations for purposes of maximizing reclaiming and minimizing
releases of HFCs from equipment and ensuring the safety of technicians
and consumers. This proposal focuses on the third area--establishing
certain regulations for HFCs and their substitutes for the purposes of
maximizing reclaiming \7\ and minimizing releases of HFCs from
equipment and ensuring the safety of technicians and consumers.
---------------------------------------------------------------------------

\7\ EPA views ``reclaim,'' ``reclaiming,'' and ``reclamation''
as interchangeable terms.
---------------------------------------------------------------------------

The identification of regulated substances is addressed under
subsection (c) of the Act. The Act lists 18 saturated HFCs, and by
reference any of their isomers not so listed, that are covered by the
statute's provisions, referred to as ``regulated substances'' \8\ under
the Act (42 U.S.C. 7675(c)(1)). Congress also assigned an ``exchange
value'' 9 10 to each regulated substance. EPA is also
authorized to designate additional substances that meet certain
criteria as regulated substances; for example, to be listed, the
substance must be a saturated HFC that has an exchange value greater
than 53 (which is also the lowest exchange value for a regulated
substance listed in subsection (c)(1) of the Act) (42 U.S.C.
7675(c)(3)).
---------------------------------------------------------------------------

\8\ As noted previously in this action, ``regulated substance''
and ``HFC'' are used interchangeably in this action.
\9\ EPA has determined that the exchange values included in
subsection (c) of the AIM Act are identical to the global warming
potentials (GWPs) included in the Intergovernmental Panel on Climate
Change (IPCC) (2007). EPA uses the terms ``global warming
potential'' and ``exchange value'' interchangeably in this proposal.
\10\ IPCC (2007): Solomon, S., D. Qin, M. Manning, R.B. Alley,
T. Berntsen, N.L. Bindoff, Z. Chen, A. Chidthaisong, J.M. Gregory,
G.C. Hegerl, M. Heimann, B. Hewitson, B.J. Hoskins, F. Joos, J.
Jouzel, V. Kattsov, U. Lohmann, T. Matsuno, M. Molina, N. Nicholls,
J. Overpeck, G. Raga, V. Ramaswamy, J. Ren, M. Rusticucci, R.
Somerville, T.F. Stocker, P. Whetton, R.A. Wood and D. Wratt, 2007:
Technical Summary. In: Climate Change 2007: The Physical Science
Basis. Contribution of Working Group I to the Fourth Assessment
Report of the Intergovernmental Panel on Climate Change [Solomon,
S., D. Qin, M. Manning, Z. Chen, M. Marquis, K.B. Averyt, M. Tignor
and H.L. Miller (eds.)]. Cambridge University Press, Cambridge,
United Kingdom and New York, NY, USA <a href="https://www.ipcc.ch/report/ar4/wg1">https://www.ipcc.ch/report/ar4/wg1</a>.
---------------------------------------------------------------------------

The regulated substances addressed in this proposal may be used
neat (i.e., as a single component substance) or in a blend with other
substances, which may include other regulated substances and/or
substitutes for regulated substances. The requirements proposed in this
rulemaking for regulated substances would apply regardless of whether
the regulated substance is used neat or in blend. In taking this
approach, EPA is not proposing that a blend that uses one or more
regulated substances is itself a regulated substance. Rather, the
Agency is proposing to regulate the regulated substance(s) used within
a ``blend of substances'' (42 U.S.C. 7675(c)(3)(B)(ii)), such that the
proposed requirements would also affect equipment that uses regulated
substances in blends. This is consistent with approaches that the
Agency has taken under the Allocation Framework Rule (86 FR 55133,
55142, October 5, 2021) and proposed for the Technology Transitions
Rule (87 FR 76744, 76753, December 15, 2022).\11\ Furthermore,
subsection (h)(1) requires EPA to promulgate regulations addressing
certain practices, processes, or activities involving, among other
things, a regulated substance or a substitute for a regulated substance
(see 42 U.S.C. 7675(h)(1)(A)-(B)). Consistent with those provisions,
regulatory requirements under subsection (h) may also apply with
respect to substitutes for regulated substances, regardless of whether
the substitute is used neat or in a blend. In taking this approach for
substitutes for a regulated substance, EPA is not proposing that a
blend that uses one or more such substitutes that are so regulated
would be designated a regulated substance under subsection (c) of the
Act, nor that the substitute would be so designated. Rather, such
substitutes would simply be addressed, as appropriate, under the
regulations implementing subsection (h).
---------------------------------------------------------------------------

\11\ In affirming this aspect of the HFC Allocation Framework
Rule, the D.C. Circuit held that ``EPA has statutory authority to
regulate HFCs within blends . . . because an HFC within a blend
remains a regulated HFC under the Act.'' Heating, Air Conditioning &
Refrigeration Distributors Int'l v. EPA, 71 F.4th 59, 64 (D.C. Cir.
2023).
---------------------------------------------------------------------------

Subsection (h) of the AIM Act is entitled ``Management of regulated
substances.'' For purposes of maximizing reclaiming and minimizing
releases of HFCs from equipment and ensuring the safety of technicians
and consumers, subsection (h)(1) directs EPA to promulgate regulations
to control, where appropriate, any practice, process, or activity
regarding the servicing, repair, disposal, or installation of equipment
that involves: a regulated substance, a substitute for a regulated
substance, the reclaiming of a regulated substance used as a
refrigerant, or the reclaiming of a substitute for a regulated
substance used as a refrigerant (42 U.S.C. 7675(h)(1)). Subsection
(h)(1) further provides that this includes requiring, where
appropriate, that any such servicing, repair, disposal, or installation
be performed by a trained technician meeting minimum standards, as
determined by EPA.
Under subsection (h)(2)(A) of the AIM Act, the Agency ``shall
consider the use of authority available . . . under this section to
increase opportunities for the reclaiming of regulated substances used
as refrigerants.'' Subsection (h)(2)(B) of the Act further provides
that a ``regulated substance used as a refrigerant that is recovered
shall be reclaimed before the regulated substance is sold or
transferred to a new owner, except where the recovered regulated
substance is sold or transferred to a new owner solely for the purposes
of being reclaimed or destroyed.''
Further, subsection (h)(3) provides that in promulgating
regulations to carry out subsection (h), EPA may coordinate those
regulations with ``any other regulations promulgated by the [EPA] that
involve--(A) the same or a similar practice, process, or activity
regarding the servicing, repair, disposal, or installation of
equipment; or (B) reclaiming.'' EPA interprets this provision of the
AIM Act as leaving the Agency discretion as to whether or not to
coordinate regulations under subsection (h) with other EPA regulations,
as well as with discretion to consider the particular circumstances in
which it is appropriate to undertake such coordination. Congress did
not define the term ``coordinate'' in the AIM Act. EPA interprets the
term, as used in this context, as encompassing a variety of forms of
coordination that could potentially be used for the specified types of
regulatory provisions, and interprets (h)(3) as conveying discretion

[[Page 72223]]

to EPA to select the form or forms of coordination that are appropriate
for the particular circumstances and regulatory provisions under
consideration in a given action.
In this proposal, EPA describes where and whether we are
coordinating with regulations that involve the same or similar
practices, processes, or activities regarding the servicing, repair,
disposal, or installation of equipment or reclaiming, and our rationale
on the appropriateness of coordinating with these regulations. For
example, coordination could include establishing parallel requirements
under subsection (h) as in another regulatory regime so that a similar
practice, process, or activity in similar equipment is held to similar
standards, where appropriate. It could also include deciding not to
establish requirements under subsection (h) in certain situations, such
as when an existing requirement already applies to a similar practice,
process, or activity under another set of regulations that EPA views as
adequate to also address the purposes of subsection (h). Coordination
could also mean coordinating rulemaking schedules or timing for certain
requirements under subsection (h) that cover a similar practice,
process, or activity as covered in a previous regulation and would meet
the purposes of subsection (h). Finally, coordination may also mean
coordinating the requirements under subsection (h) with revisions to
regulations under other statutory authorities that address related
practices, processes, or activities, with the goal of developing
independent regulatory regimes that operate well together to achieve
their stated goals.
Subsection (h)(4) expressly states that any rulemaking under
subsection (h) shall not apply to a regulated substance or a substitute
for a regulated substance that is contained in a foam. Thus, the
requirements proposed in this rulemaking would not apply to regulated
substances or substitutes for regulated substances when those
substances are contained in foams.
Finally, subsection (h)(5) provides that, subject to availability
of appropriations, EPA shall establish a grant program to award small
business grants for the purchase of new specialized equipment for the
recycling, recovery, or reclamation of a substitute for a regulated
substance, including the purchase of approved refrigerant recycling
equipment for recycling, recovery, or reclamation in the service or
repair of a motor vehicle air conditioner (MVAC) systems. Funds have
not been appropriated for this grant program. The establishment of this
program is outside the scope of this rulemaking and EPA intends to
address it in a future action.
Through this rulemaking, EPA is proposing to establish an HFC
management program that includes requirements for:
<bullet> Leak repair for certain equipment that contain HFC
refrigerants or their substitutes, as applicable,
<bullet> ALD systems,
<bullet> Use of reclaimed HFCs in certain RACHP subsectors,
<bullet> The fire suppression sector,
<bullet> Recovery of HFCs from cylinders, and
<bullet> Container tracking.
Under subsection (h)(1), EPA is directed to promulgate certain
regulations for ``purposes of maximizing the reclaiming and minimizing
the release of a regulated substance from equipment and ensuring the
safety of technicians and consumers.'' Subsection (h) further specifies
that those regulations are to control, where appropriate, any practice,
process, or activity regarding the servicing, repair, disposal, or
installation of equipment that involves: a regulated substance, a
substitute for a regulated substance, the reclaiming of a regulated
substance used as a refrigerant, or the reclaiming of a substitute for
a regulated substance used as a refrigerant. Together, the proposed
provisions as outlined above in this section and explained in greater
detail in the relevant sections of this NPRM are aimed at achieving
those three purposes described in subsection (h)(1) (i.e., (1)
maximizing the reclaiming, (2) minimizing the release of a regulated
substance from equipment, and (3) ensuring the safety of technicians
and consumers), while also being consistent with the scope of
regulatory authority under that provision. As EPA interprets the
statutory text, the suite of regulations established under subsection
(h)(1) of the Act, taken together, would be focused on serving these
purposes, though the individual regulatory provisions under subsection
(h)(1) need not each connect to all three purposes. This interpretation
is integral to establishing an effective regulatory program, as some
regulatory provisions that might be considered under (h)(1) may be
highly efficacious at addressing one of the regulatory purposes but not
address the other two, or alternatively, may be important to support
the functioning of the regulatory program as a whole, but not be
focused on any of the specific purposes. Accordingly, this
understanding of the statutory text will support EPA's ability to
develop regulations that work together to help achieve the statutory
purposes.
Together the provisions proposed in this action would serve the
purposes described in (h)(1), with certain provisions more geared
towards one or two of the purposes identified in subsection (h)(1). For
example, the provisions related to leak repair as proposed in this
action are directed at the purpose of minimizing the release of a
regulated substance, but also help serve the purpose of maximizing the
reclaiming of a regulated substance. Those proposed provisions would
set requirements for when and how equipment must be serviced and leaks
in equipment must be repaired. Taking these actions would minimize the
release of regulated substances through such leaks, as the sooner a
leak is found and repaired, the less HFC will be released from that
leak. Further, by limiting the amount of regulated substances released
from leaks in equipment, the opportunity to recover and subsequently
reclaim these regulated substances increases. Thus, the proposed
provisions related to leak repair also help serve the purpose of
maximizing the reclaiming of regulated substances.
Another example is the proposed provisions for the use of ALD
systems which would help address the purposes articulated in subsection
(h)(1) similarly. In general, ALD systems would alert an owner or
operator of leaks in equipment sooner than discovering a leak due to
decreased performance by the equipment. Identifying and repairing leaks
sooner as a result of detecting the leak with an ALD system would
further limit the amount of regulated substance released from the leak
and maintain more of the regulated substance within the equipment,
where it would be available for eventual recovery and reclamation.
In addition to proposing requirements for the management of HFCs
and substitutes, this proposal includes provisions designed to support
enforcement and compliance, including recordkeeping and reporting. As
noted earlier in this section, subsection (k)(1)(C) of the AIM Act
states that CAA section 114 applies to the AIM Act and rules
promulgated under it as if the AIM Act were included in CAA Title VI.
Thus, CAA section 114, which provides authority to the EPA
Administrator to require recordkeeping and reporting in carrying out
provisions of the CAA, also applies to and supports this rulemaking.
These provisions may be examples of provisions that are integral to
establishing an effective regulatory program, and thus are important to
the overall efficacy of the HFC management program at achieving the
purposes

[[Page 72224]]

articulated in subsection (h)(1), even if they may be less directly
connected to those purposes if viewed in isolation.
In this action, we are also proposing alternative RCRA standards
for spent ignitable refrigerants being recycled for reuse. These
proposed standards would not be part of the regulations under
subsection (h)(1) of the AIM Act. Rather, this would involve regulatory
changes to 40 CFR parts 261-271, and those changes are proposed under
the authority of sections 2002, 3001, 3002, 3003, 3004, 3006, and 3010
of the Solid Waste Disposal Act of 1965, as amended by the Resource
Conservation and Recovery Act of 1976 (RCRA), as amended by the
Hazardous and Solid Waste Amendments of 1984 (HSWA). This statute is
commonly referred to as ``RCRA.''

III. Background

A. What are HFCs?

HFCs are anthropogenic \12\ fluorinated chemicals that have no
known natural sources. HFCs are used in a variety of applications such
as refrigeration and air conditioning, foam blowing agents, solvents,
aerosols, and fire suppression. HFCs are potent greenhouse gases (GHGs)
with 100-year GWPs (a measure of the relative climatic impact of a GHG)
that can be hundreds to thousands of times more potent than
CO<INF>2</INF>.
---------------------------------------------------------------------------

\12\ While the overwhelming majority of HFC production is
intentional, EPA is aware that HFC-23 can be a byproduct associated
with the production of other chemicals, including but not limited to
hydrochlorofluorocarbon (HCFC)-22.
---------------------------------------------------------------------------

HFC use and emissions \13\ have been growing worldwide due to the
global phaseout of ozone-depleting substances (ODS) under the Montreal
Protocol on Substances that Deplete the Ozone Layer (Montreal Protocol)
and the increasing use of refrigeration and air-conditioning equipment
globally. HFC emissions had previously been projected to increase
substantially over the next several decades. In 2016, in Kigali,
Rwanda, countries agreed to adopt an amendment to the Montreal
Protocol, known as the Kigali Amendment, which provides for a global
phasedown of the production and consumption of HFCs. The United States
ratified the Kigali Amendment on October 31, 2022. Global adherence to
the Kigali Amendment would substantially reduce future emissions,
leading to a peaking of HFC emissions before 2040.14 15
---------------------------------------------------------------------------

\13\ World Meteorological Organization (WMO), Scientific
Assessment of Ozone Depletion: 2022, GAW Report No. 278, 509 pp.,
WMO, Geneva, Switzerland, 2022. Available at: <a href="https://ozone.unep.org/system/files/documents/Scientific-Assessment-of-Ozone-Depletion-2022.pdf">https://ozone.unep.org/system/files/documents/Scientific-Assessment-of-Ozone-Depletion-2022.pdf</a>.
\14\ Ibid.
\15\ A recent study estimated that global compliance with the
Kigali Amendment is expected to lower 2050 annual emissions by 3.0-
4.4 Million Metric Tons of Carbon Dioxide Equivalent
(MMTCO<INF>2</INF>e). Guus J.M. Velders et al. Projections of
hydrofluorocarbon (HFC) emissions and the resulting global warming
based on recent trends in observed abundances and current policies.
Atmos. Chem. Phys., 22, 6087-6101, 2022. Available at: <a href="https://doi.org/10.5194/acp-22-6087-2022">https://doi.org/10.5194/acp-22-6087-2022</a>.
---------------------------------------------------------------------------

Atmospheric observations of most currently measured HFCs confirm
their abundances are increasing at accelerating rates. Total emissions
of HFCs increased by 19 percent from 2016 to 2020 and the four most
abundant HFCs in the atmosphere, in GWP-weighted terms, are HFC-134a,
HFC-125, HFC-23, and HFC-143a.\16\
---------------------------------------------------------------------------

\16\ WMO, 2022.
---------------------------------------------------------------------------

In 2020, HFCs excluding HFC-23 accounted for a radiative forcing
\17\ of 0.037 W/m\2\. This is an increase of nearly a third in total
HFC forcing relative to 2016. This radiative forcing was projected to
increase by an order of magnitude to 0.25 W/m\2\ by 2050.\18\ Full
implementation of the Kigali Amendment is expected to reduce the future
radiative forcing due to HFCs (excluding HFC-23) to 0.13 W/m\2\ in
2050, which is a reduction of about 50 percent compared with the
radiative forcing projected in the business-as-usual scenario of
uncontrolled HFCs.\19\
---------------------------------------------------------------------------

\17\ Radiative forcing is expressed in units of watts per square
meter (W/m\2\) and is defined by the IPCC as ``a measure of the
influence a factor has in altering the balance of incoming and
outgoing energy in the Earth-atmosphere system and is an index of
the importance of the factor as a potential climate change
mechanism.'' IPCC, 2007: Climate Change 2007: Synthesis Report.
Contribution of Working Groups I, II and III to the Fourth
Assessment Report of the Intergovernmental Panel on Climate Change
[Core Writing Team, Pachauri, R.K and Reisinger, A. (eds.)]. IPCC,
Geneva, Switzerland, 104 pp. <a href="https://www.ipcc.ch/report/ar4/syr/">https://www.ipcc.ch/report/ar4/syr/</a>.
\18\ Guus J.M. Velders, David W. Fahey, John S. Daniel, Stephen
O. Andersen, Mack McFarland, Future atmospheric abundances and
climate forcings from scenarios of global and regional
hydrofluorocarbon (HFCs) emissions, Atmospheric Environment,
doi:10.1016/j.atmosenv.2015.10.071, 2015.
\19\ Ibid.
---------------------------------------------------------------------------

There are hundreds of possible HFC compounds. The 18 HFCs listed as
regulated substances by the AIM Act are some of the most commonly used
HFCs (neat and in blends) and have high impacts as measured by the
quantity of each substance emitted multiplied by their respective GWPs.
These 18 HFCs are all saturated, meaning they have only single bonds
between their atoms and therefore have longer atmospheric lifetimes.
In the United States, HFCs are used primarily in refrigeration and
air-conditioning equipment in homes, commercial buildings, and
industrial operations (approximately 75 percent of total HFC use in
2018) and in air conditioning in vehicles and refrigerated transport
(approximately 8 percent). Smaller amounts are used in foam products
(approximately 11 percent), aerosols (approximately 4 percent), fire
protection systems (approximately 1 percent), and solvents
(approximately 1 percent).\20\
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\20\ Calculations based on EPA's Vintaging Model, which
estimates the annual chemical emissions from industry sectors that
historically used ODS, including refrigeration and air conditioning,
foam blowing agents, solvents, aerosols, and fire suppression. The
model uses information on the market size and growth for each end
use, as well as a history and projections of the market transition
from ODS to substitutes. The model tracks emissions of annual
``vintages'' of new equipment that enter into operation by
incorporating information on estimates of the quantity of equipment
or products sold, serviced, and retired or converted each year, and
the quantity of the compound required to manufacture, charge, and/or
maintain the equipment. Additional information on these estimates is
available in U.S. EPA, April 2016. EPA Report EPA-430-R-16-002.
Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2014.
Available at: <a href="https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks-1990-2014">https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks-1990-2014</a>.
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EPA estimated in its final rule, Allocation Framework Rule (86 FR
55116, October 5, 2021) as updated under the final rule, Allowance
Allocation Methodology for 2024 and Later Years (``2024 Allocation
Rule'') (88 FR 46836; July 20, 2023), that phasing down HFC production
and consumption according to the schedule provided in the AIM Act will
avoid cumulative consumption of 3,156 million metric tons of exchange
value equivalent (MMTEVe) of HFCs in the United States for the years
2022 through 2036. That estimate included both consumption as defined
in 40 CFR 84.3--i.e., with respect to a regulated substance, bulk
production plus bulk imports minus bulk exports--and, although not
requiring AIM Act allowances, the amount in imported products
containing a regulated substance, less the amount in exported products
containing a regulated substance. Annual avoided consumption was
estimated at 42 MMTCO<INF>2</INF>e in 2022 and 282 MMTCO<INF>2</INF>e
in 2036. In order to calculate the climate benefits associated with
consumption abatement, the consumption changes were expressed in terms
of emissions reductions. EPA estimated that for the years 2022-2050,
the HFC phasedown will avoid emissions of 4,560 MMTCO<INF>2</INF>e of
HFCs in the United States. The annual avoided emissions are estimated
at 22 MMTCO<INF>2</INF>e in the year 2022 and 171 MMTCO<INF>2</INF>e in
2036. More information

[[Page 72225]]

regarding these estimates is provided in the Allocation Framework Rule
RIA and the RIA addendum for the 2024 Allocation Rule, which can be
found in the docket for this proposal.

B. How do HFCs affect public health and welfare?

Elevated concentrations of GHGs including HFCs are and have been
warming the planet, leading to changes in the Earth's climate including
changes in the frequency and intensity of heat waves, precipitation,
and extreme weather events; rising seas; and retreating snow and ice.
The changes taking place in the atmosphere as a result of the well-
documented buildup of GHGs due to human activities are changing the
climate at a pace and scale that threatens human health, society, and
the natural environment. In this section, EPA is providing some
scientific background on climate change to offer additional context for
this rulemaking and to help the public understand the environmental
impacts of GHGs such as HFCs.
Extensive additional information on climate change is available in
the scientific assessments and the EPA documents that are briefly
described in this section, as well as in the technical and scientific
information supporting them.
One of those documents is EPA's 2009 Endangerment and Cause or
Contribute Findings for Greenhouse Gases Under section 202(a) of the
CAA (74 FR 66496, December 15, 2009).\21\ In the 2009 Endangerment
Finding, the Administrator found under CAA section 202(a) that elevated
atmospheric concentrations of six key well-mixed GHGs--CO<INF>2</INF>,
methane (CH<INF>4</INF>), nitrous oxide (N<INF>2</INF>O), HFCs,
perfluorocarbons (PFCs), and sulfur hexafluoride (SF<INF>6</INF>)--
``may reasonably be anticipated to endanger the public health and
welfare of current and future generations'' (74 FR 66523, December 15,
2009), and the science and observed changes have confirmed and
strengthened the understanding and concerns regarding the climate risks
considered in the Finding. The 2009 Endangerment Finding, together with
the extensive scientific and technical evidence in the supporting
record, documented that climate change caused by human emissions of
GHGs (including HFCs) threatens the public health of the population of
the United States. It explained that by raising average temperatures,
climate change increases the likelihood of heat waves, which are
associated with increased deaths and illnesses (74 FR 66497, December
15, 2009). While climate change also likely reduces cold-related
mortality, evidence indicates that the increases in heat mortality will
be larger than the decreases in cold mortality in the United States (74
FR 66525, December 15, 2009). The 2009 Endangerment Finding further
explained that, compared with a future without climate change, climate
change is expected to increase tropospheric ozone pollution over broad
areas of the United States, including in the largest metropolitan areas
with the worst tropospheric ozone problems, and thereby increase the
risk of adverse effects on public health (74 FR 66525, December 15,
2009). Climate change is also expected to cause more intense hurricanes
and more frequent and intense storms of other types and heavy
precipitation, with impacts on other areas of public health, such as
the potential for increased deaths, injuries, infectious and waterborne
diseases, and stress-related disorders (74 FR 66525, December 15,
2009). Climate change is also expected to cause more intense hurricanes
and more frequent and intense storms of other types and heavy
precipitation, with impacts on other areas of public health, such as
the potential for increased deaths, injuries, infectious and waterborne
diseases, and stress-related disorders (74 FR 66525, December 15,
2009). Children, the elderly, and the poor are among the most
vulnerable to these climate-related health effects (74 FR 66498,
December 15, 2009).
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\21\ In describing these 2009 Findings in this proposal, EPA is
neither reopening nor revisiting them.
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The 2009 Endangerment Finding also documented, together with the
extensive scientific and technical evidence in the supporting record,
that climate change touches nearly every aspect of public welfare \22\
in the United States, including: changes in water supply and quality
due to increased frequency of drought and extreme rainfall events;
increased risk of storm surge and flooding in coastal areas and land
loss due to inundation; increases in peak electricity demand and risks
to electricity infrastructure; predominantly negative consequences for
biodiversity and the provisioning of ecosystem goods and services; and
the potential for significant agricultural disruptions and crop
failures (though offset to some extent by carbon fertilization). These
impacts are also global and may exacerbate problems outside the United
States that raise humanitarian, trade, and national security issues for
the United States (74 FR 66530, December 15, 2009).
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\22\ The CAA states in section 302(h) that ``[a]ll language
referring to effects on welfare includes, but is not limited to,
effects on soils, water, crops, vegetation, manmade materials,
animals, wildlife, weather, visibility, and climate, damage to and
deterioration of property, and hazards to transportation, as well as
effects on economic values and on personal comfort and well-being,
whether caused by transformation, conversion, or combination with
other air pollutants.'' 42 U.S.C. 7602(h).
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In 2016, the Administrator similarly issued Endangerment and Cause
or Contribute Findings for GHG emissions from aircraft under CAA
section 231(a)(2)(A)(81 FR 54422, August 15, 2016).\23\ In the 2016
Endangerment Finding, the Administrator found that the body of
scientific evidence amassed in the record for the 2009 Endangerment
Finding compellingly supported a similar endangerment finding under CAA
section 231(a)(2)(A) and also found that the science assessments
released between the 2009 and the 2016 Findings ``strengthen and
further support the judgment that GHGs in the atmosphere may reasonably
be anticipated to endanger the public health and welfare of current and
future generations'' (81 FR 54424, August 15, 2016).
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\23\ In describing these 2016 Findings in this proposal, EPA is
neither reopening nor revisiting them.
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Since the 2016 Endangerment Finding, the climate has continued to
change, with new records being set for several climate indicators such
as global average surface temperatures, GHG concentrations, and sea
level rise. Moreover, heavy precipitation events have increased in the
Eastern U.S. while agricultural and ecological drought has increased in
the Western U.S. along with more intense and larger wildfires.\24\
These and other trends are examples of the risks discussed in the 2009
and 2016 Endangerment Findings that have already been experienced.
Additionally, major scientific assessments continue to demonstrate
advances in our understanding of the climate system and the impacts
that GHGs have on public health and welfare both for current and future
generations. According to the Intergovernmental Panel on Climate
Change's (IPCC) Sixth Assessment Report, ``it is unequivocal that human
influence has warmed the atmosphere, ocean and land. Widespread and
rapid changes in the atmosphere, ocean, cryosphere and biosphere have
occurred.'' \25\ These

[[Page 72226]]

updated observations and projections document the rapid rate of current
and future climate change both globally and in the United
States.26 27 28 29.
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\24\ An additional resource for indicators can be found at
<a href="https://www.epa.gov/climate-indicators">https://www.epa.gov/climate-indicators</a>.
\25\ IPCC, 2021: Summary for Policymakers. In: Climate Change
2021: The Physical Science Basis. Contribution of Working Group I to
the Sixth Assessment Report of the Intergovernmental Panel on
Climate Change [Masson-Delmotte, V., P. Zhai, A. Pirani, S.L.
Connors, C. Pe[acute]an, S. Berger, N. Caud, Y. Chen, L. Goldfarb,
M.I. Gomis, M. Huang, K. Leitzell, E. Lonnoy, J.B.R. Matthews, T.K.
Maycock, T. Waterfield, O. Yelek[ccedil]i, R. Yu and B. Zhou
(eds.)]. Cambridge University Press. In Press: 4.
\26\ USGCRP, 2018: Impacts, Risks, and Adaptation in the United
States: Fourth National Climate Assessment, Volume II [Reidmiller,
D.R., C.W. Avery, D.R. Easterling, K.E. Kunkel, K.L.M. Lewis, T.K.
Maycock, and B.C. Stewart (eds.)]. U.S. Global Change Research
Program, Washington, DC, USA, 1515 pp. doi: 10.7930/NCA4.2018.
Available at: <a href="https://nca2018.globalchange.gov">https://nca2018.globalchange.gov</a>.
\27\ IPCC, 2021.
\28\ National Academies of Sciences, Engineering, and Medicine,
2019. Climate Change and Ecosystems. Washington, DC: The National
Academies Press. Available at: <a href="https://doi.org/10.17226/25504">https://doi.org/10.17226/25504</a>.
\29\ NOAA National Centers for Environmental Information,
Monthly Global Climate Report for Annual 2022, published online
January 2023, retrieved on March 1, 2023 from <a href="https://www.ncei.noaa.gov/access/monitoring/monthly-report/global/202213">https://www.ncei.noaa.gov/access/monitoring/monthly-report/global/202213</a>.
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C. What refrigerant management programs has EPA already established
under the Clean Air Act?

EPA is developing regulations that are designed to establish a
comprehensive HFC management program that maximizes the reclaiming and
minimizes the release of HFCs while coordinating these efforts with
other similar programs. EPA has an extensive history under CAA Title VI
regulating the sectors in which HFCs and substitutes are typically
used, including where they are used as refrigerants and for other
purposes. For example, EPA has regulated stationary refrigeration
applications under CAA section 608, MVACs under CAA section 609, and
has evaluated alternative substances for refrigeration, air
conditioning, and other uses under the Significant New Alternatives
Policy (SNAP) program under CAA section 612.
1. National Recycling and Emission Reduction Program (CAA Section 608)
CAA section 608, titled ``National Recycling and Emission Reduction
Program,'' has three main components. First, section 608(a) requires
EPA to establish standards and requirements regarding the use and
disposal of class I and class II substances.\30\ The second component,
section 608(b), requires that the regulations issued pursuant to
subsection (a) contain requirements for the safe disposal of class I
and class II substances. The third component, section 608(c), prohibits
the knowing venting, release, or disposal of ODS refrigerants \31\ and
their substitutes \32\ in the course of maintaining, servicing,
repairing, or disposing of appliances or industrial process
refrigeration (IPR). EPA refers to this third component as the
``venting prohibition.'' Section 608(c)(1) establishes the venting
prohibition for ODS refrigerants effective July 1, 1992, and it
includes an exemption from this prohibition for ``[d]e minimis releases
associated with good faith attempts to recapture and recycle or safely
dispose'' any such substance. Section 608(c)(2) extends 608(c)(1) to
substitute refrigerants, effective November 15, 1995. Section 608(c)(2)
also includes a provision that allows the Administrator to exempt a
substitute refrigerant from the venting prohibition if he or she
determines that such venting, release, or disposal of a substitute
refrigerant ``does not pose a threat to the environment.''
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\30\ A class I or class II substance is an ozone-depleting
substance (ODS) listed at 40 CFR part 82, subpart A, appendix A or
appendix B, respectively. This document refers to class I and class
II substances collectively as ozone-depleting substances, or ODS.
\31\ The term ``ODS refrigerant'' as used in this document
refers to any refrigerant or refrigerant blend in which one or more
of the components is a class I or class II substance.
\32\ The term ``substitute'' for the purposes of the regulations
under section 608 of the CAA is defined at 40 CFR 82.152.
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EPA first issued regulations under CAA section 608 on May 14, 1993
(58 FR 28660, ``1993 Rule''), to establish the national refrigerant
management program for ODS refrigerants recovered during the service,
repair, or disposal of air conditioning and refrigeration appliances.
Since then, EPA has revised these regulations, which are found at 40
CFR part 82, subpart F (``subpart F''), through subsequent rulemakings
published between 1994 and 2020. Regulations issued under CAA section
608 include, among other things, the venting prohibition and sales
restrictions for refrigerants (40 CFR 82.154); safe disposal of
appliances (40 CFR 82.155); proper practices for the evacuation of
refrigerant from appliances (40 CFR 82.156); required practices for
appliance maintenance and leak repair (40 CFR 82.157); standards for
recovery and/or recycling equipment (40 CFR 82.158); technician and
reclaimer certification requirements (40 CFR 82.161 and 82.164,
respectively); and reporting and recordkeeping requirements (40 CFR
82.166). Appendices A-E at 40 CFR part 82, subpart F provide, among
other things, specifications for refrigerants, performance standards
for refrigerant recovery, recycling, and/or reclaiming equipment, and
standards for becoming a certifying program for technicians.
As it pertains to regulations under section 608 of the CAA, EPA is
using the term ``non-exempt substitute'' in this document to refer to
substitute refrigerants that have not been exempted from the venting
prohibition under CAA section 608(c)(2) and Sec. 82.154(a) in the
relevant end-use. Similarly, the term ``exempt substitute'' refers to a
substitute refrigerant that has been exempted from the venting
prohibition under section 608(c)(2) and Sec. 82.154(a) in the relevant
end-use. A few exempt substitutes have been exempted from the venting
prohibition in all applications. Notably, in 2016, EPA published a rule
(81 FR 82272, November 18, 2016) updating existing refrigerant
management requirements and extending the full set of the subpart F
refrigerant management requirements, which prior to that rule applied
only to ODS refrigerants,\33\ to non-exempt substitute refrigerants,
such as HFCs and hydrofluoroolefins (HFOs). Among the subpart F
requirements extended to non-exempt substitute refrigerants in the 2016
CAA section 608 Rule were provisions that restrict the servicing of
appliances and the sale of refrigerant to certified technicians,
specify the proper evacuation levels before opening an appliance,
require the use of certified refrigerant recovery and/or recycling
equipment, require that refrigerant be recovered from appliances prior
to disposal, require that appliances have a servicing aperture or
process stub to facilitate refrigerant recovery, require that
refrigerant reclaimers be certified to reclaim and sell used
refrigerant, and establish standards for technician certification
programs, recovery equipment, and established technical standards for
the purity of reclaimed refrigerant. The 2016 CAA section 608 Rule also
extended the appliance maintenance and leak repair provisions,
currently codified at 40 CFR 82.157, to appliances that contain 50 or
more pounds of non-exempt substitute refrigerant. The 2016 CAA section
608 Rule additionally made numerous revisions to improve the efficacy
of the refrigerant management program as a whole, such as revisions of
regulatory provisions for increased clarity and readability, and
removal of provisions that had become obsolete.
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\33\ The only 40 CFR part 82, subpart F requirements that
applied to substitute refrigerants prior to the 2016 CAA section 608
Rule were the venting prohibition and certain exemptions from that
prohibition, as set forth in Sec. 82.154(a).
---------------------------------------------------------------------------

EPA reviewed the 2016 CAA section 608 Rule, focusing in particular
on whether the Agency had the statutory authority to extend the full
set of

[[Page 72227]]

subpart F refrigerant management regulations to non-exempt substitute
refrigerants, such as HFCs and HFOs. In 2018, EPA proposed to withdraw
the extension of the provisions of 40 CFR 82.157 to appliances using
only non-exempt substitute refrigerants.\34\ (83 FR 49332, October 1,
2018). In 2020, EPA published a final rule (85 FR 14150, March 11,
2020) withdrawing only the extension of the leak repair requirements--
including requirements for repairing leaks, conducting leak
inspections, and keeping applicable records--for appliances containing
only such substitute refrigerants. Other subpart F provisions that were
extended to substitute refrigerants in the 2016 CAA section 608 Rule,
as mentioned above, were left in place for appliances containing only
ODS substitute refrigerants. There were no changes to any of the
regulatory requirements for ODS in the 2020 CAA section 608 Rule.
---------------------------------------------------------------------------

\34\ Ozone-depleting refrigerants and appliances that contain or
use any amount of ODS continue to be subject to all applicable
subpart F requirements, including those in 40 CFR 82.157.
---------------------------------------------------------------------------

Petitions for judicial review were filed on the 2016 CAA section
608 Rule and separately on the 2020 CAA section 608 Rule. Two industry
coalitions, National Environmental Development Association's Clean Air
Project (NEDA/CAP) and the Air Permitting Forum (APF), filed petitions
for judicial review of the 2016 CAA section 608 Rule in the U.S. Court
of Appeals for the District of Columbia Circuit (D.C. Circuit) in 2017.
APF also filed an administrative petition for reconsideration before
EPA regarding the 2016 CAA section 608 Rule.\35\ In 2020, the Natural
Resources Defense Council (NRDC) and a group of state and municipal
petitioners \36\ filed petitions for judicial review of the 2020 CAA
section 608 Rule in the D.C. Circuit. NEDA/CAP also filed an
administrative petition before EPA regarding the 2020 CAA section 608
Rule, which is styled as a petition for reconsideration or in the
alternative a petition for rulemaking.\37\ These four petitions for
review were all consolidated under Case No. 20-1150 (D.C. Cir.) in July
of 2020, and in August of 2020 the court severed four issues raised in
NEDA/CAP and APF's administrative petitions for reconsideration and
assigned them to a different case (Case No. 20-1309, D.C. Cir.). Both
cases are now being held in abeyance.
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\35\ APF Petition for Reconsideration, January 2017, available:
<a href="https://www.regulations.gov/document?D=EPA-HQ-OAR-2015-0453-0228">https://www.regulations.gov/document?D=EPA-HQ-OAR-2015-0453-0228</a>.
\36\ The state and municipal petitioners are the State of New
York, State of Connecticut, State of Illinois, State of Maine, State
of Maryland, State of Minnesota, State of New Jersey, State of
Oregon, Commonwealth of Virginia, State of Washington, District of
Columbia, and City of New York.
\37\ NEDA/CAP Petitions for Reconsideration/Petition for
Rulemaking, May 2020, available: <a href="https://www.regulations.gov/document?D=EPA-HQ-OAR-2017-0629-0345">https://www.regulations.gov/document?D=EPA-HQ-OAR-2017-0629-0345</a>.
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On January 20, 2021, President Biden issued an ``Executive Order on
Protecting Public Health and the Environment and Restoring Science to
Tackle the Climate Crisis,'' which directed review of certain agency
actions taken between January 20, 2017, and January 20, 2021. Exec.
Order No. 13,990, 86 FR 7037 (Jan. 20, 2021). The 2020 CAA section 608
Rule was one of the actions subject to review under this Executive
Order. In light of both EPA's review of the 2020 CAA section 608 Rule
consistent with the Executive Order and the Agency's consideration of
subsection (h) of the AIM Act, EPA has decided to initiate a rulemaking
that, among other things, would involve evaluating the application of
leak repair requirements to appliances using HFCs and substitute
refrigerants under subsection (h). Because this proposed action is
rooted in EPA's authority under the AIM Act, EPA is not reopening or
otherwise addressing the question of its authority for such
requirements under the CAA in this proposal.
2. Motor Vehicle Air Conditioning Servicing Program (CAA Section 609)
CAA section 609 directs EPA to issue regulations establishing
standards and requirements for the servicing of MVACs. For purposes of
the regulations implementing CAA section 609, ``motor vehicle air
conditioners'' \38\ is defined at 40 CFR 82.32(d) as mechanical vapor
compression refrigeration equipment used to cool the driver's or
passenger's compartment of any motor vehicle. This definition further
states that it is not intended to encompass certain hermetically sealed
refrigeration systems used on motor vehicles for refrigerated cargo and
the air conditioning systems on passenger buses. For purposes of the
section 609 regulations, motor vehicle is defined at 40 CFR 82.32(c) as
any vehicle which is self-propelled and designed for transporting
persons or property on a street or highway, including but not limited
to passenger cars, light-duty vehicles, and heavy-duty (HD) vehicles.
This definition further provides that it does not include a vehicle
where final assembly of the vehicle has not been completed by the
original equipment manufacturer (OEM).
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\38\ A related definition for ``MVAC-like appliance'' is found
at 40 CFR 82.152: MVAC-like appliance means a mechanical vapor
compression, open-drive compressor appliance with a full charge of
20 pounds or less of refrigerant used to cool the driver's or
passenger's compartment of off-road vehicles or equipment. This
includes, but is not limited to, the air-conditioning equipment
found on agricultural or construction vehicles. This definition is
not intended to cover appliances using R-22 refrigerant.
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Under CAA section 609 and regulations that implement it, no person
repairing or servicing motor vehicles for consideration (e.g., payment
or bartering) may perform any service on an MVAC that involves the
refrigerant \39\ without properly using approved refrigerant recovery
or recovery and recycling equipment, and no such person may perform
such service for consideration unless such person has been properly
trained and certified. Section 609 also contains restrictions on the
sale or distribution, or offer for sale or distribution, of class I and
class II substances suitable for use as a refrigerant in MVACs in
containers of less than 20 pounds, except to a person performing
service for consideration on MVAC systems.
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\39\ Section 609(b)(1) defines the term ``refrigerant,'' ``[a]s
used in this section'', to mean ``any class I or class II substance
used in a motor vehicle air conditioner. Effective 5 years after
November 15, 1990, the term `refrigerant' shall also include any
substitute substance.'' EPA's implementing regulations include a
parallel definition of this term at 40 CFR 82.32(f).
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Regulations issued under CAA section 609, codified at 40 CFR part
82, subpart B, include, among other things, prohibited and required
practices for persons repairing and servicing MVACs for consideration
(40 CFR 82.34); requirements for refrigerant handling equipment (40 CFR
82.36); approval processes for independent standards testing
organizations (40 CFR 82.38); requirements for certifications that any
person servicing or repairing MVACs for consideration must submit to
EPA, and related recordkeeping requirements (40 CFR 82.42). Appendices
A-F at 40 CFR part 82, subpart B, provide minimum operating
requirements for equipment used for the recovery, recycling and/or
recharging of refrigerant used in MVACs.
In 1992, EPA published a rule (57 FR 31242, July 14, 1992) under
CAA section 609 establishing standards and requirements for servicing
of MVACs and restricting the sale of small containers of ODS. The
regulations, which appear in 40 CFR part 82, subpart B, require persons
who repair or service MVACs for consideration to be certified in
refrigerant recovery and recycling and to properly use approved
equipment when performing service involving the refrigerant. Consistent
with the definition in CAA section 609(b)(1), ``refrigerant'' is
defined in

[[Page 72228]]

subpart B as any class I or class II substance used in MVACs, and to
include any substitute substance effective November 15, 1995. The 1992
CAA section 609 Rule also defined approved refrigerant recycling
equipment as equipment certified by the Administrator or an approved
organization as meeting either one of the standards in 40 CFR 82.36.
Such equipment extracts and recycles refrigerant or extracts but does
not recycle refrigerant, allowing that refrigerant to be subsequently
recycled on-site or to be sent off-site for reclamation.\40\ EPA based
the regulatory equipment standards in subpart B on those developed by
SAE. They cover service procedures for dichlorodifluoromethane (CFC-12
or R-12) recover/recycle equipment (SAE J1989, issued in October 1989),
test procedures to evaluate R-12 recover/recycle equipment (SAE J1990,
issued in October 1989 and revised in 1991) and a purity standard for
recycled R-12 refrigerant (SAE J1991, issued in October 1989). Only
equipment certified to meet the standards set forth in appendix A at 40
CFR part 82, subpart B, or that meet the criteria for substantially
identical equipment, was approved under CAA section 609 for use in the
servicing of MVACs at that time.
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\40\ Equipment that extracts and recycles refrigerant is
referred to as recover/recycle equipment. Equipment that extracts
but does not recycle refrigerant is referred to as equipment that
recovers but does not recycle refrigerant, or as recover-only
equipment.
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EPA issued another rule under CAA section 609 in 1997 (62 FR 68026,
December 30, 1997) in response to the increasing use of substitute
refrigerants, particularly 1,1,1,2-tetrafluoroethane (HFC-134a or R-
134a). The 1997 CAA section 609 Rule established standards and
requirements for the servicing of MVACs that use any refrigerant other
than R-12. The rule also stated that refrigerant (whether R-12 or a
substitute) recovered from motor vehicles at motor vehicle disposal
facilities may be re-used in the MVAC service sector only if it has
been properly recovered and recycled by persons who are either
employees, owners, or operators of the facilities, or technicians
certified under CAA section 609, using approved equipment. This differs
from the rules established under CAA section 608, in which no person
may sell or distribute, or offer for sale or distribution, used
refrigerant (including both ODS and non-exempt substitutes such as
HFCs) unless it has first been reclaimed by a certified reclaimer (40
CFR 82.154(d)). The 1997 CAA section 609 Rule also established
conditions under which owners and operators of motor vehicle disposal
facilities may sell refrigerant recovered from such vehicles to
technicians certified under CAA section 609.
3. Significant New Alternatives Policy Program (CAA Section 612)
EPA identifies and evaluates substitutes for ODS in certain
industrial sectors, including RACHP; aerosols; and foams. To a very
large extent, HFCs are used in the same sectors and subsectors as where
ODS historically have been used. Under SNAP, EPA evaluates
acceptability of substitutes for ODS based primarily on the potential
human health and environmental risks, relative to other substances used
for the same purpose. In so doing, EPA assesses atmospheric effects
such as ozone depletion potential (ODP) and GWP, exposure assessments,
toxicity data, flammability, and other environmental impacts. This
assessment could take a wide range of forms, such as a theoretical
evaluation of the properties of the substitute, a computer simulation
of the substitute's performance in the sector or subsector, lab-scale
(table-top) evaluations of the substitute, or equipment tests under
various conditions.

IV. How is EPA proposing to regulate the management of HFCs and their
substitutes?

As described in the following sections, EPA is proposing to
establish a program for the management of HFCs under subsection (h) of
the AIM Act that includes requirements regarding several topics,
including leak repair requirements for certain refrigerant-containing
appliances and use of ALD systems for certain equipment; use of
reclaimed HFCs in certain sectors or subsectors for the initial charge
or installation of equipment and for servicing and/or repair of
existing equipment; the servicing, repair, disposal, or installation of
fire suppression equipment that contains HFCs, as well as requirements
related to technician training in the fire suppression sector; recovery
of HFCs from cylinders; and container tracking for HFCs that could be
used in the servicing, repair, and/or installation of equipment. EPA
intends for the proposed provisions for these topics to be able to
stand independently from one another and has designed them accordingly.
For example, the proposed leak repair requirements for refrigerant-
containing appliances are designed to operate independently from the
proposed requirements for servicing, repair, disposal, or installation
of fire suppression equipment.

A. What definitions is EPA proposing to implement under subsection (h)?

The Allocation Framework Rule (86 FR 55116, October 5, 2021)
established regulatory definitions at 40 CFR part 84, subpart A
(``subpart A'') to implement the framework for, and begin the
regulatory phasedown of, HFCs under the AIM Act, and EPA has finalized
certain revisions to the definitions section of subpart A at 40 CFR
84.3 (see 88 FR at 46836, July 20, 2023).\41\ The proposed Technology
Transitions Rule (87 FR 76738, December 15, 2022) would establish
additional regulatory definitions in 40 CFR part 84, subpart B
(``subpart B'') as part of its first proposed rulemaking related to
implementing subsection (i) of the AIM Act, entitled ``Technology
Transitions''. EPA anticipates that any final Technology Transitions
rule under subsection (i) would be available in the docket for that
action. To maintain consistency, except as otherwise explained in this
proposal, EPA generally intends to use terms in this proposal, and in
the new subpart C which is to be established by this rule, as they are
defined in subpart A. Thus, for terms not defined in this subpart but
that are defined in subpart A (40 CFR 84.3), the definitions in 40 CFR
84.3 would apply. Although EPA has not yet finalized the regulatory
definitions that would apply under the Technology Transitions program,
we also anticipate considering any regulatory definitions that may be
finalized at subpart B as we are developing this rulemaking under
subsection (h) of the AIM Act in an effort to promote consistency where
appropriate. Accordingly, we anticipate that for terms that are not
defined in subparts A or C, but that are defined in subpart B, the
subpart B definitions would apply under the new subpart C.
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\41\ The proposed revisions in 40 CFR 84.3 are described in
EPA's proposed Allowance Allocation Methodology for 2024 and Later
Years rule, which was published on October 21, 2022 (87 FR 66372).
This rulemaking focuses on the second phase of the HFC phasedown
and, among other things, proposes to establish the allocation
methodology for the ``general pool'' of HFC production and
consumption allowances for 2024 through 2028. Available at: <a href="https://www.epa.gov/climate-hfcs-reduction/proposed-rule-allowance-allocation-methodology-2024-and-later-years">https://www.epa.gov/climate-hfcs-reduction/proposed-rule-allowance-allocation-methodology-2024-and-later-years</a>.
---------------------------------------------------------------------------

EPA welcomes comment on all definitions proposed in this action and
in particular, whether it should adopt different definitions for any of
the terms defined in subpart A or proposed to be defined in subpart B
for purposes of this rulemaking under subsection (h) of the AIM Act.
While EPA is seeking

[[Page 72229]]

comment on the definitions as proposed for the new subpart C, in this
rulemaking, the Agency is not reopening, taking comment, or proposing
to modify the definitions as finalized in subpart A or those proposed
under subpart B. The Agency also welcomes comment on the terms that are
newly defined for this proposed rule under subsection (h) as well as if
there are any additional definitions that are needed to ensure a common
understanding of terminology.
1. Which definitions is EPA proposing to adopt that parallel
definitions in 40 CFR 82.152?
EPA is proposing to adopt definitions for the following terms that
are similar to the definitions for the same terms used in 40 CFR
82.152, which includes definitions implementing section 608 of the CAA,
with only limited changes as are needed to conform with the AIM Act or
this proposed action. EPA is proposing to use this approach for these
previously defined terms because they are used in the same or
substantially similar manner as in 40 CFR part 82, subpart F.
Specifically, 40 CFR 82.152 includes definitions implementing section
608 in CAA Title VI, which is relevant to HFC management. As noted in
section III.A. of this proposal, HFCs were intentionally developed to
replace class I and class II ODS and are used in the same applications.
The approach EPA is proposing to implement subsection (h) of the AIM
Act is informed by the Agency's experience with CAA Title VI. For
example, EPA's current regulations under section 608 of the CAA require
certain refrigerant management practices by reclaimers, those who buy
or sell refrigerant, technicians, owners and operators of refrigerant-
containing appliances, and others. Because many in the regulated
community are subject to both the AIM Act and CAA section 608,
maintaining the same or similar definitions, where consistent with AIM
Act requirements, would provide consistency to those that have been
using and are familiar with these terms from CAA section 608
regulations. Because EPA's authority under the AIM Act extends beyond
the sectors covered by the regulations at 40 CFR part 82, subpart F,
where it is necessary for clarity, EPA is specifying where these
definitions specifically apply to the terms as they refer to
refrigerant-containing appliances.
Comfort cooling means the refrigerant-containing appliances used
for air conditioning to provide cooling in order to control heat and/or
humidity in occupied facilities including but not limited to
residential, office, and commercial buildings. Comfort cooling
appliances include but are not limited to chillers, commercial split
systems, and packaged roof-top units.
Commercial refrigeration means the refrigerant-containing
appliances used in the retail food and cold storage warehouse
subsectors. Retail food appliances include the refrigeration equipment
found in supermarkets, convenience stores, restaurants and other food
service establishments. Cold storage includes the refrigeration
equipment used to store meat, produce, dairy products, and other
perishable goods.
Component, as it relates to a refrigerant-containing appliance,
means a part of the refrigerant circuit within an appliance including,
but not limited to, compressors, condensers, evaporators, receivers,
and all of its connections and subassemblies.
Custom-built means that the industrial process refrigeration
equipment or any of its components cannot be purchased and/or installed
without being uniquely designed, fabricated and/or assembled to satisfy
a specific set of industrial process conditions.
Disposal, as it relates to a refrigerant-containing appliance,
means the process leading to and including:
(1) The discharge, deposit, dumping or placing of any discarded
refrigerant-containing appliance into or on any land or water;
(2) The disassembly of any refrigerant-containing appliance for
discharge, deposit, dumping or placing of its discarded component parts
into or on any land or water;
(3) The vandalism of any refrigerant-containing appliance such that
the refrigerant is released into the environment or would be released
into the environment if it had not been recovered prior to the
destructive activity;
(4) The disassembly of any refrigerant-containing appliance for
reuse of its component parts; or
(5) The recycling of any refrigerant-containing appliance for
scrap.
As with all the proposed definitions, this proposed definition of
``disposal,'' as it relates to a refrigerant-containing appliance, is
limited to how the term is would be used in 40 CFR part 84 subpart C.
Follow-up verification test, as it relates to a refrigerant-
containing appliance, means those tests that involve checking the
repairs to an appliance after a successful initial verification test
and after the appliance has returned to normal operating
characteristics and conditions to verify that the repairs were
successful. Potential methods for follow-up verification tests include,
but are not limited to, the use of soap bubbles as appropriate,
electronic or ultrasonic leak detectors, pressure or vacuum tests,
fluorescent dye and black light, infrared or near infrared tests, and
handheld gas detection devices.
Full charge, as it relates to a refrigerant-containing appliance,
means the amount of refrigerant required for normal operating
characteristics and conditions of the appliance as determined by using
one or a combination of the following four methods:
(1) Use of the equipment manufacturer's determination of the full
charge;
(2) Use of appropriate calculations based on component sizes,
density of refrigerant, volume of piping, and other relevant
considerations;
(3) Use of actual measurements of the amount of refrigerant added
to or evacuated from the appliance, including for seasonal variances;
and/or
(4) Use of an established range based on the best available data
regarding the normal operating characteristics and conditions for the
appliance, where the midpoint of the range will serve as the full
charge.
Industrial process refrigeration means complex customized
refrigerant-containing appliances that are directly linked to the
processes used in, for example, the chemical, pharmaceutical,
petrochemical, and manufacturing industries. This sector also includes
industrial ice machines, appliances used directly in the generation of
electricity, and ice rinks. Where one appliance is used for both
industrial process refrigeration and other applications, it will be
considered industrial process refrigeration equipment if 50 percent or
more of its operating capacity is used for industrial process
refrigeration.
Initial verification test, as it relates to a refrigerant-
containing appliance, means those leak tests that are conducted after
the repair is finished to verify that a leak or leaks have been
repaired before refrigerant is added back to the appliance.
Leak rate, as it relates to a refrigerant-containing appliance,
means the rate at which an appliance is losing refrigerant, measured
between refrigerant charges. The leak rate is expressed in terms of the
percentage of the appliance's full charge that would be lost over a 12-
month period if the current rate of loss were to continue over that
period. The rate must be calculated using one of the following methods.
The same method

[[Page 72230]]

must be used for all appliances subject to the leak repair requirements
located at an operating facility.
(1) Annualizing Method.
(i) Step 1. Take the number of pounds of refrigerant added to the
appliance to return it to a full charge, whether in one addition or if
multiple additions related to same leak, and divide it by the number of
pounds of refrigerant the appliance normally contains at full charge;
(ii) Step 2. Take the shorter of the number of days that have
passed since the last day refrigerant was added or 365 days and divide
that number by 365 days;
(iii) Step 3. Take the number calculated in Step 1 and divide it by
the number calculated in Step 2; and
(iv) Step 4. Multiply the number calculated in Step 3 by 100 to
calculate a percentage. This method is summarized in the following
formula:
[GRAPHIC] [TIFF OMITTED] TP19OC23.000

(2) Rolling Average Method.
(i) Step 1. Take the sum of the pounds of refrigerant added to the
appliance over the previous 365-day period (or over the period that has
passed since the last successful follow-up verification test showing
all identified leaks in the appliance were repaired, if that period is
less than one year);
(ii) Step 2. Divide the result of Step 1 by the pounds of
refrigerant the appliance normally contains at full charge; and
(iii) Step 3. Multiply the result of Step 2 by 100 to obtain a
percentage. This method is summarized in the following formula:
[GRAPHIC] [TIFF OMITTED] TP19OC23.001

As discussed in section IV.C.4. of this proposal, EPA is clarifying
that owner/operators that wish to preemptively repair leaks and then
run the leak rate calculation once refrigerant has been added to the
repaired appliance for the follow-up verification test may do so,
assuming all applicable time windows are adhered to. Additionally,
owner/operators may use the amount of refrigerant lost in lieu of the
amount of refrigerant added to run the leak rate calculation prior to
adding refrigerant if they have a valid method of determining the
amount of refrigerant lost (e.g., evacuating the appliance and
comparing the amount of refrigerant evacuated to the full charge).
Mothball, as it relates to a refrigerant-containing appliance,
means to evacuate refrigerant from an appliance, or the affected
isolated section or component of an appliance, to at least atmospheric
pressure, and to temporarily shut down that appliance.
MVAC-like appliance means a mechanical vapor compression, open-
drive compressor refrigerant-containing appliance with a full charge of
20 pounds or less of refrigerant used to cool the driver's or
passenger's compartment of off-road vehicles or equipment. This
includes, but is not limited to, the air-conditioning equipment found
on agricultural or construction vehicles. This definition is intended
to have the same meaning as defined in 40 CFR 82.152.
This proposed definition deviates slightly from the definition of
``MVAC-like appliance'' at 40 CFR 82.152 to conform to the AIM Act
grant of authority. As noted, this definition is intended to have the
same meaning as defined 40 CFR 82.152.
Normal operating characteristics and conditions, as it relates to a
refrigerant-containing appliance, means appliance operating
temperatures, pressures, fluid flows, speeds, and other
characteristics, including full charge of the appliance, that would be
expected for a given process load and ambient condition during normal
operation. Normal operating characteristics and conditions are marked
by the absence of atypical conditions affecting the operation of the
appliance.
Refrigerant circuit, as it relates to a refrigerant-containing
appliance, means the parts of an appliance that are normally connected
to each other (or are separated only by internal valves) and are
designed to contain refrigerant.
Retire, as it relates to a refrigerant-containing appliance, means
the removal of the refrigerant and the disassembly or impairment of the
refrigerant circuit such that the appliance as a whole is rendered
unusable by any person in the future.
Seasonal variance, as it relates to a refrigerant-containing
appliance, means the removal of refrigerant from an appliance due to a
change in ambient conditions caused by a change in season, followed by
the subsequent addition of an amount that is less than or equal to the
amount of refrigerant removed in the prior change in season, where both
the removal and addition of refrigerant occurs within one consecutive
12-month period.
Technician, as it relates to any person who works with refrigerant-
containing appliances, means any person who in the course of servicing,
repair, or installation of a refrigerant-containing appliance (except
MVACs) could be reasonably expected to violate the integrity of the
refrigerant circuit and therefore release refrigerants into the
environment. Technician also means any person who, in the course of
disposal of a refrigerant-containing appliance (except small appliances
as defined in 40 CFR 82.152, MVACs, and MVAC-like appliances), could be
reasonably expected to violate the integrity of the refrigerant circuit
and therefore release refrigerants from the appliances into the
environment. Activities reasonably expected to violate

[[Page 72231]]

the integrity of the refrigerant circuit include but are not limited
to: Attaching or detaching hoses and gauges to and from the appliance;
adding or removing refrigerant; adding or removing components; and
cutting the refrigerant line. Activities such as painting the
appliance, rewiring an external electrical circuit, replacing
insulation on a length of pipe, or tightening nuts and bolts are not
reasonably expected to violate the integrity of the refrigerant
circuit. Activities conducted on refrigerant-containing appliances that
have been properly evacuated pursuant to Sec. 82.156 are not
reasonably expected to release refrigerants unless the activity
includes adding refrigerant to the appliance. Technicians could include
but are not limited to installers, contractor employees, in-house
service personnel, and owners and/or operators of refrigerant-
containing appliances. This proposed definition deviates slightly from
the definition of ``technician'' at 40 CFR 82.152 to conform to the AIM
Act grant of authority. EPA is also proposing a definition of
``certified technician'' to make it clear that persons certified per 40
CFR 82.161 are considered ``certified technicians'' for the purposes of
these regulations. In section VIII. of this preamble, EPA is taking
advanced comment on considerations for a future rulemaking on
technician training.
2. Which definitions is EPA proposing to adopt that parallel
definitions in 40 CFR 82.32?
EPA is proposing to adopt definitions for the following defined
terms that are similar to the definitions used in 40 CFR 82.32 with
limited changes as are needed to conform with the AIM Act or this
proposal. EPA is proposing this approach for these defined terms
because they are used in the same or substantially similar manner as in
40 CFR part 82, subpart B--Servicing of Motor Vehicle Air Conditioners
under the CAA. Section 609 in Title VI of the CAA is relevant to
refrigerant management, as it directs EPA to establish standards and
requirements regarding the servicing of MVACs. For example, under CAA
section 609 and regulations that implement it, no person repairing or
servicing motor vehicles for consideration (e.g., payment or bartering)
may perform any service on an MVAC that involves the refrigerant
without properly using approved refrigerant recovery or recovery and
recycling equipment, and no such person may perform such service for
consideration unless such person has been properly trained and
certified. Because many within the regulated community are subject to
both the AIM Act and CAA section 609, maintaining the same definitions,
where consistent with AIM Act requirements, would provide consistency
to those that have been using and are familiar with these terms from
section 609. EPA welcomes comment on whether any of these terms should
be further updated or modified for purposes of this rulemaking under
subsection (h) of the AIM Act.
Motor vehicle as used in this subpart means any vehicle which is
self-propelled and designed for transporting persons or property on a
street or highway, including but not limited to passenger cars, light-
duty vehicles, and heavy-duty vehicles. This definition does not
include a vehicle where final assembly of the vehicle has not been
completed by the original equipment manufacturer.
Motor vehicle air conditioners (MVAC) means mechanical vapor
compression refrigerant-containing appliances used to cool the driver's
or passenger's compartment of any motor vehicle. This definition is
intended to have the same meaning as defined in 40 CFR 82.32.
3. What other definitions is EPA proposing to adopt?
EPA is also proposing to establish definitions for new terms that
are applicable only under 40 CFR part 84, subpart C, and do not have a
counterpart in the definitions under 40 CFR part 84, subpart A and that
we do not anticipate will have a counterpart in any definitions that
may be finalized in subpart B. The definitions that EPA is proposing to
include in 40 CFR 84.102 for application to 40 CFR part 84, subpart C
are as follows:
Certified technician means a technician that has been certified per
the provisions at 40 CFR 82.161.
Equipment means any device that contains, uses, detects or is
otherwise connected or associated with a regulated substance or
substitute for a regulated substance, including any refrigerant-
containing appliance, component, or system.
Fire suppression equipment means any device that is connected to or
associated with a regulated substance or substitute for a regulated
substance, including blends and mixtures, consisting in part or whole
of a regulated substance or a substitute for a regulated substance, and
that is used for fire suppression purposes. This term includes any such
equipment, component, or system. This term does not include mission-
critical military end uses and systems used in deployable and
expeditionary situations. This term also does not include space
vehicles as defined in 40 CFR 84.3.
EPA is proposing to explicitly state that the definition of ``fire
suppression equipment'' for purposes of subsection (h) does not include
mission-critical military end uses and systems used in deployable and
expeditionary applications, as well as space vehicles. This proposed
exclusion is based on EPA's understanding that there are situations in
which the unique design and use of mission-critical military end uses
and systems used in deployable and expeditionary situations and space
vehicles make it impossible to recover fire suppression agent during
the service, repair, disposal, or installation of the equipment.
Fire suppression technician means any person who in the course of
servicing, repair, disposal, or installation of fire suppression
equipment could be reasonably expected to violate the integrity of the
fire suppression equipment and therefore release fire suppressants into
the environment.
Installation means the process of setting up equipment for use,
which may include steps such as completing the refrigerant circuit,
including charging equipment with a regulated substance or substitute
for a regulated substance, or connecting cylinders containing a
regulated substance or a substitute for a regulated substance to a
total flooding fire suppression system, such that the equipment can
function and is ready for use for its intended purpose.
This definition of ``installation'' for purposes of subsection (h)
is different from how the term is used in the definitions in the
proposed Technology Transitions Rule (87 FR 76738, December 15, 2022).
Specifically, the definition for ``manufacture'' in that proposed rule
covers the installation of certain appliances in certain subsectors
(e.g., commercial refrigeration and IPR). In discussing the definition
for ``manufacture'' in that proposed rule, EPA described that for these
types of appliances, complex installation processes may be required,
and the appliance is typically manufactured and field-charged with
refrigerant on-site. Further, appliances such as these that are field
charged or have the refrigerant circuit completed on-site are
considered manufactured at the point when installation of all the
components and other parts are completed, and the appliance is fully
charged with refrigerant and able to operate. For purposes of the
proposed Technology Transitions Rule (87 FR 76738, December 15, 2022),
the installation

[[Page 72232]]

date of such equipment is relevant to the proposed GWP limit-based
restriction and compliance date for the applicable subsector(s).
The types of installations covered under the proposed definition of
``manufacture'' in the proposed Technology Transitions Rule (87 FR
76738, December 15, 2022) would be included in the proposed definition
of ``installation'' in this proposal under subsection (h), and other
types of installation would also be included in the definition included
in this proposal. EPA is proposing a broad definition of
``installation'' under subsection (h) in order to ensure that the
Agency's implementation of subsection (h)(1) encompasses the practices,
processes or activities that are relevant to the installation of
equipment that would be regulated under this proposal.
Leak inspection, as it relates to a refrigerant-containing
appliance, means the examination of an appliance to detect and
determine the location of refrigerant leaks. Potential methods include,
but are not limited to, ultrasonic tests, gas-imaging cameras, bubble
tests as appropriate, or the use of a leak detection device operated
and maintained according to manufacturer guidelines. Methods that
determine whether the appliance is leaking refrigerant but not the
location of a leak, such as standing pressure/vacuum decay tests, sight
glass checks, viewing receiver levels, pressure checks, and charging
charts, must be used in conjunction with methods that can determine the
location of a leak.
This definition generally aligns with the corresponding definition
at 40 CFR 82.152, except EPA is proposing to add the ``detect and''
language. In EPA's view, including ``detect and'' clarifies that a leak
inspection is not just to determine the precise location of a known
leak, but also to detect additional leaks that may be contributing to a
leak rate exceedance.
Owner or operator means any person who owns, leases, operates, or
controls any equipment, or who controls or supervises any practice,
process, or activity that is subject to any requirement pursuant to
this subpart.
Recover means the process by which a regulated substance, or where
applicable, a substitute for a regulated substance, is removed, in any
condition, from equipment; and stored in an external container, with or
without testing or processing the regulated substance or substitute for
a regulated substance.
In the regulations implementing under subsection (h), EPA is
proposing to define the term ``recover'' as it is defined in subsection
(b)(10) of the AIM Act for HFCs and to extend the regulatory definition
to substitutes for HFCs. The term ``recover'' is defined in the AIM Act
at subsection (b)(10) as ``the process by which a regulated substance''
is ``removed, in any condition, from equipment'' and ``stored in an
external container, with or without testing or processing the regulated
substance.'' EPA is proposing to include that the term recover also
apply to substitutes for regulated substances in these regulations to
support implementation of subsection (h)(1), which authorizes certain
regulations involving substitutes for regulated substitutes.
Substitutes for regulated substances are used in the same applications
and often the same equipment as the regulated substances that they are
being used in place of. Thus, recovering the substitute for a regulated
substance would also occur, as appropriate, during the servicing,
repair, or disposal of equipment and could be addressed by regulations
under subsection (h)(1). Thus, including substitutes for regulated
substances in the regulatory definition of ``recover'' provides clarity
and supports application of these regulations to both regulated
substances and their substitutes.
Recycling, when referring to fire suppression or fire suppressants,
means the testing and/or reprocessing of regulated substances used in
the fire suppression sector to certain purity standards.
Refrigerant, for purposes of this subpart, means any substance,
including blends and mixtures, consisting in part or whole of a
regulated substance or a substitute for a regulated substance that is
used for heat transfer purposes, including those that provide a cooling
effect.
Refrigerant-containing appliance means any device that contains and
uses a regulated substance or substitute for a regulated substance as a
refrigerant including any air conditioner, motor vehicle air
conditioner, refrigerator, chiller, or freezer. For a system with
multiple circuits, each independent circuit is considered a separate
appliance.
As the terms ``appliance'' and ``refrigerant-containing appliance''
are not defined terms under the AIM Act, the regulatory definition will
provide clarity as to what types of equipment would be subject to
certain proposed requirements. EPA intends this term to be a subset of
the broader category of ``equipment'' subject to subsection (h) of the
AIM Act. EPA notes that this proposed definition differs from the
definition of ``appliance'' under section 608 of the CAA. Sections 601
and 608 of the CAA specified that an appliance ``is used for household
or commercial purposes,'' and that phrase also appears in the
definition of ``appliance'' in 40 CFR 82.152. The AIM Act has no
analogous provision. Accordingly, EPA is not proposing to include that
phrase in defining ``refrigerant-containing appliance'' for purposes of
implementing subsection (h). In keeping with the application of Title
VI of the CAA (e.g., under sections 608 and 612), EPA is defining a
``refrigerant-containing appliance'' to consist of an independent
circuit. The independent circuit provides the desired cooling or
heating effect, typically consisting of a compressor, condenser,
evaporator, and metering device in an enclosed refrigerant loop. EPA
notes that a given piece of equipment could contain multiple
independent circuits and thus be considered as multiple, separate
``refrigerant-containing appliances.'' For instance, some food retail
cases have been made with multiple independent circuits, each one
containing the maximum 150-gram charge limit of propane, thus allowing
a single case to address a higher refrigeration load. Also, some
household refrigerator-freezers have been produced with two independent
circuits, one handling the refrigerator and another the freezer.
Refrigerant-containing equipment means equipment as defined in this
subpart that contains, uses, or is otherwise connected or associated
with a regulated substance or substitute for a regulated substance that
is used as a refrigerant. This definition includes refrigerant-
containing components, refrigerant-containing appliances, and MVAC-like
appliances. This term does not include mission-critical military end
uses and systems used in deployable and expeditionary situations. This
term also does not include space vehicles as defined in 40 CFR 84.3.
EPA is proposing to explicitly state that the definition of
``refrigerant-containing equipment'' under subsection (h) does not
include mission-critical military end uses and systems used in
deployable and expeditionary applications, as well as space vehicles.
This proposed exclusion is based on EPA's understanding that there are
situations in which the unique design and use of mission-critical
military end uses and systems used in deployable and expeditionary
situations and space vehicles make it impossible to recover refrigerant
during the service, repair, disposal, or installation of the equipment.
Likewise, requiring adherence to the leak repair and other

[[Page 72233]]

proposed provisions for refrigerant-containing equipment in this
proposal in an active military zone of engagement, including systems
used in deployable and expeditionary situations, could lessen the
military effectiveness of the equipment. Likewise, requiring leak
repair and other provisions in this proposal for such equipment in
space vehicles could lessen their effectiveness.
Repackager means an entity who transfers regulated substances,
either alone or in a blend, from one container to another container
prior to sale or distribution or offer for sale or distribution. An
entity that services system cylinders for use in fire suppression
equipment and returns the same regulated substances to the same system
cylinder it was recovered from after the system cylinder is serviced is
not a repackager.
Repair, for purposes of this subpart and as it relates to a
particular leak in a refrigerant-containing appliance, means making
adjustments or other alterations to that refrigerant-containing
appliance that have the effect of stopping leakage of refrigerant from
that particular leak.
Reprocess means using procedures, such as filtering, drying,
distillation and other chemical procedures to remove impurities from a
regulated substance or a substitute for a regulated substance.
Retrofit, as it relates to a refrigerant-containing appliance,
means to convert an appliance from one refrigerant to another
refrigerant. Retrofitting includes the conversion of the appliance to
achieve system compatibility with the new refrigerant and may include,
but is not limited to, changes in lubricants, gaskets, filters, driers,
valves, o-rings or appliance components. Retrofits required under this
subpart shall be done to a refrigerant with a lower global warming
potential. EPA is proposing this definition as similar to the parallel
definition in 40 CFR 82.152, with an additional provision requiring
that retrofits performed for compliance with this rulemaking must
involve switching to a lower GWP refrigerant. EPA is proposing to
include this provision as part of this definition for the purposes of
this action so that if an owner or operator chooses to retrofit a
refrigerant-containing appliance in lieu of repairing a leak, the
retrofit must use a refrigerant that is a lower GWP in the original
equipment. One implication of including this provision would be that if
there are cases in which switching to a lower GWP refrigerant is not an
option (e.g., for reasons such as safety considerations or a
refrigerant with a lower GWP is not suitable for use in a particular
refrigerant-containing appliance), a retrofit would not be available as
a compliance option for the particular refrigerant-containing
appliance. Additional detail on the requirements of performing a
retrofit and developing a retrofit plan can be found in section
IV.C.3.f. of this preamble.
Stationary refrigerant-containing equipment means refrigerant-
containing equipment, as defined in this subpart, that is not a motor
vehicle air conditioner or MVAC-like appliance, as defined in this
subpart.
Substitute for a regulated substance means a substance that can be
used in equipment in the same or similar applications as a regulated
substance, to serve the same or a similar purpose, including but not
limited to a substance used as a refrigerant in a refrigerant-
containing appliance or as a fire suppressant in fire suppression
equipment, provided that the substance is not a regulated substance or
an ozone-depleting substance.
EPA is proposing for the purposes of this action to define a
substitute for a regulated substance to make clear that substitutes in
this rulemaking would not include regulated substances or ozone-
depleting substances. Examples of a substitute for a regulated
substance include but are not limited to HFOs, hydrocarbons (e.g.,
propane, isobutane), ammonia (NH<INF>4</INF>), and CO<INF>2</INF>. A
substitute for a regulated substance may be used neat or in a blend.
Subsection (h) includes authority for EPA to develop regulations
involving regulated substances and substitutes for regulated
substances. Specifically, subsection (h)(1) expressly provides that EPA
is to promulgate certain regulations involving a regulated substance, a
substitute for a regulated substance, the reclaiming of a regulated
substance as a refrigerant, or the reclaiming of a substitute for a
regulated substance as a refrigerant. EPA acknowledges that this
definition of ``substitute for a regulated substance'' differs from the
definition of the similar term, ``substitute'' \42\ in the proposed
Technology Transitions Rule (87 FR 76738, December 15, 2022). EPA is
proposing this definition for purposes of implementing subsection (h),
because specifying that substitutes for a regulated substance are only
those substances that do not contain HFCs will draw a distinction that
is helpful for certain provisions in this proposal, as EPA is proposing
to control certain practices, processes, or activities as they relate
to regulated substances differently from compared to how they relate to
substitutes for regulated substances. As EPA has noted in the Executive
Summary at section I.A., the terms ``HFC'' and ``regulated substance''
are used interchangeably in this preamble. Similarly, throughout this
preamble, EPA notes that the term ``substitute for an HFC'' may be used
interchangeably with ``substitute for a regulated substance'' in this
preamble.
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\42\ The proposed definition for substitute in the proposed
Technology Transitions rule is: ``any substance, product, or
alternative manufacturing process, whether existing or new, that is
used, or intended for use, in a sector or subsector with a lower
global warming potential than the regulated substance, whether neat
or used in a blend, to which a use restriction would apply.'' (See
87 FR 76738, 76754, December 15, 2022). EPA further notes that it
has not made final decisions for the Technology Transitions rule.
---------------------------------------------------------------------------

Virgin regulated substance means any regulated substance that has
not had any bona fide use in equipment except for those regulated
substances contained in the heel or the residue of a container that has
bona fide use in the servicing, repair, or installation of equipment.
EPA is proposing to add this definition of ``virgin regulated
substance'' to make it clear that introduction of a regulated substance
to equipment, such as a refrigerant-containing appliance or fire
suppression equipment, solely to convert the regulated substance to
``used'' regulated substance in order to circumvent the intended
requirements of this proposal is not permissible. This scenario, where
regulated substance is charged to equipment, such as a refrigerant-
containing appliance or fire suppression equipment, and recovered
without any bona fide use, was brought to EPA's attention by
stakeholders including during public stakeholder meetings as the agency
developed this proposal.\43\ A regulated substance that has had no bona
fide use in equipment would be considered a virgin regulated substance
unless it was from the heel or residue of a container that did have a
bona fide use in the servicing, repair, or installation of equipment.
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\43\ EPA held stakeholder meetings for public input on November
9, 2022 and March 16, 2023 as well as solicited feedback through a
webinar for the EPA GreenChill Partnership program on April 12,
2023.
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B. Which sectors and subsectors is EPA considering addressing under
subsection (h)?

Subsection (h) of the AIM Act provides EPA authority to promulgate
regulations to control, where appropriate, any practice, process, or
activity related to the servicing, repair, disposal, or installation of
equipment that involves HFCs or their substitutes, or the reclaiming of
HFCs or their substitutes used as refrigerants. EPA

[[Page 72234]]

interprets this provision to include authority to regulate, as
appropriate, practices, processes, or activities related to any sector,
subsector, or application where a regulated substance or a substitute
for a regulated substance is used in equipment. Regulated substances
and their substitutes are typically used in the RACHP sector as a
refrigerant in a vapor compression cycle to cool and/or dehumidify a
substance or space, like a refrigerator cabinet, room, office building,
or warehouse. Regulated substances and/or their substitutes may also be
used in other sectors, subsectors, or applications, such as aerosols,
fire suppression, solvent cleaning, foam blowing, and others. However,
as noted in section II.B. of this proposal, subsection (h)(4) expressly
provides that any rulemaking under subsection (h) shall not apply to a
regulated substance or a substitute for a regulated substance that is
contained in a foam. Thus, EPA is not proposing any requirements for
regulated substances or their substitutes when they are contained in
foams in this proposal. Accordingly, EPA interprets its authority under
subsection (h) to include promulgating regulations that control the
types of practices, processes, or activities identified in subsection
(h)(1) in any of those sectors, subsectors, or applications, with the
limitation that we do not interpret our regulatory authority under
subsection (h) to extend to HFCs or substitutes for HFCs when they are
contained in foams.
EPA is proposing requirements for equipment in certain sectors or
subsectors as described in sections IV.C.-F. of this preamble. While
EPA interprets subsection (h) to provide authority that could be
applied to practices, processes, or activities related to equipment
across a broad range of sectors, subsectors, or applications that
involve regulated substances and/or their substitutes, at this time EPA
is focusing on certain sectors and subsectors in the requirements
proposed in the rulemaking. In future rulemakings, EPA may consider
establishing requirements for equipment in other sectors, subsectors,
or applications that involve regulated substances and/or their
substitutes. The relevant sections of this preamble describe the
requirements that EPA is proposing for equipment in certain sectors and
subsectors and how EPA understands these sectors and subsectors as
relevant for these proposed requirements.
Where EPA is proposing requirements for certain sectors or
subsectors, we intend to be consistent with how those sectors or
subsectors are understood under other provisions of the AIM Act and/or
CAA Title VI that address the same sector or subsector, such as
subsection (i) of the AIM Act, through the Technology Transitions
program. EPA issued a proposed Technology Transition rulemaking on
December 15, 2022 (87 FR 76738) which provides additional detail on
many of the same sectors and subsectors for which we are proposing
certain requirements under subsection (h). Although EPA has not yet
made final decisions regarding those sectors or subsectors under
subsection (i) of the AIM Act, we also anticipate considering how those
sectors or subsectors are addressed in the final Technology Transitions
rulemaking in developing this rulemaking under subsection (h) of the
AIM Act.
EPA is proposing certain provisions, as described later in this
preamble, for certain equipment in applicable subsectors within the
RACHP sector in this action. Such subsectors within the RACHP sector
include: residential and light commercial air conditioning and heat
pumps; cold storage warehouses; IPR; stand-alone retail food
refrigeration; supermarket systems; refrigerated transport; and
automatic commercial ice makers. EPA is also proposing certain
provisions for equipment in the fire suppression sector, as described
later in this preamble. Not all provisions proposed in this rulemaking
would apply to each of the sectors and subsectors identified here. For
example, EPA is proposing certain requirements for the use of reclaimed
HFCs in residential and light commercial AC and heat pumps. However,
EPA is proposing to exempt residential and light commercial AC and heat
pump equipment in the universe of refrigerant-containing appliances
subject to proposed leak repair requirements. Additional detail can be
found in section IV.C.2. of this preamble.
EPA is requesting comment on all aspects of this proposed rule.
Where EPA is proposing requirements for equipment in certain sectors
and subsectors, EPA is providing additional detail noting specific
areas for which we are seeking comment.

C. How is EPA proposing to address leak repair?

1. Background
As noted above, subsection (h) of the AIM Act includes provisions
focused on the management of regulated substances. Specifically,
subsection (h)(1) directs EPA, for ``purposes of maximizing reclaiming
and minimizing the release of a regulated substance from equipment and
ensuring the safety of technicians and consumers,'' to ``promulgate
regulations to control, where appropriate, any practice, process, or
activity regarding the servicing, repair, disposal, or installation of
equipment (including requiring, where appropriate, that any such
servicing, repair, disposal, or installation be performed by a trained
technician meeting minimum standards, as determined by the
Administrator) that involves'': ``a regulated substance''; ``a
substitute for a regulated substance''; ``the reclaiming of a regulated
substance used as a refrigerant''; or ``the reclaiming of a substitute
for a regulated substance used as a refrigerant.''
Among other things, EPA interprets its regulatory authority under
subsection (h)(1) to include authority to establish requirements
related to the detection, prevention, and repair of leaks for equipment
containing HFCs or substitutes for HFCs (whether the equipment uses the
HFC or substitute for an HFC neat or in a blend with other substances).
EPA understands the statutory phrase ``regulations to control . . . any
practice, process, or activity'' as including authority for rules
governing both the manner in which a practice, process, or activity
occurs (e.g., standards that must be met, timing of the process or
activity, etc.), as well as rules requiring that a practice, process,
or activity be undertaken. Regulations establishing requirements for
leak prevention, detection, and repair would control practices,
processes, and activities regarding the servicing, repair, disposal, or
installation of equipment. For example, detecting and fixing leaks in
equipment would be considered an activity regarding the servicing or
repair of equipment. Similarly, leak prevention and/or inspection and
repair practices, processes, or activities would be conducted regarding
the servicing and/or repair of equipment.
The requirements proposed in this rulemaking also relate to the
statutory purposes identified in subsection (h)(1). Requirements
related to the detection, inspection, repair, and prevention of leaks
for equipment containing HFCs (whether used neat or in a blend) or
their substitutes would serve the statutory purpose of minimizing the
release of regulated substances from equipment. For example, leak
detection, inspection, and repair requirements help minimize such
releases because the sooner a leak is found and repaired, the less HFC
will be released. Further, leak prevention requirements would minimize
HFC releases by avoiding potential leaks in the first place.
Additionally, regulations establishing

[[Page 72235]]

requirements for leak prevention, detection, and repair would also
further the statutory purpose of maximizing the reclamation of
regulated substances by reducing the amount of HFC released from
equipment and thus increasing the amount of HFC that is available to be
recovered and reclaimed. Any regulated substance used in equipment that
is released through leaks and escapes to the atmosphere reduces the
amount of HFC remaining in the equipment that could otherwise be
recovered and reclaimed for further use.
Further, as the phasedown of the production and consumption of HFCs
as required by the AIM Act progresses, reclaimed HFCs will play a key
role in the amount of available HFCs for equipment that will continue
to use HFCs (e.g., for servicing). Reclaimed HFCs will also be
important in avoiding potential economic disruption that could be
associated with the scarcity of virgin HFCs as well as avoid stranding
existing equipment that will need to be serviced using HFCs. Generally,
overall refrigerant management in appliances helps to maintain the
health of the appliances. This can be crucial for refrigerant-
containing appliances in the RACHP subsectors that are relevant to
handling food products, such as supermarket systems, refrigerated
transport, and other food retail subsectors where the intended function
is to ensure food products are maintained at appropriate temperatures
to avoid spoilage and food waste. In 2021, 344,000 tons of food were
lost in the United States due to equipment issues in the retail and
food service subsectors.\44\ Successful repair of leaks and avoiding
leaks are a few ways to help ensure that these appliances are operating
efficiently and as intended and can help to avoid unnecessary food
waste.
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\44\ ReFED, Insights Engine Food Waste Monitor, May 2023,
available at: <a href="https://insights-engine.refed.org/food-waste-monitor?view=overview&year=2021">https://insights-engine.refed.org/food-waste-monitor?view=overview&year=2021</a>.
---------------------------------------------------------------------------

In considering requirements related to leak prevention, detection,
and repair under subsection (h) of the AIM Act, EPA further notes that
subsection (h)(3) expressly provides that EPA may coordinate
regulations promulgated to carry out subsection (h) with any other
regulations promulgated by EPA that involve the same or a similar
practice, process, or activity regarding the servicing, repair,
disposal, or installation of equipment, or reclaiming. Accordingly, the
Agency considered various potential approaches to coordinating the
proposed regulations under subsection (h) related to leak prevention,
detection, and repair with regulations previously promulgated under CAA
section 608, given they relate to the same or similar practices,
processes, or activities for refrigerant-containing appliances
containing ODS. In particular, during the development of this NPRM, EPA
considered the requirements at 40 CFR 82.157.
As noted in the background section of this preamble at section
III.C.1., all provisions in 40 CFR part 82, subpart F except leak
repair currently apply to appliances containing ODS substitutes
including regulated HFCs used neatly or in blends. EPA is not proposing
any requirements duplicative of those in this action. However, EPA is
proposing to establish leak repair requirements for refrigerant-
containing appliances using HFCs and/or substitutes for HFCs.
As described in the definitions section of this proposal at section
IV.A.3., EPA is proposing to define ``equipment'' as including
appliances. In the context of subsection (h), EPA considers that
appliances would be a subset within the broader category of equipment.
EPA has also proposed to define ``refrigerant-containing appliance'' in
section IV.A.3. In this action, the Agency generally refers to the
proposed leak repair requirements as applying to refrigerant-containing
appliances. In the context of the proposed leak repair requirements,
appliances are considered types of equipment that are used in
subsectors within the RACHP sector. EPA is proposing leak repair
provisions for certain refrigerant-containing appliances with a
refrigerant that contains HFCs or certain substitutes for HFCs (whether
the equipment uses the HFC or certain substitutes for an HFC neat or in
a blend with other substances) under subsection (h) of the AIM Act. If
finalized, these regulations would be codified at 40 CFR part 84.106.
2. Scope of the Proposed Leak Repair Requirements
EPA is proposing leak repair requirements for certain refrigerant-
containing appliances containing HFC (whether used neat or in a blend)
or certain HFC substitute refrigerants under subsection (h) of the AIM
Act. These requirements are being proposed as part of implementing
subsection (h)(1) of the AIM Act, as these provisions would control
practices, processes, or activities regarding servicing or repair of
appliances, which are a type of equipment, and would involve a
regulated substance or a substitute for a regulated substance. The
requirements proposed are similar to leak repair provisions for
appliances containing an ODS refrigerant found at 40 CFR 82.157,\45\
but are not identical. In particular, EPA is proposing to apply the
leak repair requirements under subsection (h) of the AIM Act to
appliances containing HFCs or certain substitutes for HFCs with lower
charge sizes. Where EPA is proposing to require the same or similar
practice, process or activity for applicable appliances containing HFC
or substitutes for HFCs as is required under 40 CFR 82.157 for
appliances containing an ODS refrigerant, EPA is proposing to adopt
regulatory text under 40 CFR part 84, where appropriate, that is
consistent with the parallel provision in 40 CFR 82.157. Where the
proposed requirements are different, the regulatory text will differ.
---------------------------------------------------------------------------

\45\ In this proposed rulemaking, EPA is not reopening the leak
repair requirements at 40 CFR 82.157 or proposing any changes to
them.
---------------------------------------------------------------------------

a. Appliances containing which refrigerants would be subject to the
proposed leak repair requirements?
EPA is proposing to include HFCs (including blends that contain
HFCs) and certain substitutes for HFCs under the provisions related to
leak repair under subsection (h) of the AIM Act. As noted previously,
HFCs are potent GHGs with GWPs that can be hundreds to thousands of
times more potent than CO<INF>2</INF>. As noted in the background
section of this preamble (section III.A), global HFC use and emissions
have been increasing since the ODS phaseout and their increasing use in
RACHP equipment.\46\ Provisions related to leak repair for equipment
that use HFCs and their substitutes are critical to mitigating
emissions of HFCs and meeting the purpose stated in subsection (h)(1)
of the AIM Act to minimize releases of regulated substances from
equipment. As mentioned, the AIM Act includes a list of 18 HFCs as
regulated substances and provides authority for the Administrator to
add additional HFCs if certain criteria are met, including that the GWP
of the substance is above 53.\47\ Certain substitutes for HFCs have
GWPs that are below that of the lowest GWP of a substance that EPA
could list as a regulated substance under subsection (c)(3)(A)(i)(II)
of the AIM Act (i.e., a GWP of greater than 53). EPA is proposing to
apply the leak repair requirements to refrigerant-containing appliances
containing an HFC

[[Page 72236]]

refrigerant or a substitute for HFC refrigerants that have a GWP above
53 (whether the HFC or substitute for an HFC is used neat or in a
blend). EPA is proposing this cutoff for the leak repair provisions;
however, other provisions in this proposal would apply to any
substitute for an HFC without any GWP threshold, unless otherwise
specified.
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\46\ WMO, 2022.
\47\ Subsection (c)(3)(A) provides the criteria by which the
Administrator may designate a substance not included in the list of
regulated substances in subsection (c)(1); these criteria include
that the substance must be a chemical substance that is a saturated
hydrofluorocarbon and have an exchange value (i.e., GWP) greater
than 53.
---------------------------------------------------------------------------

In subsection (h) of the AIM Act, Congress directed EPA to control,
where appropriate, any practice, process, or activity regarding the
servicing, repair, disposal, or installation of equipment involving
HFCs or their substitutes. EPA is proposing that for the leak repair
provisions under subsection (h), it is appropriate at this time to only
address substitutes for HFCs (whether used neat or in a blend) with
GWPs that are greater than the cutoff Congress provided for listing new
regulated substances (i.e., a GWP of 53). The agency notes that
currently the vast majority of HFC refrigerants and refrigerant blends
containing HFCs in equipment have much higher GWPs, often 20 to 50, or
even more than 75 times as high as this cutoff. EPA acknowledges that
over time the refrigerant market is likely to shift, and that this
proposal is based on the current and near-term anticipated market for
equipment that contains HFCs and substitutes for HFCs. Thus, we view it
as appropriate to focus the proposed leak repair requirements on HFCs
and substitutes for HFCs with GWPs above 53 in this rulemaking, whether
the HFC or substitute is used neat or in a refrigerant blend. We
further note that EPA may in a future rulemaking consider establishing
leak repair requirements for substitutes for HFCs and blends containing
substitutes for HFCs with a GWP at or below 53. For example, if EPA
becomes aware of concerns related to this limitation as the refrigerant
market shifts to lower GWP substitutes for HFCs, EPA could consider
revisiting this requirement.
To determine whether an appliance containing a substitute for a
regulated substance is required to comply with the proposed leak repair
provisions, EPA is proposing to adopt the similar process for
determining the GWP of regulated substances and/or their substitutes as
described in the proposed Technology Transitions Rule (87 FR 76738,
76750, December 15, 2022). The GWP of a regulated substance would use
the GWP as related to the exchange value listed in subsection (c) of
the AIM Act and codified as appendix A to 40 CFR part 84.\48\ For the
GWP of substitutes for regulated substances, EPA is proposing to use
IPCC's Fourth Assessment Report (AR4) 100-year GWPs wherever possible
given they are numerically the same as the exchange values in the AIM
Act and because EPA considers such an approach to be less complicated.
For hydrocarbons listed in Table 2-15 of AR4, EPA is proposing to use
the net GWP value. For substances for which no GWP is provided in AR4,
EPA is proposing to use the 100-year GWP listed in World Meteorological
Organization (WMO) 2022.\49\ For any substance not listed in either of
these sources, EPA is proposing to use the GWP of the substance in
Table A-1 to 40 CFR part 98, as it exists on a specified date, such as
the date any final rule based on this proposal is published in the
Federal Register, if such substance is specifically listed in that
table. EPA is aware of two potential substitutes for regulated
substances that might be addressed by the proposed requirements that
are not listed in these three sources, trans-dichloroethylene (HCO-
1130(E)) and HCFO-1224yd(Z) and is proposing to set these GWPs to be
five \50\ and one,\51\ respectively, for the purposes of this proposal.
For any other substance not listed in the above three source documents,
EPA is proposing that the default GWPs as shown in Table A-1 to 40 CFR
part 98, as it exists on a specified date, such as the date any final
rule based on this proposal is published in the Federal Register, shall
be used. In the event that the hierarchy outlined in this section does
not provide a GWP (i.e., the substance in question is not listed in the
three documents, is not one of the two for which EPA is proposing GWPs,
is not listed in Table A-1 to 40 CFR part 98 and does not fit within
any of the default GWPs provided in Table A-1 to 40 CFR part 98), EPA
is proposing to use a GWP of zero. In any case where a GWP value is
preceded with a less than (<), very less than (<<), greater than (>),
approximately (~), or similar symbol in the source document, which is
used to determine the GWP, EPA is proposing that the value shown shall
be used.
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\48\ EPA noted in section III.A. of this preamble that the
exchange values for the regulated HFCs listed in subsection (c) of
the AIM Act are numerically identical to the 100-year GWPs of each
substance, as given in the Errata to Table 2.14 of the IPCC's Fourth
Assessment Report (AR4) and Annexes A, C, and F of the Montreal
Protocol. Available at: <a href="https://www.ipcc.ch/site/assets/uploads/2018/05/ar4-wg1-errata.pdf">https://www.ipcc.ch/site/assets/uploads/2018/05/ar4-wg1-errata.pdf</a>.
\49\ WMO, 2022.
\50\ 81 FR 32244 (May 23, 2016).
\51\ 84 FR 64766 (November 25, 2019).
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Applying the proposed provisions related to leak repair under
subsection (h) to HFC substitutes with a GWP greater than 53, but not
those with a GWP at or below 53, would result in certain lower GWP
refrigerants (e.g., single component HFO refrigerants) that are covered
by the venting prohibition at 40 CFR 82.154(a)(1) to be excluded from
coverage under the proposed subsection (h) leak repair provisions, as
they have a GWP lower than 53. The proposed leak repair requirements
would still apply where any substitute for an HFC is a component in a
refrigerant blend that contains an HFC or another substitute for an HFC
with a GWP above 53. This would be true even if one or more of the
components of the refrigerant blend is a substitute for an HFC that is
exempted from the venting prohibition under 40 CFR 82.154(a)(1). In
describing the practical effects of our proposed approach, we are not
reopening, taking comment on, or proposing to modify any regulatory
provisions in 40 CFR part 82 in this NPRM.
In the case that a refrigerant-containing appliance uses a
refrigerant blend that contains an ODS and an HFC or a substitute for
an HFC with a GWP above 53, EPA is proposing that the owner or operator
of such appliance be required to simultaneously meet the leak repair
provisions promulgated under CAA section 608 at 40 CFR 82.157 and the
proposed provisions in this action, to the extent that they are
applicable. EPA notes that many of the provisions in this proposed
action are similar to those in 40 CFR 82.157, which should help
alleviate any concerns about duplicative requirements. However, the
provisions proposed in this NPRM (as described in the following
section) would apply to refrigerant-containing appliances with a charge
size of 15 pounds or more of a refrigerant that contains an HFC or a
substitute for an HFC with a GWP above 53. The requirements at 40 CFR
82.157 apply to appliances containing an ODS with a charge size at or
above 50 pounds. If such appliances use a refrigerant that also
contains an HFC or an HFC substitute that has a GWP above 53, they
would be required to meet the leak repair requirements proposed in this
NPRM, to ensure that the requirements applicable to the HFCs and HFC
substitutes are also met. An appliance with a charge size of 15 pounds
or greater containing a refrigerant blend that was made up of ODS and
an HFC or a substitute for an HFC with a GWP above 53 would also be
required to meet the proposed provisions in this action, as a way of
ensuring that the requirements that apply to the HFCs or certain
substitutes for HFCs contained in the equipment

[[Page 72237]]

are met. However, because these appliances would not meet the charge
size threshold under 40 CFR 82.157, those requirements would not apply
even though they contain ODS refrigerants.
EPA intends for the leak repair requirements in this proposal to be
sufficiently consistent with the requirements at 40 CFR 82.157 such
that both sets of requirements could be met for refrigerant-containing
appliances that use a refrigerant blend containing an ODS and an HFC or
a substitute for an HFC with a GWP above 53 and that have full charge
of 50 or more pounds of refrigerant. EPA requests comment on whether
there is an impediment to a refrigerant containing-appliance
simultaneously complying with both sets of requirements.
Leak repair provisions for appliances containing HFCs and certain
substitutes for HFCs as refrigerants as proposed in this document
should minimize emissions. EPA describes emission reductions in the
draft TSD titled Analysis of the Economic Impact and Benefits of the
Proposed Rule and in in section VI. of this proposal.
EPA is requesting comment on all aspects of this proposal. In
particular, EPA is seeking comment on the use of a GWP cutoff to apply
the proposed leak repair requirements to equipment containing an HFC or
a substitute for an HFC as a refrigerant, used neat or in blends. EPA
also seeks comment on using a GWP above 53 as the cutoff, including,
for example, comments on whether EPA should consider a lower GWP
cutoff.
b. Appliances with what charge size would be subject to the proposed
leak repair requirements?
EPA is proposing to apply the leak repair requirements under
subsection (h) of the AIM Act to refrigerant-containing appliances with
a charge size of 15 pounds or more of a refrigerant that contains an
HFC or a substitute for an HFC with a GWP above 53, with specific
exemptions. This is a lower threshold than the threshold for the leak
repair requirements established under CAA section 608, as the leak
repair provisions at 40 CFR 82.157 apply to appliances containing 50 or
more pounds of ODS refrigerant, a threshold that was established in
1993. EPA is aware of technological achievements that, in many cases,
have resulted in smaller charge sizes for cooling loads. For example,
microchannel heat exchangers are one such technology used to reduce
refrigerant charge size in equipment. Equipment using different
refrigerants may also have a lower charge size; for example, in air
conditioning equipment, the refrigerant charge size for HFC-32 is
approximately 10-20 percent less than that of R-410A.\52\ As another
example, EPA also understands that in certain cases, remodels or
expansions of supermarket systems can increase capacity while not
increasing the refrigerant charge size (i.e., effectively using a lower
refrigerant charge for a greater cooling capacity). Such a scenario
could be achieved by remodeling with display cases that operate at a
higher evaporator temperature to maintain product temperatures without
changing the intended purpose of the refrigeration system.\53\
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\52\ Refrigeration, Air Conditioning, and Heat Pumps Technical
Options Committee 2018 Assessment Report, Technical and Economic
Assessment Panel, UNEP, February 2019. Available at: <a href="https://ozone.unep.org/sites/default/files/2019-04/RTOC-assessment-report-2018_0.pdf">https://ozone.unep.org/sites/default/files/2019-04/RTOC-assessment-report-2018_0.pdf</a>.
\53\ See 80 FR 42903, July 20, 2015.
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EPA is proposing a lower threshold because applying the
requirements to more equipment is expected to reduce HFC releases from
equipment and because avoided releases of HFCs from leaks would
increase the amount of HFCs that would be available for recovery and
reclamation. The AIM Act provides a schedule for a phasedown of HFCs,
as opposed to the phaseout directed for ODS under the CAA. Therefore,
there may be the continued introduction of HFC-containing equipment
indefinitely which is a notable difference from the CAA. As described
more fully in section II.B. of this proposal, subsection (h)(1) of the
AIM Act tasks the Agency with promulgating certain regulations, where
appropriate, for certain purposes, including minimizing the release of
regulated substances from equipment and maximizing the reclamation of
regulated substances. EPA interprets the phrase ``where appropriate''
in subsection (h)(1) to provide it discretion to reasonably determine
how the regulations under subsection (h)(1) will apply, including by
making determinations about the charge size threshold of equipment that
would be subject to the leak repair requirements. Consistent with its
statutory authority, EPA is proposing to use a lower threshold than the
50-pound threshold for ODS-containing appliances under 40 CFR 82.157
for the leak repair requirements to further serve these purposes.
By proposing that the applicable charge size for appliances with a
refrigerant that contains an HFC or a substitute for an HFC with a GWP
greater than 53 to be 15 pounds or more of refrigerant, with certain
exemptions, the universe of affected appliances covered by the leak
repair requirements under subsection (h) would be expanded as compared
to the universe of appliances containing ODS refrigerants and subject
to the leak repair requirements provisions at 40 CFR 82.157. For
example, an applicable charge size of 15 pounds or more of a
refrigerant that contains an HFC or substitute refrigerant with a GWP
above 53 is expected to cover certain appliances in the following
subsectors which are typically below the 50-pound threshold under 40
CFR 82.157 and thus not subject to those provisions:
<bullet> Train air conditioning;
<bullet> Passenger buses (e.g., school, coach, transit, and trolley
buses); \54\
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\54\ ``Bus'' is defined at 40 CFR 1037.801 and means ``a heavy-
duty vehicle designed to carry more than 15 passengers. Buses may
include coach buses, school buses, and urban transit buses.''
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<bullet> Refrigerated transport--rail;
<bullet> Large retail food remote condensing units (e.g., cold
rooms in supermarkets); and
<bullet> Large commercial unitary air conditioning (e.g., a system
for a mid-sized office building).
EPA is proposing a 15-pound or more refrigerant charge size for
appliances subject to the subsection (h) leak repair requirements based
in part on consideration of an analysis of equipment in applications
where HFCs or their substitutes are currently being used as a
refrigerant and where they are expected to be used in the coming years.
EPA conducted an analysis using the Vintaging Model to estimate stocks
of refrigerants used in equipment of varying charge sizes. The
Vintaging Model tracks the transition from ODS to substitutes including
HFCs by modeling the total pieces of equipment and average charge
sizes--which could vary over time based on vintage and the ODS or
substitute used--from five sectors to over 60 subsectors. Doing so
allows us to bin the pieces of equipment and total refrigerant in
equipment by charge size. A current snapshot of the model's estimates
of the installed stock of refrigerants that are HFCs and their
substitutes (excluding ODS refrigerants) in 2025 shows that
approximately 39 percent of refrigerants (on a weighted CO<INF>2</INF>e
basis) are used in appliances with a charge size above 50 pounds. An
additional 22 percent of installed stock are within appliances
containing between 15 and 50 pounds of refrigerant. In evaluating
potential sources where leak repair could be efficacious at reducing
releases of refrigerant from equipment and changes

[[Page 72238]]

in the RACHP market and aftermarket over the past few decades, EPA
finds it appropriate to propose a threshold of 15 pounds as the
applicable charge size of appliances that would need to comply with
leak repair requirements. As a general matter, EPA is proposing 15
pounds as the appropriate charge size threshold because at less than 15
pounds these appliances are significantly more likely to be
hermetically sealed and thus less prone to leak, and because appliances
with less than 15 pounds are also more likely to be replaced rather
than repaired.
EPA assessed other refrigerant charge sizes for appliances to cover
in the proposed leak provisions. EPA is considering higher alternative
thresholds for charge sizes such as 30 pounds and 50 pounds, as well as
lower alternative thresholds, such as 5 pounds. For information on the
estimated costs and emissions reductions of the various charge size
thresholds, please refer to Appendix F of the draft TSD titled Analysis
of the Economic Impact and Benefits of the Proposed Rule in the docket
for this action. As a general matter, EPA considered the statutory
purposes in subsection (h)(1) to maximize the reclaiming and minimize
the releases of regulated substances from equipment when setting the
threshold for appliances covered for the leak repair requirements.
These purposes guided EPA's considerations in exploring different
charge sizes; however, subsection (h)(1) states for EPA to consider
promulgating regulations ``as appropriate'' to meet these purposes. EPA
notes that refrigerant-containing appliances with small charge sizes
(below 15 pounds) may be hermetically sealed and less prone to leaks.
Further, in many cases, these smaller appliances (e.g., residential
appliances like window air conditioning units) are likely to be
disposed of and replaced rather than repaired when they are found to be
malfunctioning. On the other hand, EPA described earlier in this
section the rationale for proposing the lower charge size threshold of
15 pounds as compared to a higher charge size (e.g., 30 or 50 pounds).
For example, EPA notes that with technological advances in some
refrigerant-containing appliances, similar cooling capacity can be
achieved with smaller relative charge sizes. We are proposing a charge
size threshold of 15 pounds of refrigerant for covered appliances in
this action.
EPA is proposing to exempt from the leak repair requirements under
subsection (h) any refrigerant-containing appliance, including those
with a charge-size at or above 15 pounds, used for the residential and
light commercial air conditioning and heat pumps subsector.\55\ The
vast majority of appliances in the residential and light air
conditioning subsector typically have a charge size of less than 15
pounds; however, EPA is proposing exemptions in the case that an
appliance is used within this subsector with a charge size of 15 pounds
or more. These appliances are used in residences (but this subsector
does not include larger centrally-cooled apartment/condominium
buildings--where a chiller is likely used), and small retail and office
buildings. Since the majority of appliances in this subsector have a
refrigerant charge below the proposed 15-pound cutoff for leak repair
requirements, enforcement of those that are above a charge size of 15
pounds may be challenging or burdensome. It may not be immediately
obvious if a particular refrigerant-containing appliance has a charge
size of 15 pounds or greater without examining it more closely.
Further, the universe of affected appliances could grow unevenly if
appliances in this subsector were included, which could cause
compliance by owners and operators or servicing technicians to become
cumbersome. EPA's proposal to exempt appliances in this subsector from
the leak repair requirements would be administratively more efficient
and less burdensome for those that would be required to comply.
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\55\ The residential and light commercial air conditioning
subsector includes equipment for cooling air in individual rooms,
single-family homes, and small commercial buildings, including both
self-contained and split systems. Self-contained systems include
some rooftop AC units (e.g., those ducted to supply conditioned air
to multiple spaces) and many types of room ACs, including packaged
terminal air conditioners (PTACs), some rooftop AC units, window AC
units, portable room AC units, and wall-mounted self-contained ACs,
designed for use in a single room. Split systems include ducted and
non-ducted mini-splits (which might also be designed for use in a
single room), multi-splits and variable refrigerant flow (VRF)
systems, and ducted unitary splits. For additional information on
the types of equipment, see EPA's website at <a href="https://www.epa.gov/snap/substitutes-residential-and-light-commercial-air-conditioning-and-heat-pumps">https://www.epa.gov/snap/substitutes-residential-and-light-commercial-air-conditioning-and-heat-pumps</a>. EPA is not proposing to codify a regulatory
definition for residential and light commercial air conditioning and
heat pumps subsector consistent with the foregoing description, but
EPA requests comment on whether such a regulatory definition would
be beneficial in resolving any perceived ambiguities.
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The Agency is proposing to require leak repair provisions for new
and existing passenger buses,\56\ including school, coach, transit, and
trolley buses with charge-sizes at or above 15 pounds. The HD category
\57\ incorporates all motor vehicles with a gross vehicle weight rating
of 8,500 pounds or greater. Air conditioning systems used to cool
passenger compartments in these buses mainly use HFC-134a or R-
407C,\58\ and are typically manufactured as a separate unit that is
pre-charged with refrigerant and installed onto the vehicle in a
separate enclosure (e.g., roof mounted). The refrigerant charge for
these systems is also much larger than those for other MVAC systems,
typically ranging from 15 to 30 pounds. On the other hand, MVAC systems
used to cool passenger compartments in light-duty, medium-duty, HD on-
road and nonroad (off-road) vehicles are typically charged during
vehicle manufacture and the main components are connected by flexible
refrigerant lines. MVAC systems in these vehicles typically have charge
sizes ranging from one to eight pounds depending on the manufacturer
and cab size.59 60 EPA requests comments on the proposed
extension of the leak repair provisions to passenger buses. The Agency
is particularly interested in information, such as any technical
challenges, maintenance concerns, or other issues EPA should consider
regarding the repair of buses.
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\56\ ``Bus'' is defined at 40 CFR 1037.801 and means ``a heavy-
duty vehicle designed to carry more than 15 passengers. Buses may
include coach buses, school buses, and urban transit buses.''
\57\ Defined at 40 CFR 86.1803-01.
\58\ Chemours, Freon \TM\ Refrigerant for Bus and Rail Air
Conditioning; available at: <a href="https://www.freon.com/en/industries/stationary-ac-heat-pumps/public-transport-ac">https://www.freon.com/en/industries/stationary-ac-heat-pumps/public-transport-ac</a>.
\59\ ICF, 2016. Technical Support Document for Acceptability
Listing of HFO-1234yf for Motor Vehicle Air Conditioning in Limited
Heavy-Duty Applications. Available at: <a href="https://www.regulations.gov/document/EPA-HQ-OAR-2015-0663-0007">https://www.regulations.gov/document/EPA-HQ-OAR-2015-0663-0007</a>.
\60\ EPA, 2021. Basic Information about the Emission Standards
Reference Guide for On-road and Nonroad Vehicles and Engines.
Available at <a href="https://www.epa.gov/emission-standards-reference-guide/basic-information-about-emission-standards-reference-guide-road">https://www.epa.gov/emission-standards-reference-guide/basic-information-about-emission-standards-reference-guide-road</a>.
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EPA is proposing to stagger the proposed compliance dates.
Appliances containing 50 pounds or more of a refrigerant containing an
HFC or a substitute for an HFC with a GWP above 53 would be required to
comply with the provisions on the effective date for the final rule.
Because these proposed requirements are similar to those that have been
in place for ODS-containing appliances at or above a full charge size
of 50 pounds for some time, EPA is proposing to conclude that this is
sufficient time for regulated entities to come into compliance.
Further, prior to the rescission in 2020 (85 FR 14150, March 11, 2020),
the final rulemaking under CAA section 608 in 2016 (81 FR 82272,
November 18, 2016) applied leak repair provisions for HFC-containing
appliances with a charge size of 50 pounds or greater. The 2016 CAA

[[Page 72239]]

section 608 Rule became effective on January 1, 2017, and the relevant
leak repair requirements for HFCs and other ODS substitutes (now
rescinded) applied as of January 1, 2019 (81 FR 82272, 82356, November
18, 2016). The 2020 CAA section 608 Rule took effect on April 10, 2020
(85 FR 14150, March 11, 2020). Thus, for over three years industry was
aware of these requirements and affected entities should have been
complying for more than one year before the requirements in the 2016
CAA section 608 Rule were rescinded. While entities that were no longer
subject to the leak repair requirements after rescission may have
chosen to no longer comply with those requirements after the rescission
took effect, those entities that were subject to the regulatory
requirements per the 2016 CAA section 608 Rule prior to rescission
would, at a minimum, be familiar with these requirements.
For appliances with a full charge that is less than 50 pounds of
refrigerant, the Agency did not previously require leak repair and thus
we are proposing additional time. EPA is proposing one year after the
publication date of the final rule for appliances with a charge size
between 15 to 50 pounds of a refrigerant containing an HFC or a
substitute for an HFC with a GWP above 53 to allow the affected
regulated community time to familiarize themselves with the
requirements and make preparations to comply with them. For example, it
is expected that owners and operators of affected appliances with
between 15 and 50 pounds of a refrigerant containing an HFC or a
substitute for an HFC with a GWP above 53 may need time to learn about
the updated requirements; determine full charges of their appliances;
and update systems, standard operating procedures, and training
materials to best implement the requirements. Appliances with a full
charge of between 15 and 50 pounds of a refrigerant containing an HFC
or a substitute for an HFC with a GWP above 53 that are not exempted
would be expected to comply as of one year after the date of
publication for the final rule in the Federal Register. EPA understands
that some appliance owners or operators with equipment with a charge
size between 15 and 50 pounds of a refrigerant containing an HFC or a
substitute for an HFC may have already been repairing leaks.
Refrigerant-containing appliance owners or operators may choose to
repair leaks when not required, for example as a way to avoid costs
associated with continually adding refrigerant to systems or to avoid
any disruption in normal operations. However, given there was no leak
repair requirement for this equipment, EPA is unaware whether this is
true in all or even the majority of cases. Further, where unrequired
leak repair may have been occurring, it is not clear whether the
repairs were sufficient to ensure equipment was leaking below the
applicable leak rates (as established under 40 CFR 82.157) or whether
the repairs were verified and records of the repair event were kept.
Accordingly, these owners and operators may also need time to
understand the proposed requirements and develop practices and
processes for compliance.
EPA is seeking comment on all aspects of this proposal. In
particular, the Agency is seeking comment on the proposed charge size
cutoff of 15 pounds of refrigerant for equipment that contain HFCs or
certain substitutes for HFCs. As noted previously, EPA is also
considering using different charge sizes as a threshold for the
proposed leak repair requirements for applicable refrigerant-containing
appliances, including those that are lower (e.g., 5 pounds) or higher
(e.g., 30 pounds). While EPA is proposing 15 pounds as the charge size
cutoff for the leak repair provisions, EPA continues to consider the
option of using a different charge size cutoff, such as 5 pounds, 30
pounds, or 50 pounds, and seeks comment on these considerations.
Further, EPA also seeks comment on its proposal to exempt refrigerant-
containing appliances in the residential and light commercial air
conditioning and heat pumps subsector from the leak repair
requirements. Specifically, EPA is seeking whether the scope of this
exemption is appropriate and if EPA should consider exempting
refrigerant-containing appliances in other subsectors from the proposed
leak repair requirements. While EPA is proposing that refrigerant-
containing appliances with a full charge between 15 and 50 pounds
subject to the leak repair requirements under 40 CFR part 84 would have
a compliance date of one year after the date of publication for the
final rule in the Federal Register, the Agency is considering
alternative compliance dates including January 1, 2025, or 18 months
from the date of publication of the final rule. EPA is seeking comment
on the proposed compliance dates for the proposed leak repair
requirements, and in particular, allowing additional time for
appliances with a refrigerant charge size of between 15 and 50 pounds.
In particular, EPA seeks information about activities (besides rule
familiarization and applicability determinations) that owners or
operators of refrigerant-containing appliances with a refrigerant
charge size of between 15 and 50 pounds perceive that they would need
to engage in prior to the effective date of the rule, the length of
time the commenter estimates the activity would take, and any available
information that would substantiate that estimate. For example, EPA
seeks comment on whether they would need to modify or initiate a
contractual relationship with a servicing technician firm, the length
of time that would take, and information to substantiate that estimate
if available.
3. What leak repair provisions is EPA proposing?
EPA is proposing leak repair requirements under subsection (h) to
achieve the purposes of minimizing releases and maximizing the
reclamation of regulated substances by controlling practices,
processes, and activities related to the servicing, repair, or disposal
of equipment that contains regulated substances and/or their
substitutes (whether the regulated substance or the substitute is used
neat or in blends). These requirements are being proposed as part of
implementing subsection (h)(1) of the AIM Act, as these provisions
would control practices, processes, or activities regarding servicing
or repair of appliances, which are a type of equipment, and would
involve a regulated substance or a substitute for a regulated
substance.
As described in section IV.C.2.a. and b., these leak repair
requirements would apply to refrigerant-containing appliances with a
charge size of 15 pounds or more where the refrigerant contains an HFC
or a substitute for an HFC with a GWP greater than 53. As noted in
section II.B., subsection (h)(3) provides that EPA may coordinate
regulations under this authority with other regulations promulgated by
the Agency that involve: ``the same or a similar practice, process, or
activity regarding the servicing, repair, disposal, or installation of
equipment; or . . . reclaiming.''
EPA reviewed the regulations promulgated under CAA section 608
addressing the same or similar practice, processes or activities as
addressed in this proposal to consider the extent appropriate to
coordinate requirements in those regulations with those proposed in
this action. Specifically, EPA reviewed the leak repair requirements at
40 CFR 82.157, which do not apply to appliances containing HFCs or
their substitutes. The leak repair provisions under CAA section

[[Page 72240]]

608 contain requirements for practices, processes, and activities
related to identifying and repairing leaks in appliances that contain
ODS. These practices, processes, and activities are applicable to
appliances containing HFCs as, in many cases, the same types of
appliances (e.g., chillers, rooftop air conditioning units, supermarket
systems, etc.) are used since HFCs are a substitute for ODS. EPA is not
proposing new requirements in this action where the provisions in 40
CFR part 82, subpart F already apply to appliances containing HFCs and
certain substitutes. EPA notes that there are existing recordkeeping
requirements 40 CFR 82.156(a)(3) for technicians evacuating refrigerant
from appliances with a full charge of more than 5 and less than 50
pounds of refrigerant for purposes of disposal of that appliance. EPA
is not reopening any of the provisions in 40 CFR part 82 in this
action, and thus, the Agency is not proposing any changes to the
referenced recordkeeping requirements. Further, the Agency does not
view these recordkeeping requirements as being in conflict with the
proposed leak repair requirements nor does the Agency view them as
redundant. EPA notes that the bulk of the appliances covered by the
recordkeeping requirements at 40 CFR 82.156(a)(3) are residential air
conditioning appliances, which would be exempt from the proposed leak
repair provisions in this proposed action. These records are used to
assess technicians' compliance with the disposal requirements for 5 to
50 pound appliances under 40 CFR part 82 subpart F and are not related
to the owner/operator's compliance with the leak repair requirements.
As described in greater detail in the following sections, the
proposed leak repair provisions would require action if an appliance
has been found to be leaking above the applicable leak rate threshold.
The proposed leak repair provisions would generally not necessitate any
specific action for appliances that are not leaking above the
applicable leak-rate threshold, although the leak rate calculations and
certain recordkeeping requirements would apply to appliances that are
not leaking above the threshold. While EPA is proposing to adopt the
same applicable leak rates for the leak repair requirements under
subsection (h) as applies under 40 CFR 82.157, as described in section
IV.C.3.b. of this preamble, EPA is proposing requirements for
identifying and potentially repairing leaks sooner (see section IV.C.4.
of this preamble for proposed requirements for ALD systems).
a. Leak Rate Calculations
EPA is proposing to adopt requirements for leak rate calculations
as part of the proposed leak repair requirements under subsection (h).
Under these proposed requirements, refrigerant-containing appliances
with a charge size of 15 pounds or more of a refrigerant that contains
an HFC or a substitute for and HFC with a GWP above 53 would require a
leak rate calculation, if the appliance is found to be leaking.
Accordingly, under subsection (h), EPA is proposing to require that the
leak rate of covered appliances be calculated every time refrigerant is
added to an appliance, unless the addition is made immediately
following a retrofit, installation of a new appliance, or qualifies as
a seasonal variance, as described in this and subsequent sections.
In this action, EPA is not proposing to require the repair of all
leaks, but rather to require repair of leaks such that the appliance is
below the applicable leak rate threshold. Thus, calculation of the leak
rate is necessary to determine where further action (i.e., repair) is
required, since owners or operators may not be able to determine
compliance without calculating the leak rate each time refrigerant is
added to the appliance. For example, if an appliance owner adds
refrigerant to the appliance but does not calculate the leak rate, the
owner would have no means of determining if the appliance's leak rate
was below the applicable leak rate threshold. Hence, the owner would
not know if further action was warranted. The leak rate calculation is
an important step for owners and operators to determine if a leak must
be repaired and to the applicable leak rate threshold to which it would
need to be repaired (as discussed in section IV.C.3.b). EPA considers
that the leak rate calculation provisions under 40 CFR 82.157(b) are
appropriate for the refrigerant-containing appliances proposed in this
action and is proposing to establish analogous requirements for
equipment covered under the subsection (h) leak repair provisions.
EPA is proposing two methods for calculating the leak rate for an
applicable appliance under subsection (h) in this action: the
annualizing method and the rolling average method. These leak rate
calculation methods are described in section IV.A.1. This approach of
providing two different methods for calculating the leak rate, as well
as the specific leak rate calculation methods proposed, are the same as
those described and provided in 40 CFR part 82, subpart F. EPA is
proposing that these two methods could be used similarly to how they
can be used under subpart F. Based on EPA's experience under subpart F,
there are advantages in the flexibility provided by having two
different methods. The strength of the annualizing method is that it is
future oriented and allows the owner or operator to ``close out'' each
leak event so long as the requirements are followed and does not lump
past leak events with the current leak event. It considers the amount
of time since the last refrigerant addition and then scales that up to
provide a leak rate that projects the amount of refrigerant lost over a
whole year if the leak is not fixed. As a result, this formula will
yield a higher leak rate for smaller leaks if the amount of time since
the last repair was shorter. This approach can contribute to minimizing
the releases of HFCs or their substitutes by requiring more thorough
leak inspections and verified repairs sooner. The rolling average
method also has its strengths. It accounts for all refrigerant
additions over the past 365 days or since the last successful follow-up
verification test showing that all identified leaks were successfully
repaired (if less than 365 days). If an owner or operator verifies all
identified leaks are repaired, this method would also allow an owner or
operator to ``close out'' a leak event. If there is no follow-up
verification test showing that all identified leaks were successfully
repaired within the last year, the leak rate would be based completely
on actual leaks in the past year. This retrospective approach measures
actual performance and if leaks are identified and fixed quickly, an
appliance may never reach the applicable leak rate, thus limiting and
minimizing the releases of HFCs or their substitutes from leaks.
In the 2016 CAA section 608 Rule (81 FR 82272, November 18, 2016),
EPA finalized that the same leak rate calculation must be used for all
appliances at the same facility for appliances subject to the CAA leak
repair provisions. EPA is proposing to similarly require that the same
method of leak rate calculation be used for all refrigerant-containing
appliances at the same facility for appliances subject to the proposed
leak repair provisions in this action. This aspect of the proposal
helps ensure that the requirements are followed consistently at a
facility. As noted above, having the option to choose between one of
two methodologies to calculate the leak rate

[[Page 72241]]

provides flexibility to the owners and operators of affected
refrigerant-containing appliances. However, once a method is chosen, it
is necessary for the owner or operator to continue using the same
methodologies so leak rates are consistently calculated for the
appliances. The two methods use two different paradigms to determine
leak rate--one is forward-looking/predictive, while the other is
looking back/retrospective. If an owner or operator were to switch
between methods, they would not get an accurate calculation (because
the time frame being evaluated would be different in each method).
In either methodology of calculating the leak rate, EPA is
proposing that when calculating the leak rate, any purged refrigerant
that is destroyed would not be counted towards the leak rate. To
qualify for this exemption, the purged refrigerant would be required to
be destroyed at a verifiable destruction efficiency of 98 percent or
greater.
EPA is seeking comment on all aspects of its proposal related to
leak rate calculations under subsection (h). EPA is particularly
requesting comment on if there are any alternative leak rate
calculations that could be conducted to identify whether a system is
leaking above the applicable trigger leak rate. EPA is also requesting
comment on calculating the amount of refrigerant lost, without having
to add refrigerant, as a means of calculating the leak rate. For
example, an owner or operator could evacuate all of the refrigerant
from an appliance, weigh it, and compare it to the full charge of the
appliance. Alternatively, EPA is aware that certain types of ALD

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